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:	12/31/13

ITEM 1. REPORTS TO STOCKHOLDERS.

Lazard Funds Annual Report

December 31, 2013

Real Asset Funds

Lazard US Realty Income Portfolio

Lazard US Realty Equity Portfolio

Lazard Global Realty Equity Portfolio

Lazard Global Listed Infrastructure Portfolio

   The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
7	Performance Overviews
11	Information About Your Portfolio’s Expenses
13	Portfolio Holdings Presented by Sector
14	Portfolios of Investments
14	Lazard US Realty Income Portfolio
15	Lazard US Realty Equity Portfolio
16	Lazard Global Realty Equity Portfolio
18	Lazard Global Listed Infrastructure Portfolio
20	Notes to Portfolios of Investments
22	Statements of Assets and Liabilities
24	Statements of Operations
26	Statements of Changes in Net Assets
28	Financial Highlights
32	Notes to Financial Statements
41	Report of Independent Registered Public Accounting Firm
42	Board of Directors and Officers Information
44	Tax and Other Information

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

The year 2013 was one of many contrasts. Some records were set, with US equities reaching new highs, while US bond returns were negative for the first time in more than a decade. Equities globally made good headway, led by a surge in developed-market stocks, which significantly outpaced their emerging-market counterparts during the year. Markets in the United States, Japan, and Europe did well, with returns in the low double digits fueled by accommodative central bank policy and signs of healing in their respective economies.

Bond markets were subdued in comparison to a strong 2012, amid expectations of higher long-term interest rates. Meanwhile, emerging markets equity and debt weakened over concerns about widening current account deficits in the developing world. From a global perspective, corporate profitability and balance sheets remain strong and we anticipate that the operating back-drop for companies will continue to improve.

We are also pleased to inform you of a change to the format of the Lazard Funds’ annual and semiannual reports. Beginning this year-end, we will be reporting on the Lazard Funds through a set of five reports grouped by asset class. This allows us to increase ease of access to fund information for our shareholders and reduce production costs.

As always, at Lazard Asset Management, we remain focused on active management and 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 investment 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

Real Estate Securities

Global property stocks, represented by the FTSE

EPRA/NAREIT Global^® Index, returned 1.57% during 2013, and underperformed global equities (as represented by the Morgan Stanley Capital International (MSCI^®) All Country World^® Index) by approximately 21 percentage points. The year was also marked by meaningful performance differences among regions due to varying outlooks for economic growth, interest rates, and real estate fundamentals. With only a handful of regional exceptions, positive real estate and operating fundamentals were largely countered by investor concerns over rising interest rates and macroeconomic risks. Among major countries representing at least 3% of the FTSE EPRA/NAREIT Global Index, property companies in Japan and in the United Kingdom were leading performers. Using the same size criteria, property companies in Brazil, Australia, and Canada were the worst relative performers.

Amid a global backdrop of improving economic growth, moderately rising interest rates, capital markets volatility, and region-specific geopolitical risk, we are selectively positive on global real estate equities in 2014.

On a country basis, we remain most positive and overweight in the United States. The silver lining of the volatility experienced (in the United States) in 2013 presents a scenario of attractive company valuations supported by healthy underlying real estate fundamentals and an improving economic outlook. While we expect limited new supply and modestly rising interest rates, we expect continually improving user demand to drive rental, earnings, and dividend growth well ahead of the rate of inflation. We also favor Japan as we believe the benefits of Abenomics will translate into increased real estate valuations and bountiful liquidity in the region.

Due to supply constraints and compelling valuations, we are overweight in Hong Kong; however we remain wary of the potential risks arising from weaker developer pricing power, a slowdown in China, and the impact of the tapering of bond purchases by the US Federal Reserve (the Fed). We are modestly overweight in China due to attractive valuations; however, our exposure is highly concentrated in select developers with stronger growth prospects.

While both Australia and Canada benefit from strong real estate fundamentals and stable economies, we are modestly underweight both regions due to premium valuations rela-

tive to historical levels. In Europe we are modestly overweight the United Kingdom and expect nearly insatiable investor demand for premium assets to continue to drive outperformance in the region. Although we are modestly underweight continental Europe we will continue to make select investments in preferred regions which we believe will experience improving valuations.

Our view of emerging markets is mixed. We remain overweight in Mexico, which is a preferred region for us due to the manufacturing and energy renaissance that is being effectuated in the region under the current Peña Nieto administration. Due to attractive valuations and a positive long-term outlook we maintain a modest overweight in Brazil; however, we are concerned about the near-term macroeconomic and geopolitical risks. We have reduced our exposure to southeast Asia property and expect to remain underweight the region due to the clear divergence in future growth prospects, heightened fiscal and monetary risks, currency weakness, and political uncertainty.

Global Listed Infrastructure

Against a backdrop of low interest rates and subsiding global risks, equity markets got off to a bullish start to the year, but declined in the second quarter after Fed Chairman Ben Bernanke suggested that the central bank may start to scale back on its bond purchases. Monetary policy also played a decisive role in the first half of the year in Japan with the Bank of Japan announcing a large-scale asset purchase program. In Europe, Mario Draghi’s July 2012 pledge to do “whatever it takes” continued to support confidence, and GDP growth has broadly stabilized, with most forecasting modest growth in the region in 2014. In the United States, the recovery was initially driven by housing, and has since broadened, with the unemployment rate falling 0.9% over the year to 7% in November. In December, global investors ultimately cheered the Fed’s announcement that it would reduce its monthly bond purchases by $10 billion, as the decision underscored Fed officials’ belief that the country’s economic recovery was sustainable.

Lazard US Realty Income Portfolio

For the year ended December 31, 2013, the Lazard US Realty Income Portfolio’s Institutional Shares posted a total return of 2.37%, while Open Shares posted a total return of 1.99%, as compared with the -1.26% blended index return of the 50% FTSE NAREIT All Equity REITs^® Index/50%

Annual Report 3

Wells Fargo Hybrid and Preferred Securities REIT^® Index (the “Hybrid Index”).

Relative to the benchmark on a pre-fee basis, the Portfolio primarily benefited from stock selection. It also benefited from an outsized allocation to real estate investment trust (REIT) common stocks relative to the benchmark. During 2013, the Portfolio was, on average, invested 64% in common stocks, 32% in preferred stocks, and the remainder in cash and bond positions. Both the Portfolio’s common stock and preferred stock holdings outperformed their respective indices.

In terms of relative performance, the Portfolio was helped by an overweight position to CommonWealth REIT, an office REIT, which surged from a discounted valuation when activist shareholders were able to effect favorable corporate governance changes. Also helping the Portfolio was an overweight position to Starwood Property Trust, a finance REIT, which outperformed on a large and unexpected acquisition; and an overweight position to Sun Communities, a manufactured housing REIT, which posted strong operating results and improved the quality of its investor disclosures. CommonWealth REIT and Starwood Property Trust were sold during the year as our price targets were met.

An overweight position to Campus Crest Communities, a student housing REIT, hurt performance as it underperformed on the back of a poorly received acquisition and concerns over its internal growth potential. Other detractors from relative performance included an overweight position to Digital Realty Trust, a data center REIT, which was negatively impacted by poorly communicated accounting changes and a modestly disappointing earnings guidance; and an overweight position to Series A preferred shares in General Growth Properties, which underperformed the preferred market as investors took advantage of the shares’ above-average liquidity to fund redemptions.

Lazard US Realty Equity Portfolio

For the year ended December 31, 2013, the Lazard US Realty Equity Portfolio’s Institutional Shares posted a total return of 1.77%, while Open Shares posted a total return of 1.58%, as compared with the 2.86% return of the FTSE NAREIT All Equity REITs Index.

In terms of relative performance, the Portfolio benefited from an overweight position in Weyerhaeuser, primarily a

timber company, which benefited from the successful spin-out of its homebuilding operation and from increases in lumber and other pulp prices. Also helping the Portfolio was an overweight position to Pebblebrook Hotel Trust, which benefited from strong hotel fundamentals during the year and well-priced acquisitions in gateway markets; and an overweight position to Realogy Holdings, a real estate broker, which benefited from better-than-expected margins and healthy transaction volumes.

An overweight to Digital Realty Trust, a data center REIT, hurt performance as the company was negatively impacted by poorly communicated accounting changes and a modestly disappointing earnings guidance. Other detractors from performance included an overweight position to American Campus Communities, a student housing REIT, which fell short of its leasing goals raising concerns over the company’s internal growth potential; and not owning Host Hotels, the largest hotel REIT, which outperformed the overall REIT sector on the strength of healthier national lodging fundamentals.

Lazard Global Realty Equity Portfolio¹

For the year ended December 31, 2013, the Lazard Global Realty Equity Portfolio’s Institutional Shares posted a total return of 0.89%, while Open Shares posted a total return of 0.60%, as compared with the 0.87% return of the FTSE EPRA/NAREIT Global ex-US/FTSE EPRA/NAREIT Global Linked Index (the “Global Realty Linked Index”).²

In terms of relative performance, the Portfolio benefited from overweight positions to Japanese developers, Mitsui Fudosan and Sumitomo Realty & Development, which experienced appreciation on the back of cap rate compression and the influx of additional liquidity into the Japanese economy. Also helping the Portfolio was an overweight position to SEGRO, a UK industrial company, which outperformed as the company formed a large joint venture and also improved its operating fundamentals; and an overweight position to Countrywide, a UK real estate broker, which benefited from strategic acquisitions and healthy transaction volume. This position was sold during the year as it reached our price target.

An overweight position to Brazil hurt performance. In Brazil, all publicly listed real estate companies suffered heavily due to a combination of tepid GDP growth, growing inflation, and higher interest rates. Other detractors from relative per-

4 Annual Report

formance included an overweight position to Longfor Properties, a Chinese developer, which experienced a slowdown in growth and margin contraction amid a weaker macroeconomic environment; and an overweight position to Asian Property, a Thailand-based developer, which lowered its profit outlook due to a decline in gross margins on its developments. This position was sold during the year as it reached our price target.

Lazard Global Listed Infrastructure Portfolio

For the year ended December 31, 2013, the Lazard Global Listed Infrastructure Portfolio’s Institutional Shares posted a total return of 26.56%, while Open Shares posted a total return of 26.24%, as compared with the 19.94% return for the UBS Global 50/50 Infrastructure & Utilities^® Index (Hedged) and 26.68% return for the MSCI World^® Index.

Among the biggest contributors to performance for the year were the German airport operator, Fraport, and the French airport company, Aeroports de Paris. Fraport performed strongly, particularly over the second half of the year due to a strong uplift in traffic at Frankfurt airport. The German airline, Lufthansa, also announced an ambitious passenger growth plan of 4% for 2014, which was not expected by the market. Traffic at Fraport’s other airports in Antalya, Turkey and Lima, Peru continues to grow strongly. Fraport remains a core holding in the Portfolio, with its share price at a large discount to fair value since we believe the market does not recognize the “free growth” it will receive from its recently built fourth runway at Frankfurt.

Aeroports de Paris performed strongly over 2013 due to the strong recovery in passenger traffic. We have been pleased with the stewardship of both Fraport and Aeroports de Paris, which both offered bids for the new Istanbul airport; however the bids were unsuccessful. An important risk with any company is that it undertakes a significant purchase and pays an unreasonable amount for it. The fact that these two companies’ bids were too low is a positive sign of their investment discipline. Another example of such discipline was apparent with Fraport when it announced the deferral of the construction of the third terminal building at Frankfurt airport.

Osaka Gas performed strongly, with most of the positive performance occurring early in 2013. While Osaka Gas was boosted by the rallying Japanese equity market, the company increased its annual dividend significantly, reflecting

the business’s strong underlying fundamentals. Osaka Gas also restated its financial results in order to highlight its strong and stable underlying profits, which are otherwise regularly obscured by the timing of its cash flows. In the short term, growth was helped by a weak yen, which, combined with the ongoing shift of the national energy mix toward gas, helped increase the demand for natural gas.

Both of the eastern US freight railroads in the Portfolio, Norfolk Southern and CSX, performed strongly on the back of strong freight data particularly in the last quarter of 2013. The strongest freight categories for both railroads were containerized goods and grain (due to the bumper crop), although most freight categories have posted strong growth. The weakest freight category for both railroads continues to be coal. For CSX, coal carloads have decreased meaningfully over the past two years due to structural reasons, mainly: (1) the coal-to-gas feedstock switching by electric generators (due to the domestic gas prices); and (2) ongoing low export coal prices. Norfolk Southern and CSX own assets with very high barriers to entry, pricing power over most of their customers, strong balance sheets, and a diverse mix of freight goods and customers. We believe both companies remain priced below their fair values.

After a relatively uneventful year, the share price of Macquarie Korea Infrastructure Fund (which owns toll road assets) dipped sharply in December due to market speculation that the Korean government may review the minimum return guarantee on some of its assets. We believe it is unlikely that the government would cancel the minimum return guarantee, and have used the share price weakness as a buying opportunity.

Over 2013, the Pennon Group share price fell. Two factors explain this fall. The primary cause, in our opinion, is the increased political and regulatory risks in the United Kingdom. Both the UK government and the opposition party have voiced concerns over profit levels of the country’s utility companies. At the same time, water regulator, Ofwat, kick started the last phase of the review process for the 2015–2020 period with a strong stance for meaningfully lowering allowed returns in order to match a sharp fall in the cost of capital of these companies. The second element is the continued operating pressure on the competitive parts of its Viridor waste management operation, with poor waste volumes and recyclate prices. These trends stabilized to-

Annual Report 5

ward the end of the year, and progress on the construction of large PFI (private finance initiative) backed waste infrastructure assets—such as the waste from energy plants—confirm our thesis that Viridor is being transformed into a more stable business. We took the opportunity of the share price fall to increase our position in Pennon Group.

The Portfolio is passively hedged back to the US dollar in an effort to minimize the impact of currency movements of a stock against the investor’s local currency.

Notes to Investment Overviews:

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

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

The views of the Investment Manager and the securities described in this report are as of December 31, 2013; 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 August 15, 2013, the Portfolio changed its name from “Lazard International Realty Equity Portfolio” to “Lazard Global Realty Equity Portfolio,” and adopted the Portfolio’s current investment strategies.
2	The Global Realty Linked Index is an index created by the Portfolio’s Investment Manager, which links the performance of the FTSE EPRA/NAREIT Global ex-US® Index for all periods through August 14, 2013 and the FTSE EPRA/NAREIT Global Index for all periods thereafter.

6 Annual Report

   The Lazard Funds, Inc. Performance Overviews

Lazard US Realty Income Portfolio

Comparison of Changes in Value of $10,000 Investment in the Open Shares of Lazard US Realty Income Portfolio, FTSE NAREIT All Equity REITs^® Index, Wells Fargo Hybrid and Preferred Securities REIT^® Index, Hybrid Index and S&P 500^® Index*

Average Annual Total Returns*

Periods Ended December 31, 2013

	Institutional Shares			Open Shares
	One	Since		One	Five	Since
	Year	Inception	†	Year	Years	Inception	†
US Realty Income Portfolio**	2.37%	15.46%		1.99%	23.40%	11.65%
FTSE NAREIT All Equity REITs Index	2.86%	15.92%		2.86%	16.90%	5.60%
Wells Fargo Hybrid and Preferred Securities REIT Index	–5.52%	4.11%		–5.52%	18.20%	11.51%
Hybrid Index	–1.26%	10.11%		–1.26%	18.03%	9.21%
S&P 500 Index	32.39%	26.69%		32.39%	17.94%	9.36%

*	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, State Street or Boston Financial Data Services, Inc., the Fund’s transfer and dividend disbursing agent (“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 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 US dollar-denominated preferred securities issued in the US domestic market. 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 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.

Annual Report 7

Lazard US Realty Equity Portfolio

Comparison of Changes in Value of $10,000 Investment in the Open Shares of Lazard US Realty Equity Portfolio and FTSE NAREIT All Equity REITs Index*  

Average Annual Total Returns*

Periods Ended December 31, 2013

	Institutional Shares			Open Shares
	One	Since		One	Five	Since
	Year	Inception	†	Year	Years	Inception	†
US Realty Equity Portfolio**	1.77%	19.10%		1.58%	23.82%	23.80%
FTSE NAREIT All Equity REITs Index	2.86%	15.92%		2.86%	16.90%	16.90%

*	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.

8 Annual Report

Lazard Global Realty Equity Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2013

	Institutional Shares			Open Shares
	One	Since		One	Five	Since
	Year	Inception	†	Year	Years	Inception	†
Global Realty Equity Portfolio**	0.89%	18.38%		0.60%	19.58%	19.57%
FTSE EPRA/NAREIT Global Index	1.57%	15.65%		1.57%	14.87%	14.87%
Global Realty Linked Index	0.87%	16.80%		0.87%	14.80%	14.80%
FTSE EPRA/NAREIT Global ex-US Index	2.12%	17.44%		2.12%	15.09%	15.09%

*	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 Portfolio was previously known as Lazard International Realty Equity Portfolio. As of August 15, 2013, the Portfolio changed its name to Lazard Global Realty Equity Portfolio and adopted its current investment strategies.
	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. Both the FTSE EPRA/NAREIT Global Index and the FTSE EPRA/NAREIT Global ex-US Index are free-float adjusted market capitalization indices that are designed to measure the performance of REITs in both developed and emerging markets. The FTSE EPRA/NAREIT Global ex-US Index excludes those REITs listed or incorporated in the United States. The Global Realty Linked Index is an index created by the Portfolio’s Investment Manager, which links the performance of the FTSE EPRA/NAREIT Global ex-US Index for all periods through August 14, 2013 and the FTSE EPRA/NAREIT Global Index for all periods thereafter. The indices are unmanaged, have no fees or costs and are not available for investment.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Institutional Shares was September 26, 2011 and for Open Shares was December 31, 2008.

Annual Report 9

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 (Hedged) and MSCI World^® Index*

Average Annual Total Returns*

Periods Ended December 31, 2013

	One	Since
	Year	Inception	†
Institutional Shares**	26.56%	11.90%
Open Shares**	26.24%	11.50%
UBS Global 50/50 Infrastructure & Utilities Index (Hedged)	19.94%	8.63%
MSCI World Index	26.68%	11.56%

*	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 (Hedged) 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.

10 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, 2013 through December 31, 2013 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 7/1/13		Ending Account Value 12/31/13		Expenses Paid During Period* 7/1/13 - 12/31/13		Annualized Expense Ratio During Period 7/1/13 - 12/31/13
US Realty Income
Institutional Shares
Actual	$	1,000.00	$	945.60	$	4.80		0.98	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.27	$	4.99		0.98	%
Open Shares
Actual	$	1,000.00	$	943.30	$	6.18		1.26	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.84	$	6.43		1.26	%
US Realty Equity
Institutional Shares
Actual	$	1,000.00	$	969.20	$	5.35		1.08	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.77	$	5.49		1.08	%
Open Shares
Actual	$	1,000.00	$	968.60	$	6.72		1.35	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.38	$	6.89		1.35	%

Annual Report 11

Portfolio	Beginning Account Value 7/1/13		Ending Account Value 12/31/13		Expenses Paid During Period* 7/1/13 - 12/31/13		Annualized Expense Ratio During Period 7/1/13 - 12/31/13
Global Realty Equity
Institutional Shares
Actual	$	1,000.00	$	1,037.70	$	6.02		1.17	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.29	$	5.97		1.17	%
Open Shares
Actual	$	1,000.00	$	1,035.90	$	7.63		1.49	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.71	$	7.56		1.49	%
Global Listed Infrastructure
Institutional Shares
Actual	$	1,000.00	$	1,121.10	$	5.46		1.02	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.05	$	5.20		1.02	%
Open Shares
Actual	$	1,000.00	$	1,119.30	$	7.06		1.32	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.54	$	6.72		1.32	%

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

12 Annual Report

   The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2013

Sector*	Lazard US Realty Income Portfolio			Lazard US Realty Equity Portfolio			Lazard Global Realty Equity Portfolio			Lazard Global Listed Infrastructure Portfolio
Consumer Discretionary		—			1.2	%		0.6	%		4.3	%
Financials		100.0	%		98.8			99.4			—
Industrials		—			—			—			50.2
Utilities		—			—			—			44.0
Short-Term Investments		—			—			—			1.5
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

Annual Report 13

   The Lazard Funds, Inc. Portfolios of Investments December 31, 2013

Description	Shares		Value
Lazard US Realty Income Portfolio
Common Stock | 3.5%
Real Estate | 3.5%
Colony Financial, Inc.
(Identified cost $4,120,375)		198,415	$	4,025,840
Preferred Stocks | 38.2%
Real Estate | 38.2%
Apollo Commercial Real Estate Finance, Inc., Series A, 8.625%		46,671		1,159,774
Ashford Hospitality Trust, Inc., Series D, 8.450%		61,782		1,551,964
CBL & Associates Properties, Inc., Series E, 6.625%		60,000		1,275,600
Cedar Realty Trust, Inc., Series B, 7.250%		72,918		1,677,114
Coresite Realty Corp., Series A, 7.250%		14,900		336,442
DDR Corp.:
Series K, 6.250%		66,000		1,378,080
Series J, 6.500%		47,900		1,044,220
EPR Properties, Series F, 6.625%		13,769		291,765
General Growth Properties, Inc., Series A, 6.375%		275,000		5,541,250
Glimcher Realty Trust, 6.875%		160,000		3,393,600
Kimco Realty Corp., Series J, 5.500%		69,900		1,359,555
Kite Realty Group Trust, Series A, 8.250%		27,287		688,997
LaSalle Hotel Properties, Series I, 6.375%		118,700		2,395,366
NorthStar Realty Finance Corp., Series A, 8.750%		72,886		1,752,908
Pebblebrook Hotel Trust, Series C, 6.500%		189,414		3,856,469
Pennsylvania Real Estate Investment Trust:
Series B, 7.375%		33,694		799,559
Series A, 8.250%		24,865		628,339
PS Business Parks, Inc., Series U, 5.750%		73,300		1,418,355

Description	Shares		Value
Regency Centers Corp., Series 7, 6.000%		16,342	$	322,754
Retail Properties of America, Inc., 7.000%		97,779		2,063,137
Sabra Healthcare REIT, Inc., Series A, 7.125%		87,400		2,071,380
Strategic Hotels & Resorts, Inc., Series C, 8.250%		120,178		2,851,824
Sun Communities, Inc., Series A, 7.125%		50,222		1,190,261
Taubman Centers, Inc., Series K, 6.250%		109,771		2,178,954
Vornado Realty Trust, Series K, 5.700%		102,064		2,016,785
Weingarten Realty Investors, Series F, 6.500%		14,052		317,997
Total Preferred Stocks
(Identified cost $50,230,491)				43,562,449
Real Estate Investment Trusts | 56.6%
Apollo Commercial Real Estate Finance, Inc.		137,250		2,230,313
Associated Estates Realty Corp.		161,600		2,593,680
BioMed Realty Trust, Inc.		344,230		6,237,448
Campus Crest Communities, Inc.		717,290		6,749,699
Digital Realty Trust, Inc.		137,900		6,773,648
Dynex Capital, Inc.		444,220		3,553,760
EPR Properties		48,850		2,401,466
Excel Trust, Inc.		186,000		2,118,540
First Potomac Realty Trust		308,026		3,582,342
HCP, Inc.		132,500		4,812,400
Mack-Cali Realty Corp.		258,400		5,550,432
Medical Properties Trust, Inc.		118,400		1,446,848
Realty Income Corp.		144,000		5,375,520
STAG Industrial, Inc.		274,500		5,597,055
Sun Communities, Inc.		129,357		5,515,782
Total Real Estate Investment Trusts
(Identified cost $73,948,272)				64,538,933
Total Investments | 98.3%
(Identified cost $128,299,138) (a)			$	112,127,222
Cash and Other Assets in Excess of Liabilities | 1.7%				1,928,186
Net Assets | 100.0%			$	114,055,408

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

14 Annual Report

Description	Shares		Value
Lazard US Realty Equity Portfolio
Common Stocks | 2.1%
Leisure & Entertainment | 1.1%
Starwood Hotels & Resorts Worldwide, Inc.		9,938	$	789,574
Real Estate | 1.0%
Realogy Holdings Corp. (b)		13,871		686,198
Total Common Stocks
(Identified cost $1,313,053)				1,475,772
Real Estate Investment Trusts | 96.4%
American Campus Communities, Inc.		72,046		2,320,602
American Homes 4 Rent, Class A		43,459		704,036
American Residential Properties, Inc.		88,688		1,521,886
American Tower Corp.		57,871		4,619,263
Apartment Investment & Management Co., Class A		91,741		2,377,009
AvalonBay Communities, Inc.		20,326		2,403,143
Boston Properties, Inc.		22,922		2,300,681
CBL & Associates Properties, Inc.		83,599		1,501,438
Cedar Realty Trust, Inc.		172,916		1,082,454
Chesapeake Lodging Trust		77,484		1,959,570
Digital Realty Trust, Inc.		63,454		3,116,861
Education Realty Trust, Inc.		118,025		1,040,981
Equity Residential		30,080		1,560,250
Essex Property Trust, Inc.		12,797		1,836,497
Extra Space Storage, Inc.		29,732		1,252,609
First Potomac Realty Trust		169,768		1,974,402
General Growth Properties, Inc.		68,982		1,384,469
HCP, Inc.		121,311		4,406,016
Health Care REIT, Inc.		5,963		319,438
Kilroy Realty Corp.		43,133		2,164,414
Mack-Cali Realty Corp.		54,228		1,164,817
Pebblebrook Hotel Trust		23,395		719,630
Prologis, Inc.		48,140		1,778,773

Description	Shares		Value
Public Storage		14,703	$	2,213,096
Retail Opportunity Investments Corp.		130,021		1,913,909
Simon Property Group, Inc.		49,346		7,508,487
SL Green Realty Corp.		9,285		857,748
STAG Industrial, Inc.		50,651		1,032,774
Sunstone Hotel Investors, Inc.		59,002		790,627
Taubman Centers, Inc.		25,634		1,638,525
Ventas, Inc.		45,481		2,605,152
Vornado Realty Trust		13,095		1,162,705
Weyerhaeuser Co.		93,949		2,965,970
Total Real Estate Investment Trusts
(Identified cost $69,323,109)				66,198,232
Total Investments | 98.5%
(Identified cost $70,517,881)				67,674,004

Description	Number of Contracts		Value
Purchased Options | 0.4%
iShares US Real Estate ETF:
March 14 63 Call, Expires 03/22/14		1,160	$	225,040
March 14 61 Put, Expires 03/22/14		370		35,150
Total Purchased Options
(Identified cost $289,785)				260,190
Total Investments and Purchased Options | 98.9%
(Identified cost $70,925,947) (a)			$	67,934,194
Cash and Other Assets in Excess of Liabilities | 1.1%				733,265
Net Assets | 100.0%			$	68,667,459

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

Annual Report 15

Description	Shares		Value
Lazard Global Realty Equity Portfolio
Common Stocks | 33.5%
Australia | 2.3%
Charter Hall Group		11,889	$	38,747
Goodman Group		32,439		137,004
				175,751
Brazil | 2.2%
Aliansce Shopping Centers SA		10,900		84,548
BR Properties SA		11,000		86,723
				171,271
China | 5.0%
China Overseas Land & Investment, Ltd.		66,800		187,798
Longfor Properties Co., Ltd.		101,500		141,890
Shimao Property Holdings, Ltd.		17,500		40,081
Shui On Land, Ltd.		54,500		16,727
				386,496
Hong Kong | 8.4%
Cheung Kong Holdings, Ltd.		14,000		221,168
Hang Lung Properties, Ltd.		17,000		53,931
Hongkong Land Holdings, Ltd.		15,000		88,500
The Wharf Holdings, Ltd.		36,825		281,139
				644,738
Japan | 12.3%
Mitsubishi Estate Co., Ltd.		6,000		179,185
Mitsui Fudosan Co., Ltd.		9,000		323,474
NTT Urban Development Corp.		17,000		195,167
Sumitomo Realty & Development Co., Ltd.		5,000		248,314
				946,140
Malaysia | 0.3%
UEM Sunrise Berhad		35,400		25,506
Norway | 0.4%
Norwegian Property ASA		25,153		30,149
Thailand | 0.3%
Land and Houses Public Co. Ltd.		82,577		22,491
United Kingdom | 1.1%
Capital & Counties Properties PLC		15,059		82,092

Description	Shares		Value
United States | 1.2%
Realogy Holdings Corp. (b)		878	$	43,435
Starwood Hotels & Resorts Worldwide, Inc.		571		45,366
				88,801
Total Common Stocks
(Identified cost $2,441,366)				2,573,435
Real Estate Investment Trusts | 64.2%
Australia | 2.4%
Charter Hall Retail REIT		15,333		49,150
Dexus Property Group		149,090		133,788
				182,938
Brazil | 0.6%
Cyrela Commercial Properties SA Empreendimentos e Participacoes		5,000		44,506
Canada | 2.3%
Allied Properties Real Estate Investment Trust		1,485		45,798
Boardwalk Real Estate Investment Trust		2,384		134,321
				180,119
France | 4.1%
Fonciere des Regions		1,123		96,943
Klepierre		3,040		140,875
Unibail-Rodamco SE		314		80,454
				318,272
Hong Kong | 1.0%
The Link REIT		16,019		77,881
Italy | 1.4%
Beni Stabili S.p.A.		160,470		108,172
Japan | 2.1%
Japan Logistics Fund, Inc.		5		52,939
Japan Real Estate Investment Corp.		14		74,979
Nippon Building Fund, Inc.		6		34,868
				162,786
Mexico | 1.6%
Fibra Uno Administracion SA de CV		15,600		50,313
TF Administradora Industrial S de RL de CV		38,700		69,655
				119,968
Singapore | 2.2%
CapitaMall Trust		50,000		75,478
Frasers Centrepoint Trust		67,925		94,733
				170,211

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

16 Annual Report

Description	Shares		Value
Lazard Global Realty Equity Portfolio (concluded)
United Kingdom | 4.6%
Big Yellow Group PLC		4,862	$	38,485
British Land Co. PLC		7,710		80,307
Derwent London PLC		2,240		92,547
Great Portland Estates PLC		7,942		78,778
SEGRO PLC		11,093		61,354
				351,471
United States | 41.9%
American Campus Communities, Inc.		3,822		123,107
American Homes 4 Rent, Class A		2,298		37,228
American Residential Properties, Inc.		4,746		81,441
American Tower Corp.		745		59,466
Apartment Investment & Management Co., Class A		4,854		125,767
AvalonBay Communities, Inc.		1,076		127,215
Boston Properties, Inc.		1,206		121,046
CBL & Associates Properties, Inc.		4,478		80,425
Cedar Realty Trust, Inc.		9,201		57,598
Chesapeake Lodging Trust		4,093		103,512
Digital Realty Trust, Inc.		3,381		166,075
Education Realty Trust, Inc.		6,208		54,754
Equity Residential		1,609		83,459
Essex Property Trust, Inc.		662		95,004
Extra Space Storage, Inc.		1,618		68,166
First Potomac Realty Trust		9,052		105,275
General Growth Properties, Inc.		3,621		72,673
HCP, Inc.		6,336		230,123
Health Care REIT, Inc.		316		16,928
Kilroy Realty Corp.		2,289		114,862

Description	Shares		Value
Mack-Cali Realty Corp.		2,858	$	61,390
Pebblebrook Hotel Trust		1,239		38,112
Prologis, Inc.		2,563		94,703
Public Storage		782		117,707
Retail Opportunity Investments Corp.		7,019		103,320
Simon Property Group, Inc.		2,611		397,290
SL Green Realty Corp.		491		45,359
STAG Industrial, Inc.		2,683		54,706
Sunstone Hotel Investors, Inc.		3,148		42,183
Taubman Centers, Inc.		1,340		85,653
Ventas, Inc.		2,388		136,785
Vornado Realty Trust		696		61,798
Weyerhaeuser Co.		1,813		57,236
				3,220,366
Total Real Estate Investment Trusts
(Identified cost $4,929,142)				4,936,690
Short-Term Investment | 0.0%
State Street Institutional Treasury Money Market Fund
(Identified cost $27)		27		27
Total Investments | 97.7%
(Identified cost $7,370,535) (a)			$	7,510,152
Cash and Other Assets in Excess of Liabilities | 2.3%				174,438
Net Assets | 100.0%			$	7,684,590

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

Annual Report 17

Description	Shares		Value
Lazard Global Listed Infrastructure Portfolio
Common Stocks | 98.0%
Australia | 15.4%
DUET Group		16,521,196	$	29,503,558
Macquarie Atlas Roads Group		3,199,301		7,855,805
SP AusNet		17,867,940		19,863,087
Spark Infrastructure Group		15,036,809		21,817,851
Transurban Group		4,281,909		26,151,491
				105,191,792
Austria | 1.7%
Flughafen Wien AG		137,970		11,578,120
France | 9.0%
Aeroports de Paris		267,233		30,329,662
Vinci SA		473,331		31,073,411
				61,403,073
Germany | 7.9%
Fraport AG		721,851		54,011,988
Italy | 19.4%
ASTM S.p.A.		581,923		9,206,338
Atlantia S.p.A.		2,438,372		54,711,354
Hera S.p.A.		7,713,674		17,509,299
Snam S.p.A.		1,832,547		10,250,523
Societa Iniziative Autostradali e Servizi S.p.A.		1,734,168		17,212,781
Terna S.p.A.		4,633,675		23,152,343
				132,042,638
Japan | 11.6%
Osaka Gas Co., Ltd.		7,487,300		29,363,355
Toho Gas Co., Ltd.		4,024,350		19,565,732
Tokyo Gas Co., Ltd.		6,116,700		30,086,892
				79,015,979
Luxembourg | 4.2%
SES SA		896,485		29,019,404

Description	Shares		Value
South Korea | 1.4%
Macquarie Korea Infrastructure Fund		1,643,287	$	9,513,890
Spain | 3.7%
Abertis Infraestructuras SA		153,941		3,420,191
Enagas SA		347,609		9,083,513
Red Electrica Corporacion SA		187,705		12,523,944
				25,027,648
Switzerland | 4.4%
Flughafen Zuerich AG		51,861		30,318,381
United Kingdom | 4.5%
Pennon Group PLC		2,838,624		30,953,577
United States | 14.8%
California Water Service Group		564,765		13,029,128
CSX Corp.		988,500		28,439,145
Norfolk Southern Corp.		292,137		27,119,078
PG&E Corp.		655,779		26,414,778
SJW Corp.		201,000		5,987,790
				100,989,919
Total Common Stocks
(Identified cost $603,823,373)				669,066,409
Short-Term Investment | 1.5%
State Street Institutional Treasury Money Market Fund
(Identified cost $9,952,214)		9,952,214		9,952,214
Total Investments | 99.5%
(Identified cost $613,775,587) (a), (c)			$	679,018,623
Cash and Other Assets in Excess of Liabilities | 0.5%				3,203,365
Net Assets | 100.0%			$	682,221,988

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

18 Annual Report

Lazard Global Listed Infrastructure Portfolio (concluded)

Forward Currency Sale Contracts open at December 31, 2013:

Currency	Counterparty	Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation			Unrealized Depreciation
AUD	BRC	03/27/14		17,356,488	$	15,261,698	$	15,413,225		$	—		$	151,527
AUD	CAN	03/27/14		8,344,175		7,344,627		7,409,947			—			65,320
AUD	CAN	03/27/14		13,200,694		11,705,055		11,722,721			—			17,666
AUD	CSF	03/27/14		11,931,159		10,502,570		10,595,326			—			92,756
AUD	HSB	03/27/14		31,345,029		27,584,096		27,835,585			—			251,489
AUD	RBC	03/27/14		34,687,532		30,541,331		30,803,855			—			262,524
CHF	CAN	03/27/14		1,461,501		1,645,390		1,639,442			5,948			—
CHF	CSF	03/27/14		25,615,750		28,598,582		28,734,523			—			135,941
EUR	BRC	03/27/14		59,364,861		81,157,107		81,666,420			—			509,313
EUR	CAN	03/27/14		7,705,519		10,624,138		10,600,246			23,892			—
EUR	CAN	03/27/14		37,221,479		50,886,601		51,204,449			—			317,848
EUR	CIT	03/27/14		32,561,447		44,515,406		44,793,786			—			278,380
EUR	CSF	03/27/14		35,190,736		48,103,273		48,410,818			—			307,545
EUR	HSB	03/27/14		14,216,770		19,433,898		19,557,575			—			123,677
EUR	RBC	03/27/14		41,417,990		56,605,222		56,977,461			—			372,239
GBP	BRC	03/27/14		2,575,063		4,216,975		4,261,647			—			44,672
GBP	CAN	03/27/14		1,290,583		2,126,235		2,135,873			—			9,638
GBP	HSB	03/27/14		4,564,871		7,473,241		7,554,715			—			81,474
GBP	RBC	03/27/14		10,257,346		16,791,685		16,975,578			—			183,893
JPY	CAN	03/27/14		941,552,950		9,037,751		8,944,395			93,356			—
JPY	CSF	03/27/14		881,596,607		8,463,260		8,374,833			88,427			—
JPY	HSB	03/27/14		2,893,642,664		27,778,881		27,488,507			290,374			—
JPY	MEL	03/27/14		3,221,258,288		30,931,404		30,600,731			330,673			—
KRW	BRC	03/21/14		1,383,207,959		1,305,615		1,304,330			1,285			—
KRW	CSF	03/21/14		665,285,396		628,279		627,347			932			—
KRW	MEL	03/21/14		8,217,824,993		7,755,958		7,749,199			6,759			—
Total Forward Currency Sale Contracts					$	561,018,278	$	563,382,534			841,646			3,205,902
Gross unrealized appreciation/depreciation on Forward Currency Sale Contracts										$	841,646		$	3,205,902

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

Annual Report 19

   The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2013

(a) 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)
US Realty Income	$126,993,753	$	359,988	$15,226,519	$(14,866,531	)
US Realty Equity	71,097,257		1,772,631	4,935,694	(3,163,063	)
Global Realty Equity	7,499,651		235,473	224,972	10,501
Global Listed Infrastructure	618,916,337		74,320,282	14,217,996	60,102,286

(b)	Non-income producing security.
(c)	The Portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts.

Security Abbreviations:

ETF	—	Exchange-Traded Fund
REIT	—	Real Estate Investment Trust

Currency Abbreviations:

AUD	—	Australian Dollar	GBP	—	British Pound Sterling
CHF	—	Swiss Franc	JPY	—	Japanese Yen
EUR	—	Euro	KRW	—	South Korean Won

Counterparty Abbreviations:

BRC	—	Barclays Bank PLC	HSB	—	HSBC Bank USA
CAN	—	Canadian Imperial Bank of Commerce	MEL	—	Mellon Bank NA
CIT	—	Citibank NA	RBC	—	Royal Bank of Canada
CSF	—	Credit Suisse Group AG

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

20 Annual Report

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

Industry	Lazard Global Realty Equity Portfolio			Lazard Global Listed Infrastructure Portfolio
Airport Development & Maintenance		—	%		18.5	%
Cable Television		—			4.3
Construction & Engineering		—			4.5
Electric		—			22.1
Energy Services		—			2.8
Gas Utilities		—			11.6
Housing		0.3			—
Leisure & Entertainment		0.6			—
Retail		96.8			—
Transportation		—			26.9
Water		—			7.3
Subtotal		97.7			98.0
Short-Term Investments		—			1.5
Total Investments		97.7	%		99.5	%

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

Annual Report 21

   The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2013	Lazard US Realty Income Portfolio				Lazard US Realty Equity Portfolio
ASSETS
Investments in securities and purchased options, at value		$	112,127,222		$	67,934,194
Cash			62,672			13,206
Foreign currency			—			—
Receivables for:
Capital stock sold			336,794			119,889
Dividends and interest			1,401,383			265,725
Investments sold			7,294,973			935,094
Amount due from Investment Manager (Note 3)			—			—
Gross unrealized appreciation on forward currency contracts			—			—
Total assets			121,223,044			69,268,108
LIABILITIES
Payables for:
Foreign currency due to custodian			—			—
Management fees			41,420			34,031
Accrued distribution fees			15,350			13,440
Accrued directors’ fees			215			120
Investments purchased			347,519			—
Capital stock redeemed			1,374,274			256,234
Gross unrealized depreciation on forward currency contracts			—			—
Line of credit outstanding			5,350,000			265,000
Other accrued expenses and payables			38,858			31,824
Total liabilities			7,167,636			600,649
Net assets		$	114,055,408		$	68,667,459
NET ASSETS
Paid in capital		$	128,398,127		$	72,051,945
Undistributed (distributions in excess of) net investment income			—			—
Accumulated net realized gain (loss)			1,829,197			(392,733	)
Net unrealized appreciation (depreciation) on:
Investments and purchased options			(16,171,916	)		(2,991,753	)
Foreign currency and forward currency contracts			—			—
Net assets		$	114,055,408		$	68,667,459
Institutional Shares
Net assets		$	47,221,854		$	7,844,289
Shares of capital stock outstanding*			6,343,004			488,840
Net asset value, offering and redemption price per share		$	7.44		$	16.05
Open Shares
Net assets		$	66,833,554		$	60,823,170
Shares of capital stock outstanding*			8,991,883			3,776,638
Net asset value, offering and redemption price per share		$	7.43		$	16.11
Cost of investments in securities and purchased options		$	128,299,138		$	70,925,947
Cost of foreign currency		$	—		$	—

* $0.001 par value 5,400,000,000 shares authorized for the Portfolios in total.

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

22 Annual Report

Lazard Global Realty Equity Portfolio			Lazard Global Listed Infrastructure Portfolio
$	7,510,152		$	679,018,623
	—			—
	73			—
	—			3,457,422
	25,974			3,092,260
	192,568			564
	68,193			—
	—			841,646
	7,796,960			686,410,515
	—			18,996
	—			503,555
	501			8,371
	12			945
	667			170,579
	—			169,576
	—			3,205,902
	90,000			—
	21,190			110,603
	112,370			4,188,527
$	7,684,590		$	682,221,988
$	7,680,786		$	619,212,661
	(41,842	)		4,893,045
	(94,207	)		(4,779,439	)
	139,617			65,243,036
	236			(2,347,315	)
$	7,684,590		$	682,221,988
$	5,319,638		$	641,127,127
	343,325			48,827,881
$	15.49		$	13.13
$	2,364,952		$	41,094,861
	152,733			3,125,100
$	15.48		$	13.15
$	7,370,535		$	613,775,587
$	73		$	—

Annual Report 23

   The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2013	Lazard US Realty Income Portfolio				Lazard US Realty Equity Portfolio
Investment Income
Income
Dividends		$	9,419,986		$	2,800,920
Interest			3			—
Total investment income*			9,419,989			2,800,920
Expenses
Management fees (Note 3)			1,151,928			697,083
Custodian fees			52,611			49,162
Administration fees			80,719			67,428
Distribution fees (Open Shares)			243,415			201,097
Professional services			49,012			47,726
Registration fees			58,682			36,512
Shareholders’ services			65,363			89,694
Shareholders’ reports			39,785			21,684
Directors’ fees and expenses			4,736			2,679
Other†			10,992			6,841
Total gross expenses			1,757,243			1,219,906
Management fees waived and expenses reimbursed			(39,000	)		(47,501	)
Administration fees waived			—			—
Total net expenses			1,718,243			1,172,405
Net investment income			7,701,746			1,628,515
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Forward Currency Contracts and Options
Net realized gain (loss) on:
Investments			13,703,073			4,395,306
Foreign currency and forward currency contracts			—			—
Purchased options			—			(36,116	)
Net change in unrealized appreciation (depreciation) on:
Investments			(21,754,968	)		(5,447,524	)
Foreign currency and forward currency contracts			—			—
Purchased options			—			(29,595	)
Net realized and unrealized gain (loss) on investments, foreign currency, forward currency contracts and options			(8,051,895	)		(1,117,929	)
Net increase (decrease) in net assets resulting from operations		$	(350,149	)	$	510,586
*   Net of foreign withholding taxes of		$	—		$	—
†  Includes interest on line of credit of		$	2,048		$	1,126

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

24 Annual Report

Lazard Global Realty Equity Portfolio			Lazard Global Listed Infrastructure Portfolio
$	183,488		$	16,874,480
	—			—
	183,488			16,874,480
	54,912			3,983,688
	71,928			155,354
	51,221			138,528
	6,143			64,979
	84,053			54,269
	31,861			46,034
	26,335			33,599
	9,024			27,267
	184			13,158
	5,886			52,869
	341,547			4,569,745
	(240,299	)		—
	(18,750	)		—
	82,498			4,569,745
	100,990			12,304,735
	795,824			19,093,621
	(1,970	)		3,538,664
	—			—
	(769,545	)		58,336,646
	232			(858,398	)
	—			—
	24,541			80,110,533
$	125,531		$	92,415,268
$	13,503		$	2,673,050
$	42		$	—

Annual Report 25

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

	Lazard US Realty Income Portfolio							Lazard US Realty Equity Portfolio
	Year Ended December 31, 2013				Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Increase (Decrease) in Net Assets
Operations
Net investment income		$	7,701,746		$	3,594,577		$	1,628,515		$	674,794
Net realized gain on investments, foreign currency, forward currency contracts and options			13,703,073			2,753,485			4,359,190			1,566,296
Net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts and options			(21,754,968	)		4,495,301			(5,477,119	)		2,353,234
Net increase (decrease) in net assets resulting from operations			(350,149	)		10,843,363			510,586			4,594,324
Distributions to shareholders
From net investment income
Institutional Shares			(2,107,432	)		(1,744,918	)		(112,274	)		(24,750	)
Open Shares			(3,536,093	)		(854,779	)		(739,462	)		(415,366	)
From net realized gains
Institutional Shares			(6,465,318	)		(1,411,685	)		(633,914	)		(62,992	)
Open Shares			(8,465,688	)		(1,390,717	)		(5,041,557	)		(1,532,345	)
Return of capital
Institutional Shares			—			—			—			—
Open Shares			—			—			—			—
Net decrease in net assets resulting from distributions			(20,574,531	)		(5,402,099	)		(6,527,207	)		(2,035,453	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			42,701,987			31,471,528			6,127,319			924,792
Open Shares			121,300,948			53,636,715			48,927,295			77,949,831
Net proceeds from reinvestment of distributions
Institutional Shares			7,944,138			3,078,434			744,504			82,714
Open Shares			11,491,478			2,093,258			5,519,188			1,882,791
Cost of shares redeemed
Institutional Shares			(47,910,867	)		(6,321,457	)		(957,742	)		(69	)
Open Shares			(107,986,190	)		(7,842,310	)		(53,866,480	)		(17,902,557	)
Net increase in net assets from capital stock transactions			27,541,494			76,116,168			6,494,084			62,937,502
Redemption fees (Note 2(i))
Institutional Shares			2,700			398			—			1
Open Shares			18,372			3,518			8,612			22,440
Net increase in net assets from redemption fees			21,072			3,916			8,612			22,441
Total increase in net assets			6,637,886			81,561,348			486,075			65,518,814
Net assets at beginning of year			107,417,522			25,856,174			68,181,384			2,662,570
Net assets at end of year*		$	114,055,408		$	107,417,522		$	68,667,459		$	68,181,384
*Includes undistributed (distributions in excess of) net investment income of		$	—		$	—		$	—		$	—
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year			6,073,485			2,660,028			160,617			102,426
Shares sold			4,657,361			3,811,160			335,532			53,434
Shares issued to shareholders from reinvestment of distributions			1,022,521			366,619			46,396			4,761
Shares redeemed			(5,410,363	)		(764,322	)		(53,705	)		(4	)
Net increase			269,519			3,413,457			328,223			58,191
Shares outstanding at end of year			6,343,004			6,073,485			488,840			160,617
Open Shares
Shares outstanding at beginning of year			6,474,598			805,878			3,747,565			76,246
Shares sold			13,171,196			6,359,333			2,682,699			4,609,856
Shares issued to shareholders from reinvestment of distributions			1,467,505			247,778			342,619			108,075
Shares redeemed			(12,121,416	)		(938,391	)		(2,996,245	)		(1,046,612	)
Net increase			2,517,285			5,668,720			29,073			3,671,319
Shares outstanding at end of year			8,991,883			6,474,598			3,776,638			3,747,565

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

26 Annual Report

Lazard Global Realty Equity Portfolio						Lazard Global Listed Infrastructure Portfolio
Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
$	100,990		$	55,655		$	12,304,735		$	3,721,879
	793,854			196,406			22,632,285			4,663,167
	(769,313	)		1,145,098			57,478,248			12,616,185
	125,531			1,397,159			92,415,268			21,001,231
	(111,909	)		(89,484	)		(11,132,365	)		(3,885,197	)
	(61,907	)		(67,032	)		(618,857	)		(330,133	)
	(199,993	)		(18,944	)		(17,822,542	)		(2,328,587	)
	(135,853	)		(15,413	)		(1,133,716	)		(237,215	)
	(32,900	)		—			—			—
	(22,116	)		—			—			—
	(564,678	)		(190,873	)		(30,707,480	)		(6,781,132	)
	4,925,553			19,658			634,839,540			40,118,611
	1,086,728			1,509,496			29,997,173			5,003,640
	344,801			108,427			19,887,096			5,695,999
	209,328			75,995			1,649,076			559,340
	(2,530,692	)		(6,635	)		(196,894,697	)		(38,132,595	)
	(918,254	)		(488,552	)		(6,801,074	)		(2,437,008	)
	3,117,464			1,218,389			482,677,114			10,807,987
	—			1			6,934			626
	31			447			2,938			226
	31			448			9,872			852
	2,678,348			2,425,123			544,394,774			25,028,938
	5,006,242			2,581,119			137,827,214			112,798,276
$	7,684,590		$	5,006,242		$	682,221,988		$	137,827,214
$	(95,276	)	$	(96,151	)	$	4,893,045		$	(629,620	)
	164,688			157,229			11,419,125			10,683,008
	303,046			1,367			51,937,910			3,865,052
	22,413			6,508			1,546,421			534,797
	(146,822	)		(416	)		(16,075,575	)		(3,663,732	)
	178,637			7,459			37,408,756			736,117
	343,325			164,688			48,827,881			11,419,125
	130,199			54,805			1,159,035			854,515
	63,297			102,778			2,376,299			486,297
	13,430			4,567			128,456			52,376
	(54,193	)		(31,951	)		(538,690	)		(234,153	)
	22,534			75,394			1,966,065			304,520
	152,733			130,199			3,125,100			1,159,035

Annual Report 27

   The Lazard Funds, Inc. Financial Highlights

LAZARD US REALTY INCOME PORTFOLIO

							For the Period
Selected data for a share of capital	Year Ended						9/26/11* to
stock outstanding throughout each period	12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	8.57		$	7.46		$	9.73
Income (loss) from investment operations:
Net investment income (a)		0.47			0.49			0.16
Net realized and unrealized gain (loss)		(0.27	)		1.23			0.55
Total from investment operations		0.20			1.72			0.71
Less distributions from:
Net investment income		(0.34	)		(0.37	)		(0.24	)
Net realized gains		(0.99	)		(0.24	)		(2.74	)
Total distributions		(1.33	)		(0.61	)		(2.98	)
Redemption fees		—	(b)		—	(b)		—
Net asset value, end of period	$	7.44		$	8.57		$	7.46
Total Return (c)		2.37	%		23.32	%		9.71	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	47,222		$	52,024		$	19,849
Ratios to average net assets (d):
Net expenses		0.95	%		1.15	%		1.15	%
Gross expenses		0.98	%		1.16	%		2.31	%
Net investment income		5.29	%		5.94	%		8.26	%
Portfolio turnover rate		104	%		42	%		89	%
							For the Period									For the Period
Selected data for a share of capital	Year Ended						6/1/11 to			Year Ended						7/30/08** to
stock outstanding throughout each period	12/31/13			12/31/12			12/31/11			5/31/11			5/31/10			5/31/09
Open Shares
Net asset value, beginning of period	$	8.56		$	7.45		$	11.34		$	10.78		$	6.79		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.44			0.51			0.44			0.32			0.48			0.41
Net realized and unrealized gain (loss)		(0.26	)		1.19			(1.21	)		2.05			4.10			(3.26	)
Total from investment operations		0.18			1.70			(0.77	)		2.37			4.58			(2.85	)
Less distributions from:
Net investment income		(0.32	)		(0.35	)		(0.38	)		(0.64	)		(0.59	)		(0.36	)
Net realized gains		(0.99	)		(0.24	)		(2.74	)		(1.17	)		—			—
Total distributions		(1.31	)		(0.59	)		(3.12	)		(1.81	)		(0.59	)		(0.36	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	7.43		$	8.56		$	7.45		$	11.34		$	10.78		$	6.79
Total Return (c)		1.99	%		23.00	%		-4.82	%		23.27	%		69.50	%		-27.15	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	66,834		$	55,393		$	6,007		$	15,830		$	9,864		$	3,817
Ratios to average net assets (d):
Net expenses		1.22	%		1.45	%		1.47	%		1.48	%		1.48	%		1.48	%
Gross expenses		1.24	%		1.47	%		3.05	%		2.42	%		4.20	%		19.67	%
Net investment income		4.86	%		6.18	%		7.49	%		2.81	%		5.14	%		8.19	%
Portfolio turnover rate		104	%		42	%		89	%		77	%		116	%		71	%

*	The inception date for Institutional Shares was September 26, 2011.
**	The Portfolio commenced operations on July 30, 2008.
(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	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.
(d)	Annualized for a period of less than one year.

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

28 Annual Report

LAZARD US REALTY EQUITY PORTFOLIO

							For the Period
Selected data for a share of capital	Year Ended						9/26/11* to
stock outstanding throughout each period	12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period		$17.40			$14.89			$15.76
Income (loss) from investment operations:
Net investment income (a)		0.41			0.31			0.10
Net realized and unrealized gain (loss)		(0.10	)		2.79			2.91
Total from investment operations		0.31			3.10			3.01
Less distributions from:
Net investment income		(0.25	)		(0.17	)		(0.12	)
Net realized gains		(1.41	)		(0.42	)		(3.76	)
Total distributions		(1.66	)		(0.59	)		(3.88	)
Redemption fees		—			—	(b)		—
Net asset value, end of period		$16.05			$17.40			$14.89
Total Return (c)		1.77	%		20.83	%		20.84	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$7,844			$2,794			$1,525
Ratios to average net assets (d):
Net expenses		1.13	%		1.20	%		1.20	%
Gross expenses		1.27	%		2.34	%		13.07	%
Net investment income		2.28	%		1.86	%		2.32	%
Portfolio turnover rate		98	%		52	%		63	%
							For the Period									For the Period
Selected data for a share of capital	Year Ended						6/1/11 to			Year Ended						12/31/08** to
stock outstanding throughout each period	12/31/13			12/31/12			12/31/11			5/31/11			5/31/10			5/31/09
Open Shares
Net asset value, beginning of period	$	17.45		$	14.92		$	19.49		$	16.66		$	10.76		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.33			0.30			0.14			(0.07	)		0.05			0.14
Net realized and unrealized gain (loss)		(0.06	)		2.76			(0.90	)		5.17			7.26			0.62
Total from investment operations		0.27			3.06			(0.76	)		5.10			7.31			0.76
Less distributions from:
Net investment income		(0.20	)		(0.12	)		(0.06	)		(0.04	)		(0.17	)		—
Net realized gains		(1.41	)		(0.42	)		(3.76	)		(2.23	)		(1.24	)		—
Total distributions		(1.61	)		(0.54	)		(3.82	)		(2.27	)		(1.41	)		—
Redemption fees		—	(b)		0.01			0.01			—	(b)		—			—
Net asset value, end of period	$	16.11		$	17.45		$	14.92		$	19.49		$	16.66		$	10.76
Total Return (c)		1.58	%		20.58	%		-2.44	%		33.01	%		70.16	%		7.60	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	60,823		$	65,387		$	1,138		$	4,852		$	2,463		$	110
Ratios to average net assets (d):
Net expenses		1.36	%		1.50	%		1.80	%		1.93	%		2.00	%		2.00	%
Gross expenses		1.41	%		1.78	%		7.48	%		5.66	%		17.23	%		214.80	%
Net investment income (loss)		1.83	%		1.74	%		1.36	%		-0.41	%		0.32	%		3.52	%
Portfolio turnover rate		98	%		52	%		63	%		91	%		138	%		37	%

*	The inception date for Institutional Shares was September 26, 2011.
**	The Portfolio commenced operations on December 31, 2008.
(a)	Net investment income (loss) has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	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.
(d)	Annualized for a period of less than one year.

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

Annual Report 29

LAZARD GLOBAL REALTY EQUITY PORTFOLIO

							For the Period
Selected data for a share of capital	Year Ended						9/26/11* to
stock outstanding throughout each period	12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	16.98		$	12.18			$13.08
Income (loss) from investment operations:
Net investment income (a)		0.30			0.22			0.03
Net realized and unrealized gain (loss)		(0.18	)		5.27			0.05
Total from investment operations		0.12			5.49			0.08
Less distributions from:
Net investment income		(0.50	)		(0.57	)		(0.75	)
Net realized gains		(0.96	)		(0.12	)		(0.23	)
Return of capital		(0.15	)		—			—
Total distributions		(1.61	)		(0.69	)		(0.98	)
Redemption fees		—			—	(b)		—
Net asset value, end of period	$	15.49		$	16.98			$12.18
Total Return (c)		0.89	%		45.14	%		0.09	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	5,320		$	2,797			$1,914
Ratios to average net assets (d):
Net expenses		1.22	%		1.30	%		1.30	%
Gross expenses		5.46	%		5.84	%		17.38	%
Net investment income		1.79	%		1.50	%		0.83	%
Portfolio turnover rate		81	%		42	%		41	%
							For the Period									For the Period
Selected data for a share of capital	Year Ended						6/1/11 to			Year Ended						12/31/08** to
stock outstanding throughout each period	12/31/13			12/31/12			12/31/11			5/31/11			5/31/10			5/31/09
Open Shares
Net asset value, beginning of period	$	16.97		$	12.17		$	16.98		$	14.54		$	15.39		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.25			0.19			0.06			0.16			0.28			0.10
Net realized and unrealized gain (loss)		(0.18	)		5.25			(3.89	)		3.99			1.40			5.29
Total from investment operations		0.07			5.44			(3.83	)		4.15			1.68			5.39
Less distributions from:
Net investment income		(0.45	)		(0.52	)		(0.75	)		(0.55	)		(1.51	)		—
Net realized gains		(0.96	)		(0.12	)		(0.23	)		(1.16	)		(1.05	)		—
Return of capital		(0.15	)		—			—			—			—			—
Total distributions		(1.56	)		(0.64	)		(0.98	)		(1.71	)		(2.56	)		—
Redemption fees		—	(b)		—	(b)		—			—	(b)		0.03			—
Net asset value, end of period	$	15.48		$	16.97		$	12.17		$	16.98		$	14.54		$	15.39
Total Return (c)		0.60	%		44.81	%		-22.98	%		29.13	%		9.65	%		53.90	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,365		$	2,209		$	667		$	1,716		$	1,427		$	424
Ratios to average net assets (d):
Net expenses		1.54	%		1.60	%		1.84	%		1.96	%		2.00	%		2.00	%
Gross expenses		5.81	%		6.13	%		16.46	%		14.35	%		25.27	%		116.23	%
Net investment income		1.45	%		1.25	%		0.66	%		0.98	%		1.71	%		1.90	%
Portfolio turnover rate		81	%		42	%		41	%		54	%		81	%		5	%

*	The inception date for Institutional Shares was September 26, 2011.
**	The Portfolio commenced operations on December 31, 2008.
(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	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.
(d)	Annualized for a period of less than one year.

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

30 Annual Report

LAZARD GLOBAL LISTED INFRASTRUCTURE PORTFOLIO

Selected data for a share of capital	Year Ended												Period Ended
stock outstanding throughout each period	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09*
Institutional Shares
Net asset value, beginning of period	$	10.96		$	9.78		$	10.31		$	10.00		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.35			0.31			0.33			0.30			—	(b)
Net realized and unrealized gain (loss)		2.53			1.43			(0.48	)		0.34			—
Total from investment operations		2.88			1.74			(0.15	)		0.64			—	(b)
Less distributions from:
Net investment income		(0.33	)		(0.35	)		(0.15	)		(0.23	)		—
Net realized gains		(0.38	)		(0.21	)		(0.23	)		(0.10	)		—
Total distributions		(0.71	)		(0.56	)		(0.38	)		(0.33	)		—
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—
Net asset value, end of period	$	13.13		$	10.96		$	9.78		$	10.31		$	10.00
Total Return (c)		26.56	%		18.05	%		-1.55	%		6.63	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	641,127		$	125,112		$	104,439		$	115,680		$	74
Ratios to average net assets (d):
Net expenses		1.01	%		1.14	%		1.09	%		1.30	%		1.30	%
Gross expenses		1.01	%		1.14	%		1.09	%		1.35	%	1,825.00		%(e)
Net investment income (loss)		2.80	%		3.01	%		3.15	%		3.01	%		-1.30	%
Portfolio turnover rate		35	%		26	%		135	%		46	%		0	%
Selected data for a share of capital	Year Ended												Period Ended
stock outstanding throughout each period	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09*
Open Shares
Net asset value, beginning of period	$	10.97		$	9.78		$	10.34		$	10.00		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.30			0.28			0.28			0.24			—	(b)
Net realized and unrealized gain (loss)		2.55			1.42			(0.49	)		0.38			—
Total from investment operations		2.85			1.70			(0.21	)		0.62			—	(b)
Less distributions from:
Net investment income		(0.29	)		(0.30	)		(0.12	)		(0.18	)		—
Net realized gains		(0.38	)		(0.21	)		(0.23	)		(0.10	)		—
Total distributions		(0.67	)		(0.51	)		(0.35	)		(0.28	)		—
Redemption fees		—	(b)		—	(b)		—	(b)		—			—
Net asset value, end of period	$	13.15		$	10.97		$	9.78		$	10.34		$	10.00
Total Return (c)		26.24	%		17.54	%		-1.95	%		6.28	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	41,095		$	12,715		$	8,359		$	118		$	50
Ratios to average net assets (d):
Net expenses		1.32	%		1.50	%		1.60	%		1.60	%		1.60	%
Gross expenses		1.32	%		1.50	%		1.67	%		18.06	%	1,825.00		%(e)
Net investment income		2.42	%		2.66	%		2.81	%		2.37	%		-1.60	%
Portfolio turnover rate		35	%		26	%		135	%		46	%		0	%

*	The Portfolio commenced operations on December 31, 2009.
(a)	Net investment income (loss) has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
(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 31

   The Lazard Funds, Inc. Notes to Financial Statements December 31, 2013

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 twenty-five no-load portfolios (each referred to as a “Portfolio”), as follows: Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard Global Equity Select Portfolio (commenced investment operations on December 31, 2013), 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 Core Equity Portfolio (commenced investment operations on October 31, 2013), 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 Explorer Total Return Portfolio (commenced investment operations on June 28, 2013), Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio (formerly, Lazard International Realty Equity Portfolio), Lazard US Short Duration Fixed Income Portfolio (formerly, Lazard U.S. Municipal Portfolio), Lazard US Corporate Income Portfolio (formerly, Lazard U.S. High Yield Portfolio), Lazard Global Fixed Income Portfolio, Lazard Multi-Asset Targeted Volatility Portfolio, and Lazard Capital Allocator Opportunistic Strategies Portfolio. All Portfolios, other than the US Equity Concentrated Portfolio, the Emerging Markets Debt Portfolio, the Explorer Total Return Portfolio, the US Realty Equity Portfolio and the Global 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, 2013. This report includes only the financial statements of US Realty Income Portfolio, US Realty Equity Portfolio, Global Realty Equity Portfolio, and Global Listed Infrastructure Portfolio (the “Portfolios”). The financial statements of other portfolios are presented separately.

Effective November 29, 2013, the Fund commenced offering R6 Shares. Each Portfolio currently offers Institutional Shares and Open Shares, and certain Portfolios offer R6 Shares. Each share class is identical except as to minimum

investment requirements; eligibility requirements for R6 Shares; the services offered to, and expenses borne by, each class; and the availability of Service Payments (as defined in the Prospectus). As of December 31, 2013, no R6 Shares have been issued.

2. Significant Accounting Policies

The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Fund is an investment company and therefore applies specialized accounting guidance in Accounting Standards Codification Topic 946. 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 US 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. 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 (“NAV”).

The Valuation Committee of the Investment Manager, which meets periodically under the direction of the Board of Directors (the “Board”), may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Investment Manager’s portfolio managers/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 NAV is calculated, or when current market quotations otherwise are determined not to be readily available or

32 Annual Report

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 non-US 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 US securities and other appropriate indicators, such as closing market prices of relevant American Depositary Receipts or futures contracts. Non-US 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 NAV 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’ NAVs.

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

The US 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.

During the year ended December 31, 2013, only Global Listed Infrastructure Portfolio traded in forward currency contracts.

(d) Options Transactions—For hedging and investment purposes, certain Portfolios may purchase and write (sell) put and call options that are traded on US and non-US 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 will not benefit from exercise of an option should the counterparty not perform under

Annual Report 33

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, 2013, transactions in options purchased were as follows:

US Realty Equity Portfolio

Purchased Options	Number of Contracts			Cost
Options outstanding at beginning of year		—		$	—
Options purchased		18,305			2,565,593
Options sold		(12,675	)		(1,905,893	)
Options expired		(4,100	)		(369,915	)
Options outstanding at end of year		1,530		$	289,785

During the year ended December 31, 2013, only US Realty Equity Portfolio traded in options.

(e) 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, 2013, the Portfolios had no unused realized capital losses which, for federal income tax purposes, could be used to offset future realized capital gains.

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, 2013, the following Portfolios elected to defer net capital and foreign currency losses arising between November 1, 2013 and December 31, 2013 as follows:

Portfolio	Amount
US Realty Equity	$	508,313
Global Realty Equity		7,594

The Regulated Investment Company Modernization Act of 2010 (the “RIC Modernization Act”) includes numerous provisions that generally became effective for taxable years beginning after December 22, 2010. Among the 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 (2010-2012), or expected to be taken in the Portfolios’ 2013 tax returns.

(f) Dividends and Distributions—Dividends from net investment income, if any, on shares of the Portfolios will be declared and paid annually, except that US Realty Income and Global Listed Infrastructure 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 carryforwards would be taxable to the Portfolios, if not distributed. The Portfolios intend to declare and distribute these amounts, at least annually, to shareholders; however, to avoid taxation, a second distribution may be required.

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.

34 Annual Report

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

					Long-Term
	Ordinary Income				Capital Gain
Portfolio	2013		2012		2013		2012
US Realty Income
Institutional	$	5,613,865	$	3,236,784	$	1,949,332	$	234,930
Open		9,657,803		1,799,757		3,353,531		130,628
US Realty Equity
Institutional		237,517		86,390		270,300		16,085
Open		2,815,400		1,629,578		3,203,990		303,400
Global Realty Equity*
Institutional		163,195		112,946		141,583		—
Open		109,706		77,927		95,178		—
Global Listed Infrastructure
Institutional		19,700,194		4,836,897		9,217,039		1,355,921
Open		1,219,626		459,502		570,621		128,812

* In 2013, Global Realty Equity Portfolio had return of capital distributions of $55,016.

As of December 31, 2013, the components of distributable earnings, on a tax basis, were as follows:

Portfolio	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain	Net Unrealized Appreciation (Depreciation) Including Foreign Currency		Other Temporary Differences
US Realty Income	$	—	$523,812	$(14,866,531	)	$	—
US Realty Equity		—	—	(3,163,063	)		—
Global Realty Equity		—	—	11,399			1
Global Listed
Infrastructure		2,890,667	—	60,118,662			(2	)

(g) Allocation of Expenses—Expenses not directly chargeable to a specific Portfolio are allocated among all the portfolios of the Fund 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.

(h) 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.

(i) 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 Statements of Changes in Net Assets.

(j) 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 Portfolios, 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
US Realty Income		0.75	%
US Realty Equity		0.80
Global Realty Equity		0.90
Global Listed Infrastructure		0.90

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

Annual Report 35

Portfolio	Institutional Shares			Open Shares
US Realty Income*		1.00	%		1.30	%
US Realty Equity*		1.05			1.35
Global Realty Equity*		1.15			1.45
Global Listed Infrastructure		1.30			1.60

* Effective August 15, 2013, the Investment Manager voluntarily agreed to lower the expense limitations by 0.15% for both share classes, to the percentages shown above.

During the year ended December 31, 2013, 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
US Realty Income	$	14,864	$	—	$	24,136	$	—
US Realty Equity		9,697		—		37,804		—
Global Realty Equity		32,838		111,541		22,074		73,846

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 Global Realty Equity Portfolio until the Portfolio’s net assets reach $25 million. During the year ended December 31, 2013, State Street waived its fees of $18,750 for the Portfolio.

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

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

BFDS is the Fund’s transfer and dividend disbursing agent. For its services, BFDS receives a monthly fee computed on

the basis of the number of shareholder accounts it maintains 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 the first six months after a new Portfolio has commenced operations.

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, generally, divided among the Lazard Funds based on relative net assets. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement.

5. Securities Transactions and Transactions with Affiliates

Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2013 were as follows:

Portfolio	Purchases		Sales
US Realty Income	$	171,612,554	$	148,886,229
US Realty Equity		85,451,262		81,942,206
Global Realty Equity		5,107,485		4,947,188
Global Listed Infrastructure		601,597,122		149,310,967

For the year ended December 31, 2013, 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.

36 Annual Report

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 arrears. During the year ended December 31, 2013, the Portfolios 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
US Realty Income		$979,338		$5,350,000		1.11	%		68
US Realty Equity		652,857		2,310,000		1.11			56
Global Realty Equity		46,379		180,000		1.13			29

* For days borrowings were outstanding.

Management believes that the fair value of the liabilities under the line of credit is equivalent to the recorded amount based on its short term maturity and interest rate which fluctuates with LIBOR. The line of credit outstanding as of December 31, 2013 would be categorized at Level 2 (see Note 9).

7. Non-US Securities Investment Risks

The Portfolios invest in securities of foreign entities and in instruments denominated in foreign currencies which involve risks not typically associated with investments in US securities. A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as exposure to less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity. In addition, investments denominated in currencies other than US dollars carry the risk that such currencies will decline in value relative to the US dollar and affect the value of these investments held in the Portfolios. Emerging market countries can generally have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries. The securities markets of emerging market countries have historically been extremely volatile. However,

the capital markets in the US and internationally have experienced unprecedented volatility in recent years, causing significant declines in the value and liquidity of many securities. These market conditions may continue to worsen. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to investments denominated in emerging markets currencies.

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)

Annual Report 37

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

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2013:

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, 2013
US Realty Income Portfolio
Common Stock	$	4,025,840	$	—		$	—	$	4,025,840
Preferred Stocks		43,562,449		—			—		43,562,449
Real Estate Investment Trusts		64,538,933		—			—		64,538,933
Total	$	112,127,222	$	—		$	—	$	112,127,222
US Realty Equity Portfolio
Assets:
Common Stocks	$	1,475,772	$	—		$	—	$	1,475,772
Real Estate Investment Trusts		66,198,232		—			—		66,198,232
Other Financial Instruments*
Purchased Options		260,190		—			—		260,190
Total	$	67,934,194	$	—		$	—	$	67,934,194
Global Realty Equity Portfolio
Common Stocks	$	2,573,435	$	—		$	—	$	2,573,435
Real Estate Investment Trusts		4,936,690		—			—		4,936,690
Short-Term Investment		27		—			—		27
Total	$	7,510,152	$	—		$	—	$	7,510,152
Global Listed Infrastructure Portfolio
Assets:
Common Stocks	$	669,066,409	$	—		$	—	$	669,066,409
Short-Term Investment		9,952,214		—			—		9,952,214
Other Financial Instruments*
Forward Currency Contracts		—		841,646			—		841,646
Total	$	679,018,623	$	841,646		$	—	$	679,860,269
Liabilities:
Other Financial Instruments*
Forward Currency Contracts	$	—	$	(3,205,902	)	$	—	$	(3,205,902	)

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

The forward currency contracts included in Level 2 were valued using quotations provided by an independent pricing service.

In connection with the periodic implementation of fair value pricing procedures with respect to non-US securities (see Note 2(a)), certain equity securities in the Global Realty Equity and Global Listed Infrastructure Portfolios can transfer 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. As of December 31, 2013, securities valued at $2,905,746

and $119,544,891 were transferred from Level 2 to Level 1 for the Global Realty Equity and Global Listed Infrastructure Portfolios, respectively. The short-term investments were transferred from Level 2 to Level 1 based on increased reliance on the NAV of an open-end mutual fund as being representative of an active market price. There were no other transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 2013. Transfers between levels are recognized at the beginning of the reporting period.

For further information regarding security characteristics see Portfolios of Investments.

38 Annual Report

10. Derivative Instruments

Certain Portfolios may use derivative instruments, including forward currency contracts or options.

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.

US Realty Equity Portfolio

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2013:

	Fair Value
Liability Derivatives
Equity Risk:
Gross unrealized depreciation on purchased options	$	29,595

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2013 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Equity Risk:
Net realized loss on purchased options	$	(36,116	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Equity Risk:
Net change in unrealized depreciation on purchased options	$	(29,595	)

Global Listed Infrastructure Portfolio

During the year ended December 31, 2013, the notional amounts of purchases and sales of forward currency contracts were $1,682,427,551 and $2,083,630,777, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2013:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	841,646
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	3,205,902

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2013 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	3,696,950
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(877,094	)

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

US Realty Income and Global Realty Equity Portfolios did not trade in derivatives during the year ended December 31, 2013.

On January 31, 2013, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (“ASU 2013-01”). ASU 2013-01 limits the scope of balance sheet offsetting disclosures, which was originally described in FASB ASU 2011-11, to derivatives, repurchase or reverse repurchase agreements, and securities borrowing or securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement.

As of December 31, 2013, the Global Listed Infrastructure Portfolio holds derivative instruments that are eligible for offset in the Statement of Assets and Liabilities and are subject to master netting arrangements. A master netting arrangement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as any cash collateral, through single payment in the event of default on or termination of any one contract.

Annual Report 39

The required information for the affected Portfolio is presented in the below table, as of December 31, 2013:

Global Listed Infrastructure Portfolio

Description	Gross Amounts of Recognized Assets			Gross Amounts Offset in the Statement of Assets and Liabilities		Net Amounts of Assets Presented in the Statement of Assets and Liabilities
Forward Currency Contracts		$	841,646	$	—	$	841,646

				Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Assets Presented in Statement of Assets and Liabilities			Financial Instruments			Collateral Pledged		Net Amount
Barclays Bank PLC		$	1,285	$	(1,285	)	$	—	$	—
Canadian Imperial Bank of Commerce			123,196		(123,196	)		—		—
Credit Suisse Group AG			89,359		(89,359	)		—		—
HSBC Bank USA			290,374		(290,374	)		—		—
Mellon Bank NA			337,432		—			—		337,432
Total		$	841,646	$	(504,214	)	$	—	$	337,432

Description	Gross Amounts of Recognized Liabilities			Gross Amounts Offset in the Statement of Assets and Liabilities		Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities
Forward Currency Contracts		$	3,205,902	$	—	$	3,205,902

				Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Assets Presented in Statement of Assets and Liabilities			Financial Instruments			Collateral Pledged		Net Amount
Barclays Bank PLC		$	705,512	$	(1,285	)	$	—	$	704,227
Canadian Imperial Bank of Commerce			410,472		(123,196	)		—		287,276
Citibank NA			278,380		—			—		278,380
Credit Suisse Group AG			536,242		(89,359	)		—		446,883
HSBC Bank USA			456,640		(290,374	)		—		166,266
Royal Bank of Canada			818,656		—			—		818,656
Total		$	3,205,902	$	(504,214	)	$	—	$	2,701,688

11. Accounting Standards Update

In June 2013, the FASB issued ASU No. 2013-08 Financial Services — Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. This ASU clarifies the characteristics of an investment company, provides comprehensive guidance to determine whether an entity is an investment company and sets certain measurement and disclosure requirements. This ASU is effective for interim and annual periods in the fiscal years that begin after

December 15, 2013. The Investment Manager does not expect that the adoption of this standard will have a material impact on the financial statements.

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.

40 Annual Report

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

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

Report of Independent Registered Public Accounting Firm

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 Lazard US Realty Income Portfolio (from June 1, 2011), Lazard US Realty Equity Portfolio (from June 1, 2011), Lazard Global Realty Equity Portfolio (formerly known as Lazard International Realty Equity Portfolio; from June 1, 2011) and Lazard Global Listed Infrastructure Portfolio (each individually a “Portfolio”) which are four of the Portfolios constituting The Lazard Funds, Inc. (the “Fund”) as of December 31, 2013 and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, except for Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio and Lazard Global Realty Equity Portfolio (collectively the “Realty Portfolios”) for which our audits are for the period from June 1, 2011 to December 31, 2013. 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 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, 2013, 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 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 Portfolios of The Lazard Funds, Inc. listed above as of December 31, 2013, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and the financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America.

ANCHIN, BLOCK & ANCHIN LLP

New York, New York
February 28, 2014

Annual Report 41

   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 (68)	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 (51)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
		TIAA-CREF Funds (59 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)
Leon M. Pollack (73)	Director (August 2006)	Private Investor
Richard Reiss, Jr. (69)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (66)	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 (53)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (53)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present) Lazard Ltd, Vice Chairman and Director (2010 – present)

(1)	The address of each Director of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each Director also serves as a Director for each of the Lazard Funds (comprised of, as of January 31, 2014, 31 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) are also board members of Lazard Alternative Strategies 1099 Fund, a closed-end registered management investment company 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, or online, at www.LazardNet.com.

42 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 (41)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Stephen St. Clair (55)	Treasurer (May 2003)	Vice President of the Investment Manager
Brian D. Simon (51)	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 (38)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President and Counsel) of the Investment Manager
Cesar A. Trelles (39)	Assistant Treasurer (December 2004)	Vice President (since February 2011, previously Fund Administration Manager) of the Investment Manager

(1)	The address of each officer of the Fund 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 43

   The Lazard Funds, Inc. Tax and Other Information (unaudited)

Tax Information

Year Ended December 31, 2013

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2013:

Of the dividends paid by the Portfolios, the corresponding percentage shown below is qualified dividend income.

Portfolio	Percentage
US Realty Income	—	%
US Realty Equity	—
Global Realty Equity	2.49
Global Listed Infrastructure	81.66

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

Portfolio	Percentage
US Realty Income	—	%
US Realty Equity	—
Global Realty Equity	0.53
Global Listed Infrastructure	7.67

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 US nonresident shareholders.

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.

44 Annual Report

NOTES

NOTES

NOTES

NOTES

The Lazard Funds, Inc.
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
http://www.LazardNet.com

Investment Manager

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

Distributor
Lazard Asset Management Securities LLC
30 Rockefeller Plaza
New York, New York 10112-6300

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Transfer Agent and Dividend Disbursing Agent
Boston Financial Data Services, Inc.
P.O. Box 8514
Boston, Massachusetts 02266-8514
Telephone: 800-986-3455

Independent Registered Public Accounting Firm
Anchin, Block & Anchin LLP
1375 Broadway
New York, New York 10018
http://www.anchin.com

Legal Counsel
Stroock & Stroock & Lavan LLP
180 Maiden Lane
New York, New York 10038-4982
http://www.stroock.com

 

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

Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardnet.com
LZDPS028

Lazard Funds Annual Report

December 31, 2013

Equity Funds

Lazard US Equity Concentrated Portfolio

Lazard US Strategic Equity Portfolio

Lazard US Mid Cap Equity Portfolio

Lazard US Small-Mid Cap Equity Portfolio

Lazard International Equity Portfolio

Lazard International Equity Select Portfolio

Lazard International Strategic Equity Portfolio

Lazard International Small Cap Equity Portfolio

Lazard Global Equity Select Portfolio

   The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
8	Performance Overviews
16	Information About Your Portfolio’s Expenses
18	Portfolio Holdings Presented by Sector
19	Portfolios of Investments
19	Lazard US Equity Concentrated Portfolio
20	Lazard US Strategic Equity Portfolio
22	Lazard US Mid Cap Equity Portfolio
23	Lazard US Small-Mid Cap Equity Portfolio
25	Lazard International Equity Portfolio
27	Lazard International Equity Select Portfolio
29	Lazard International Strategic Equity Portfolio
31	Lazard International Small Cap Equity Portfolio
33	Lazard Global Equity Select Portfolio
34	Notes to Portfolios of Investments
36	Statements of Assets and Liabilities
40	Statements of Operations
44	Statements of Changes in Net Assets
48	Financial Highlights
57	Notes to Financial Statements
66	Report of Independent Registered Public Accounting Firm
67	Board of Directors and Officers Information
69	Other Information
71	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,

The year 2013 was one of many contrasts. Some records were set, with US equities reaching new highs, while US bond returns were negative for the first time in more than a decade. Equities globally made good headway, led by a surge in developed-market stocks, which significantly outpaced their emerging-market counterparts during the year. Markets in the United States, Japan, and Europe did well, with returns in the low double digits fueled by accommodative central bank policy and signs of healing in their respective economies.

Bond markets were subdued in comparison to a strong 2012, amid expectations of higher long-term interest rates. Meanwhile, emerging markets equity and debt weakened over concerns about widening current account deficits in the developing world. From a global perspective, corporate profitability and balance sheets remain strong and we anticipate that the operating back-drop for companies will continue to improve.

We are also pleased to inform you of a change to the format of the Lazard Funds’ annual and semiannual reports. Beginning this year-end, we will be reporting on the Lazard Funds through a set of five reports grouped by asset class. This allows us to increase ease of access to fund information for our shareholders and reduce production costs.

As always, at Lazard Asset Management, we remain focused on active management and 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 investment 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

US Equities

Markets rallied during 2013 due to ongoing accommodative global monetary policy, encouraging, albeit slow progress in the US economic recovery, and signs of stabilization in Europe and China. During the period, US markets met and exceeded highs last seen in 2007 despite ongoing political uncertainty, as house prices continued to rebound, household assets and net worth rose, and federal fiscal deficits declined. The market grew increasingly volatile toward the end of May amid uncertainty over US monetary policy. US Treasury yields rose and equity markets declined globally after US Federal Reserve (the Fed) Chairman Ben Bernanke suggested late in the second quarter that the Fed may start to scale back on its bond purchases. However, investors ultimately cheered the Fed’s December announcement that it would reduce its monthly bond purchases by $10 billion, as the decision underscored Fed officials’ belief that the country’s economic recovery was sustainable.

International Equities

The 12-month period ended December 31, 2013 was one of strong returns among most developed international equity markets. Accommodative monetary policies in the United States, Europe, and Japan led many markets higher. In Europe, the European Central Bank’s stimulative monetary policy combined with moderating fiscal austerity, and resulted in the euro zone expanding during the second quarter—a reversal after six quarters of contraction. In the second half of the year, the region showed continued signs of recovery as economic data improved. During the first half of the year, Japanese equity markets rose as the Bank of Japan’s unprecedented monetary easing through asset purchases took hold, and there were indications that deflation might be coming to an end. During the second half of 2013, Japan’s parliamentary election proved to be a positive referendum on Prime Minister Shinzō ^— Abe’s policies, as his party gained additional support for its structural reforms. In the United States, the Fed responded to improving economic data and announced in December that it would reduce its bond-purchasing program starting in January 2014, impacting emerging-market funding rates. Emerging markets declined on the year as the cost of borrowing in US dollars rose. China announced steps to help foster growth domestically, after data points throughout the year showed consumption, production, and retail spending were slowing after years of rapid expansion.

Lazard US Equity Concentrated Portfolio

For the year ended December 31, 2013, the Lazard US Equity Concentrated Portfolio’s Institutional Shares posted a total return of 29.59%, while Open Shares posted a total return of 29.21%, as compared with the 32.39% return for the S&P 500^® Index.

Stock selection in the information technology sector contributed to performance. Shares of Apple rose after it was purchased in April as the company reported strong earnings, which showed stabilization in key metrics. Stock selection and an overweight position in the consumer discretionary sector also helped returns. Shares of Advance Auto Parts rose after the company announced in October that it would be acquiring General Parts International for $2 billion, making it the largest aftermarket auto parts provider in North America.

In contrast, stock selection in the financials sector detracted from performance. Shares of real estate investment trusts (REITs) Lexington Realty Trust and Vornado Realty Trust lagged along with REIT peers as the asset class was negatively impacted by the prospect of a rising-rate environment in the United States. Vornado was sold in June as the portfolio management team believed other opportunities offered better risk-reward profiles. Stock selection in the health care sector also hurt returns. Shares of medical device and drug maker Baxter International lagged peers after the company reported quarterly results. While earnings were broadly in line with estimates, revenues were lighter than expected. Some investors were also concerned about competition and potential market share loss for the company in the hemophilia space.

Lazard US Strategic Equity Portfolio

For the year ended December 31, 2013, the Lazard US Strategic Equity Portfolio’s Institutional Shares posted a total return of 28.38%, while Open Shares posted a total return of 28.04%, as compared with the 32.39% return for the S&P 500 Index.

A lack of exposure to utilities helped relative performance, as the sector was among the worst performers in the benchmark during the year. Stock selection and an underweight position in the consumer staples sector also helped returns. Shares of pharmacy health care provider CVS Caremark rose after the company reported solid quarterly earnings, driven broadly by strength in its Pharmacy Benefit Management and Pharmacy businesses.

Annual Report 3

In contrast, stock selection in the energy sector detracted from performance. Shares of offshore drilling contractor Transocean fell amid concerns over deteriorating pricing in its lower-quality rigs. Stock selection in the materials sector also hurt returns. Shares of metallurgical coal producer Walter Energy fell due to uncertainty in global steel markets. We sold our position in June as the portfolio management team believed other opportunities offered better risk-reward profiles.

Lazard US Mid Cap Equity Portfolio

For the year ended December 31, 2013, the Lazard US Mid Cap Equity Portfolio’s Institutional Shares posted a total return of 32.95%, while Open Shares posted a total return of 32.59%, as compared with the 34.76% return for the Russell Midcap^® Index.

Stock selection in the financials sector contributed to performance. Shares of exchange operator IntercontinentalExchange Group rose after the company announced that it had completed its acquisition of NYSE Euronext and management issued guidance for the newly combined company that exceeded expectations in the fourth quarter. Also in the financials sector, shares of diversified financial services provider Ameriprise Financial rose after the company reported strong quarterly results, driven broadly by solid performance in its Advice and Wealth Management businesses. We sold our position in the fourth quarter as the stock approached our price target. Stock selection and an underweight position in the utilities sector also helped returns. Shares of wind energy provider Pattern Energy Group rose as several sell-side firms initiated coverage with favorable ratings on the stock, following its initial public offering in late September. The company also announced the acquisition of two wind projects in December, which are expected to go into operation in late 2014. We sold our position in the fourth quarter as the stock approached our price target.

In contrast, stock selection in the industrials sector detracted from performance. Shares of mining equipment maker Joy Global lagged along with peers as slowing economic conditions and depressed commodities prices caused investor concerns. Shares of waste management company Republic Services lagged as investors were concerned about a weak pricing environment in the industry. We sold our position in the fourth quarter as the portfolio management team believed other opportunities offered better risk-reward profiles. Stock selection in the consumer discretionary sector also hurt

returns. Shares of clothing and apparel retailer American Eagle Outfitters fell after the company issued cautious guidance, citing a slow consumer demand environment and continued declines in customer traffic. We sold our position in the third quarter as the portfolio management team believed other opportunities offered better risk-reward profiles.

Lazard US Small-Mid Cap Equity Portfolio

For the year ended December 31, 2013, the Lazard US Small-Mid Cap Equity Portfolio’s Institutional Shares posted a total return of 35.81%, while Open Shares posted a total return of 35.47%, as compared with the 36.80% return for the Russell 2500^® Index.

For the year, stock selection in the industrials and health care sectors detracted from performance, while stock selection in the materials and financials sectors helped returns.

II-VI, a manufacturer of optical and optoelectronic devices for various uses, hurt performance in the industrials sector after it missed earnings expectations and cut guidance for fiscal 2013. We exited the position in II-VI in April. ACCO Brands, a manufacturer of office products, also posted weaker-than-expected quarterly earnings and detracted from returns. Holdings in Hub Group, a provider of intermodal, truck brokerage, and transportation logistics services, and Regal-Beloit, which manufactures motion, torque, and electrical products, also detracted from the Portfolio’s returns. Both positions were sold during the year.

The underperformance in the health care sector was mainly due to a position in Ariad Pharmaceuticals, a creator and developer of cancer medications. Shares of the company fell sharply after the US Food and Drug Administration temporarily suspended sales of its only drug, Iclusig, which was used by patients with certain types of leukemia. The position was sold on this news. Haemonetics, a designer and manufacturer of automated blood processing systems, also detracted from returns in the sector after it announced disappointing earnings and guidance in July. Additionally, the Portfolio was hurt by what it did not own in the health care sector, as the biotechnology industry performed very well during the year. We hold an underweight exposure to biotechnology, as many companies in the industry are micro cap and fundamentally do not often meet our investment criteria.

4 Annual Report

U.S. Silica Holdings, a producer of commercial silica used for fracking, outperformed in the materials sector. Shares of the company rallied due to a better-than-expected fourth-quarter 2012 and third-quarter 2013 earnings and after management provided solid guidance for 2013 and 2014. Another contributor in the materials sector was finisherstone manufacturer CaesarStone Sdot-Yam. Shares of the company rose after it solidly beat analysts’ earnings expectations for the second quarter and raised its guidance for the year. We exited the position in CaesarStone as it approached our valuation expectations.

Several positions in the financials sector helped performance for the year. American Equity Investment Life Holding, an underwriter of index and fixed-rate annuities, outperformed in the financials sector. Investors welcomed the news that the company had resumed plans for a bond sale in July—which were previously placed on hold when US interest rates spiked—and had also increased value of sale significantly. Shares of the company also rallied on stronger-than-expected third-quarter earnings results. Waddell & Reed Financial, an investment advisor, underwriter, and distributor for a family of mutual funds, added to returns after it reported better-than-expected quarterly revenues and earnings in October, as well as strong inflows to their funds. Shares of PacWest Bancorp, a provider of commercial banking services focused in California, also rose after announcing strong quarterly earnings in October.

Lazard International Equity Portfolio

For the year ended December 31, 2013, the Lazard International Equity Portfolio’s Institutional Shares posted a total return of 20.84%, while Open Shares posted a total return of 20.55%, as compared with the 22.78% return for the Morgan Stanley Capital International (MSCI^®) EAFE^® (Europe, Australasia, Far East) Index (the “EAFE Index”).

A below-benchmark weight and stock selection in the outperforming telecom services sector hurt the Portfolio. The Portfolio was also negatively impacted by the energy sector, as shares of seismic surveyors CGG (sold during the period) and Petroleum Geo-Services (PGS) declined following disappointing results. Additionally, French energy services provider Technip (also sold) detracted from overall returns after the company reported lower margins. Lastly, exposure to, and stock selection in, South Korea, the Philippines, and Turkey detracted from returns during the year.

In contrast, the strongest performers in the consumer discretionary sector were French auto parts supplier Valeo, amid the continued recovery in automobile sales, and German media company RTL Group. In the financials sector, British insurer Prudential was additive to returns amid continued strong growth in its Asian unit. Stock selection as well as a significant below-benchmark exposure to the materials sector was also additive to returns.

Lazard International Equity Select Portfolio

For the year ended December 31, 2013, the Lazard International Equity Select Portfolio’s Institutional Shares posted a total return of 14.93%, while Open Shares posted a total return of 14.48%, as compared with the 15.29% return for the MSCI ACWI^® ex-US (All Country World ex-US) Index.

Stock selection in the telecom services and energy sectors hurt the Portfolio. Shares of seismic surveyor PGS declined due to disappointing results, while shares of Turkish mobile provider Turkcell Iletisim Hizmetleri declined amid the unstable political environment and a weaker currency. Stock selection in the industrials sector detracted from returns as both Komatsu and Koc Holding underperformed.

Driven by stock selection, the financials sector helped performance, as one of the Portfolio’s strongest performers was British insurer Prudential amid continued strong growth in its Asian unit. In addition, British financial services company Lloyds Banking Group benefited from continued strong results that highlighted a decline in loan write-downs. Within the consumer discretionary sector, Macau casino operator Sands China performed well following results that highlighted consistent strong demand, while French auto parts supplier Valeo benefited from the continued recovery in automobile sales. Stock selection in, as well as a significant below-benchmark exposure to, the materials sector was also additive to returns.

Lazard International Strategic Equity Portfolio

For the year ended December 31, 2013, the Lazard International Strategic Equity Portfolio’s Institutional Shares posted a total return of 25.02%, while Open Shares posted a total return of 24.73%, as compared with the 22.78% return for the EAFE Index.

In the materials sector, strong profits from Amcor, James Hardie Industries, and Symrise contrasted with declining returns for mining companies. International Consolidated Air-

Annual Report 5

lines Group benefited from a more rational European airline industry, and Airbus Group continued to sell planes to Asian airlines while finally improving its profitability. The biggest contributor to performance was the consumer discretionary sector, driven by a mixture of improving sentiment toward domestic economies and strong results from Valeo, Sands China, Sky Deutschland, and Don Quijote Holdings. In the consumer staples sector, Associated British Foods had its discount retailer Primark materially re-valued by the market. In the financials sector, shares of Lloyds Banking Group rose with the improving UK economy, Sampo continued to exhibit its usual high degree of focus on shareholder returns, and Prudential had strong sales and profitability from its key Asian insurance operations.

The key drag on performance was the Portfolio’s exposure to emerging markets companies. While Philippine consumer conglomerate Alliance Global Group reported strong results, its peer LT Group was hurt by fierce competition in the tobacco and spirits sectors, and a falling rand hurt US dollar returns for holdings in South Africa. However, the main disappointment was the sharp, macro-induced fall of emerging-market financial stocks—namely, real estate agent LPS Brasil Consultoria de Imoveis in Brazil, Bank Mandiri in Indonesia, Security Bank in the Philippines, Kasikornbank in Thailand, and Turkiye Halk Bankasi in Turkey. The position in Bank Mandiri was sold during the period. Elsewhere, stock selection in the energy sector was weak all year as Technip, CGG, and Tullow Oil all reported disappointing results despite a resilient commodity price, and Caltex Australia was hurt by the falling Australian dollar. Positions in Technip and CGG were exited during the year. Getinge reported weak profits twice, and was sold during the period. In addition, the Portfolio was negatively affected by its low exposure to the strong telecom services sector.

Lazard International Small Cap Equity Portfolio

For the year ended December 31, 2013, the Lazard International Small Cap Equity Portfolio’s Institutional Shares posted a total return of 30.20%, while Open Shares posted a total return of 29.65%, as compared with the 29.30% return for the MSCI EAFE Small Cap^® Index.

From a sector perspective, stock selection in the industrials, financials, and consumer staples aided performance, while the energy, telecom services, and information technology sectors detracted from returns. On a regional basis, continental Europe and the United Kingdom aided Portfolio returns, while the emerging markets underperformed.

Biostime International Holdings, a China-based manufacturer of baby formula, was a top contributor during the period. Within China, sales of high-end baby formula continued to grow due to strong demand from rising incomes and health consciousness. The company delivered a strong set of results and an impressive dividend payout. We sold our position in the company as we believed the stock was fully valued.

Azimut Holding, an Italian-based asset manager, was another strong contributor during the period aided by the strong market conditions and advances in asset collection. This well-managed company has been able to innovate with new products over the years and provides an entrepreneurial culture which allows the company to retain its talent.

PGS, an oilfield service company primarily involved in geophysical and floating production services, detracted from performance during the period. The company provides a range of seismic and reservoir services and operates worldwide. The year proved difficult for PGS as seismic rates softened with the decline in oil prices and limited free-cash flow for the oil companies.

Ain Pharmaciez, an operator of dispensing pharmacies in Japan, also detracted from performance during the year. The Japanese market is highly fragmented with Ain possessing the largest market share at only 2%. The company’s profits slowed after recent government mandated drug price cuts. The government continues to focus on lowering medical costs and related measures that will reduce the competitiveness of smaller and weaker chains.

6 Annual Report

Notes to Investment Overviews:

All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolios may have been waived or reimbursed by Lazard Asset Management LLC, the Portfolio’s investment manager (the “Investment Manager”); 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, 2013; 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.

Annual Report 7

   The Lazard Funds, Inc. Performance Overviews

Lazard US Equity Concentrated Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2013

	One		Five		Since
	Year		Years		Inception†
Institutional Shares**	29.59	%	15.83	%	6.66	%
Open Shares**	29.21	%	15.49	%	6.36	%
S&P 500 Index	32.39	%	17.94	%	7.33	%
Russell 1000 Value/S&P 500 Linked Index	32.39	%	15.92	%	6.13	%

*	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 Bank and Trust Company, the Fund’s Administrator (“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 US 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 US 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.

8 Annual Report

Lazard US Strategic Equity Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2013

	One		Five		Since
	Year		Years		Inception†
Institutional Shares**	28.38	%	16.72	%	6.28	%
Open Shares**	28.04	%	16.37	%	5.97	%
S&P 500 Index	32.39	%	17.94	%	7.00	%

*	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 9

Lazard US Mid Cap Equity Portfolio

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

Average Annual Total Returns*

Years Ended December 31, 2013

	One		Five		Ten
	Year		Years		Years
Institutional Shares**	32.95	%	17.81	%	7.82	%
Open Shares**	32.59	%	17.51	%	7.52	%
Russell Midcap Index	34.76	%	22.36	%	10.22	%

*	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 US 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.

10 Annual Report

Lazard US Small-Mid Cap Equity Portfolio

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

Average Annual Total Returns*

Years Ended December 31, 2013

	One		Five		Ten
	Year		Years		Years
Institutional Shares**	35.81	%	22.14	%	8.91	%
Open Shares**	35.47	%	21.76	%	8.57	%
Russell 2500 Index	36.80	%	21.77	%	9.81	%
Russell 2000/2500 Linked Index	36.80	%	21.77	%	9.55	%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; 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 US 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 US companies included in the Russell 3000 Index (which consists of the 3,000 largest US 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 US 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 11

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, 2013

	One		Five		Ten
	Year		Years		Years
Institutional Shares**	20.84	%	13.23	%	7.39	%
Open Shares**	20.55	%	12.91	%	7.07	%
EAFE Index	22.78	%	12.44	%	6.91	%

*	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.

12 Annual Report

Lazard International Equity Select Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Equity Select Portfolio, MSCI ACWI^® ex-US Index and MSCI EAFE/ACWI ex-US Linked Index*

Average Annual Total Returns*

Years Ended December 31, 2013

	One		Five		Ten
	Year		Years		Years
Institutional Shares**	14.93	%	11.22	%	5.91	%
Open Shares**	14.48	%	10.89	%	5.59	%
MSCI ACWI ex-US Index	15.29	%	12.81	%	7.57	%
MSCI EAFE/ACWI ex-US Linked Index	15.29	%	10.68	%	6.07	%

*	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-US Index 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 MSCI EAFE/ACWI ex-US 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-US Index for all periods thereafter. The EAFE Index is a broadly diversified international index comprised of equity securities of approximately 1,000 companies located in developed countries outside the United States. The indices are unmanaged, have no fees or costs and are not available for investment.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report 13

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, 2013

	Institutional Shares						Open Shares
	One		Five		Since		One		Five		Since
	Year		Years		Inception†		Year		Years		Inception†
International Strategic Equity Portfolio**	25.02	%	15.59	%	8.20	%	24.73	%	15.27	%	6.23	%
EAFE Index	22.78	%	12.44	%	5.36	%	22.78	%	12.44	%	3.83	%

*	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.

14 Annual Report

Lazard International Small Cap Equity Portfolio

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

Average Annual Total Returns*

Years Ended December 31, 2013

	One		Five		Ten
	Year		Years		Years
Institutional Shares**	30.20	%	18.65	%	7.99	%
Open Shares**	29.65	%	18.31	%	7.69	%
MSCI EAFE Small Cap Index	29.30	%	18.50	%	9.48	%

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

Annual Report 15

   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, 2013 through December 31, 2013 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 7/1/13		Ending Account Value 12/31/13		Expenses Paid During Period* 7/1/13 - 12/31/13		Annualized Expense Ratio During Period 7/1/13 - 12/31/13
US Equity Concentrated
Institutional Shares
Actual	$	1,000.00	$	1,136.70	$	4.62		0.86	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.88	$	4.37		0.86	%
Open Shares
Actual	$	1,000.00	$	1,135.00	$	6.73		1.25	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.90	$	6.36		1.25	%
US Strategic Equity
Institutional Shares
Actual	$	1,000.00	$	1,143.50	$	4.05		0.75	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.42	$	3.82		0.75	%
Open Shares
Actual	$	1,000.00	$	1,141.90	$	5.67		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91	$	5.35		1.05	%

16 Annual Report

Portfolio	Beginning Account Value 7/1/13		Ending Account Value 12/31/13		Expenses Paid During Period* 7/1/13 - 12/31/13		Annualized Expense Ratio During Period 7/1/13 - 12/31/13
US Mid Cap Equity
Institutional Shares
Actual	$	1,000.00	$	1,160.80	$	5.72		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91	$	5.35		1.05	%
Open Shares
Actual	$	1,000.00	$	1,158.90	$	7.35		1.35	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.40	$	6.87		1.35	%
US Small-Mid Cap Equity
Institutional Shares
Actual	$	1,000.00	$	1,185.10	$	4.72		0.86	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.89	$	4.36		0.86	%
Open Shares
Actual	$	1,000.00	$	1,183.30	$	6.60		1.20	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.16	$	6.10		1.20	%
International Equity
Institutional Shares
Actual	$	1,000.00	$	1,175.00	$	5.13		0.94	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.49	$	4.77		0.94	%
Open Shares
Actual	$	1,000.00	$	1,174.10	$	6.68		1.22	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.06	$	6.20		1.22	%
International Equity Select
Institutional Shares
Actual	$	1,000.00	$	1,140.00	$	6.20		1.15	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.41	$	5.85		1.15	%
Open Shares
Actual	$	1,000.00	$	1,138.10	$	7.81		1.45	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.90	$	7.38		1.45	%
International Strategic Equity
Institutional Shares
Actual	$	1,000.00	$	1,166.60	$	4.88		0.89	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.70	$	4.55		0.89	%
Open Shares
Actual	$	1,000.00	$	1,165.30	$	6.10		1.12	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.57	$	5.69		1.12	%
International Small Cap Equity
Institutional Shares
Actual	$	1,000.00	$	1,205.70	$	6.28		1.13	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.51	$	5.75		1.13	%
Open Shares
Actual	$	1,000.00	$	1,202.50	$	7.94		1.43	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.00	$	7.27		1.43	%

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

Annual Report 17

   The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2013

Sector*	Lazard US Equity Concentrated Portfolio			Lazard US Strategic Equity Portfolio			Lazard US Mid Cap Equity Portfolio			Lazard US Small-Mid Cap Equity Portfolio			Lazard International Equity Portfolio
Consumer Discretionary		26.3	%		14.2	%		27.8	%		16.7	%		18.0	%
Consumer Staples		9.3			8.7			8.6			2.7			11.6
Energy		5.6			11.5			5.0			5.3			7.2
Financials		1.9			15.9			7.6			18.9			21.5
Health Care		28.9			17.8			15.6			7.5			11.7
Industrials		4.9			7.0			11.6			17.0			13.3
Information Technology		8.6			18.5			7.1			16.7			3.5
Materials		4.5			4.1			13.7			9.0			3.2
Telecommunication Services		—			1.0			—			—			2.8
Utilities		—			—			—			2.9			1.9
Short-Term Investments		10.0			1.3			3.0			3.3			5.3
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Sector*	Lazard International Equity Select Portfolio			Lazard International Strategic Equity Portfolio			Lazard International Small Cap Equity Portfolio			Lazard Global Equity Select Portfolio
Consumer Discretionary		14.2	%		22.2	%		19.1	%		9.8	%
Consumer Staples		12.1			13.1			3.1			8.4
Energy		6.0			3.6			3.9			11.2
Financials		19.9			19.9			23.0			14.5
Health Care		11.8			9.9			9.6			13.4
Industrials		12.9			13.7			16.2			14.0
Information Technology		10.0			—			12.4			21.5
Materials		3.4			9.3			5.7			4.1
Telecommunication Services		4.8			1.4			1.9			3.1
Utilities		1.5			1.1			1.0			—
Short-Term Investments		3.4			5.8			4.1			—
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

18 Annual Report

   The Lazard Funds, Inc. Portfolios of Investments December 31, 2013

Description	Shares		Value
Lazard US Equity Concentrated Portfolio
Common Stocks | 89.7%
Alcohol & Tobacco | 9.3%
Molson Coors Brewing Co., Class B		379,877	$	21,330,093
Commercial Services | 2.6%
LifeLock, Inc. (a)		358,110		5,876,585
Energy Services | 5.6%
Transocean, Ltd.		261,710		12,933,708
Health Services | 3.8%
Magellan Health Services, Inc. (a)		146,445		8,773,520
Leisure & Entertainment | 10.0%
Expedia, Inc.		89,160		6,210,886
Houghton Mifflin Harcourt Co.		217,850		3,694,736
Viacom, Inc., Class B		150,000		13,101,000
				23,006,622
Manufacturing | 4.8%
Tyco International, Ltd.		271,515		11,142,976
Medical Products | 12.0%
Baxter International, Inc.		161,550		11,235,802
CareFusion Corp. (a)		230,940		9,196,031
McKesson Corp.		44,525		7,186,335
				27,618,168
Metals & Mining | 4.5%
Silver Wheaton Corp.		190,595		3,848,113
U.S. Silica Holdings, Inc.		191,421		6,529,370
				10,377,483

Description	Shares		Value
Pharmaceutical & Biotechnology | 13.0%
Pfizer, Inc.		395,727	$	12,121,118
Zoetis, Inc.		547,836		17,908,759
				30,029,877
Real Estate | 1.9%
Lexington Realty Trust REIT		427,130		4,360,997
Retail | 13.7%
Advance Auto Parts, Inc.		219,623		24,307,874
American Eagle Outfitters, Inc.		326,270		4,698,288
J.C. Penney Co., Inc. (a)		288,380		2,638,677
				31,644,839
Technology Hardware | 8.5%
Apple, Inc.		12,330		6,918,486
Cisco Systems, Inc.		569,235		12,779,326
				19,697,812
Total Common Stocks (Identified cost $182,223,320)				206,792,680
Short-Term Investment | 10.0%
State Street Institutional Treasury Money Market Fund (Identified cost $23,087,206)		23,087,206		23,087,206
Total Investments | 99.7% (Identified cost $205,310,526) (b)			$	229,879,886
Cash and Other Assets in Excess of Liabilities | 0.3%				779,078
Net Assets | 100.0%			$	230,658,964

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

Annual Report 19

Description	Shares		Value
Lazard US Strategic Equity Portfolio
Common Stocks | 98.8%
Alcohol & Tobacco | 4.6%
Molson Coors Brewing Co., Class B		101,845	$	5,718,597
Banking | 3.1%
Bank of America Corp.		145,000		2,257,650
Regions Financial Corp.		162,125		1,603,416
				3,861,066
Cable Television | 1.9%
Comcast Corp., Class A		47,875		2,388,005
Chemicals | 2.1%
Eastman Chemical Co.		32,355		2,611,048
Commercial Services | 3.2%
Clean Harbors, Inc. (a)		11,750		704,530
Corrections Corp. of America		65,055		2,086,314
Republic Services, Inc.		33,900		1,125,480
				3,916,324
Computer Software | 2.2%
Check Point Software Technologies, Ltd. (a)		21,300		1,374,276
Microsoft Corp.		34,800		1,302,564
				2,676,840
Energy Exploration & Production | 3.6%
Apache Corp.		26,625		2,288,152
Devon Energy Corp.		35,025		2,166,997
				4,455,149
Energy Integrated | 3.6%
Chevron Corp.		14,150		1,767,476
Consol Energy, Inc.		72,425		2,755,047
				4,522,523
Energy Services | 4.3%
HollyFrontier Corp.		31,800		1,580,142
Transocean, Ltd.		75,035		3,708,230
				5,288,372
Financial Services | 9.0%
American Express Co.		31,750		2,880,678
Citigroup, Inc.		69,350		3,613,828
IntercontinentalExchange Group, Inc.		7,700		1,731,884
Morgan Stanley		40,175		1,259,888
Visa, Inc., Class A		7,500		1,670,100
				11,156,378

Description	Shares		Value
Food & Beverages | 1.5%
Sysco Corp.		49,590	$	1,790,199
Forest & Paper Products | 1.0%
International Paper Co.		25,300		1,240,459
Health Services | 1.0%
UnitedHealth Group, Inc.		15,975		1,202,918
Insurance | 1.5%
The Hartford Financial Services Group, Inc.		52,375		1,897,546
Leisure & Entertainment | 4.7%
Expedia, Inc.		20,595		1,434,648
Viacom, Inc., Class B		50,800		4,436,872
				5,871,520
Manufacturing | 6.1%
Carpenter Technology Corp.		10,420		648,124
Caterpillar, Inc.		6,900		626,589
Honeywell International, Inc.		16,968		1,550,366
Joy Global, Inc.		10,800		631,692
Terex Corp.		31,000		1,301,690
Tyco International, Ltd.		68,075		2,793,798
				7,552,259
Medical Products | 7.4%
Baxter International, Inc.		53,825		3,743,529
CareFusion Corp. (a)		77,125		3,071,117
McKesson Corp.		14,780		2,385,492
				9,200,138
Metals & Mining | 0.5%
U.S. Silica Holdings, Inc.		18,875		643,826
Pharmaceutical & Biotechnology | 9.4%
Gilead Sciences, Inc. (a)		36,525		2,744,854
Pfizer, Inc.		135,719		4,157,073
Zoetis, Inc.		146,319		4,783,168
				11,685,095
Real Estate | 1.9%
Lexington Realty Trust REIT		92,900		948,509
Vornado Realty Trust		15,750		1,398,443
				2,346,952

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

20 Annual Report

Description	Shares		Value
Lazard US Strategic Equity Portfolio (concluded)
Retail | 10.2%
Advance Auto Parts, Inc.		47,275	$	5,232,397
American Eagle Outfitters, Inc.		99,555		1,433,592
AutoZone, Inc. (a)		1,366		652,866
CVS Caremark Corp.		28,925		2,070,162
J.C. Penney Co., Inc. (a)		51,700		473,055
Kohl’s Corp.		3,700		209,975
Macy’s, Inc.		25,225		1,347,015
Wal-Mart Stores, Inc.		15,405		1,212,220
				12,631,282
Semiconductors & Components | 1.9%
Intel Corp.		49,325		1,280,477
Texas Instruments, Inc.		25,450		1,117,509
				2,397,986
Technology | 2.1%
Citrix Systems, Inc. (a)		13,000		822,250
Google, Inc., Class A (a)		1,525		1,709,083
				2,531,333
Technology Hardware | 11.0%
Apple, Inc.		6,395		3,588,298
Cisco Systems, Inc.		189,680		4,258,316
EMC Corp.		105,750		2,659,612
Hewlett-Packard Co.		23,375		654,033
Qualcomm, Inc.		33,750		2,505,938
				13,666,197

Description	Shares		Value
Telecommunications | 1.0%
CenturyLink, Inc.		38,400	$	1,223,040
Total Common Stocks (Identified cost $102,593,509)				122,475,052
Preferred Stock | 0.0%
Automotive | 0.0%
Better Place, Inc., Series B (Identified cost $453,501) (a), (c)		181,401		0
Short-Term Investment | 1.3%
State Street Institutional Treasury Money Market Fund (Identified cost $1,584,648)		1,584,648		1,584,648
Total Investments | 100.1% (Identified cost $104,631,658) (b)			$	124,059,700
Liabilities in Excess of Cash and Other Assets | (0.1)%				(86,486	)
Net Assets | 100.0%			$	123,973,214

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

Annual Report 21

Description	Shares		Value
Lazard US Mid Cap Equity Portfolio
Common Stocks | 89.2%
Alcohol & Tobacco | 7.9%
Molson Coors Brewing Co., Class B		63,925	$	3,589,389
Chemicals | 4.6%
Eastman Chemical Co.		25,725		2,076,008
Commercial Services | 5.7%
CoreLogic, Inc. (a)		60,400		2,146,012
LifeLock, Inc. (a)		26,900		441,429
				2,587,441
Computer Software | 1.8%
Web.com Group, Inc. (a)		25,300		804,287
Energy Services | 4.6%
Transocean, Ltd.		42,200		2,085,524
Financial Services | 4.5%
IntercontinentalExchange Group, Inc.		9,025		2,029,903
Forest & Paper Products | 5.0%
Crown Holdings, Inc. (a)		50,900		2,268,613
Health Services | 4.4%
Magellan Health Services, Inc. (a)		33,700		2,018,967
Insurance | 2.5%
The Hartford Financial Services Group, Inc.		31,375		1,136,716
Leisure & Entertainment | 4.8%
Expedia, Inc.		31,100		2,166,426
Manufacturing | 8.9%
Joy Global, Inc.		31,350		1,833,661
Tyco International, Ltd.		54,175		2,223,342
				4,057,003
Medical Products | 4.7%
CareFusion Corp. (a)		53,775		2,141,320

Description	Shares		Value
Metals & Mining | 3.0%
U.S. Silica Holdings, Inc.		40,225	$	1,372,075
Pharmaceutical & Biotechnology | 5.2%
Zoetis, Inc.		72,725		2,377,380
Retail | 19.9%
Advance Auto Parts, Inc.		30,160		3,338,109
Foot Locker, Inc.		54,400		2,254,336
Kohl’s Corp.		9,300		527,775
Macy’s, Inc.		38,875		2,075,925
Ross Stores, Inc.		10,875		814,864
				9,011,009
Transportation | 1.7%
XPO Logistics, Inc. (a)		29,400		772,927
Total Common Stocks (Identified cost $38,219,763)				40,494,988
Preferred Stock | 0.0%
Automotive | 0.0%
Better Place, Inc., Series B (Identified cost $1,307,499) (a), (c)		523,000		0
Short-Term Investment | 2.8%
State Street Institutional Treasury Money Market Fund (Identified cost $1,260,548)		1,260,548		1,260,548
Total Investments | 92.0% (Identified cost $40,787,810) (b)			$	41,755,536
Cash and Other Assets in Excess of Liabilities | 8.0%				3,618,120
Net Assets | 100.0%			$	45,373,656

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

22 Annual Report

Description	Shares		Value
Lazard US Small-Mid Cap Equity Portfolio
Common Stocks | 96.6%
Aerospace & Defense | 1.1%
B/E Aerospace, Inc. (a)		45,250	$	3,938,108
Alcohol & Tobacco | 1.7%
Molson Coors Brewing Co., Class B		112,850		6,336,528
Automotive | 1.8%
Modine Manufacturing Co. (a)		203,195		2,604,960
Tenneco, Inc. (a)		72,835		4,120,276
				6,725,236
Banking | 5.7%
East West Bancorp, Inc.		152,890		5,346,563
PacWest Bancorp		177,411		7,490,292
Signature Bank (a)		37,045		3,979,374
Wintrust Financial Corp.		91,173		4,204,899
				21,021,128
Chemicals | 3.5%
Rockwood Holdings, Inc.		58,155		4,182,508
Solazyme, Inc. (a)		376,380		4,098,778
Taminco Corp.		234,130		4,731,767
				13,013,053
Commercial Services | 3.6%
Blackhawk Network Holdings, Inc.		180,940		4,570,544
Clean Harbors, Inc. (a)		73,090		4,382,476
LifeLock, Inc. (a)		255,675		4,195,627
				13,148,647
Computer Software | 5.7%
Informatica Corp. (a)		64,970		2,696,255
j2 Global, Inc.		93,385		4,670,184
Red Hat, Inc. (a)		90,035		5,045,561
TIBCO Software, Inc. (a)		164,525		3,698,522
Web.com Group, Inc. (a)		150,610		4,787,892
				20,898,414
Construction & Engineering | 3.4%
EMCOR Group, Inc.		61,300		2,601,572
MasTec, Inc. (a)		161,065		5,270,047
Quanta Services, Inc. (a)		144,000		4,544,640
				12,416,259

Description	Shares		Value
Consumer Products | 4.5%
Elizabeth Arden, Inc. (a)		99,065	$	3,511,854
Fox Factory Holding Corp.		162,363		2,860,836
Hasbro, Inc.		91,200		5,016,912
Matthews International Corp., Class A		122,914		5,237,366
				16,626,968
Electric | 1.5%
TECO Energy, Inc.		325,230		5,606,965
Energy | 1.4%
Pattern Energy Group, Inc.		164,990		5,000,847
Energy Exploration & Production | 0.7%
Athlon Energy, Inc.		88,920		2,689,830
Energy Services | 3.5%
Dresser-Rand Group, Inc. (a)		58,050		3,461,522
Frank’s International NV		171,825		4,639,275
Key Energy Services, Inc. (a)		609,365		4,813,983
				12,914,780
Financial Services | 4.1%
Air Lease Corp.		174,315		5,417,710
Springleaf Holdings, Inc.		185,990		4,701,827
Waddell & Reed Financial, Inc., Class A		78,365		5,103,129
				15,222,666
Forest & Paper Products | 3.1%
KapStone Paper and Packaging Corp. (a)		46,550		2,600,283
Louisiana-Pacific Corp. (a)		194,740		3,604,638
Rock Tenn Co., Class A		29,795		3,128,773
Schweitzer-Mauduit International, Inc.		42,205		2,172,291
				11,505,985
Health Services | 2.0%
Brookdale Senior Living, Inc. (a)		132,500		3,601,350
Magellan Health Services, Inc. (a)		60,030		3,596,397
				7,197,747
Housing | 2.0%
Norcraft Cos., Inc.		173,575		3,405,541
Taylor Morrison Home Corp., Class A		177,615		3,987,457
				7,392,998
Insurance | 5.6%
American Equity Investment Life Holding Co.		274,175		7,232,737
Arch Capital Group, Ltd. (a)		62,305		3,718,985
HCC Insurance Holdings, Inc.		80,725		3,724,652
Reinsurance Group of America, Inc.		77,625		6,008,951
				20,685,325

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

Annual Report 23

Description	Shares		Value
Lazard US Small-Mid Cap Equity Portfolio (concluded)
Leisure & Entertainment | 3.9%
Bally Technologies, Inc. (a)		54,790	$	4,298,276
Diamond Resorts International, Inc.		239,145		4,414,617
Hyatt Hotels Corp., Class A (a)		117,075		5,790,529
				14,503,422
Manufacturing | 9.9%
ACCO Brands Corp. (a)		683,120		4,590,566
Actuant Corp., Class A		94,115		3,448,374
Altra Industrial Motion Corp.		42,040		1,438,609
Carpenter Technology Corp.		41,050		2,553,310
FLIR Systems, Inc.		181,265		5,456,076
Kennametal, Inc.		78,182		4,070,937
Littelfuse, Inc.		37,975		3,529,017
The Toro Co.		73,500		4,674,600
TriMas Corp. (a)		116,310		4,639,606
Woodward, Inc.		43,680		1,992,245
				36,393,340
Medical Products | 3.4%
CareFusion Corp. (a)		165,215		6,578,861
Haemonetics Corp. (a)		83,900		3,534,707
Sirona Dental Systems, Inc. (a)		36,700		2,576,340
				12,689,908
Metal & Glass Containers | 1.6%
Owens-Illinois, Inc. (a)		166,775		5,967,210
Metals & Mining | 1.2%
U.S. Silica Holdings, Inc.		126,353		4,309,901
Pharmaceutical & Biotechnology | 2.1%
Intrexon Corp.		102,185		2,432,003
Quintiles Transnational Holdings, Inc.		111,980		5,189,153
				7,621,156
Real Estate | 4.9%
Extra Space Storage, Inc. REIT		147,920		6,231,869
Jones Lang LaSalle, Inc.		57,925		5,930,941
Kilroy Realty Corp. REIT		114,895		5,765,431
				17,928,241
Retail | 5.2%
Advance Auto Parts, Inc.		57,195		6,330,343
American Eagle Outfitters, Inc.		135,140		1,946,016
Chico’s FAS, Inc.		119,255		2,246,764
Francesca’s Holdings Corp. (a)		233,515		4,299,011
Iconix Brand Group, Inc. (a)		104,650		4,154,605
				18,976,739

Description	Shares		Value
Semiconductors & Components | 2.5%
ON Semiconductor Corp. (a)		467,055	$	3,848,533
Xilinx, Inc.		116,665		5,357,257
				9,205,790
Technology | 2.7%
NetScout Systems, Inc. (a)		204,160		6,041,094
SS&C Technologies Holdings, Inc. (a)		88,514		3,917,630
				9,958,724
Technology Hardware | 2.1%
InterDigital, Inc.		96,160		2,835,758
Synaptics, Inc. (a)		92,765		4,806,155
				7,641,913
Transportation | 2.2%
Alaska Air Group, Inc.		57,150		4,193,096
Echo Global Logistics, Inc. (a)		183,553		3,942,718
				8,135,814
Total Common Stocks (Identified cost $291,552,335)				355,673,642
Preferred Stock | 0.0%
Automotive | 0.0%
Better Place, Inc., Series B (Identified cost $452,901) (a), (c)		181,161		0

Description	Principal Amount (000)		Value
Repurchase Agreement | 3.3%
State Street Bank and Trust Co., 0.00%, 01/02/14 (Dated 12/31/13, collateralized by $11,675,000 United States Treasury Note, 3.25%, 12/31/16, with a value of $12,521,438) Proceeds of $12,271,000 (Identified cost $12,271,000)	$	12,271	$	12,271,000
Total Investments | 99.9% (Identified cost $304,276,236) (b)			$	367,944,642
Cash and Other Assets in Excess of Liabilities | 0.1%				285,587
Net Assets | 100.0%			$	368,230,229

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

24 Annual Report

Description	Shares		Value
Lazard International Equity Portfolio
Common Stocks | 94.9%
Australia | 1.9%
Ansell, Ltd.		103,279	$	1,906,143
James Hardie Industries PLC		203,695		2,353,518
				4,259,661
Austria | 0.9%
UNIQA Insurance Group AG		154,271		1,969,287
Belgium | 2.5%
Anheuser-Busch InBev NV		52,757		5,607,359
Bermuda | 0.8%
Signet Jewelers, Ltd.		24,502		1,935,181
Brazil | 1.0%
Estacio Participacoes SA		263,700		2,281,283
Canada | 2.7%
MacDonald Dettwiler & Associates, Ltd.		33,500		2,595,482
Rogers Communications, Inc., Class B		77,400		3,502,582
				6,098,064
Denmark | 1.0%
Carlsberg A/S, Class B		20,195		2,234,475
Finland | 1.8%
Sampo Oyj, A Shares		83,627		4,109,429
France | 10.5%
BNP Paribas SA		79,519		6,197,183
Cap Gemini SA		40,157		2,714,136
European Aeronautic Defence and Space Co. NV		49,281		3,783,686
Sanofi SA		57,420		6,091,914
Valeo SA		45,564		5,041,543
				23,828,462
Germany | 7.7%
Bayer AG		44,695		6,268,588
Bayerische Motoren Werke AG		35,277		4,135,773
Merck KGaA		22,656		4,059,612
RTL Group SA		24,013		3,102,946
				17,566,919

Description	Shares		Value
Greece | 0.6%
Piraeus Bank SA (a)		704,765	$	1,483,403
Ireland | 0.9%
Ryanair Holdings PLC Sponsored ADR (a)		42,600		1,999,218
Italy | 2.6%
Atlantia S.p.A.		131,447		2,949,363
Eni S.p.A.		126,316		3,039,287
				5,988,650
Japan | 18.5%
AEON Financial Service Co., Ltd.		59,500		1,593,296
Asahi Group Holdings, Ltd.		147,600		4,154,272
Asics Corp.		170,090		2,899,170
Daikin Industries, Ltd.		42,600		2,649,606
Daiwa House Industry Co., Ltd.		154,000		2,975,881
Don Quijote Holdings Co., Ltd.		65,300		3,949,872
Japan Tobacco, Inc.		99,700		3,237,812
KDDI Corp.		48,400		2,973,583
LIXIL Group Corp.		129,400		3,542,495
Makita Corp.		33,200		1,740,234
Seven & I Holdings Co., Ltd.		85,200		3,381,787
Sumitomo Mitsui Financial Group, Inc.		120,500		6,201,785
Yahoo Japan Corp.		491,700		2,731,407
				42,031,200
Norway | 0.7%
Petroleum Geo-Services ASA		128,308		1,511,484
Philippines | 1.7%
Alliance Global Group, Inc.		6,064,200		3,525,181
LT Group, Inc.		923,100		321,133
				3,846,314
South Korea | 1.1%
Samsung Electronics Co., Ltd. GDR		3,863		2,522,539
Spain | 2.8%
Mediaset Espana Comunicacion SA (a)		175,868		2,029,647
Red Electrica Corporacion SA		65,087		4,342,697
				6,372,344
Sweden | 2.8%
Assa Abloy AB, Class B		58,154		3,072,324
Swedbank AB, A Shares		118,164		3,325,277
				6,397,601

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

Annual Report 25

Description	Shares		Value
Lazard International Equity Portfolio (concluded)
Switzerland | 7.9%
GAM Holding AG		157,402	$	3,061,403
Glencore Xstrata PLC		683,979		3,541,750
Novartis AG		104,082		8,307,425
Swatch Group AG		4,668		3,084,789
				17,995,367
Thailand | 0.5%
Krung Thai Bank Public Co. Ltd. (d)		2,488,600		1,249,601
Turkey | 0.4%
Koc Holding AS		218,831		896,097
United Kingdom | 23.6%
BG Group PLC		92,225		1,981,542
British American Tobacco PLC		72,734		3,899,972
Direct Line Insurance Group PLC		749,137		3,096,371
Informa PLC		519,705		4,935,572
International Consolidated Airlines Group SA (a)		537,369		3,571,883
Ladbrokes PLC		565,031		1,673,901
Lloyds Banking Group PLC (a)		3,964,108		5,177,971
Prudential PLC		261,561		5,803,968
Reed Elsevier PLC		241,373		3,593,317
Rexam PLC		554,717		4,873,086
Royal Dutch Shell PLC, A Shares		173,835		6,226,456
Standard Chartered PLC		128,121		2,885,403
Taylor Wimpey PLC		1,341,566		2,477,046
Unilever PLC		88,014		3,617,435
				53,813,923
Total Common Stocks (Identified cost $170,373,679)				215,997,861

Description	Principal Amount (000)		Value
Repurchase Agreement | 5.3%
State Street Bank and Trust Co., 0.00%, 01/02/14 (Dated 12/31/13, collateralized by $11,450,000 United States Treasury Note, 3.25%, 12/31/16, with a value of $12,280,125) Proceeds of $12,039,000 (Identified cost $12,039,000)	$	12,039	$	12,039,000
Total Investments | 100.2% (Identified cost $182,412,679) (b)			$	228,036,861
Liabilities in Excess of Cash and
Other Assets | (0.2)%				(468,046	)
Net Assets | 100.0%			$	227,568,815

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

26 Annual Report

Description	Shares		Value
Lazard International Equity Select Portfolio
Common Stocks | 96.4%
Australia | 1.5%
BHP Billiton, Ltd.		10,289	$	349,016
Belgium | 2.6%
Anheuser-Busch InBev NV		5,525		587,233
Bermuda | 1.1%
Signet Jewelers, Ltd.		3,274		258,582
Brazil | 3.4%
BB Seguridade Participacoes SA		24,400		253,386
Cielo SA		10,218		284,332
Estacio Participacoes SA		27,700		239,634
				777,352
China | 3.7%
Baidu, Inc. Sponsored ADR (a)		1,400		249,032
China Construction Bank Corp., Class H		501,000		377,964
China Shenhua Energy Co., Ltd., Class H		68,000		214,849
				841,845
Denmark | 3.6%
Carlsberg A/S, Class B		1,896		209,783
Novo Nordisk A/S, Class B		3,253		596,281
				806,064
Finland | 1.5%
Sampo Oyj, A Shares		7,053		346,584
France | 7.6%
BNP Paribas SA		6,683		520,829
European Aeronautic Defence and Space Co. NV		3,978		305,422
Sanofi SA		4,349		461,402
Valeo SA		3,899		431,415
				1,719,068
Germany | 7.3%
Bayer AG		4,216		591,305
Bayerische Motoren Werke AG		3,966		464,962
SAP AG		7,067		605,782
				1,662,049
Hong Kong | 1.4%
China Mobile, Ltd. Sponsored ADR		5,937		310,446

Description	Shares		Value
Indonesia | 1.1%
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		7,119	$	255,216
Ireland | 1.2%
Ryanair Holdings PLC Sponsored ADR (a)		5,995		281,345
Italy | 3.9%
Atlantia S.p.A.		17,326		388,755
Eni S.p.A.		9,569		230,240
Mediolanum S.p.A.		31,240		270,754
				889,749
Japan | 14.2%
Asahi Group Holdings, Ltd.		11,500		323,673
Daiwa House Industry Co., Ltd.		16,000		309,182
Japan Tobacco, Inc.		6,000		194,853
Komatsu, Ltd.		9,100		184,662
LIXIL Group Corp.		11,900		325,778
Makita Corp.		6,100		319,742
Ryohin Keikaku Co., Ltd.		1,200		129,560
Seven & I Holdings Co., Ltd.		10,917		433,321
Sumitomo Mitsui Financial Group, Inc.		9,976		513,436
Sumitomo Mitsui Trust Holdings, Inc.		34,000		178,862
Yahoo Japan Corp.		55,800		309,971
				3,223,040
Macau | 2.3%
Sands China, Ltd.		64,200		526,562
Norway | 0.8%
Petroleum Geo-Services ASA		14,588		171,848
Philippines | 1.8%
Alliance Global Group, Inc.		524,900		305,130
LT Group, Inc.		265,300		92,294
				397,424
Russia | 2.1%
Mobile TeleSystems OJSC Sponsored ADR		12,461		269,531
Sberbank of Russia (d)		68,841		211,498
				481,029
South Africa | 1.8%
Mediclinic International, Ltd.		32,624		236,361
Mr Price Group, Ltd.		9,790		152,814
Nampak, Ltd.		2,890		11,295
				400,470

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

Annual Report 27

Description	Shares		Value
Lazard International Equity Select Portfolio (concluded)
South Korea | 1.6%
Samsung Electronics Co., Ltd.		269	$	349,711
Spain | 1.5%
Red Electrica Corporacion SA		5,087		339,412
Sweden | 2.8%
Assa Abloy AB, Class B		7,352		388,413
Swedbank AB, A Shares		8,911		250,766
				639,179
Switzerland | 5.7%
Cie Financiere Richemont SA		2,759		274,648
Novartis AG		9,714		775,334
Swatch Group AG		355		234,597
				1,284,579
Taiwan | 2.1%
Taiwan Semiconductor Manufacturing Co., Ltd.		133,341		472,008
Thailand | 0.7%
Kasikornbank Public Co. Ltd.		31,200		150,493
Turkey | 1.8%
Koc Holding AS		33,748		138,196
Turkcell Iletisim Hizmetleri AS (a)		49,509		261,483
				399,679

Description	Shares		Value
United Kingdom | 17.3%
Associated British Foods PLC		6,479	$	262,322
BG Group PLC		11,342		243,694
British American Tobacco PLC		4,142		222,093
Informa PLC		41,222		391,480
Ladbrokes PLC		33,384		98,900
Lloyds Banking Group PLC (a)		263,835		344,625
Prudential PLC		34,345		762,106
Rexam PLC		46,052		404,558
Royal Dutch Shell PLC, A Shares		10,315		367,601
Tullow Oil PLC		8,974		127,057
Unilever PLC		9,877		405,951
Wolseley PLC		5,039		285,793
				3,916,180
Total Common Stocks (Identified cost $18,711,502)				21,836,163
Short-Term Investment | 3.4%
State Street Institutional Treasury Money Market Fund (Identified cost $766,455)		766,455		766,455
Total Investments | 99.8% (Identified cost $19,477,957) (b)			$	22,602,618
Cash and Other Assets in Excess of Liabilities | 0.2%				53,500
Net Assets | 100.0%			$	22,656,118

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

28 Annual Report

Description	Shares		Value
Lazard International Strategic Equity Portfolio
Common Stocks | 94.1%
Australia | 7.4%
Amcor, Ltd.		7,665,814	$	72,212,712
Ansell, Ltd.		3,940,223		72,721,729
Caltex Australia, Ltd.		2,294,771		41,082,479
James Hardie Industries PLC		3,995,126		46,160,199
Orora, Ltd. (a)		6,608,451		6,844,797
				239,021,916
Austria | 1.0%
UNIQA Insurance Group AG		2,600,429		33,194,774
Belgium | 2.1%
Anheuser-Busch InBev NV		625,203		66,450,659
Bermuda | 0.9%
Signet Jewelers, Ltd.		379,466		29,970,426
Brazil | 1.7%
Estacio Participacoes SA		4,520,600		39,107,956
LPS Brasil Consultoria de Imoveis SA		2,603,000		15,931,894
				55,039,850
Canada | 1.4%
Home Capital Group, Inc.		577,811		44,021,882
Denmark | 1.6%
Carlsberg A/S, Class B		467,482		51,724,531
Finland | 3.6%
Sampo Oyj, A Shares		2,381,791		117,041,166
France | 6.8%
BNP Paribas SA		1,295,153		100,935,637
European Aeronautic Defence and Space Co. NV		910,383		69,897,187
Valeo SA		442,299		48,939,279
				219,772,103
Germany | 5.4%
Bayer AG		566,335		79,429,928
Fresenius SE & Co. KGaA		254,954		39,142,590
Sky Deutschland AG (a)		479,358		5,275,620
Symrise AG		1,131,639		52,152,635
				176,000,773

Description	Shares		Value
Greece | 0.9%
Piraeus Bank SA (a)		13,538,644	$	28,496,409
Indonesia | 0.4%
PT Media Nusantara Citra Tbk		64,568,000		13,926,951
Ireland | 1.7%
Kerry Group PLC, Class A		741,629		51,523,057
Ryanair Holdings PLC Sponsored ADR (a)		41,530		1,949,003
				53,472,060
Italy | 1.2%
Mediaset S.p.A. (a)		7,867,700		37,298,091
Japan | 14.6%
AEON Financial Service Co., Ltd.		1,693,200		45,340,651
Asics Corp.		3,283,150		55,961,013
Daikin Industries, Ltd.		795,800		49,496,629
Don Quijote Holdings Co., Ltd.		1,557,900		94,234,384
Japan Tobacco, Inc.		1,425,400		46,290,647
KDDI Corp.		743,500		45,678,900
Makita Corp.		1,426,300		74,761,903
Park24 Co., Ltd.		1,664,400		31,340,853
Ryohin Keikaku Co., Ltd.		257,600		27,812,287
				470,917,267
Macau | 2.2%
Sands China, Ltd.		8,656,400		70,998,935
Malaysia | 1.1%
Tenaga Nasional Berhad		10,214,400		35,487,673
Philippines | 3.0%
Alliance Global Group, Inc.		77,983,600		45,332,662
GT Capital Holdings, Inc.		1,461,470		25,421,165
LT Group, Inc.		39,937,100		13,893,513
Security Bank Corp.		4,590,120		11,955,565
				96,602,905
South Africa | 3.0%
Mediclinic International, Ltd.		6,874,707		49,807,219
Nampak, Ltd.		11,908,701		46,544,971
				96,352,190
Spain | 1.0%
Mediaset Espana Comunicacion SA (a)		2,771,027		31,979,708

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

Annual Report 29

Description	Shares		Value
Lazard International Strategic Equity Portfolio (concluded)
Sweden | 1.8%
Assa Abloy AB, Class B		1,112,501	$	58,774,356
Switzerland | 7.7%
Cie Financiere Richemont SA		434,344		43,237,203
GAM Holding AG		2,698,864		52,491,778
Novartis AG		1,035,177		82,623,847
Panalpina Welttransport Holding AG		203,659		34,131,518
Swatch Group AG		53,864		35,595,345
				248,079,691
Thailand | 0.7%
Kasikornbank Public Co. Ltd.		4,716,800		22,751,455
Turkey | 0.5%
Turkiye Halk Bankasi AS		2,626,677		14,850,687
United Kingdom | 22.4%
AMEC PLC		2,206,784		39,759,043
Associated British Foods PLC		1,879,401		76,093,141
British American Tobacco PLC		1,279,787		68,621,742
Informa PLC		10,864,825		103,181,860
International Consolidated Airlines Group SA (a)		12,648,734		84,075,919
Lloyds Banking Group PLC (a)		43,063,362		56,249,936
Pearson PLC		1,803,378		40,046,332

Description	Shares		Value
Prudential PLC		3,719,383	$	82,532,100
Rexam PLC		9,343,747		82,083,082
Tullow Oil PLC		2,573,111		36,431,062
Unilever PLC		1,283,048		52,734,141
				721,808,358
Total Common Stocks (Identified cost $2,529,323,409)				3,034,034,816
Preferred Stock | 1.6%
Germany | 1.6%
Volkswagen AG (Identified cost $46,807,048)		177,997		49,990,284
Short-Term Investment | 5.9%
State Street Institutional Treasury Money Market Fund (Identified cost $189,841,465)		189,841,465		189,841,465
Total Investments | 101.6% (Identified cost $2,765,971,922) (b)			$	3,273,866,565
Liabilities in Excess of Cash and Other Assets | (1.6)%				(51,068,506	)
Net Assets | 100.0%			$	3,222,798,059

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

30 Annual Report

Description	Shares		Value
Lazard International Small Cap Equity Portfolio
Common Stocks | 94.6%
Australia | 7.3%
ALS Ltd.		77,769	$	611,766
Ansell, Ltd.		43,857		809,436
iSelect, Ltd.		434,610		560,751
James Hardie Industries PLC		67,581		780,839
M2 Telecommunications Group, Ltd.		110,432		618,252
Macquarie Atlas Roads Group		304,861		748,579
Pact Group Holdings, Ltd.		193,700		567,292
Super Retail Group, Ltd.		41,338		490,543
				5,187,458
Austria | 3.0%
AMS AG		7,564		915,769
Kapsch TrafficCom AG		9,843		548,411
UNIQA Insurance Group AG		52,839		674,496
				2,138,676
Belgium | 2.9%
Arseus NV		24,904		946,958
Kinepolis Group NV		7,168		1,135,003
				2,081,961
Brazil | 0.9%
Brasil Insurance Participacoes e Administracao SA		86,300		667,575
Canada | 0.8%
Alaris Royalty Corp.		21,300		598,947
China | 1.3%
Greatview Aseptic Packaging Co., Ltd.		972,000		574,102
Prince Frog International Holdings, Ltd.		880,000		362,019
				936,121
Denmark | 0.9%
Auriga Industries A/S, Class B (a)		19,086		652,889
France | 2.8%
Ingenico SA		12,857		1,030,820
Valeo SA		9,055		1,001,913
				2,032,733

Description	Shares		Value
Germany | 9.3%
Aurelius AG		24,408	$	990,553
CompuGroup Medical AG		44,868		1,141,910
CTS Eventim AG		19,719		998,560
Freenet AG		25,170		754,162
NORMA Group SE		19,261		956,157
SHW AG		10,186		651,108
Wirecard AG		27,849		1,100,125
				6,592,575
Indonesia | 0.8%
PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk		7,751,000		566,836
Ireland | 1.4%
Greencore Group PLC		262,541		969,503
Israel | 0.5%
Kamada (a)		25,000		371,750
Italy | 4.2%
Azimut Holding S.p.A.		59,428		1,621,203
EI Towers S.p.A.		16,897		777,552
Mediolanum S.p.A.		73,005		632,727
				3,031,482
Japan | 22.8%
Ain Pharmaciez, Inc.		18,000		883,677
Anritsu Corp.		61,300		673,479
Asahi Co., Ltd.		46,600		649,594
Avex Group Holdings, Inc.		29,700		637,375
Don Quijote Holdings Co., Ltd.		14,800		895,224
Doshisha Co., Ltd.		53,200		748,670
JAFCO Co., Ltd.		23,700		1,287,285
Misumi Group, Inc.		29,900		938,368
NuFlare Technology, Inc.		5,800		719,286
Park24 Co., Ltd.		36,300		683,533
Rinnai Corp.		9,900		769,927
Santen Pharmaceutical Co., Ltd.		15,590		726,132
Ship Healthcare Holdings, Inc.		22,300		865,022
Suruga Bank, Ltd.		69,300		1,241,096
Tamron Co., Ltd.		30,900		748,806
Topcon Corp.		59,600		903,253
USS Co., Ltd.		74,100		1,016,052
Wacom Co., Ltd.		110,122		771,722
Yumeshin Holdings Co., Ltd.		100,400		1,085,895
				16,244,396

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

Annual Report 31

Description	Shares		Value
Lazard International Small Cap Equity Portfolio (concluded)
Netherlands | 2.7%
Aalberts Industries NV		33,532	$	1,069,062
Frank’s International NV		30,800		831,600
				1,900,662
Norway | 2.2%
Kongsberg Gruppen ASA		41,435		871,014
Petroleum Geo-Services ASA		56,574		666,449
				1,537,463
Russia | 1.0%
Globaltrans Investment PLC
Sponsored GDR		43,266		687,929
Singapore | 1.1%
XP Power, Ltd.		29,699		781,471
Sweden | 3.2%
Indutrade AB		15,131		631,650
Intrum Justitia AB		30,403		850,850
Loomis AB, B Shares		33,366		791,112
				2,273,612
Switzerland | 1.9%
Cembra Money Bank AG		8,149		534,862
GAM Holding AG		42,121		819,236
				1,354,098
Taiwan | 1.8%
Makalot Industrial Co., Ltd.		115,000		621,236
Radiant Opto-Electronics Corp.		173,920		636,075
				1,257,311
Turkey | 0.7%
Turkiye Sinai Kalkinma Bankasi AS		557,889		475,075
United Kingdom | 21.1%
Abcam PLC		78,233		636,090
Aberdeen Asset Management PLC		113,942		943,411
APR Energy PLC		45,878		721,731
Ashtead Group PLC		70,958		893,022
Dignity PLC		34,779		829,329
Direct Line Insurance Group PLC		209,942		867,743

Description	Shares		Value
Elementis PLC		154,929	$	689,875
Hansteen Holdings PLC REIT		452,071		809,993
Hunting PLC		59,049		762,701
IG Group Holdings PLC		134,558		1,372,579
John Wood Group PLC		44,078		500,718
Provident Financial PLC		26,471		711,875
Rightmove PLC		24,964		1,132,692
RPC Group PLC		82,548		806,503
Spectris PLC		19,517		827,694
Synergy Health PLC		36,682		730,745
Taylor Wimpey PLC		442,804		817,586
Workspace Group PLC REIT		106,616		932,188
				14,986,475
Total Common Stocks (Identified cost $50,057,051)				67,326,998
Preferred Stocks | 1.9%
Brazil | 1.0%
Banco ABC Brasil SA		132,118		707,840
Germany | 0.9%
Sartorius AG		5,372		639,405
Total Preferred Stocks (Identified cost $1,362,363)				1,347,245
Short-Term Investment | 4.1%
State Street Institutional Treasury Money Market Fund (Identified cost $2,902,953)		2,902,953		2,902,953
Total Investments | 100.6% (Identified cost $54,322,367) (b)			$	71,577,196
Liabilities in Excess of Cash and Other Assets | (0.6)%				(430,354	)
Net Assets | 100.0%			$	71,146,842

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

32 Annual Report

Description	Shares		Value
Lazard Global Equity Select Portfolio
Common Stocks | 75.5%
Belgium | 2.7%
Anheuser-Busch InBev NV		509	$	54,100
Canada | 0.4%
MacDonald Dettwiler & Associates, Ltd.		100		7,748
China | 1.9%
Baidu, Inc. Sponsored ADR (a)		100		17,788
China Shenhua Energy Co., Ltd., Class H		6,500		20,537
				38,325
Indonesia | 0.3%
PT Telekomunikasi Indonesia (Persero) Tbk
Sponsored ADR		200		7,170
Ireland | 2.0%
Eaton Corp. PLC		300		22,836
Experian PLC		966		17,820
				40,656
Peru | 1.0%
Credicorp, Ltd.		150		19,910
Russia | 3.1%
Magnit OJSC Sponsored GDR		139		9,202
Mobile TeleSystems OJSC Sponsored ADR		1,000		21,630
Sberbank of Russia Sponsored ADR		2,421		30,456
				61,288
South Africa | 1.3%
Life Healthcare Group Holdings Pte, Ltd.		6,399		25,535
Taiwan | 0.8%
Taiwan Semiconductor Manufacturing Co.,
Ltd. Sponsored ADR		900		15,696
United Kingdom | 3.5%
International Consolidated Airlines
Group SA (a)		4,419		29,373
Rexam PLC		2,577		22,638
Vodafone Group PLC		4,630		18,171
				70,182
United States | 58.5%
American Express Co.		500		45,365
Apple, Inc.		143		80,239

Description	Shares		Value
AutoZone, Inc. (a)		55	$	26,287
Bristol-Myers Squibb Co.		400		21,260
Chevron Corp.		500		62,455
Citigroup, Inc.		1,000		52,110
Comcast Corp., Class A		600		29,928
Consol Energy, Inc.		800		30,432
CVS Caremark Corp.		500		35,785
Dover Corp.		200		19,308
Eastman Chemical Co.		200		16,140
EMC Corp.		1,100		27,665
Google, Inc., Class A (a)		38		42,587
Honeywell International, Inc.		500		45,685
Intel Corp.		1,100		28,556
IntercontinentalExchange Group, Inc.		100		22,492
Joy Global, Inc.		400		23,396
Macy’s, Inc.		400		21,360
MasterCard, Inc., Class A		38		31,747
McKesson Corp.		250		40,350
Molson Coors Brewing Co., Class B		500		28,075
Monsanto Co.		200		23,310
Peabody Energy Corp.		1,000		19,530
Pfizer, Inc.		1,400		42,882
Qualcomm, Inc.		400		29,700
Realogy Holdings Corp. (a)		200		9,894
Ross Stores, Inc.		300		22,479
Schlumberger, Ltd.		400		36,044
The Hartford Financial Services Group, Inc.		1,100		39,853
TIBCO Software, Inc. (a)		300		6,744
United Technologies Corp.		400		45,520
UnitedHealth Group, Inc.		400		30,120
Vertex Pharmaceuticals, Inc. (a)		300		22,290
Viacom, Inc., Class B		560		48,910
Visa, Inc., Class A		200		44,536
Zoetis, Inc.		600		19,614
				1,172,648
Total Common Stocks (Identified cost $1,510,115)				1,513,258
Total Investments | 75.5% (Identified cost $1,510,115) (b)			$	1,513,258
Cash and Other Assets in Excess of Liabilities | 24.5%				490,009
Net Assets | 100.0%			$	2,003,267

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

Annual Report 33

   The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2013

(a) Non-income producing security.

(b) For federal income tax purposes, the aggregate cost, aggregate gross unrealized appreciation, aggregate gross unrealized depreciation and the net unrealized appreciation are as follows:

Portfolio	Aggregate Cost		Aggregate Gross Unrealized Appreciation		Aggregate Gross Unrealized Depreciation		Net Unrealized Appreciation
US Equity Concentrated	$	205,472,358	$	28,403,203	$	3,995,675	$	24,407,528
US Strategic Equity		105,011,208		20,807,966		1,759,474		19,048,492
US Mid Cap Equity		40,813,813		2,302,740		1,361,017		941,723
US Small-Mid Cap Equity		304,333,007		65,958,797		2,347,162		63,611,635
International Equity		182,638,999		47,012,520		1,614,658		45,397,862
International Equity Select		19,536,085		3,426,929		360,396		3,066,533
International Strategic Equity		2,767,899,055		546,927,439		40,285,802		506,641,637
International Small Cap Equity		56,270,201		17,499,462		2,192,467		15,306,995
Global Equity Select		1,510,115		5,324		2,181		3,143

(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.

Security Abbreviations:

ADR — American Depositary Receipt

GDR — Global Depositary Receipt

REIT — Real Estate Investment Trust

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

34 Annual Report

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

Industry	Lazard International Equity Portfolio			Lazard International Equity Select Portfolio			Lazard International Strategic Equity Portfolio			Lazard International Small Cap Equity Portfolio			Lazard Global Equity Select Portfolio
Agriculture		—	%		—	%		—	%		0.9	%		1.2	%
Alcohol & Tobacco		8.5			7.2			7.7			—			4.1
Automotive		4.0			3.9			3.1			2.3			—
Banking		9.4			9.7			6.9			3.5			2.5
Cable Television		—			—			0.2			—			1.5
Chemicals		—			—			1.6			2.0			0.8
Commercial Services		—			2.5			0.5			11.5			—
Computer Software		—			3.8			—			1.1			1.2
Construction & Engineering		—			—			—			1.5			—
Consumer Products		2.1			3.7			4.8			1.1			—
Containers & Packaging		—			—			0.2			0.8			—
Diversified		1.9			2.0			1.4			—			—
Electric		1.9			1.5			1.1			1.0			—
Energy Exploration & Production		—			0.6			1.1			—			—
Energy Integrated		5.0			4.7			1.3			1.1			6.6
Energy Services		0.7			0.8			1.2			2.8			1.8
Financial Services		4.3			1.5			4.8			14.4			9.8
Food & Beverages		—			1.2			4.0			1.4			—
Forest & Paper Products		2.1			1.8			6.2			1.9			1.1
Health Services		—			1.0			2.8			5.0			2.8
Household & Personal Products		1.6			1.8			1.6			0.5			—
Housing		5.0			2.8			1.4			2.2			—
Insurance		6.6			7.2			7.2			4.8			2.0
Leisure & Entertainment		7.7			5.5			11.4			3.5			2.4
Manufacturing		5.0			3.9			8.6			9.2			7.8
Medical Products		—			—			—			1.3			2.0
Metals & Mining		1.6			1.5			—			—			—
Pharmaceutical & Biotechnology		10.9			10.7			5.0			3.7			5.3
Real Estate		—			—			—			2.5			0.5
Retail		5.4			4.3			6.5			5.0			5.8
Semiconductors & Components		1.1			3.6			—			4.6			2.2
Technology		3.5			1.4			—			—			3.4
Technology Hardware		—			—			—			3.2			6.8
Telecommunications		2.8			4.8			1.4			0.9			2.4
Transportation		3.8			3.0			3.7			2.8			1.5
Subtotal		94.9			96.4			95.7			96.5			75.5
Short-Term Investments		—			3.4			5.9			4.1			—
Repurchase Agreement		5.3			—			—			—			—
Total Investments		100.2	%		99.8	%		101.6	%		100.6	%		75.5	%

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

Annual Report 35

   The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2013	Lazard US Equity Concentrated Portfolio				Lazard US Strategic Equity Portfolio
ASSETS
Investments in securities, at value		$	229,879,886		$	124,059,700
Cash			—			—
Foreign currency			—			—
Receivables for:
Capital stock sold			354,985			2,263
Investments sold			390,476			170,633
Dividends and interest			201,973			158,480
Amount due from Investment Manager (Note 3)			—			—
Total assets			230,827,320			124,391,076
LIABILITIES
Payables for:
Management fees			133,748			42,637
Accrued distribution fees			456			1,667
Accrued directors’ fees			371			188
Investments purchased			—			209,405
Capital stock redeemed			—			136,725
Other accrued expenses and payables			33,781			27,240
Total liabilities			168,356			417,862
Net assets		$	230,658,964		$	123,973,214
NET ASSETS
Paid in capital		$	197,390,711		$	102,855,008
Undistributed (distributions in excess of) net investment income			(11,715	)		—
Accumulated net realized gain (loss)			8,710,608			1,690,164
Net unrealized appreciation on:
Investments			24,569,360			19,428,042
Foreign currency			—			—
Net assets		$	230,658,964		$	123,973,214
Institutional Shares
Net assets		$	228,477,740		$	116,322,930
Shares of capital stock outstanding*			18,141,803			9,312,694
Net asset value, offering and redemption price per share		$	12.59		$	12.49
Open Shares
Net assets		$	2,181,224		$	7,650,284
Shares of capital stock outstanding*			172,050			610,440
Net asset value, offering and redemption price per share		$	12.68		$	12.53
Cost of investments in securities		$	205,310,526		$	104,631,658
Cost of foreign currency		$	—		$	—

* $0.001 par value 5,400,000,000 shares authorized for the Portfolios in total.

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

36 Annual Report

Lazard US Mid Cap Equity Portfolio			Lazard US Small-Mid Cap Equity Portfolio		Lazard International Equity Portfolio			Lazard International Equity Select Portfolio			Lazard International Strategic Equity Portfolio
$	41,755,536		$	367,944,642	$	228,036,861		$	22,602,618		$	3,273,866,565
	—			561		342			—			—
	—			—		47,976			9,648			674,127
	66,637			13,502		630,922			28,775			18,625,595
	27,369,191			1,872,665		7,135			2,034			4,090,564
	53,205			152,406		297,750			24,332			3,471,056
	—			—		—			30,120			—
	69,244,569			369,983,776		229,020,986			22,697,527			3,300,727,907
	25,969			225,332		139,016			—			1,952,672
	7,001			3,026		8,525			713			171,937
	243			546		322			32			4,429
	23,676,511			1,359,201		1,222,465			12,353			74,929,901
	135,294			123,991		33,652			1,111			417,260
	25,895			41,451		48,191			27,200			453,649
	23,870,913			1,753,547		1,452,171			41,409			77,929,848
$	45,373,656		$	368,230,229	$	227,568,815		$	22,656,118		$	3,222,798,059
$	88,011,143		$	290,877,389	$	205,539,665		$	23,492,611		$	2,672,370,932
	106,690			—		2,303,307			197,889			(94,562	)
	(43,711,903	)		13,684,434		(25,906,125	)		(4,159,564	)		42,537,586
	967,726			63,668,406		45,624,182			3,124,661			507,894,643
	—			—		7,786			521			89,460
$	45,373,656		$	368,230,229	$	227,568,815		$	22,656,118		$	3,222,798,059
$	11,705,858		$	353,564,825	$	185,198,589		$	19,212,299		$	2,354,067,877
	705,811			22,132,447		10,372,906			1,969,195			162,756,915
$	16.58		$	15.97	$	17.85		$	9.76		$	14.46
$	33,667,798		$	14,665,404	$	42,370,226		$	3,443,819		$	868,730,182
	2,063,556			951,721		2,353,781			351,946			59,609,458
$	16.32		$	15.41	$	18.00		$	9.79		$	14.57
$	40,787,810		$	304,276,236	$	182,412,679		$	19,477,957		$	2,765,971,922
$	—		$	—	$	47,976		$	9,723		$	672,705

Annual Report 37

December 31, 2013	Lazard International Small Cap Equity Portfolio				Lazard Global Equity Select Portfolio
ASSETS
Investments in securities, at value		$	71,577,196		$	1,513,258
Foreign currency			14,069			—
Receivables for:
Capital stock sold			91,385			2,000,000
Dividends and interest			123,493			—
Amount due from Investment Manager (Note 3)			—			5,000
Deferred offering costs (Note 2(g))			—			105,926
Total assets			71,806,143			3,624,184
LIABILITIES
Payables for:
Management fees			23,746			—
Accrued distribution fees			4,048			—
Accrued directors’ fees			102			—
Investments purchased			576,694			1,509,991
Capital stock redeemed			25,418			—
Other accrued expenses and payables			29,293			110,926
Total liabilities			659,301			1,620,917
Net assets		$	71,146,842		$	2,003,267
NET ASSETS
Paid in capital		$	122,905,013		$	2,000,000
Undistributed net investment income			649,765			—
Accumulated net realized loss			(69,662,020	)		—
Net unrealized appreciation (depreciation) on:
Investments			17,254,829			3,143
Foreign currency			(745	)		124
Net assets		$	71,146,842		$	2,003,267
Institutional Shares
Net assets		$	51,508,205		$	1,903,138
Shares of capital stock outstanding*			4,886,987			190,000
Net asset value, offering and redemption price per share		$	10.54		$	10.02
Open Shares
Net assets		$	19,638,637		$	100,129
Shares of capital stock outstanding*			1,859,232			10,000
Net asset value, offering and redemption price per share		$	10.56		$	10.01
Cost of investments in securities		$	54,322,367		$	1,510,115
Cost of foreign currency		$	14,021		$	—

* $0.001 par value 5,400,000,000 shares authorized for the Portfolios in total.

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

38 Annual Report

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Annual Report 39

   The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2013	Lazard US Equity Concentrated Portfolio				Lazard US Strategic Equity Portfolio
Investment Income
Income
Dividends		$	4,074,173		$	2,102,885
Interest			134			16
Total investment income*			4,074,307			2,102,901
Expenses
Management fees (Note 3)			1,418,594			748,995
Distribution fees (Open Shares)			4,243			20,457
Shareholders’ services			26,891			28,934
Custodian fees			61,425			63,817
Administration fees			90,533			71,401
Shareholders’ reports			5,190			7,305
Registration fees			63,220			28,570
Professional services			49,893			48,176
Directors’ fees and expenses			6,120			3,220
Other†			13,460			8,093
Total gross expenses			1,739,569			1,028,968
Management fees waived and expenses reimbursed			(10,478	)		(201,848	)
Total net expenses			1,729,091			827,120
Net investment income			2,345,216			1,275,781
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency
Net realized gain (loss) on:
Investments**			29,171,119			15,343,960
Foreign currency			—			—
Net change in unrealized appreciation (depreciation) on:
Investments			17,668,016			9,731,533
Foreign currency			—			—
Net realized and unrealized gain on investments and foreign currency			46,839,135			25,075,493
Net increase in net assets resulting from operations		$	49,184,351		$	26,351,274
* Net of foreign withholding taxes of		$	11,822		$	—
† Includes interest on line of credit of		$	673		$	110

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

40 Annual Report

Lazard US Mid Cap Equity Portfolio			Lazard US Small-Mid Cap Equity Portfolio		Lazard International Equity Portfolio			Lazard International Equity Select Portfolio			Lazard International Strategic Equity Portfolio
$	882,633		$	3,039,691	$	4,240,742		$	411,353		$	39,238,952
	3			507		400			7			1,169
	882,636			3,040,198		4,241,142			411,360			39,240,121
	438,316			2,478,354		1,341,485			140,466			15,618,831
	84,892			38,444		84,123			7,868			1,366,350
	27,665			29,568		30,696			26,515			616,147
	66,308			97,108		133,365			94,976			602,629
	61,690			116,091		85,774			53,306			358,252
	9,474			17,726		11,180			6,490			213,192
	30,770			28,944		29,283			27,020			201,930
	49,815			52,410		49,468			46,437			84,654
	1,942			9,986		5,372			494			61,749
	5,952			12,064		16,752			19,418			172,549
	776,824			2,880,695		1,787,498			422,990			19,296,283
	(61,050	)		—		—			(223,584	)		—
	715,774			2,880,695		1,787,498			199,406			19,296,283
	166,862			159,503		2,453,644			211,954			19,943,838
	16,729,461			52,614,411		7,629,158			266,061			132,365,599
	—			—		(29,599	)		(3,638	)		(2,405,130	)
	(136,345	)		48,010,929		24,742,925			1,893,384			323,591,881
	—			—		8,224			523			90,504
	16,593,116			100,625,340		32,350,708			2,156,330			453,642,854
$	16,759,978		$	100,784,843	$	34,804,352		$	2,368,284		$	473,586,692
$	227		$	1,868	$	429,944		$	44,752		$	3,139,894
$	506		$	1,068	$	—		$	—		$	—

Annual Report 41

For the Period Ended December 31, 2013	Lazard International Small Cap Equity Portfolio				Lazard Global Equity Select Portfolio (a)
Investment Income
Income
Dividends		$	1,404,021		$	—
Interest			16			—
Total investment income*			1,404,037			—
Expenses
Management fees (Note 3)			461,871			—
Distribution fees (Open Shares)			46,506			—
Shareholders’ services			28,330			—
Custodian fees			95,546			—
Administration fees			62,318			—
Shareholders’ reports			7,038			—
Registration fees			30,620			—
Professional services			47,289			5,000
Directors’ fees and expenses			1,856			—
Other†			7,921			—
Total gross expenses			789,295			5,000
Management fees waived and expenses reimbursed			(37,612	)		(5,000	)
Total net expenses			751,683			—
Net investment income			652,354			—
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency
Net realized gain (loss) on:
Investments			11,851,766			—
Foreign currency			(6,057	)		—
Net change in unrealized appreciation on:
Investments			3,642,392			3,143
Foreign currency			1,759			124
Net realized and unrealized gain on investments and foreign currency			15,489,860			3,267
Net increase in net assets resulting from operations		$	16,142,214		$	3,267
* Net of foreign withholding taxes of		$	121,457		$	—
†Includes interest on line of credit of		$	662		$	—

(a) As the Portfolio commenced operations on December 31, 2013, it did not earn any income, nor incur any expense other than professional services during the period presented.

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

42 Annual Report

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Annual Report 43

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

	Lazard US Equity Concentrated Portfolio						Lazard US Strategic Equity Portfolio
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Increase (Decrease) in Net Assets
Operations
Net investment income	$	2,345,216		$	1,081,210		$	1,275,781		$	1,110,273
Net realized gain on investments and foreign currency		29,171,119			1,248,579			15,343,960			8,297,888
Net change in unrealized appreciation (depreciation) on investments and foreign currency		17,668,016			6,593,427			9,731,533			1,229,399
Net increase in net assets resulting from operations		49,184,351			8,923,216			26,351,274			10,637,560
Distributions to shareholders
From net investment income
Institutional Shares		(2,284,658	)		(1,071,583	)		(1,407,263	)		(1,706,939	)
Open Shares		(13,057	)		(4,154	)		(74,902	)		(147,376	)
From net realized gains
Institutional Shares		(19,125,253	)		—			(2,929,967	)		—
Open Shares		(181,139	)		—			(192,042	)		—
Net decrease in net assets resulting from distributions		(21,604,107	)		(1,075,737	)		(4,604,174	)		(1,854,315	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		119,589,275			118,724,713			31,619,015			14,377,525
Open Shares		4,308,999			393,082			5,948,214			2,458,786
Net proceeds from reinvestment of distributions
Institutional Shares		15,230,240			847,541			4,326,965			1,686,330
Open Shares		180,317			4,153			214,293			128,502
Cost of shares redeemed
Institutional Shares		(55,107,495	)		(17,085,989	)		(15,093,331	)		(12,717,388	)
Open Shares		(3,193,058	)		(82,527	)		(8,517,223	)		(3,706,443	)
Net increase (decrease) in net assets from capital stock transactions		81,008,278			102,800,973			18,497,933			2,227,312
Redemption fees (Note 2(j))
Institutional Shares		459			1,498			142			433
Open Shares		—			58			—			—
Net increase in net assets from redemption fees		459			1,556			142			433
Total increase (decrease) in net assets		108,588,981			110,650,008			40,245,175			11,010,990
Net assets at beginning of year		122,069,983			11,419,975			83,728,039			72,717,049
Net assets at end of year*	$	230,658,964		$	122,069,983		$	123,973,214		$	83,728,039
* Includes undistributed (distributions in excess of) net investment income of	$	(11,715	)	$	(9,657	)	$	—		$	210,232
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		11,338,350			1,201,733			7,451,909			7,111,530
Shares sold		9,739,154			11,697,734			2,789,363			1,465,424
Shares issued to shareholders from reinvestment of distributions		1,227,254			79,136			351,870			170,983
Shares redeemed		(4,162,955	)		(1,640,253	)		(1,280,448	)		(1,296,028	)
Net increase (decrease)		6,803,453			10,136,617			1,860,785			340,379
Shares outstanding at end of year		18,141,803			11,338,350			9,312,694			7,451,909
Open Shares
Shares outstanding at beginning of year		64,143			33,507			828,181			937,896
Shares sold		345,072			38,357			488,099			254,087
Shares issued to shareholders from reinvestment of distributions		14,437			386			17,379			13,013
Shares redeemed		(251,602	)		(8,107	)		(723,219	)		(376,815	)
Net increase (decrease)		107,907			30,636			(217,741	)		(109,715	)
Shares outstanding at end of year		172,050			64,143			610,440			828,181

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

44 Annual Report

Lazard US Mid Cap Equity Portfolio						Lazard US Small-Mid Cap Equity Portfolio						Lazard International Equity Portfolio
Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
$	166,862		$	344,026		$	159,503		$	918,024		$	2,453,644		$	2,018,859
	16,729,461			7,992,414			52,614,411			13,525,692			7,599,559			4,095,848
	(136,345	)		824,069			48,010,929			17,023,607			24,751,149			17,837,058
	16,759,978			9,160,509			100,784,843			31,467,323			34,804,352			23,951,765
	(71,565	)		(93,028	)		(240,294	)		(440,159	)		(85,440	)		(3,557,160	)
	(107,406	)		(25,552	)		(11,612	)		—			(19,238	)		(681,741	)
	—			—			(39,984,635	)		(7,126,645	)		—			—
	—			—			(1,743,640	)		(429,062	)		—			—
	(178,971	)		(118,580	)		(41,980,181	)		(7,995,866	)		(104,678	)		(4,238,901	)
	1,958,798			11,992,786			10,080,594			136,617,944			68,935,302			29,943,240
	4,834,306			9,008,006			3,168,805			4,413,215			19,759,582			9,963,361
	61,917			72,879			39,918,663			7,492,237			65,632			3,072,022
	103,233			23,280			1,720,581			400,942			10,642			439,254
	(27,902,776	)		(78,932,556	)		(42,186,235	)		(42,600,983	)		(21,128,631	)		(26,896,764	)
	(22,564,119	)		(22,699,523	)		(9,116,783	)		(11,037,496	)		(9,472,789	)		(7,117,889	)
	(43,508,641	)		(80,535,128	)		3,585,625			95,285,859			58,169,738			9,403,224
	5,813			27			155			15			1,593			1,914
	651			180			842			80			360			83
	6,464			207			997			95			1,953			1,997
	(26,921,170	)		(71,492,992	)		62,391,284			118,757,411			92,871,365			29,118,085
	72,294,826			143,787,818			305,838,945			187,081,534			134,697,450			105,579,365
$	45,373,656		$	72,294,826		$	368,230,229		$	305,838,945		$	227,568,815		$	134,697,450
$	106,690		$	178,968		$	—		$	229,350		$	2,303,307		$	(47,732	)
	2,461,019			7,726,268			21,804,765			14,128,698			7,380,561			6,956,141
	139,534			945,652			644,554			10,509,382			4,296,937			2,165,534
	4,230			5,864			2,532,936			567,164			4,074			217,033
	(1,898,972	)		(6,216,765	)		(2,849,808	)		(3,400,479	)		(1,308,666	)		(1,958,147	)
	(1,755,208	)		(5,265,249	)		327,682			7,676,067			2,992,345			424,420
	705,811			2,461,019			22,132,447			21,804,765			10,372,906			7,380,561
	3,358,349			4,439,926			1,237,189			1,739,728			1,713,621			1,485,123
	340,607			731,390			212,424			352,470			1,218,460			711,367
	7,159			1,942			113,139			31,226			654			30,763
	(1,642,559	)		(1,814,909	)		(611,031	)		(886,235	)		(578,954	)		(513,632	)
	(1,294,793	)		(1,081,577	)		(285,468	)		(502,539	)		640,160			228,498
	2,063,556			3,358,349			951,721			1,237,189			2,353,781			1,713,621

Annual Report 45

	Lazard International Equity Select Portfolio						Lazard International Strategic Equity Portfolio
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Increase (Decrease) in Net Assets
Operations
Net investment income	$	211,954		$	114,671		$	19,943,838		$	10,629,524
Net realized gain on investments and foreign currency		262,423			52,980			129,960,469			5,008,616
Net change in unrealized appreciation on investments and foreign currency		1,893,907			1,325,232			323,682,385			179,035,767
Net increase in net assets resulting from operations		2,368,284			1,492,883			473,586,692			194,673,907
Distributions to shareholders
From net investment income
Institutional Shares		(29,819	)		(142,879	)		(15,225,169	)		(8,123,755	)
Open Shares		(6,781	)		(56,933	)		(3,665,191	)		(2,129,693	)
From net realized gains
Institutional Shares		—			—			(12,783,804	)		—
Open Shares		—			—			(4,645,191	)		—
Net decrease in net assets resulting from distributions		(36,600	)		(199,812	)		(36,319,355	)		(10,253,448	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		10,476,940			3,478,816			1,297,418,651			386,577,221
Open Shares		580,812			427,582			559,094,341			248,255,833
Net proceeds from reinvestment of distributions
Institutional Shares		26,558			105,790			23,504,798			6,962,916
Open Shares		6,511			54,482			7,112,344			2,036,931
Cost of shares redeemed
Institutional Shares		(765,224	)		(1,385,837	)		(185,860,486	)		(74,579,297	)
Open Shares		(460,659	)		(497,811	)		(125,201,877	)		(42,953,515	)
Net increase (decrease) in net assets from capital stock transactions		9,864,938			2,183,022			1,576,067,771			526,300,089
Redemption fees (Note 2(j))
Institutional Shares		499			604			32,289			1,650
Open Shares		—			48			10,305			7,292
Net increase in net assets from redemption fees		499			652			42,594			8,942
Total increase in net assets		12,197,121			3,476,745			2,013,377,702			710,729,490
Net assets at beginning of period		10,458,997			6,982,252			1,209,420,357			498,690,867
Net assets at end of period*	$	22,656,118		$	10,458,997		$	3,222,798,059		$	1,209,420,357
* Includes undistributed (distributions in excess of) net investment income of	$	197,889		$	20,553		$	(94,562	)	$	1,257,090
(a) The Portfolio commenced operations on December 31, 2013.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		889,319			629,470			76,287,527			46,042,276
Shares sold		1,161,787			427,257			98,516,379			36,524,263
Shares issued to shareholders from reinvestment of distributions		2,971			12,880			1,652,995			605,870
Shares redeemed		(84,882	)		(180,288	)		(13,699,986	)		(6,884,882	)
Net increase (decrease)		1,079,876			259,849			86,469,388			30,245,251
Shares outstanding at end of period		1,969,195			889,319			162,756,915			76,287,527
Open Shares
Shares outstanding at beginning of period		337,112			341,991			26,753,257			6,637,650
Shares sold		64,670			52,054			41,717,662			23,889,730
Shares issued to shareholders from reinvestment of distributions		725			6,698			496,337			176,604
Shares redeemed		(50,561	)		(63,631	)		(9,357,798	)		(3,950,727	)
Net increase (decrease)		14,834			(4,879	)		32,856,201			20,115,607
Shares outstanding at end of period		351,946			337,112			59,609,458			26,753,257

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

46 Annual Report

Lazard International Small Cap Equity Portfolio						Lazard Global Equity Select Portfolio
Year Ended December 31, 2013			Year Ended December 31, 2012			Period Ended December 31, 2013 (a)
$	652,354		$	782,258		$	—
	11,845,709			2,343,967			—
	3,644,151			8,864,066			3,267
	16,142,214			11,990,291			3,267
	(124,377	)		(1,259,891	)		—
	(53,950	)		(406,288	)		—
	—			—			—
	—			—			—
	(178,327	)		(1,666,179	)		—
	11,104,859			1,758,201			1,900,000
	2,656,728			2,705,153			100,000
	123,461			1,233,303			—
	52,095			391,808			—
	(16,302,054	)		(3,690,984	)		—
	(5,480,910	)		(6,316,631	)		—
	(7,845,821	)		(3,919,150	)		2,000,000
	—			34			—
	266			4			—
	266			38			—
	8,118,332			6,405,000			2,003,267
	63,028,510			56,623,510			—
$	71,146,842		$	63,028,510		$	2,003,267
$	649,765		$	(67,900	)	$	—
	5,583,338			5,682,315			—
	1,135,839			229,753			190,000
	13,204			160,597			—
	(1,845,394	)		(489,327	)		—
	(696,351	)		(98,977	)		190,000
	4,886,987			5,583,338			190,000
	2,163,219			2,586,982			—
	292,353			365,819			10,000
	5,554			50,866			—
	(601,894	)		(840,448	)		—
	(303,987	)		(423,763	)		10,000
	1,859,232			2,163,219			10,000

Annual Report 47

   The Lazard Funds, Inc. Financial Highlights

LAZARD US EQUITY CONCENTRATED PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of year	$	10.71		$	9.24		$	9.56		$	8.62		$	7.00
Income (loss) from investment operations:
Net investment income (a)		0.14			0.20			0.15			0.10			0.12
Net realized and unrealized gain (loss)		3.02			1.37			(0.30	)		0.93			1.62
Total from investment operations		3.16			1.57			(0.15	)		1.03			1.74
Less distributions from:
Net investment income		(0.14	)		(0.10	)		(0.17	)		(0.09	)		(0.12	)
Net realized gains		(1.14	)		—			—			—			—
Total distributions		(1.28	)		(0.10	)		(0.17	)		(0.09	)		(0.12	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—
Net asset value, end of year	$	12.59		$	10.71		$	9.24		$	9.56		$	8.62
Total Return (c)		29.59	%		16.83	%		-1.47	%		12.00	%		24.81	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	228,478		$	121,379		$	11,108		$	13,066		$	8,464
Ratios to average net assets:
Net expenses		0.85	%		0.93	%		0.75	%		0.97	%		1.00	%
Gross expenses		0.85	%		1.28	%		2.27	%		2.76	%		3.44	%
Net investment income		1.16	%		1.94	%		1.59	%		1.19	%		1.60	%
Portfolio turnover rate		108	%		116	%		53	%		53	%		62	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of year	$	10.77		$	9.30		$	9.61		$	8.67		$	7.04
Income (loss) from investment operations:
Net investment income (a)		0.09			0.15			0.12			0.08			0.09
Net realized and unrealized gain (loss)		3.04			1.39			(0.29	)		0.93			1.64
Total from investment operations		3.13			1.54			(0.17	)		1.01			1.73
Less distributions from:
Net investment income		(0.08	)		(0.07	)		(0.14	)		(0.07	)		(0.10	)
Net realized gains		(1.14	)		—			—			—			—
Total distributions		(1.22	)		(0.07	)		(0.14	)		(0.07	)		(0.10	)
Redemption fees		—			—	(b)		—	(b)		—			—	(b)
Net asset value, end of year	$	12.68		$	10.77		$	9.30		$	9.61		$	8.67
Total Return (c)		29.21	%		16.51	%		-1.77	%		11.62	%		24.49	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	2,181		$	691		$	312		$	294		$	300
Ratios to average net assets:
Net expenses		1.25	%		1.19	%		1.05	%		1.27	%		1.30	%
Gross expenses		1.87	%		4.84	%		6.49	%		7.28	%		5.52	%
Net investment income		0.74	%		1.51	%		1.30	%		0.88	%		1.15	%
Portfolio turnover rate		108	%		116	%		53	%		53	%		62	%

(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	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.

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

48 Annual Report

LAZARD US STRATEGIC EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of year	$	10.11		$	9.03		$	8.97		$	8.02		$	6.26
Income from investment operations:
Net investment income (a)		0.14			0.14			0.12			0.07			0.08
Net realized and unrealized gain		2.72			1.17			0.02			0.97			1.68
Total from investment operations		2.86			1.31			0.14			1.04			1.76
Less distributions from:
Net investment income		(0.15	)		(0.23	)		(0.08	)		(0.09	)		—
Net realized gains		(0.33	)		—			—			—			—
Total distributions		(0.48	)		(0.23	)		(0.08	)		(0.09	)		—
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—
Net asset value, end of year	$	12.49		$	10.11		$	9.03		$	8.97		$	8.02
Total Return (c)		28.38	%		14.56	%		1.65	%		13.13	%		28.12	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	116,323		$	75,327		$	64,239		$	71,207		$	66,153
Ratios to average net assets:
Net expenses		0.75	%		0.75	%		0.75	%		1.01	%		1.05	%
Gross expenses		0.93	%		0.99	%		1.00	%		1.06	%		1.09	%
Net investment income		1.21	%		1.40	%		1.29	%		0.88	%		1.26	%
Portfolio turnover rate		71	%		60	%		48	%		49	%		76	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of year	$	10.14		$	9.04		$	8.97		$	8.02		$	6.28
Income from investment operations:
Net investment income (a)		0.11			0.11			0.09			0.05			0.07
Net realized and unrealized gain		2.73			1.16			0.03			0.97			1.67
Total from investment operations		2.84			1.27			0.12			1.02			1.74
Less distributions from:
Net investment income		(0.12	)		(0.17	)		(0.05	)		(0.07	)		—
Net realized gains		(0.33	)		—			—			—			—
Total distributions		(0.45	)		(0.17	)		(0.05	)		(0.07	)		—
Redemption fees		—			—			—			—	(b)		—
Net asset value, end of year	$	12.53		$	10.14		$	9.04		$	8.97		$	8.02
Total Return (c)		28.04	%		14.10	%		1.42	%		12.79	%		27.71	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	7,650		$	8,401		$	8,478		$	10,024		$	8,945
Ratios to average net assets:
Net expenses		1.05	%		1.05	%		1.05	%		1.31	%		1.35	%
Gross expenses		1.33	%		1.37	%		1.36	%		1.44	%		1.39	%
Net investment income		0.95	%		1.10	%		0.99	%		0.59	%		0.96	%
Portfolio turnover rate		71	%		60	%		48	%		49	%		76	%

(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	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.

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

Annual Report 49

LAZARD US MID CAP EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of year	$	12.52		$	11.87		$	12.61		$	10.31		$	7.50
Income (loss) from investment operations:
Net investment income (a)		0.07			0.05			0.05			0.10			0.08
Net realized and unrealized gain (loss)		4.04			0.63			(0.75	)		2.31			2.81
Total from investment operations		4.11			0.68			(0.70	)		2.41			2.89
Less distributions from:
Net investment income		(0.05	)		(0.03	)		(0.04	)		(0.11	)		(0.08	)
Total distributions		(0.05	)		(0.03	)		(0.04	)		(0.11	)		(0.08	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	16.58		$	12.52		$	11.87		$	12.61		$	10.31
Total Return (c)		32.95	%		5.76	%		-5.58	%		23.43	%		38.49	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	11,706		$	30,803		$	91,740		$	126,626		$	143,267
Ratios to average net assets:
Net expenses		1.05	%		0.98	%		0.93	%		0.91	%		0.91	%
Gross expenses		1.19	%		0.98	%		0.93	%		0.91	%		0.91	%
Net investment income		0.46	%		0.40	%		0.37	%		0.90	%		0.90	%
Portfolio turnover rate		133	%		102	%		83	%		75	%		77	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of year	$	12.35		$	11.72		$	12.45		$	10.18		$	7.40
Income (loss) from investment operations:
Net investment income (a)		0.02			0.03			0.01			0.07			0.05
Net realized and unrealized gain (loss)		4.00			0.61			(0.74	)		2.28			2.78
Total from investment operations		4.02			0.64			(0.73	)		2.35			2.83
Less distributions from:
Net investment income		(0.05	)		(0.01	)		—	(b)		(0.08	)		(0.05	)
Total distributions		(0.05	)		(0.01	)		—	(b)		(0.08	)		(0.05	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	16.32		$	12.35		$	11.72		$	12.45		$	10.18
Total Return (c)		32.59	%		5.44	%		-5.84	%		23.09	%		38.26	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	33,668		$	41,492		$	52,048		$	69,551		$	69,737
Ratios to average net assets:
Net expenses		1.35	%		1.26	%		1.19	%		1.17	%		1.17	%
Gross expenses		1.43	%		1.26	%		1.19	%		1.17	%		1.17	%
Net investment income		0.16	%		0.21	%		0.11	%		0.66	%		0.64	%
Portfolio turnover rate		133	%		102	%		83	%		75	%		77	%

(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	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.

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

50 Annual Report

LAZARD US SMALL-MID CAP EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of year	$	13.29		$	11.82		$	14.55		$	11.80		$	7.59
Income (loss) from investment operations:
Net investment income (loss) (a)		0.01			0.05			0.01			0.09			(0.01	)
Net realized and unrealized gain (loss)		4.70			1.77			(1.45	)		2.70			4.22
Total from investment operations		4.71			1.82			(1.44	)		2.79			4.21
Less distributions from:
Net investment income		(0.01	)		(0.02	)		—			(0.04	)		—
Net realized gains		(2.02	)		(0.33	)		(1.29	)		—			—
Total distributions		(2.03	)		(0.35	)		(1.29	)		(0.04	)		—
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—
Net asset value, end of year	$	15.97		$	13.29		$	11.82		$	14.55		$	11.80
Total Return (c)		35.81	%		15.45	%		-9.83	%		23.67	%		55.47	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	353,565		$	289,855		$	167,042		$	238,901		$	56,042
Ratios to average net assets:
Net expenses		0.86	%		0.88	%		0.90	%		1.00	%		1.22	%
Gross expenses		0.86	%		0.88	%		0.90	%		1.00	%		1.23	%
Net investment income (loss)		0.06	%		0.41	%		0.08	%		0.68	%		-0.12	%
Portfolio turnover rate		101	%		92	%		110	%		114	%		195	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of year	$	12.92		$	11.52		$	14.26		$	11.56		$	7.46
Income (loss) from investment operations:
Net investment income (loss) (a)		(0.04	)		—	(b)		(0.03	)		0.03			(0.04	)
Net realized and unrealized gain (loss)		4.56			1.73			(1.42	)		2.67			4.14
Total from investment operations		4.52			1.73			(1.45	)		2.70			4.10
Less distributions from:
Net investment income		(0.01	)		—			—			—			—
Net realized gains		(2.02	)		(0.33	)		(1.29	)		—			—
Total distributions		(2.03	)		(0.33	)		(1.29	)		—			—
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	15.41		$	12.92		$	11.52		$	14.26		$	11.56
Total Return (c)		35.47	%		14.97	%		-10.09	%		23.36	%		54.96	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	14,665		$	15,984		$	20,039		$	21,620		$	19,531
Ratios to average net assets:
Net expenses		1.20	%		1.21	%		1.21	%		1.34	%		1.51	%
Gross expenses		1.20	%		1.21	%		1.21	%		1.34	%		1.52	%
Net investment income (loss)		-0.27	%		0.01	%		-0.23	%		0.21	%		-0.40	%
Portfolio turnover rate		101	%		92	%		110	%		114	%		195	%

(a)	Net investment income (loss) has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	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.

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

Annual Report 51

LAZARD INTERNATIONAL EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of year	$	14.78		$	12.49		$	13.81		$	13.14		$	10.50
Income (loss) from investment operations:
Net investment income (a)		0.23			0.25			0.27			0.21			0.26
Net realized and unrealized gain (loss)		2.85			2.56			(1.25	)		0.82			2.38
Total from investment operations		3.08			2.81			(0.98	)		1.03			2.64
Less distributions from:
Net investment income		(0.01	)		(0.52	)		(0.34	)		(0.36	)		—	(b)
Total distributions		(0.01	)		(0.52	)		(0.34	)		(0.36	)		—	(b)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	17.85		$	14.78		$	12.49		$	13.81		$	13.14
Total Return (c)		20.84	%		22.70	%		-7.17	%		8.04	%		25.19	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	185,199		$	109,088		$	86,880		$	127,485		$	139,070
Ratios to average net assets:
Net expenses		0.95	%		1.02	%		1.03	%		0.98	%		0.99	%
Gross expenses		0.95	%		1.02	%		1.03	%		0.98	%		0.99	%
Net investment income		1.42	%		1.85	%		1.99	%		1.63	%		2.33	%
Portfolio turnover rate		43	%		48	%		39	%		53	%		66	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of year	$	14.94		$	12.59		$	13.91		$	13.24		$	10.60
Income (loss) from investment operations:
Net investment income (a)		0.19			0.21			0.24			0.16			0.22
Net realized and unrealized gain (loss)		2.88			2.57			(1.26	)		0.83			2.42
Total from investment operations		3.07			2.78			(1.02	)		0.99			2.64
Less distributions from:
Net investment income		(0.01	)		(0.43	)		(0.30	)		(0.32	)		—
Total distributions		(0.01	)		(0.43	)		(0.30	)		(0.32	)		—
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—
Net asset value, end of year	$	18.00		$	14.94		$	12.59		$	13.91		$	13.24
Total Return (c)		20.55	%		22.30	%		-7.42	%		7.65	%		24.91	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	42,370		$	25,610		$	18,699		$	28,670		$	19,520
Ratios to average net assets:
Net expenses		1.23	%		1.32	%		1.33	%		1.29	%		1.27	%
Gross expenses		1.23	%		1.32	%		1.33	%		1.29	%		1.27	%
Net investment income		1.18	%		1.49	%		1.78	%		1.25	%		1.98	%
Portfolio turnover rate		43	%		48	%		39	%		53	%		66	%

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

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

52 Annual Report

LAZARD INTERNATIONAL EQUITY SELECT PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of year	$	8.51		$	7.18		$	7.99		$	7.70		$	6.39
Income (loss) from investment operations:
Net investment income (a)		0.12			0.12			0.13			0.14			0.17
Net realized and unrealized gain (loss)		1.15			1.43			(0.70	)		0.49			1.16
Total from investment operations		1.27			1.55			(0.57	)		0.63			1.33
Less distributions from:
Net investment income		(0.02	)		(0.22	)		(0.24	)		(0.34	)		(0.02	)
Total distributions		(0.02	)		(0.22	)		(0.24	)		(0.34	)		(0.02	)
Redemption fees		—	(b)		—	(b)		—	(b)		—			—	(b)
Net asset value, end of year	$	9.76		$	8.51		$	7.18		$	7.99		$	7.70
Total Return (c)		14.93	%		21.59	%		-7.14	%		8.49	%		20.86	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	19,212		$	7,571		$	4,519		$	3,614		$	3,925
Ratios to average net assets:
Net expenses		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Gross expenses		2.45	%		4.17	%		4.66	%		5.08	%		3.46	%
Net investment income		1.33	%		1.55	%		1.72	%		1.80	%		2.52	%
Portfolio turnover rate		36	%		46	%		55	%		75	%		67	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of year	$	8.57		$	7.20		$	8.02		$	7.72		$	6.41
Income (loss) from investment operations:
Net investment income (a)		0.10			0.12			0.11			0.12			0.14
Net realized and unrealized gain (loss)		1.14			1.42			(0.72	)		0.49			1.17
Total from investment operations		1.24			1.54			(0.61	)		0.61			1.31
Less distributions from:
Net investment income		(0.02	)		(0.17	)		(0.21	)		(0.31	)		—	(b)
Total distributions		(0.02	)		(0.17	)		(0.21	)		(0.31	)		—	(b)
Redemption fees		—			—	(b)		—			—	(b)		—	(b)
Net asset value, end of year	$	9.79		$	8.57		$	7.20		$	8.02		$	7.72
Total Return (c)		14.48	%		21.23	%		-7.41	%		8.29	%		20.49	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	3,444		$	2,888		$	2,463		$	3,056		$	4,530
Ratios to average net assets:
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Gross expenses		3.03	%		4.77	%		5.12	%		5.31	%		3.62	%
Net investment income		1.08	%		1.55	%		1.43	%		1.56	%		2.11	%
Portfolio turnover rate		36	%		46	%		55	%		75	%		67	%

(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	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.

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

Annual Report 53

LAZARD INTERNATIONAL STRATEGIC EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of year	$	11.71		$	9.46		$	10.63		$	9.41		$	7.51
Income (loss) from investment operations:
Net investment income (a)		0.14			0.15			0.16			0.13			0.20
Net realized and unrealized gain (loss)		2.79			2.21			(1.19	)		1.22			1.88
Total from investment operations		2.93			2.36			(1.03	)		1.35			2.08
Less distributions from:
Net investment income		(0.10	)		(0.11	)		(0.14	)		(0.13	)		(0.18	)
Net realized gains		(0.08	)		—			—			—			—
Total distributions		(0.18	)		(0.11	)		(0.14	)		(0.13	)		(0.18	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	14.46		$	11.71		$	9.46		$	10.63		$	9.41
Total Return (c)		25.02	%		25.00	%		-9.70	%		14.43	%		27.76	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	2,354,068		$	893,610		$	435,411		$	356,098		$	311,570
Ratios to average net assets:
Net expenses		0.86	%		0.86	%		0.88	%		0.90	%		0.91	%
Gross expenses		0.86	%		0.86	%		0.88	%		0.90	%		0.91	%
Net investment income		1.02	%		1.45	%		1.53	%		1.30	%		2.42	%
Portfolio turnover rate		42	%		52	%		53	%		55	%		129	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of year	$	11.80		$	9.53		$	10.68		$	9.43		$	7.51
Income (loss) from investment operations:
Net investment income (a)		0.10			0.09			0.13			0.09			0.16
Net realized and unrealized gain (loss)		2.82			2.26			(1.20	)		1.24			1.90
Total from investment operations		2.92			2.35			(1.07	)		1.33			2.06
Less distributions from:
Net investment income		(0.07	)		(0.08	)		(0.08	)		(0.08	)		(0.14	)
Net realized gains		(0.08	)		—			—			—			—
Total distributions		(0.15	)		(0.08	)		(0.08	)		(0.08	)		(0.14	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	14.57		$	11.80		$	9.53		$	10.68		$	9.43
Total Return (c)		24.73	%		24.74	%		-10.01	%		14.09	%		27.38	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	868,730		$	315,811		$	63,280		$	46,051		$	19,446
Ratios to average net assets:
Net expenses		1.10	%		1.13	%		1.16	%		1.20	%		1.21	%
Gross expenses		1.10	%		1.13	%		1.16	%		1.20	%		1.21	%
Net investment income		0.78	%		0.87	%		1.26	%		0.89	%		1.98	%
Portfolio turnover rate		42	%		52	%		53	%		55	%		129	%

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

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

54 Annual Report

LAZARD INTERNATIONAL SMALL CAP EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of year	$	8.12		$	6.84		$	8.12		$	6.68		$	4.80
Income (loss) from investment operations:
Net investment income (a)		0.11			0.11			0.13			0.10			0.08
Net realized and unrealized gain (loss)		2.34			1.40			(1.27	)		1.45			1.80
Total from investment operations		2.45			1.51			(1.14	)		1.55			1.88
Less distributions from:
Net investment income		(0.03	)		(0.23	)		(0.14	)		(0.11	)		—
Total distributions		(0.03	)		(0.23	)		(0.14	)		(0.11	)		—
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	10.54		$	8.12		$	6.84		$	8.12		$	6.68
Total Return (c)		30.20	%		22.28	%		-14.11	%		23.55	%		39.17	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	51,508		$	45,360		$	38,879		$	47,134		$	40,243
Ratios to average net assets:
Net expenses		1.13	%		1.13	%		1.13	%		1.13	%		1.17	%
Gross expenses		1.19	%		1.18	%		1.17	%		1.21	%		1.21	%
Net investment income		1.15	%		1.40	%		1.65	%		1.39	%		1.55	%
Portfolio turnover rate		58	%		48	%		28	%		41	%		51	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of year	$	8.17		$	6.86		$	8.14		$	6.70		$	4.82
Income (loss) from investment operations:
Net investment income (a)		0.08			0.08			0.10			0.08			0.07
Net realized and unrealized gain (loss)		2.34			1.41			(1.26	)		1.45			1.81
Total from investment operations		2.42			1.49			(1.16	)		1.53			1.88
Less distributions from:
Net investment income		(0.03	)		(0.18	)		(0.12	)		(0.09	)		—
Total distributions		(0.03	)		(0.18	)		(0.12	)		(0.09	)		—
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	10.56		$	8.17		$	6.86		$	8.14		$	6.70
Total Return (c)		29.65	%		21.96	%		-14.36	%		23.13	%		39.00	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	19,639		$	17,669		$	17,744		$	24,984		$	27,920
Ratios to average net assets:
Net expenses		1.43	%		1.43	%		1.43	%		1.43	%		1.43	%
Gross expenses		1.48	%		1.48	%		1.46	%		1.49	%		1.48	%
Net investment income		0.85	%		1.08	%		1.34	%		1.09	%		1.28	%
Portfolio turnover rate		58	%		48	%		28	%		41	%		51	%

(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	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.

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

Annual Report 55

LAZARD GLOBAL EQUITY SELECT PORTFOLIO

Selected data for a share of capital	Period Ended
stock outstanding throughout the period	12/31/13*
Institutional Shares
Net asset value, beginning of period	$	10.00
Income from investment operations:
Net realized and unrealized gain		0.02
Total from investment operations		0.02
Net asset value, end of period	$	10.02
Total Return (b)		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,903
Ratios to average net assets:
Net expenses		0.00	%
Gross expenses (a)		91.25	%
Net investment income		0.00	%
Portfolio turnover rate		0.00	%
Selected data for a share of capital	Period Ended
stock outstanding throughout the period	12/31/13*
Open Shares
Net asset value, beginning of period	$	10.00
Income from investment operations:
Net realized and unrealized gain		0.01
Total from investment operations		0.01
Net asset value, end of period	$	10.01
Total Return (b)		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	100
Ratios to average net assets:
Net expenses		0.00	%
Gross expenses (a)		91.25	%
Net investment income		0.00	%
Portfolio turnover rate		0.00	%

*	The Portfolio commenced operations on December 31, 2013.
(a)	Gross expense ratio was the result of the Portfolio being in existence for one day during the period ended December 31, 2013. Annualized for a period of less than one year.
(b)	Certain expenses of the Portfolio have been waived or reimbursement by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.

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

56 Annual Report

   The Lazard Funds, Inc. Notes to Financial Statements December 31, 2013

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 twenty-five no-load portfolios (each referred to as a “Portfolio”), as follows: Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard Global Equity Select Portfolio (commenced investment operations on December 31, 2013), 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 Core Equity Portfolio (commenced investment operations on October 31, 2013), 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 Explorer Total Return Portfolio (commenced investment operations on June 28, 2013), Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio (formerly, Lazard International Realty Equity Portfolio), Lazard US Short Duration Fixed Income Portfolio (formerly, Lazard U.S. Municipal Portfolio), Lazard US Corporate Income Portfolio (formerly, Lazard U.S. High Yield Portfolio), Lazard Global Fixed Income Portfolio, Lazard Multi-Asset Targeted Volatility Portfolio, and Lazard Capital Allocator Opportunistic Strategies Portfolio. All Portfolios, other than the US Equity Concentrated Portfolio, the Emerging Markets Debt Portfolio, the Explorer Total Return Portfolio, the US Realty Equity Portfolio and the Global 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, 2013. This report includes only the financial statements of US Equity Concentrated Portfolio, US Strategic Equity Portfolio, US Mid Cap Equity Portfolio, US Small-Mid Cap Equity Portfolio, International Equity Portfolio, International Equity Select Portfolio, International Strategic Equity Portfolio, International Small Cap Equity Portfolio and Global Equity Select Portfolio (the “Portfolios”). The financial statements of other portfolios are presented separately.

Effective November 29, 2013, the Fund commenced offering R6 Shares. Each Portfolio currently offers Institutional Shares and Open Shares, and certain Portfolios offer R6 Shares. Each share class is identical except as to minimum investment requirements; eligibility requirements for R6 Shares; the services offered to, and expenses borne by, each class; and the availability of Service Payments (as defined in the Prospectus). As of December 31, 2013, no R6 Shares have been issued.

2. Significant Accounting Policies

The accompanying financial statements are presented in conformity with GAAP. The Fund is an investment company and therefore applies specialized accounting guidance in Accounting Standards Codification Topic 946. 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 US 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. Investments in money market funds are valued at the fund’s net asset value (“NAV”). Repurchase agreements are valued at the principal amounts plus accrued interest.

The Valuation Committee of the Investment Manager, which meets periodically under the direction of the Board of Directors (the “Board”), may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Investment Manager’s portfolio managers/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

Annual Report 57

which the security is principally traded and the time when a Portfolio’s NAV 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 non-US 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 US securities and other appropriate indicators, such as closing market prices of relevant ADRs or futures contracts. Non-US 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 NAV 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’ NAVs.

(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 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 under the terms of a Master Repurchase Agreement, 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. Upon an event of default under the Master Repurchase Agreement, if the seller defaults, the affected Portfolio may retain the collateral in lieu of repayment. If the seller defaults, and the fair value of the collateral declines, realization of the collateral by a Portfolio may be delayed or limited.

At December 31, 2013, the US Small-Mid Cap Equity Portfolio and International Equity Portfolio had investments in repurchase agreements with a value of $12,271,000 and $12,039,000, respectively, as shown on the Statements of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at year end.

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

The Portfolios do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in their market prices. Such fluctuations are included in net realized and unrealized gain (loss) on investments. Net realized gain (loss) on foreign currency transactions represents net foreign currency gain (loss) from 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 US 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.

(e) 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.

58 Annual Report

At December 31, 2013, the following Portfolios had unused realized capital losses which, for federal income tax purposes, could be used to offset future realized capital gains as follows:

Portfolio	Expiring 2016		Expiring 2017
US Mid Cap Equity	$	3,258,313	$	40,427,588
International Equity		—		20,576,570
International Equity Select		179,007		2,653,216
International Small Cap Equity		—		13,536,598
Portfolio	Expiring 2018		Expiring 2019
International Equity	$	5,103,235	$	—
International Equity Select		1,173,332		—
International Small Cap Equity		50,821,243		4,306,477

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, 2013, the following Portfolios elected to defer net capital and foreign currency losses arising between November 1, 2013 and December 31, 2013 as follows:

Portfolio	Amount
International Equity Select	$	95,880
International Strategic Equity		12,284
Global Equity Select		4

The Regulated Investment Company Modernization Act of 2010 (the “RIC Modernization Act”) includes numerous provisions that generally became effective for taxable years beginning after December 22, 2010. Among the 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 (2010-2012), or expected to be taken in the Portfolios’ 2013 tax returns.

(f) Dividends and Distributions—Dividends from net investment income, if any, on shares of the Portfolios will be de-

clared and paid annually. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Portfolios, if not distributed. The Portfolios intend to declare and distribute these amounts, at least annually, to shareholders; however, to avoid taxation, a second distribution may be required.

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 resulted in reclassifications among certain capital accounts.

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2013		2012		2013		2012
US Equity Concentrated
Institutional	$	19,345,344	$	1,071,583	$	2,077,289	$	—
Open		163,877		4,154		17,597		—
US Strategic Equity
Institutional		1,329,294		1,706,939		2,921,741		—
Open		110,427		147,376		242,714		—
US Mid Cap Equity
Institutional		74,720		93,028		—		—
Open		104,251		25,552		—		—
US Small-Mid Cap Equity
Institutional		17,518,115		1,653,812		22,505,790		5,732,772
Open		856,245		136,415		1,100,031		472,867
International Equity
Institutional		85,040		3,557,160		—		—
Open		19,638		681,741		—		—
International Equity Select
Institutional		29,686		142,879		—		—
Open		6,914		56,933		—		—

Annual Report 59

	Ordinary Income				Long-Term Capital Gain
Portfolio	2013		2012		2013		2012
International Strategic Equity
Institutional	$	13,963,754	$	8,123,755	$	12,883,513	$	—
Open		4,926,606		2,129,693		4,545,482		—
International Small Cap Equity
Institutional		124,472		1,259,891		—		—
Open		53,855		406,288		—		—

As of December 31, 2013, the components of distributable earnings, on a tax basis, were as follows:

Portfolio	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation Including Foreign Currency		Other Temporary Differences
US Equity Concentrated	$	2,800,291	$	6,072,149	$	24,407,528	$	11,715
US Strategic Equity		—		2,069,714		19,048,492		—
US Mid Cap Equity		106,690		—		941,723		(1	)
US Small-Mid Cap Equity		6,479,741		7,261,466		63,611,635		2
International Equity		2,302,380		—		45,406,575		—
International Equity Select		197,849		—		3,067,094		1
International Strategic Equity		—		43,792,015		506,659,454		12,058
International Small Cap Equity		1,597,888		—		15,308,256		(3	)
Global Equity Select		—		—		3,271		—

(g) Offering Costs—Costs 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.

(h) Allocation of Expenses—Expenses not directly chargeable to a specific Portfolio are allocated among all the portfolios of the Fund 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.

(i) 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.

(j) 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 Statements of Changes in Net Assets.

(k) 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 Portfolios, 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
US Equity Concentrated		0.70	%
US Strategic Equity		0.70
US Mid Cap Equity		0.75
US Small-Mid Cap Equity		0.75
International Equity		0.75
International Equity Select		0.85
International Strategic Equity		0.75
International Small Cap Equity		0.75
Global Equity Select		0.85

60 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
US Equity Concentrated		0.95	%		1.25	%
US Strategic Equity		0.75			1.05
US Mid Cap Equity		1.05			1.35
US Small-Mid Cap Equity Portfolio		1.15			1.45
International Equity		1.05			1.35
International Equity Select		1.15			1.45
International Strategic Equity		1.15			1.45
International Small Cap Equity		1.13			1.43
Global Equity Select		1.10			1.40

During the year or period ended December 31, 2013, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:

	Institutional Shares				Open Shares
	Management		Expenses		Management		Expenses
Portfolio	Fees Waived		Reimbursed		Fees Waived		Reimbursed
US Equity Concentrated	$	—	$	—	$	10,478	$	—
US Strategic Equity		178,914		—		22,934		—
US Mid Cap Equity		34,266		—		26,784		—
International Equity Select		113,931		60,412		26,535		22,706
International Small Cap Equity		27,611		—		10,001		—
Global Equity Select		—		4,750		—		250

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 Global Equity Select Portfolio until the Portfolio’s net assets reach $25 million.

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

vestors and certain expenses in connection with the offering of Portfolio shares.

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

Boston Financial Data Services, Inc. (“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 the first six months after a new Portfolio has commenced operations.

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, generally, 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.

Annual Report 61

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, 2013 were as follows:

Portfolio	Purchases		Sales
US Equity Concentrated	$	246,742,442	$	195,238,127
US Strategic Equity		88,567,535		73,628,709
US Mid Cap Equity		75,885,066		123,480,976
US Small-Mid Cap Equity		323,430,750		368,323,851
International Equity		124,993,849		72,938,094
International Equity Select		15,089,487		5,734,609
International Strategic Equity		2,285,697,812		838,355,869
International Small Cap Equity		35,123,174		44,694,803
Global Equity Select		1,510,115		—

For the year or period ended December 31, 2013, 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 arrears. During the year ended December 31, 2013, the Portfolios had borrowings under the Agreement as follows:

					Weighted		Number of
	Average		Maximum		Average		Days
	Daily Loan		Daily Loan		Interest		Borrowings
Portfolio	Balance*		Outstanding		Rate		were Outstanding
US Equity Concentrated	$	22,000,000	$	22,000,000	1.10	%	1
US Strategic Equity		1,200,000		1,200,000	1.10		3
US Mid Cap Equity		2,325,714		7,800,000	1.12		7
US Small-Mid Cap Equity		6,544,000		7,400,000	1.18		5
International Small Cap Equity		1,220,647		6,700,000	1.15		17

* For days borrowings were outstanding.

7. Non-US Securities Investment Risks

The Portfolios invest in securities of foreign entities and in instruments denominated in foreign currencies which involve risks not typically associated with investments in US securities. A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as exposure to less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity. In addition, investments denominated in currencies other than US dollars carry the risk that such currencies will decline in value relative to the US dollar and affect the value of these investments held in the Portfolios. Emerging market countries can generally have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries. The securities markets of emerging market countries have historically been extremely volatile. However, the capital markets in the US and internationally have experienced unprecedented volatility in recent years, causing significant declines in the value and liquidity of many securities. These market conditions may continue to worsen. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to investments denominated in emerging markets currencies.

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 mar-

62 Annual Report

ket participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. Each investment’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the overall fair value measurement. The three-level hierarchy of inputs is summarized below.

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

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

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

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

The following tables summarize the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2013:

	Unadjusted
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Investments		Inputs		Inputs		Balance as of
Description	(Level 1)		(Level 2)		(Level 3)		December 31, 2013
US Equity Concentrated Portfolio
Common Stocks	$	206,792,680	$	—	$	—	$	206,792,680
Short-Term Investment		23,087,206		—		—		23,087,206
Total	$	229,879,886	$	—	$	—	$	229,879,886
US Strategic Equity Portfolio
Common Stocks	$	122,475,052	$	—	$	—	$	122,475,052
Preferred Stock*		—		—		—		—
Short-Term Investment		1,584,648		—		—		1,584,648
Total	$	124,059,700	$	—	$	—	$	124,059,700
US Mid Cap Equity Portfolio
Common Stocks	$	40,494,988	$	—	$	—	$	40,494,988
Preferred Stock*		—		—		—		—
Short-Term Investment		1,260,548		—		—		1,260,548
Total	$	41,755,536	$	—	$	—	$	41,755,536
US Small-Mid Cap Equity Portfolio
Common Stocks	$	355,673,642	$	—	$	—	$	355,673,642
Preferred Stock*		—		—		—		—
Repurchase Agreement		—		12,271,000		—		12,271,000
Total	$	355,673,642	$	12,271,000	$	—	$	367,944,642
International Equity Portfolio
Common Stocks:
Thailand	$	—	$	1,249,601	$	—	$	1,249,601
Other		214,748,260		—		—		214,748,260
Repurchase Agreement		—		12,039,000		—		12,039,000
Total	$	214,748,260	$	13,288,601	$	—	$	228,036,861

Annual Report 63

	Unadjusted
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Investments		Inputs		Inputs		Balance as of
Description	(Level 1)		(Level 2)		(Level 3)		December 31, 2013
International Equity Select Portfolio
Common Stocks:
Russia	$	269,531	$	211,498	$	—	$	481,029
Other		21,355,134		—		—		21,355,134
Short-Term Investment		766,455		—		—		766,455
Total	$	22,391,120	$	211,498	$	—	$	22,602,618
International Strategic Equity Portfolio
Common Stocks	$	3,084,025,100	$	—	$	—	$	3,084,025,100
Short-Term Investment		189,841,465		—		—		189,841,465
Total	$	3,273,866,565	$	—	$	—	$	3,273,866,565
International Small Cap Equity Portfolio
Common Stocks	$	67,326,998	$	—	$	—	$	67,326,998
Preferred Stocks		1,347,245		—		—		1,347,245
Short-Term Investment		2,902,953		—		—		2,902,953
Total	$	71,577,196	$	—	$	—	$	71,577,196
Global Equity Select Portfolio
Common Stocks	$	1,513,258	$	—	$	—	$	1,513,258
Total	$	1,513,258	$	—	$	—	$	1,513,258

* The Preferred Stock was reported in the Portfolios of investments at zero market value.

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 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 was 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 recent bankruptcy filing of the company which is reflected in its current valuation of zero.

In connection with the periodic implementation of fair value pricing procedures with respect to non-US 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 International Equity, International Equity Select, International Strategic Equity and International Small Cap Equity Portfolios can transfer 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.

As of December 31, 2013, securities valued at the following amounts were transferred from Level 2 to Level 1:

Portfolio	Amount
US Equity Concentrated	$	13,156,276
US Strategic Equity		1,324,107
US Mid Cap Equity		923,402
International Equity		80,113,364
International Equity Select		6,849,345
International Strategic Equity		766,029,676
International Small Cap Equity		42,460,739

The short-term investments were transferred from Level 2 to Level 1 based on increased reliance on the NAV of an open-end mutual fund as being representative of an active market price. There were no other transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 2013. Transfers between levels are recognized at the beginning of the reporting period.

For further information regarding security characteristics see Portfolios of Investments.

64 Annual Report

Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value during the year ended December 31, 2013.

												Net Change in
												Unrealized
												Depreciation
												from Investments
	Balance as of		Accrued	Realized	Change in				Transfers	Transfers	Balance as of	Still Held at
	December 31,		Discounts	Gain	Unrealized				Into	Out of	December 31,	December 31,
Description	2012		(Premiums)	(Loss)	Depreciation		Purchases	Sales	Level 3	Level 3	2013	2013
US Strategic Equity
Preferred Stock*	$	23,582	$    —	$    —	$	(23,582)	$    —	$    —	$    —	$    —	$    —	$	(23,582)
US Mid Cap Equity
Preferred Stock*	$	67,990	$    —	$    —	$	(67,990)	$    —	$    —	$    —	$    —	$    —	$	(67,990)
US Small-Mid Cap Equity
Preferred Stock*	$	23,551	$    —	$    —	$	(23,551)	$    —	$    —	$    —	$    —	$    —	$	(23,551)

* The Preferred stock was reported in the Portfolios of Investments at zero market value.

10. Accounting Standards Update

In June 2013, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2013-08 Financial Services—Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. This ASU clarifies the characteristics of an investment company, provides comprehensive guidance to determine whether an entity is an investment company and sets certain measurement and disclosure requirements. This ASU is effective for interim and annual periods in the fiscal years that

begin after December 15, 2013. The Investment Manager does not expect that the adoption of this standard will have a material impact on the financial statements.

11. Subsequent Events

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

Annual Report 65

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

Report of Independent Registered Public Accounting Firm

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 Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Small Cap Equity Portfolio and Lazard Global Equity Select Portfolio (commenced operations on December 31, 2013) (each individually a “Portfolio”) which are nine of the Portfolios constituting The Lazard Funds, Inc. (the “Fund”) as of December 31, 2013 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 date noted above to December 31, 2013 and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2013, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights as stated above present fairly, in all material respects, the financial position of each of the Portfolios of The Lazard Funds, Inc. listed above as of December 31, 2013, 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 date noted in the first paragraph above to December 31, 2013 and the financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America.

ANCHIN, BLOCK & ANCHIN LLP

New York, New York
February 28, 2014

66 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 (68)	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 (51)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
		TIAA-CREF Funds (59 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)
Leon M. Pollack (73)	Director (August 2006)	Private Investor
Richard Reiss, Jr. (69)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (66)	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 (53)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (53)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present) Lazard Ltd, Vice Chairman and Director (2010 – present)

(1)	The address of each Director of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each Director also serves as a Director for each of the Lazard Funds (comprised of, as of January 31, 2014, 31 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) are also board members of Lazard Alternative Strategies 1099 Fund, a closed-end registered management investment company 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, or online, at www.LazardNet.com.

Annual Report 67

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 (41)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Stephen St. Clair (55)	Treasurer (May 2003)	Vice President of the Investment Manager
Brian D. Simon (51)	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 (38)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President and Counsel) of the Investment Manager
Cesar A. Trelles (39)	Assistant Treasurer (December 2004)	Vice President (since February 2011, previously Fund Administration Manager) of the Investment Manager

(1)	The address of each officer of the Fund 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.

68 Annual Report

   The Lazard Funds, Inc. Other Information (unaudited)

Proxy Voting

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

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

Form N-Q

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

Board Consideration of Management Agreement

Lazard Global Equity Select Portfolio

At a meeting of the Fund’s Board held on November 12, 2013, the Board considered the approval of the Management Agreement between the Fund, on behalf of the Lazard Global Equity Select Portfolio, and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Investment Manager.

Services Provided

Representatives of the Investment Manager discussed with the Board the Investment Manager’s written presentation provided in advance of the meeting addressing, among other matters, the nature, extent and quality of services provided to the Fund by the Investment Manager, including a discussion of the Investment Manager and its clients (of which the existing Lazard Funds complex of 30 active funds comprised approximately $24 billion of the approximately $160 billion of total assets under the management of the Investment Manager and its global subsidiaries as of September 30, 2013); the Investment Manager’s global investment

management platform, technology, operational and legal and compliance support and significant marketing infrastructure across broad distribution channels; and the Investment Manager’s personnel, resources, financial condition and experience. The Board received a presentation on the Portfolio from members of the Portfolio’s proposed portfolio management team, including the strategies to be employed for the Portfolio and the Portfolio’s portfolio management team, including professional biographies.

The Directors considered the various services to be provided by the Investment Manager including the Investment Manager’s research and portfolio management capabilities and oversight of day-to-day operations, including supervision of fund accounting and administration-related services and assistance in meeting legal and regulatory requirements. The Directors also considered the Investment Manager’s infrastructure and agreed that the Portfolio was expected to benefit from the services and infrastructure provided by the Investment Manager. The Directors accepted management’s assertion that such services and infrastructure would be greater than those typically provided to a $24 billion fund complex not managed by a large, global firm such as the Investment Manager.

Comparative Management Fee, Expense Ratio and Performance Information

The Directors reviewed comparative management fee and expense ratio information prepared by Lipper, noting the limitations of the comparison groups for the Portfolio (each, the “Group”).

Management Fee and Expense Ratios. Representatives of the Investment Manager reviewed the proposed management fee and anticipated expense ratios for the Portfolio and the comparisons provided by Lipper, which compared contractual management fees and expense ratios for the Portfolio to its respective Groups and comparison universes (each, a “Universe”), and the Directors noted the methodology and assumptions used by Lipper, including that the management fee comparisons and the rankings used therein include administrative fees (which are paid to the Fund’s third party administrator that is not affiliated with the Investment Manager). The proposed management fee for the Portfolio was slightly above the Group median (by approximately three basis points) for Institutional Shares and Open Shares. The net expense ratio for Institutional Shares was above the

Annual Report 69

Group median and at the Universe median, and the net expense ratio for Open Shares was above the Group and Universe medians. Representatives of the Investment Manager noted that several funds in the Open Shares Group did not have distribution or shareholder servicing plans. The Directors also reviewed the contractual management fees and expenses of funds in the Morningstar World Stock category and noted that the Portfolio’s Institutional Shares’ contractual management fees and expenses were at the medians of those of the funds in the category.

The Directors also reviewed information regarding advisory fees charged to the accounts of other clients of the Investment Manager with investment objectives, policies and strategies similar to those of the Portfolio and considered the relevance of this fee information.

Performance. Since the Portfolio had not yet commenced operations, there was no performance for the Directors to consider. The Directors were provided with composite performance information for the Investment Manager’s global equity select strategy.

Investment Manager Profitability and Economies of Scale

Representatives of the Investment Manager referred to recent discussions regarding considerations of profitability and economies of scale in respect of the Fund’s existing Portfolios and noted that because the Lazard Global Equity Select Portfolio is newly formed, has not commenced operations and the eventual aggregate amount of the Portfolio’s assets was uncertain, specific information concerning the cost of services to be provided to the Portfolio and the expected profits to be realized by the Investment Manager and its affiliates from their relationships with the Portfolio and economies of scale would be subject to a number of assumptions and would be speculative and not meaningful. The Investment Manager’s representatives stated that they did not expect the Investment Manager to realize any current profits on the Portfolio initially, noting the Investment Manager’s agreement to waive its fees and/or reimburse the Portfolio for at least two years following the Portfolio’s commencement of operations to maintain the expense ratios reflected in the Lipper materials. The Board determined to revisit this issue no later than when it next reviewed the investment management fee in connection with renewal of the Management Agreement. The Investment Manager’s representatives noted that neither the Investment Manager

nor its affiliates were expected to receive any significant indirect benefits from the Investment Manager acting as investment adviser to the Portfolio. The Investment Manager’s representatives reviewed with the Board information provided on the Investment Manager’s brokerage and soft dollar practices. The representatives of the Investment Manager stated that the Investment Manager intends to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the Portfolio would not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Portfolio’s Open Shares.

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

• The Board concluded that the nature, extent and quality of the services to be provided by the Investment Manager are adequate and appropriate, noting the benefits of advisory and research and other services and infrastructure (as discussed above) associated with an approximately $160 billion global asset management business.

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

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

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

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

70 Annual Report

   The Lazard Funds, Inc. Tax Information Year Ended December 31, 2013 (unaudited)

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2013:

Of the dividends paid by the Portfolios, the corresponding percentage shown below is qualified dividend income.

Portfolio	Percentage
US Equity Concentrated	15.58	%
US Strategic Equity	100.00
US Mid Cap Equity	100.00
US Small-Mid Cap Equity	15.81
International Equity	100.00
International Equity Select	100.00
International Strategic Equity	100.00
International Small Cap Equity	100.00
Global Equity Select	—

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

Portfolio	Percentage
US Equity Concentrated	11.74	%
US Strategic Equity	100.00
US Mid Cap Equity	100.00
US Small-Mid Cap Equity	14.07
International Equity	—
International Equity Select	—
International Strategic Equity	1.45
International Small Cap Equity	—
Global Equity Select	—

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 US nonresident shareholders.

Annual Report 71

NOTES

The Lazard Funds, Inc.
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
http://www.LazardNet.com

Investment Manager
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300

Distributor
Lazard Asset Management Securities LLC
30 Rockefeller Plaza
New York, New York 10112-6300

Custodian
State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Transfer Agent and Dividend Disbursing Agent
Boston Financial Data Services, Inc.
P.O. Box 8514
Boston, Massachusetts 02266-8514
Telephone: 800-986-3455

Independent Registered Public Accounting Firm
Anchin, Block & Anchin LLP
1375 Broadway
New York, New York 10018
http://www.anchin.com

Legal Counsel

Stroock & Stroock & Lavan LLP
180 Maiden Lane
New York, New York 10038-4982
http://www.stroock.com

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

Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardnet.com
LZDPS020

Lazard Funds Annual Report

December 31, 2013

Emerging Market Funds

Lazard Emerging Markets Equity Portfolio

Lazard Emerging Markets Core 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 Explorer Total Return Portfolio

   The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
9	Performance Overviews
16	Information About Your Portfolio’s Expenses
18	Portfolio Holdings Presented by Sector and Region
19	Portfolios of Investments
19	Lazard Emerging Markets Equity Portfolio
21	Lazard Emerging Markets Core Equity Portfolio
23	Lazard Developing Markets Equity Portfolio
25	Lazard Emerging Markets Equity Blend Portfolio
28	Lazard Emerging Markets Multi-Strategy Portfolio
41	Lazard Emerging Markets Debt Portfolio
50	Lazard Explorer Total Return Portfolio
57	Notes to Portfolios of Investments
60	Statements of Assets and Liabilities
62	Statements of Operations
64	Statements of Changes in Net Assets
67	Financial Highlights
74	Notes to Financial Statements
91	Report of Independent Registered Public Accounting Firm
92	Board of Directors and Officers Information
94	Other Information
96	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,

The year 2013 was one of many contrasts. Some records were set, with US equities reaching new highs, while US bond returns were negative for the first time in more than a decade. Equities globally made good headway, led by a surge in developed-market stocks, which significantly outpaced their emerging-market counterparts during the year. Markets in the United States, Japan, and Europe did well, with returns in the low double digits fueled by accommodative central bank policy and signs of healing in their respective economies.

Bond markets were subdued in comparison to a strong 2012, amid expectations of higher long-term interest rates. Meanwhile, emerging markets equity and debt weakened over concerns about widening current account deficits in the developing world. From a global perspective, corporate profitability and balance sheets remain strong and we anticipate that the operating backdrop for companies will continue to improve.

We are also pleased to inform you of a change to the format of the Lazard Funds’ annual and semiannual reports. Beginning this year-end, we will be reporting on the Lazard Funds through a set of five reports grouped by asset class. This allows us to increase ease of access to fund information for our shareholders and reduce production costs.

As always, at Lazard Asset Management, we remain focused on active management and 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 investment management capabilities, and feel privileged that you have turned to Lazard for your investment needs.

Sincerely,

Lazard Asset Management LLC

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   The Lazard Funds, Inc. Investment Overviews

Emerging Markets Equities and Debt

The year ended December 31, 2013 was a period dominated by speculation over the timing of the US Federal Reserve (the Fed) tapering purchases of US bonds, leading to concerns over the effects of higher US interest rates. The likelihood of this trend strengthening the US dollar, coupled with weakness in commodity prices and concerns over Chinese credit, resulted in one of the worst periods ever for emerging markets equities when measured against developed markets’ shares. The Morgan Stanley Capital International (MSCI^®) Emerging Markets Index (the “EM Index”) declined by approximately 2.6%, as measured in US dollar terms, during the period. During the year, shares in Asia fared best, rising by almost 2%. Eastern European equities finished marginally higher, while those in Latin America fell significantly, weighed down by mining and energy shares.

Equities in Latin American markets underperformed all other regions, mainly due to languishing commodity prices. Returns were poor across all of the resource-rich markets of Chile, Colombia, Peru, and Brazil. Brazil, with a current account deficit and slowing economy, was a target for currency speculators. Mexican stocks rose modestly as the result of the excitement over newly elected President Peña Nieto’s reform agenda and its trade ties to the United States. The strongest performing market was in Argentina, which is not included in the EM Index. Its market was aided by negotiations over an agreement between the Argentine government and the Spanish oil company Repsol, concerning compensation for Argentina’s expropriation of Repsol’s controlling interest in YPF Sociedad Anonima in 2012.

As a region, eastern Europe, the Middle East, and Africa generated mostly positive returns in 2013. However, the Czech Republic and Hungary, where the economies were weak, South Africa, which was affected by the Fed’s tapering and lower commodity prices, and Turkey, where an apparent dispute between the ruling AK Party and the Gulen movement resulted in stock market and lira weakness, all declined during the period. The Turkish dispute, which was on top of currency pressures caused by Turkey’s vulnerability to the Fed’s tapering, forced the resignation of several government ministers and company leaders in December. Egyptian shares increased following a military coup and actions towards a constitutional referendum. Equities in Greece, re-admitted into the EM Index during the year, rebounded strongly as investors visualized recovery potential following the country’s multi-year economic calamity.

Overall, Asian markets rose modestly during the year. Indonesian and Thai equities were the worst performers in the region. Indonesian equities declined after several years of strong performance. This prolonged share strength, combined with the country’s current account deficit, made Indonesia a predictable location for a sell-off at the time of the Fed’s tapering announcement. Thai stocks fell, especially toward the end of the year, after the Prime Minister dissolved parliament’s lower house and called for an election, and following attempts in October to pardon the country’s former President Thaksin Shinawatra. Philippine equities also declined in the aftermath of the tragic typhoon. Indian shares demonstrated an impressive recovery following the appointment of a new Reserve Bank of India governor and despite sensitivity in the summer to the Fed’s potential initial tapering of US bond purchases. Equities in Taiwan, South Korea, and China were aided by their relatively strong currency reserves positions, an improving global economy, as well as strong performance in the technology sector.

From a sector perspective the information technology, health care, and consumer discretionary sectors performed well while the materials and energy sectors substantially underperformed the EM Index.

The year 2013 delivered the second-worst return in the 11-year history of emerging markets debt (the longest shared history of the emerging markets external and local debt indices dates back to 2003). Local debt, as represented by the JPMorgan Government Bond Index – Emerging Markets (“GBI-EM”) Global Diversified^® Index, returned -9.0% for the year, while external debt, as represented by the JPMorgan Emerging Market Bond Index (“EMBI”) Global Diversified^® Index, returned -5.3%. The broad emerging markets debt universe, as represented by the 50% JPMorgan EMBI Global Diversified Index/50% JPMorgan GBI-EM Global Diversified Index (the “Global Diversified Index”), returned -7.1% for the year.

The primary drivers of negative performance in emerging markets debt included (a) a 125 basis point rise in US Treasury yields, (b) worsening current account deficits across the emerging world, which pressured emerging-market currencies, and (c) relative improvement of developed market growth versus the emerging world. The combination of these factors resulted in abysmal performance for emerging markets fixed income, not only against its own history, but

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even compared to other fixed-income markets like US Treasuries and global high yield.

Lazard Emerging Markets Equity Portfolio

For the year ended December 31, 2013, the Lazard Emerging Markets Equity Portfolio’s Institutional Shares posted a total return of -0.80%, while the Open Shares posted a total return of -1.14%, as compared with the -2.60% return for the EM Index.

Shares of Baidu, a Chinese internet search engine company, increased as the company’s mobile strategy continues to gain momentum. Shares of Wynn Macau, a Chinese casino operator, performed well as customer demand remains strong. YPF Sociedad Anonima, an Argentine energy company, bounced back after completing a successful new debt issuance and following an agreement between Argentina and Repsol for compensation for its expropriation. Shares of Cielo, a Brazilian credit card processor, rallied on strong earnings results. Shares of Tata Consultancy Services, an Indian information technology services company, gained amid a strong operational environment with the market shrugging off more recent concerns over a potentially weak seasonal fourth quarter. Stock selection in the information technology and energy sectors, and in Brazil, South Korea, and Russia added value and an off-index exposure to Argentina helped performance.

In contrast, shares of Shoprite Holdings, a South African supermarket operator, declined due to continued concerns regarding the health of the South African consumer. Turkiye Is Bankasi and Akbank, both Turkish banks, declined as a result of macroeconomic concerns related to mass street protests, the recent corruption probe of government cabinet ministers, and the subsequent decline in the lira. Shares of Vale, a Brazilian mining company, were weak as iron ore prices declined amid concerns over the slowing Chinese economy. Punjab National Bank, an Indian bank, came under pressure along with the financials sector in India due to concerns on asset-quality trends and a weakening currency as the expectation of growth was tapered. Stock selection in the consumer staples sector and in South Africa detracted from performance. A higher-than-index exposure to Indonesia and Turkey hurt returns.

Lazard Emerging Markets Core Equity Portfolio

For the period from October 31, 2013 (the Portfolio’s inception date) to December 31, 2013, the Lazard Emerging Markets Core Equity Portfolio’s Institutional Shares posted a total return of -1.70%, while the Open Shares posted a total return of -1.70%, as compared with the -2.89% return for the EM Index.

Shares of Haier Electronics Group, a manufacturer and distributor of white goods in China, performed strongly as the market welcomed the news that Alibaba, the largest online retailer in China, made a decision to make a strategic investment in Haier’s fully owned distribution and logistics subsidiary. Sands China, a developer and operator of casinos in Macau, performed strongly on the back of solid operational results driven by healthy growth in mass gaming revenue and the ramp up of the company’s new Cotai casino property. ENN Energy Holdings, a natural gas distribution company in China, rose on better sales volume growth and regulated price increases. Dongbu Insurance, a South Korean non-life insurance company, outperformed on the expectation that the auto insurance cycle would improve. Increased confidence that Dongbu Insurance would not partake in funding its ailing group affiliates also helped sentiment. Mail.ru Group, a Russian internet access provider, outperformed on better-than-expected results in its gaming business and news of divestitures of its non-core assets Facebook and Qiwi. Stock selection in the consumer discretionary and energy sectors helped performance as did selection in Turkey, Russia, and Latin America.

Shares of PTT, a Thai state-controlled integrated oil and gas company, declined due to concerns over oil prices and political risk in Thailand. Kasikornbank, a Thai commercial bank, declined amid increasing political and economic turmoil in the country. China Overseas Grand Oceans Group (COGO), a property developer, underperformed on renewed concerns about policy-tightening risk as the market was worried about lower-tier cities, where COGO is present, would face further government restrictions. BR Malls Participacoes, a Brazilian mall developer and operator, underperformed as the Brazilian Central Bank had to significantly increase interest rates in Brazil, which could have an adverse effect on consumer spending.

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Lazard Developing Markets Equity Portfolio

For the year ended December 31, 2013, the Lazard Developing Markets Equity Portfolio’s Institutional Shares posted a total return of -3.90%, while the Open Shares posted a total return of -4.18%, as compared with the -2.60% return for the EM Index.

Sands China, a developer and operator of casinos in Macau, did well on strong results and the expectation that a new property would extend its growth. Baidu, a Chinese internet search company, went higher based on strong results and positive momentum with its mobile offering. Yandex, a Russian internet search company, outperformed on results that exceeded expectations over the course of the year. China State Construction International Holdings, a Chinese building construction and engineering services firm, rose as the company’s order book remained strong. Genomma Lab Internacional, a Mexican personal care and over-the-counter products company, outperformed after a continued turnaround of its Mexican operations and strong growth in its international operations. Stock selection in the health care, materials, information technology, and utilities sectors, as well as in Russia, Mexico, and Peru helped performance. In addition, a lower-than-index exposure to the materials sector as well as to Chile, Indonesia, and Thailand, and a higher-than-index exposure to the consumer discretionary and industrials sectors, as well as to Russia, added value.

TPK Holding, a Taiwanese touch panel manufacturer, fell on continued concerns about touch technology adoption in notebooks. We sold the position based on little expected upside, as a drop in market share and weaker pricing at key customers would negatively affect its potential growth rate. Daphne International Holdings, a Chinese women’s footwear retailer, underperformed; we sold the stock during the year based on deteriorating same-store-sales growth and planned store closures. Emlak, a Turkish real estate developer, declined as the dispute between the ruling AK Party and the Gulen movement created investor concern about the government’s share ownership. Pacific Rubiales Energy, a Colombian oil and gas exploration and production company, was weak due to slightly higher-than-expected 2014 capital expenditures guidance. However, this was offset by positive production guidance for this year. Marcopolo, a Brazilian bus body manufacturer, underperformed due to concerns about delays in intercity bus orders. Stock selection in the financials, consumer discretionary, and industrials

sectors, as well as in Taiwan, Brazil, South Korea, and India detracted value. A lower-than-index exposure to the information technology sector, as well as to South Korea and Taiwan, and a higher-than-index exposure to Turkey hurt performance.

Lazard Emerging Markets Equity Blend Portfolio

For the year ended December 31, 2013, the Lazard Emerging Markets Equity Blend Portfolio’s Institutional Shares posted a total return of -1.14%, while Open Shares posted a total return of -1.47%, as compared with the -2.60% return of 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 during 2013 reflected a consideration of many factors: monetary policies of central banks around the globe; global macro data readings (particularly the Purchasing Managers’ Index, which measures economic activity) in China, the United States, the euro zone, and Japan; fiscal policy in developed and emerging markets; geopolitical risks; and equity valuations, along with other data.

We started the period with a 10% overweight to relative growth and an 8% overall weight of small-cap stocks. In mid-February, we kept constant our overweight to growth but we increased the weight of small-cap stocks to 12%, due to their high degree of stock-specific risk. At the beginning of April, we kept the overweight to relative growth constant but we further increased the weight of small caps to 15%. At the end of May, we further increased the weight of small-cap stocks to 17% and reduced the overweight to relative growth versus relative value to 5%, as we thought that revenue and earnings growth objectives for many economically-sensitive companies had been reset lower. At the beginning of August, we moved to a 2% overweight to relative value versus relative growth, as we thought that tighter liquidity conditions would favor more established companies with stable revenues and solid balance sheets compared to companies

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that need to access capital markets to finance their growth. Finally, at the beginning of November, we further increased the overweight to relative value versus relative growth by 6% to 8%.

For the full year of 2013, stock selection and a lower-than-index exposure to materials, stock selection and a higher-than-index exposure to information technology, and stock selection in energy added value, as did stock selection and a higher-than-index exposure in Russia, out-of-index exposures to Macau and Argentina, and stock selection in Mexico. In contrast, stock selection in the industrials, financials, and consumer staples sectors detracted from performance, as did a higher-than-index exposure to Turkey, stock selection in Brazil and South Africa, and stock selection and a lower-than-index exposure to Taiwan. The Portfolio does not include any derivatives positions.

Lazard Emerging Markets Multi-Strategy Portfolio

For the year ended December 31, 2013, the Lazard Emerging Markets Multi-Strategy Portfolio’s Institutional Shares posted a total return of -2.41%, while Open Shares posted a total return of -2.73%, as compared with the -2.60% return of the EM Index.

The Portfolio’s assets are allocated 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 during 2013 reflected a consideration of many factors: monetary policies of central banks around the globe; global macro data readings (particularly the Purchasing Managers’ Index, which measures economic activity) in China, the United States, the euro zone, and Japan; fiscal policy in developed and emerging markets; geopolitical risks; and equity valuations, along with other data.

We started the period with a 17% overweight to equity, a 10% overweight to relative growth within equity, an 8% allocation to small cap within equity, and a 10% overweight to debt within the fixed-income allocation. In mid-February, while keeping constant our overweight to equity, we increased the weight of small cap within equity to 12%, due to

its high degree of stock-specific risk. We also increased the allocation of currencies within fixed income by 3%, to 43%, due to a marginal improvement in emerging-market local interest rate dynamics. At the beginning of April, we reduced our overweight to equity by 5%, to 12%, and further increased the weight of small cap within equity to 15%. We also increased the overweight to debt within fixed income to 13%, as we thought conditions favored it, compared to currencies. At the end of May, we further increased the weight of small cap within equity to 17%, and reduced the overweight to relative growth to 5%, as we thought that revenue and earnings growth objectives for many economically-sensitive companies had been reset lower. At the beginning of August, we reduced our overweight to equity by 5% to 7% and moved to a 2% overweight to relative value versus relative growth within equity, as we thought that tighter liquidity conditions would favor more established companies with stable revenues and solid balance sheets compared to companies that need to access capital markets to finance their growth. Finally, at the beginning of November, we further reduced our overweight to equity by 3% to 4% and increased the overweight to relative value versus relative growth within equity by 6% to 8%.

For the full year of 2013, stock selection and a lower-than-index exposure to materials, stock selection and a higher-than-index exposure to information technology, and stock selection in energy added value, as did stock selection and a higher-than-index exposure in Russia, out-of-index exposures to Macau and Argentina, and stock selection in Mexico. Long positions in the Romanian leu, Polish zloty, and Nigerian naira—implemented via derivative instruments—also contributed, as did local-debt positions in Nigeria and Romania and select positions in corporate debt. In contrast, stock selection in the industrials, financials, and consumer staples sectors detracted from performance, as did a higher-than-index exposure to Turkey, stock selection in Brazil and South Africa, and stock selection and a lower-than-index exposure to Taiwan. Long positions in the Brazilian real, Indian rupee, and the Mexican peso—implemented via derivative instruments—also detracted, as did local-debt positions in Brazil and Russia.

Lazard Emerging Markets Debt Portfolio

For the year ended December 31, 2013, the Lazard Emerging Markets Debt Portfolio’s Institutional Shares posted a total return of -7.13%, while Open Shares posted a total re-

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turn of -7.35%, as compared with the -7.10% return of the Global Diversified Index.

The Portfolio began the year with a significant overweight position in local rates and foreign exchange (which represented nearly two-thirds of the Portfolio), where we believed there was the most value, and gradually transitioned to an overweight position in hard currency debt. We subsequently maintained an overweight exposure to hard currency debt throughout most of the twelve-month period, although we shifted to an overweight position in local debt during the second half of August, as valuations in both currencies and rates appeared very compelling at the time. At the beginning of November, we adjusted the Portfolio’s asset allocation positioning to revert to an underweight position in local debt. External debt once again outperformed local currency debt in December, in a continuation of a trend that has persisted throughout 2013. The Portfolio’s long-standing off-index allocation to corporate bonds contributed to relative returns during the year.

The portfolio management team uses currency forwards, both opportunistically, for direct currency exposure, and defensively, for hedging purposes. In 2013, the use of currency forwards was additive to the Portfolio’s performance.

Lazard Explorer Total Return Portfolio

For the period from June 28, 2013 (the Portfolio’s inception date) to December 31, 2013, the Lazard Explorer Total Return Portfolio’s Institutional Shares posted a total return of 0.38%, while Open Shares posted a total return of 0.27%, as compared with the 0.37% return of the Global Diversified Index.

We started adding to the Portfolio’s positions in short-duration external debt (both sovereign and corporate) and non-US-Treasury-sensitive local bond and currency positions in late August, ahead of the Fed’s September meeting. By

the end of September, the Portfolio held a gross position of 109% and a net position of 96% and, thus, was able to benefit from the rally following a delay in the taper. After reducing long positions in local currency debt in October and November, we incrementally added back risk to the Portfolio in December, closing out the year at a 69% net long position and a 127% gross position.

The one aspect of the Portfolio to which we did not reduce exposure during the period since inception was corporate debt, where we have maintained a net long position between 15% and 20% for most of 2013. Corporate debt continued its 2013 trend of significant outperformance versus the rest of the emerging markets debt asset class. The top contributors from the Portfolio’s external debt exposure were Ivory Coast, Angola, and Iraq. The Portfolio’s position in Venezuela detracted from performance (we exited this position in December), along with a position in Brazilian local currency.

The Portfolio’s duration exposure remained limited, with overall portfolio duration of three years, and almost all of it in non-US-Treasury-sensitive positions. As 2014 begins, we expect that the dispersion of country returns will continue to increase. As such, it is likely that gross positioning in the Portfolio will continue to increase as we aim to profit from relative value positions in countries and securities in the new year.

The portfolio management team uses currency forwards, both opportunistically, for direct currency exposure, and defensively, for hedging purposes, credit default swaps, and interest rate swaps. These derivative positions may create long and/or short exposures in the Portfolio. All short exposures in the Portfolio are implemented via derivatives. In 2013, the use of derivatives was additive to the Portfolio’s performance.

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Notes to Investment Overviews:

All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolios may have been waived or reimbursed by the 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. A period of less than one year is not annualized.

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, 2013; 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.

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   The Lazard Funds, Inc. Performance Overviews

Lazard Emerging Markets Equity Portfolio

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

Average Annual Total Returns*
Years Ended December 31, 2013
	One		Five		Ten
	Year		Years		Years
Institutional Shares**	–0.80	%	15.80	%	13.28	%
Open Shares**	–1.14	%	15.42	%	12.95	%
EM Index	–2.60	%	14.79	%	11.17	%

*	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.

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Lazard Emerging Markets Core Equity Portfolio

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

Total Returns*
Period Ended December 31, 2013
	Since
	Inception		†
Institutional Shares**	–1.70	%
Open Shares**	–1.70	%
EM Index	–2.89	%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the 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 October 31, 2013.

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Lazard Developing Markets Equity Portfolio

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

Average Annual Total Returns*
Periods Ended December 31, 2013
	One		Five		Since
	Year		Years		Inception		†
Institutional Shares**	–3.90	%	17.40	%	7.47	%
Open Shares**	–4.18	%	17.07	%	7.16	%
EM Index	–2.60	%	14.79	%	7.24	%

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

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Lazard Emerging Markets Equity Blend Portfolio

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

Average Annual Total Returns*
Periods Ended December 31, 2013
	One		Since
	Year		Inception		†
Institutional Shares**	–1.14	%	4.19	%
Open Shares**	–1.47	%	3.88	%
EM Index	–2.60	%	4.76	%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	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.

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Lazard Emerging Markets Multi-Strategy Portfolio

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

Average Annual Total Returns*
Periods Ended December 31, 2013
	One		Since
	Year		Inception		†
Institutional Shares**	–2.41	%	–1.50	%
Open Shares**	–2.73	%	–1.80	%
EM Index	–2.60	%	–2.97	%

*	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.

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Lazard Emerging Markets Debt Portfolio

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

Average Annual Total Returns*
Periods Ended December 31, 2013
	One		Since
	Year		Inception		†
Institutional Shares**	–7.13	%	4.16	%
Open Shares**	–7.35	%	3.88	%
JPMorgan EMBI Global Diversified Index	–5.25	%	6.59	%
JPMorgan GBI-EM Global Diversified Index	–8.98	%	1.56	%
Global Diversified Index	–7.10	%	4.13	%

*	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 JPMorgan EMBI Global Diversified Index is a uniquely-weighted version of the EMBI Global Index. The JPMorgan GBI-EM Global Diversified Index is a uniquely-weighted version of the GBI-EM Global Index. These indices 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 Global Diversified Index is a 50/50 blend of the JPMorgan EMBI Global Diversified Index and the JPMorgan GBI-EM Global Diversified Index. The indices are unmanaged, have no fees or costs and are not available for investment.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was February 28, 2011.

14 Annual Report

Lazard Explorer Total Return Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Explorer Total Return Portfolio, JPMorgan EMBI Global Diversified Index, JPMorgan GBI-EM Global Diversified Index and Global Diversified Index*

Total Returns*
Period Ended December 31, 2013
	Since
	Inception		†
Institutional Shares**	0.38	%
Open Shares**	0.27	%
JPMorgan EMBI Global Diversified Index	2.73	%
JPMorgan GBI-EM Global Diversified Index	–1.96	%
Global Diversified Index	0.37	%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the indices have been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to their accuracy. The JPMorgan EMBI Global Diversified Index is a uniquely-weighted version of the EMBI Global Index. The JPMorgan GBI-EM Global Diversified Index is a uniquely-weighted version of the GBI-EM Global Index. These indices 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 Global Diversified Index is a 50/50 blend of the JPMorgan EMBI Global Diversified Index and the JPMorgan GBI-EM Global Diversified Index. The indices are unmanaged, have no fees or costs and are not available for investment.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was June 28, 2013.

Annual Report 15

   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, 2013 through December 31, 2013 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 7/1/13		Ending Account Value 12/31/13		Expenses Paid During Period* 7/1/13 - 12/31/13		Annualized Expense Ratio During Period 7/1/13 - 12/31/13
Emerging Markets Equity
Institutional Shares
Actual	$	1,000.00	$	1,083.50	$	5.74		1.09	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.69	$	5.57		1.09	%
Open Shares
Actual	$	1,000.00	$	1,081.50	$	7.15		1.36	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.34	$	6.93		1.36	%
Emerging Markets Core Equity**
Institutional Shares
Actual	$	1,000.00	$	983.00	$	2.15		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,006.18	$	2.18		1.30	%
Open Shares
Actual	$	1,000.00	$	983.00	$	2.65		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,005.68	$	2.68		1.60	%

16 Annual Report

Portfolio	Beginning Account Value 7/1/13		Ending Account Value 12/31/13		Expenses Paid During Period* 7/1/13 - 12/31/13		Annualized Expense Ratio During Period 7/1/13 - 12/31/13
Developing Markets Equity
Institutional Shares
Actual	$	1,000.00	$	1,106.50	$	6.46		1.22	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.07	$	6.19		1.22	%
Open Shares
Actual	$	1,000.00	$	1,105.30	$	7.77		1.47	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.82	$	7.45		1.47	%
Emerging Markets Equity Blend
Institutional Shares
Actual	$	1,000.00	$	1,071.90	$	7.09		1.36	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.36	$	6.91		1.36	%
Open Shares
Actual	$	1,000.00	$	1,071.50	$	8.38		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.12	$	8.16		1.60	%
Emerging Markets Multi-Strategy
Institutional Shares
Actual	$	1,000.00	$	1,048.30	$	6.81		1.32	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.56	$	6.71		1.32	%
Open Shares
Actual	$	1,000.00	$	1,045.90	$	8.25		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.14	$	8.13		1.60	%
Emerging Markets Debt
Institutional Shares
Actual	$	1,000.00	$	1,007.00	$	4.96		0.98	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.26	$	4.99		0.98	%
Open Shares
Actual	$	1,000.00	$	1,006.10	$	6.57		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.65	$	6.61		1.30	%
Explorer Total Return
Institutional Shares
Actual	$	1,000.00	$	1,003.80	$	6.57		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.65	$	6.61		1.30	%
Open Shares
Actual	$	1,000.00	$	1,002.70	$	8.08		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.14	$	8.14		1.60	%

*	Expenses are equal to the annualized expense ratio of each Share class multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period).
**	The Portfolio commenced operations on October 31, 2013.

Annual Report 17

   The Lazard Funds, Inc. Portfolio Holdings Presented by Sector and Region December 31, 2013

Sector*	Lazard Emerging Markets Equity Portfolio			Lazard Emerging Markets Core Equity Portfolio			Lazard Developing Markets Equity Portfolio			Lazard Emerging Markets Equity Blend Portfolio			Lazard Emerging Markets Multi-Strategy Portfolio
Consumer Discretionary		9.3	%		11.2	%		14.9	%		14.6	%		8.3	%
Consumer Staples		10.3			7.5			1.1			6.5			3.5
Energy		10.4			7.4			12.8			11.8			8.3
Financials		28.5			30.0			26.8			27.0			17.5
Health Care		—			4.5			3.7			1.4			0.8
Industrials		7.3			13.5			19.3			10.7			5.8
Information Technology		16.6			15.1			14.0			15.2			8.4
Materials		5.9			5.9			5.4			2.9			2.1
Telecommunication Services		11.3			2.4			—			6.1			4.1
Utilities		—			2.5			1.6			—			0.9
Sovereign Debt		—			—			—			—			14.6
US Treasury Securities		—			—			—			—			6.8
Short-Term Investments		0.4			—			0.4			3.8			18.9
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Region*	Lazard Emerg\ing Markets Debt Portfolio			Lazard Explorer Total Return Portfolio
Africa		16.6	%		14.5	%
Asia		29.9			22.7
Europe		23.4			8.9
North America		8.0			9.1
South America		13.7			15.9
Short-Term Investments		8.4			28.9
Total Investments		100.0	%		100.0	%

* Represents percentage of total investments.

18 Annual Report

   The Lazard Funds, Inc. Portfolios of Investments December 31, 2013

Description	Shares		Value
Lazard Emerging Markets Equity Portfolio
Common Stocks | 98.4%
Argentina | 1.4%
YPF Sociedad Anonima Sponsored ADR		6,266,244	$	206,535,402
Brazil | 14.1%
Ambev SA ADR		23,904,940		175,701,309
Banco do Brasil SA		48,956,010		506,316,263
BB Seguridade Participacoes SA		24,974,200		259,348,479
CCR SA		21,469,200		161,707,188
Cielo SA		16,779,130		466,906,807
Natura Cosmeticos SA		7,411,600		129,964,138
Souza Cruz SA		11,690,225		119,466,494
Vale SA Sponsored ADR		10,934,700		166,754,175
Via Varejo SA		10,587,000		112,859,193
				2,099,024,046
China | 8.1%
Baidu, Inc. Sponsored ADR (a)		1,442,700		256,627,476
China Construction Bank Corp., Class H		612,495,220		462,078,722
CNOOC, Ltd.		98,481,000		183,136,585
NetEase, Inc. Sponsored ADR		2,658,804		208,981,994
Weichai Power Co., Ltd., Class H		24,964,000		101,088,377
				1,211,913,154
Colombia | 2.3%
Pacific Rubiales Energy Corp.		19,854,900		342,799,592
Egypt | 0.9%
Commercial International Bank Egypt SAE GDR		30,595,029		137,371,680
Hong Kong | 2.9%
China Mobile, Ltd. Sponsored ADR		6,196,404		324,009,965
Huabao International Holdings, Ltd.		193,406,000		107,249,629
				431,259,594
Hungary | 1.3%
OTP Bank PLC		10,349,651		196,379,794

Description	Shares		Value
India | 5.3%
Axis Bank, Ltd.		6,770,406	$	142,292,908
Bank of India		14,298,572		55,247,898
Bharat Heavy Electricals, Ltd.		30,457,971		86,762,501
Jindal Steel & Power, Ltd.		17,713,297		74,713,429
Punjab National Bank, Ltd.		14,764,894		149,463,073
Tata Consultancy Services, Ltd.		7,815,656		274,726,215
				783,206,024
Indonesia | 5.8%
PT Astra International Tbk		216,614,000		121,033,295
PT Bank Mandiri (Persero) Tbk		336,182,930		216,847,658
PT Semen Indonesia (Persero) Tbk		81,763,300		95,065,793
PT Tambang Batubara Bukit Asam (Persero) Tbk		8,612,700	$	7,218,532
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		8,209,355		294,305,377
PT United Tractors Tbk		77,901,984		121,621,832
				856,092,487
Macau | 1.8%
Wynn Macau, Ltd.		58,955,600		267,624,043
Malaysia | 0.8%
British American Tobacco Malaysia Berhad		5,793,200		113,405,582
Mexico | 2.4%
Grupo Mexico SAB de CV, Series B		33,614,347		110,987,975
Grupo Televisa SAB Sponsored ADR		3,975,300		120,292,578
Kimberly-Clark de Mexico SAB de CV, Series A		44,779,248		127,342,970
				358,623,523
Netherlands | 1.2%
OCI NV		3,862,992		173,964,123
Pakistan | 1.8%
Oil & Gas Development Co., Ltd.		47,241,349		124,620,698
Pakistan Petroleum, Ltd.		70,540,702		143,488,754
				268,109,452
Philippines | 1.5%
Philippine Long Distance Telephone Co. Sponsored ADR		3,669,250		220,448,540

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

Annual Report 19

Description	Shares		Value
Lazard Emerging Markets Equity Portfolio (concluded)
Russia | 11.7%
ALROSA AO (b)		105,149,710	$	111,892,015
Gazprom OAO Sponsored ADR		33,116,303		283,144,391
Lukoil OAO Sponsored ADR		1,764,714		110,206,389
Magnit OJSC Sponsored GDR (b), (c)		1,800,865		119,217,263
MegaFon OAO GDR (b), (c)		5,073,659		169,967,576
Mobile TeleSystems OJSC Sponsored ADR		16,257,043		351,639,840
Oriflame Cosmetics SA SDR		2,295,238		70,478,868
Sberbank of Russia (b)		170,450,422		523,669,547
				1,740,215,889
South Africa | 10.2%
Bidvest Group, Ltd.		8,840,067		226,142,229
Imperial Holdings, Ltd.		6,634,965		128,151,598
Nedbank Group, Ltd.		7,457,598		149,294,145
PPC, Ltd.		27,602,555		82,623,472
Sanlam, Ltd.		27,491,821		139,529,509
Shoprite Holdings, Ltd.		14,859,450		232,311,706
Standard Bank Group, Ltd.		8,545,370		105,428,197
Tiger Brands, Ltd.		4,085,820		103,968,344
Truworths International, Ltd.		12,969,183		94,901,286
Vodacom Group, Ltd.		12,422,941		157,507,260
Woolworths Holdings, Ltd.		14,660,071		104,325,481
				1,524,183,227
South Korea | 14.4%
Coway Co., Ltd.		2,004,350		126,108,722
Hanwha Life Insurance Co., Ltd.		27,465,583		197,530,464
Hyundai Mobis Co., Ltd. (a)		1,053,865		293,087,011
KB Financial Group, Inc.		6,903,930		276,392,706
KT&G Corp.		3,028,315		213,776,915
Samsung Electronics Co., Ltd.		390,618		507,820,056
Shinhan Financial Group Co., Ltd.		8,991,764		403,004,157
SK Hynix, Inc. (a)		3,798,810		132,464,309
				2,150,184,340

Description	Shares		Value
Taiwan | 4.0%
Hon Hai Precision Industry Co., Ltd.		63,942,329	$	171,851,647
Taiwan Semiconductor Manufacturing Co., Ltd.		120,982,284		428,259,465
				600,111,112
Thailand | 2.3%
CP All Public Co. Ltd. (b)		82,386,600		105,302,410
PTT Exploration & Production Public Co. Ltd. (b)		24,562,370		124,456,318
The Siam Cement Public Co. Ltd.		9,516,600		117,581,850
				347,340,578
Turkey | 4.2%
Akbank TAS		37,568,705		117,129,048
Koc Holding AS		50,661,168		207,453,829
Turkcell Iletisim Hizmetleri AS (a)		27,968,739		147,717,630
Turkiye Is Bankasi AS, C Shares		73,801,273		159,690,982
				631,991,489
Total Common Stocks (Identified cost $13,771,422,385)				14,660,783,671
Short-Term Investment | 0.4%
State Street Institutional Treasury Money Market Fund (Identified cost $65,835,646)		65,835,646		65,835,646
Total Investments | 98.8% (Identified cost $13,837,258,031) (d)			$	14,726,619,317
Cash and Other Assets in Excess of Liabilities | 1.2%				171,639,542
Net Assets | 100.0%			$	14,898,258,859

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

20 Annual Report

Description	Shares		Value
Lazard Emerging Markets Core Equity Portfolio
Common Stocks | 93.0%
Brazil | 3.7%
Ambev SA ADR		6,100	$	44,835
BR Malls Participacoes SA		2,900		20,958
Cosan, Ltd., Class A		1,795		24,627
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA		1,735		23,680
Via Varejo SA		2,700		28,782
				142,882
Canada | 2.1%
Gran Tierra Energy, Inc. (a)		11,200		81,713
Chile | 1.7%
Aguas Andinas SA		55,224		35,723
Banco Santander Chile		520,573		30,118
				65,841
China | 13.8%
Baidu, Inc. Sponsored ADR (a)		284		50,518
Beijing Capital International Airport Co., Ltd., Class H		40,000		31,415
China Minsheng Banking Corp., Ltd., Class H		32,000		35,490
China Overseas Land & Investment, Ltd.		22,000		61,850
CSR Corp., Ltd., Class H		48,000		39,307
ENN Energy Holdings, Ltd.		8,000		59,270
Industrial and Commercial Bank of China, Ltd., Class H		230,000		155,423
PICC Property & Casualty Co., Ltd., Class H		28,000		41,525
Want Want China Holdings, Ltd.		43,000		61,997
				536,795
Colombia | 0.7%
Pacific Rubiales Energy Corp.		1,585		27,366
Hong Kong | 3.8%
Brilliance China Automotive Holdings, Ltd.		22,000		35,805
China Overseas Grand Oceans Group, Ltd.		22,000		20,938
Haier Electronics Group Co., Ltd.		20,000		58,161
Melco Crown Entertainment, Ltd. ADR (a)		890		34,906
				149,810

Description	Shares		Value
India | 4.2%
HDFC Bank, Ltd. Sponsored ADR		869	$	29,928
ICICI Bank, Ltd. Sponsored ADR		1,740		64,676
Tata Motors, Ltd. Sponsored ADR		2,200		67,760
				162,364
Indonesia | 1.8%
PT Bank Mandiri (Persero) Tbk		55,000		35,476
PT Semen Indonesia (Persero) Tbk		28,500		33,137
				68,613
Macau | 2.7%
Sands China, Ltd.		12,800		104,984
Malaysia | 2.0%
CIMB Group Holdings Berhad		12,500		29,080
SapuraKencana Petroleum Berhad		31,600		47,272
				76,352
Mexico | 5.9%
Cemex SAB de CV Sponsored ADR (a)		5,525		65,361
Fibra Uno Administracion SA de CV REIT		14,100		45,475
Genomma Lab Internacional SAB de CV, B Shares (a)		15,451		43,147
Grupo Financiero Banorte SAB de CV, Class O		7,400		51,768
Mexichem SAB de CV		6,100		25,369
				231,120
Peru | 0.8%
Credicorp, Ltd.		230		30,528
Philippines | 2.7%
Alliance Global Group, Inc.		75,600		43,947
GT Capital Holdings, Inc.		1,800		31,310
SM Investments Corp.		1,980		31,719
				106,976
Poland | 0.7%
Eurocash SA		1,704		26,899
Portugal | 1.0%
Jeronimo Martins SGPS SA		1,960		38,329
Russia | 9.6%
Eurasia Drilling Co., Ltd. GDR		837		37,665
Lukoil OAO Sponsored ADR		854		53,332
Magnit OJSC Sponsored GDR (b), (c)		875		57,925
Mail.ru Group, Ltd. GDR		1,211		54,011
MegaFon OAO GDR (b), (c)		1,705		57,118
Sberbank of Russia Sponsored ADR		9,178		115,457
				375,508

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

Annual Report 21

Description	Shares		Value
Lazard Emerging Markets Core Equity Portfolio (concluded)
South Africa | 4.7%
Aspen Pharmacare Holdings, Ltd.		1,645	$	42,139
Clicks Group, Ltd.		4,363		26,116
Life Healthcare Group Holdings Pte, Ltd.		11,452		45,699
MTN Group, Ltd.		1,778		36,784
Woolworths Holdings, Ltd.		4,293		30,550
				181,288
South Korea | 13.3%
DGB Financial Group, Inc.		3,800		59,412
Dongbu Insurance Co., Ltd.		1,223		65,128
Hyundai Glovis Co., Ltd.		181		39,618
LG Household & Health Care, Ltd.		88		45,695
Samsung Electronics Co., Ltd.		145		188,506
SK Hynix, Inc. (a)		1,750		61,022
SK Telecom Co., Ltd. ADR		2,300		56,626
				516,007
Switzerland | 1.2%
Dufry AG (a)		277		48,628
Taiwan | 8.8%
Advanced Semiconductor Engineering, Inc. ADR		6,200		29,760
Delta Electronics, Inc.		9,000		51,336
Hon Hai Precision Industry Co., Ltd. GDR		12,071		64,218
Largan Precision Co., Ltd.		2,000		81,534
Merida Industry Co., Ltd.		5,000		36,321
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		4,479		78,114
				341,283
Thailand | 2.7%
Bangkok Bank Public Co. Ltd.		4,900		26,543
Kasikornbank Public Co. Ltd.		8,400		40,517
PTT Public Co. Ltd. (b)		4,400		38,296
				105,356

Description	Shares		Value
Turkey | 3.0%
TAV Havalimanlari Holding AS		8,757	$	62,957
Turk Traktor ve Ziraat Makineleri AS		1,032		29,534
Turkiye Garanti Bankasi AS		8,169		26,457
				118,948
United Kingdom | 1.0%
Hikma Pharmaceuticals PLC		2,049		40,751
United States | 1.1%
First Cash Financial Services, Inc. (a)		665		41,124
Total Common Stocks (Identified cost $3,645,375)				3,619,465
Preferred Stocks | 5.6%
Brazil | 5.6%
Alpargatas SA		5,200		32,621
Companhia Brasileira de Distribuicao Grupo Pao de Acucar Sponsored ADR		610		27,249
Itau Unibanco Holding SA ADR		6,480		87,934
Klabin SA		7,000		36,376
Suzano Papel e Celulose SA		8,400		32,898
Total Preferred Stocks (Identified cost $223,536)				217,078
Total Investments | 98.6% (Identified cost $3,868,911) (d)			$	3,836,543
Cash and Other Assets in Excess of Liabilities | 1.4%				55,871
Net Assets | 100.0%			$	3,892,414

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

22 Annual Report

Description	Shares		Value
Lazard Developing Markets Equity Portfolio
Common Stocks | 94.5%
Brazil | 11.1%
Cyrela Brazil Realty SA Empreendimentos e Participacoes		1,536,760	$	9,379,822
EDP - Energias do Brasil SA		856,600		4,120,975
Estacio Participacoes SA		1,466,800		12,689,366
Gerdau SA Sponsored ADR		889,950		6,977,208
Localiza Rent a Car SA		315,320		4,447,960
Petroleo Brasileiro SA Sponsored ADR		713,500		10,481,315
Totvs SA		335,763		5,260,062
Vale SA Sponsored ADR		578,415		8,820,829
Via Varejo SA		437,300		4,661,691
				66,839,228
China | 15.7%
AAC Technologies Holdings, Inc.		1,243,700		6,038,624
Agricultural Bank of China, Ltd., Class H		23,986,500		11,785,534
Baidu, Inc. Sponsored ADR (a)		58,165		10,346,390
China Construction Bank Corp., Class H		5,646,184		4,259,595
China Merchants Bank Co., Ltd., Class H		4,187,711		8,921,629
China National Materials Co., Ltd., Class H		17,964,890		3,868,997
First Tractor Co., Ltd., Class H		3,686,000		2,875,863
New Oriental Education & Technology Group, Inc. Sponsored ADR		172,200		5,424,300
Ping An Insurance (Group) Co. of China, Ltd., Class H		2,007,000		18,027,101
Zhuzhou CSR Times Electric Co., Ltd., Class H		4,640,000		16,754,575
Zoomlion Heavy Industry Science and Technology Co., Ltd., Class H		6,963,200		6,519,329
				94,821,937
Colombia | 5.0%
Bancolombia SA Sponsored ADR		134,100		6,573,582
Cemex Latam Holdings SA (a)		1,277,751		9,798,298
Pacific Rubiales Energy Corp.		791,929		13,672,843
				30,044,723
Hong Kong | 4.6%
China State Construction International Holdings, Ltd.		6,997,340		12,561,156
Techtronic Industries Co., Ltd.		5,401,000		15,358,195
				27,919,351

Description	Shares		Value
India | 10.8%
Aurobindo Pharma, Ltd.		901,100	$	5,716,460
Cairn India, Ltd.		2,095,264		10,944,626
HDFC Bank, Ltd. Sponsored ADR		262,100		9,026,724
ICICI Bank, Ltd. Sponsored ADR		412,330		15,326,306
Maruti Suzuki India, Ltd.		165,348		4,710,099
Shriram Transport Finance Co., Ltd.		860,272		9,319,671
Tata Motors, Ltd. Sponsored ADR		333,900		10,284,120
				65,328,006
Indonesia | 1.3%
PT Bank Rakyat Indonesia (Persero) Tbk		13,412,800		7,990,370
Macau | 3.1%
Sands China, Ltd.		2,261,200		18,546,138
Mexico | 4.0%
Genomma Lab Internacional SAB de CV, B Shares (a)		5,758,000		16,079,093
Grupo Financiero Banorte SAB de CV, Class O		1,112,457		7,782,470
				23,861,563
Peru | 1.6%
Credicorp, Ltd.		71,500		9,490,195
Philippines | 0.7%
SM Investments Corp.		278,378		4,459,567
Qatar | 0.9%
Qatar Electricity & Water Co.		111,535		5,571,390
Russia | 15.6%
Eurasia Drilling Co., Ltd. GDR		183,446		8,255,070
Globaltrans Investment PLC Sponsored GDR		1,215,487		19,326,244
Novatek OAO Sponsored GDR		119,887		16,412,530
Sberbank of Russia (b)		3,757,329		11,543,525
TMK OAO GDR		711,742		8,391,438
VTB Bank OJSC GDR		3,333,091		9,982,608
X5 Retail Group NV GDR (a)		394,031		6,607,900
Yandex NV Class A (a)		315,300		13,605,195
				94,124,510
South Africa | 1.9%
Exxaro Resources, Ltd.		445,118		6,214,679
Standard Bank Group, Ltd.		435,425		5,372,040
				11,586,719

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

Annual Report 23

Description	Shares		Value
Lazard Developing Markets Equity Portfolio (concluded)
South Korea | 5.6%
Kia Motors Corp.		129,952	$	6,907,952
Korea Aerospace Industries, Ltd.		188,960		5,192,439
Samsung Electronics Co., Ltd.		16,514		21,468,904
				33,569,295
Taiwan | 5.8%
Catcher Technology Co., Ltd.		1,366,000		8,868,791
Hiwin Technologies Corp.		1,129,370		9,530,309
MediaTek, Inc.		1,132,000		16,845,068
				35,244,168
Turkey | 4.2%
Aselsan Elektronik Sanayi Ve Ticaret AS		1,700,339		6,836,170
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		6,464,731		6,317,327
Pegasus Hava Tasimaciligi AS		381,769		6,448,680
TAV Havalimanlari Holding AS		795,572		5,719,678
				25,321,855
United States | 2.6%
First Cash Financial Services, Inc. (a)		131,700		8,144,328
Freeport-McMoRan Copper & Gold, Inc.		194,500		7,340,430
				15,484,758
Total Common Stocks (Identified cost $562,002,622)				570,203,773

Description	Shares		Value
Preferred Stocks | 3.0%
Brazil | 3.0%
Banco Bradesco SA ADR		660,188	$	8,272,155
Marcopolo SA		4,468,300		9,659,142
Total Preferred Stocks (Identified cost $23,394,648)				17,931,297
Short-Term Investment | 0.4%
State Street Institutional Treasury Money Market Fund (Identified cost $2,200,961)		2,200,961		2,200,961
Total Investments | 97.9% (Identified cost $587,598,231) (d)			$	590,336,031
Cash and Other Assets in Excess of Liabilities | 2.1%				12,703,594
Net Assets | 100.0%			$	603,039,625

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

24 Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio
Common Stocks | 93.5%
Argentina | 1.6%
YPF Sociedad Anonima Sponsored ADR		296,975	$	9,788,296
Brazil | 10.5%
Ambev SA ADR		221,700		1,629,495
Banco do Brasil SA		849,207		8,782,728
Brasil Insurance Participacoes e Administracao SA		361,705		2,797,972
Cielo SA Sponsored ADR		368,896		10,329,088
Companhia de Locacao das Americas		718,500		2,131,822
Cyrela Brazil Realty SA Empreendimentos e Participacoes		667,300		4,072,955
Estacio Participacoes SA		912,400		7,893,222
Even Construtora e Incorporadora SA		902,100		3,116,293
Grendene SA		324,775		2,490,274
Iochpe-Maxion SA		224,900		2,492,799
Natura Cosmeticos SA		204,410		3,584,377
Petroleo Brasileiro SA Sponsored ADR		316,200		4,644,978
Souza Cruz SA		398,895		4,076,447
Tegma Gestao Logistica SA		297,245		2,267,844
Via Varejo SA		253,700		2,704,485
				63,014,779
Cambodia | 0.4%
NagaCorp, Ltd.		2,350,000		2,482,042
China | 12.9%
AAC Technologies Holdings, Inc.		613,640		2,979,450
Agricultural Bank of China, Ltd., Class H		15,619,000		7,674,244
Baidu, Inc. Sponsored ADR (a)		97,146		17,280,330
China Construction Bank Corp., Class H		13,639,461		10,289,884
China Lesso Group Holdings, Ltd.		4,306,000		2,993,093
China ZhengTong Auto Services Holdings, Ltd. (a)		4,929,500		3,159,488
CNOOC, Ltd.		3,325,000		6,183,214
Greatview Aseptic Packaging Co., Ltd.		5,273,000		3,114,445
Ping An Insurance (Group) Co. of China, Ltd., Class H		982,000		8,820,435
Prince Frog International Holdings, Ltd.		4,642,000		1,909,648
Shenguan Holdings Group, Ltd.		7,034,000		3,138,599
Shenzhou International Group Holdings, Ltd.		779,000		2,943,489

Description	Shares		Value
Zhuzhou CSR Times Electric Co., Ltd., Class H		789,000	$	2,849,000
Zoomlion Heavy Industry Science and Technology Co., Ltd., Class H		3,759,040		3,519,419
				76,854,738
Colombia | 3.0%
Bancolombia SA Sponsored ADR		72,320		3,545,126
Pacific Rubiales Energy Corp.		821,700		14,186,847
				17,731,973
Egypt | 0.8%
Commercial International Bank Egypt SAE GDR		1,124,855		5,050,599
Georgia | 0.5%
Bank of Georgia Holdings PLC		68,094		2,700,608
Hong Kong | 3.7%
Anxin-China Holdings, Ltd.		7,720,000		2,459,075
China Mobile, Ltd. Sponsored ADR		122,800		6,421,212
China State Construction International Holdings, Ltd.		4,438,504		7,967,705
Techtronic Industries Co., Ltd.		1,944,500		5,529,348
				22,377,340
Hungary | 1.0%
OTP Bank PLC		307,278		5,830,457
India | 3.4%
Axis Bank, Ltd.		347,324		7,299,672
ICICI Bank, Ltd. Sponsored ADR		204,590		7,604,610
Tata Motors, Ltd. Sponsored ADR		168,900		5,202,120
				20,106,402
Indonesia | 4.6%
PT Bank Mandiri (Persero) Tbk		11,297,000		7,286,890
PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk		31,230,000		2,283,870
PT Bank Rakyat Indonesia (Persero) Tbk		8,030,618		4,784,058
PT Bekasi Fajar Industrial Estate Tbk		57,025,000		2,085,138
PT Pakuwon Jati Tbk		127,418,000		2,826,858
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		120,050		4,303,792
PT United Tractors Tbk		2,461,015		3,842,176
				27,412,782
Kazakhstan | 0.4%
KCell JSC GDR		127,876		2,186,680

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

Annual Report 25

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio (continued)
Macau | 2.4%
Sands China, Ltd.		796,600	$	6,533,634
Wynn Macau, Ltd.		1,761,600		7,996,637
				14,530,271
Mexico | 4.7%
Genomma Lab Internacional SAB de CV, B Shares (a)		3,022,156		8,439,307
Grupo Financiero Banorte SAB de CV, Class O		640,000		4,477,280
Grupo Mexico SAB de CV, Series B		939,001		3,100,397
Grupo Televisa SAB Sponsored ADR		206,373		6,244,847
Kimberly-Clark de Mexico SAB de CV, Series A		2,072,700		5,894,332
				28,156,163
Netherlands | 0.7%
OCI NV		93,388		4,205,590
Peru | 0.6%
Credicorp, Ltd.		25,100		3,331,523
Philippines | 0.7%
Philippine Long Distance Telephone Co. Sponsored ADR		67,192		4,036,895
Russia | 14.5%
DIXY Group (a), (b)		134,785		1,667,857
Eurasia Drilling Co., Ltd. GDR		135,435		6,094,575
Gazprom OAO Sponsored ADR		791,091		6,763,828
Globaltrans Investment PLC Sponsored GDR		693,977		11,034,234
Lukoil OAO Sponsored ADR		82,468		5,205,380
MegaFon OAO GDR (b), (c)		162,471		5,442,779
Mobile TeleSystems OJSC Sponsored ADR		435,020		9,409,483
Novatek OAO Sponsored GDR		68,901		9,432,547
Oriflame Cosmetics SA SDR		129,638		3,980,737
Sberbank of Russia (b)		1,972,545		6,060,189
Sberbank of Russia Sponsored ADR		840,397		10,563,790
TMK OAO GDR		323,185		3,810,351
Yandex NV Class A (a)		166,580		7,187,927
				86,653,677

Description	Shares		Value
South Africa | 3.9%
AVI, Ltd.		526,340	$	2,879,065
Exxaro Resources, Ltd.		304,065		4,245,315
Standard Bank Group, Ltd.		808,617		9,976,283
Tiger Brands, Ltd.		148,061		3,767,581
Truworths International, Ltd.		315,776		2,310,674
				23,178,918
South Korea | 9.5%
Hanssem Co., Ltd. (a)		54,160		2,581,369
Hanwha Life Insurance Co., Ltd.		762,202		5,481,701
Hyundai Mobis Co., Ltd. (a)		35,497		9,871,957
KT Skylife Co., Ltd. (a)		123,980		3,471,463
KT&G Corp.		88,596		6,254,230
Partron Co., Ltd.		211,766		2,859,398
Samsung Electronics Co., Ltd.		13,057		16,974,657
Shinhan Financial Group Co., Ltd.		203,100		9,102,791
				56,597,566
Taiwan | 6.6%
Catcher Technology Co., Ltd.		809,000		5,252,453
Chailease Holding Co., Ltd.		835,000		2,196,520
Hon Hai Precision Industry Co., Ltd.		1,825,279		4,905,627
King Slide Works Co., Ltd.		271,000		3,055,211
Makalot Industrial Co., Ltd.		652,000		3,522,137
MediaTek, Inc.		467,000		6,949,335
Radiant Opto-Electronics Corp.		1,042,280		3,811,919
Taiwan Semiconductor Manufacturing Co., Ltd.		2,819,000		9,978,845
				39,672,047
Thailand | 1.3%
Dynasty Ceramic Public Co. Ltd. (b)		1,612,100		2,391,658
Major Cineplex Group Public Co. Ltd. (b)		5,179,900		2,758,620
Supalai Public Co. Ltd. (b)		6,347,800		2,820,386
				7,970,664
Turkey | 4.8%
Aselsan Elektronik Sanayi Ve Ticaret AS		737,637		2,965,651
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		2,758,260		2,695,368
Koc Holding AS ADR		372,212		7,671,289
Tofas Turk Otomobil Fabrikasi AS		429,565		2,678,535
Turkcell Iletisim Hizmetleri AS ADR (a)		354,955		4,738,649
Turkiye Is Bankasi AS, C Shares		2,356,311		5,098,579
Turkiye Sinai Kalkinma Bankasi AS		3,428,072		2,919,205
				28,767,276

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

26 Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio (concluded)
United States | 1.0%
Freeport-McMoRan Copper & Gold, Inc.		163,000	$	6,151,620
Total Common Stocks (Identified cost $534,585,911)				558,788,906
Preferred Stocks | 2.8%
Brazil | 2.8%
Banco ABC Brasil SA		581,925		3,117,742
Banco Bradesco SA ADR		298,720		3,742,961
Marcopolo SA		2,239,400		4,840,920
Vale SA Sponsored ADR		343,420		4,811,314
Total Preferred Stocks (Identified cost $18,725,862)				16,512,937

Description	Shares		Value
Short-Term Investment | 3.8%
State Street Institutional Treasury Money Market Fund (Identified cost $22,830,542)		22,830,542	$	22,830,542
Total Investments | 100.1% (Identified cost $576,142,315) (d)			$	598,132,385
Liabilities in Excess of Cash and Other Assets | (0.1)%				(784,470)
Net Assets | 100.0%			$	597,347,915

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

Annual Report 27

Description	Shares		Value
Lazard Emerging Markets Multi-Strategy Portfolio
Common Stocks | 51.4%
Argentina | 0.9%
YPF Sociedad Anonima Sponsored ADR		60,587	$	1,996,947
Brazil | 5.8%
Ambev SA ADR		46,100		338,835
Banco do Brasil SA		178,690		1,848,060
Brasil Insurance Participacoes e Administracao SA		74,005		572,466
Cielo SA Sponsored ADR		74,057		2,073,596
Companhia de Locacao das Americas		154,900		459,595
Cyrela Brazil Realty SA Empreendimentos e Participacoes		139,100		849,016
Estacio Participacoes SA		190,200		1,645,431
Even Construtora e Incorporadora SA		188,300		650,480
Grendene SA		66,695		511,397
Iochpe-Maxion SA		47,000		520,949
Natura Cosmeticos SA		42,655		747,965
Petroleo Brasileiro SA Sponsored ADR		65,900		968,071
Souza Cruz SA		83,640		854,746
Tegma Gestao Logistica SA		62,032		473,276
Via Varejo SA		52,200		556,461
				13,070,344
Cambodia | 0.2%
NagaCorp, Ltd.		504,000		532,319
China | 7.1%
AAC Technologies Holdings, Inc.		128,000		621,487
Agricultural Bank of China, Ltd., Class H		3,256,000		1,599,804
Baidu, Inc. Sponsored ADR (a)		19,786		3,519,534
China Construction Bank Corp., Class H		2,845,065		2,146,374
China Lesso Group Holdings, Ltd.		900,000		625,588
China ZhengTong Auto Services Holdings, Ltd. (a)		1,031,000		660,804
CNOOC, Ltd.		693,000		1,288,712
Greatview Aseptic Packaging Co., Ltd.		1,082,000		639,073
Ping An Insurance (Group) Co. of China, Ltd., Class H		205,000		1,841,333
Prince Frog International Holdings, Ltd.		968,000		398,220
Shenguan Holdings Group, Ltd.		1,472,000		656,812
Shenzhou International Group Holdings, Ltd.		163,000		615,903

Description	Shares		Value
Zhuzhou CSR Times Electric Co., Ltd., Class H		164,000	$	592,188
Zoomlion Heavy Industry Science and
Technology Co., Ltd., Class H		783,580		733,631
				15,939,463
Colombia | 1.6%
Bancolombia SA Sponsored ADR		15,080		739,222
Pacific Rubiales Energy Corp.		172,050		2,970,484
				3,709,706
Egypt | 0.5%
Commercial International Bank Egypt SAE GDR		228,425		1,025,628
Georgia | 0.3%
Bank of Georgia Holdings PLC		14,261		565,591
Hong Kong | 2.0%
Anxin-China Holdings, Ltd.		1,644,000		523,668
China Mobile, Ltd. Sponsored ADR		25,728		1,345,317
China State Construction International Holdings, Ltd.		925,600		1,661,575
Techtronic Industries Co., Ltd.		405,500		1,153,073
				4,683,633
Hungary | 0.5%
OTP Bank PLC		64,324		1,220,518
India | 1.9%
Axis Bank, Ltd.		71,714		1,507,206
ICICI Bank, Ltd. Sponsored ADR		42,700		1,587,159
Tata Motors, Ltd. Sponsored ADR		34,800		1,071,840
				4,166,205
Indonesia | 2.5%
PT Bank Mandiri (Persero) Tbk		2,259,500		1,457,443
PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk		6,731,000		492,242
PT Bank Rakyat Indonesia (Persero) Tbk		1,674,000		997,247
PT Bekasi Fajar Industrial Estate Tbk		12,141,500		443,958
PT Pakuwon Jati Tbk		27,431,500		608,587
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		24,260		869,721
PT United Tractors Tbk		505,515		789,218
				5,658,416
Kazakhstan | 0.2%
KCell JSC GDR		26,247		448,824

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

28 Annual Report

Description	Shares		Value
Lazard Emerging Markets Multi-Strategy Portfolio (continued)
Macau | 1.3%
Sands China, Ltd.		162,500	$	1,332,809
Wynn Macau, Ltd.		368,800		1,674,137
				3,006,946
Mexico | 2.6%
Genomma Lab Internacional SAB de CV, B Shares (a)		630,000		1,759,262
Grupo Financiero Banorte SAB de CV, Class O		133,400		933,233
Grupo Mexico SAB de CV, Series B		192,709		636,287
Grupo Televisa SAB Sponsored ADR		43,292		1,310,016
Kimberly-Clark de Mexico SAB de CV, Series A		417,435		1,187,099
				5,825,897
Netherlands | 0.4%
OCI NV		19,693		886,845
Peru | 0.3%
Credicorp, Ltd.		5,200		690,196
Philippines | 0.4%
Philippine Long Distance Telephone Co. Sponsored ADR		13,735		825,199
Russia | 8.0%
DIXY Group OJSC (a), (b)		28,856		357,070
Eurasia Drilling Co., Ltd. GDR		28,232		1,270,440
Gazprom OAO Sponsored ADR		166,111		1,420,249
Globaltrans Investment PLC Sponsored GDR		143,869		2,287,517
Lukoil OAO Sponsored ADR		17,185		1,084,717
MegaFon OAO GDR (b), (c)		34,061		1,141,044
Mobile TeleSystems OJSC Sponsored ADR		91,610		1,981,524
Novatek OAO Sponsored GDR		14,363		1,966,295
Oriflame Cosmetics SA SDR		26,556		815,443
Sberbank of Russia (b)		411,193		1,263,296
Sberbank of Russia Sponsored ADR		173,512		2,181,046
TMK OAO GDR		67,370		794,292
Yandex NV Class A (a)		34,770		1,500,326
				18,063,259
South Africa | 2.1%
AVI, Ltd.		110,072		602,091
Exxaro Resources, Ltd.		63,385		884,973

Description	Shares		Value
Standard Bank Group, Ltd.		169,623	$	2,092,718
Tiger Brands, Ltd.		30,277		770,433
Truworths International, Ltd.		65,121		476,519
				4,826,734
South Korea | 5.2%
Hanssem Co., Ltd. (a)		11,130		530,477
Hanwha Life Insurance Co., Ltd.		154,650		1,112,231
Hyundai Mobis Co., Ltd. (a)		7,421		2,063,830
KT Skylife Co., Ltd. (a)		25,930		726,045
KT&G Corp.		17,693		1,248,997
Partron Co., Ltd.		44,219		597,073
Samsung Electronics Co., Ltd.		2,739		3,560,817
Shinhan Financial Group Co., Ltd.		37,960		1,701,339
Shinhan Financial Group Co., Ltd. ADR		2,832		129,422
				11,670,231
Taiwan | 3.6%
Catcher Technology Co., Ltd.		169,000		1,097,237
Chailease Holding Co., Ltd.		169,000		444,565
Hon Hai Precision Industry Co., Ltd. GDR		189,392		1,007,565
King Slide Works Co., Ltd.		52,000		586,240
Makalot Industrial Co., Ltd.		135,000		729,277
MediaTek, Inc.		97,000		1,443,438
Radiant Opto-Electronics Corp.		214,930		786,061
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		115,376		2,012,158
				8,106,541
Thailand | 0.7%
Dynasty Ceramic Public Co. Ltd. (b)		331,800		492,247
Major Cineplex Group Public Co. Ltd. (b)		1,068,500		569,043
Supalai Public Co. Ltd. (b)		1,303,200		579,024
				1,640,314
Turkey | 2.7%
Aselsan Elektronik Sanayi Ve Ticaret AS		153,767		618,216
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		556,294		543,610
Koc Holding AS ADR		78,404		1,615,906
Tofas Turk Otomobil Fabrikasi AS		88,109		549,400
Turkcell Iletisim Hizmetleri AS ADR (a)		73,750		984,563
Turkiye Is Bankasi AS, C Shares		489,967		1,060,189
Turkiye Sinai Kalkinma Bankasi AS		717,175		610,717
				5,982,601
United States | 0.6%
Freeport-McMoRan Copper & Gold, Inc.		33,900		1,279,386
Total Common Stocks (Identified cost $115,881,894)				115,821,743

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

Annual Report 29

Description	Shares		Value
Lazard Emerging Markets Multi-Strategy Portfolio (continued)
Preferred Stocks | 1.5%
Brazil | 1.5%
Banco ABC Brasil SA		121,485	$	650,872
Banco Bradesco SA ADR		62,280		780,369
Marcopolo SA		460,900		996,329
Vale SA Sponsored ADR		71,810		1,006,058
Total Preferred Stocks (Identified cost $4,394,133)				3,433,628

Description	Security Currency	Principal Amount (000)		Value
Corporate Bonds | 4.6%
Argentina | 0.1%
YPF Sociedad Anonima, 8.875%, 12/19/18 (c)	USD		175	$	181,562
Brazil | 0.2%
Banco do Brasil SA, 9.250%, 04/15/23	USD		400		412,000
Bulgaria | 0.1%
Bulgarian Energy Holding EAD, 4.250%, 11/07/18	EUR		225		301,485
China | 0.2%
China Lesso Group Holdings, Ltd., 7.875%, 05/13/16	USD		200		210,000
MIE Holdings Corp., 9.750%, 05/12/16	USD		200		212,000
					422,000
Colombia | 0.6%
Banco GNB Sudameris SA, 3.875%, 05/02/18 (c)	USD		225		215,719
Grupo Aval, Ltd., 4.750%, 09/26/22	USD		200		184,500
Millicom International Cellular SA, 4.750%, 05/22/20	USD		525		504,000
Pacific Rubiales Energy Corp., 7.250%, 12/12/21	USD		400		424,000
					1,328,219

Description	Security Currency	Principal Amount (000)		Value
Georgia | 0.2%
Bank of Georgia JSC, 7.750%, 07/05/17	USD		400	$	415,000
Guatemala | 0.2%
Cementos Progreso Trust, 7.125%, 11/06/23 (c)	USD		200		202,750
Industrial Senior Trust, 5.500%, 11/01/22 (c)	USD		325		299,000
					501,750
India | 0.2%
Vedanta Resources PLC, 9.500%, 07/18/18	USD		425		471,750
Indonesia | 0.2%
PT Gajah Tunggal Tbk: 7.750%, 02/06/18	USD		200		196,000
7.750%, 02/06/18 (c)	USD		200		196,000
					392,000
Kazakhstan | 0.3%
Halyk Savings Bank of Kazakhstan JSC, 7.250%, 05/03/17	USD		450		487,485
Zhaikmunai LP, 7.125%, 11/13/19	USD		200		209,240
					696,725
Mexico | 0.1%
America Movil SAB de CV, 6.450%, 12/05/22	MXN		2,000		141,159
Bio Pappel SAB de CV, 10.000%, 08/27/16	USD		120		119,846
					261,005
Nigeria | 0.4%
Afren PLC, 6.625%, 12/09/20 (c)	USD		200		200,000
FBN Finance Co. BV: 8.250%, 08/07/20	USD		200		205,500
8.250%, 08/07/20 (c)	USD		250		252,240
GTB Finance BV, 6.000%, 11/08/18 (c)	USD		325		318,754
					976,494

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

30 Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Multi-Strategy Portfolio (continued)
Russia | 1.4%
Alliance Oil Co., Ltd., 7.000%, 05/04/20	USD		200	$	192,000
ALROSA Finance SA, 7.750%, 11/03/20	USD		225		249,412
EDC Finance, Ltd., 4.875%, 04/17/20 (c)	USD		400		385,891
Gazprom Neft OAO, 4.375%, 09/19/22	USD		300		274,875
Gazprom OAO, 8.625%, 04/28/34	USD		240		283,200
Lukoil International Finance BV, 6.125%, 11/09/20	USD		250		270,875
Metalloinvest Finance, Ltd.: 5.625%, 04/17/20	USD		200		194,000
5.625%, 04/17/20 (c)	USD		250		242,467
MTS International Funding, Ltd.: 8.625%, 06/22/20	USD		100		118,000
5.000%, 05/30/23 (c)	USD		200		187,750
Rosneft Oil Co., 4.199%, 03/06/22	USD		300		275,250
Sberbank of Russia, 5.250%, 05/23/23	USD		200		186,760
Sibur Securities, Ltd., 3.914%, 01/31/18	USD		250		244,063
					3,104,543
Trinidad and Tobago | 0.3%
Petroleum Co. of Trinidad and Tobago Ltd.:
9.750%, 08/14/19	USD		300		375,750
6.000%, 05/08/22	USD		195		205,992
					581,742
Turkey | 0.1%
Akbank TAS, 7.500%, 02/05/18 (c)	TRY		300		119,309
Ukraine | 0.0%
DTEK Finance BV, 9.500%, 04/28/15	USD		100		100,625
Total Corporate Bonds (Identified cost $10,503,943)					10,266,209

Description	Security Currency	Principal Amount (000)		Value
Foreign Government Obligations | 15.2%
Angola | 0.7%
Republic of Angola Northern Lights III BV, 7.000%, 08/16/19	USD		1,490	$	1,611,062
Bahrain | 0.6%
Kingdom of Bahrain:
6.125%, 08/01/23	USD		200		206,300
6.125%, 08/01/23 (c)	USD		1,150		1,186,225
					1,392,525
Belize | 0.1%
Republic of Belize, 5.000%, 02/20/38 (e)	USD		415		260,413
Bolivia | 0.4%
Bolivia Government Bonds:
4.875%, 10/29/22	USD		650		619,125
5.950%, 08/22/23 (c)	USD		375		369,375
					988,500
Brazil | 2.5%
Brazil Letras do Tesouro Nacional:
0.000%, 01/01/15	BRL		3,560		1,362,334
0.000%, 01/01/17	BRL		4,035		1,204,413
Brazil Minas SPE:
5.333%, 02/15/28	USD		625		579,687
5.333%, 02/15/28 (c)	USD		550		509,322
Brazil NTN-B:
6.000%, 08/15/16	BRL		680		688,269
6.000%, 08/15/18	BRL		270		269,224
6.000%, 08/15/20	BRL		40		39,433
Brazil NTN-F:
10.000%, 01/01/21	BRL		600		208,213
10.000%, 01/01/23	BRL		2,017		722,073
					5,582,968
Colombia | 0.2%
Republic of Colombia, 8.125%, 05/21/24	USD		375		481,875
Congo | 0.3%
Republic of Congo:
3.500%, 06/30/29 (c), (e)	USD		228		205,200
3.500%, 06/30/29 (e)	USD		502		443,916
					649,116

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

Annual Report 31

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Multi-Strategy Portfolio (continued)
Dominican Republic | 0.2%
Dominican Republic:
9.040%, 01/23/18	USD		152	$	164,668
5.875%, 04/18/24	USD		225		214,875
					379,543
Ecuador | 0.3%
Republic of Ecuador, 9.375%, 12/15/15	USD		650		685,750
El Salvador | 0.3%
Republic of El Salvador:
8.250%, 04/10/32	USD		270		287,888
7.650%, 06/15/35	USD		350		340,900
					628,788
Gabon | 0.2%
Gabonese Republic, 6.375%, 12/12/24 (c)	USD		450		451,125
Georgia | 0.2%
Republic of Georgia, 6.875%, 04/12/21	USD		400		428,000
Guatemala | 0.1%
Republic of Guatemala, 5.750%, 06/06/22	USD		300		309,750
Hungary | 0.4%
Hungary:
5.750%, 11/22/23	USD		360		361,800
7.625%, 03/29/41	USD		478		522,812
					884,612
Indonesia | 0.4%
Republic of Indonesia:
4.875%, 05/05/21	USD		200		198,000
5.375%, 10/17/23	USD		200		199,000
8.500%, 10/12/35	USD		450		543,375
					940,375
Iraq | 0.7%
Republic of Iraq, 5.800%, 01/15/28	USD		1,900		1,615,000
Ivory Coast | 0.9%
Ivory Coast, 5.750%, 12/31/32 (e)	USD		2,365		2,110,762

Description	Security Currency	Principal Amount (000)		Value
Kenya | 0.1%
Kenya Treasury Bill, 0.000%, 04/28/14	KES		12,000	$	134,591
Kenya Treasury Bond, 12.000%, 09/18/23	KES		7,750		89,767
					224,358
Mexico | 1.4%
Mexican Bonos:
6.250%, 06/16/16	MXN		3,250		261,384
7.250%, 12/15/16	MXN		1,100		90,671
5.000%, 06/15/17	MXN		3,040		234,365
4.750%, 06/14/18	MXN		15,720		1,175,255
8.500%, 12/13/18	MXN		10,200		883,191
United Mexican States, 6.750%, 09/27/34	USD		350		413,000
					3,057,866
Nigeria | 0.5%
Nigeria Government Bond, 15.100%, 04/27/17	NGN		8,000		52,531
Nigeria Treasury Bills:
0.000%, 04/24/14	NGN		7,000		42,184
0.000%, 05/08/14	NGN		9,000		54,024
0.000%, 05/22/14	NGN		11,000		65,738
0.000%, 06/05/14	NGN		14,800		88,094
0.000%, 08/07/14	NGN		25,000		145,734
0.000%, 09/04/14	NGN		5,300		30,578
0.000%, 10/23/14	NGN		17,000		96,438
0.000%, 11/20/14	NGN		22,000		123,589
Republic of Nigeria:
5.125%, 07/12/18 (c)	USD		125		128,125
6.375%, 07/12/23 (c)	USD		250		258,125
					1,085,160
Panama | 0.2%
Republic of Panama, 8.875%, 09/30/27	USD		325		433,063
Paraguay | 0.2%
Republic of Paraguay, 4.625%, 01/25/23	USD		475		444,125
Peru | 0.0%
Republic of Peru, 6.550%, 03/14/37	USD		25		28,750

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

32 Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Multi-Strategy Portfolio (continued)
Philippines | 0.1%
Republic of Philippines, 9.500%, 02/02/30	USD		100	$	149,625
Romania | 0.6%
Romania Government Bonds:
6.750%, 06/11/17	RON		1,210		399,626
5.900%, 07/26/17	RON		2,910		938,064
					1,337,690
Russia | 1.2%
Russia Government Bonds - OFZ:
6.900%, 08/03/16	RUB		4,349		133,415
7.400%, 04/19/17	RUB		3,000		93,080
7.500%, 03/15/18	RUB		5,850		182,111
7.500%, 02/27/19	RUB		33,310		1,032,488
7.600%, 04/14/21	RUB		6,373		196,280
7.600%, 07/20/22	RUB		4,852		148,108
7.000%, 01/25/23	RUB		6,600		193,539
8.150%, 02/03/27	RUB		12,308		386,367
7.050%, 01/19/28	RUB		12,510		353,915
					2,719,303
Rwanda | 0.2%
Republic of Rwanda, 6.625%, 05/02/23	USD		425		401,625
Senegal | 0.1%
Republic of Senegal, 8.750%, 05/13/21	USD		200		223,000
Serbia | 0.5%
Republic of Serbia:
5.875%, 12/03/18 (c)	USD		200		203,500
4.875%, 02/25/20	USD		450		425,475
7.250%, 09/28/21	USD		400		421,000
Serbia Treasury Bill, 0.000%, 01/03/14	RSD		3,000		36,012
Serbia Treasury Bond, 10.000%, 10/17/16	RSD		13,000		150,201
					1,236,188
South Africa | 0.1%
Republic of South Africa, 8.250%, 09/15/17	ZAR		1,790		177,930

Description	Security Currency	Principal Amount (000)		Value
Sri Lanka | 0.1%
Republic of Sri Lanka, 6.250%, 10/04/20	USD		150	$	147,750
Tanzania | 0.1%
United Republic of Tanzania, 6.392%, 03/09/20	USD		325		339,625
Turkey | 0.4%
Republic of Turkey, 7.375%, 02/05/25	USD		525		566,738
Turkey Government Bond, 3.000%, 02/23/22	TRY		657		295,575
					862,313
Uganda | 0.0%
Uganda Treasury Bill, 0.000%, 08/07/14	UGX		150,000		52,588
Ukraine | 0.2%
Ukraine Government Bonds:
7.750%, 09/23/20	USD		175		161,438
7.800%, 11/28/22	USD		200		180,800
					342,238
United Arab Emirates | 0.3%
Dubai Government International Bond, 5.591%, 06/22/21	USD		650		702,812
Uruguay | 0.3%
Republica of Uruguay, 7.875%, 01/15/33	USD		125		153,438
Republica Orient Uruguay, 5.000%, 09/14/18	UYU		5,305		265,074
Uruguay Monetary Regulation Bills:
0.000%, 02/26/14	UYU		2,000		91,327
0.000%, 11/26/15	UYU		3,060		127,994
Uruguay Notas Del Tesoro, 9.750%, 06/14/14	UYU		1,070		48,587
					686,420
Zambia | 0.1%
Republic of Zambia, 5.375%, 09/20/22	USD		150		129,750
Zambia Treasury Bill, 0.000%, 03/03/14	ZMW		320		56,586
					186,336
Total Foreign Government Obligations (Identified cost $34,915,079)					34,238,929

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

Annual Report 33

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Multi-Strategy Portfolio (continued)
Quasi Government Bonds | 1.1%
Azerbaijan | 0.3%
State Oil Co. of the Azerbaijan Republic, 4.750%, 03/13/23	USD		800	$	754,000
Colombia | 0.0%
Empresas Publicas de Medellin ESP, 8.375%, 02/01/21	COP		72,000		38,630
Kazakhstan | 0.3%
Development Bank of Kazakhstan JSC, 4.125%, 12/10/22	USD		675		603,248
Russia | 0.4%
Russian Agricultural Bank OJSC:
8.625%, 02/17/17 (c)	RUB		8,500		255,535
5.298%, 12/27/17	USD		225		231,750
Vnesheconombank, 5.942%, 11/21/23 (c)	USD		400		393,709
					880,994
Ukraine | 0.1%
Ukreximbank (Biz Finance PLC), 8.375%, 04/27/15	USD		325		309,562
Total Quasi Government Bonds (Identified cost $2,625,733)					2,586,434
US Treasury Securities | 6.7%
United States | 6.7%
US Treasury Notes:
4.000%, 02/15/14	USD		8,000		8,037,184
1.750%, 03/31/14	USD		7,100		7,128,563
Total US Treasury Securities (Identified cost $15,168,061)					15,165,747

Description	Shares		Value
Short-Term Investment | 18.8%
State Street Institutional Treasury Money Market Fund (Identified cost $42,306,372)		42,306,372	$	42,306,372
Total Investments | 99.3%
(Identified cost $225,795,215) (d), (f)				223,819,062

Description	Number of Contracts		Value
Purchased Options | 0.0%
INR vs USD February 14 62.00 Put, Expires 02/20/14		11,540	$	14,079
USD vs EUR April 14 1.38 Put, Expires 04/01/14		29,000		62,174
ZAR vs USD February 14 10.35 Put, Expires 02/11/14		26,900		22,596
Total Purchased Options (Identified cost $121,223)				98,849
Total Investments and Purchased Options | 99.3%
(Identified cost $225,916,438)			$	223,917,911
Cash and Other Assets in Excess of Liabilities | 0.7%				1,594,951
Net Assets | 100.0%			$	225,512,862

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

34 Annual Report

Lazard Emerging Markets Multi-Strategy Portfolio (continued)

Forward Currency Contracts open at December 31, 2013:

				US $ Cost	US $
		Expiration	Foreign	on Origination	Current	Unrealized	Unrealized
Currency	Counterparty	Date	Currency Amount	Date	Value	Appreciation	Depreciation
Forward Currency Purchase Contracts
AMD	JPM	10/28/14	74,932,200	$171,000	$174,058	$   3,058	$      —
BRL	SCB	01/03/14	1,309,432	555,079	555,020	—	59
BRL	SSB	01/03/14	49,591	21,153	21,020	—	133
BRL	SSB	01/03/14	60,367	25,749	25,587	—	162
BRL	SSB	01/03/14	70,510	30,076	29,887	—	189
BRL	SSB	01/03/14	70,737	30,173	29,983	—	190
BRL	SSB	01/03/14	85,362	36,411	36,182	—	229
BRL	SSB	01/03/14	120,021	51,195	50,873	—	322
BRL	SSB	01/03/14	172,212	73,456	72,994	—	462
BRL	UBS	01/03/14	833,963	353,000	353,486	486	—
BRL	UBS	02/04/14	192,787	80,228	81,059	831	—
CLP	BNP	01/16/14	387,958,800	725,971	737,233	11,262	—
CLP	HSB	02/06/14	51,227,550	95,210	97,113	1,903	—
CNY	BRC	03/18/14	2,439,087	399,000	401,550	2,550	—
CNY	HSB	04/22/14	4,381,497	714,000	720,713	6,713	—
COP	CIT	02/03/14	999,363,000	516,000	517,468	1,468	—
COP	CIT	02/24/14	477,505,000	245,000	246,796	1,796	—
COP	HSB	01/10/14	527,888,400	274,000	273,477	—	523
COP	UBS	01/16/14	1,624,298,000	836,620	841,376	4,756	—
EUR	BNP	01/27/14	148,313	200,804	204,032	3,228	—
EUR	BRC	03/24/14	188,246	254,930	258,964	4,034	—
EUR	JPM	02/05/14	7,148	9,638	9,833	195	—
EUR	JPM	02/05/14	324,362	441,000	446,218	5,218	—
EUR	SCB	01/17/14	231,632	320,000	318,654	—	1,346
GHS	CIT	01/21/14	853,500	365,838	357,737	—	8,101
GHS	CIT	02/18/14	911,000	381,251	376,425	—	4,826
HUF	BNP	01/17/14	72,275,990	327,931	334,220	6,289	—
HUF	JPM	01/15/14	106,547,240	486,864	492,754	5,890	—
HUF	JPM	02/10/14	121,896,000	550,147	562,906	12,759	—
HUF	JPM	03/10/14	121,896,000	549,403	562,043	12,640	—
HUF	SSB	01/06/14	10,179,692	47,422	47,103	—	319
IDR	SCB	01/13/14	4,888,720,000	403,094	401,038	—	2,056
IDR	SCB	01/17/14	3,962,740,000	325,883	324,862	—	1,021
INR	HSB	01/10/14	19,636,540	308,000	316,920	8,920	—
INR	JPM	02/10/14	35,906,640	638,000	575,196	—	62,804
INR	SCB	01/10/14	15,474,150	251,000	249,742	—	1,258
INR	SCB	01/27/14	41,245,750	660,445	662,935	2,490	—
KRW	BRC	01/09/14	582,764,600	547,248	551,967	4,719	—
KRW	UBS	01/23/14	596,724,750	565,000	564,634	—	366
KZT	CIT	01/06/14	56,065,350	363,000	363,235	235	—
KZT	CIT	02/26/14	54,736,000	352,000	352,074	74	—
KZT	CIT	03/17/14	135,843,100	869,118	870,285	1,167	—
KZT	HSB	02/26/14	74,104,000	472,000	476,654	4,654	—

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

Annual Report 35

Lazard Emerging Markets Multi-Strategy Portfolio (continued)

Forward Currency Contracts open at December 31, 2013 (continued):

					US $ Cost		US $
		Expiration	Foreign		on Origination		Current		Unrealized		Unrealized
Currency	Counterparty	Date	Currency Amount		Date		Value		Appreciation		Depreciation
Forward Currency Purchase Contracts (continued)
KZT	HSB	06/16/14		3,817,500	$	24,063	$	24,043	$	—	$	20
KZT	HSB	06/16/14		30,571,200		192,538		192,538		—		—
MXN	BRC	01/17/14		9,278,503		713,029		709,839		—		3,190
MXN	BRC	01/17/14		10,400,000		798,005		795,637		—		2,368
MXN	CIT	01/17/14		6,045,125		464,490		462,474		—		2,016
MXN	CIT	01/17/14		10,400,000		798,219		795,637		—		2,582
MXN	CIT	01/21/14		19,635,232		1,516,000		1,501,680		—		14,320
MXN	JPM	01/17/14		2,460,690		190,000		188,251		—		1,749
MXN	JPM	01/17/14		10,400,000		798,023		795,637		—		2,386
MXN	JPM	01/17/14		10,400,000		798,023		795,637		—		2,386
MXN	JPM	01/30/14		3,412,352		262,607		260,783		—		1,824
MXN	SCB	01/17/14		10,400,000		798,128		795,637		—		2,491
MXN	UBS	01/30/14		5,888,445		454,054		450,014		—		4,040
MYR	JPM	01/10/14		1,049,425		325,000		320,243		—		4,757
MYR	JPM	01/21/14		2,066,510		637,832		630,174		—		7,658
MYR	JPM	02/18/14		2,066,510		636,986		629,110		—		7,876
MYR	SCB	01/10/14		1,049,425		325,000		320,243		—		4,757
NGN	BRC	06/18/14		11,683,750		65,000		69,196		4,196		—
NGN	JPM	06/17/14		12,420,000		69,000		73,581		4,581		—
NGN	JPM	06/17/14		12,772,500		75,000		75,669		669		—
NGN	SCB	01/21/14		183,402,100		1,144,118		1,138,452		—		5,666
PEN	BNP	02/21/14		1,627,776		576,000		577,411		1,411		—
PEN	BNP	03/18/14		718,848		256,000		254,186		—		1,814
PEN	CIT	01/15/14		941,379		334,000		335,906		1,906		—
PEN	JPM	01/31/14		426,750		153,507		151,855		—		1,652
PEN	UBS	01/21/14		397,969		143,000		141,858		—		1,142
PEN	UBS	01/23/14		458,462		164,000		163,364		—		636
PHP	HSB	02/12/14		36,283,080		822,000		817,996		—		4,004
PHP	JPM	01/13/14		14,128,000		320,000		318,373		—		1,627
PHP	JPM	01/13/14		28,294,400		640,000		637,611		—		2,389
PHP	SCB	01/13/14		14,313,920		328,000		322,563		—		5,437
PLN	BNP	02/18/14		1,639,622		537,000		541,170		4,170		—
PLN	BRC	01/15/14		1,639,758		522,058		542,366		20,308		—
PLN	BRC	01/17/14		633,533		207,975		209,521		1,546		—
PLN	BRC	01/17/14		633,533		208,290		209,521		1,231		—
PLN	CIT	01/17/14		633,533		208,516		209,521		1,005		—
PLN	CIT	01/17/14		633,533		207,998		209,521		1,523		—
PLN	JPM	01/07/14		417,893		135,000		138,292		3,292		—
PLN	JPM	01/07/14		1,028,504		333,300		340,360		7,060		—
PLN	JPM	01/17/14		633,533		208,495		209,521		1,026		—
PLN	JPM	01/17/14		633,533		208,084		209,521		1,437		—
PLN	JPM	01/27/14		1,097,322		361,359		362,675		1,316		—
PLN	SCB	01/17/14		633,533		208,002		209,521		1,519		—

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

36 Annual Report

Lazard Emerging Markets Multi-Strategy Portfolio (continued)

Forward Currency Contracts open at December 31, 2013 (continued):

					US $ Cost		US $
		Expiration	Foreign		on Origination		Current		Unrealized		Unrealized
Currency	Counterparty	Date	Currency Amount		Date		Value		Appreciation		Depreciation
Forward Currency Purchase Contracts (continued)
PLN	SCB	01/17/14		633,533	$	208,447	$	209,521	$	1,074	$	—
RON	CIT	01/13/14		1,083,934		333,765		333,326		—		439
RON	JPM	01/06/14		3,445,154		1,047,000		1,059,689		12,689		—
RSD	CIT	01/08/14		23,410,000		278,343		280,444		2,101		—
RSD	CIT	01/17/14		6,978,000		82,717		83,403		686		—
RSD	CIT	02/06/14		77,211,970		913,049		918,136		5,087		—
RSD	HSB	01/09/14		12,842,500		152,470		153,810		1,340		—
RUB	BRC	01/17/14		7,096,424		215,304		215,349		45		—
RUB	BRC	01/17/14		7,096,424		215,187		215,350		163		—
RUB	BRC	01/21/14		4,160,640		128,000		126,173		—		1,827
RUB	BRC	01/24/14		11,303,565		343,000		342,609		—		391
RUB	HSB	01/21/14		7,263,320		217,333		220,263		2,930		—
RUB	JPM	01/17/14		7,096,424		215,340		215,349		9		—
RUB	JPM	01/17/14		7,096,424		215,119		215,349		230		—
RUB	UBS	01/21/14		9,768,828		292,165		296,243		4,078		—
SEK	SSB	01/03/14		204,265		31,429		31,758		329		—
SGD	HSB	01/17/14		738,481		588,197		585,189		—		3,008
THB	BNP	01/17/14		7,339,310		227,858		223,200		—		4,658
THB	SCB	01/10/14		19,007,060		587,000		578,231		—		8,769
TRY	CIT	02/12/14		1,923,543		937,982		887,559		—		50,423
TRY	JPM	04/21/14		135,051		65,000		61,376		—		3,624
TWD	HSB	01/16/14		11,269,775		383,000		378,261		—		4,739
UGX	BRC	01/13/14		490,752,000		192,000		193,976		1,976		—
UGX	CIT	01/27/14		746,124,000		291,000		293,785		2,785		—
UYU	CIT	01/02/14		8,567,000		392,442		397,111		4,669		—
UYU	CIT	01/21/14		883,200		40,000		40,700		700		—
UYU	CIT	01/21/14		3,162,240		144,000		145,725		1,725		—
UYU	HSB	01/17/14		875,600		40,745		40,400		—		345
UYU	HSB	02/07/14		3,473,000		157,184		159,253		2,069		—
UYU	JPM	01/02/14		8,567,000		400,533		397,111		—		3,422
UYU	JPM	01/13/14		1,562,024		72,907		72,160		—		747
UYU	JPM	01/17/14		875,600		40,779		40,400		—		379
UYU	JPM	01/21/14		882,000		40,000		40,645		645		—
UYU	JPM	02/03/14		8,032,000		369,075		368,711		—		364
ZAR	CIT	01/13/14		7,502,803		738,000		714,213		—		23,787
ZAR	JPM	01/13/14		3,966,846		383,000		377,615		—		5,385
ZAR	JPM	01/13/14		4,132,434		398,000		393,378		—		4,622
ZAR	SSB	01/06/14		195,851		18,662		18,662		—		—
ZAR	SSB	01/06/14		280,945		26,771		26,771		—		—
ZAR	SSB	01/06/14		304,406		29,006		29,006		—		—
ZAR	SSB	01/06/14		315,741		30,086		30,086		—		—
ZAR	SSB	01/06/14		463,378		44,154		44,154		—		—
ZMW	BRC	01/06/14		930,863		168,635		167,746		—		889

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

Annual Report 37

Lazard Emerging Markets Multi-Strategy Portfolio (continued)

Forward Currency Contracts open at December 31, 2013 (continued):

					US $ Cost		US $
		Expiration	Foreign		on Origination		Current		Unrealized			Unrealized
Currency	Counterparty	Date	Currency Amount		Date		Value		Appreciation			Depreciation
Forward Currency Purchase Contracts (concluded)
ZMW	BRC	01/31/14		317,133	$	56,349	$	56,787		$	438		$	—
ZMW	BRC	02/26/14		1,785,075		318,365		317,143			—			1,222
ZMW	CIT	01/31/14		1,093,288		193,331		195,768			2,437			—
ZMW	JPM	04/08/14		200,000		33,761		35,090			1,329			—
ZMW	SCB	01/31/14		1,743,000		312,926		312,108			—			818
Total Forward Currency Purchase Contracts					$	45,700,452	$	45,622,506		$	215,065		$	293,011
Forward Currency Sale Contracts
BRL	BRC	02/04/14		118,912	$	50,100	$	49,998		$	102		$	—
BRL	BRC	02/04/14		509,268		214,700		214,126			574			—
BRL	BRC	02/04/14		528,660		220,000		222,279			—			2,279
BRL	CIT	02/04/14		528,550		220,000		222,233			—			2,233
BRL	SCB	01/03/14		1,309,432		563,560		555,020			8,540			—
BRL	SCB	02/04/14		261,030		110,000		109,752			248			—
BRL	SCB	02/04/14		336,420		140,000		141,451			—			1,451
BRL	SCB	02/04/14		509,268		214,700		214,126			574			—
BRL	SCB	02/04/14		528,550		220,000		222,233			—			2,233
BRL	SCB	02/04/14		1,309,432		550,551		550,561			—			10
BRL	UBS	01/03/14		192,787		80,867		81,715			—			848
BRL	UBS	01/03/14		641,176		276,000		271,771			4,229			—
CAD	BRC	01/17/14		32,284		30,325		30,381			—			56
CAD	SCB	01/17/14		650,000		616,622		611,690			4,932			—
CLP	SCB	01/31/14		168,640,000		320,000		319,913			87			—
CZK	BRC	01/17/14		4,536,720		224,834		228,474			—			3,640
CZK	JPM	01/17/14		3,407,850		169,011		171,623			—			2,612
CZK	SCB	01/17/14		3,601,868		178,642		181,394			—			2,752
EUR	BNP	01/17/14		239,000		327,931		328,790			—			859
EUR	BNP	01/27/14		138,000		190,081		189,844			237			—
EUR	BNP	01/27/14		969,000		1,333,742		1,333,038			704			—
EUR	BRC	01/17/14		342,511		471,430		471,189			241			—
EUR	BRC	01/17/14		342,511		472,458		471,189			1,269			—
EUR	BRC	03/24/14		125,621		172,000		172,813			—			813
EUR	CIT	01/08/14		200,000		278,342		275,139			3,203			—
EUR	CIT	01/17/14		60,000		82,717		82,542			175			—
EUR	CIT	02/06/14		663,618		913,049		912,925			124			—
EUR	HSB	01/09/14		110,000		152,470		151,327			1,143			—
EUR	HSB	03/20/14		1,305,425		1,796,265		1,795,833			432			—
EUR	JPM	01/15/14		357,086		486,864		491,240			—			4,376
EUR	JPM	01/27/14		261,000		361,359		359,053			2,306			—
EUR	JPM	02/05/14		241,000		324,959		331,539			—			6,580
EUR	SCB	01/17/14		287,355		396,378		395,312			1,066			—
EUR	SCB	01/17/14		287,355		395,427		395,312			115			—
EUR	UBS	02/28/14		328,049		444,211		451,287			—			7,076

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

38 Annual Report

Lazard Emerging Markets Multi-Strategy Portfolio (continued)

Forward Currency Contracts open at December 31, 2013 (concluded):

					US $ Cost		US $
		Expiration	Foreign		on Origination		Current		Unrealized			Unrealized
Currency	Counterparty	Date	Currency Amount		Date		Value		Appreciation			Depreciation
Forward Currency Sale Contracts (concluded)
HUF	CIT	01/17/14		8,859,682	$	40,263	$	40,969		$	—		$	706
JPY	CIT	03/17/14		51,716,481		502,592		491,259			11,333			—
JPY	HSB	02/25/14		72,576,405		726,000		689,334			36,666			—
JPY	SCB	01/28/14		16,167,284		164,000		153,536			10,464			—
JPY	SCB	01/28/14		52,653,910		540,820		500,039			40,781			—
KES	CIT	01/06/14		8,880,000		100,000		102,812			—			2,812
KZT	CIT	01/06/14		56,065,350		363,235		363,235			—			—
MXN	BRC	01/17/14		17,335,017		1,338,033		1,326,191			11,842			—
MXN	CIT	01/17/14		6,639,426		513,284		507,940			5,344			—
MXN	JPM	01/17/14		2,076,080		160,000		158,828			1,172			—
MXN	JPM	01/17/14		7,995,332		617,562		611,671			5,891			—
MXN	SCB	01/17/14		2,076,400		160,000		158,852			1,148			—
MXN	SCB	01/17/14		10,554,407		815,327		807,450			7,877			—
NGN	BRC	06/18/14		11,683,750		69,775		69,197			578			—
PEN	CIT	01/24/14		305,525		110,000		108,849			1,151			—
PEN	HSB	01/24/14		305,855		110,000		108,967			1,033			—
PEN	JPM	01/24/14		305,800		110,000		108,947			1,053			—
PEN	SCB	01/21/14		370,671		133,000		132,127			873			—
PEN	SCB	01/21/14		462,476		166,000		164,852			1,148			—
RON	JPM	01/13/14		894,923		275,564		275,201			363			—
RUB	BRC	01/17/14		5,072,149		153,000		153,920			—			920
RUB	BRC	01/17/14		5,074,826		153,000		154,002			—			1,002
RUB	BRC	01/17/14		6,827,973		206,000		207,203			—			1,203
RUB	BRC	01/17/14		21,534,234		651,000		653,481			—			2,481
RUB	CIT	01/17/14		6,828,900		206,000		207,231			—			1,231
RUB	HSB	01/17/14		6,229,435		188,300		189,039			—			739
RUB	HSB	01/17/14		8,717,719		263,000		264,549			—			1,549
RUB	JPM	01/17/14		5,072,868		153,000		153,942			—			942
RUB	JPM	01/17/14		5,075,087		153,000		154,009			—			1,009
RUB	JPM	01/17/14		6,828,385		206,000		207,215			—			1,215
TRY	BRC	01/17/14		730,665		355,641		338,971			16,670			—
TRY	BRC	02/12/14		792,553		378,000		365,699			12,301			—
TRY	JPM	01/17/14		983,136		478,832		456,099			22,733			—
TRY	JPM	04/21/14		403,860		193,912		183,541			10,371			—
TRY	SCB	01/17/14		730,665		355,485		338,971			16,514			—
UYU	CIT	01/02/14		8,567,000		400,533		397,111			3,422			—
UYU	JPM	01/02/14		8,567,000		397,172		397,111			61			—
ZAR	JPM	01/13/14		2,103,689		203,000		200,256			2,744			—
Total Forward Currency Sale Contracts					$	25,109,925	$	24,909,718			253,834			53,627
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts										$	468,899		$	346,638

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

Annual Report 39

Lazard Emerging Markets Multi-Strategy Portfolio (concluded)

Written Options open at December 31, 2013:

Description	Number of Contracts	Strike Price		Expiration Date	Premium		Value
INR vs USD February 14 60.00 Put	11,540		60.00	02/20/14	$	4,270	$	(3,231	)
USD vs EUR April 14 1.35 Put	29,000		1.35	04/01/14		33,670		(33,646	)
ZAR vs USD February 14 10.00 Put	26,900		10.00	02/11/14		13,047		(4,842	)
Total Written Options					$	50,987	$	(41,719	)

Credit Default Swap Agreements open at December 31, 2013:

								Upfront
Referenced		Notional	Expiration	Receive				Premiums Paid				Unrealized			Unrealized
Obligation	Counterparty	Amount	Date	(Pay) Rate	Value			(Received)				Appreciation			Depreciation
ITRAXX	JPM	700,000	12/20/18	1.00%	$	(48,880	)		$	(46,775	)		$	—		$	2,105
ITRAXX	JPM	400,000	12/20/18	1.00%		(27,931	)			(26,554	)			—			1,377
ITRAXX	JPM	2,780,000	12/20/18	1.00%		(194,123	)			(184,760	)			—			9,363
Markit CDS EM20 Series 9PA	BRC	5,900,000	12/20/18	5.00%		598,802				589,410				9,392			—
Markit CDS EM20 Series 9PA	BRC	370,000	12/20/18	5.00%		37,552				37,814				—			262
Markit CDS EM20 Series 9PA	BRC	655,000	12/20/18	5.00%		66,477				63,993				2,484			—
Markit CDS EM20 Series 9PA	BRC	1,100,000	12/20/18	5.00%		111,641				109,450				2,191			—
Markit CDS EM20 Series 9PA	BRC	200,000	12/20/18	5.00%		20,298				20,556				—			258
People’s Republic of China	BRC	390,000	03/20/19	(1.00%)		(4,012	)			(5,281	)			1,269			—
People’s Republic of China	JPM	4,500,000	03/20/19	(1.00%)		(46,291	)			(58,248	)			11,957			—
Republic of South Africa	BRC	6,350,000	03/20/19	(1.00%)		317,232				340,207				—			22,975
Total Credit Default Swap Agreements					$	830,765			$	839,812			$	27,293		$	36,340

Interest Rate Swap Agreements open at December 31, 2013:

		Notional	Expiration	Receive	Variable	Unrealized			Unrealized
Currency	Counterparty	Amount	Date	(Pay) Rate	Rate	Appreciation			Depreciation
HUF	BRC	267,160,000	12/23/18	2.95%	Budapest LIBOR 6 Month		$	—		$	4,672
RUB	BRC	7,000,000	09/11/16	6.90%	RUB-MOSPRIME-NFEA			—			700
RUB	BRC	16,000,000	09/16/17	6.93%	RUB-MOSPRIME-NFEA			—			3,024
ZAR	BRC	6,000,000	07/18/16	6.18%	South Africa Johannesburg
					Interbank Agreed Rate 3 Month			—			3,310
ZAR	BRC	6,000,000	09/17/18	7.12%	South Africa Johannesburg
					Interbank Agreed Rate 3 Month			—			3,566
ZAR	BRC	4,500,000	09/19/18	6.79%	South Africa Johannesburg
					Interbank Agreed Rate 3 Month			—			8,367
Total unrealized depreciation on Interest Rate Swap Agreements								—			23,639
Gross unrealized appreciation/depreciation on Swap Agreements							$	27,293		$	59,979

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

40 Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio
Corporate Bonds | 9.8%
Argentina | 0.2%
YPF Sociedad Anonima, 8.875%, 12/19/18 (c)	USD		675	$	700,313
Brazil | 0.3%
Arcos Dorados Holdings, Inc., 10.250%, 07/13/16	BRL		600		239,059
Banco do Brasil SA, 9.250%, 04/15/23	USD		575		592,250
Companhia Energetica de Sao Paulo, 9.750%, 01/15/15	BRL		539		347,655
					1,178,964
China | 0.3%
China Lesso Group Holdings, Ltd., 7.875%, 05/13/16	USD		600		630,000
MIE Holdings Corp., 9.750%, 05/12/16	USD		625		662,500
					1,292,500
Colombia | 1.0%
Banco GNB Sudameris SA:
3.875%, 05/02/18	USD		132		126,885
3.875%, 05/02/18 (c)	USD		700		671,125
Grupo Aval, Ltd., 4.750%, 09/26/22	USD		750		691,875
Millicom International Cellular SA, 4.750%, 05/22/20	USD		1,125		1,080,000
Pacific Rubiales Energy Corp.:
7.250%, 12/12/21	USD		550		583,000
5.125%, 03/28/23	USD		275		252,313
5.125%, 03/28/23 (c)	USD		1,075		986,312
					4,391,510
Georgia | 0.4%
Bank of Georgia JSC, 7.750%, 07/05/17	USD		1,750		1,815,625
Guatemala | 0.5%
Cementos Progreso Trust:
7.125%, 11/06/23	USD		275		278,781
7.125%, 11/06/23 (c)	USD		700		709,625

Description	Security Currency	Principal Amount (000)		Value
Industrial Senior Trust:
5.500%, 11/01/22	USD		625	$	575,000
5.500%, 11/01/22 (c)	USD		775		713,000
					2,276,406
India | 0.4%
Vedanta Resources PLC, 9.500%, 07/18/18	USD		1,425		1,581,750
Indonesia | 1.0%
PT Gajah Tunggal Tbk:
7.750%, 02/06/18	USD		925		906,500
7.750%, 02/06/18 (c)	USD		975		955,500
PT Pertamina (Persero) Tbk:
5.250%, 05/23/21	USD		1,025		986,563
6.500%, 05/27/41	USD		1,800		1,575,000
					4,423,563
Kazakhstan | 0.7%
Halyk Savings Bank of Kazakhstan JSC, 7.250%, 05/03/17	USD		1,750		1,895,775
KazAgro National Management Holding JSC, 4.625%, 05/24/23	USD		350		320,950
Zhaikmunai LP, 7.125%, 11/13/19	USD		1,050		1,098,510
					3,315,235
Mexico | 0.4%
America Movil SAB de CV, 6.450%, 12/05/22	MXN		17,350		1,224,554
Bio Pappel SAB de CV, 10.000%, 08/27/16	USD		418		419,460
Grupo Televisa SAB, 7.250%, 05/14/43	MXN		5,400		334,899
					1,978,913
Nigeria | 0.8%
Afren PLC, 6.625%, 12/09/20 (c)	USD		900		900,000
FBN Finance Co. BV:
8.250%, 08/07/20	USD		800		822,000
8.250%, 08/07/20 (c)	USD		725		731,495
GTB Finance BV, 6.000%, 11/08/18 (c)	USD		1,588		1,557,482
					4,010,977
Paraguay | 0.1%
Telefonica Celular del Paraguay SA, 6.750%, 12/13/22	USD		500		520,000

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

Annual Report 41

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Russia | 2.8%
Alliance Oil Co., Ltd., 7.000%, 05/04/20	USD		925	$	888,000
ALROSA Finance SA, 7.750%, 11/03/20	USD		1,150		1,274,775
EDC Finance, Ltd.:
4.875%, 04/17/20	USD		750		728,437
4.875%, 04/17/20 (c)	USD		575		554,718
Gazprom Neft OAO:
4.375%, 09/19/22	USD		650		595,563
6.000%, 11/27/23 (c)	USD		550		558,250
Gazprom OAO:
9.250%, 04/23/19	USD		650		799,500
8.625%, 04/28/34	USD		390		460,200
Lukoil International Finance BV, 6.125%, 11/09/20	USD		900		975,150
Metalloinvest Finance, Ltd.:
5.625%, 04/17/20	USD		725		703,250
5.625%, 04/17/20 (c)	USD		925		897,128
MTS International Funding, Ltd.:
8.625%, 06/22/20	USD		800		944,000
5.000%, 05/30/23 (c)	USD		320		300,400
Rosneft Oil Co., 4.199%, 03/06/22	USD		1,300		1,192,750
Sberbank of Russia, 5.250%, 05/23/23	USD		675		630,315
Sibur Securities, Ltd., 3.914%, 01/31/18	USD		1,300		1,269,125
					12,771,561
South Africa | 0.5%
Transnet SOC, Ltd., 9.500%, 05/13/21 (c)	ZAR		24,000		2,260,214
Trinidad and Tobago | 0.4%
Petroleum Co. of Trinidad and Tobago Ltd.:
9.750%, 08/14/19	USD		850		1,064,625
6.000%, 05/08/22	USD		850		898,875
					1,963,500
Total Corporate Bonds (Identified cost $45,681,607)					44,481,031

Description	Security Currency	Principal Amount (000)		Value
Foreign Government Obligations | 76.4%
Angola | 2.0%
Republic of Angola Northern Lights III BV, 7.000%, 08/16/19	USD		8,465	$	9,152,781
Argentina | 0.9%
Republic of Argentina, 8.280%, 12/31/33	USD		5,642		4,260,081
Armenia | 0.1%
Republic of Armenia, 6.000%, 09/30/20 (c)	USD		650		645,125
Bahrain | 1.0%
Kingdom of Bahrain:
6.125%, 08/01/23	USD		2,350		2,424,025
6.125%, 08/01/23 (c)	USD		2,050		2,114,575
					4,538,600
Belarus | 0.3%
Republic of Belarus, 8.750%, 08/03/15	USD		1,200		1,212,000
Belize | 0.4%
Republic of Belize, 5.000%, 02/20/38 (e)	USD		3,110		1,951,525
Bolivia | 0.9%
Bolivia Government Bonds:
4.875%, 10/29/22	USD		3,425		3,262,313
5.950%, 08/22/23 (c)	USD		1,000		985,000
					4,247,313
Brazil | 5.2%
Brazil Letras do Tesouro Nacional:
0.000%, 01/01/15	BRL		12,970		4,963,333
0.000%, 01/01/16	BRL		18,855		6,397,833
0.000%, 01/01/17	BRL		16,550		4,940,034
Brazil Minas SPE:
5.333%, 02/15/28	USD		600		556,500
5.333%, 02/15/28 (c)	USD		1,300		1,203,851
Brazil NTN-B, 6.000%, 08/15/20	BRL		145		142,945
Brazil NTN-F:
10.000%, 01/01/17	BRL		800		303,806
10.000%, 01/01/21	BRL		3,560		1,234,159
10.000%, 01/01/23	BRL		11,385		4,075,755
					23,818,216

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

42 Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Chile | 0.1%
Republic of Chile, 6.000%, 01/01/18	CLP		205,000	$	392,955
Colombia | 0.4%
Republic of Colombia:
12.000%, 10/22/15	COP		900,000		525,544
7.750%, 04/14/21	COP		2,005,000		1,146,382
					1,671,926
Congo | 0.3%
Republic of Congo, 3.500%, 06/30/29 (e)	USD		1,801		1,594,062
Costa Rica | 0.1%
Costa Rica Government International Bond, 4.250%, 01/26/23	USD		250		228,750
Croatia | 1.2%
Croatia:
6.250%, 04/27/17	USD		720		766,800
6.750%, 11/05/19	USD		2,750		2,976,875
6.625%, 07/14/20	USD		1,550		1,660,437
					5,404,112
Dominican Republic | 0.7%
Dominican Republic:
5.875%, 04/18/24	USD		873		833,715
5.875%, 04/18/24 (c)	USD		2,600		2,483,000
					3,316,715
Ecuador | 0.7%
Republic of Ecuador, 9.375%, 12/15/15	USD		3,050		3,217,750
Egypt | 0.2%
Arab Republic of Egypt, 5.750%, 04/29/20	USD		1,005		954,750
El Salvador | 0.7%
Republic of El Salvador:
7.375%, 12/01/19	USD		1,475		1,605,907
5.875%, 01/30/25 (c)	USD		1,385		1,317,481
7.650%, 06/15/35	USD		425		413,950
					3,337,338

Description	Security Currency	Principal Amount (000)		Value
Gabon | 0.7%
Gabonese Republic:
8.200%, 12/12/17	USD		1,450	$	1,678,375
6.375%, 12/12/24 (c)	USD		1,700		1,704,250
					3,382,625
Georgia | 0.6%
Republic of Georgia, 6.875%, 04/12/21	USD		2,400		2,568,000
Guatemala | 0.2%
Republic of Guatemala:
5.750%, 06/06/22	USD		700		722,750
5.750%, 06/06/22 (c)	USD		246		253,995
					976,745
Honduras | 0.0%
Honduras Government Bond, 7.500%, 03/15/24	USD		175		159,688
Hungary | 4.8%
Hungary:
6.250%, 01/29/20	USD		3,922		4,230,857
6.375%, 03/29/21	USD		905		970,613
5.375%, 02/21/23	USD		4,012		3,961,850
7.625%, 03/29/41	USD		1,030		1,126,562
Hungary Government Bonds:
8.000%, 02/12/15	HUF		70,200		341,843
7.750%, 08/24/15	HUF		249,600		1,235,279
6.750%, 02/24/17	HUF		764,000		3,794,764
6.750%, 11/24/17	HUF		283,000		1,418,621
5.500%, 12/20/18	HUF		353,850		1,693,109
7.500%, 11/12/20	HUF		305,000		1,587,184
7.000%, 06/24/22	HUF		210,000		1,060,306
6.750%, 10/22/28	HUF		112,000		540,202
					21,961,190
Indonesia | 4.8%
Indonesia Government Bonds:
5.250%, 05/15/18	IDR		13,900,000		1,027,938
7.875%, 04/15/19	IDR		19,243,000		1,563,790
8.250%, 07/15/21	IDR		7,700,000		624,972
7.000%, 05/15/22	IDR		22,290,000		1,666,713
5.625%, 05/15/23	IDR		23,700,000		1,601,746
8.375%, 09/15/26	IDR		17,405,000		1,364,941
7.000%, 05/15/27	IDR		13,980,000		970,674
6.125%, 05/15/28	IDR		58,930,000		3,752,732
8.250%, 06/15/32	IDR		9,500,000		724,014
6.625%, 05/15/33	IDR		5,500,000		354,766

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

Annual Report 43

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Republic of Indonesia:
6.875%, 01/17/18	USD		450	$	503,325
3.375%, 04/15/23 (c)	USD		1,125		959,062
5.375%, 10/17/23	USD		900		895,500
8.500%, 10/12/35	USD		2,350		2,837,625
6.625%, 02/17/37	USD		2,490		2,512,410
5.250%, 01/17/42	USD		500		428,750
					21,788,958
Iraq | 2.4%
Republic of Iraq, 5.800%, 01/15/28	USD		12,700		10,795,000
Ivory Coast | 3.3%
Ivory Coast, 5.750%, 12/31/32 (e)	USD		16,850		15,038,625
Jordan | 0.4%
Kingdom of Jordan, 3.875%, 11/12/15	USD		1,625		1,625,000
Kenya | 0.2%
Kenya Treasury Bond, 12.000%, 09/18/23	KES		72,000		833,968
Latvia | 0.7%
Republic of Latvia:
2.750%, 01/12/20	USD		1,325		1,263,719
5.250%, 06/16/21	USD		1,950		2,106,000
					3,369,719
Lebanon | 1.6%
Lebanese Republic:
9.000%, 03/20/17	USD		3,175		3,536,950
6.100%, 10/04/22	USD		3,997		3,887,082
					7,424,032
Malaysia | 2.8%
Bank Negara Monetary Notes:
0.000%, 01/16/14	MYR		1,200		365,917
0.000%, 02/11/14	MYR		280		85,237
0.000%, 03/25/14	MYR		140		42,460
Malaysia Government Bonds:
3.197%, 10/15/15	MYR		2,000		609,365
4.262%, 09/15/16	MYR		8,000		2,499,178
3.260%, 03/01/18	MYR		10,000		3,003,911
3.580%, 09/28/18	MYR		9,000		2,723,523

Description	Security Currency	Principal Amount (000)		Value
4.378%, 11/29/19	MYR		5,890	$	1,833,461
4.160%, 07/15/21	MYR		1,365		418,825
3.418%, 08/15/22	MYR		1,470		424,559
4.392%, 04/15/26	MYR		2,325		700,236
					12,706,672
Mexico | 5.1%
Mexican Bonos:
6.000%, 06/18/15	MXN		20		1,581
6.250%, 06/16/16	MXN		20,900		1,680,902
5.000%, 06/15/17	MXN		23,720		1,828,661
7.750%, 12/14/17	MXN		87,400		7,337,805
8.500%, 12/13/18	MXN		23,430		2,028,742
8.500%, 05/31/29	MXN		15,600		1,357,118
7.750%, 05/29/31	MXN		36,400		2,918,529
8.500%, 11/18/38	MXN		20,650		1,746,949
7.750%, 11/13/42	MXN		8,796		687,732
Mexican Udibonos:
5.000%, 06/16/16	MXN		11,635		982,671
2.500%, 12/10/20	MXN		13,052		1,012,998
United Mexican States, 6.750%, 09/27/34	USD		1,575		1,858,500
					23,442,188
Mongolia | 0.1%
Mongolia Government International Bond, 4.125%, 01/05/18	USD		725		652,500
Namibia | 0.5%
Republic of Namibia, 5.500%, 11/03/21	USD		2,150		2,193,000
Nigeria | 2.2%
Nigeria Government Bonds:
15.100%, 04/27/17	NGN		36,000		236,391
16.000%, 06/29/19	NGN		142,000		985,255
16.390%, 01/27/22	NGN		222,447		1,602,397
Nigeria Treasury Bills:
0.000%, 03/20/14	NGN		110,000		670,770
0.000%, 04/10/14	NGN		95,000		575,198
0.000%, 04/24/14	NGN		90,000		542,371
0.000%, 05/08/14	NGN		74,000		444,198
0.000%, 06/05/14	NGN		5,000		29,762
0.000%, 08/07/14	NGN		15,000		87,440
0.000%, 09/04/14	NGN		42,900		247,505
0.000%, 10/23/14	NGN		188,000		1,066,493
0.000%, 11/20/14	NGN		26,000		146,060

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

44 Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Republic of Nigeria:
5.125%, 07/12/18 (c)	USD		800	$	820,000
6.750%, 01/28/21	USD		950		1,026,000
6.375%, 07/12/23 (c)	USD		1,325		1,368,063
					9,847,903
Panama | 0.7%
Republic of Panama:
8.875%, 09/30/27	USD		1,775		2,365,187
9.375%, 04/01/29	USD		725		1,005,938
					3,371,125
Paraguay | 0.2%
Republic of Paraguay:
4.625%, 01/25/23	USD		675		631,125
4.625%, 01/25/23 (c)	USD		250		233,750
					864,875
Peru | 0.3%
Republic of Peru, 7.840%, 08/12/20	PEN		3,420		1,392,237
Philippines | 0.2%
Republic of Philippines, 6.250%, 01/14/36	PHP		30,000		718,851
Poland | 3.4%
Poland Government Bonds:
5.250%, 10/25/17	PLN		11,875		4,178,390
5.500%, 10/25/19	PLN		16,827		6,026,506
5.250%, 10/25/20	PLN		1,250		443,748
5.750%, 09/23/22	PLN		5,125		1,871,634
2.750%, 08/25/23	PLN		6,598		2,302,383
4.000%, 10/25/23	PLN		1,600		515,370
					15,338,031
Romania | 2.3%
Romania Government Bonds:
5.800%, 10/26/15	RON		12,650		4,040,405
5.750%, 01/27/16	RON		3,320		1,059,232
6.000%, 04/30/16	RON		1,300		417,187
6.750%, 06/11/17	RON		1,100		363,297
5.900%, 07/26/17	RON		4,850		1,563,439
6.750%, 02/07/22	USD		2,524		2,864,740
					10,308,300

Description	Security Currency	Principal Amount (000)		Value
Russia | 5.8%
Russia Foreign Bonds:
7.850%, 03/10/18	RUB		100,000	$	3,133,684
7.850%, 03/10/18 (c)	RUB		5,000		156,684
5.000%, 04/29/20	USD		500		534,750
7.500%, 03/31/30	USD		1,577		1,837,025
Russia Government Bonds - OFZ:
7.350%, 01/20/16	RUB		23,700		737,135
7.500%, 03/15/18	RUB		8,960		278,926
7.500%, 02/27/19	RUB		100,000		3,099,632
6.800%, 12/11/19	RUB		114,871		3,422,975
7.600%, 04/14/21	RUB		31,975		984,788
7.600%, 07/20/22	RUB		84,000		2,564,111
7.000%, 01/25/23	RUB		29,000		850,400
8.150%, 02/03/27	RUB		35,000		1,098,705
7.050%, 01/19/28	RUB		28,300		800,623
Russian Federation:
3.250%, 04/04/17	USD		1,600		1,669,600
3.250%, 04/04/17 (c)	USD		2,800		2,921,800
4.875%, 09/16/23 (c)	USD		1,600		1,616,000
5.625%, 04/04/42	USD		600		597,000
					26,303,838
Rwanda | 0.5%
Republic of Rwanda, 6.625%, 05/02/23	USD		2,300		2,173,500
Senegal | 0.3%
Republic of Senegal, 8.750%, 05/13/21	USD		1,250		1,393,750
Serbia | 1.0%
Republic of Serbia:
5.875%, 12/03/18 (c)	USD		775		788,562
4.875%, 02/25/20	USD		625		590,938
7.250%, 09/28/21	USD		1,525		1,605,062
Serbia Treasury Bill, 0.000%, 01/03/14	RSD		80,000		960,327
Serbia Treasury Bond, 10.000%, 10/17/16	RSD		38,000		439,049
					4,383,938
South Africa | 3.8%
Eskom Holdings, Ltd., 7.850%, 04/02/26	ZAR		9,000		794,693

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

Annual Report 45

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Republic of South Africa:
13.500%, 09/15/15	ZAR		11,450	$	1,218,993
8.250%, 09/15/17	ZAR		38,440		3,821,017
8.000%, 12/21/18	ZAR		42,550		4,194,623
7.250%, 01/15/20	ZAR		8,775		827,669
7.750%, 02/28/23	ZAR		19,900		1,879,402
10.500%, 12/21/26	ZAR		13,835		1,554,112
7.000%, 02/28/31	ZAR		33,100		2,630,961
6.500%, 02/28/41	ZAR		4,600		323,140
					17,244,610
Sri Lanka | 0.7%
Republic of Sri Lanka, 6.250%, 10/04/20	USD		3,119		3,072,215
Tanzania | 0.3%
United Republic of Tanzania, 6.392%, 03/09/20	USD		1,425		1,489,125
Thailand | 2.5%
Thailand Government Bonds:
3.125%, 12/11/15	THB		27,985		859,321
3.250%, 06/16/17	THB		2,500		76,697
3.875%, 06/13/19	THB		220,300		6,858,932
1.200%, 07/14/21	THB		52,934		1,508,754
3.650%, 12/17/21	THB		66,170		1,999,087
3.580%, 12/17/27	THB		8,700		249,492
					11,552,283
Turkey | 5.7%
Republic of Turkey:
7.000%, 09/26/16	USD		750		823,125
5.625%, 03/30/21	USD		3,300		3,313,200
5.125%, 03/25/22	USD		1,865		1,786,670
3.250%, 03/23/23	USD		675		555,188
7.375%, 02/05/25	USD		2,925		3,157,537
Turkey Government Bonds:
9.000%, 03/05/14	TRY		860		400,674
6.500%, 01/07/15	TRY		3,890		1,753,756
9.000%, 01/27/16	TRY		8,566		3,913,893
9.000%, 03/08/17	TRY		9,300		4,205,989
10.500%, 01/15/20	TRY		1,910		908,339
4.000%, 04/01/20	TRY		2,022		972,031

Description	Security Currency	Principal Amount (000)		Value
3.000%, 07/21/21	TRY		2,844	$	1,283,763
9.500%, 01/12/22	TRY		1,660		743,638
3.000%, 02/23/22	TRY		3,399		1,528,837
7.100%, 03/08/23	TRY		1,705		649,630
					25,996,270
Ukraine | 1.6%
Ukraine Government Bonds:
6.875%, 09/23/15	USD		775		754,850
6.580%, 11/21/16	USD		1,725		1,617,188
9.250%, 07/24/17 (c)	USD		400		398,832
7.750%, 09/23/20	USD		900		830,250
7.800%, 11/28/22	USD		900		813,600
7.800%, 11/28/22 (c)	USD		1,425		1,288,200
7.500%, 04/17/23 (c)	USD		1,875		1,679,062
					7,381,982
Venezuela | 1.0%
Republic of Venezuela:
5.750%, 02/26/16	USD		900		764,550
8.250%, 10/13/24	USD		2,845		2,002,880
7.650%, 04/21/25	USD		1,226		827,550
9.250%, 05/07/28	USD		1,036		766,344
9.375%, 01/13/34	USD		340		252,110
					4,613,434
Vietnam | 0.3%
Socialist Republic of Vietnam, 6.750%, 01/29/20	USD		1,100		1,190,750
Zambia | 0.2%
Republic of Zambia, 5.375%, 09/20/22	USD		825		713,625
Total Foreign Government Obligations (Identified cost $366,808,653)					348,212,551
Quasi Government Bonds | 3.6%
Azerbaijan | 1.2%
State Oil Co. of the Azerbaijan Republic, 4.750%, 03/13/23	USD		5,850		5,513,625

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

46 Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Colombia | 0.3%
Emgesa SA ESP:
8.750%, 01/25/21	COP		1,000,000	$	546,788
8.750%, 01/25/21 (c)	COP		150,000		82,018
Empresas Publicas de Medellin ESP:
8.375%, 02/01/21	COP		1,170,000		627,738
8.375%, 02/01/21 (c)	COP		150,000		80,479
					1,337,023
Kazakhstan | 1.0%
Development Bank of Kazakhstan JSC:
4.125%, 12/10/22	USD		4,300		3,842,910
4.125%, 12/10/22 (c)	USD		675		603,248
					4,446,158
Russia | 0.4%
Russian Agricultural Bank OJSC:
8.700%, 03/17/16	RUB		15,000		455,140
8.625%, 02/17/17	RUB		14,000		420,881
5.298%, 12/27/17	USD		675		695,250
					1,571,271

Description	Security Currency	Principal Amount (000)		Value
Venezuela | 0.7%
Petroleos de Venezuela SA, 5.250%, 04/12/17	USD		4,370	$	3,222,875
Total Quasi Government Bonds (Identified cost $17,101,921)					16,090,952
Description		Shares		Value
Short-Term Investment | 8.2%
State Street Institutional Treasury Money Market Fund (Identified cost $37,374,194)			37,374,194	$	37,374,194
Total Investments | 98.0% (Identified cost $466,966,375) (d), (f)				$	446,158,728
Cash and Other Assets in Excess of Liabilities | 2.0%					9,331,480
Net Assets | 100.0%				$	455,490,208

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

Annual Report 47

Lazard Emerging Markets Debt Portfolio (continued)

Forward Currency Contracts open at December 31, 2013:

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation			Unrealized Depreciation
Forward Currency Purchase Contracts
BRL		SCB	01/03/14		13,792,892		$ 5,936,257	$	5,846,304		$	—		$	89,953
BRL		SCB	02/04/14		13,792,892		5,799,231		5,799,333			102			—
EUR		SCB	01/17/14		3,271,799		4,520,000		4,500,982			—			19,018
IDR		JPM	01/27/14		6,133,355,437		500,887		501,978			1,091			—
MXN		BRC	01/17/14		21,866,000		1,677,806		1,672,827			—			4,979
MXN		BRC	01/17/14		41,783,053		3,225,096		3,196,552			—			28,544
MXN		CIT	01/17/14		21,866,000		1,678,256		1,672,827			—			5,429
MXN		JPM	01/17/14		21,866,000		1,677,844		1,672,827			—			5,017
MXN		JPM	01/17/14		21,866,000		1,677,844		1,672,827			—			5,017
MXN		JPM	01/17/14		26,769,002		2,067,647		2,047,924			—			19,723
MXN		SCB	01/17/14		21,866,000		1,678,063		1,672,827			—			5,236
MYR		CIT	01/06/14		1,452,150		450,000		443,252			—			6,748
MYR		SCB	01/16/14		29,596,118		9,214,807		9,028,090			—			186,717
PHP		JPM	01/10/14		59,285,250		1,350,000		1,335,930			—			14,070
PLN		BRC	01/17/14		4,925,978		1,617,090		1,629,110			12,020			—
PLN		BRC	01/17/14		4,925,978		1,619,535		1,629,110			9,575			—
PLN		CIT	01/17/14		4,020,294		1,323,205		1,329,584			6,379			—
PLN		CIT	01/17/14		4,020,294		1,319,921		1,329,584			9,663			—
PLN		JPM	01/17/14		4,020,294		1,323,075		1,329,584			6,509			—
PLN		JPM	01/17/14		4,020,294		1,320,467		1,329,584			9,117			—
PLN		SCB	01/17/14		4,020,294		1,319,947		1,329,584			9,637			—
PLN		SCB	01/17/14		4,020,294		1,322,770		1,329,584			6,814			—
RSD		CIT	01/08/14		108,856,500		1,294,293		1,304,063			9,770			—
RSD		CIT	01/17/14		55,824,000		661,736		667,225			5,489			—
RSD		HSB	01/09/14		95,735,000		1,136,590		1,146,580			9,990			—
RUB		BRC	01/17/14		35,025,827		1,062,676		1,062,899			223			—
RUB		BRC	01/17/14		35,025,827		1,062,096		1,062,899			803			—
RUB		JPM	01/17/14		35,025,827		1,062,854		1,062,899			45			—
RUB		JPM	01/17/14		35,025,827		1,061,762		1,062,899			1,137			—
THB		JPM	01/06/14		29,493,100		910,000		897,409			—			12,591
THB		JPM	03/03/14		63,277,500		1,950,000		1,920,381			—			29,619
TRY		JPM	01/17/14		1,096,219		511,277		508,560			—			2,717
UYU		CIT	01/21/14		12,144,000		550,000		559,631			9,631			—
UYU		HSB	01/17/14		12,039,500		560,237		555,498			—			4,739
UYU		JPM	01/17/14		12,039,500		560,707		555,498			—			5,209
UYU		JPM	01/21/14		12,127,500		550,000		558,871			8,871			—
Total Forward Currency Purchase Contracts							$65,553,976	$	65,225,516		$	116,866		$	445,326

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

48 Annual Report

Lazard Emerging Markets Debt Portfolio (concluded)

Forward Currency Contracts open at December 31, 2013 (concluded):

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date			US $ Current Value		Unrealized Appreciation			Unrealized Depreciation
Forward Currency Sale Contracts
BRL		SCB	01/03/14		13,792,892		$	5,846,924	$	5,846,304		$	620		$	—
CLP		SCB	01/21/14		409,178,000			770,000		777,109			—			7,109
CZK		BRC	01/17/14		34,025,400			1,686,254		1,713,553			—			27,299
CZK		JPM	01/17/14		25,180,225			1,248,802		1,268,101			—			19,299
CZK		SCB	01/17/14		27,677,512			1,372,722		1,393,867			—			21,145
EUR		BRC	01/17/14		882,833			1,215,126		1,214,504			622			—
EUR		BRC	01/17/14		882,833			1,217,776		1,214,504			3,272			—
EUR		CIT	01/08/14		930,000			1,294,293		1,279,398			14,895			—
EUR		CIT	01/17/14		480,000			661,735		660,331			1,404			—
EUR		HSB	01/09/14		820,000			1,136,590		1,128,070			8,520			—
EUR		SCB	01/17/14		721,607			995,385		992,708			2,677			—
EUR		SCB	01/17/14		721,607			992,996		992,708			288			—
HUF		CIT	01/17/14		646,494,049			2,938,008		2,989,526			—			51,518
IDR		JPM	01/27/14		11,392,500,000			929,241		932,406			—			3,165
IDR		SCB	01/27/14		11,392,500,000			930,000		932,406			—			2,406
KES		CIT	01/06/14		75,480,000			850,000		873,903			—			23,903
MXN		CIT	01/17/14		8,609,419			665,581		658,651			6,930			—
MXN		SCB	01/17/14		17,218,838			1,330,154		1,317,303			12,851			—
PEN		CIT	01/24/14		1,833,150			660,000		653,096			6,904			—
PEN		HSB	01/24/14		1,862,935			670,000		663,708			6,292			—
PEN		JPM	01/24/14		1,862,600			670,000		663,588			6,412			—
TRY		BRC	01/17/14		2,713,763			1,320,887		1,258,974			61,913			—
TRY		JPM	01/17/14		1,063,204			517,828		493,244			24,584			—
TRY		SCB	01/17/14		2,713,763			1,320,309		1,258,975			61,334			—
ZAR		BRC	01/17/14		15,028,741			1,440,114		1,429,811			10,303			—
ZAR		JPM	01/17/14		15,028,741			1,439,617		1,429,810			9,807			—
ZAR		SCB	01/17/14		20,512,452			1,963,778		1,951,522			12,256			—
Total Forward Currency Sale Contracts							$	36,084,120	$	35,988,080			251,884			155,844
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts												$	368,750		$	601,170

Interest Rate Swap Agreement open at December 31, 2013:

Currency

Counterparty

Notional Amount

Expiration Date

Receive (Pay) Rate

Variable Rate

Unrealized Depreciation

ZAR

BRC

15,200,000

10/16/17

5.78

%

South Africa JohannesburgInterbank Agreed Rate 3 Month

$57,579

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

Annual Report 49

Description	Security Currency	Principal Amount (000)		Value
Lazard Explorer Total Return Portfolio
Corporate Bonds | 17.5%
Argentina | 0.3%
YPF Sociedad Anonima, 8.875%, 12/19/18 (c)	USD		100	$	103,750
Brazil | 0.6%
Banco do Brasil SA, 9.250%, 04/15/23	USD		200		206,000
Bulgaria | 0.5%
Bulgarian Energy Holding EAD, 4.250%, 11/07/18	EUR		125		167,491
China | 0.6%
China Lesso Group Holdings, Ltd., 7.875%, 05/13/16	USD		200		210,000
Colombia | 2.1%
Banco GNB Sudameris SA, 3.875%, 05/02/18	USD		115		110,544
Grupo Aval, Ltd., 4.750%, 09/26/22	USD		200		184,500
Millicom International Cellular SA, 4.750%, 05/22/20	USD		200		192,000
Pacific Rubiales Energy Corp., 7.250%, 12/12/21	USD		225		238,500
					725,544
Georgia | 0.6%
Bank of Georgia JSC, 7.750%, 07/05/17	USD		200		207,500
Guatemala | 1.0%
Cementos Progreso Trust, 7.125%, 11/06/23 (c)	USD		200		202,750
Industrial Senior Trust, 5.500%, 11/01/22	USD		150		138,000
					340,750
India | 1.0%
Vedanta Resources PLC, 9.500%, 07/18/18	USD		300		333,000
Indonesia | 0.6%
PT Gajah Tunggal Tbk, 7.750%, 02/06/18	USD		200		196,000

Description	Security Currency	Principal Amount (000)		Value
Kazakhstan | 1.9%
Halyk Savings Bank of Kazakhstan JSC, 7.250%, 05/03/17	USD		200	$	216,660
KazAgro National Management Holding JSC, 4.625%, 05/24/23	USD		250		229,250
Zhaikmunai LP, 7.125%, 11/13/19	USD		200		209,240
					655,150
Nigeria | 1.9%
Afren PLC, 6.625%, 12/09/20 (c)	USD		225		225,000
FBN Finance Co. BV, 8.250%, 08/07/20 (c)	USD		200		201,792
GTB Finance BV, 6.000%, 11/08/18 (c)	USD		200		196,157
					622,949
Russia | 5.4%
Alliance Oil Co., Ltd., 7.000%, 05/04/20	USD		200		192,000
ALROSA Finance SA, 7.750%, 11/03/20	USD		200		221,700
EDC Finance, Ltd., 4.875%, 04/17/20	USD		200		194,250
Gazprom Neft OAO, 6.000%, 11/27/23 (c)	USD		200		203,000
Gazprom OAO, 8.625%, 04/28/34	USD		110		129,800
Lukoil International Finance BV, 6.125%, 11/09/20	USD		200		216,700
Metalloinvest Finance, Ltd., 5.625%, 04/17/20	USD		200		194,000
MTS International Funding, Ltd., 8.625%, 06/22/20	USD		100		118,000
Rosneft Oil Co., 4.199%, 03/06/22	USD		200		183,500
Sibur Securities, Ltd., 3.914%, 01/31/18	USD		200		195,250
					1,848,200
Trinidad and Tobago | 0.7%
Petroleum Co. of Trinidad and Tobago Ltd., 9.750%, 08/14/19	USD		200		250,500

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

50 Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Explorer Total Return Portfolio (continued)
Ukraine | 0.3%
DTEK Finance BV, 9.500%, 04/28/15	USD		100	$	100,625
Total Corporate Bonds (Identified cost $5,961,482)					5,967,459
Foreign Government Obligations | 46.8%
Angola | 2.5%
Republic of Angola Northern Lights III BV, 7.000%, 08/16/19	USD		775		837,969
Bahrain | 2.1%
Kingdom of Bahrain:
6.125%, 08/01/23	USD		200		206,300
6.125%, 08/01/23 (c)	USD		500		515,750
					722,050
Belize | 0.4%
Republic of Belize, 5.000%, 02/20/38 (e)	USD		240		150,600
Bolivia | 1.1%
Bolivia Government Bonds:
4.875%, 10/29/22	USD		200		190,500
5.950%, 08/22/23 (c)	USD		200		197,000
					387,500
Brazil | 6.3%
Brazil Letras do Tesouro Nacional:
0.000%, 01/01/15	BRL		1,740		665,860
0.000%, 01/01/17	BRL		2,650		791,002
Brazil Minas SPE, 5.333%, 02/15/28	USD		400		371,000
Brazil NTN-F:
10.000%, 01/01/21	BRL		380		131,691
10.000%, 01/01/23	BRL		500		178,997
					2,138,550
Colombia | 0.8%
Republic of Colombia, 8.125%, 05/21/24	USD		200		257,000

Description	Security Currency	Principal Amount (000)		Value
Congo | 0.6%
Republic of Congo, 3.500%, 06/30/29 (e)	USD		228	$	201,780
Dominican Republic | 0.5%
Dominican Republic, 9.040%, 01/23/18	USD		167		180,603
Ecuador | 1.2%
Republic of Ecuador, 9.375%, 12/15/15	USD		375		395,625
El Salvador | 0.9%
Republic of El Salvador:
7.375%, 12/01/19	USD		100		108,875
8.250%, 04/10/32	USD		190		202,587
					311,462
Gabon | 0.7%
Gabonese Republic, 6.375%, 12/12/24 (c)	USD		250		250,625
Georgia | 0.6%
Republic of Georgia, 6.875%, 04/12/21	USD		200		214,000
Guatemala | 0.6%
Republic of Guatemala, 5.750%, 06/06/22	USD		200		206,500
Hungary | 1.5%
Hungary:
6.250%, 01/29/20	USD		75		80,906
5.750%, 11/22/23	USD		190		190,950
7.625%, 03/29/41	USD		204		223,125
					494,981
Indonesia | 1.4%
Republic of Indonesia, 8.500%, 10/12/35	USD		400		483,000
Iraq | 2.3%
Republic of Iraq, 5.800%, 01/15/28	USD		925		786,250
Ivory Coast | 3.4%
Ivory Coast, 5.750%, 12/31/32 (e)	USD		1,300		1,160,250

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

Annual Report 51

Description	Security Currency	Principal Amount (000)		Value
Lazard Explorer Total Return Portfolio (continued)
Kenya | 0.1%
Kenya Treasury Bill, 0.000%, 04/28/14	KES		2,000	$	22,432
Mexico | 5.6%
Mexican Bonos:
6.250%, 06/16/16	MXN		1,010		81,230
7.250%, 12/15/16	MXN		3,410		281,080
5.000%, 06/15/17	MXN		950		73,239
4.750%, 06/14/18	MXN		5,770		431,375
8.500%, 12/13/18	MXN		5,900		510,866
8.000%, 06/11/20	MXN		3,410		291,804
United Mexican States, 6.750%, 09/27/34	USD		200		236,000
					1,905,594
Nigeria | 1.6%
Nigeria Treasury Bills:
0.000%, 05/22/14	NGN		20,000		119,524
0.000%, 09/04/14	NGN		17,700		102,117
0.000%, 10/23/14	NGN		20,700		117,428
Republic of Nigeria, 6.375%, 07/12/23 (c)	USD		200		206,500
					545,569
Panama | 0.9%
Republic of Panama, 8.875%, 09/30/27	USD		235		313,137
Paraguay | 0.5%
Republic of Paraguay, 4.625%, 01/25/23	USD		200		187,000
Peru | 0.1%
Republic of Peru, 6.550%, 03/14/37	USD		25		28,750
Philippines | 0.2%
Republic of Philippines, 9.500%, 02/02/30	USD		50		74,812
Romania | 1.1%
Romania Government Bond, 5.900%, 07/26/17	RON		1,120		361,042

Description	Security Currency	Principal Amount (000)		Value
Russia | 2.3%
Russia Government Bonds - OFZ:
7.400%, 04/19/17	RUB		2,830	$	87,806
6.200%, 01/31/18	RUB		7,800		230,981
7.500%, 03/15/18	RUB		2,500		77,825
7.500%, 02/27/19	RUB		13,000		402,952
					799,564
Rwanda | 0.6%
Republic of Rwanda, 6.625%, 05/02/23	USD		225		212,625
Serbia | 1.8%
Republic of Serbia:
5.875%, 12/03/18 (c)	USD		200		203,500
4.875%, 02/25/20	USD		200		189,100
7.250%, 09/28/21	USD		200		210,500
					603,100
South Africa | 1.2%
Republic of South Africa, 13.500%, 09/15/15	ZAR		3,800		404,557
Sri Lanka | 0.2%
Republic of Sri Lanka, 6.250%, 10/04/20	USD		75		73,875
Tanzania | 0.6%
United Republic of Tanzania, 6.392%, 03/09/20	USD		200		209,000
Turkey | 1.0%
Republic of Turkey, 7.375%, 02/05/25	USD		300		323,850
Uganda | 0.0%
Uganda Treasury Bill, 0.000%, 08/07/14	UGX		30,000		10,518
Ukraine | 0.8%
Ukraine Government Bonds:
7.750%, 09/23/20	USD		100		92,250
7.800%, 11/28/22	USD		200		180,800
					273,050
United Arab Emirates | 0.8%
Dubai Government InternationalBond, 5.591%, 06/22/21	USD		250		270,312

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

52 Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Explorer Total Return Portfolio (continued)
Uruguay | 0.5%
Republica of Uruguay, 7.875%, 01/15/33	USD		75	$	92,063
Uruguay Monetary Regulation Bill, 0.000%, 11/26/15	UYU		1,800		63,997
					156,060
Total Foreign Government Obligations (Identified cost $16,077,737)					15,953,592
Quasi Government Bonds | 3.6%
Azerbaijan | 1.1%
State Oil Co. of the Azerbaijan Republic, 4.750%, 03/13/23	USD		400		377,000
Brazil | 0.4%
Banco Nacional de Desenvolvimento Economico e Social, 5.750%, 09/26/23 (c)	USD		125		123,594
Kazakhstan | 0.5%
Development Bank of Kazakhstan JSC, 4.125%, 12/10/22	USD		200		178,740
Russia | 1.1%
Vnesheconombank, 5.942%,11/21/23 (c)	USD		400		393,709
Ukraine | 0.5%
Ukreximbank (Biz Finance PLC), 8.375%, 04/27/15	USD		175		166,687
Total Quasi Government Bonds (Identified cost $1,252,865)					1,239,730

Description	Shares		Value
Short-Term Investment | 27.6%
State Street Institutional Treasury Money Market Fund (Identified cost $9,426,266)		9,426,266	$	9,426,266
Total Investments | 95.5% (Identified cost $32,718,350) (d), (f)				32,587,047

Description	Number of Contracts		Value
Purchased Options | 0.2%
INR vs USD February 14 62.00 Put, Expires 02/20/14		6,180	$	7,540
USD vs EUR April 14 1.38 Put, Expires 04/01/14		15,500		33,229
ZAR vs USD February 14 10.35 Put, Expires 02/11/14		13,800		11,592
Total Purchased Options (Identified cost $63,877)				52,361
Total Investments and Purchased Options | 95.7% (Identified cost $32,782,227)			$	32,639,408
Cash and Other Assets in Excess of Liabilities | 4.3%				1,474,925
Net Assets | 100.0%			$	34,114,333

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

Annual Report 53

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at December 31, 2013:

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date			US $ Current Value			Unrealized Appreciation			Unrealized Depreciation
Forward Currency Purchase Contracts
BRL		SCB	01/03/14		525,903		$	222,935		$	222,911		$	—		$	24
EUR		JPM	01/17/14		297,646			410,000			409,469			—			531
INR		SCB	01/27/14		20,940,150			335,303			336,567			1,264			—
MXN		BRC	01/17/14		5,200,000			399,002			397,818			—			1,184
MXN		CIT	01/17/14		5,200,000			399,110			397,819			—			1,291
MXN		JPM	01/17/14		1,424,610			110,000			108,988			—			1,012
MXN		JPM	01/17/14		5,200,000			399,012			397,819			—			1,193
MXN		JPM	01/17/14		5,200,000			399,012			397,819			—			1,193
MXN		SCB	01/17/14		5,200,000			399,064			397,819			—			1,245
MYR		JPM	01/10/14		532,785			165,000			162,585			—			2,415
MYR		SCB	01/10/14		532,785			165,000			162,585			—			2,415
PHP		JPM	01/13/14		14,589,300			330,000			328,768			—			1,232
PLN		BRC	01/17/14		309,201			101,503			102,258			755			—
PLN		BRC	01/17/14		309,201			101,657			102,258			601			—
PLN		CIT	01/17/14		309,201			101,767			102,258			491			—
PLN		CIT	01/17/14		309,201			101,515			102,258			743			—
PLN		JPM	01/17/14		309,201			101,757			102,258			501			—
PLN		JPM	01/17/14		309,201			101,557			102,258			701			—
PLN		SCB	01/17/14		371,070			121,830			122,720			890			—
PLN		SCB	01/17/14		371,070			122,091			122,720			629			—
RUB		BRC	01/17/14		2,530,102			76,763			76,779			16			—
RUB		BRC	01/17/14		2,530,102			76,721			76,779			58			—
RUB		JPM	01/17/14		6,261,277			189,998			190,006			8			—
RUB		JPM	01/17/14		6,261,277			189,803			190,006			203			—
UYU		CIT	01/21/14		883,200			40,000			40,700			700			—
UYU		HSB	01/17/14		875,600			40,745			40,400			—			345
UYU		JPM	01/17/14		875,600			40,779			40,400			—			379
UYU		JPM	01/21/14		882,000			40,000			40,645			645			—
Total Forward Currency Purchase Contracts							$	5,281,924		$	5,275,670		$	8,205		$	14,459
Forward Currency Sale Contracts
BRL		BRC	02/04/14		103,959			43,800			43,711			89			—
BRL		BRC	02/04/14		288,360			120,000			121,243			—			1,243
BRL		BRC	02/04/14		445,462			187,800			187,298			502			—
BRL		CIT	02/04/14		288,300			120,000			121,218			—			1,218
BRL		SCB	01/03/14		525,903			226,341			222,911			3,430			—
BRL		SCB	02/04/14		142,380			60,000			59,865			135			—
BRL		SCB	02/04/14		168,210			70,000			70,725			—			725
BRL		SCB	02/04/14		288,300			120,000			121,218			—			1,218
BRL		SCB	02/04/14		445,462			187,800			187,298			502			—
BRL		SCB	02/04/14		525,903			221,116			221,120			—			4

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

54 Annual Report

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at December 31, 2013 (concluded):

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date			US $ Current Value			Unrealized Appreciation			Unrealized Depreciation
Forward Currency Sale Contracts (concluded)
CAD		BRC	01/17/14		7,934		$	7,449		$	7,466		$	—		$	17
CAD		BRC	01/17/14		78,475			74,444			73,850			594			—
CAD		SCB	01/17/14		238,475			226,229			224,419			1,810			—
CLP		SCB	01/31/14		89,590,000			170,000			169,954			46			—
CZK		BRC	01/17/14		2,079,330			103,049			104,717			—			1,668
CZK		JPM	01/17/14		1,514,600			75,116			76,277			—			1,161
CZK		SCB	01/17/14		1,706,148			84,620			85,923			—			1,303
EUR		BRC	01/17/14		254,151			349,812			349,633			179			—
EUR		BRC	01/17/14		254,151			350,575			349,633			942			—
EUR		SCB	01/17/14		47,500			65,364			65,345			19			—
EUR		SCB	01/17/14		47,500			65,521			65,345			176			—
HUF		CIT	01/17/14		6,215,871			28,249			28,744			—			495
MXN		BRC	01/17/14		7,061,013			545,017			540,193			4,824			—
MXN		CIT	01/17/14		2,729,017			210,976			208,780			2,196			—
MXN		JPM	01/17/14		1,102,918			85,000			84,377			623			—
MXN		JPM	01/17/14		1,467,618			113,359			112,278			1,081			—
MXN		SCB	01/17/14		1,103,088			85,000			84,390			610			—
MXN		SCB	01/17/14		5,458,033			421,633			417,559			4,074			—
PEN		CIT	01/24/14		166,650			60,000			59,372			628			—
PEN		HSB	01/24/14		166,830			60,000			59,437			563			—
PEN		JPM	01/24/14		166,800			60,000			59,426			574			—
PEN		SCB	01/21/14		195,090			70,000			69,541			459			—
PEN		SCB	01/21/14		242,382			87,000			86,398			602			—
RUB		BRC	01/17/14		2,751,558			83,000			83,499			—			499
RUB		BRC	01/17/14		2,753,010			83,000			83,543			—			543
RUB		BRC	01/17/14		3,646,005			110,000			110,642			—			642
RUB		BRC	01/17/14		13,330,716			403,000			404,536			—			1,536
RUB		CIT	01/17/14		3,646,500			110,000			110,657			—			657
RUB		HSB	01/17/14		3,857,420			116,600			117,058			—			458
RUB		HSB	01/17/14		4,640,611			140,000			140,825			—			825
RUB		JPM	01/17/14		2,751,948			83,000			83,511			—			511
RUB		JPM	01/17/14		2,753,152			83,000			83,548			—			548
RUB		JPM	01/17/14		3,646,225			110,000			110,649			—			649
TRY		BRC	01/17/14		247,438			120,437			114,792			5,645			—
TRY		JPM	01/17/14		496,636			241,884			230,401			11,483			—
TRY		SCB	01/17/14		247,438			120,384			114,792			5,592			—
ZAR		SCB	01/17/14		4,371,466			418,506			415,894			2,612			—
Total Forward Currency Sale Contracts							$	6,978,081		$	6,944,011			49,990			15,920
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts													$	58,195		$	30,379

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

Annual Report 55

Lazard Explorer Total Return Portfolio (concluded)

Written Options open at December 31, 2013:

Description	Number of Contracts		Strike Price		Expiration Date	Premium			Value
INR vs USD February 14 60.00 Put		6,180		60.00	02/20/14		$	2,287		$	(1,730	)
USD vs EUR April 14 1.35 Put		15,500		1.35	04/01/14			17,995			(17,982	)
ZAR vs USD February 14 10.00 Put		13,800		10.00	02/11/14			6,693			(2,484	)
Total Written Options							$	26,975		$	(22,197	)

Credit Default Swap Agreements open at December 31, 2013:

Referenced Obligation	Counterparty		Notional Amount		Expiration Date	Receive (Pay) Rate			Value				Upfront Premiums Paid (Received)				Unrealized Appreciation			Unrealized Depreciation
ITRAXX		BRC		300,000	12/20/18		1.00	%		$	(20,949	)		$	(20,046	)		$	—		$	903
ITRAXX		JPM		100,000	12/20/18		1.00	%			(6,983	)			(6,639	)			—			344
ITRAXX		JPM		1,030,000	12/20/18		1.00	%			(71,923	)			(68,454	)			—			3,469
Markit CDS EM20 Series 9PA		BRC		2,960,000	12/20/18		5.00	%			300,416				295,704				4,712			—
Markit CDS EM20 Series 9PA		BRC		355,000	12/20/18		5.00	%			36,030				34,684				1,346			—
Markit CDS EM20 Series 9PA		BRC		700,000	12/20/18		5.00	%			71,044				69,650				1,394			—
Markit CDS EM20 Series 9PA		BRC		240,000	12/20/18		5.00	%			24,358				24,360				—			2
People’s Republic of China		BRC		160,000	03/20/19		1.00	%			(1,646	)			(2,167	)			521			—
Republic of South Africa		BRC		2,350,000	03/20/19		(1.00	%)			117,401				125,903				—			8,502
Republic of South Africa		JPM		2,200,000	03/20/19		(1.00	%)			(22,631	)			(28,477	)			5,846			—
Total Credit Default Swap Agreements										$	425,117			$	424,518			$	13,819		$	13,220

Interest Rate Swap Agreements open at December 31, 2013:

Currency	Counterparty		Notional Amount		Expiration Date	Receive (Pay) Rate			Variable Rate	Unrealized Appreciation			Unrealized Depreciation
HUF		BRC		143,510,000	12/23/18		4.10	%	Budapest LIBOR 6 Month		$	—		$	2,510
RUB		BRC		6,000,000	09/16/17		6.93	%	RUB-MOSPRIME-NFEA			—			1,134
RUB		BRC		3,000,000	09/11/16		6.90	%	RUB-MOSPRIME-NFEA			—			300
ZAR		BRC		3,240,000	10/21/16		6.22	%	South Africa Johannesburg Interbank Agreed Rate 3 Month			—			2,653
ZAR		BRC		3,500,000	09/19/18		6.79	%	South Africa Johannesburg Interbank Agreed Rate 3 Month			—			6,508
ZAR		BRC		2,000,000	09/17/18		7.12	%	South Africa Johannesburg Interbank Agreed Rate 3 Month			—			1,189
Total unrealized depreciation on Interest Rate Swap Agreements												—			14,294
Gross unrealized appreciation/depreciation on Swap Agreements											$	13,819		$	27,514

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

56 Annual Report

   The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2013

(a)	Non-income producing security.
(b)	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.
(c)	Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers”, and are considered to be liquid at December 31, 2013. The percentage of net assets are as follows:

Portfolio	Percentage of Net Assets
Emerging Markets Equity	1.9	%
Emerging Markets Core Equity	3.0
Emerging Markets Equity Blend	0.9
Emerging Markets Multi-Strategy	3.5
Emerging Markets Debt	7.9
Explorer Total Return	8.9

(d) 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)
Emerging Markets Equity	$	13,899,123,605	$	2,017,822,448	$	1,190,326,736	$	827,495,712
Emerging Markets Core Equity		3,873,379		88,232		125,068		(36,836	)
Developing Markets Equity		601,269,643		42,089,470		53,023,082		(10,933,612	)
Emerging Markets Equity Blend		585,262,512		49,713,712		36,843,839		12,869,873
Emerging Markets Multi-Strategy		228,501,869		10,278,841		14,862,799		(4,583,958	)
Emerging Markets Debt		468,113,424		3,899,519		25,854,215		(21,954,696	)
Explorer Total Return		32,785,856		293,001		439,449		(146,448	)

(e)	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, 2013 which may step up at a future date.
(f)	The Portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts.

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

Annual Report 57

Security Abbreviations:
ADR	—	American Depositary Receipt
GDR	—	Global Depositary Receipt
NTN-B	—	Brazil Sovereign “Nota do Tesouro Nacional” Series B
NTN-F	—	Brazil Sovereign “Nota do Tesouro Nacional” Series F
REIT	—	Real Estate Investment Trust
SDR	—	Swedish Depositary Receipt

Currency Abbreviations:
AMD	—	Armenian Dram	NGN	—	Nigerian Naira
BRL	—	Brazilian Real	PEN	—	Peruvian New Sol
CAD	—	Canadian Dollar	PHP	—	Philippine Peso
CLP	—	Chilean Peso	PLN	—	Polish Zloty
CNY	—	Chinese Renminbi	RON	—	New Romanian Leu
COP	—	Colombian Peso	RSD	—	Serbian Dinar
CZK	—	Czech Koruna	RUB	—	Russian Ruble
EUR	—	Euro	SEK	—	Swedish Krona
GHS	—	Ghanaian Cedi	SGD	—	Singapore Dollar
HUF	—	Hungarian Forint	THB	—	Thai Baht
IDR	—	Indonesian Rupiah	TRY	—	New Turkish Lira
INR	—	Indian Rupee	TWD	—	New Taiwan Dollar
JPY	—	Japanese Yen	UGX	—	Ugandan Shilling
KES	—	Kenya Shilling	USD	—	United States Dollar
KRW	—	South Korean Won	UYU	—	Uruguayan Peso
KZT	—	Kazakhstan Tenge	ZAR	—	South African Rand
MXN	—	Mexican New Peso	ZMW	—	Zambian Kwacha
MYR	—	Malaysian Ringgit

Counterparty Abbreviations:
BNP	—	BNP Paribas SA	JPM	—	JPMorgan Chase Bank
BRC	—	Barclays Bank PLC	SCB	—	Standard Chartered Bank
CIT	—	Citibank NA	SSB	—	State Street Bank and Trust Co.
HSB	—	HSBC Bank USA	UBS	—	UBS AG

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

58 Annual Report

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

Industry	Lazard Emerging Markets Equity Portfolio			Lazard Emerging Markets Core 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 Explorer Total Return Portfolio
Agricultural		—	%		0.6	%		—	%		—	%		—	%		—	%		—	%
Alcohol & Tobacco		4.2			1.0			—			2.0			1.1			—			—
Automotive		0.8			3.7			3.6			1.3			0.9			0.4			0.6
Banking		21.5			21.0			19.3			20.0			13.1			3.5			6.3
Building Materials		—			1.7			—			0.5			0.5			0.4			1.2
Cable Television		—			—			—			0.6			0.3			—			—
Chemicals		0.8			0.7			—			—			—			—			—
Coal Producer & Power Generator		—			—			—			—			—			—			0.3
Commercial Services		4.6			1.3			—			1.7			0.9			—			—
Computer Software		3.1			2.7			4.8			4.1			2.2			—			—
Construction & Engineering		1.2			—			2.1			2.0			1.1			—			—
Consumer Products		—			2.4			2.5			1.4			0.7			—			—
Diamonds & Precious Stones		—			—			—			—			0.1			0.3			0.6
Diversified		1.4			1.1			—			1.3			0.7			—			—
Electric		—			—			1.6			—			—			0.4			—
Energy		—			—			—			—			0.6			1.4			2.2
Energy Exploration & Production		6.2			2.8			4.1			3.4			2.2			1.4			1.2
Energy Integrated		4.1			2.4			4.5			6.0			4.4			2.7			4.5
Energy Services		—			2.2			2.8			1.7			1.1			0.3			0.6
Financial Services		3.6			1.1			2.9			2.7			1.5			0.2			1.2
Food & Beverages		0.7			2.3			—			1.2			0.6			—			—
Forest & Paper Products		0.8			1.8			—			1.5			0.9			0.1			—
Gas Distribution		—			1.5			—			—			—			—			—
Health Services		—			1.2			—			—			—			—			—
Household & Personal Products		2.9			1.2			—			1.6			0.9			—			—
Housing		1.2			0.9			1.6			0.9			0.5			—			—
Insurance		3.1			2.7			3.0			2.9			1.6			—			—
Leisure & Entertainment		2.6			3.6			6.1			5.7			3.1			0.2			—
Manufacturing		4.0			1.6			10.0			6.5			3.6			—			—
Medical Products		—			1.1			—			—			—			—			—
Metals & Mining		3.1			—			4.9			3.6			2.4			0.7			1.5
Pharmaceutical & Biotechnology		—			2.2			3.6			1.4			0.8			—			—
Real Estate		—			3.8			2.6			2.4			1.4			—			—
Retail		5.2			7.5			2.6			3.1			1.7			—			—
Semiconductors & Components		7.2			12.6			7.9			6.7			3.7			—			—
Technology		1.8			1.7			—			—			—			—			—
Technology Hardware		1.1			—			1.0			1.8			1.0			—			—
Telecommunications		11.2			3.9			—			6.1			3.8			0.9			0.9
Transportation		2.0			3.4			6.0			2.2			1.2			0.5			—
Water		—			0.9			—			—			—			—			—
Subtotal		98.4			98.6			97.5			96.3			58.6			13.4			21.1
Foreign Government Obligations		—			—			—			—			15.2			76.4			46.8
US Treasury Securities		—			—			—			—			6.7			—			—
Short-Term Investments		0.4			—			0.4			3.8			18.8			8.2			27.6
Total Investments		98.8	%		98.6	%		97.9	%		100.1	%		99.3	%		98.0	%		95.5	%

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

Annual Report 59

   The Lazard Funds, Inc. Statements of Assets and Liabilities

	Lazard				Lazard Emerging
	Emerging Markets				Markets Core
December 31, 2013	Equity Portfolio				Equity Portfolio
ASSETS
Investments in securities and purchased options, at value		$	14,726,619,317		$	3,836,543
Cash			—			—
Foreign currency			11,933,844			26,729
Receivables for:
Investments sold			160,712,859			—
Capital stock sold			35,972,364			—
Dividends and interest			1,471,277			1,362
Amount due from Investment Manager (Note 3)			—			56,003
Gross unrealized appreciation on:
Forward currency contracts			—			—
Swap agreements			—			—
Premium for swap agreements purchased			—			—
Deferred offering costs (Note 2(h))			—			79,823
Total assets			14,936,709,661			4,000,460
LIABILITIES
Payables for:
Due to custodian			—			10,039
Foreign currency due to custodian			—			—
Management fees			12,631,923			—
Accrued distribution fees			469,321			96
Accrued directors’ fees			24,105			3
Capital stock redeemed			22,801,258			—
Investments purchased			106,270			—
Dividends			—			—
Gross unrealized depreciation on:
Forward currency contracts			—			—
Swap agreements			—			—
Written options, at value			—			—
Other accrued expenses and payables			2,417,925			97,908
Total liabilities			38,450,802			108,046
Net assets		$	14,898,258,859		$	3,892,414
NET ASSETS
Paid in capital		$	13,951,383,144		$	3,934,364
Undistributed (distributions in excess of) net investment income			(9,501,570	)		6
Accumulated net realized gain (loss)			67,087,180			(9,380	)
Net unrealized appreciation (depreciation) on:
Investments			889,361,286			(32,368	)
Foreign currency and forward currency contracts			(71,181	)		(208	)
Written options			—			—
Swap agreements			—			—
Net assets		$	14,898,258,859		$	3,892,414
Institutional Shares
Net assets		$	12,691,328,970		$	3,265,444
Shares of capital stock outstanding*			679,948,606			332,077
Net asset value, offering and redemption price per share		$	18.67		$	9.83
Open Shares
Net assets		$	2,206,929,889		$	626,970
Shares of capital stock outstanding*			115,276,325			63,785
Net asset value, offering and redemption price per share		$	19.14		$	9.83
Cost of investments in securities and purchased options		$	13,837,258,031		$	3,868,911
Cost of foreign currency		$	11,977,378		$	26,936

* $0.001 par value $5,400,000,000 shares authorized for the Portfolios in total.

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

60 Annual Report

Lazard Developing Markets Equity Portfolio			Lazard Emerging Markets Equity Blend Portfolio			Lazard Emerging Markets Multi-Strategy Portfolio			Lazard Emerging Markets Debt Portfolio			Lazard Explorer Total Return Portfolio
$	590,336,031		$	598,132,385		$	223,917,911		$	446,158,728		$	32,639,408
	—			—			729,563			922,741			436,822
	6,405,026			21,604			1,130,216			2,274,558			—
	—			442,113			99,604			—			172,036
	9,059,783			1,157,292			313,760			71,261			175,523
	391,127			337,231			983,080			6,907,432			333,820
	—			—			—			—			27,887
	—			—			468,899			368,750			58,195
	—			—			27,293			—			13,819
	—			—			864,961			1,983			436,128
	—			—			—			—			31,410
	606,191,967			600,090,625			228,535,287			456,705,453			34,325,048
	—			—			—			—			—
	—			—			—			—			93,112
	505,275			328,382			171,740			304,902			—
	9,692			24,822			460			2,024			489
	936			927			349			700			47
	2,300,342			574,684			52,918			139,862			6,179
	146,328			1,500,429			2,251,962			—			—
	—			—			—			11,200			45
	—			—			346,638			601,170			30,379
	—			—			59,979			57,579			27,514
	—			—			41,719			—			22,197
	189,769			313,466			96,660			97,808			30,753
	3,152,342			2,742,710			3,022,425			1,215,245			210,715
$	603,039,625		$	597,347,915		$	225,512,862		$	455,490,208		$	34,114,333
$	669,880,022		$	588,328,214		$	231,396,510		$	485,287,206		$	34,356,189
	(1,096,911	)		(253,590	)		(258,018	)		761,011			(52,320	)
	(68,528,197	)		(12,681,330	)		(3,718,849	)		(9,391,907	)		(63,267	)
	2,706,532			21,953,293			(2,005,972	)		(20,807,647	)		(142,819	)
	78,179			1,328			122,609			(300,876	)		25,467
	—			—			9,268			—			4,778
	—			—			(32,686	)		(57,579	)		(13,695	)
$	603,039,625		$	597,347,915		$	225,512,862		$	455,490,208		$	34,114,333
$	558,716,238		$	478,753,610		$	223,328,356		$	446,179,843		$	31,449,512
	47,319,142			42,827,110			24,076,955			46,798,919			3,190,427
$	11.81		$	11.18		$	9.28		$	9.53		$	9.86
$	44,323,387		$	118,594,305		$	2,184,506		$	9,310,365		$	2,664,821
	3,753,626			10,619,862			235,128			971,317			269,801
$	11.81		$	11.17		$	9.29		$	9.59		$	9.88
$	587,598,231		$	576,142,315		$	225,916,438		$	466,966,375		$	32,782,227
$	6,326,976		$	21,565		$	1,126,342		$	2,276,689		$	—

Annual Report 61

   The Lazard Funds, Inc. Statements of Operations

For the Period Ended December 31, 2013	Lazard Emerging Markets Equity Portfolio				Lazard Emerging Markets Core Equity Portfolio (a)
Investment Income (Loss)
Income
Dividends		$	449,234,118		$	2,700
Interest			5,223			—
Total investment income*			449,239,341			2,700
Expenses
Management fees (Note 3)			154,754,945			4,480
Custodian fees			9,457,315			17,000
Distribution fees (Open Shares)			5,992,643			117
Administration fees			1,697,551			7,590
Shareholders’ reports			1,505,954			5,050
Shareholders’ services			1,414,427			7,173
Directors’ fees and expenses			470,286			14
Professional services			341,191			51,696
Registration fees			111,893			760
Amortization of offering costs (Note 2(h))			—			16,017
Other†			327,795			3,519
Total gross expenses			176,074,000			113,416
Management fees waived and expenses reimbursed			—			(100,278	)
Administration and shareholders’ services fees waived			—			(7,173	)
Total net expenses			176,074,000			5,965
Net investment income (loss)			273,165,341			(3,265	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Forward Currency Contracts, Options and Swap Agreements
Net realized gain (loss) on:
Investments**			535,037,362			(9,380	)
Foreign currency and forward currency contracts			(4,024,005	)		(415	)
Purchased options			—			—
Written options			—			—
Swap agreements			—			—
Net change in unrealized appreciation (depreciation) on:
Investments***			(956,826,459	)		(32,368	)
Foreign currency and forward currency contracts			(34,383	)		(208	)
Purchased options			—			—
Written options			—			—
Swap agreements			—			—
Net realized and unrealized gain (loss) on investments, foreign currency, forward currency contracts, options and swap agreements			(425,847,485	)		(42,371	)
Net increase (decrease) in net assets resulting from operations		$	(152,682,144	)	$	(45,636	)
* Net of foreign withholding taxes of		$	57,427,954		$	160
** Net of foreign capital gains taxes of		$	—		$	—
*** Includes net change in unrealized foreign capital gains taxes of		$	—		$	—
† Includes interest on line of credit of		$	3,302		$	—

(a)	From the Portfolio’s commencement of operations on October 31, 2013.
(b)	From the Portfolio’s commencement of operations on June 28, 2013.

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

62 Annual Report

Lazard Developing Markets Equity Portfolio			Lazard Emerging Markets Equity Blend Portfolio			Lazard Emerging Markets Multi-Strategy Portfolio			Lazard Emerging Markets Debt Portfolio			Lazard Explorer Total Return Portfolio (b)
$	12,854,139		$	9,694,068		$	3,113,185		$	5,536		$	—
	35			—			2,267,565			21,258,614			499,856
	12,854,174			9,694,068			5,380,750			21,264,150			499,856
	5,958,296			4,238,314			1,980,668			2,929,173			112,379
	461,527			401,483			372,730			317,010			49,335
	186,434			193,895			3,495			20,818			1,051
	169,167			134,768			89,615			123,230			27,287
	138,747			127,244			10,176			9,179			9,944
	93,138			617,495			28,743			29,957			15,600
	18,172			12,610			6,002			11,017			2,806
	57,693			53,894			52,238			56,860			78,938
	57,745			89,268			35,679			32,483			4,977
	—			—			—			—			31,930
	58,785			55,329			26,670			40,888			7,744
	7,199,704			5,924,300			2,606,016			3,570,615			341,991
	—			(183,606	)		(26,985	)		(7,262	)		(177,809	)
	—			—			—			—			(16,828	)
	7,199,704			5,740,694			2,579,031			3,563,353			147,354
	5,654,470			3,953,374			2,801,719			17,700,797			352,502
	(34,164,180	)		4,653,417			124,318			(6,110,564	)		(18,447	)
	(363,969	)		(429,513	)		761,266			3,766,522			649,352
	—			—			(318,602	)		(1,476,336	)		(63,287	)
	—			—			27,132			82,711			11,605
	—			—			(1,042,934	)		(3,779,015	)		(595,326	)
	(4,899,129	)		7,111,748			(7,426,022	)		(35,788,893	)		(131,303	)
	80,869			1,232			(126,263	)		(883,695	)		25,467
	—			—			(38,583	)		(133,634	)		(11,516	)
	—			—			30,433			232,812			4,778
	—			—			(45,933	)		(193,243	)		(13,695	)
	(39,346,409	)		11,336,884			(8,055,188	)		(44,283,335	)		(142,372	)
$	(33,691,939	)	$	15,290,258		$	(5,253,469	)	$	(26,582,538	)	$	210,130
$	1,053,819		$	1,022,306		$	326,818		$	147,510		$	1,145
$	12,801		$	—		$	747		$	8,232		$	—
$	(31,268	)	$	(36,777	)	$	(7,445	)	$	—		$	—
$	2,626		$	—		$	—		$	11,671		$	—

Annual Report 63

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

	Lazard Emerging Markets Equity Portfolio						Lazard Emerging Markets Core Equity Portfolio
	Year Ended December 31, 2013			Year Ended December 31, 2012			Period Ended December 31, 2013 (a)
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	273,165,341		$	273,430,339		$	(3,265	)
Net realized gain (loss) on investments, foreign currency, forward currency contracts, options and swap agreements		531,013,357			404,973,362			(9,795	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts, options and swap agreements		(956,860,842	)		2,319,793,047			(32,576	)
Net increase (decrease) in net assets resulting from operations		(152,682,144	)		2,998,196,748			(45,636	)
Distributions to shareholders
From net investment income
Institutional Shares		(236,363,963	)		(233,749,133	)		—
Open Shares		(34,411,449	)		(37,813,360	)		—
From net realized gains
Institutional Shares		(234,585,584	)		(419,249,109	)		—
Open Shares		(39,932,177	)		(80,701,164	)		—
Return of capital
Institutional Shares		—			—			—
Open Shares		—			—			—
Net decrease in net assets resulting from distributions		(545,293,173	)		(771,512,766	)		—
Capital stock transactions
Net proceeds from sales
Institutional Shares		2,706,382,404			2,561,523,905			3,306,150
Open Shares		483,346,726			404,264,337			631,900
Net proceeds from reinvestment of distributions
Institutional Shares		407,264,634			564,652,360			—
Open Shares		68,063,916			111,916,205			—
Cost of shares redeemed
Institutional Shares		(3,149,583,032	)		(2,525,025,523	)		—
Open Shares		(860,419,457	)		(1,037,348,544	)		—
Net increase (decrease) in net assets from capital stock transactions		(344,944,809	)		79,982,740			3,938,050
Redemption fees (Note 2(k))
Institutional Shares		120,271			106,944			—
Open Shares		43,929			38,994			—
Net increase in net assets from redemption fees		164,200			145,938			—
Total increase (decrease) in net assets		(1,042,755,926	)		2,306,812,660			3,892,414
Net assets at beginning of period		15,941,014,785			13,634,202,125			—
Net assets at end of period*	$	14,898,258,859		$	15,941,014,785		$	3,892,414
* Includes undistributed (distributions in excess of) net investment income of	$	(9,501,570	)	$	(11,418,208	)	$	6
(a) The Portfolio commenced operations on October 31, 2013.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		681,320,058			648,784,125			—
Shares sold		141,386,244			136,324,320			332,077
Shares issued to shareholders from reinvestment of distributions		21,872,427			29,516,846			—
Shares redeemed		(164,630,123	)		(133,305,233	)		—
Net increase (decrease)		(1,371,452	)		32,535,933			332,077
Shares outstanding at end of period		679,948,606			681,320,058			332,077
Open Shares
Shares outstanding at beginning of period		131,100,773			158,774,554			—
Shares sold		24,934,405			20,940,411			63,785
Shares issued to shareholders from reinvestment of distributions		3,563,556			5,707,099			—
Shares redeemed		(44,322,409	)		(54,321,291	)		—
Net increase (decrease)		(15,824,448	)		(27,673,781	)		63,785
Shares outstanding at end of period		115,276,325			131,100,773			63,785

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

64 Annual Report

Lazard Developing Markets Equity Portfolio						Lazard Emerging Markets Equity Blend Portfolio						Lazard Emerging Markets Multi-Strategy Portfolio
Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
$	5,654,470		$	2,293,054		$	3,953,374		$	1,554,071		$	2,801,719		$	809,863
	(34,528,149	)		(26,688,575	)		4,223,904			(9,415,007	)		(448,820	)		(606,707	)
	(4,818,260	)		66,218,856			7,112,980			33,414,173			(7,606,368	)		10,132,597
	(33,691,939	)		41,823,335			15,290,258			25,553,237			(5,253,469	)		10,335,753
	(4,798,138	)		(2,990,604	)		(3,158,179	)		(1,818,322	)		(2,402,373	)		(878,676	)
	(285,615	)		(543,087	)		(410,880	)		(234,422	)		(15,930	)		(3,690	)
	—			—			(2,203,505	)		—			(1,809,888	)		—
	—			—			(546,763	)		—			(18,185	)		—
	—			—			(422,052	)		—			—			—
	—			—			(93,652	)		—			—			—
	(5,083,753	)		(3,533,691	)		(6,835,031	)		(2,052,744	)		(4,246,376	)		(882,366	)
	515,114,543			232,206,374			324,373,920			126,047,840			177,382,688			75,678,101
	38,771,277			69,347,007			95,445,912			19,150,166			1,691,237			906,882
	3,537,756			2,295,074			5,614,997			1,648,749			4,175,631			699,458
	278,492			531,153			1,015,931			224,500			33,777			3,535
	(269,124,935	)		(83,942,317	)		(60,435,685	)		(30,534,803	)		(73,799,795	)		(17,301,390	)
	(79,894,455	)		(49,472,367	)		(16,286,690	)		(8,540,728	)		(350,332	)		(357,454	)
	208,682,678			170,964,924			349,728,385			107,995,724			109,133,206			59,629,132
	5,763			3,158			1,228			822			2,748			5,029
	3,932			8,787			3,042			955			45			—
	9,695			11,945			4,270			1,777			2,793			5,029
	169,916,681			209,266,513			358,187,882			131,497,994			99,636,154			69,087,548
	433,122,944			223,856,431			239,160,033			107,662,039			125,876,708			56,789,160
$	603,039,625		$	433,122,944		$	597,347,915		$	239,160,033		$	225,512,862		$	125,876,708
$	(1,096,911	)	$	(1,570,471	)	$	(253,590	)	$	(564,690	)	$	(258,018	)	$	(104,364	)
	27,400,813			15,019,710			17,598,261			8,706,504			12,889,497			6,594,816
	42,879,227			19,277,485			30,159,744			11,499,059			18,526,941			8,074,885
	309,847			188,429			508,158			146,735			453,554			73,088
	(23,270,745	)		(7,084,811	)		(5,439,053	)		(2,754,037	)		(7,793,037	)		(1,853,292	)
	19,918,329			12,381,103			25,228,849			8,891,757			11,187,458			6,294,681
	47,319,142			27,400,813			42,827,110			17,598,261			24,076,955			12,889,497
	7,527,776			5,935,969			3,291,977			2,312,343			88,344			30,517
	3,255,977			5,734,648			8,715,275			1,744,940			180,332			97,091
	24,696			43,573			92,147			20,008			3,661			369
	(7,054,823	)		(4,186,414	)		(1,479,537	)		(785,314	)		(37,209	)		(39,633	)
	(3,774,150	)		1,591,807			7,327,885			979,634			146,784			57,827
	3,753,626			7,527,776			10,619,862			3,291,977			235,128			88,344

Annual Report 65

	Lazard Emerging Markets Debt Portfolio						Lazard Explorer Total Return Portfolio
	Year Ended December 31, 2013			Year Ended December 31, 2012			Period Ended December 31, 2013 (a)
Increase (Decrease) in Net Assets
Operations
Net investment income	$	17,700,797		$	9,275,669		$	352,502
Net realized gain (loss) on investments, foreign currency, forward currency contracts, options and swap agreements		(7,516,682	)		8,400,606			(16,103	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts, options and swap agreements		(36,766,653	)		16,441,726			(126,269	)
Net increase (decrease) in net assets resulting from operations		(26,582,538	)		34,118,001			210,130
Distributions to shareholders
From net investment income
Institutional Shares		(18,161,914	)		(9,238,454	)		(437,344	)
Open Shares		(368,559	)		(32,787	)		(14,641	)
From net realized gains
Institutional Shares		(1,415,923	)		(6,223,334	)		—
Open Shares		(34,825	)		(24,139	)		—
Net decrease in net assets resulting from distributions		(19,981,221	)		(15,518,714	)		(451,985	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		248,473,336			181,821,383			31,641,433
Open Shares		16,272,148			1,280,269			2,671,855
Net proceeds from reinvestment of distributions
Institutional Shares		19,325,779			14,815,813			437,142
Open Shares		204,596			52,868			14,480
Cost of shares redeemed
Institutional Shares		(62,619,877	)		(35,834,871	)		(401,268	)
Open Shares		(6,906,202	)		(375,933	)		(7,454	)
Net increase in net assets from capital stock transactions		214,749,780			161,759,529			34,356,188
Redemption fees (Note 2(k))
Institutional Shares		1,881			531			—
Open Shares		1,433			217			—
Net increase in net assets from redemption fees		3,314			748			—
Total increase in net assets		168,189,335			180,359,564			34,114,333
Net assets at beginning of period		287,300,873			106,941,309			—
Net assets at end of period*	$	455,490,208		$	287,300,873		$	34,114,333
* Includes undistributed (distributions in excess of) net investment income of	$	761,011		$	23,729		$	(52,320	)
(a) The Portfolio commenced operations on June 28, 2013.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		26,369,893			10,949,189			—
Shares sold		24,786,865			17,476,495			3,186,789
Shares issued to shareholders from reinvestment of distributions		1,940,134			1,392,026			44,125
Shares redeemed		(6,297,973	)		(3,447,817	)		(40,487	)
Net increase		20,429,026			15,420,704			3,190,427
Shares outstanding at end of period		46,798,919			26,369,893			3,190,427
Open Shares
Shares outstanding at beginning of period		104,581			13,123			—
Shares sold		1,540,715			122,285			269,085
Shares issued to shareholders from reinvestment of distributions		20,295			4,941			1,463
Shares redeemed		(694,274	)		(35,768	)		(747	)
Net increase		866,736			91,458			269,801
Shares outstanding at end of period		971,317			104,581			269,801

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

66 Annual Report

   The Lazard Funds, Inc. Financial Highlights

LAZARD EMERGING MARKETS EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of year	$	19.54		$	16.80		$	21.78		$	18.01		$	10.88
Income (loss) from investment operations:
Net investment income (a)		0.35			0.35			0.49			0.38			0.35
Net realized and unrealized gain (loss)		(0.51	)		3.39			(4.36	)		3.71			7.24
Total from investment operations		(0.16	)		3.74			(3.87	)		4.09			7.59
Less distributions from:
Net investment income		(0.36	)		(0.36	)		(0.63	)		(0.32	)		(0.46	)
Net realized gains		(0.35	)		(0.64	)		(0.48	)		—			—
Total distributions		(0.71	)		(1.00	)		(1.11	)		(0.32	)		(0.46	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	18.67		$	19.54		$	16.80		$	21.78		$	18.01
Total Return (c)		–0.80	%		22.36	%		–17.75	%		22.81	%		69.82	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	12,691,329		$	13,315,172		$	10,902,557		$	14,561,085		$	8,497,341
Ratios to average net assets:
Net expenses		1.09	%		1.10	%		1.12	%		1.14	%		1.15	%
Gross expenses		1.09	%		1.10	%		1.12	%		1.14	%		1.15	%
Net investment income		1.80	%		1.85	%		2.44	%		1.96	%		2.40	%
Portfolio turnover rate		16	%		23	%		23	%		23	%		49	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of year	$	20.03		$	17.20		$	22.19		$	18.28		$	11.05
Income (loss) from investment operations:
Net investment income (a)		0.30			0.30			0.49			0.34			0.29
Net realized and unrealized gain (loss)		(0.53	)		3.47			(4.50	)		3.76			7.35
Total from investment operations		(0.23	)		3.77			(4.01	)		4.10			7.64
Less distributions from:
Net investment income		(0.31	)		(0.30	)		(0.50	)		(0.19	)		(0.41	)
Net realized gains		(0.35	)		(0.64	)		(0.48	)		—			—
Total distributions		(0.66	)		(0.94	)		(0.98	)		(0.19	)		(0.41	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	19.14		$	20.03		$	17.20		$	22.19		$	18.28
Total Return (c)		–1.14	%		22.03	%		–18.02	%		22.43	%		69.14	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	2,206,930		$	2,625,843		$	2,731,646		$	4,187,207		$	3,478,654
Ratios to average net assets:
Net expenses		1.37	%		1.40	%		1.42	%		1.49	%		1.55	%
Gross expenses		1.37	%		1.40	%		1.42	%		1.49	%		1.55	%
Net investment income		1.55	%		1.58	%		2.18	%		1.73	%		1.94	%
Portfolio turnover rate		16	%		23	%		23	%		23	%		49	%

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

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

Annual Report 67

LAZARD EMERGING MARKETS CORE EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	For the Period 10/31/13* to 12/31/13
Institutional Shares
Net asset value, beginning of period		$	10.00
Loss from investment operations:
Net investment loss (a)			(0.01	)
Net realized and unrealized loss			(0.16	)
Total from investment operations			(0.17	)
Net asset value, end of period		$	9.83
Total Return (b)			–1.70	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	3,265
Ratios to average net assets (c):
Net expenses			1.30	%
Gross expenses			24.66	%
Net investment loss			–0.71	%
Portfolio turnover rate			12	%

Selected data for a share of capital stock outstanding throughout the period	For the Period 10/31/13* to 12/31/13
Open Shares
Net asset value, beginning of period		$	10.00
Loss from investment operations:
Net investment loss (a)			(0.01	)
Net realized and unrealized loss			(0.16	)
Total from investment operations			(0.17	)
Net asset value, end of period		$	9.83
Total Return (b)			–1.70	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	627
Ratios to average net assets (c):
Net expenses			1.60	%
Gross expenses			30.92	%
Net investment loss			–0.90	%
Portfolio turnover rate			12	%

*	The Portfolio commenced operations on October 31, 2013.
(a)	Net investment loss has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
(c)	Annualized for a period of less than one year.

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

68 Annual Report

LAZARD DEVELOPING MARKETS EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of year	$	12.40		$	10.68		$	15.12		$	13.18		$	6.54
Income (loss) from investment operations:
Net investment income (a)		0.11			0.09			0.06			0.02			0.01
Net realized and unrealized gain (loss)		(0.60	)		1.74			(4.00	)		3.63			7.09
Total from investment operations		(0.49	)		1.83			(3.94	)		3.65			7.10
Less distributions from:
Net investment income		(0.10	)		(0.11	)		—			(0.09	)		(0.04	)
Net realized gains		—			—			(0.50	)		(1.62	)		(0.42	)
Total distributions		(0.10	)		(0.11	)		(0.50	)		(1.71	)		(0.46	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	11.81		$	12.40		$	10.68		$	15.12		$	13.18
Total Return (c)		–3.90	%		17.16	%		–26.15	%		28.62	%		108.53	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	558,716		$	339,771		$	160,441		$	72,798		$	20,002
Ratios to average net assets:
Net expenses		1.17	%		1.21	%		1.30	%		1.30	%		1.30	%
Gross expenses		1.17	%		1.21	%		1.30	%		1.67	%		2.81	%
Net investment income		0.96	%		0.74	%		0.45	%		0.15	%		0.07	%
Portfolio turnover rate		48	%		61	%		68	%		112	%		96	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of year	$	12.40		$	10.68		$	15.16		$	13.19		$	6.55
Income (loss) from investment operations:
Net investment income (loss) (a)		0.11			0.05			0.01			(0.05	)		(0.08	)
Net realized and unrealized gain (loss)		(0.63	)		1.74			(3.99	)		3.65			7.13
Total from investment operations		(0.52	)		1.79			(3.98	)		3.60			7.05
Less distributions from:
Net investment income		(0.07	)		(0.07	)		—			(0.01	)		—	(b)
Net realized gains		—			—			(0.50	)		(1.62	)		(0.42	)
Total distributions		(0.07	)		(0.07	)		(0.50	)		(1.63	)		(0.42	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		0.01
Net asset value, end of year	$	11.81		$	12.40		$	10.68		$	15.16		$	13.19
Total Return (c)		–4.18	%		16.79	%		–26.34	%		28.13	%		108.17	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	44,324		$	93,352		$	63,415		$	101,584		$	42,975
Ratios to average net assets:
Net expenses		1.45	%		1.53	%		1.60	%		1.60	%		1.60	%
Gross expenses		1.45	%		1.53	%		1.62	%		1.85	%		2.54	%
Net investment income (loss)		0.90	%		0.43	%		0.10	%		–0.33	%		–0.63	%
Portfolio turnover rate		48	%		61	%		68	%		112	%		96	%

(a)	Net investment income (loss) has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	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.

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

Annual Report 69

LAZARD EMERGING MARKETS EQUITY BLEND PORTFOLIO

										For the Period
Selected data for a share of capital	Year Ended									5/28/10* to
stock outstanding throughout each period	12/31/13			12/31/12			12/31/11			12/31/10
Institutional Shares
Net asset value, beginning of period	$	11.45		$	9.77		$	12.45		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.11			0.11			0.15			(0.01	)
Net realized and unrealized gain (loss)		(0.24	)		1.68			(2.70	)		2.48
Total from investment operations		(0.13	)		1.79			(2.55	)		2.47
Less distributions from:
Net investment income		(0.08	)		(0.11	)		(0.08	)		—
Net realized gains		(0.05	)		—			(0.05	)		(0.02	)
Return of capital		(0.01	)		—			—			—
Total distributions		(0.14	)		(0.11	)		(0.13	)		(0.02	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	11.18		$	11.45		$	9.77		$	12.45
Total Return (c)		–1.14	%		18.19	%		–20.43	%		24.66	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	478,754		$	201,512		$	85,091		$	54,826
Ratios to average net assets (d):
Net expenses		1.30	%		1.34	%		1.35	%		1.35	%
Gross expenses		1.33	%		1.34	%		1.54	%		6.24	%
Net investment income (loss)		1.00	%		1.01	%		1.34	%		–0.16	%
Portfolio turnover rate		48	%		57	%		62	%		62	%

										For the Period
Selected data for a share of capital	Year Ended									5/28/10* to
stock outstanding throughout each period	12/31/13			12/31/12			12/31/11			12/31/10
Open Shares
Net asset value, beginning of period	$	11.44		$	9.76		$	12.43		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.07			0.09			0.11			(0.05	)
Net realized and unrealized gain (loss)		(0.24	)		1.66			(2.68	)		2.50
Total from investment operations		(0.17	)		1.75			(2.57	)		2.45
Less distributions from:
Net investment income		(0.04	)		(0.07	)		(0.05	)		—
Net realized gains		(0.05	)		—			(0.05	)		(0.02	)
Return of capital		(0.01	)		—			—			—
Total distributions		(0.10	)		(0.07	)		(0.10	)		(0.02	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	11.17		$	11.44		$	9.76		$	12.43
Total Return (c)		–1.47	%		17.97	%		–20.74	%		24.46	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	118,594		$	37,648		$	22,571		$	9,121
Ratios to average net assets (d):
Net expenses		1.60	%		1.64	%		1.65	%		1.65	%
Gross expenses		1.69	%		1.77	%		1.92	%		6.06	%
Net investment income (loss)		0.61	%		0.78	%		0.94	%		–0.70	%
Portfolio turnover rate		48	%		57	%		62	%		62	%

*	The Portfolio commenced operations on May 28, 2010.
(a)	Net investment income (loss) has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	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.
(d)	Annualized for a period of less than one year.

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

70 Annual Report

LAZARD EMERGING MARKETS MULTI-STRATEGY PORTFOLIO

							For the Period
Selected data for a share of capital	Year Ended						3/31/11* to
stock outstanding throughout each period	12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	9.70		$	8.57		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.13			0.09			0.09
Net realized and unrealized gain (loss)		(0.37	)		1.11			(1.47	)
Total from investment operations		(0.24	)		1.20			(1.38	)
Less distributions from:
Net investment income		(0.10	)		(0.07	)		(0.05	)
Net realized gains		(0.08	)		—			—
Total distributions		(0.18	)		(0.07	)		(0.05	)
Redemption fees		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	9.28		$	9.70		$	8.57
Total Return (c)		–2.41	%		14.02	%		–13.79	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	223,328		$	125,019		$	56,527
Ratios to average net assets (d):
Net expenses		1.30	%		1.30	%		1.30	%
Gross expenses		1.31	%		1.57	%		2.23	%
Net investment income		1.42	%		1.01	%		1.34	%
Portfolio turnover rate		155	%		160	%		98	%

							For the Period
Selected data for a share of capital	Year Ended						3/31/11* to
stock outstanding throughout each period	12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of period	$	9.71		$	8.59		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.10			0.08			0.07
Net realized and unrealized gain (loss)		(0.37	)		1.08			(1.46	)
Total from investment operations		(0.27	)		1.16			(1.39	)
Less distributions from:
Net investment income		(0.07	)		(0.04	)		(0.02	)
Net realized gains		(0.08	)		—			—
Total distributions		(0.15	)		(0.04	)		(0.02	)
Redemption fees		—	(b)		—			—	(b)
Net asset value, end of period	$	9.29		$	9.71		$	8.59
Total Return (c)		–2.73	%		13.28	%		–13.67	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,185		$	858		$	262
Ratios to average net assets (d):
Net expenses		1.60	%		1.60	%		1.60	%
Gross expenses		2.52	%		3.82	%		16.96	%
Net investment income		1.03	%		0.82	%		1.00	%
Portfolio turnover rate		155	%		160	%		98	%

*	The Portfolio commenced operations on March 31, 2011.
(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	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.
(d)	Annualized for a period of less than one year.

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

Annual Report 71

LAZARD EMERGING MARKETS DEBT PORTFOLIO

							For the Period
Selected data for a share of capital	Year Ended						2/28/11* to
stock outstanding throughout each period	12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	10.85		$	9.76		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.49			0.48			0.34
Net realized and unrealized gain (loss)		(1.25	)		1.33			(0.17	)
Total from investment operations		(0.76	)		1.81			0.17
Less distributions from:
Net investment income		(0.52	)		(0.48	)		(0.40	)
Net realized gains		(0.04	)		(0.24	)		(0.01	)
Total distributions		(0.56	)		(0.72	)		(0.41	)
Redemption fees		—	(b)		—	(b)		—
Net asset value, end of period	$	9.53		$	10.85		$	9.76
Total Return (c)		–7.13	%		18.95	%		1.64	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	446,180		$	286,163		$	106,813
Ratios to average net assets (d):
Net expenses		0.97	%		1.00	%		1.04	%
Gross expenses		0.97	%		1.03	%		1.67	%
Net investment income		4.84	%		4.60	%		4.14	%
Portfolio turnover rate		108	%		220	%		108	%

							For the Period
Selected data for a share of capital	Year Ended						2/28/11* to
stock outstanding throughout each period	12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of period	$	10.88		$	9.77		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.45			0.45			0.33
Net realized and unrealized gain (loss)		(1.24	)		1.35			(0.20	)
Total from investment operations		(0.79	)		1.80			0.13
Less distributions from:
Net investment income		(0.46	)		(0.45	)		(0.35	)
Net realized gains		(0.04	)		(0.24	)		(0.01	)
Total distributions		(0.50	)		(0.69	)		(0.36	)
Redemption fees		—	(b)		—	(b)		—
Net asset value, end of period	$	9.59		$	10.88		$	9.77
Total Return (c)		–7.35	%		18.68	%		1.34	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	9,310		$	1,138		$	128
Ratios to average net assets (d):
Net expenses		1.30	%		1.30	%		1.39	%
Gross expenses		1.39	%		2.97	%		16.28	%
Net investment income		4.45	%		4.26	%		3.84	%
Portfolio turnover rate		108	%		220	%		108	%

*	The Portfolio commenced operations on February 28, 2011.
(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	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.
(d)	Annualized for a period of less than one year.

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

72 Annual Report

LAZARD EXPLORER TOTAL RETURN PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	For the Period 6/28/13* to 12/31/13
Institutional Shares
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.16
Net realized and unrealized loss			(0.12	)
Total from investment operations			0.04
Less distributions from:
Net investment income			(0.18	)
Total distributions			(0.18	)
Net asset value, end of period		$	9.86
Total Return (b)			0.38	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	31,450
Ratios to average net assets (c):
Net expenses			1.30	%
Gross expenses			2.97	%
Net investment income			3.15	%
Portfolio turnover rate			69	%

Selected data for a share of capital stock outstanding throughout the period	For the Period 6/28/13* to 12/31/13
Open Shares
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.14
Net realized and unrealized loss			(0.11	)
Total from investment operations			0.03
Less distributions from:
Net investment income			(0.15	)
Total distributions			(0.15	)
Net asset value, end of period		$	9.88
Total Return (b)			0.27	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	2,665
Ratios to average net assets (c):
Net expenses			1.60	%
Gross expenses			5.01	%
Net investment income			2.78	%
Portfolio turnover rate			69	%

*	The Portfolio commenced operations on June 28, 2013.
(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
(c)	Annualized for a period of less than one year.

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

Annual Report 73

   The Lazard Funds, Inc. Notes to Financial Statements December 31, 2013

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 twenty-five no-load portfolios (each referred to as a “Portfolio”), as follows: Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard Global Equity Select Portfolio (commenced investment operations on December 31, 2013), 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 Emerging Markets Core Equity Portfolio (commenced investment operations on October 31, 2013), Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi-Strategy Portfolio, Lazard Emerging Markets Debt Portfolio, Lazard Explorer Total Return Portfolio (commenced investment operations on June 28, 2013), Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio (formerly, Lazard International Realty Equity Portfolio), Lazard US Short Duration Fixed Income Portfolio (formerly, Lazard U.S. Municipal Portfolio), Lazard US Corporate Income Portfolio (formerly, Lazard U.S. High Yield Portfolio), Lazard Global Fixed Income Portfolio, Lazard Multi-Asset Targeted Volatility Portfolio, and Lazard Capital Allocator Opportunistic Strategies Portfolio. All Portfolios, other than the US Equity Concentrated Portfolio, the Emerging Markets Debt Portfolio, the Explorer Total Return Portfolio, the US Realty Equity Portfolio and the Global 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, 2013. This report includes only the financial statements of Emerging Markets Equity Portfolio, Emerging Markets Core Equity Portfolio, Developing Markets Equity Portfolio, Emerging Markets Equity Blend Portfolio, Emerging Markets Multi-Strategy Portfolio, Emerging Markets Debt Portfolio and Explorer Total Return Portfolio (the “Portfolios”). The financial statements of other portfolios are presented separately.

Effective November 29, 2013, the Fund commenced offering R6 Shares. Each Portfolio currently offers Institutional

Shares and Open Shares, and certain Portfolios offer R6 Shares. Each share class is identical except as to minimum investment requirements; eligibility requirements for R6 Shares; the services offered to, and expenses borne by, each class; and the availability of Service Payments (as defined in the Prospectus). As of December 31, 2013, no R6 Shares have been issued.

2. Significant Accounting Policies

The accompanying financial statements are presented in conformity with GAAP. The Fund in an investment company and therefore applies specialized accounting guidance in Accounting Standards Codification Topic 946. 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 US 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. 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 (“NAV”).

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”).

74 Annual Report

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 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 portfolio managers/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 NAV 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 non-US 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 US securities and other appropriate indicators, such as closing market prices of relevant ADRs or futures contracts. Non-US 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 NAV 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’ NAVs.

(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. During the year or period ended December

31, 2013, Emerging Markets Multi-Strategy, Emerging Markets Debt and Explorer Total Return Portfolios 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) Foreign Currency Translation and Forward Currency Contracts—The accounting records of the Portfolios are maintained in US dollars. Portfolio securities and other assets and liabilities denominated in a foreign currency are translated daily into US dollars at the prevailing rates of exchange. Purchases and sales of securities, income receipts and expense payments are translated into US 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 US 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 US dollar.

Annual Report 75

The US 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.

During the year or period ended December 31, 2013, Emerging Markets Multi-Strategy, Emerging Markets Debt and Explorer Total Return Portfolios traded in forward currency contracts.

(d) Options Transactions—For hedging and investment purposes, certain Portfolios may purchase and write (sell) put and call options that are traded on US and non-US 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 will not benefit from exercise of an option should the counterparty not perform under the contract. The risk involved in writing an option is that, if the option is exercised, the underlying security or other assets could then be purchased or sold by the Portfolios at a disadvantageous price. Put and call options purchased are accounted for in the same manner as portfolio securities and other assets. When the Portfolios write an option, the premium received by the Portfolios is recorded as a liability and is subsequently adjusted to the current market value of the option written.

During the year or period ended December 31, 2013, transactions in options purchased and written were as follows:

Emerging Markets Multi-Strategy Portfolio

Purchased Options	Number of Contracts			Cost
Options outstanding at beginning of year		249,500		$	134,904
Options purchased		481,440			402,999
Options sold		(2,600	)		(1,432	)
Options exercised		(180,400	)		(93,025	)
Options expired		(480,500	)		(322,223	)
Options outstanding at end of year		67,440		$	121,223

Written Options	Number of Contracts			Premiums
Options outstanding at beginning of year	100,000			$	5,293
Options written		118,440			79,015
Options exercised		(100,000	)		(5,293	)
Options expired		(51,000	)		(28,028	)
Options outstanding at end of year		67,440		$	50,987

Emerging Markets Debt Portfolio  

Purchased Options	Number of Contracts			Cost
Options outstanding at beginning of year		2,683,500		$	1,257,174
Options purchased		1,326,500			1,025,103
Options sold		(31,600	)		(17,412	)
Options exercised		(1,735,900	)		(744,518	)
Options expired		(2,242,500	)		(1,520,347	)
Options outstanding at end of year		—		$	—

Written Options	Number of Contracts			Premiums
Options outstanding at beginning of year	1,100,000			$	58,223
Options written		176,000			82,711
Options exercised		(1,100,000	)		(58,223	)
Options expired		(176,000	)		(82,711	)
Options outstanding at end of year		—		$	—

Explorer Total Return Portfolio

Purchased Options	Number of Contracts			Cost
Options outstanding at beginning of period	—			$	—
Options purchased		139,480			127,164
Options sold		—			—
Options exercised		—			—
Options expired		(104,000	)		(63,287	)
Options outstanding at end of period		35,480		$	63,877

76 Annual Report

Written Options	Number of Contracts			Premiums
Options outstanding at beginning of period		—		$	—
Options written		58,180			38,964
Options exercised		—			—
Options expired		(22,700	)		(11,989	)
Options outstanding at end of period		35,480		$	26,975

None of the other Portfolios presented traded in options during the year or period ended December 31, 2013.

(e) Swap Agreements—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 pre-determined 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.

During the year or period ended December 31, 2013, Emerging Markets Multi-Strategy, Emerging Markets Debt and Explorer Total Return Portfolios traded in swap agreements with average notional amounts, which are indicative of the volume for the year or period, of $8,512,730, $9,035,373 and $5,345,617, respectively.

(f) 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.

As of December 31, 2013, the following Portfolios had unused realized capital losses which, for federal income tax purposes, could be used to offset future realized capital gains with no expiration date as follows:

Portfolio	Short-Term		Long-Term
Emerging Markets Core Equity	$	5,072	$	—
Developing Markets Equity		22,802,017		33,122,990
Emerging Markets Debt		8,244,856		—
Explorer Total Return		59,637		—

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, 2013, the following Portfolios elected to defer net capital and foreign currency losses arising between November 1, 2013 and December 31, 2013 as follows:

Portfolio	Amount
Emerging Markets Equity	$	1,960,362
Developing Markets Equity		590
Emerging Markets Equity Blend		3,788,291
Emerging Markets Multi-Strategy		1,230,816
Explorer Total Return		13,232

Annual Report 77

The Regulated Investment Company Modernization Act of 2010 (the “RIC Modernization Act”) includes numerous provisions that generally became effective for taxable years beginning after December 22, 2010. Among the 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 (2010-2012), or expected to be taken in the Portfolios’ 2013 tax returns.

(g) Dividends and Distributions—The Fund intends to declare dividends from net investment income daily on shares of Emerging Markets Debt Portfolio and Explorer Total Return Portfolio and to pay such dividends monthly. Dividends from net investment income, if any, on shares of the other Portfolios will be declared and paid annually. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Portfolios, if not distributed. The Portfolios intend to declare and distribute these amounts, at least annually, to shareholders; however, to avoid taxation, a second distribution may be required.

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	2013		2012		2013		2012
Emerging Markets Equity
Institutional	$	228,386,796	$	233,749,133	$	231,786,112	$	419,249,109
Open		42,245,739		37,813,360		42,874,526		80,701,164
Emerging Markets Core Equity
Institutional		—		—		—		—
Open		—		—		—		—
Developing Markets Equity
Institutional		4,445,742		2,990,604		—		—
Open		638,011		543,087		—		—
Emerging Markets Equity Blend*
Institutional		5,171,737		1,818,322		—		—
Open		1,147,590		234,422		—		—
Emerging Markets Multi-Strategy
Institutional		3,269,156		878,676		947,496		—
Open		23,045		3,690		6,679		—
Emerging Markets Debt
Institutional		19,168,898		15,436,087		360,748		23,439
Open		443,234		59,098		8,341		90
Explorer Total Return
Institutional		435,081		—		—		—
Open		16,904		—		—		—

* In 2013, Emerging Markets Equity Blend Portfolio had return of capital distributions of $515,704.

As of December 31, 2013, the components of distributable earnings, on a tax basis, were as follows:

					Net Unrealized
					Appreciation
					(Depreciation)
	Undistributed		Undistributed		Including			Other
	Ordinary		Long-Term		Foreign			Temporary
Portfolio	Income		Capital Gain		Currency			Differences
Emerging Markets Equity	$	—	$	121,517,763	$	827,318,312		$	(2	)
Emerging Markets Core Equity		—		—		(37,045	)		(166	)
Developing Markets Equity		—		—		(10,886,491	)		28,309
Emerging Markets Equity Blend		—		—		12,835,724			27,732
Emerging Markets Multi-Strategy		—		—		(4,615,187	)		37,645
Emerging Markets Debt		778,630		—		(22,287,737	)		43,035
Explorer Total Return		—		—		(139,123	)		29,863

78 Annual Report

(h) Offering Costs—Costs 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.

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

(j) Expense Reductions—The Portfolios’ excess cash in demand deposit accounts, 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.

(k) Redemption Fee—Each Portfolio may impose a 1.00% redemption fee (short-term trading fee) on Portfolio shares redeemed less than 30 days after such shares were acquired. The fees are retained by each Portfolio and are included as paid in capital on its Statement of Assets and Liabilities. The fees are also shown on its Statements of Changes in Net Assets.

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

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

The Fund, on behalf of the Portfolios, has entered into an investment management agreement (the “Management Agreement”) with the Investment Manager. Pursuant to the Management Agreement, the Investment Manager regularly provides each Portfolio with investment research, advice and

supervision and furnishes continuously an investment program for each Portfolio consistent with its investment objective and policies, including the purchase, retention and disposition of securities. For its services provided to the Portfolios, 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
Emerging Markets Equity		1.00	%
Emerging Markets Core 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
Explorer Total Return		1.00

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

Portfolio	Institutional Shares			Open Shares
Emerging Markets Equity		1.30	%		1.60	%
Emerging Markets Core 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
Explorer Total Return		1.30			1.60

During the year or period ended December 31, 2013, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:

	Institutional Shares				Open Shares
	Management		Expenses		Management		Expenses
Portfolio	Fees Waived		Reimbursed		Fees Waived		Reimbursed
Emerging Markets Core Equity	$	4,010	$	84,829	$	470	$	10,969
Emerging Markets Equity Blend		116,024		—		67,582		—
Emerging Markets Multi-Strategy		14,222		—		12,763		—
Emerging Markets Debt		—		—		7,262		—
Explorer Total Return		108,174		61,594		4,205		3,836

Annual Report 79

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 Emerging Markets Core Equity and Explorer Total Return Portfolios until each respective Portfolio’s net assets reach $25 million. During the period ended December 31, 2013, State Street waived its fees as follows:

Portfolio	Amount
Emerging Markets Core Equity	$	3,125
Explorer Total Return		4,688

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

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

BFDS is the Fund’s transfer and dividend disbursing agent. For its services, BFDS receives a monthly fee computed on the basis of the number of shareholder accounts it maintains for the Fund during the month, subject to a minimum fee amount per share class in each Portfolio, and is reimbursed for certain out-of-pocket expenses. BFDS has agreed to waive the monthly minimum fee for the first six months after a new Portfolio has commenced operations. During the period ended December 31, 2013, BFDS waived its fees as follows:

Portfolio	Amount
Emerging Markets Core Equity	$	4,048
Explorer Total Return		12,140

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, generally, 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, 2013 were as follows:

Portfolio	Purchases		Sales
Emerging Markets Equity	$	2,469,868,221	$	3,178,830,696
Emerging Markets Core Equity		4,173,732		295,521
Developing Markets Equity		480,329,978		274,230,009
Emerging Markets Equity Blend		530,784,557		196,783,886
Emerging Markets Multi-Strategy		225,945,154		152,109,231
Emerging Markets Debt		538,545,465		360,642,196
Explorer Total Return		33,738,350		10,332,339

	US Government Securities
Portfolio	Purchases		Sales
Emerging Markets Multi-Strategy	$	118,606,429	$	115,323,878

For the year or period ended December 31, 2013, 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.

80 Annual Report

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 arrears. During the year ended December 31, 2013, the Portfolios had borrowings under the Agreement as follows:

					Weighted			Number of
	Average		Maximum		Average			Days
	Daily Loan		Daily Loan		Interest			Borrowings
Portfolio	Balance*		Outstanding		Rate			Were Outstanding
Emerging Markets Equity	$	18,000,000	$	44,000,000		1.10	%		6
Developing Markets Equity		6,868,167		17,500,000		1.15			12
Emerging Markets Debt		7,315,686		31,500,000		1.13			51

* For days borrowings were outstanding.

7. Non-US Securities Investment Risks

The Portfolios invest in securities of foreign entities and in instruments denominated in foreign currencies which involve risks not typically associated with investments in US securities. A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as exposure to less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity. In addition, investments denominated in currencies other than US dollars carry the risk that such currencies will decline in value relative to the US dollar and affect the value of these investments held in the Portfolios. Emerging market countries can generally have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries. The securities markets of emerging market countries have historically been extremely volatile. However, the capital markets in the US and internationally have experienced unprecedented volatility in recent years, causing significant declines in the value and liquidity of many securities. These market conditions may continue to worsen. Significant devaluation of emerging

market currencies against the US dollar may occur subsequent to investments denominated in emerging markets currencies.

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 81

The following tables summarize the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2013:

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, 2013
Emerging Markets Equity Portfolio
Common Stocks
Russia	$	815,469,488	$	924,746,401	$	—	$	1,740,215,889
Thailand		117,581,850		229,758,728		—		347,340,578
Other		12,573,227,204		—		—		12,573,227,204
Short-Term Investment		65,835,646		—		—		65,835,646
Total	$	13,572,114,188	$	1,154,505,129	$	—	$	14,726,619,317
Emerging Markets Core Equity
Common Stocks
Russia	$	260,465	$	115,043	$	—	$	375,508
Thailand		67,060		38,296		—		105,356
Other		3,138,601		—		—		3,138,601
Preferred Stocks		217,078		—		—		217,078
Total	$	3,683,204	$	153,339	$	—	$	3,836,543
Developing Markets Equity Portfolio
Common Stocks
Russia	$	82,580,985	$	11,543,525	$	—	$	94,124,510
Other		476,079,263		—		—		476,079,263
Preferred Stocks		17,931,297		—		—		17,931,297
Short-Term Investment		2,200,961		—		—		2,200,961
Total	$	578,792,506	$	11,543,525	$	—	$	590,336,031
Emerging Markets Equity Blend Portfolio
Common Stocks
Russia	$	73,482,852	$	13,170,825	$	—	$	86,653,677
Thailand		—		7,970,664		—		7,970,664
Other		464,164,565		—		—		464,164,565
Preferred Stocks		16,512,937		—		—		16,512,937
Short-Term Investment		22,830,542		—		—		22,830,542
Total	$	576,990,896	$	21,141,489	$	—	$	598,132,385
Emerging Markets Multi-Strategy Portfolio
Assets:
Common Stocks
Russia	$	15,301,849	$	2,761,410	$	—	$	18,063,259
Thailand		—		1,640,314		—		1,640,314
Other		96,118,170		—		—		96,118,170
Preferred Stocks		3,433,628		—		—		3,433,628
Corporate Bonds		—		10,266,209		—		10,266,209
Foreign Government Obligations		—		34,238,929		—		34,238,929
Quasi Government Bonds		—		2,586,434		—		2,586,434
US Treasury Securities		—		15,165,747		—		15,165,747
Short-Term Investment		42,306,372		—		—		42,306,372
Other Financial Instruments*
Credit Default Swap Agreements		—		27,293		—		27,293
Forward Currency Contracts		—		468,899		—		468,899
Purchased Options		—		98,849		—		98,849
Total	$	157,160,019	$	67,254,084	$	—	$	224,414,103

82 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, 2013
Emerging Markets Multi-Strategy Portfolio (concluded)
Liabilities:
Other Financial Instruments*
Credit Default Swap Agreements	$	—	$	(36,340	)	$	—	$	(36,340	)
Forward Currency Contracts		—		(346,638	)		—		(346,638	)
Interest Rate Swap Agreements		—		(23,639	)		—		(23,639	)
Written Options		—		(41,719	)		—		(41,719	)
Total	$	—	$	(448,336	)	$	—	$	(448,336	)
Emerging Markets Debt Portfolio
Assets:
Corporate Bonds	$	—	$	44,481,031		$	—	$	44,481,031
Foreign Government Obligations		—		348,212,551			—		348,212,551
Quasi Government Bonds		—		16,090,952			—		16,090,952
Short-Term Investment		37,374,194		—			—		37,374,194
Other Financial Instruments*
Forward Currency Contracts		—		368,750			—		368,750
Total	$	37,374,194	$	409,153,284		$	—	$	446,527,478
Liabilities:
Other Financial Instruments*
Forward Currency Contracts	$	—	$	(601,170	)	$	—	$	(601,170	)
Interest Rate Swap Agreement		—		(57,579	)		—		(57,579	)
Total	$	—	$	(658,749	)	$	—	$	(658,749	)
Explorer Total Return Portfolio
Assets:
Corporate Bonds	$	—	$	5,967,459		$	—	$	5,967,459
Foreign Government Obligations		—		15,953,592			—		15,953,592
Quasi Government Bonds		—		1,239,730			—		1,239,730
Short-Term Investment		9,426,266		—			—		9,426,266
Other Financial Instruments*
Credit Default Swap Agreements		—		13,819			—		13,819
Forward Currency Contracts		—		58,195			—		58,195
Purchased Options		—		52,361			—		52,361
Total	$	9,426,266	$	23,285,156		$	—	$	32,711,422
Liabilities:
Other Financial Instruments*
Credit Default Swap Agreements	$	—	$	(13,220	)	$	—	$	(13,220	)
Forward Currency Contracts		—		(30,379	)		—		(30,379	)
Interest Rate Swap Agreements		—		(14,294	)		—		(14,294	)
Written Options		—		(22,197	)		—		(22,197	)
Total	$	—	$	(80,090	)	$	—	$	(80,090	)

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

Annual Report 83

Certain common stocks (see footnote (b) 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 swap agreements included in Level 2 were valued by an independent pricing service.

In connection with the periodic implementation of fair value pricing procedures with respect to non-US securities (see Note 2(a)), certain equity securities (other than those securities described in footnote (b) in the Notes to Portfolios of Investments) in the Emerging Markets, Emerging Markets Core Equity, Developing Markets Equity, Emerging Markets Equity Blend and Emerging Markets Multi-Strategy Portfolios can transfer 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.

As of December 31, 2013, securities valued at the following amounts were transferred from Level 2 to Level 1:

Portfolio	Amount
Emerging Markets Equity	$	10,736,549,958
Developing Markets Equity		227,612,872
Emerging Markets Equity Blend		118,258,542
Emerging Markets Multi-Strategy		47,673,027
Emerging Markets Debt		945,153

The short-term investments were transferred from Level 2 to Level 1 based on increased reliance on the NAV of an open-end mutual fund as being representative of an active market price. There were no other transfers into or out of Levels 1, 2 or 3 during the year or period ended December 31, 2013. Transfers between levels are recognized at the beginning of the reporting period.

For further information regarding security characteristics see Portfolios of Investments.

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.

Emerging Markets Multi-Strategy Portfolio

During the year ended December 31, 2013, the notional amounts of purchases and sales of forward currency contracts were $467,199,812 and $460,487,747, respectively

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2013:

	Fair Value
Asset Derivatives
Credit Risk:
Gross unrealized appreciation on credit default swap agreements	$	27,293
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	468,899
Gross unrealized appreciation on written options	$	9,268
Liability Derivatives
Credit Risk:
Gross unrealized depreciation on credit default swap agreements	$	36,340
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	346,638
Gross unrealized depreciation on purchased options	$	22,374
Interest Rate Risk:
Gross unrealized depreciation on interest rate swap agreements	$	23,639

84 Annual Report

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2013 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Credit Risk:
Net realized loss on credit default swap agreements	$	(112,539	)
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	53,693
Net realized loss on purchased options	$	(318,602	)
Net realized gain on written options	$	27,132
Interest Rate Risk:
Net realized loss on interest rate swap agreements	$	(930,395	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Credit Risk:
Net change in unrealized appreciation on credit default swap agreements	$	1,500
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(120,970	)
Net change in unrealized depreciation on purchased options	$	(38,583	)
Net change in unrealized appreciation on written options	$	30,433
Interest Rate Risk:
Net change in unrealized depreciation on interest rate swap agreements	$	(47,433	)

Emerging Markets Debt Portfolio

During the year ended December 31, 2013, the notional amounts of purchases and sales of forward currency contracts were $923,710,579 and $957,321,464, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2013:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	368,750
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	601,170

	Fair Value
Interest Rate Risk:
Gross unrealized depreciation on interest rate swap agreements	$	57,579

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2013 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	754,413
Net realized loss on purchased options	$	(1,476,336	)
Net realized gain on written options	$	82,711
Interest Rate Risk:
Net realized loss on interest rate swap agreements	$	(3,779,015	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(818,643	)
Net change in unrealized depreciation on purchased options	$	(133,634	)
Net change in unrealized appreciation on written options	$	232,812
Interest Rate Risk:
Net change in unrealized depreciation on interest rate swap agreements	$	(193,243	)

Explorer Total Return Portfolio

During the period ended December 31, 2013, the notional amounts of purchases and sales of forward currency contracts were $33,342,845 and $36,555,218, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2013:

	Fair Value
Asset Derivatives
Credit Risk:
Gross unrealized appreciation on credit default swap agreements	$	13,819
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	58,195
Gross unrealized appreciation on written options	$	4,778

Annual Report 85

	Fair Value
Liability Derivatives
Credit Risk:
Gross unrealized depreciation on credit default swap agreements	$	13,220
Equity Risk:
Gross unrealized depreciation on purchased options	$	11,516
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	30,379
Interest Rate Risk:
Gross unrealized depreciation on interest rate swap agreements	$	14,294

The effect of derivative instruments on its Statement of Operations for the period ended December 31, 2013 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Credit Risk:
Net realized loss on credit default swap agreements	$	(20,917	)
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	69,035
Net realized loss on purchased options	$	(63,287	)
Net realized gain on written options	$	11,605
Interest Rate Risk:
Net realized loss on interest rate swap agreements	$	(29,428	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Credit Risk:
Net change in unrealized appreciation on credit default swap agreements	$	599
Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts	$	27,816
Net change in unrealized depreciation on purchased options	$	(11,516	)
Net change in unrealized appreciation on written options	$	4,778
Interest Rate Risk:
Net change in unrealized depreciation on interest rate swap agreements	$	(14,294	)

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

None of the other Portfolios presented traded in derivative instruments during the year or period ended December 31, 2013.

On January 31, 2013, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2013–01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (“ASU 2013–01”). ASU 2013–01 limits the scope of balance sheet offsetting disclosures, which was originally described in FASB ASU 2011–11, to derivatives, repurchase or reverse repurchase agreements, and securities borrowing or securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement.

As of December 31, 2013, Emerging Markets Multi-Strategy, Emerging Markets Debt and Explorer Total Return Portfolios hold derivative instruments that are eligible for offset in the Statements of Assets and Liabilities and are subject to master netting arrangements. A master netting arrangement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as any cash collateral, through single payment in the event of default on or termination of any one contract.

86 Annual Report

The required information for the affected Portfolios is presented in the below table, as of December 31, 2013:

Emerging Markets Multi-Strategy Portfolio

Description				Gross Amounts of Recognized Assets				Gross Amounts Offset in the Statement of Assets and Liabilities			Net Amounts of Assets Presented in the Statement of Assets and Liabilities
Credit Default Swap Agreements					$	27,293			$	—		$	27,293
Forward Currency Contracts						468,899				—			468,899
Purchased Options						98,849				—			98,849
Total					$	595,041			$	—		$	595,041
				Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Assets Presented in Statement of Assets and Liabilities			Financial Instruments				Collateral Pledged			Net Amount
BNP Paribas SA		$	27,301		$	(7,331	)		$	—		$	19,970
Barclays Bank PLC			198,968			(113,239	)			—			85,729
Citibank NA			54,116			(54,116	)			—			—
HSBC Bank USA			67,803			(14,927	)			—			52,876
JPMorgan Chase Bank			132,694			(132,694	)			—			—
Standard Chartered Bank			99,450			(40,124	)			—			59,326
State Street Bank and Trust Co.			329			(329	)			—			—
UBS AG			14,380			(14,108	)			—			272
Total		$	595,041		$	(376,868	)		$	—		$	218,173
Description				Gross Amounts of Recognized Liabilities				Gross Amounts Offset in the Statement of Assets and Liabilities			Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities
Credit Default Swap Agreements					$	36,340			$	—		$	36,340
Forward Currency Contracts						346,638				—			346,638
Interest Rate Swap Agreements						23,639				—			23,639
Written Options						41,719				—			41,719
Total					$	448,336			$	—		$	448,336
				Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Liabilities Presented in Statement of Assets and Liabilities			Financial Instruments				Collateral Pledged			Net Amount
BNP Paribas SA		$	7,331		$	(7,331	)		$	—		$	—
Barclays Bank PLC			113,239			(113,239	)			—			—
Citibank NA			113,476			(54,116	)			—			59,360
HSBC Bank USA			14,927			(14,927	)			—			—
JPMorgan Chase Bank			143,125			(132,694	)			—			10,431
Standard Chartered Bank			40,124			(40,124	)			—			—
State Street Bank and Trust Co.			2,006			(329	)			—			1,677
UBS AG			14,108			(14,108	)			—			—
Total		$	448,336		$	(376,868	)		$	—		$	71,468

Annual Report 87

Emerging Markets Debt Portfolio

Description				Gross Amounts of Recognized Assets				Gross Amounts Offset in the Statement of Assets and Liabilities			Net Amounts of Assets Presented in the Statement of Assets and Liabilities
Forward Currency Contracts					$	368,750			$	—		$	368,750
				Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Assets Presented in Statement of Assets and Liabilities			Financial Instruments				Collateral Pledged			Net Amount
Barclays Bank PLC		$	98,729		$	(98,729	)		$	—		$	—
Citibank NA			71,066			(71,066	)			—			—
HSBC Bank USA			24,802			(4,739	)			—			20,063
JPMorgan Chase Bank			67,573			(67,573	)			—			—
Standard Chartered Bank			106,580			(106,580	)			—			—
Total		$	368,750		$	(348,687	)		$	—		$	20,063
Description				Gross Amounts of Recognized Liabilities				Gross Amounts Offset in the Statement of Assets and Liabilities			Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities
Forward Currency Contracts					$	601,170			$	—		$	601,170
Interest Rate Swap Agreements						57,579							57,579
Total					$	658,749			$	—		$	658,749
				Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Liabilities Presented in Statement of Assets and Liabilities			Financial Instruments				Collateral Pledged			Net Amount
Barclays Bank PLC		$	118,400		$	(98,729	)		$	—		$	19,671
Citibank NA			87,599			(71,066	)			—			16,533
HSBC Bank USA			4,739			(4,739	)			—			—
JPMorgan Chase Bank			116,427			(67,573	)			—			48,854
Standard Chartered Bank			331,584			(106,580	)			—			225,004
Total		$	658,749		$	(348,687	)		$	—		$	310,062

88 Annual Report

Explorer Total Return Portfolio

Description				Gross Amounts of Recognized Assets				Gross Amounts Offset in the Statement of Assets and Liabilities			Net Amounts of Assets Presented in the Statement of Assets and Liabilities
Credit Default Swap Agreements					$	13,819			$	—		$	13,819
Forward Currency Contracts						58,195				—			58,195
Purchased Options						52,361				—			52,361
Total					$	124,375			$	—		$	124,375
				Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Assets Presented in Statement of Assets and Liabilities			Financial Instruments				Collateral Pledged			Net Amount
Barclays Bank PLC		$	74,539		$	(53,230	)		$	—		$	21,309
Citibank NA			4,758			(3,661	)			—			1,097
HSBC Bank USA			563			(563	)			—			—
JPMorgan Chase Bank			21,665			(14,637	)			—			7,028
Standard Chartered Bank			22,850			(6,934	)			—			15,916
Total		$	124,375		$	(79,025	)		$	—		$	45,350
Description				Gross Amounts of Recognized Liabilities				Gross Amounts Offset in the Statement of Assets and Liabilities			Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities
Credit Default Swap Agreements					$	13,220			$	—		$	13,220
Forward Currency Contracts						30,379				—			30,379
Interest Rate Swap Agreements						14,294				—			14,294
Written Options						22,197				—			22,197
Total					$	80,090			$	—		$	80,090
				Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Liabilities Presented in Statement of Assets and Liabilities			Financial Instruments				Collateral Pledged			Net Amount
Barclays Bank PLC		$	53,230		$	(53,230	)		$	—		$	—
Citibank NA			3,661			(3,661	)			—			—
HSBC Bank USA			1,628			(563	)			—			1,065
JPMorgan Chase Bank			14,637			(14,637	)			—			—
Standard Chartered Bank			6,934			(6,934	)			—			—
Total		$	80,090		$	(79,025	)		$	—		$	1,065

Annual Report 89

11. Accounting Standards Update

In June 2013, the FASB issued ASU No. 2013–08 Financial Services—Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. This ASU clarifies the characteristics of an investment company, provides comprehensive guidance to determine whether an entity is an investment company and sets certain measurement and disclosure requirements. This ASU is effective for interim and annual periods in the fiscal years that begin after

December 15, 2013. The Investment Manager does not expect that the adoption of this standard will have a material impact on the financial statements.

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.

90 Annual Report

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

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

Report of Independent Registered Public Accounting Firm

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 Lazard Emerging Markets Equity Portfolio, Lazard Emerging Markets Core Equity Portfolio (commenced operations on October 31, 2013), Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi-Strategy Portfolio, Lazard Emerging Markets Debt Portfolio and Lazard Explorer Total Return Portfolio (commenced operations on June 28, 2013) (each individually a “Portfolio”) which are seven of the Portfolios constituting The Lazard Funds, Inc. (the “Fund”) as of December 31, 2013 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 date noted above to December 31, 2013 and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2013, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights as stated above present fairly, in all material respects, the financial position of each of the Portfolios of The Lazard Funds, Inc. listed above as of December 31, 2013, 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 date noted in the first paragraph above to December 31, 2013 and the financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America.

ANCHIN, BLOCK & ANCHIN LLP

New York, New York
February 28, 2014

Annual Report 91

   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 (68)	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 (51)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
		TIAA-CREF Funds (59 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)
Leon M. Pollack (73)	Director (August 2006)	Private Investor
Richard Reiss, Jr. (69)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (66)	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 (53)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (53)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present) Lazard Ltd, Vice Chairman and Director (2010 – present)

(1)	The address of each Director of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each Director also serves as a Director for each of the Lazard Funds (comprised of, as of January 31, 2014, 31 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) are also board members of Lazard Alternative Strategies 1099 Fund, a closed-end registered management investment company 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, or online, at www.LazardNet.com.

92 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 (41)	Vice President and Secretary  (April 2002)	Managing Director and General Counsel of the Investment Manager
Stephen St. Clair (55)	Treasurer  (May 2003)	Vice President of the Investment Manager
Brian D. Simon (51)	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 (38)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President and Counsel) of the Investment Manager
Cesar A. Trelles (39)	Assistant Treasurer (December 2004)	Vice President (since February 2011, previously Fund Administration Manager) of the Investment Manager

(1)	The address of each officer of the Fund 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 93

   The Lazard Funds, Inc. Other Information (unaudited)

Proxy Voting

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

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

Form N-Q

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

Board Consideration of Management Agreement

Lazard Emerging Markets Core Equity Portfolio

At a meeting of the Fund’s Board held on August 15, 2013, the Board considered the approval of the Management Agreement between the Fund, on behalf of the Lazard Emerging Markets Core Equity Portfolio, and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Investment Manager.

Services Provided

Representatives of the Investment Manager discussed with the Board the Investment Manager’s written presentation provided in advance of the meeting addressing, among other matters, the nature, extent and quality of services provided to the Fund by the Investment Manager, including a discussion of the Investment Manager and its clients (of which the existing Lazard Funds complex of 29 active funds comprised approximately $22 billion of the approximately $163 billion of total assets under the management of the Investment Manager and its global affiliates as of June 30, 2013); the Investment Manager’s global investment management

platform, technology, operational and legal and compliance support and significant marketing infrastructure across broad distribution channels; and the Investment Manager’s personnel, resources, financial condition and experience. The Board received a presentation on the Portfolio from two of the Portfolio’s proposed portfolio managers, including the strategies to be employed for the Portfolio and the Portfolio’s portfolio management team, including professional biographies.

The Directors considered the various services to be provided by the Investment Manager including the Investment Manager’s research and portfolio management capabilities and oversight of day-to-day operations, including supervision of fund accounting and administration-related services and assistance in meeting legal and regulatory requirements. The Directors also considered the Investment Manager’s infrastructure and agreed that the Portfolio was expected to benefit from the services and infrastructure provided by the Investment Manager. The Directors accepted management’s assertion that such services and infrastructure would be greater than those typically provided to a $22 billion fund complex not managed by a large, global firm such as the Investment Manager.

Comparative Management Fee, Expense Ratio and Performance Information

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

Management Fee and Expense Ratios. Representatives of the Investment Manager reviewed the proposed management fee and anticipated expense ratios for the Portfolio and the comparisons provided by Lipper, which compared contractual management fees and expense ratios for the Portfolio to its respective Groups and comparison universes (each, a “Universe”), and the Directors noted the methodology and assumptions used by Lipper, including that the management fee comparisons and the rankings used therein include administrative fees (which are paid to the Fund’s third party

94 Annual Report

administrator that is not affiliated with the Investment Manager). The proposed management fee for the Portfolio was equal to the Group median for Institutional Shares and above the median (by seven basis points) for Open Shares. The net expense ratio for Institutional Shares was slightly above the Group median and below the Universe median, and the net expense ratio for Open Shares was above (by eight basis points) the Group median and above the Universe median. Representatives of the Investment Manager noted that several funds in the Open Shares Group did not have distribution or shareholder servicing plans. The Directors also reviewed information regarding advisory fees charged to the one other client account of the Investment Manager with investment objectives, policies and strategies similar to those of the Portfolio and considered the relevance of this fee information.

Performance. Since the Portfolio had not yet commenced operations, there was no performance for the Directors to consider. The Directors were provided with composite performance information for the Investment Manager’s emerging markets core equity strategy.

Investment Manager Profitability and Economies of Scale

Representatives of the Investment Manager referred to recent discussions regarding considerations of profitability and economies of scale in respect of the Fund’s existing Portfolios and noted that because the Lazard Emerging Markets Core Equity Portfolio is newly formed, has not commenced operations and the eventual aggregate amount of the Portfolio’s assets was uncertain, specific information concerning the cost of services to be provided to the Portfolio and the expected profits to be realized by the Investment Manager, its affiliates from their relationships with the Portfolio and economies of scale would be subject to a number of assumptions and would be speculative and not meaningful. The Investment Manager’s representatives stated that they did not expect the Investment Manager to realize any current profits on the Portfolio initially, noting the Investment Manager’s agreement to waive its fees and/or reimburse the Portfolio for at least two years following the Portfolio’s commencement of operations to maintain the expense ratios reflected in the Lipper materials. The Board determined to revisit this issue no later than when it next reviewed the investment management fee in connection with renewal of the Management Agreement. The Investment Manager’s

representatives noted that neither the Investment Manager nor its affiliates were expected to receive any significant indirect benefits from the Investment Manager acting as investment adviser to the Portfolio. The Investment Manger’s representatives reviewed with the Board information provided on the Investment Manager’s brokerage and soft dollar practices. The representatives of the Investment Manager stated that the Investment Manager intends to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the Portfolio would not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Portfolio’s Open Shares.

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

• The Board concluded that the nature, extent and quality of the services to be provided by the Investment Manager are adequate and appropriate, noting the benefits of advisory and research and other services and infrastructure (as discussed above) associated with an approximately $163 billion global asset management business.

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

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

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

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

Annual Report 95

   The Lazard Funds, Inc. Tax Information Year Ended December 31, 2013 (unaudited)

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2013:

Of the dividends paid by the Portfolios, the corresponding percentage shown below is qualified dividend income.

Portfolio	Percentage
Emerging Markets Equity		100.00	%
Emerging Markets Core Equity		—
Developing Markets Equity		82.66
Emerging Markets Equity Blend		92.71
Emerging Markets Multi-Strategy		71.27
Emerging Markets Debt		—
Explorer Total Return		—

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

Portfolio	Percentage
Emerging Markets Equity		—	%
Emerging Markets Core Equity		—
Developing Markets Equity		7.38
Emerging Markets Equity Blend		4.04
Emerging Markets Multi-Strategy		2.79
Emerging Markets Debt		—
Explorer Total Return		—

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 US non-resident shareholders.

96 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 • www.lazardnet.com   LZDPS024

Lazard Funds Annual Report

December 31, 2013

Fixed Income Funds

Lazard US Short Duration Fixed Income Portfolio

Lazard US Corporate Income Portfolio

Lazard Global Fixed Income Portfolio

   The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
6	Performance Overviews
9	Information About Your Portfolio’s Expenses
11	Portfolio Holdings Presented by Credit Rating
12	Portfolios of Investments
12	Lazard US Short Duration Fixed Income Portfolio
14	Lazard US Corporate Income Portfolio
19	Lazard Global Fixed Income Portfolio
24	Notes to Portfolios of Investments
26	Statements of Assets and Liabilities
27	Statements of Operations
28	Statements of Changes in Net Assets
30	Financial Highlights
33	Notes to Financial Statements
42	Report of Independent Registered Public Accounting Firm
43	Board of Directors and Officers Information
45	Tax and Other Information

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

The year 2013 was one of many contrasts. Some records were set, with US equities reaching new highs, while US bond returns were negative for the first time in more than a decade. Equities globally made good headway, led by a surge in developed-market stocks, which significantly outpaced their emerging-market counterparts during the year. Markets in the United States, Japan, and Europe did well, with returns in the low double digits fueled by accommodative central bank policy and signs of healing in their respective economies.

Bond markets were subdued in comparison to a strong 2012, amid expectations of higher long-term interest rates. Meanwhile, emerging markets equity and debt weakened over concerns about widening current account deficits in the developing world. From a global perspective, corporate profitability and balance sheets remain strong and we anticipate that the operating backdrop for companies will continue to improve.

We are also pleased to inform you of a change to the format of the Lazard Funds’ annual and semiannual reports. Beginning this year-end, we will be reporting on the Lazard Funds through a set of five reports grouped by asset class. This allows us to increase ease of access to fund information for our shareholders and reduce production costs.

As always, at Lazard Asset Management, we remain focused on active management and 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 investment 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

US Short Duration Fixed Income

Interest rates in the United States moved higher throughout the year mainly due to the discussions surrounding the process of unwinding the US Federal Reserve’s (the Fed’s) massive quantitative easing (QE) programs, and the Fed’s subsequent decision to do so. Ten-year US Treasury yields began the year at 1.76%, hit a full-year low of 1.62% in early May, and finished the year at 3.03%.

With this move by the Fed, the US interest rate environment began to normalize. This normalization was reflected in market movements of longer-dated US Treasuries, which began to revert to trading on the fundamentals of the US economy with regard to inflation expectations (which remain muted) and related volatility. However, interest rates in the short- and intermediate-duration areas of the fixed-income market continue to reflect the extraordinary monetary policy measures enacted by the Fed and appear expensive.

US credit markets, particularly in the upper-tier high-yield sector, performed relatively well for the year, as default rates remained near historical lows and performance was largely driven by GDP expectations. Despite some high-profile headlines throughout 2013, the outlook for much of the municipal market also improved. State tax revenues increased, and structural reform initiatives took hold to rein in expenses.

US Corporate Income

Given what was perceived as a tepid economic environment, equity and high-yield market returns in 2013 proved surprisingly strong. While intermediate Treasury interest rates virtually doubled over the year, leading to negative returns, equity returns were robust and the high-yield sector basically earned its coupon. The Bank of America Merrill Lynch BB-B US Cash Pay Non-Distressed High Yield^® Index (the “Cash Pay Index”) returned 6.2%, handily outstripping the Barclays US Aggregate Bond^® Index, which returned -2.0%, and the investment-grade corporate sector, which returned about -1.5%. Equities materially outperformed, with the S&P 500^® Index returning 32.4%.

High-yield market spreads tightened by approximately 134 basis points (bps) over the year. Intermediate Treasury (5 to 7 year) yields increased about 115 bps as fears of the Fed tapering roiled the market. BB rated spreads tightened by about 98 bps, while CCC rated spreads tightened by 232 bps. The Cash Pay Index ended 2013 at a spread of 322 bps

over Treasuries. For the year, new high-yield bond issuance in the US market was approximately $399 billion. Mutual fund flows were negative, and totaled about $4.1 billion. The Moody’s Investors Service, Inc. trailing 12-month issuer default rate was 2.2% as of December 31, 2013, down from 3.4% in December 2012.

Global Fixed Income

Investors began 2013 in a relatively upbeat and complacent mood, shrugging off negative implications from the hastily-crafted US “fiscal cliff” agreement. Bond yields initially rose in many countries around the world given the positive risk sentiment, but rates shifted lower during the remainder of the first quarter as investors digested new market catalysts, including the US sequester, Italian political theatrics, and the Cypriot banking crisis.

Volatility prevailed throughout the second quarter, as global bonds and higher-risk assets initially rallied during April in response to the Bank of Japan’s “shock and awe” QE policy, which exceeded expectations as to its timing and magnitude. Non-Japanese investors, especially hedge funds, appeared to embark on a global shopping spree, attempting to position themselves based on what Japanese investors might buy if they moved out of low-yielding Japanese government bonds. A reversal in sentiment and market movements ensued in May and June, as Fed Chairman Ben Bernanke’s clarification regarding the US central bank’s stance on a “taper” of its QE program unsettled investors. During the second quarter, the yield on the US 10-year maturity bond ranged from a low of 1.62% on May 1 to a high of 2.66% on June 24, to end the quarter near 2.50%. Yields for many non-US markets rose more dramatically, as flows and technical factors overwhelmed fundamentals for many of these countries. The magnitude of yield movements for core markets, such as Germany, Canada, and Australia, were similar to those in the United States, but the more “crowded” positioning in Italy, Ireland, Indonesia, and other emerging-market countries led to greatly exaggerated yield movements in those countries.

Relatively calm bond market conditions prevailed during the second half of 2013, despite the “debt drama” in Washington, D.C. during October, and the “surprise” taper in December. A few trends persisted, as yields from core countries with slightly stronger economic data (the United States and the United Kingdom) rose modestly, while lower inflation in

Annual Report 3

Europe as well as a surprise rate cut by the European Central Bank (ECB) benefited bonds in that region, helping peripheral countries post double-digit returns for the year, in local currency terms. After underperforming most other government bond markets in 15 of the last 20 years, and offering some of the lowest yields in the world, Japanese government bonds were among the top-performing bonds for 2013, in local currency terms—a reminder that the highest-yielding bonds do not always produce the best returns.

Credit sector spreads widened following the initial taper announcement in May, but generally improved toward the end of the year, reflecting better-than-expected corporate earnings reports, and maintaining a strong correlation with equity markets. High-yield corporate bonds posted attractive returns in the mid-single digits, outperforming investment-grade issuers, which posted modestly negative returns.

Currencies finished the year mixed, but the main theme was a modestly stronger US dollar, which moved in tandem with higher US interest rates. The British pound was also buoyant, as UK economic data was robust and as inflation was higher there than in other core markets. Surprisingly, the euro showed resilience once again, helping performance for correlated currencies such as the Polish zloty, Swiss franc, and Israeli shekel (versus the US dollar), despite a 25 bp rate cut from the ECB in November.

Lazard US Short Duration Fixed Income Portfolio¹

For the year ended December 31, 2013, the Lazard US Short Duration Fixed Income Portfolio’s Institutional Shares posted a total return of -1.39%, while Open Shares posted a total return of -1.70%, as compared with the 0.36% return for the Bank of America Merrill Lynch 1-3 Year Treasury^® Index.

For the first six months of the year, the Portfolio underper-formed the Bank of America Merrill Lynch 1-10 Year Municipal Bond^® Index. The underperformance was primarily attributed to yield curve positioning and a higher-quality profile. The overweight exposure to longer-dated maturities detracted from returns due to significant yield curve steepening, as longer-maturity allocations significantly underperformed amid the interest rate back-up. In addition, intermediate maturity, higher-quality issues lagged, as lower-rated bonds outperformed for the majority of the six-month period.

From July 1, 2013 to December 31, 2013, the Portfolio outperformed the Bank of America Merrill Lynch 1-3 Year Treasury Index. Performance was helped by positions in US corporate financials, agency mortgage-backed securities, and a shorter relative duration. There were no notable detractors for the second half of 2013.

Lazard US Corporate Income Portfolio²

For the year ended December 31, 2013, the Lazard US Corporate Income Portfolio’s Institutional Shares posted a total return of 6.17%, while Open Shares posted a total return of 5.64%, as compared with the 6.19% return for the Cash Pay Index.

Portfolio performance lagged the Cash Pay Index in 2013 as lower-quality credits and higher-beta names 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 under-performance. Over the past year CCC rated bonds returned 13.28% compared to 5.19% for BB rated bonds. The CCC rated sector is typically volatile and more prone to defaults than the upper tiers of high yield, where we concentrate. As of December 31, 2013, approximately 60% of the securities comprising the Portfolio were rated BB- or better by Standard & Poor’s Rating Services, and approximately 80% were rated B+ or better. Portfolio performance was helped by overweight positions in the automotive, broadcasting (media), and publishing/printing sectors, and by underweight positions in the telecommunications sector. Performance was hurt by overweight positions in the cable sector and underweight positions in the bank, financial services, and technology sectors.

Lazard Global Fixed Income Portfolio

For the year ended December 31, 2013, the Lazard Global Fixed Income Portfolio’s Institutional Shares posted a total return of -4.13%, while Open Shares posted a total return of -4.41%, as compared with the -2.60% return of the Barclays Capital Global Aggregate Bond^® Index.

The Portfolio’s performance was helped by its defensive duration in the United States and core Europe, as well as country allocations, primarily overweight exposures to Ireland and Israel. Security selection in the United States and the United Kingdom was also additive, with contributions from

4 Annual Report

overweight positions in high-yield bonds, and diversified exposure to investment-grade corporate debt and sovereign external debt. Returns were helped by currency exposure, including an underweight position in Japanese yen and overweight positions in Chinese renminbi, Israeli shekel, British pound, and Polish zloty. On a country level, the Portfolio’s absence of exposure to Spain, Italy, and Japan, which together compose approximately a quarter of the benchmark,

drove almost all of its underperformance during the year. Modest exposure to bonds in Brazil and Peru created some additional drag on returns.

The portfolio management team utilizes forward currency contracts, both opportunistically and defensively, for hedging purposes. In 2013, the use of currency forward contracts did not have a material impact on the Portfolio.

Notes to Investment Overviews:

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

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

The views of the Investment Manager and the securities described in this report are as of December 31, 2013; 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 June 28, 2013, the Portfolio compares its performance to the Bank of America Merrill Lynch 1-3 Year Treasury Index instead of the Bank of America Merrill Lynch 1-10 Year Municipal Bond Index to reflect its change from a municipal fund to its current investment strategy as of such date.
2	As of June 28, 2013, the Portfolio compares its performance to the Cash Pay Index instead of the Bank of America Merrill Lynch High Yield Master II® Index to reflect the Portfolio’s focus on higher-yielding securities that may be considered “better quality.”

Annual Report 5

   The Lazard Funds, Inc. Performance Overviews

Lazard US Short Duration Fixed Income Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Short Duration Fixed Income Portfolio, Bank of America Merrill Lynch 1-3 Year Treasury^® Index and Bank of America Merrill Lynch 1-10 Year Municipal Bond^® Index*

Average Annual Total Returns*

Periods Ended December 31, 2013

	One Year	Since Inception	†
Institutional Shares**	–1.39%	1.95%
Open Shares**	–1.70%	1.64%
Bank of America Merrill Lynch 1-3 Year Treasury Index	0.36%	0.80%
Bank of America Merrill Lynch 1-10 Year Municipal Bond Index	0.16%	3.22%

*	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 Boston Financial Data Services, Inc., the Fund’s transfer and dividend disbursing agent (“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 Portfolio was previously known as Lazard U.S. Municipal Portfolio. As of June 28, 2013, the Portfolio changed its name to Lazard US Short Duration Fixed Income Portfolio and changed its investment objective and investment strategy and policies (including the policy with respect to the investment of 80% of its assets).The Portfolio invests at least 80% of its assets in fixed-income securities of US issuers, including US government securities, corporate securities, mortgage-related and asset-backed securities, convertible securities, municipal securities, structured products, preferred stocks and inflation-indexed securities. The Bank of America Merrill Lynch 1-3 Year Treasury Index replaced the Bank of America Merrill Lynch 1-10 Year Municipal Bond Index to reflect the Portfolio’s change from a municipal fund to its current investment strategy.
	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 Bank of America Merrill Lynch 1-3 Year Treasury Index tracks the performance of the direct sovereign debt of the US Government having a maturity of at least one year and less than three years. The Bank of America Merrill Lynch 1-10 Year Municipal Bond Index is a subset of the Bank of America Merrill Lynch US Municipal Securities® Index including all securities with a remaining term to final maturity less than 10 years. The Bank of America Merrill Lynch US Municipal Securities Index tracks the performance of US dollar-denominated investment grade tax-exempt debt publicly issued by US 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.

6 Annual Report

Lazard US Corporate Income Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Corporate Income Portfolio, Cash Pay Index and Bank of America Merrill Lynch High Yield Master II^® Index*

Average Annual Total Returns*

Years Ended December 31, 2013

	One Year	Five Years	Ten Years
Institutional Shares**	6.17%	13.49%	6.95%
Open Shares**	5.64%	13.13%	6.63%
Cash Pay Index	6.19%	13.74%	7.16%
Bank of America Merrill Lynch High Yield Master II Index	7.42%	18.65%	8.46%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; 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. High Yield Portfolio. As of June 28, 2013, the Portfolio changed its name to Lazard US Corporate Income Portfolio and changed its policy with respect to the investment of 80% of its assets and certain related policies. The Portfolio invests at least 80% of its assets in fixed-income securities issued by corporations or other non-government issuers similar to corporations, which securities are tied economically to the US. The Cash Pay Index replaced the Bank of America Merrill Lynch High Yield Master II Index to reflect the Portfolio’s focus on higher-yielding securities that may be considered “better quality.”
	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 Cash Pay Index is the Bank of America Merrill Lynch BB-B US Cash Pay Non-Distressed High Yield® Index which is constructed to mirror the BB-B Non Distressed sector of the public high yield corporate debt market and is a subset of the Merrill Lynch High Yield Cash Pay® Index. The Bank of America Merrill Lynch High Yield Master II Index provides a broad-based measure of the performance of the non-investment grade US domestic bond market. 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 7

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*

Average Annual Total Returns*

Periods Ended December 31, 2013

	One Year	Since Inception	†
Institutional Shares**	–4.13%	–0.55%
Open Shares**	–4.41%	–0.84%
Barclays Capital Global Aggregate Bond Index	–2.60%	0.42%

*	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.
	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 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, US dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities, 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.

8 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, 2013 through December 31, 2013 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 7/1/13		Ending Account Value 12/31/13		Expenses Paid During Period* 7/1/13 - 12/31/13		Annualized Expense Ratio During Period 7/1/13 - 12/31/13
US Short Duration Fixed Income
Institutional Shares
Actual	$	1,000.00	$	1,005.70	$	2.02		0.40	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,023.19	$	2.04		0.40	%
Open Shares
Actual	$	1,000.00	$	1,004.20	$	3.54		0.70	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.68	$	3.57		0.70	%
US Corporate Income
Institutional Shares
Actual	$	1,000.00	$	1,051.00	$	2.84		0.55	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,022.43	$	2.80		0.55	%
Open Shares
Actual	$	1,000.00	$	1,047.20	$	4.39		0.85	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.92	$	4.33		0.85	%

Annual Report 9

Portfolio	Beginning Account Value 7/1/13		Ending Account Value 12/31/13		Expenses Paid During Period* 7/1/13 - 12/31/13		Annualized Expense Ratio During Period 7/1/13 - 12/31/13
Global Fixed Income
Institutional Shares
Actual	$	1,000.00	$	1,021.60	$	4.08		0.80	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.17	$	4.08		0.80	%
Open Shares
Actual	$	1,000.00	$	1,020.10	$	5.60		1.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.66	$	5.60		1.10	%

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

10 Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Credit Rating December 31, 2013

S&P Credit Rating*	Lazard  US Short Duration  Fixed Income Portfolio			Lazard  US Corporate  Income Portfolio			Lazard Global Fixed Income Portfolio
AAA		66.0	%		—	%		14.7	%
AA+		2.5			—			7.3
AA		—			—			1.5
AA-		1.6			—			12.8
A+		1.2			—			4.4
A		3.9			—			10.5
A-		8.7			—			8.0
BBB+		6.6			—			9.2
BBB		7.8			1.4			6.6
BBB-		—			4.7			2.4
BB+		—			4.5			2.1
BB		—			17.4			1.8
BB-		—			29.2			2.7
B+		—			19.1			0.5
B		—			11.5			0.5
B-		—			5.0			—
CCC+		—			3.1			—
NR		—			—			4.3
NA		—			—			8.3
Short-Term Investments		1.7			4.1			2.4
Total Investments		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

  

Annual Report 11

The Lazard Funds, Inc. Portfolios of Investments December 31, 2013

Description	Principal Amount (000)		Value
Lazard US Short Duration Fixed Income Portfolio
Corporate Bonds | 23.5%
Cable Television | 1.5%
Time Warner Cable, Inc.,
7.500%, 04/01/14	$	1,000	$	1,016,602
Chemicals | 1.8%
Albemarle Corp.,
5.100%, 02/01/15		1,150		1,199,980
Energy Services | 0.4%
Noble Holding International, Ltd.,
7.375%, 03/15/14		275		278,614
Financial Services | 9.9%
Citigroup, Inc.:
5.125%, 05/05/14		3		3,044
5.500%, 10/15/14		1,425		1,477,936
Goldman Sachs Group, Inc.,
6.000%, 05/01/14		1,225		1,246,875
JPMorgan Chase & Co.,
4.650%, 06/01/14		1,000		1,017,510
Morgan Stanley,
0.543%, 01/09/14 (a)		1,750		1,750,026
Western Union Co.,
5.930%, 10/01/16		1,125		1,250,292
				6,745,683
Media | 4.0%
DIRECTV Holdings LLC,
4.750%, 10/01/14		1,162		1,196,571
Viacom, Inc.,
4.375%, 09/15/14		1,525		1,564,773
				2,761,344
Technology | 4.2%
Amphenol Corp.,
4.750%, 11/15/14		1,275		1,317,451
Equifax, Inc.,
4.450%, 12/01/14		1,504		1,551,130
				2,868,581

Description	Principal Amount (000)		Value
Telecommunications | 1.7%
BellSouth Corp.,
5.200%, 09/15/14	$	1,150	$	1,187,506
Total Corporate Bonds (Identified cost $ 16,045,187)				16,058,310
Municipal Bonds | 8.1%
California | 1.5%
California State Taxable Various Purpose:
1.050%, 02/01/16		600		601,602
5.500%, 03/01/16		375		410,138
				1,011,740
District Of Columbia | 0.8%
District of Columbia Revenue National Public Radio Series A,
5.000%, 04/01/43 (Pre-Refunded to 04/01/15 @ $100) (b)		500		529,420
Illinois | 0.8%
Railsplitter Illinois Tobacco Settlement Authority,
4.125%, 06/01/16		500		533,795
Kentucky | 0.5%
Kentucky State Asset Liability Commission General Funding Revenue,
3.165%, 04/01/18		351		361,006
Maryland  | 0.8%
Washington Maryland Suburban Sanitary District Sewer Disposal,
5.000%, 06/01/20 (Pre-Refunded to 06/01/15 @ $100) (b)		500		533,380
Massachusetts | 1.5%
Massachusetts State Construction Loan Series A,
5.000%, 03/01/17 (Pre-Refunded to 03/01/15 @ $100) (b)		500		527,740
Massachusetts State School Building Authority Sales Tax Revenue Series A,
5.000%, 08/15/17 (Pre-Refunded to 08/15/15 @ $100) (b)		500		538,265
				1,066,005

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

12 Annual Report

Description	Principal Amount (000)		Value
Lazard US Short Duration Fixed Income Portfolio (concluded)
Michigan | 0.8%
Michigan State Hospital Finance Authority Series A Trinity Health,
5.250%, 12/01/15	$	500	$	542,225
Pennsylvania | 0.6%
Pennsylvania State Higher Educational Facilities Authority Revenue Temple University,
5.000%, 04/01/15		400		423,540
Virginia | 0.8%
Richmond VA Public Improvement Series A,
5.000%, 07/15/17 (Pre-Refunded to 07/15/15 @ $100) (b)		500		535,890
Total Municipal Bonds (Identified cost $ 5,510,995)				5,537,001
US Government Securities  | 33.7%
Federal Home Loan Mortgage Corp.:
Pool# 848138, 2.557%, 07/01/38		1,456		1,568,380
Pool# 1B4676, 3.732%, 05/01/40		1,435		1,520,245
Pool# 1B8709, 2.240%, 08/01/34		521		548,703
Pool# 1Q1531, 2.638%, 04/01/38		1,269		1,345,006
Pool# G11720, 4.500%, 08/01/20		670		711,706
Pool# G13867, 5.000%, 06/01/25		761		814,775
Series 3725 Class A, 3.500%, 09/15/24		646		674,759
Federal National Mortgage Association:
Pool# 725296, 2.484%, 03/01/34		816		868,111
Pool# 889735, 5.500%, 07/01/23		786		861,210
Pool# 889828, 5.000%, 10/01/19		635		679,657
Pool# 963058, 4.888%, 05/01/38		1,342		1,440,025
Pool# 995609, 2.537%, 04/01/35		1,490		1,583,495

Description	Principal Amount (000)		Value
Pool# AC5307, 3.987%, 11/01/39	$	715	$	765,967
Pool# AD0278, 4.262%, 09/01/39		434		462,401
Pool# AE0149, 2.334%, 12/01/36		1,403		1,489,880
Pool# AE0315, 4.500%, 02/01/21		257		273,334
Pool# AE0887, 3.740%, 09/01/40		721		766,791
Pool# AL0345, 2.493%, 11/01/35		1,398		1,474,976
Pool# AL3232, 3.770%, 02/01/40		840		890,411
Pool# AL3260, 2.480%, 07/01/38		872		926,507
Pool# AL3739, 2.304%, 07/01/38		505		535,796
Pool# AL3941, 6.000%, 03/01/24		1,237		1,338,072
Pool# AL4545, 2.332%, 05/01/39		1,441		1,531,149
Total US Government Securities (Identified cost $ 22,944,161)				23,071,356
US Treasury Security | 28.2%
US Treasury Note,
2.125%, 11/30/14 (Identified cost $19,302,375)		18,965		19,301,325

Description	Shares		Value
Short-Term Investment | 1.6%
State Street Institutional Treasury Money Market Fund (Identified cost $ 1,070,695)		1,070,695	$	1,070,695
Total Investments | 95.1% (Identified cost $ 64,873,413) (c)			$	65,038,687
Cash and Other Assets in Excess of Liabilities | 4.9%				3,374,683
Net Assets | 100.0%			$	68,413,370

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

Annual Report 13

Description	Principal Amount (000)		Value
Lazard US Corporate Income Portfolio
Corporate Bonds | 94.4%
Aerospace & Defense | 1.9%
Bombardier, Inc.,
7.750%, 03/15/20 (d)	$	1,600	$	1,816,000
Huntington Ingalls Industries, Inc.,
6.875%, 03/15/18		1,500		1,620,000
				3,436,000
Apparel & Textiles | 1.7%
Jones Group, Inc.,
6.875%, 03/15/19		1,500		1,590,000
Levi Strauss & Co.,
7.625%, 05/15/20		1,300		1,426,750
				3,016,750
Automotive | 4.3%
Chrysler Group LLC,
8.250%, 06/15/21		1,400		1,592,500
Dana Holding Corp.,
6.500%, 02/15/19		1,500		1,593,750
Schaeffler Finance BV:
7.750%, 02/15/17 (d)		250		283,750
8.500%, 02/15/19 (d)		250		281,250
4.750%, 05/15/21 (d)		1,000		997,500
The Goodyear Tire & Rubber Co.,
8.250%, 08/15/20		1,775		1,983,562
Tomkins LLC,
9.000%, 10/01/18		769		842,055
				7,574,367
Building Materials | 4.4%
Griffon Corp.,
7.125%, 04/01/18		1,705		1,807,300
HD Supply, Inc.,
8.125%, 04/15/19		1,400		1,559,250
Masco Corp.,
6.125%, 10/03/16		1,500		1,680,000
Owens Corning, Inc.,
9.000%, 06/15/19		123		151,853
USG Corp.,
9.750%, 01/15/18		675		798,187
Vulcan Materials Co.,
6.500%, 12/01/16		1,600		1,792,000
				7,788,590

Description	Principal Amount (000)		Value
Cable Television | 6.2%
Cablevision Systems Corp.,
7.750%, 04/15/18	$	1,500	$	1,674,375
CCO Holdings LLC,
5.250%, 03/15/21 (d)		1,950		1,862,250
Cequel Communications Holdings I LLC,
6.375%, 09/15/20 (d)		1,800		1,845,000
DISH DBS Corp.,
5.125%, 05/01/20		1,000		1,002,500
Lynx I Corp.,
5.375%, 04/15/21 (d)		1,810		1,810,000
Mediacom LLC,
9.125%, 08/15/19		175		189,219
Nara Cable Funding, Ltd.,
8.875%, 12/01/18 (d)		1,075		1,155,625
Unitymedia Hessen GmbH & Co. KG,
7.500%, 03/15/19 (d)		1,400		1,522,500
				11,061,469
Chemicals | 3.0%
Chemtura Corp.,
5.750%, 07/15/21		1,400		1,419,250
Ineos Finance PLC,
7.500%, 05/01/20 (d)		1,400		1,534,750
Mosaic Global Holdings, Inc.,
7.300%, 01/15/28		775		918,077
Tronox Finance LLC,
6.375%, 08/15/20		1,400		1,428,000
				5,300,077
Computer Services | 2.2%
First Data Corp.:
8.875%, 08/15/20 (d)		850		940,313
6.750%, 11/01/20 (d)		400		416,000
iGATE Corp.,
9.000%, 05/01/16		1,200		1,275,000
Nuance Communications, Inc.,
5.375%, 08/15/20 (d)		1,373		1,342,107
				3,973,420
Consumer Products | 0.3%
First Quality Finance Co., Inc.,
4.625%, 05/15/21 (d)		500		475,000
Diversified | 0.7%
Amsted Industries, Inc.,
8.125%, 03/15/18 (d)		1,100		1,159,125

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

14 Annual Report

Description		Principal Amount (000)		Value
Lazard US Corporate Income Portfolio (continued)
Electric Generation | 2.3%
AES Corp.,
8.000%, 10/15/17	$	1,472	$	1,729,600
Calpine Corp.,
7.875%, 07/31/20 (d)		920		1,007,400
GenOn Energy, Inc.:
9.500%, 10/15/18		225		254,813
9.875%, 10/15/20		475		527,250
NRG Energy, Inc.,
8.250%, 09/01/20		525		581,437
				4,100,500
Electronics | 0.8%
Amkor Technologies, Inc.,
6.625%, 06/01/21		1,400		1,452,500
Energy Exploration & Production | 3.3%
Chesapeake Energy Corp.,
9.500%, 02/15/15		1,400		1,517,250
Linn Energy LLC,
6.500%, 05/15/19		1,750		1,785,000
Plains Exploration & Production Co.,
6.500%, 11/15/20		1,400		1,546,132
Samson Investment Co.,
10.500%, 02/15/20 (d)		1,000		1,090,000
				5,938,382
Energy Services | 3.5%
Cie Generale de Geophysique-Veritas,
7.750%, 05/15/17		1,765		1,817,950
Citgo Petroleum Corp.,
11.500%, 07/01/17 (d)		1,250		1,368,750
Expro Finance Luxembourg SCA,
8.500%, 12/15/16 (d)		429		447,233
Hornbeck Offshore Services, Inc.,
5.000%, 03/01/21		1,600		1,568,000
PBF Holding Co. LLC,
8.250%, 02/15/20		900		976,500
				6,178,433
Environmental | 1.0%
Clean Harbors, Inc.,
5.250%, 08/01/20		1,750		1,802,500

Description		Principal Amount (000)		Value
Financial Services | 1.9%
Icahn Enterprises LP:
7.750%, 01/15/16	$	500	$	510,000
8.000%, 01/15/18		1,100		1,144,000
International Lease Finance Corp.:
8.625%, 09/15/15		500		555,000
5.750%, 05/15/16		500		535,625
8.750%, 03/15/17		500		588,750
				3,333,375
Food & Beverages | 2.5%
Constellation Brands, Inc.,
7.250%, 05/15/17		950		1,104,375
Del Monte Corp.,
7.625%, 02/15/19		1,500		1,558,125
Post Holdings, Inc.,
7.375%, 02/15/22		1,650		1,765,500
				4,428,000
Forest & Paper Products | 1.1%
Smurfit Kappa Acquisitions,
4.875%, 09/15/18 (d)		1,050		1,089,375
Smurfit Kappa Treasury Funding, Ltd.,
7.500%, 11/20/25		750		820,313
				1,909,688
Gaming | 3.2%
Boyd Gaming Corp.,
9.125%, 12/01/18		1,350		1,468,125
Marina District Finance Co., Inc.,
9.875%, 08/15/18		500		541,250
MGM Resorts International,
6.625%, 12/15/21		1,000		1,057,500
Scientific Games Corp.,
8.125%, 09/15/18		350		375,375
Scientific Games International, Inc.:
9.250%, 06/15/19		250		268,125
6.250%, 09/01/20		850		871,250
Wynn Las Vegas LLC,
7.750%, 08/15/20		1,050		1,178,625
				5,760,250
Gas Distribution | 4.1%
El Paso Corp.,
7.000%, 06/15/17		650		734,914
Energy Transfer Equity LP,
7.500%, 10/15/20		1,250		1,403,125

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

Annual Report 15

Description		Principal Amount (000)		Value
Lazard US Corporate Income Portfolio (continued)
Ferrellgas Partners LP:
8.625%, 06/15/20	$	520	$	547,300
6.500%, 05/01/21		500		510,000
NGPL PipeCo LLC,
7.119%, 12/15/17 (d)		505		457,025
Niska Gas Storage US LLC,
8.875%, 03/15/18		750		780,000
Rockies Express Pipeline LLC,
6.850%, 07/15/18 (d)		1,450		1,410,125
Suburban Propane Partners LP,
7.500%, 10/01/18		1,329		1,425,353
				7,267,842
Health Services | 6.2%
Biomet, Inc.,
6.500%, 08/01/20		1,750		1,837,500
Community Health Systems, Inc.,
8.000%, 11/15/19		1,400		1,519,000
Fresenius US Finance II, Inc.,
9.000%, 07/15/15 (d)		525		580,125
Grifols, Inc.,
8.250%, 02/01/18		1,525		1,626,031
HCA, Inc.,
6.500%, 02/15/20		1,600		1,758,000
Health Management Associates, Inc.,
6.125%, 04/15/16		1,000		1,107,500
Service Corp. International,
6.750%, 04/01/16		750		817,500
Tenet Healthcare Corp.:
4.750%, 06/01/20		700		684,250
4.375%, 10/01/21		1,250		1,175,000
				11,104,906
Leisure & Entertainment | 1.9%
ACCO Brands Corp.,
6.750%, 04/30/20		1,750		1,728,125
AMC Entertainment, Inc.,
8.750%, 06/01/19		950		1,015,313
Cedar Fair LP,
9.125%, 08/01/18		225		244,125
Royal Caribbean Cruises, Ltd.,
7.250%, 06/15/16		330		370,425
				3,357,988

Description		Principal Amount (000)		Value
Machinery | 1.6%
Terex Corp.,
6.500%, 04/01/20	$	1,600	$	1,712,000
The Manitowoc Co., Inc.,
8.500%, 11/01/20		1,000		1,135,000
				2,847,000
Media | 5.3%
Clear Channel Worldwide Holdings, Inc.,
6.500%, 11/15/22		1,750		1,787,187
Lamar Media Corp.,
7.875%, 04/15/18		1,000		1,056,250
LIN Television Corp.,
8.375%, 04/15/18		1,400		1,480,500
Sinclair Television Group, Inc.,
5.375%, 04/01/21		1,900		1,871,500
Sirius XM Radio, Inc.,
5.750%, 08/01/21 (d)		1,500		1,515,000
WMG Acquisition Corp.,
6.000%, 01/15/21 (d)		1,620		1,682,775
				9,393,212
Metals & Mining | 2.7%
Alpha Natural Resources, Inc.,
6.000%, 06/01/19		850		733,125
Calcipar SA,
6.875%, 05/01/18 (d)		1,350		1,431,000
FMG Resources (August 2006) Property, Ltd.,
7.000%, 11/01/15 (d)		927		961,763
Inmet Mining Corp.,
8.750%, 06/01/20 (d)		1,500		1,627,500
				4,753,388
Packaging | 3.6%
Ardagh Packaging Finance PLC,
7.375%, 10/15/17 (d)		1,350		1,449,563
Reynolds Group Issuer, Inc.,
5.750%, 10/15/20		1,500		1,530,000
Sealed Air Corp.,
8.125%, 09/15/19 (d)		1,775		1,992,437
Silgan Holdings, Inc.,
5.000%, 04/01/20		1,475		1,456,562
				6,428,562
Pharmaceutical & Biotechnology | 1.3%
Mylan, Inc.,
7.875%, 07/15/20 (d)		650		735,502
Valeant Pharmaceuticals International,
6.375%, 10/15/20 (d)		1,500		1,580,625
				2,316,127

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

16 Annual Report

Description		Principal Amount (000)		Value
Lazard US Corporate Income Portfolio (continued)
Printing & Publishing | 2.7%
Gannett Co., Inc.,
7.125%, 09/01/18	$	1,676	$	1,789,130
R.R. Donnelley & Sons Co.,
7.250%, 05/15/18		1,600		1,816,000
The McClatchy Co.,
9.000%, 12/15/22		1,100		1,210,000
				4,815,130
Real Estate | 1.7%
CNL Lifestyle Properties, Inc.,
7.250%, 04/15/19		1,600		1,648,000
DuPont Fabros Technology LP,
5.875%, 09/15/21		1,400		1,445,500
				3,093,500
Retail | 1.4%
Netflix, Inc.,
5.375%, 02/01/21 (d)		1,450		1,468,125
QVC, Inc.,
7.500%, 10/01/19 (d)		1,000		1,077,847
				2,545,972
Steel-Producers | 3.0%
AK Steel Corp.,
7.625%, 05/15/20		275		274,313
ArcelorMittal SA,
6.000%, 03/01/21		1,400		1,484,000
Steel Dynamics, Inc.,
6.125%, 08/15/19		1,800		1,948,500
United States Steel Corp.,
6.050%, 06/01/17		1,475		1,593,000
				5,299,813
Support Services | 2.7%
Algeco Scotsman Global Finance PLC,
8.500%, 10/15/18 (d)		1,250		1,353,125
The ADT Corp.,
6.250%, 10/15/21 (d)		1,400		1,470,000
United Rentals North America, Inc.:
9.250%, 12/15/19		1,000		1,115,000
7.375%, 05/15/20		750		831,563
				4,769,688

Description		Principal Amount (000)		Value
Technology Hardware | 0.8%
NCR Corp.,
4.625%, 02/15/21	$	1,450	$	1,388,375
Telecommunications | 8.7%
CenturyLink, Inc.,
5.625%, 04/01/20		1,800		1,831,500
Equinix, Inc.,
4.875%, 04/01/20		1,800		1,791,000
Frontier Communications Corp.,
8.125%, 10/01/18		1,500		1,713,750
GCI, Inc.,
8.625%, 11/15/19		1,000		1,062,500
Intelsat Jackson Holdings, Ltd.,
7.250%, 04/01/19		1,300		1,404,000
MetroPCS Wireless, Inc.,
6.250%, 04/01/21 (d)		1,850		1,919,375
SBA Telecommunications, Inc.,
5.750%, 07/15/20		1,500		1,560,000
Sprint Capital Corp.,
6.900%, 05/01/19		1,475		1,611,437
Wind Acquisition Finance SA,
11.750%, 07/15/17 (d)		800		851,000
Windstream Corp.,
8.125%, 09/01/18		1,575		1,693,125
				15,437,687
Transportation | 2.4%
Florida East Coast Railway Corp.,
8.125%, 02/01/17		1,200		1,252,500
Hapag-Lloyd AG,
9.750%, 10/15/17 (d)		1,075		1,131,438
Teekay Corp.,
8.500%, 01/15/20		1,725		1,865,156
				4,249,094
Total Corporate Bonds (Identified cost $159,589,848)				167,756,710

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

Annual Report 17

Description	Shares		Value
Lazard US Corporate Income Portfolio (concluded)
Short-Term Investment | 4.0%
State Street Institutional Treasury Money Market Fund (Identified cost $7,194,283)	7,194,283	$	7,194,283

Description		Value
Total Investments | 98.4% (Identified cost $166,784,131) (c)	$	174,950,993
Cash and Other Assets in Excess of Liabilities | 1.6%		2,823,036
Net Assets | 100.0%	$	177,774,029

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

18 Annual Report

Description	Security Currency		Principal Amount (000)		Value
Lazard Global Fixed Income Portfolio
Corporate Bonds | 30.0%
Australia | 2.0%
Mercedes-Benz Australia/Pacific Property, Ltd.,
4.500%, 05/18/15		AUD		60	$	54,421
Telstra Corp., Ltd.,
6.250%, 04/15/15		AUD		60		55,628
						110,049
Canada | 3.0%
Bombardier, Inc.,
7.500%, 03/15/18 (d)		USD		30		34,125
Shaw Communications, Inc.,
5.650%, 10/01/19		CAD		45		46,564
Suncor Energy, Inc.,
6.100%, 06/01/18		USD		25		28,899
Wells Fargo Financial Canada Corp.,
2.774%, 02/09/17		CAD		60		57,566
						167,154
Chile | 1.8%
Codelco, Inc.,
3.750%, 11/04/20		USD		100		99,962
France | 2.0%
Orange SA:
4.750%, 02/21/17		EUR		50		76,036
5.375%, 07/08/19		USD		35		39,033
						115,069
Italy | 1.3%
Atlantia S.p.A.,
3.375%, 09/18/17		EUR		50		72,552
Luxembourg | 0.4%
ArcelorMittal SA,
5.000%, 02/25/17		USD		20		21,450
Netherlands | 1.1%
BMW Finance NV,
3.375%, 12/14/18		GBP		35		60,076

Description	Security Currency		Principal Amount (000)		Value
Norway | 0.8%
Statoil ASA,
2.450%, 01/17/23		USD		50	$	45,575
United Kingdom | 4.0%
BG Energy Capital PLC,
5.125%, 12/01/25		GBP		50		89,572
GKN Holdings PLC,
6.750%, 10/28/19		GBP		20		37,404
Rolls-Royce PLC,
6.750%, 04/30/19		GBP		50		98,298
						225,274
United States | 13.6%
AES Corp.,
7.750%, 10/15/15		USD		20		22,100
Anheuser-Busch InBev
Worldwide, Inc.,
9.750%, 11/17/15		BRL		100		41,751
Apple, Inc.,
2.400%, 05/03/23		USD		65		58,449
Citigroup, Inc.,
4.450%, 01/10/17		USD		40		43,352
Constellation Brands, Inc.,
7.250%, 05/15/17		USD		30		34,875
DISH DBS Corp.,
7.125%, 02/01/16		USD		20		22,150
Energizer Holdings, Inc.,
4.700%, 05/19/21		USD		40		40,406
Fresenius US Finance II, Inc.,
9.000%, 07/15/15		USD		20		22,100
General Electric Capital Corp.,
5.500%, 02/01/17		NZD		75		62,945
Goldman Sachs Group, Inc.,
6.250%, 09/01/17		USD		25		28,621
HCA, Inc.,
6.500%, 02/15/20		USD		20		21,975
Huntington Ingalls Industries, Inc.,
6.875%, 03/15/18		USD		25		27,000
JPMorgan Chase & Co.:
1.625%, 05/15/18		USD		15		14,688
3.875%, 09/23/20		EUR		50		75,474
Marathon Oil Corp.,
2.800%, 11/01/22		USD		35		32,256
Masco Corp.,
6.125%, 10/03/16		USD		15		16,800

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

Annual Report 19

Description	Security Currency		Principal Amount (000)		Value
Lazard Global Fixed Income Portfolio (continued)
United States (continued)
Nestle Holdings, Inc.,
2.500%, 07/10/17		NOK		200	$	33,240
Peabody Energy Corp.,
7.375%, 11/01/16		USD		15		16,875
Sealed Air Corp.,
8.125%, 09/15/19 (d)		USD		25		28,062
Valeant Pharmaceuticals International,
6.750%, 10/01/17 (d)		USD		25		26,625
Valero Energy Corp.,
6.125%, 02/01/20		USD		30		34,267
Wynn Las Vegas LLC,
7.750%, 08/15/20		USD		25		28,062
Yum! Brands, Inc.,
3.750%, 11/01/21		USD		25		24,739
						756,812
Total Corporate Bonds (Identified cost $ 1,699,360)						1,673,973
Foreign Government Obligations | 52.0%
Australia | 5.7%
New South Wales Treasury Corp.,
5.000%, 02/25/39		GBP		50		94,795
Queensland Treasury Corp.,
5.500%, 06/21/21		AUD		110		104,743
Western Australian Treasury Corp.,
3.000%, 06/08/16		AUD		135		120,353
						319,891
Bahamas | 1.8%
Commonwealth of Bahamas,
6.950%, 11/20/29		USD		90		98,100
Belgium | 3.2%
Belgium Kingdom,
4.250%, 09/28/22		EUR		115		181,378
Bermuda | 1.9%
Government of Bermuda,
5.603%, 07/20/20		USD		100		107,500

Description	Security Currency		Principal Amount (000)		Value
Brazil | 1.1%
Federal Republic of Brazil,
11.000%, 06/26/17		EUR		35	$	62,065
Canada | 3.0%
Province of British Columbia,
3.700%, 12/18/20		CAD		45		44,796
Province of Ontario,
6.250%, 06/16/15		NZD		75		63,561
Province of Quebec,
4.500%, 12/01/17		CAD		55		56,513
						164,870
China | 2.9%
China Government Bond,
2.560%, 06/29/17		CNY		1,000		163,844
Colombia | 0.7%
Republic of Colombia,
12.000%, 10/22/15		COP		68,000		39,708
Czech Republic | 1.6%
Czech Republic,
5.000%, 06/11/18		EUR		56		89,851
Denmark | 1.0%
Kommunekredit,
2.000%, 01/01/18		DKK		285		53,945
France | 3.3%
Government of France,
4.250%, 10/25/23		EUR		115		182,982
Ireland | 3.4%
Ireland Government Bond,
4.400%, 06/18/19		EUR		125		188,707
Israel | 2.3%
Israel Fixed Government Bond,
5.500%, 01/31/22		ILS		380		125,953
Mexico | 4.7%
Mexican Bonos:
7.750%, 12/14/17		MXN		660		55,411
6.500%, 06/10/21		MXN		1,360		106,868

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

20 Annual Report

Description	Security Currency		Principal Amount (000)		Value
Lazard Global Fixed Income Portfolio (continued)
United Mexican States,
6.750%, 02/06/24		GBP		50	$	101,427
						263,706
Netherlands | 2.2%
Netherlands Government Bond,
2.500%, 01/15/33		EUR		93		121,563
New Zealand | 1.5%
Auckland Council,
4.620%, 03/29/16		NZD		100		82,690
Peru | 2.1%
Peru Bono Soberano,
7.840%, 08/12/20		PEN		285		116,020
Poland | 4.4%
Poland Government Bond,
3.750%, 04/25/18		PLN		400		133,409
Republic of Poland,
6.375%, 07/15/19		USD		97		113,369
						246,778
South Africa | 1.3%
Republic of South Africa,
4.500%, 04/05/16		EUR		50		73,057
Sweden | 1.0%
Svensk Exportkredit AB,
7.625%, 06/30/14		NZD		65		54,495
United Kingdom | 1.0%
United Kingdom Treasury,
4.250%, 12/07/27		GBP		30		54,385
Vietnam | 1.9%
Socialist Republic of Vietnam,
6.875%, 01/15/16		USD		100		106,750
Total Foreign Government Obligations
(Identified cost $2,879,367)						2,898,238

Description	Security Currency		Principal Amount (000)		Value
Quasi Government Bonds | 4.1%
Canada | 2.0%
Hydro-Quebec,
9.625%, 07/15/22		CAD		50	$	68,508
Ontario Electricity Financial Corp.,
10.125%, 10/15/21		CAD		30		41,603
						110,111
Germany | 2.1%
KfW,
2.875%, 10/12/16		NOK		560		94,155
Landeskreditbank Baden- Wuerttemberg Foerderbank,
3.000%, 05/22/17		NOK		130		21,856
						116,011
Total Quasi Government Bonds (Identified cost $239,317)						226,122
Supranationals | 6.9%
Asian Development Bank,
2.850%, 10/21/20		CNY		1,000		160,574
Corporacion Andina de Fomento,
8.125%, 06/04/19		USD		77		93,228
Inter-American Development Bank:
8.120%, 07/24/14		BRL		130		54,805
6.000%, 12/15/17		NZD		30		25,584
International Bank for Reconstruction & Development,
4.250%, 01/28/15		CLP		28,000		53,277
Total Supranationals (Identified cost $412,696)						387,468
US Municipal Bonds | 3.7%
Alaska | 1.5%
Alaska State Qualified School Construction Bonds,
5.342%, 08/01/27		USD		75		82,611

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

Annual Report 21

Description	Security Currency		Principal Amount (000)		Value
Lazard Global Fixed Income Portfolio (continued)
Texas | 2.2%
Texas State Build America Bonds Series A,
4.123%, 04/01/25		USD		50	$	49,827
University of Texas Build America Bonds Series B,
6.276%, 08/15/41		USD		70		75,955
						125,782
Total US Municipal Bonds (Identified cost $ 225,201)						208,393

Description	Shares		Value
Short-Term Investment | 2.3%
State Street Institutional Treasury Money Market Fund (Identified cost $130,811)		130,811	$	130,811
Total Investments | 99.0% (Identified cost $5,586,752) (c), (e)			$	5,525,005
Cash and Other Assets in Excess of Liabilities | 1.0%				53,581
Net Assets | 100.0%
			$	5,578,586

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

22 Annual Report

Lazard Global Fixed Income Portfolio (concluded)

Forward Currency Contracts open at December 31, 2013:

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts
AUD		CAN	02/20/14		26,585	$	23,845	$	23,663	$	—	$	182
CHF		CIT	02/20/14		47,630		52,004		53,414		1,410		—
EUR		CIT	02/20/14		17,524		23,937		24,107		170		—
EUR		CIT	02/20/14		230,311		309,363		316,833		7,470		—
GBP		HSB	02/20/14		44,223		72,387		73,207		820		—
JPY		CIT	02/20/14		90,283,166		909,025		857,492		—		51,533
KZT		CIT	05/12/14		9,044,640		57,100		57,294		194		—
MXN		HSB	02/20/14		629,382		47,787		48,017		230		—
RUB		HSB	02/20/14		1,969,436		59,242		59,420		178		—
SEK		CAN	02/20/14		173,977		26,110		27,027		917		—
SGD		SSB	02/20/14		10,697		8,568		8,477		—		91
Total Forward Currency Purchase Contracts						$	1,589,368	$	1,548,951	$	11,389	$	51,806
Forward Currency Sale Contracts
AUD		CAN	02/20/14		20,999	$	19,041	$	18,691	$	350	$	—
AUD		CAN	02/20/14		245,163		226,984		218,216		8,768		—
BRL		CAN	01/31/14		168,525		75,691		70,928		4,763		—
CAD		RBC	02/20/14		178,398		169,969		167,744		2,225		—
DKK		CSF	02/20/14		199,625		35,894		36,826		—		932
EUR		CIT	02/20/14		57,496		78,246		79,096		—		850
EUR		CIT	02/20/14		84,881		114,016		116,769		—		2,753
GBP		HSB	02/20/14		137,763		220,367		228,054		—		7,687
JPY		CIT	02/20/14		7,279,372		73,293		69,138		4,155		—
JPY		CIT	02/20/14		12,240,528		119,200		116,258		2,942		—
JPY		CIT	02/20/14		12,870,923		123,700		122,246		1,454		—
MXN		HSB	02/20/14		638,217		49,000		48,691		309		—
MXN		HSB	02/20/14		1,201,415		91,219		91,659		—		440
NOK		HSB	02/20/14		865,563		139,454		142,453		—		2,999
NZD		CAN	02/20/14		276,805		227,174		226,918		256		—
PEN		CIT	01/31/14		174,615		62,777		62,135		642		—
PLN		HSB	02/20/14		266,370		84,680		87,906		—		3,226
Total Forward Currency Sale Contracts						$	1,910,705	$	1,903,728		25,864		18,887
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts										$	37,253	$	70,693

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

Annual Report 23

   The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2013

(a)	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, 2013 which may step up at a future date.
(b)	Security collateralized by an amount sufficient to pay principal and interest.
(c)	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)
US Short Duration Fixed Income	$	64,877,735	$	198,462	$	37,510	$	160,952
US Corporate Income		166,784,131		8,796,972		630,110		8,166,862
Global Fixed Income		5,586,752		112,859		174,606		(61,747	)

(d) 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, 2013. The percentage of net assets are as follows:

Portfolio	Percentage of Net Assets
US Corporate Income		26.5%
Global Fixed Income		1.6

(e) The Portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts.

Currency Abbreviations:
AUD	—	Australian Dollar	JPY	—	Japanese Yen
BRL	—	Brazilian Real	KZT	—	Kazakhstan Tenge
CAD	—	Canadian Dollar	MXN	—	Mexican New Peso
CHF	—	Swiss Franc	NOK	—	Norwegian Krone
CLP	—	Chilean Peso	NZD	—	New Zealand Dollar
CNY	—	Chinese Renminbi	PEN	—	Peruvian Nuevo Sol
COP	—	Colombian Peso	PLN	—	Polish Zloty
DKK	—	Danish Krone	RUB	—	Russian Ruble
EUR	—	Euro	SEK	—	Swedish Krona
GBP	—	British Pound Sterling	SGD	—	Singapore Dollar
ILS	—	Israeli Shekel	USD	—	United States Dollar
Counterparty Abbreviations:
CAN	—	Canadian Imperial Bank of Commerce	HSB	—	HSBC Bank USA
CIT	—	Citibank NA	RBC	—	Royal Bank of Canada
CSF	—	Credit Suisse Group AG	SSB	—	State Street Bank and Trust Co.

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

24 Annual Report

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

Industry Lazard
Global Fixed
Income
Portfolio

Aerospace & Defense	2.9	%
Alcohol & Tobacco	0.8
Automotive	2.7
Banking	1.4
Building Materials	0.3
Cable Television	1.2
Consumer Products	0.7
Electric	2.0
Electric Generation	0.4
Energy Exploration & Production	2.2
Energy Integrated	1.4
Energy Services	0.5
Financial Services	5.7
Food & Beverages	1.2
Gaming	0.5
Health Services	0.8
Metals & Mining	2.5
Packaging	0.5
Pharmaceutical & Biotechnology	0.5
Restaurants	0.4
Technology Hardware	1.1
Telecommunications	3.1
Transportation	1.3
Subtotal	34.1
Foreign Government Obligations	52.0
Supranationals	6.9
US Municipal Bonds	3.7
Short-Term Investment	2.3
Total Investments	99.0	%

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

Annual Report 25

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2013	Lazard US Short Duration Fixed Income Portfolio				Lazard US Corporate Income Portfolio				Lazard Global Fixed Income Portfolio
ASSETS
Investments in securities, at value		$	65,038,687			$	174,950,993			$	5,525,005
Foreign currency			—				—				2,220
Receivables for:
Interest			363,776				2,946,125				94,808
Capital stock sold			3,030,000				92,294				—
Amount due from Investment Manager (Note 3)			22,805				—				8,975
Gross unrealized appreciation on forward currency contracts			—				—				37,253
Total assets			68,455,268				177,989,412				5,668,261
LIABILITIES
Payables for:
Management fees			—				12,950				—
Accrued distribution fees			70				554				12
Accrued directors’ fees			91				272				9
Capital stock redeemed			7,812				136,540				56
Dividends			7,889				33,853				—
Gross unrealized depreciation on forward currency contracts			—				—				70,693
Other accrued expenses and payables			26,036				31,214				18,905
Total liabilities			41,898				215,383				89,675
Net assets		$	68,413,370			$	177,774,029			$	5,578,586
NET ASSETS
Paid in capital		$	68,474,306			$	175,715,418			$	5,699,773
Distributions in excess of net investment income			(96,446	)			(33,853	)			(22,169	)
Accumulated net realized loss			(129,764	)			(6,074,398	)			(5,075	)
Net unrealized appreciation (depreciation) on:
Investments			165,274				8,166,862				(61,747	)
Foreign currency and forward currency contracts			—				—				(32,196	)
Net assets		$	68,413,370			$	177,774,029			$	5,578,586
Institutional Shares
Net assets		$	68,085,518			$	175,154,121			$	5,522,186
Shares of capital stock outstanding*			6,787,754				34,990,674				580,570
Net asset value, offering and redemption price per share		$	10.03			$	5.01			$	9.51
Open Shares
Net assets		$	327,852			$	2,619,908			$	56,400
Shares of capital stock outstanding*			32,684				520,621				5,931
Net asset value, offering and redemption price per share		$	10.03			$	5.03			$	9.51
Cost of investments in securities		$	64,873,413			$	166,784,131			$	5,586,752
Cost of foreign currency		$	—			$	—			$	2,216

* $0.001 par value 5,400,000,000 shares authorized for the Portfolios in total.

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

26 Annual Report

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2013	Lazard US Short Duration Fixed Income Portfolio				Lazard US Corporate Income Portfolio				Lazard Global Fixed Income Portfolio
Investment Income
Income
Interest		$	503,535			$	11,986,199			$	173,585
Total investment income*			503,535				11,986,199				173,585
Expenses
Management fees (Note 3)			86,439				1,007,181				27,326
Administration fees			56,994				86,626				51,094
Professional services			47,912				78,936				46,228
Custodian fees			50,149				76,318				65,490
Registration fees			38,430				33,976				29,820
Shareholders’ services			28,074				27,858				26,489
Shareholders’ reports			4,031				20,636				4,283
Directors’ fees and expenses			3,494				8,066				165
Distribution fees (Open Shares)			483				7,500				136
Amortization of offering costs (Note 2(f))			—				—				30,875
Other†			10,518				9,880				939
Total gross expenses			326,524				1,356,977				282,845
Management fees waived and expenses reimbursed			(178,274	)			(340,766	)			(220,207	)
Administration fees waived			(9,375	)			—				(18,750	)
Total net expenses			138,875				1,016,211				43,888
Net investment income			364,660				10,969,988				129,697
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Forward Currency Contracts
Net realized gain (loss) on:
Investments**			(247,754	)			1,542,878				(6,540	)
Foreign currency and forward currency contracts			—				—				(214,542	)
Net change in unrealized appreciation (depreciation) on:
Investments			(58,328	)			(1,920,858	)			(231,105	)
Foreign currency and forward currency contracts			—				—				85,579
Net realized and unrealized loss on investments, foreign currency and forward currency contracts			(306,082	)			(377,980	)			(366,608	)
Net increase (decrease) in net assets resulting from operations		$	58,578			$	10,592,008			$	(236,911	)
* Net of foreign withholding taxes of		$	—			$	—			$	85
** Net of foreign capital gains taxes of		$	—			$	119,960			$	—
† Includes interest on line of credit of		$	16			$	1,572			$	64

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

Annual Report 27

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

		Lazard US Short Duration Fixed Income Portfolio
	Year Ended December 31, 2013				Year Ended December 31, 2012
Increase (Decrease) in Net Assets
Operations
Net investment income		$	364,660			$	245,864
Net realized gain (loss) on investments, foreign currency and forward currency contracts			(247,754	)			299,763
Net change in unrealized appreciation (depreciation) on investments, foreign currency and forward currency contracts			(58,328	)			(106,874	)
Net increase (decrease) in net assets resulting from operations			58,578				438,753
Distributions to shareholders
From net investment income
Institutional Shares			(363,417	)			(245,376	)
Open Shares			(1,243	)			(488	)
From net realized gains
Institutional Shares			(145,399	)			(69,717	)
Open Shares			(1,132	)			(15	)
From return of capital
Institutional Shares			—				—
Open Shares			—				—
Net decrease in net assets resulting from distributions			(511,191	)			(315,596	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			60,022,280				12,480,126
Open Shares			526,200				—
Net proceeds from reinvestment of distributions
Institutional Shares			409,379				263,941
Open Shares			2,368				503
Cost of shares redeemed
Institutional Shares			(11,620,537	)			(4,733,944	)
Open Shares			(204,084	)			(100,000	)
Net increase (decrease) in net assets from capital stock transactions			49,135,606				7,910,626
Redemption fees (Note 2(i))
Institutional Shares			3				5
Open Shares			—				—
Net increase in net assets from redemption fees			3				5
Total increase (decrease) in net assets			48,682,996				8,033,788
Net assets at beginning of period			19,730,374				11,696,586
Net assets at end of period*		$	68,413,370			$	19,730,374
* Includes undistributed (distributions in excess of) net investment income of		$	(96,446	)		$	(300	)
(a) The Portfolio commenced operations on March 30, 2012.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			1,913,691				1,132,905
Shares sold			5,968,576				1,212,766
Shares issued to shareholders from reinvestment of distributions			40,621				25,580
Shares redeemed			(1,135,134	)			(457,560	)
Net increase (decrease)			4,874,063				780,786
Shares outstanding at end of period			6,787,754				1,913,691
Open Shares
Shares outstanding at beginning of period			405				10,083
Shares sold			52,360				—
Shares issued to shareholders from reinvestment of distributions			236				49
Shares redeemed			(20,317	)			(9,727	)
Net increase (decrease)			32,279				(9,678	)
Shares outstanding at end of period			32,684				405

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

28 Annual Report

Lazard US Corporate Income Portfolio								Lazard Global Fixed Income Portfolio
Year Ended December 31, 2013			Year Ended December 31, 2012				Year Ended December 31, 2013				Period Ended December 31, 2012 (a)
$	10,969,988			$	12,027,385			$	129,697			$	72,075
	1,542,878				(812,130	)			(221,082	)			12,144
	(1,920,858	)			9,188,204				(145,526	)			51,583
	10,592,008				20,403,459				(236,911	)			135,802
	(10,798,604	)			(11,731,153	)			—				(27,809	)
	(171,384	)			(296,232	)			—				(227	)
	—				—				(6,049	)			—
	—				—				(54	)			—
	—				—				(122,444	)			(44,060	)
	—				—				(1,085	)			(360	)
	(10,969,988	)			(12,027,385	)			(129,632	)			(72,456	)
	34,204,684				73,510,534				2,134,814				7,859,060
	703,233				2,383,005				3,658				64,295
	9,819,017				10,032,308				127,668				71,235
	137,208				240,865				1,139				529
	(51,250,191	)			(60,171,868	)			(1,190,893	)			(3,179,754	)
	(2,459,966	)			(10,254,392	)			—				(9,970	)
	(8,846,015	)			15,740,452				1,076,386				4,805,395
	732				80				2				—
	—				321				—				—
	732				401				2				—
	(9,223,263	)			24,116,927				709,845				4,868,741
	186,997,292				162,880,365				4,868,741				—
$	177,774,029			$	186,997,292			$	5,578,586			$	4,868,741
$	(33,853	)		$	(109,177	)		$	(22,169	)		$	56,183
	36,441,591				31,644,633				473,673				—
	6,823,132				14,994,633				216,183				785,190
	1,961,687				2,035,775				13,253				7,030
	(10,235,736	)			(12,233,450	)			(122,539	)			(318,547	)
	(1,450,917	)			4,796,958				106,897				473,673
	34,990,674				36,441,591				580,570				473,673
	842,613				2,416,907				5,426				—
	139,453				490,550				387				6,374
	27,243				48,681				118				52
	(488,688	)			(2,113,525	)			—				(1,000	)
	(321,992	)			(1,574,294	)			505				5,426
	520,621				842,613				5,931				5,426

Annual Report 29

The Lazard Funds, Inc. Financial Highlights

LAZARD US SHORT DURATION FIXED INCOME PORTFOLIO

							For the Period
Selected data for a share of capital	Year Ended						2/28/11* to
stock outstanding throughout each period	12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	10.31		$	10.23		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.11			0.14			0.17
Net realized and unrealized gain (loss)		(0.25	)		0.12			0.27
Total from investment operations		(0.14	)		0.26			0.44
Less distributions from:
Net investment income		(0.11	)		(0.14	)		(0.17	)
Net realized gains		(0.03	)		(0.04	)		(0.04	)
Total distributions		(0.14	)		(0.18	)		(0.21	)
Redemption fees		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	10.03		$	10.31		$	10.23
Total Return (c)		–1.39	%		2.54	%		4.46	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	68,086		$	19,726		$	11,594
Ratios to average net assets (d):
Net expenses		0.40	%		0.40	%		0.40	%
Gross expenses		0.90	%		1.41	%		3.09	%
Net investment income		1.06	%		1.34	%		1.97	%
Portfolio turnover rate		161	%		77	%		60	%

							For the Period
Selected data for a share of capital	Year Ended						2/28/11* to
stock outstanding throughout each period	12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of period	$	10.31		$	10.23		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.06			0.14			0.14
Net realized and unrealized gain (loss)		(0.23	)		0.09			0.28
Total from investment operations		(0.17	)		0.23			0.42
Less distributions from:
Net investment income		(0.08	)		(0.11	)		(0.15	)
Net realized gains		(0.03	)		(0.04	)		(0.04	)
Total distributions		(0.11	)		(0.15	)		(0.19	)
Net asset value, end of period	$	10.03		$	10.31		$	10.23
Total Return (c)		–1.70	%		2.24	%		4.20	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	328		$	4		$	103
Ratios to average net assets (d):
Net expenses		0.70	%		0.70	%		0.70	%
Gross expenses		8.10	%		38.11	%		18.49	%
Net investment income		0.65	%		1.32	%		1.69	%
Portfolio turnover rate		161	%		77	%		60	%

*	The Portfolio commenced operations on February 28, 2011.
(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share
(c)	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.
(d)	Annualized for a period of less than one year.

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

30 Annual Report

LAZARD US CORPORATE INCOME PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of year	$	5.01		$	4.78		$	4.88		$	4.70		$	3.78
Income (loss) from investment operations:
Net investment income (a)		0.30			0.33			0.35			0.35			0.34
Net realized and unrealized gain (loss)		—	(b)		0.23			(0.10	)		0.18			0.92
Total from investment operations		0.30			0.56			0.25			0.53			1.26
Less distributions from:
Net investment income		(0.30	)		(0.33	)		(0.35	)		(0.35	)		(0.34	)
Total distributions		(0.30	)		(0.33	)		(0.35	)		(0.35	)		(0.34	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	5.01		$	5.01		$	4.78		$	4.88		$	4.70
Total Return (c)		6.17	%		12.02	%		5.17	%		11.78	%		34.66	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	175,154		$	182,749		$	151,278		$	112,427		$	87,568
Ratios to average net assets:
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Gross expenses		0.73	%		0.71	%		0.73	%		0.80	%		0.89	%
Net investment income		6.00	%		6.67	%		7.13	%		7.38	%		7.96	%
Portfolio turnover rate		22	%		26	%		27	%		25	%		17	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of year	$	5.04		$	4.80		$	4.90		$	4.73		$	3.79
Income (loss) from investment operations:
Net investment income (a)		0.29			0.32			0.33			0.34			0.33
Net realized and unrealized gain (loss)		(0.01	)		0.24			(0.10	)		0.17			0.94
Total from investment operations		0.28			0.56			0.23			0.51			1.27
Less distributions from:
Net investment income		(0.29	)		(0.32	)		(0.33	)		(0.34	)		(0.33	)
Total distributions		(0.29	)		(0.32	)		(0.33	)		(0.34	)		(0.33	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	5.03		$	5.04		$	4.80		$	4.90		$	4.73
Total Return (c)		5.64	%		11.89	%		4.89	%		11.19	%		34.40	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	2,620		$	4,249		$	11,602		$	26,266		$	6,126
Ratios to average net assets:
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Gross expenses		1.41	%		1.24	%		1.08	%		1.13	%		1.21	%
Net investment income		5.69	%		6.37	%		6.72	%		7.05	%		7.74	%
Portfolio turnover rate		22	%		26	%		27	%		25	%		17	%

(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	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.

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

Annual Report 31

LAZARD GLOBAL FIXED INCOME PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/13				For the Period 3/30/12* to 12/31/12
Institutional Shares
Net asset value, beginning of period		$	10.16			$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.23				0.17
Net realized and unrealized gain (loss)			(0.65	)			0.16
Total from investment operations			(0.42	)			0.33
Less distributions from:
Net investment income			—				(0.07	)
Net realized gains			(0.01	)			—
Return of capital			(0.22	)			(0.10	)
Total distributions			(0.23	)			(0.17	)
Redemption fees			—	(b)			—
Net asset value, end of period		$	9.51			$	10.16
Total Return (c)			–4.13	%			3.30	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	5,522			$	4,814
Ratios to average net assets (d):
Net expenses			0.80	%			0.80	%
Gross expenses			4.94	%			8.81	%
Net investment income			2.38	%			2.24	%
Portfolio turnover rate			66	%			47	%

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/13				For the Period 3/30/12* to 12/31/12
Open Shares
Net asset value, beginning of period		$	10.16			$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.20				0.15
Net realized and unrealized gain (loss)			(0.65	)			0.16
Total from investment operations			(0.45	)			0.31
Less distributions from:
Net investment income			—				(0.06	)
Net realized gains			(0.01	)			—
Return of capital			(0.19	)			(0.09	)
Total distributions			(0.20	)			(0.15	)
Net asset value, end of period		$	9.51			$	10.16
Total Return (c)			–4.41	%			3.08	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	56			$	55
Ratios to average net assets (d):
Net expenses			1.10	%			1.10	%
Gross expenses			28.86	%			26.46	%
Net investment income			2.09	%			2.02	%
Portfolio turnover rate			66	%			47	%

*	The Portfolio commenced operations on March 30, 2012.
(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	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.
(d)	Annualized for a period of less than one year.

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

32 Annual Report

 The Lazard Funds, Inc. Notes to Financial Statements December 31, 2013

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 twenty-five no-load portfolios (each referred to as a “Portfolio”), as follows: Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard Global Equity Select Portfolio (commenced investment operations on December 31, 2013), 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 Core Equity Portfolio (commenced investment operations on October 31, 2013), 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 Explorer Total Return Portfolio (commenced investment operations on June 28, 2013), Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio (formerly, Lazard International Realty Equity Portfolio), Lazard US Short Duration Fixed Income Portfolio (formerly, Lazard U.S. Municipal Portfolio), Lazard US Corporate Income Portfolio (formerly, Lazard U.S. High Yield Portfolio), Lazard Global Fixed Income Portfolio, Lazard Multi-Asset Targeted Volatility Portfolio, and Lazard Capital Allocator Opportunistic Strategies Portfolio. All Portfolios, other than the US Equity Concentrated Portfolio, the Emerging Markets Debt Portfolio, the Explorer Total Return Portfolio, the US Realty Equity Portfolio and the Global 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, 2013. This report includes only the financial statements of US Short Duration Fixed Income Portfolio, US Corporate Income Portfolio and Global Fixed Income Portfolio (the “Portfolios”). The financial statements of other portfolios are presented separately.

Effective November 29, 2013, the Fund commenced offering R6 Shares. Each Portfolio currently offers Institutional Shares and Open Shares, and certain Portfolios offer R6 Shares. Each share class is identical except as to minimum

investment requirements; eligibility requirements for R6 Shares; the services offered to, and expenses borne by, each class; and the availability of Service Payments (as defined in the Prospectus). As of December 31, 2013, no R6 Shares have been issued.

2. Significant Accounting Policies

The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Fund is an investment company and therefore applies specialized accounting guidance in Accounting Standards Codification Topic 946. The following is a summary of significant accounting policies:

(a) Valuation of Investments—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”). 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 (“NAV”).

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 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 portfolio managers/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 NAV 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

Annual Report 33

valued at their fair value as determined by, or in accordance with procedures approved by, the Board.

The effect of using fair value pricing is that the NAV 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’ NAVs.

(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. Interest income is accrued daily. The Portfolios amortize premiums and accrete discounts on fixed-income securities using the effective yield method.

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

The US 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.

During the year ended December 31, 2013, only the Global Fixed Income Portfolio traded in forward currency contracts.

(d) 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, 2013, the following Portfolios had unused realized capital losses which, for federal income tax purposes, could be used to offset future realized capital gains as follows:

Portfolio	Amount		Expiration Year
US Short Duration Fixed Income	$	125,443		N/A
US Corporate Income		728,156		2016
		5,346,242		2017

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

34 Annual Report

December 31, 2013, the following Portfolios elected to defer net capital and foreign currency losses arising between November 1, 2013 and December 31, 2013 as follows:

Portfolio	Amount
US Short Duration Fixed Income	$	50,494
Global Fixed Income		47,532

The Regulated Investment Company Modernization Act of 2010 (the “RIC Modernization Act”) includes numerous provisions that generally became effective for taxable years beginning after December 22, 2010. Among the 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 (2010-2012), or expected to be taken in the Portfolios’ 2013 tax returns.

(e) Dividends and Distributions—Each Portfolio intends to declare dividends from net investment income daily and to pay such dividends monthly. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Portfolios, if not distributed. The Portfolios intend to declare and distribute these amounts, at least annually, to shareholders; however, to avoid taxation, a second distribution may be required.

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 ended December 31, was as follows:

	Ordinary Income				Long-Term Capital Gain
Portfolio	2013		2012			2013		2012
US Short Duration Fixed Income
Institutional	$	443,969	$	61,069		$	64,409	$	7,407
Open		2,455		1,120			358		136
US Corporate Income
Institutional		10,790,080		11,731,153			—		—
Open		179,908		296,232			—		—
Global Fixed Income*
Institutional		—		27,809			6,043		—
Open		—		227			60		—

* Global Fixed Income Portfolio had $123,529 and $44,420 return of capital distributions for year 2013 and 2012, respectively.

As of December 31, 2013, the components of distributable earnings, on a tax basis, were as follows:

Portfolio	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation (Depreciation) Including Foreign Currency			Other Temporary Differences
US Short Duration Fixed Income		$—		$—	$	160,952		$	45,951
US Corporate Income		—		—		8,166,862			33,853
Global Fixed Income		—		—		(60,690	)		12,965

(f) Offering Costs—Costs 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.

(g) Allocation of Expenses—Expenses not directly chargeable to a specific Portfolio are allocated among all the portfolios of the Fund 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.

(h) 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

Annual Report 35

Operations report gross custody expenses, and report the amount of any credits separately as an expense reduction.

(i) Redemption Fee—The Portfolios, other than the US Short Duration Fixed Income 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 Statements of Changes in Net Assets.

(j) 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 Portfolios, 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
US Short Duration Fixed Income		0.25	%
US Corporate Income		0.55
Global Fixed Income		0.50

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
US Short Duration Fixed Income		0.40	%		0.70	%
US Corporate Income		0.55			0.85
Global Fixed Income		0.80			1.10

During the year ended December 31, 2013, the Investment Manager waived its management fees and reimbursed the Portfolios for other expenses as follows:

	Institutional Shares				Open Shares
Portfolio	Management  Fees Waived		Expenses Reimbursed		Management Fees Waived		Expenses Reimbursed
US Short Duration Fixed Income	$	85,960	$	78,216	$	479	$	13,619
US Corporate Income		323,941		—		16,554		271
Global Fixed Income		27,054		178,245		272		14,636

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 US Short Duration Fixed Income and Global Fixed Income Portfolios until each respective Portfolio’s net assets reach $25 million. During the year ended December 31, 2013, State Street waived its fees as follows:

Portfolio	Amount
US Short Duration Fixed Income	$	9,375
Global Fixed Income		18,750

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

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

36 Annual Report

dustry 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 the first six months after a new Portfolio has commenced operations.

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, generally, divided among the Lazard Funds based on relative net assets. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement.

5. Securities Transactions and Transactions with Affiliates

Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2013 were as follows:

Portfolio	Purchases		Sales
US Short Duration Fixed Income	$	20,616,276	$	18,694,134
US Corporate Income		38,003,394		46,459,396
Global Fixed Income		4,244,467		3,498,172

	US Government Securities
Portfolio	Purchases		Sales
US Short Duration Fixed Income	$	74,336,030	$	36,636,856

For the year ended December 31, 2013, 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 arrears. During the year ended December 31, 2013, the Portfolios 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
US Short Duration Fixed Income	$	170,000	$	170,000		1.10	%		3
US Corporate Income		3,122,500		8,700,000		1.13			16
Global Fixed Income		144,071		220,000		1.15			14

* For days borrowings were outstanding.

7. Non-US Securities Investment Risks

The Global Fixed Income Portfolio invests, and the US Short Duration Fixed Income and US Corporate Income Portfolios may invest to a limited extent, in securities of foreign entities and in instruments denominated in foreign currencies which involve risks not typically associated with investments in US securities. A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as exposure to less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity.

Annual Report 37

In addition, investments denominated in currencies other than US dollars carry the risk that such currencies will decline in value relative to the US dollar and affect the value of these investments held in the Portfolios. Emerging market countries can generally have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries. The securities markets of emerging market countries have historically been extremely volatile. However, the capital markets in the US and internationally have experienced unprecedented volatility in recent years, causing significant declines in the value and liquidity of many securities. These market conditions may continue to worsen. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to investments denominated in emerging markets currencies.

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.

The following tables summarize the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2013:

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, 2013
US Short Duration Fixed Income Portfolio
Corporate Bonds	$	—	$	16,058,310	$	—	$	16,058,310
Municipal Bonds		—		5,537,001		—		5,537,001
US Government Securities		—		23,071,356		—		23,071,356
US Treasury Security		—		19,301,325		—		19,301,325
Short-Term Investment		1,070,695		—		—		1,070,695
Total	$	1,070,695	$	63,967,992	$	—	$	65,038,687

38 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, 2013
US Corporate Income Portfolio
Corporate Bonds	$	—	$	167,756,710		$	—	$	167,756,710
Short-Term Investment		7,194,283		—			—		7,194,283
Total	$	7,194,283	$	167,756,710		$	—	$	174,950,993
Global Fixed Income Portfolio
Assets:
Corporate Bonds	$	—	$	1,673,973		$	—	$	1,673,973
Foreign Government Obligations		—		2,898,238			—		2,898,238
Quasi Government Bonds		—		226,122			—		226,122
Supranationals		—		387,468			—		387,468
US Municipal Bonds		—		208,393			—		208,393
Short-Term Investment		130,811		—			—		130,811
Other Financial Instruments*
Forward Currency Contracts		—		37,253			—		37,253
Total	$	130,811	$	5,431,447		$	—	$	5,562,258
Liabilities:
Other Financial Instruments*
Forward Currency Contracts	$	—	$	(70,693	)	$	—	$	(70,693	)

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

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.

As of December 31, 2013, securities valued at $460,912, $9,100,911 and $29,424 were transferred from Level 2 to Level 1 for the US Short Duration Fixed Income, US Corporate Income and Global Fixed Income Portfolios, respectively. The short-term investments were transferred from Level 2 to Level 1 based on increased reliance on the NAV of an open-end mutual fund as being representative of an active market price. There were no other transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 2013. Transfers between levels are recognized at the beginning of the reporting period.

For further information regarding security characteristics see Portfolios of Investments.

10. Derivative Instruments

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

Global Fixed Income Portfolio 

During the year ended December 31, 2013, the notional amounts of purchases and sales of forward currency contracts were $18,791,962 and $18,622,842, respectively.

The following table summarizes its fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2013:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	37,253
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	70,693

Annual Report 39

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2013 was:

		Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized loss on forward currency contracts	$	(217,580	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts	$	85,847

US Short Duration Fixed Income and US Corporate Income Portfolios did not trade in derivatives during the year ended December 31, 2013.

See Note 2(c) and the Portfolios of Investments for additional disclosures about derivative instruments.

On January 31, 2013, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (“ASU 2013-01”). ASU 2013-01 limits the scope of balance sheet offsetting disclosures, which was originally described in FASB ASU 2011-11, to derivatives, repurchase or reverse repurchase agreements, and securities borrowing or securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement.

As of December 31, 2013, the Global Fixed Income Portfolio holds derivative instruments that are eligible for offset in the Statement of Assets and Liabilities and are subject to master netting arrangements. A master netting arrangement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as any cash collateral, through single payment in the event of default on or termination of any one contract.

The required information for the affected Portfolio is presented in the below table, as of December 31, 2013:

Global Fixed Income Portfolio

Description	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Assets and Liabilities		Net Amounts of Assets Presented in the Statement of Assets and Liabilities
Forward Currency Contracts	$	37,253	$	—	$	37,253

	Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Assets Presented in Statement of Assets and Liabilities		Financial Instruments			Collateral Received		Net Amount
Canadian Imperial Bank of Commerce	$	15,054	$	(182	)	$	—	$	14,872
Citibank NA		18,437		(18,437	)		—		—
HSBC Bank USA		1,537		(1,537	)		—		—
Royal Bank of Canada		2,225		—			—		2,225
Total	$	37,253	$	(20,156	)	$	—	$	17,097

40 Annual Report

Description	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Assets and Liabilities		Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities
Forward Currency Contracts	$	70,693	$	—	$	70,693

	Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Liabilities Presented in Statement of Assets and Liabilities		Financial Instruments			Collateral Pledged		Net Amount
Canadian Imperial Bank of Commerce	$	182	$	(182	)	$	—	$	—
Citibank NA		55,136		(18,437	)		—		36,699
Credit Suisse Group AG		932		—			—		932
HSBC Bank USA		14,352		(1,537	)		—		12,815
State Street Bank and Trust Co.		91		—			—		91
Total	$	70,693	$	(20,156	)	$	—	$	50,537

11. Accounting Standards Update

In June 2013, the FASB issued ASU No. 2013-08 Financial Services — Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. This ASU clarifies the characteristics of an investment company, provides comprehensive guidance to determine whether an entity is an investment company and sets certain measurement and disclosure requirements. This ASU is effective for interim and annual periods in the fiscal years that begin after

December 15, 2013. The Investment Manager does not expect that the adoption of this standard will have a material impact on the financial statements.

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 41

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

Report of Independent Registered Public Accounting Firm

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 Lazard US Short Duration Fixed Income Portfolio (formerly known as Lazard U.S. Municipal Portfolio), Lazard US Corporate Income Portfolio (formerly known as Lazard U.S. High Yield Portfolio), and Lazard Global Fixed Income Portfolio (commenced operations on March 30, 2012) (each individually a “Portfolio”) which are three of the Portfolios constituting The Lazard Funds, Inc. (the “Fund”) as of December 31, 2013 and the related statements of operations for the year 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 date noted above to De-cember 31, 2013 and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2013, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights as stated above present fairly, in all material respects, the financial position of each of the Portfolios of The Lazard Funds, Inc. listed above as of December 31, 2013, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended or from the date noted in the first paragraph above to December 31, 2013 and the financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America.

ANCHIN, BLOCK & ANCHIN LLP

New York, New York
February 28, 2014

42 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 (68)	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 (51)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
		TIAA-CREF Funds (59 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)
Leon M. Pollack (73)	Director (August 2006)	Private Investor
Richard Reiss, Jr. (69)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (66)	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 (53)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (53)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present)
		Lazard Ltd, Vice Chairman and Director (2010 – present)

(1)	The address of each Director of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each Director also serves as a Director for each of the Lazard Funds (comprised of, as of January 31, 2014, 31 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) are also board members of Lazard Alternative Strategies 1099 Fund, a closed-end registered management investment company 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, or online, at www.LazardNet.com.

Annual Report 43

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 (41)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Stephen St. Clair (55)	Treasurer (May 2003)	Vice President of the Investment Manager
Brian D. Simon (51)	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 (38)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President and Counsel) of the Investment Manager
Cesar A. Trelles (39)	Assistant Treasurer (December 2004)	Vice President (since February 2011, previously Fund Administration Manager) of the Investment Manager

(1)	The address of each officer of the Fund 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.

44 Annual Report

The Lazard Funds, Inc. Tax and Other Information (unaudited)

Tax Information

Year ended December 31, 2013

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2013:

Of the dividends paid by the Portfolios, none are qualified dividend income.

Of the dividends paid by the Portfolios, no dividends qualify for the dividends received deduction available to corporate shareholders.

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 US nonresident shareholders.

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.

Annual Report 45

NOTES

NOTES

NOTES

The Lazard Funds, Inc.
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
http://www.LazardNet.com

Investment Manager
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300

Distributor
Lazard Asset Management Securities LLC
30 Rockefeller Plaza
New York, New York 10112-6300

Custodian
State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Transfer Agent and Dividend Disbursing Agent
Boston Financial Data Services, Inc.
P.O. Box 8514
Boston, Massachusetts 02266-8514
Telephone: 800-986-3455

Independent Registered Public Accounting Firm 
Anchin, Block & Anchin LLP
1375 Broadway
New York, New York 10018
http://www.anchin.com

Legal Counsel 
Stroock & Stroock & Lavan LLP
180 Maiden Lane
New York, New York 10038-4982
http://www.stroock.com

 

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

Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardnet.com
LZDPS026

Lazard Funds Annual Report
December 31, 2013

Asset Allocation Fund

Lazard Capital Allocator Opportunistic Strategies Portfolio

   The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overview
5	Performance Overview
6	Information About Your Portfolio’s Expenses
7	Portfolio Holdings Presented by Sector
8	Portfolio of Investments
8	Lazard Capital Allocator Opportunistic Strategies Portfolio
9	Notes to Portfolio of Investments
10	Statement of Assets and Liabilities
11	Statement of Operations
12	Statements of Changes in Net Assets
13	Financial Highlights
14	Notes to Financial Statements
22	Report of Independent Registered Public Accounting Firm
23	Board of Directors and Officers Information
25	Tax and Other Information

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

The year 2013 was one of many contrasts. Some records were set, with US equities reaching new highs, while US bond returns were negative for the first time in more than a decade. Equities globally made good headway, led by a surge in developed-market stocks, which significantly outpaced their emerging-market counterparts during the year. Markets in the United States, Japan, and Europe did well, with returns in the low double digits fueled by accommodative central bank policy and signs of healing in their respective economies.

Bond markets were subdued in comparison to a strong 2012, amid expectations of higher long-term interest rates. Meanwhile, emerging markets equity and debt weakened over concerns about widening current account deficits in the developing world. From a global perspective, corporate profitability and balance sheets remain strong and we anticipate that the operating backdrop for companies will continue to improve.

We are also pleased to inform you of a change to the format of the Lazard Funds’ annual and semiannual reports. Beginning this year-end, we will be reporting on the Lazard Funds through a set of five reports grouped by asset class. This allows us to increase ease of access to fund information for our shareholders and reduce production costs.

As always, at Lazard Asset Management, we remain focused on active management and 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 investment 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 Overview

Capital Allocator

The year 2013 proved to be one of transition, as the post-crisis period of intense economic uncertainty and depressed stock valuations receded and, after a number of false starts in recent years, a seemingly sustainable global economic recovery ensued. The recovery in the United States has now broadened, although it remains lackluster compared to historical norms. In Europe, Mario Draghi’s July 2012 pledge to do “whatever it takes” continued to support confidence, and GDP growth has broadly stabilized, with most forecasting modest growth in the region in 2014. Fears of a Chinese hard landing dissipated throughout the year, particularly after the Third Plenary resolution assured investors that the government intends to implement reforms. On the negative side, equity markets declined globally after US Federal Reserve (the Fed) Chairman Ben Bernanke suggested, late in the second quarter, that the Fed may start to scale back on its bond purchases. In particular, the emerging markets were affected by the “taper talk”. However, global investors ultimately cheered the Fed’s December announcement that it would reduce its monthly bond purchases by $10 billion, as the decision underscored Fed officials’ belief that the country’s economic recovery was sustainable.

The US interest rate environment began to normalize following the Fed’s discussions surrounding tapering and its ultimate decision to reduce its quantitative easing programs. This normalization is already reflected in market movements of longer-dated US Treasuries, which have begun to revert back to trading on the fundamentals of the US economy with regard to inflation expectations (which remain muted) and related volatility. However, interest rates in the short- and intermediate-duration areas of the fixed-income market continue to reflect the extraordinary monetary policy measures enacted by the Fed, and appear expensive.

Lazard Capital Allocator Opportunistic Strategies Portfolio

For the year ended December 31, 2013, the Lazard Capital Allocator Opportunistic Strategies Portfolio’s Institutional Shares posted a total return of 12.22%, while Open Shares posted a total return of 11.90%. The benchmark returns for the year ended December 31, 2013 were 26.68% for the Morgan Stanley Capital International (MSCI^®) World^® Index and 14.55% for the Global Asset Allocation Blended Index.¹

Thematic investments, which represented 61% of the Portfolio as of December 31, 2013, underperformed the MSCI World Index, but outperformed the Global Asset Allocation Blended Index. Positive returns were generated by equity investments in US financials, a hedged position in Japan, and a global basket of stocks focused on gaming companies. These returns were somewhat offset by underperformance from an investment in Chinese equities. The use of derivatives helped performance for the year in thematic investments, as two custom baskets of securities created via swaps—one focused on companies with high free cash flows, and one focused on companies that have historically outperformed in times of rising US consumption—added to returns. The positions in US financials, hedged Japan, Chinese equities, and the two custom baskets were sold during the year.

Diversifying investments, which represented 31% of the Portfolio at the end of the year, underperformed the benchmarks. The main detractors were positions in gold and Build America Bonds. Equity exposure to global consumer staples helped performance in the sector. We exited the positions in gold and Build America Bonds during the year.

Contrarian investments, which represented 3% of the Portfolio as of the end of the year, underperformed the MSCI World Index, but outperformed the Global Asset Allocation Blended Index. Exposure to gold mining companies and equity exposure to Russia detracted from returns, but were mitigated by strong gains from a position in US information technology equities. The use of derivatives helped performance overall for the year in the contrarian investments. An option to buy shares of China Construction Bank slightly detracted, but was offset by positive performance from a custom basket of securities created via a swap that focused on exporting companies in the euro zone periphery. The positions in gold mining companies and Russia, as well the option and the custom basket, were sold during the year.

Discounted investments, which represented 5% of the Portfolio as of December 31, 2013, outperformed the benchmarks. A European small-cap equity closed-end fund was the main contributor in the sector, while a Mexican equity closed-end fund slightly detracted from performance.

Annual Report 3

Notes to Investment Overview:

All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by Lazard Asset Management LLC, the Portfolio’s investment manager (the “Investment Manager”); without such waiver/reimbursement of expenses, the Portfolio’s 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, 2013; 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 the 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 the 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 the Portfolio’s summary prospectus for a more detailed discussion of the Portfolio’s investment objective, strategies, risks and fees.

¹ The Global Asset Allocation Blended Index is rebalanced quarterly and is a blended index constructed by the Portfolio’s Investment Manager, composed of 60% MSCI World Index and 40% Barclays Capital US Aggregate Bond^® Index.

4 Annual Report

   The Lazard Funds, Inc. Performance Overview

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, 2013

	Institutional Shares						Open Shares
	One		Five		Since		One		Five		Since
	Year		Years		Inception†		Year		Years		Inception†
Capital Allocator Opportunistic Strategies Portfolio**	12.22	%	10.47	%	4.04	%	11.90	%	10.11	%	3.80	%
MSCI World Index	26.68	%	15.02	%	4.75	%	26.68	%	15.02	%	4.84	%
Global Asset Allocation Blended Index	14.55	%	11.21	%	5.30	%	14.55	%	11.21	%	5.35	%

*	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 Index and 40% Barclays Capital US Aggregate Bond® Index. The Barclays Capital US Aggregate Bond Index covers the investment grade, US 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.

Annual Report 5

   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, 2013 through December 31, 2013 and held for the entire period.

Actual Expenses

For each Share class of the Portfolio, 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 Portfolio, 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 7/1/13	Ending Account Value 12/31/13	Expenses Paid During Period* 7/1/13 - 12/31/13	Annualized Expense Ratio During Period 7/1/13 - 12/31/13
Capital Allocator Opportunistic Strategies
Institutional Shares
Actual	$1,000.00	$1,126.66	$5.47	1.02%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.06	$5.19	1.02%
Open Shares
Actual	$1,000.00	$1,125.73	$7.07	1.32%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.55	$6.72	1.32%

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

6 Annual Report

   The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2013

Sector*	Lazard Capital Allocator Opportunistic Strategies Portfolio
Consumer Discretionary		11.0	%
Consumer Staples		7.5
Energy		5.8
Financials		7.6
Health Care		8.5
Industrials		14.1
Information Technology		9.7
Materials		3.6
Telecommunication Services		1.1
Utilities		1.0
Fixed Income		15.6
Short-Term Investment		14.5
Total Investments		100.0	%

* Represents percentage of total investments.

Annual Report 7

   The Lazard Funds, Inc. Portfolio of Investments December 31, 2013

Description	Shares		Value
Lazard Capital Allocator Opportunistic Strategies Portfolio
Exchange-Traded Funds | 80.2%
Health Care Select Sector SPDR Fund		84,700	$	4,695,768
iShares 20+ Year Treasury Bond Fund ETF		220,300		22,439,758
iShares Global Consumer Staples ETF		131,800		11,346,662
iShares Global Industrials ETF		218,500		15,603,085
iShares MSCI Germany ETF		438,400		13,923,584
iShares MSCI Japan ETF		763,000		9,255,190
iShares MSCI Japan Small-Cap ETF		103,000		5,590,428
iShares MSCI South Korea Capped ETF		207,000		13,386,690
iShares MSCI United Kingdom ETF		367,700		7,677,576
iShares North American Technology ETF		83,500		7,483,270
iShares U.S. Healthcare Providers ETF		50,900		4,746,425
Market Vectors-Gaming ETF		105,400		5,628,360
PowerShares Buyback Achievers Portfolio		389,300		16,771,044
PowerShares Dynamic Oil & Gas Services Portfolio		349,100		9,020,744
Robo-Stox Global Robotics & Automation Index ETF		132,500		3,623,875
SPDR Barclays Short Term High Yield Bond ETF		364,600		11,251,556
Vanguard Russell 2000 Growth ETF		116,800		11,491,952
Total Exchange-Traded Funds (Identified cost $162,279,403)				173,935,967

Description	Shares		Value
Closed-End Management Investment Companies | 4.9%
JPMorgan European Smaller Companies Trust PLC		417,000	$	7,899,676
Mexico Equity and Income Fund, Inc.		182,500		2,715,600
Total Closed-End Management Investment Companies (Identified cost $7,941,329)				10,615,276
Short-Term Investment | 14.5%
State Street Institutional Treasury Money Market Fund (Identified cost $31,368,949)		31,368,949		31,368,949
Total Investments | 99.6%
(Identified cost $201,589,681) (a)			$	215,920,192
Cash and Other Assets in Excess of Liabilities | 0.4%				856,901
Net Assets | 100.0%			$	216,777,093

Total Return Swap Agreement open at December 31, 2013:

Currency	Counterparty	Notional Amount (000)	Expiration Date	Pay	Receive	Unrealized Appreciation
USD	GSC	9,893	05/20/14	1 Month USD LIBOR plus 0.45%	Appreciation, and dividends paid, on securities in a basket of domestic equity securities		$318,054

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

8 Annual Report

   The Lazard Funds, Inc. Notes to Portfolio of Investments December 31, 2013

(a) For federal income tax purposes, the aggregate cost was $204,727,809, aggregate gross unrealized appreciation was $12,947,997, aggregate gross unrealized depreciation was $1,437,560, and the net unrealized appreciation was $11,510,437.

Abbreviations:

ETF	— Exchange-Traded Fund
GSC	— Goldman Sachs Group AG
LIBOR	— London Interbank Offered Rate
USD	— United States Dollar

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

Annual Report 9

   The Lazard Funds, Inc. Statement of Assets and Liabilities

December 31, 2013	Lazard Capital Allocator Opportunistic Strategies Portfolio
ASSETS
Investments in securities, at value		$	215,920,192
Receivables for:
Dividends and interest			550,407
Capital stock sold			234,254
Gross unrealized appreciation on swap agreement			318,054
Total assets			217,022,907
LIABILITIES
Payables for:
Management fees			161,593
Capital stock redeemed			48,314
Accrued distribution fees			547
Accrued directors’ fees			350
Premium for swap agreement written			2,222
Other accrued expenses and payables			32,788
Total liabilities			245,814
Net assets		$	216,777,093
NET ASSETS
Paid in capital		$	205,812,942
Distributions in excess of net investment income			(3,429,018	)
Accumulated net realized loss			(255,827	)
Net unrealized appreciation on:
Investments			14,330,511
Foreign currency			431
Swap agreement			318,054
Net assets		$	216,777,093
Institutional Shares
Net assets		$	214,161,128
Shares of capital stock outstanding*			20,912,934
Net asset value, offering and redemption price per share		$	10.24
Open Shares
Net assets		$	2,615,965
Shares of capital stock outstanding*			255,504
Net asset value, offering and redemption price per share		$	10.24
Cost of investments in securities		$	201,589,681

* $0.001 par value 5,400,000,000 shares authorized for the Portfolios in total.

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

10 Annual Report

   The Lazard Funds, Inc. Statement of Operations

For the Year Ended December 31, 2013	Lazard Capital Allocator Opportunistic Strategies Portfolio
Investment Income
Income
Dividends		$	4,323,764
Interest			446
Total investment income			4,324,210
Expenses
Management fees (Note 3)			2,266,608
Administration fees			95,333
Professional services			59,953
Custodian fees			56,515
Shareholders’ services			31,098
Registration fees			28,132
Shareholders’ reports			12,271
Distribution fees (Open Shares)			7,173
Directors’ fees and expenses			6,877
Other†			13,321
Total gross expenses			2,577,281
Management fees waived			(256,745	)
Total net expenses			2,320,536
Net investment income			2,003,674
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Forward Currency Contracts, Options and Swap Agreements
Net realized gain (loss) on:
Investments			12,177,984
Foreign currency and forward currency contracts			523,451
Purchased options			(35,210	)
Swap agreements			1,632,644
Net change in unrealized appreciation on:
Investments			9,462,763
Foreign currency and forward currency contracts			30,527
Swap agreements			329,375
Net realized and unrealized gain on investments, foreign currency, forward currency contracts, options and swap agreements			24,121,534
Net increase in net assets resulting from operations		$	26,125,208
† Includes interest on line of credit of		$	2,249

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

Annual Report 11

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

	Lazard Capital Allocator Opportunistic Strategies Portfolio
		Year Ended			Year Ended
		December 31,			December 31,
		2013			2012
Increase (Decrease) in Net Assets
Operations
Net investment income		$	2,003,674		$	2,849,308
Net realized gain on investments, foreign currency, forward currency contracts, options and swap agreements			14,298,869			3,977,250
Net change in unrealized appreciation on investments, foreign currency, forward currency contracts, options and swap agreements			9,822,665			14,414,375
Net increase in net assets resulting from operations			26,125,208			21,240,933
Distributions to shareholders
From net investment income
Institutional Shares			(9,658,755	)		(1,741,480	)
Open Shares			(105,748	)		(14,988	)
From net realized gains
Institutional Shares			(10,495,960	)		—
Open Shares			(122,735	)		—
Net decrease in net assets resulting from distributions			(20,383,198	)		(1,756,468	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			38,927,488			42,720,549
Open Shares			565,093			357,130
Net proceeds from reinvestment of distributions
Institutional Shares			19,042,016			705,622
Open Shares			219,942			13,997
Cost of shares redeemed
Institutional Shares			(74,468,014	)		(96,362,264	)
Open Shares			(1,336,706	)		(3,788,199	)
Net decrease in net assets from capital stock transactions			(17,050,181	)		(56,353,165	)
Redemption fees (Note 2(j))
Institutional Shares			3,612			7,632
Net increase in net assets from redemption fees			3,612			7,632
Total decrease in net assets			(11,304,559	)		(36,861,068	)
Net assets at beginning of year			228,081,652			264,942,720
Net assets at end of year*		$	216,777,093		$	228,081,652
* Includes undistributed (distributions in excess of) net investment income of		$	(3,429,018	)	$	11,254
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year			22,422,647			27,954,774
Shares sold			3,776,598			4,341,367
Shares issued to shareholders from reinvestment of distributions			1,880,973			70,775
Shares redeemed			(7,167,284	)		(9,944,269	)
Net decrease			(1,509,713	)		(5,532,127	)
Shares outstanding at end of year			20,912,934			22,422,647
Open Shares
Shares outstanding at beginning of year			308,937			660,085
Shares sold			55,083			36,305
Shares issued to shareholders from reinvestment of distributions			21,717			1,404
Shares redeemed			(130,233	)		(388,857	)
Net decrease			(53,433	)		(351,148	)
Shares outstanding at end of year			255,504			308,937

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

12 Annual Report

   The Lazard Funds, Inc. Financial Highlights

LAZARD CAPITAL ALLOCATOR OPPORTUNISTIC STRATEGIES PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of year	$	10.03		$	9.26		$	9.96		$	8.80		$	7.36
Income (loss) from investment operations:
Net investment income (a)		0.09			0.11			0.12			0.12			0.14
Net realized and unrealized gain (loss)		1.12			0.74			(0.45	)		1.16			1.42
Total from investment operations		1.21			0.85			(0.33	)		1.28			1.56
Less distributions from:
Net investment income		(0.48	)		(0.08	)		(0.13	)		(0.12	)		(0.12	)
Net realized gains		(0.52	)		—			(0.24	)		—			—
Total distributions		(1.00	)		(0.08	)		(0.37	)		(0.12	)		(0.12	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	10.24		$	10.03		$	9.26		$	9.96		$	8.80
Total Return (c)		12.22	%		9.16	%		-3.28	%		14.58	%		21.21	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	214,161		$	224,982		$	258,832		$	239,403		$	195,939
Ratios to average net assets:
Net expenses		1.02	%		1.02	%		1.02	%		1.02	%		1.02	%
Gross expenses		1.13	%		1.12	%		1.13	%		1.13	%		1.16	%
Net investment income		0.89	%		1.13	%		1.25	%		1.36	%		1.72	%
Portfolio turnover rate		193	%		139	%		155	%		117	%		113	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of year	$	10.03		$	9.26		$	9.97		$	8.80		$	7.37
Income (loss) from investment operations:
Net investment income (a)		0.06			0.07			0.08			0.06			0.12
Net realized and unrealized gain (loss)		1.12			0.75			(0.45	)		1.20			1.41
Total from investment operations		1.18			0.82			(0.37	)		1.26			1.53
Less distributions from:
Net investment income		(0.45	)		(0.05	)		(0.10	)		(0.09	)		(0.10	)
Net realized gains		(0.52	)		—			(0.24	)		—			—
Total distributions		(0.97	)		(0.05	)		(0.34	)		(0.09	)		(0.10	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	10.24		$	10.03		$	9.26		$	9.97		$	8.80
Total Return (c)		11.90	%		8.84	%		-3.72	%		14.35	%		20.71	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	2,616		$	3,099		$	6,111		$	7,163		$	16,856
Ratios to average net assets:
Net expenses		1.32	%		1.32	%		1.32	%		1.32	%		1.32	%
Gross expenses		1.84	%		1.67	%		1.57	%		1.52	%		1.44	%
Net investment income		0.60	%		0.69	%		0.77	%		0.66	%		1.44	%
Portfolio turnover rate		193	%		139	%		155	%		117	%		113	%

(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	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.

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

Annual Report 13

   The Lazard Funds, Inc. Notes to Financial Statements December 31, 2013

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 twenty-five no-load portfolios (each referred to as a “Portfolio”), as follows: Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard Global Equity Select Portfolio (commenced investment operations on December 31, 2013), 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 Core Equity Portfolio (commenced investment operations on October 31, 2013), 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 Explorer Total Return Portfolio (commenced investment operations on June 28, 2013), Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio (formerly, Lazard International Realty Equity Portfolio), Lazard US Short Duration Fixed Income Portfolio (formerly, Lazard U.S. Municipal Portfolio), Lazard US Corporate Income Portfolio (formerly, Lazard U.S. High Yield Portfolio), Lazard Global Fixed Income Portfolio, Lazard Multi-Asset Targeted Volatility Portfolio, and Lazard Capital Allocator Opportunistic Strategies Portfolio. All Portfolios, other than the US Equity Concentrated Portfolio, the Emerging Markets Debt Portfolio, the Explorer Total Return Portfolio, the US Realty Equity Portfolio and the Global 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, 2013. This report includes only the financial statements of Capital Allocator Opportunistic Strategies Portfolio (the “Portfolio”). The financial statements of other portfolios are presented separately.

Effective November 29, 2013, the Fund commenced offering R6 Shares. Each Portfolio currently offers Institutional Shares and Open Shares, and certain Portfolios offer R6 Shares. Each share class is identical except as to minimum investment requirements; eligibility requirements for R6

Shares; the services offered to, and expenses borne by, each class; and the availability of Service Payments (as defined in the Prospectus). As of December 31, 2013, no R6 Shares have been issued.

2. Significant Accounting Policies

The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Fund is an investment company and therefore applies specialized accounting guidance in Accounting Standards Codification Topic 946. 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 US 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. 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 (“NAV”).

The Valuation Committee of the Investment Manager, which meets periodically under the direction of the Board of Directors (the “Board”), may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Investment Manager’s portfolio managers/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 NAV is calculated, or when current market quota-

14 Annual Report

tions 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 effect of using fair value pricing is that the NAV of the 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’ NAVs.

(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 Portfolio may be subject to taxes imposed by foreign countries in which it invests. Such taxes are generally based upon income earned or capital gains (realized or unrealized). The Portfolio accrues and applies 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) Foreign Currency Translation and Forward Currency Contracts—The accounting records of the Portfolio is maintained in US dollars. Portfolio securities and other assets and liabilities denominated in a foreign currency are translated daily into US dollars at the prevailing rates of exchange. Purchases and sales of securities, income receipts and expense payments are translated into US dollars at the prevailing exchange rates on the respective transaction dates.

The Portfolio does 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 cur-

rency 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 the Portfolio’s accounting records and the US 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 US dollar.

The US 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.

(d) Options Transactions—For hedging and investment purposes, the Portfolio may purchase and write (sell) put and call options that are traded on US and non-US securities exchanges and over-the-counter markets.

The risk associated with purchasing an option is that the Portfolio pays a premium whether or not the option is exercised. Additionally, the Portfolio will not benefit from exercise of an option 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 Portfolio at a disadvantageous price. Put and call options purchased are accounted for in the same manner as portfolio securities and other assets. When the Portfolio writes an option, the premium received by the Portfolio is recorded as a liability and is subsequently adjusted to the current market value of the option written.

Annual Report 15

During the year ended December 31, 2013, transactions in options purchased were as follows:

Purchased Options	Number of Contracts			Cost
Options outstanding at beginning of year	—		$	—
Options purchased	6,500			35,210
Options expired	(6,500	)		(35,210	)
Options outstanding at end of year	—		$	—

(e) Swap Agreements—Swap agreements on equity securities 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 Portfolio will receive a payment from (or make a payment to) the counterparty.

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 Portfolio’s accompanying Statement of Assets and Liabilities.

During the year ended December 31, 2013, the Portfolio traded in swap agreements with an average notional amount, which is indicative of the volume for the year, of $11,911,027.

(f) Federal Income Taxes—The Fund’s policy is to continue to have the 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, 2013, the Portfolio had no unused realized capital losses which, for federal income tax purposes, could be used to offset future realized capital gains.

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, 2013, the Portfolio elected to defer net capital and foreign currency losses arising between November 1, 2013 and December 31, 2013 of $202,118.

The Regulated Investment Company Modernization Act of 2010 (the “RIC Modernization Act”) includes numerous provisions that generally became effective for taxable years beginning after December 22, 2010. Among the 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 Portfolio’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2010-2012), or expected to be taken in the Portfolio’s 2013 tax returns.

(g) Dividends and Distributions—Dividends from net investment income, if any, on shares of the Portfolio will be declared and paid annually. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Portfolio, if not distributed. The Portfolio intends 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 for the Portfolio during the years ended December 31, was as follows:

	Ordinary Income				Long-Term Capital Gain
Shares		2013		2012		2013		2012
Institutional	$	16,973,416	$	1,418,514	$	3,152,954	$	307,373
Open		216,594		25,135		40,234		5,446

16 Annual Report

As of December 31, 2013, the components of distributable earnings, on a tax basis, were as follows:

		Net Unrealized
Undistributed	Undistributed	Appreciation	Other
Ordinary	Long-Term	Including Foreign	Temporary
Income	Capital Gain	Currency	Differences
$—	$—	$11,510,868	$344,599

(h) Allocation of Expenses—Expenses not directly chargeable to the Portfolio are allocated among all the portfolios of the Fund primarily on the basis of relative net assets. The Portfolio accrues distribution and service (12b-1) fees to its Open Shares. The 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.

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

(j) Redemption Fee—The 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 the Portfolio and are included as paid in capital on its Statement of Assets and Liabilities. The fees are also shown on its Statements of Changes in Net Assets.

(k) 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 the Portfolio with investment research, advice and supervision and furnishes continuously an investment program for the Portfolio consistent with its investment objective

and policies, including the purchase, retention and disposition of securities. For its services provided to the Portfolio, the Investment Manager earns a management fee, accrued daily as a percentage of its average daily net assets and payable by the Portfolio monthly, at the annual rate of 1.00%.

The Investment Manager has voluntarily agreed to reduce its fees and, if necessary, reimburse the Portfolio if annualized operating expenses exceed 1.02% and 1.32% of average daily net assets for the Institutional Shares and Open Shares, respectively.

During the year ended December 31, 2013, the Investment Manager waived its management fees of $241,917 and $14,828 for the Institutional Shares and Open Shares, respectively.

The Fund has entered into an administration agreement with State Street Bank and Trust Company (“State Street”) to provide certain administrative services to the Portfolio. The 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.

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 the 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, the Portfolio pays a monthly fee to the Distributor, at an annual rate of 0.25% of the average daily net assets of its Open Shares, for distribution and servicing of accounts. The Distributor may make payments to certain financial institutions, securities dealers and other industry professionals for providing these services.

Boston Financial Data Services, Inc. (“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 the Portfolio, and is reimbursed for certain out-of-pocket expenses.

Annual Report 17

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, generally, divided among the Lazard Funds based on relative net assets. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement.

5. Securities Transactions and Transactions with Affiliates

Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2013 were $375,950,352 and $402,791,046, respectively.

For the year ended December 31, 2013, 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

arrears. During the year ended December 31, 2013, the Portfolio had borrowings under the Agreement as follows:

	Maximum	Weighted	Number of
Average Daily	Daily Loan	Average	Days Borrowings
Loan Balance*	Outstanding	Interest Rate	Were Outstanding
$9,985,714	$12,900,000	1.16%	7

* For days borrowings were outstanding.

7. Non-US Securities Investment Risks

The Portfolio invests in securities of foreign entities and in instruments denominated in foreign currencies which involve risks not typically associated with investments in US securities. The Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as exposure to less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity. In addition, investments denominated in currencies other than US dollars carry the risk that such currencies will decline in value relative to the US dollar and affect the value of these investments held in the Portfolio. Emerging market countries can generally have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries. The securities markets of emerging market countries have historically been extremely volatile. However, the capital markets in the US and internationally have experienced unprecedented volatility in recent years, causing significant declines in the value and liquidity of many securities. These market conditions may continue to worsen. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to investments denominated in emerging markets currencies.

8. Contractual Obligations

The Fund enters into contracts in the normal course of business that contain a variety of indemnifications. The 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 Disclo-

18 Annual Report

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

significant to the overall fair value measurement. The three-level hierarchy of inputs is summarized below.

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

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

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

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

The following table summarizes the valuation of the Portfolio’s investments by each fair value hierarchy level as of December 31, 2013:

	Unadjusted
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Investments		Inputs		Inputs		Balance as of
Description	(Level 1)		(Level 2)		(Level 3)		December 31, 2013
Assets:
Exchange-Traded Funds	$	173,935,967	$	—	$	—	$	173,935,967
Closed-End Management Investment Companies		10,615,276		—		—		10,615,276
Short-Term Investment		31,368,949		—		—		31,368,949
Other Financial Instruments*
Total Return Swap Agreement		—		318,054		—		318,054
Total	$	215,920,192	$	318,054	$	—	$	216,238,246

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

The swap agreement included in Level 2 was valued by an independent pricing service.

As of December 31, 2013, securities valued at $37,897,561 were transferred from Level 2 to Level 1. The short-term investments were transferred from Level 2 to Level 1 based on increased reliance on the NAV of an open-end mutual fund as being representative of an active market price. There were no other transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 2013. Transfers between levels are recognized at the beginning of the reporting period.

For further information regarding security characteristics see Portfolio of Investments.

10. Derivative Instruments

The Portfolio 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,

Annual Report 19

possibly at a lower cost to the Portfolio than if the Portfolio had invested directly in the asset that yielded the desired return.

During the year ended December 31, 2013, the notional amounts of purchases and sales of forward currency contracts were $10,362,140 and $10,129,045, respectively.

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2013:

	Fair Value
Asset Derivatives
Equity Risk:
Gross unrealized appreciation on total return swap agreement	$	318,054

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2013 was:

		Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Equity Risk:
Net realized loss on purchased options	$	(35,210)
Net realized gain on total return swap agreements	$	1,632,644
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Equity Risk:
Net change in unrealized appreciation on total return swap agreements	$	329,375

Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts	$	30,006

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

On January 31, 2013, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (“ASU 2013-01”). ASU 2013-01 limits the scope of balance sheet offsetting disclosures, which was originally described in FASB ASU 2011-11, to derivatives, repurchase or reverse repurchase agreements, and securities borrowing or securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement.

As of December 31, 2013, the Portfolio holds derivative instruments that are eligible for offset in the Statement of Assets and Liabilities and are subject to master netting arrangements. A master netting arrangement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as any cash collateral, through single payment in the event of default on or termination of any one contract.

The required information for the Portfolio is presented in the below table, as of December 31, 2013:

		Gross Amounts	Net Amounts of
		Offset in the	Assets Presented
	Gross Amounts	Statement of	in the Statement
	of Recognized	Assets and	of Assets and
Description	Assets	Liabilities	Liabilities
Total Return Swap Agreement	$318,054	$    —	$318,054

		Gross Amounts Not Offset in the Statement of Assets and Liabilities
	Net Amounts of
	Assets Presented in
	Statement of Assets and	Financial	Collateral
Counterparty	Liabilities	Instruments	Received	Net Amount
Goldman Sachs Group AG	$318,054	$    —	$    —	$318,054

20 Annual Report

11. Accounting Standards Update

In June 2013, the FASB issued ASU No. 2013-08 Financial Services—Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. This ASU clarifies the characteristics of an investment company, provides comprehensive guidance to determine whether an entity is an investment company and sets certain measurement and disclosure requirements. This ASU is effective for interim and annual periods in the fiscal years that begin after

December 15, 2013. The Investment Manager does not expect that the adoption of this standard will have a material impact on the financial statements.

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 21

   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

Report of Independent Registered Public Accounting Firm

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

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Lazard Capital Allocator Opportunistic Strategies Portfolio (the “Portfolio”) which is one of the Portfolios constituting The Lazard Funds, Inc. (the “Fund”) as of December 31, 2013 and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2013, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights as stated above present fairly, in all material respects, the financial position of the Portfolio of The Lazard Funds, Inc. listed above as of December 31, 2013, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America.

ANCHIN, BLOCK & ANCHIN LLP

New York, New York
February 28, 2014

22 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 (68)	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 (51)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
		TIAA-CREF Funds (59 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)
Leon M. Pollack (73)	Director (August 2006)	Private Investor
Richard Reiss, Jr. (69)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (66)	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 (53)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (53)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present)
		Lazard Ltd, Vice Chairman and Director (2010 – present)

(1)	The address of each Director of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each Director also serves as a Director for each of the Lazard Funds (comprised of, as of January 31, 2014, 31 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) are also board members of Lazard Alternative Strategies 1099 Fund, a closed-end registered management investment company 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, or online, at www.LazardNet.com.

Annual Report 23

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 (41)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Stephen St. Clair (55)	Treasurer (May 2003)	Vice President of the Investment Manager
Brian D. Simon (51)	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 (38)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President and Counsel) of the Investment Manager
Cesar A. Trelles (39)	Assistant Treasurer (December 2004)	Vice President (since February 2011, previously Fund Administration Manager) of the Investment Manager

(1)	The address of each officer of the Fund 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.

24 Annual Report

   The Lazard Funds, Inc. Tax and Other Information (unaudited)

Tax Information
Year Ended December 31, 2013

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2013:

Of the dividends paid by the Portfolio, 10.69% of the dividends are qualified dividend income.

Of the dividends paid by the Portfolio, 3.77% of the dividends qualify for the dividends received deduction available to corporate shareholders.

Pursuant to Section 871 of the Code, the Portfolio has no designated qualified short-term gains for purposes of exempting withholding of tax on such distributions to US nonresident shareholders.

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.

Annual Report 25

NOTES

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NOTES

NOTES

The Lazard Funds, Inc.

30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
http://www.LazardNet.com

Investment Manager

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

Distributor

Lazard Asset Management Securities LLC
30 Rockefeller Plaza
New York, New York 10112-6300

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Transfer Agent and Dividend Disbursing Agent

Boston Financial Data Services, Inc.
P.O. Box 8514
Boston, Massachusetts 02266-8514
Telephone: 800-986-3455

Independent Registered Public Accounting Firm

Anchin, Block & Anchin LLP
1375 Broadway
New York, New York 10018
http://www.anchin.com

Legal Counsel

Stroock & Stroock & Lavan LLP
180 Maiden Lane
New York, New York 10038-4982
http://www.stroock.com

 

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

Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardnet.com

LZDPS030  

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 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. 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 $816,400 in 2012 and $877,800 in 2013.

(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 $174,250 in 2012 and $193,600 in 2013. 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 $174,250 in 2012 and $193,600 in 2013. There were no fees billed in the Reporting Periods by the Auditor to Service Affiliates.

(h) Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. INVESTMENTS

Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

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

ITEM 11. CONTROLS AND PROCEDURES.

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

accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

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

ITEM 12. EXHIBITS.

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

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

(a)(3)    Not applicable.

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

SIGNATURES

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

The Lazard Funds, Inc.

By	/s/ Charles L. Carroll
	Charles L. Carroll
	Chief Executive Officer

Date March 11, 2014

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, 2014

By	/s/ Stephen St. Clair
	Stephen St. Clair
	Chief Financial Officer

Date March 11, 2014