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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number     811-06312

The Lazard Funds, Inc.
(Exact name of registrant as specified in charter)

30 Rockefeller Plaza

New York, New York 10112

(Address of principal executive offices)          (Zip code)

Nathan A. Paul, Esq.

Lazard Asset Management LLC

30 Rockefeller Plaza

New York, New York 10112
(Name and address of agent for service)

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

Date of fiscal year end:	12/31
Date of reporting period:	6/30/14

Item 1. Reports to Stockholders.

Lazard Funds Semi-Annual Report

June 30, 2014

Real Asset Funds

Lazard Global Listed Infrastructure Portfolio

Lazard US Realty Income Portfolio

Lazard US Realty Equity Portfolio

Lazard Global Realty Equity Portfolio

   The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
6	Performance Overviews
10	Information About Your Portfolio’s Expenses
12	Portfolio Holdings Presented by Sector
13	Portfolios of Investments
13	Lazard Global Listed Infrastructure Portfolio
15	Lazard US Realty Income Portfolio
16	Lazard US Realty Equity Portfolio
17	Lazard Global Realty Equity Portfolio
19	Notes to Portfolios of Investments
20	Statements of Assets and Liabilities
22	Statements of Operations
24	Statements of Changes in Net Assets
26	Financial Highlights
30	Notes to Financial Statements
39	Board of Directors and Officers Information
41	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 the investment objectives, risks, charges, expenses and other information about Portfolios of the Fund, which is not detailed in this report.

Distributed by Lazard Asset Management Securities LLC.

Semi-Annual Report  1

   The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

During the first half of 2014, global equity markets rose steadily in comparison to a strong 2013. Stocks were somewhat volatile in the beginning of the year as investors were concerned that the US Federal Reserve (the “Fed”) might begin to raise interest rates sooner than previously expected. Regardless, broad market gains were recorded across North America, Europe, and Asia. Emerging-market equities recovered from a difficult 2013 due to an improving economic environment and despite growth concerns in China and negative market movements from the Russia-Ukraine crisis.

Global fixed-income markets performed well as interest rates declined and despite the ongoing tapering by the Fed. Emerging-market debt posted strong returns, supported by the credit-easing measures taken by the European Central Bank and the ongoing accommodative stance by the Fed.

As always, at Lazard Asset Management, we remain focused on active management and are committed to leveraging our strengths in pursuing the Portfolios’ investment objectives so that you, a valued shareholder in Lazard Funds, may 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  Semi-Annual Report

   The Lazard Funds, Inc. Investment Overviews

Global Listed Infrastructure

After a subdued start to 2014, global equity markets rose more steadily over the second quarter, with markets rising steadily each month as long US treasury yields fell sharply in April and May before rising in June. The infrastructure market, as represented by the UBS Global 50/50 Infrastructure & Utilities^® Index (Hedged), performed well during the first half of the year, rising 13.25%. Following the Fed’s announcement in December 2013, the Fed began tapering asset purchases by US$10 billion each month starting in January 2014, with buying down to US$35 billion in June. US markets ended the first half of the year positively, while in Europe the European Central Bank delivered a package of easing measures to fend off the threat of deflation. After producing its first positive month for the year in May, the Japanese market continued to rise and finished the first half of the year as the best-performing developed market as Japan’s Prime Minister Shinzō Abe fired his “third arrow” of economic reforms.

Real Estate Securities

Amid a global backdrop of improving economic growth, moderately rising interest rates, capital markets volatility, and region-specific geopolitical risk, global property stocks (represented by the FTSE EPRA/NAREIT Global^® Index) rose 10.98% during the first half of 2014, outperforming the broader global equity market (represented by the Morgan Stanley Capital International (MSCI^®) All Country World^® Index). Among major countries representing at least 3% of the FTSE EPRA/NAREIT Global Index, property companies in Australia and the United States were the strongest regional performers. By the same criteria, Chinese and Japanese property companies were the worst performers during the period. Among the smaller market-cap countries, India and Italy were strongest, while Taiwan and Austria were weakest.

US commercial real estate fundamentals and capital markets remained healthy; demand was steady, driven by modest job and GDP growth while new supply growth remained at modest levels. This led to small but consistent rent and occupancy gains, resulting in organically driven continued earnings growth exceeding the rate of inflation, and a modest increase in real estate asset prices. While new supply emerged in the multifamily, lodging, and health care sectors and warranted careful monitoring, demand continued to keep pace. Investor demand for yield worked to drive dividend yields and borrowing costs to multi-year lows. Real

estate investment trust (REIT) access to debt, preferred equity, and common equity markets remained abundant, allowing companies to maintain leverage at reasonable levels.

In the Asia Pacific region, Chinese residential developers remained exposed to rising inventory levels, weakening sales volumes, and price cuts. However, the central government has started to soften its stance toward the sector by allowing local governments to ease property restrictions and loosen liquidity at the margin. In Australia, REITs with active property management platforms drove earnings growth through a combination of acquisition and development opportunities. Singapore continued to experience downside risks with regard to residential pricing, as well as retail and office rents. Japan continued to benefit from an enhancement in existing government and monetary stimulus.

In Europe, the United Kingdom continued to experience a steady uptick in capital inflows to real estate while continental Europe experienced a mean reversion across all regions and property types. In Latin America, Mexican real estate remained on a strong footing despite some near-term macro pressures, while Brazil continues to trade at discounted valuations amid the short-term macro and political instability in the region.

Lazard Global Listed Infrastructure Portfolio

For the six months ended June 30, 2014, the Lazard Global Listed Infrastructure Portfolio’s Institutional Shares posted a total return of 14.00%, while Open Shares posted a total return of 13.83%, as compared with the 13.25% return for the UBS Global 50/50 Infrastructure & Utilities Index (Hedged) and 6.18% return for the MSCI World^® Index.

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.

Italian shares were the beneficiaries of a further decline of Italian sovereign bond yields, with the Italian 10-year government bond falling from 4.1% to 3.3% in the first quarter of 2014. The contributions to performance were also compounded by confirmation of improvements in the operations of core motorways in the Portfolio’s Italian toll roads. Atlantia performed well in May, as this Italian toll road company released strong first-quarter earnings.

Semi-Annual Report  3

Tokyo Gas performed strongly in June after the company announced its decision to retire 2.8% of its outstanding shares in mid-July, having bought back the stock in May and June. Another top performer over the first half of 2014 was Australian company, DUET Group. The major news story for DUET was the announcement by fellow Australian listed utility stock Spark Infrastructure that it had acquired an interest of a minimum of 14.1% in DUET.

Fraport’s share price fell, after disappointing the market with its reported retail revenue per passenger figure in its 2013 result, which detracted from performance. Osaka Gas (which was sold during the period) also detracted from performance over the period as the company failed to improve shareholder returns to international standards despite ample balance sheet strength.

Lazard US Realty Income Portfolio

For the six months ended June 30, 2014, the Lazard US Realty Income Portfolio’s Institutional Shares posted a total return of 16.36%, while Open Shares posted a total return of 16.25%, as compared with the 15.66% blended index return for the 50% FTSE NAREIT All Equity REITs^® Index/50% Wells Fargo Hybrid and Preferred Securities REIT^® Index (the “Hybrid Index”).

The Portfolio outperformed its benchmark due entirely to security selection. During the period, the Portfolio was invested, on average, 71% in common stocks, 25% in preferred stocks, and the remainder in cash and bond positions. Both the Portfolio’s common and preferred stocks modestly outperformed their respective benchmarks.

In terms of relative performance, the Portfolio was helped by an overweight position in Realty Income, a triple-net REIT, which benefited from property acquisitions completed ahead of investor expectations. Also helping the Portfolio was an overweight position to STAG Industrial, an industrial REIT, as it had better-than-expected acquisition volume and 2014 earnings guidance; and an overweight position to BioMed Realty, a life-science REIT, which benefited from better-than-expected leasing activity.

An overweight position in Campus Crest, a student-housing REIT, hurt performance as it underperformed due to disappointing 2014 earnings guidance and failure by management

to consummate a key acquisition. Other detractors from relative performance included an overweight position in Mack-Cali Realty, an office and apartment REIT, whose shares suffered following multiple dividend cuts and a slow, poorly-communicated change in the company’s strategy; and an overweight to American Realty Capital, a triple-net REIT, which underperformed as investors doubted a few of the company’s large acquisitions.

Lazard US Realty Equity Portfolio

For the six months ended June 30, 2014, the Lazard US Realty Equity Portfolio’s Institutional Shares posted a total return of 15.95%, while Open Shares posted a total return of 15.77%, as compared with the 16.25% return for the FTSE NAREIT All Equity REITs Index.

In terms of relative performance, the Portfolio benefited from an overweight position in Apartment Investment & Management, an apartment REIT, whose shares were helped by strong apartment fundamentals in virtually all of its key markets. Also helping the Portfolio was an overweight position in Essex Property Trust, an apartment REIT, which benefited from strong apartment fundamentals and the consummation of a major acquisition; and an underweight position in American Realty Capital, a triple-net REIT, whose shares suffered as investors doubted large acquisitions that the company executed.

An overweight position in Realogy Holdings, a single-family housing broker, hurt performance as its shares retreated on investors’ fears that higher interest rates would slow existing single-family home sales. Other detractors from relative performance included an overweight position in Mack-Cali Realty (which was sold during the period), an office and apartment REIT, whose shares suffered following multiple dividend cuts and a slow, poorly-communicated change in the company’s strategy; and an overweight position in Retail Opportunity Investments, a shopping-center REIT, which underperformed following the completion of a secondary equity offering.

Lazard Global Realty Equity Portfolio

For the six months ended June 30, 2014, the Lazard Global Realty Equity Portfolio’s Institutional Shares posted a total return of 10.90%, while Open Shares posted a total return of

4  Semi-Annual Report

10.72%, as compared with the 10.98% return for the FTSE EPRA/NAREIT Global Index.

Stock selection, country allocation, and currency were all positive contributors to relative performance.

In terms of relative performance, an overweight position in Hulic REIT, a diversified Japanese REIT with unique exposure to B-grade office, retail, nursing homes, and network centers, helped performance as its IPO was underpriced relative to peers. Also helping the Portfolio was an overweight position in Beni Stabili, an Italian office company, which benefited primarily from a well-executed and well-received recapitalization; and an underweight position in Mitsubishi Estate, a Japanese landlord and developer, which announced that defects were discovered in an apartment development, and a disappointing medium-term plan which highlighted a slow recovery in office rental earnings.

An overweight position in NTT Urban Development, a Japanese landlord and developer of office and residential buildings, hurt performance as it released below-market guidance for the fiscal year 2015 due to lower gains on property sales and tenant withdrawals. Other detractors from relative performance included an overweight position in Wharf Holdings, a Hong Kong retail landlord and China property developer, which was negatively influenced by a slowdown in Hong Kong retail sales and price cuts for its Chinese residential development projects; and an overweight to China Overseas Land & Investment (which was sold during the period), a Chinese residential property developer, which was affected by lower residential market volumes and pricing, despite announcing solid 2013 fiscal-year results and sales targets.

Notes to Investment Overviews:

All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of a Portfolio may have been waived or reimbursed by Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager”), State Street Bank and Trust Company, the Fund’s Administrator (“State Street”), or Boston Financial Data Services, Inc., the Fund’s transfer and dividend disbursing agent (“BFDS”); without such waiver/reimbursement of expenses, a Portfolio’s 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 June 30, 2014; 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 a 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 a 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 any 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.

Semi-Annual Report  5

   The Lazard Funds, Inc. Performance Overviews (unaudited)

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 June 30, 2014    

	One Year	Since Inception	†
Institutional Shares**	27.81%	13.79%
Open Shares**	27.41%	13.39%
UBS Global 50/50 Infrastructure & Utilities Index (Hedged)	22.92%	10.65%
MSCI World Index	24.05%	11.69%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or 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 free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. 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.

6  Semi-Annual Report

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 June 30, 2014          

	Institutional Shares			Open Shares
	One Year	Since Inception	†	One Year	Five Years	Since Inception	†
US Realty Income Portfolio**	10.04%	18.86%		9.65%	22.43%	13.47%
FTSE NAREIT All Equity REITs Index	13.02%	19.21%		13.02%	23.65%	7.83%
Wells Fargo Hybrid and Preferred Securities REIT Index	7.18%	8.73%		7.18%	16.51%	13.14%
Hybrid Index	10.17%	14.07%		10.17%	20.31%	11.11%
S&P 500 Index	24.60%	24.49%		24.60%	18.83%	9.81%

*	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 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.

Semi-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 June 30, 2014  

	Institutional Shares			Open Shares
	One Year	Since Inception	†	One Year	Five Years	Since Inception	†
US Realty Equity Portfolio**	12.38%	21.77%		12.13%	26.26%	24.72%
FTSE NAREIT All Equity REITs Index	13.02%	19.21%		13.02%	23.65%	18.45%

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

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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, FTSE EPRA/NAREIT Global ex-US/FTSE EPRA/NAREIT Global Linked Index (the “Global Realty Linked Index”) and FTSE EPRA/NAREIT Global ex-US^® Index*

 

Average Annual Total Returns*

Periods Ended June 30, 2014

	Institutional Shares			Open Shares
	One Year	Since Inception	†	One Year	Five Years	Since Inception	†
Global Realty Equity Portfolio**	15.08%	19.24%		14.69%	11.65%	19.86%
FTSE EPRA/NAREIT Global Index	11.70%	17.00%		11.70%	15.52%	15.60%
Global Realty Linked Index	14.45%	17.96%		14.45%	12.80%	15.54%
FTSE EPRA/NAREIT Global ex-US Index	11.69%	16.92%		11.69%	12.25%	15.03%

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

Semi-Annual Report  9

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

Expense Example

As a shareholder in a Portfolio of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from January 1, 2014 through June 30, 2014 and held for the entire period.

Actual Expenses

For each Share class of the Portfolios, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each Share class of the Portfolios, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total cost of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Portfolio	Beginning Account Value 1/1/14		Ending Account Value 6/30/14		Expenses Paid During Period* 1/1/14 - 6/30/14		Annualized Expense Ratio During Period 1/1/14 - 6/30/14
Global Listed Infrastructure
Institutional Shares
Actual	$	1,000.00	$	1,140.00	$	5.15		0.97	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.98	$	4.86		0.97	%
Open Shares
Actual	$	1,000.00	$	1,138.30	$	6.63		1.25	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.60	$	6.26		1.25	%
US Realty Income
Institutional Shares
Actual	$	1,000.00	$	1,163.60	$	5.26		0.98	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.93	$	4.91		0.98	%
Open Shares
Actual	$	1,000.00	$	1,162.50	$	6.70		1.25	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.60	$	6.26		1.25	%

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Portfolio	Beginning Account Value 1/1/14		Ending Account Value 6/30/14		Expenses Paid During Period* 1/1/14 - 6/30/14		Annualized Expense Ratio During Period 1/1/14 - 6/30/14
US Realty Equity
Institutional Shares
Actual	$	1,000.00	$	1,159.50	$	5.62		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.59	$	5.26		1.05	%
Open Shares
Actual	$	1,000.00	$	1,157.70	$	7.22		1.35	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.10	$	6.76		1.35	%
Global Realty Equity
Institutional Shares
Actual	$	1,000.00	$	1,109.00	$	6.01		1.15	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.09	$	5.76		1.15	%
Open Shares
Actual	$	1,000.00	$	1,107.20	$	7.58		1.45	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.60	$	7.25		1.45	%

* Expenses are equal to the annualized expense ratio of each Share class multiplied by the average account value over the period, multiplied by 181/365 (to reflect one-half year period).

Semi-Annual Report  11

   The Lazard Funds, Inc. Portfolio Holdings Presented by Sector June 30, 2014 (unaudited)

Sector*	Lazard Global Listed Infrastructure Portfolio			Lazard US Realty Income Portfolio			Lazard US Realty Equity Portfolio			Lazard Global Realty Equity Portfolio
Consumer Discretionary		—	%		—	%		2.8	%		2.3	%
Financials		—			96.0			94.5			96.2
Industrials		40.5			—			—			—
Materials		—			—			—			0.9
Telecommunication Services		9.4			—			—			—
Utilities		42.4			—			—			—
Short-Term Investments		7.7			4.0			2.7			0.6
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

12   Semi-Annual Report

   The Lazard Funds, Inc. Portfolios of Investments June 30, 2014 (unaudited)

Description	Shares		Value
Lazard Global Listed Infrastructure Portfolio
Common Stocks | 93.3%
Australia | 14.3%
DUET Group		22,379,665	$	51,069,012
Macquarie Atlas Roads Group		4,143,472		12,776,169
SP AusNet		26,434,993		33,028,100
Spark Infrastructure Group		19,088,409		33,298,906
Transurban Group		8,481,865		59,105,011
				189,277,198
Austria | 0.4%
Flughafen Wien AG		59,017		5,495,216
France | 11.5%
Aeroports de Paris		210,764		27,769,015
Eutelsat Communications SA		1,791,618		62,251,550
Vinci SA		842,831		63,013,245
				153,033,810
Germany | 2.7%
Fraport AG		512,275		36,195,248
Italy | 22.6%
ASTM SpA		834,619		13,211,277
Atlantia SpA		3,725,672		106,214,557
Hera SpA		11,275,103		32,113,124
Snam SpA		10,216,947		61,556,301
Societa Iniziative Autostradali e Servizi SpA		1,904,947		24,467,209
Terna SpA		11,783,675		62,153,521
				299,715,989
Japan | 9.8%
Toho Gas Co., Ltd.		4,249,350		23,363,980
Tokyo Gas Co., Ltd.		18,287,700		106,868,549
				130,232,529

Description	Shares		Value
Luxembourg | 4.8%
SES SA		1,668,070	$	63,269,258
South Korea | 0.5%
Macquarie Korea Infrastructure Fund		1,097,773		6,824,463
Switzerland | 1.8%
Flughafen Zuerich AG		39,003		23,970,044
United Kingdom | 3.4%
Pennon Group PLC		3,360,731		45,149,702
United States | 21.5%
Ameren Corp.		811,700		33,182,296
California Water Service Group		809,365		19,586,633
CSX Corp.		3,403,130		104,850,435
Norfolk Southern Corp.		584,837		60,255,756
PG&E Corp.		1,304,099		62,622,834
SJW Corp.		190,269		5,175,317
				285,673,271
Total Common Stocks (Identified cost $1,089,070,002)				1,238,836,728
Short-Term Investment | 7.8%
State Street Institutional Treasury Money Market Fund (Identified cost $103,804,457)		103,804,457		103,804,457
Total Investments | 101.1% (Identified cost $1,192,874,459) (b), (c)			$	1,342,641,185
Liabilities in Excess of Cash and Other Assets | (1.1)%				(15,081,819	)
Net Assets | 100.0%			$	1,327,559,366

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

Semi-Annual Report  13

Lazard Global Listed Infrastructure Portfolio (concluded)

Forward Currency Purchase Contracts open at June 30, 2014:

Currency	Counterparty	Expiration  Date	Foreign  Currency Amount		US $ Cost  on Origination  Date		US $  Current  Value		Unrealized  Appreciation			Unrealized  Depreciation
CHF	CSF	09/26/14		3,615,117	$	4,048,963	$	4,079,586		$	30,623	$	—
CHF	CSF	09/26/14		4,313,181		4,830,801		4,867,337			36,536		—
KRW	BRC	09/24/14		711,073,463		693,000		700,425			7,425		—
KRW	RBC	09/24/14		688,086,750		672,452		677,782			5,330		—
Total Forward Currency Purchase Contracts					$	10,245,216	$	10,325,130		$	79,914	$	—
Forward Currency Sale Contracts open at June 30, 2014:
AUD	BRC	09/26/14		33,440,792	$	31,201,930	$	31,342,081		$	—	$	140,151
AUD	CAN	09/26/14		21,544,869		20,104,810		20,192,735			—		87,925
AUD	CSF	09/26/14		11,931,159		11,130,221		11,182,372			—		52,151
AUD	CSF	09/26/14		59,066,170		55,101,059		55,359,237			—		258,178
AUD	HSB	09/26/14		31,345,029		29,245,068		29,377,846			—		132,778
AUD	RBC	09/26/14		34,687,532		32,360,346		32,510,578			—		150,232
CHF	BRC	09/26/14		2,543,814		2,849,094		2,870,642			—		21,548
CHF	CAN	09/26/14		4,345,449		4,867,214		4,903,750			—		36,536
CHF	CSF	09/26/14		23,791,082		26,646,226		26,847,753			—		201,527
EUR	BRC	09/26/14		59,364,861		80,933,717		81,314,441			—		380,724
EUR	CAN	09/26/14		69,660,075		94,981,513		95,416,212			—		434,699
EUR	CIT	09/26/14		52,980,050		72,229,027		72,568,909			—		339,882
EUR	CSF	09/26/14		35,190,736		47,979,754		48,202,169			—		222,415
EUR	HSB	09/26/14		34,537,040		47,085,728		47,306,775			—		221,047
EUR	RBC	09/26/14		61,207,326		83,432,931		83,838,141			—		405,210
EUR	RBC	09/26/14		77,328,084		105,407,458		105,919,392			—		511,934
GBP	BRC	09/26/14		10,966,534		18,641,572		18,754,788			—		113,216
GBP	CAN	09/26/14		1,290,583		2,193,810		2,207,134			—		13,324
GBP	HSB	09/26/14		4,564,871		7,759,413		7,806,768			—		47,355
GBP	RBC	09/26/14		8,318,831		14,140,765		14,226,730			—		85,965
JPY	BNY	09/26/14		3,221,258,288		31,574,154		31,817,232			—		243,078
JPY	BRC	09/26/14		794,360,478		7,785,024		7,846,111			—		61,087
JPY	CAN	09/26/14		1,154,149,268		11,311,862		11,399,842			—		87,980
JPY	CIT	09/26/14		1,251,043,402		12,259,482		12,356,891			—		97,409
JPY	CSF	09/26/14		1,893,435,032		18,554,721		18,701,966			—		147,245
JPY	HSB	09/26/14		1,330,343,393		13,038,811		13,140,158			—		101,347
JPY	HSB	09/26/14		2,893,642,664		28,360,843		28,581,284			—		220,441
KRW	BRC	09/24/14		1,513,199,761		1,475,429		1,490,539			—		15,110
KRW	BRC	09/24/14		1,775,345,170		1,731,199		1,748,758			—		17,559
KRW	CAN	09/24/14		1,321,089,591		1,287,863		1,301,306			—		13,443
KRW	CSF	09/24/14		665,285,396		649,122		655,322			—		6,200
KRW	HSB	09/24/14		1,316,167,329		1,283,440		1,296,457			—		13,017
KRW	RBC	09/24/14		2,011,736,376		1,961,330		1,981,609			—		20,279
Total Forward Currency Sale Contracts					$	919,564,936	$	924,465,928			—		4,900,992
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts										$	79,914	$	4,900,992

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

14  Semi-Annual Report

Description	Shares		Value
Lazard US Realty Income Portfolio
Common Stocks | 6.0%
Real Estate | 6.0%
Colony Financial, Inc.		243,743	$	5,659,712
CoreSite Realty Corp.		44,600		1,474,922
Plum Creek Timber Co., Inc.		31,700		1,429,670
Total Common Stocks (Identified cost $7,888,749)				8,564,304
Preferred Stocks | 23.0%
Real Estate | 23.0%
CBL & Associates Properties, Inc.,
Series E, 6.625%		60,000		1,498,800
DDR Corp.:
Series K, 6.250%		66,000		1,577,400
Series J, 6.500%		47,900		1,189,357
EPR Properties,
Series F, 6.625%		13,769		338,717
General Growth Properties, Inc.,
Series A, 6.375%		275,000		6,627,500
Glimcher Realty Trust 6.875%		160,000		4,008,000
Kimco Realty Corp.,
Series J, 5.500%		69,900		1,597,215
LaSalle Hotel Properties,
Series I, 6.375%		118,700		2,845,239
Pebblebrook Hotel Trust,
Series C, 6.500%		189,414		4,462,594
PS Business Parks, Inc.,
Series U, 5.750%		73,300		1,687,366
Regency Centers Corp.,
Series 7, 6.000%		16,342		387,796
Sun Communities, Inc.,
Series A, 7.125%		49,922		1,267,520
Taubman Centers, Inc.,
Series K, 6.250%		109,771		2,645,481
Vornado Realty Trust,
Series K, 5.700%		102,064		2,399,525
Weingarten Realty Investors,
Series F, 6.500%		14,052		352,986
Total Preferred Stocks (Identified cost $34,014,889)				32,885,496

Description	Shares		Value
Real Estate Investment Trusts | 66.1%
American Realty Capital Properties, Inc.		533,900	$	6,689,767
Apollo Commercial Real Estate Finance, Inc.		233,271		3,846,639
AvalonBay Communities, Inc.		19,500		2,772,705
BioMed Realty Trust, Inc.		287,030		6,265,865
Blackstone Mortgage Trust, Inc., Class A		54,600		1,583,400
Campus Crest Communities, Inc.		717,290		6,211,731
CBL & Associates Properties, Inc.		181,200		3,442,800
Digital Realty Trust, Inc.		115,100		6,712,632
Dynex Capital, Inc.		557,520		4,934,052
EPR Properties		96,289		5,379,666
Excel Trust, Inc.		186,000		2,479,380
First Potomac Realty Trust		308,026		4,041,301
Glimcher Realty Trust		263,100		2,849,373
HCP, Inc.		131,200		5,429,056
Home Properties, Inc.		27,000		1,726,920
LaSalle Hotel Properties		84,100		2,967,889
Mack-Cali Realty Corp.		258,400		5,550,432
Medical Properties Trust, Inc.		227,100		3,006,804
Pennsylvania Real Estate Investment Trust		151,300		2,847,466
Realty Income Corp.		27,900		1,239,318
Simon Property Group, Inc.		15,500		2,577,340
STAG Industrial, Inc.		80,900		1,942,409
Sun Communities, Inc.		106,051		5,285,582
Washington Prime Group, Inc.		7,750		145,235
WP Carey, Inc.		73,269		4,718,524
Total Real Estate Investment Trusts (Identified cost $96,119,095)				94,646,286
Short-Term Investment | 4.0%
State Street Institutional Treasury Money Market Fund (Identified cost $5,653,902)		5,653,902		5,653,902
Total Investments | 99.1% (Identified cost $143,676,635) (b)			$	141,749,988
Cash and Other Assets in Excess of Liabilities | 0.9%				1,326,718
Net Assets | 100.0%			$	143,076,706

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

Semi-Annual Report  15

Description	Shares		Value
Lazard US Realty Equity Portfolio
Common Stocks | 6.1%
Commercial Services | 2.5%
Realogy Holdings Corp. (a)		53,977	$	2,035,473
Leisure & Entertainment | 2.7%
Starwood Hotels & Resorts Worldwide, Inc.		28,042		2,266,354
Real Estate | 0.9%
Farmland Partners, Inc.		55,400		725,740
Total Common Stocks (Identified cost $5,122,526)				5,027,567
Real Estate Investment Trusts | 91.0%
Acadia Realty Trust		28,300		794,947
American Homes 4 Rent, Class A		144,356		2,563,763
American Realty Capital Properties, Inc.		275,105		3,447,066
American Tower Corp.		53,989		4,857,930
Apartment Investment & Management Co., Class A		100,937		3,257,237
AvalonBay Communities, Inc.		25,609		3,641,344
Boston Properties, Inc.		17,184		2,030,805
CBL & Associates Properties, Inc.		59,868		1,137,492
Crown Castle International Corp.		34,955		2,595,758
DDR Corp.		194,442		3,428,012
Digital Realty Trust, Inc.		31,984		1,865,307
Education Realty Trust, Inc.		194,417		2,088,039
Equity Lifestyle Properties, Inc.		26,147		1,154,651
Essex Property Trust, Inc.		17,532		3,241,842

Description	Shares		Value
Extra Space Storage, Inc.		27,394	$	1,458,730
First Potomac Realty Trust		156,456		2,052,703
Glimcher Realty Trust		202,096		2,188,700
HCP, Inc.		94,400		3,906,272
Kilroy Realty Corp.		25,570		1,592,500
Parkway Properties Inc.		46,111		952,192
Pebblebrook Hotel Trust		33,043		1,221,269
Prologis, Inc.		44,312		1,820,780
Public Storage		13,591		2,328,818
Retail Opportunity Investments Corp.		154,697		2,433,384
Simon Property Group, Inc.		50,370		8,375,524
SL Green Realty Corp.		9,937		1,087,207
Sunstone Hotel Investors, Inc.		94,996		1,418,290
Ventas, Inc.		55,952		3,586,523
Vornado Realty Trust		12,158		1,297,623
Weyerhaeuser Co.		68,634		2,271,099
Total Real Estate Investment Trusts (Identified cost $67,453,436)				74,095,807
Short-Term Investment | 2.7%
State Street Institutional Treasury Money Market Fund (Identified cost $2,166,583)		2,166,583		2,166,583
Total Investments | 99.8% (Identified cost $74,742,545) (b)			$	81,289,957
Cash and Other Assets in Excess of Liabilities | 0.2%				152,987
Net Assets | 100.0%			$	81,442,944

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

16  Semi-Annual Report

Description	Shares		Value
Lazard Global Realty Equity Portfolio
Common Stocks | 30.5%
Australia | 2.6%
Charter Hall Group		26,189	$	105,201
Goodman Group		32,439		154,471
				259,672
Brazil | 1.6%
Aliansce Shopping Centers SA		10,900		88,601
BR Properties SA		11,000		66,264
				154,865
Canada | 0.6%
First Capital Realty, Inc.		3,400		59,330
Hong Kong | 7.1%
Cheung Kong Holdings, Ltd.		9,000		159,553
Hang Lung Properties, Ltd.		17,000		52,423
Hongkong Land Holdings, Ltd.		22,000		146,740
Hysan Development Co., Ltd.		16,000		75,144
The Wharf Holdings, Ltd.		36,825		266,077
				699,937
India | 0.9%
DLF, Ltd.		26,435		94,255
Japan | 7.8%
Mitsubishi Estate Co., Ltd.		6,000		148,127
Mitsui Fudosan Co., Ltd.		9,000		303,480
NTT Urban Development Corp.		9,300		104,654
Sumitomo Realty & Development Co., Ltd.		5,000		214,550
				770,811
Malaysia | 0.2%
UEM Sunrise Berhad		35,400		22,380
Mexico | 0.9%
Corp Inmobiliaria Vesta SAB de CV		40,900		85,940
Norway | 0.3%
Norwegian Property ASA (a)		25,153		30,960
Philippines | 4.2%
Ayala Land, Inc.		298,065		208,270
Megaworld Corp.		1,965,959		202,676
				410,946
Thailand | 0.3%
Land and Houses Public Co. Ltd.		82,577		25,062

Description	Shares		Value
United Kingdom | 1.7%
Capital & Counties Properties PLC		29,985	$	167,137
United States | 2.3%
Realogy Holdings Corp. (a)		2,319		87,449
Starwood Hotels & Resorts Worldwide, Inc.		1,780		143,860
				231,309
Total Common Stocks (Identified cost $2,868,876)				3,012,604
Real Estate Investment Trusts | 67.9%
Australia | 3.7%
Charter Hall Retail REIT		15,333		56,098
Dexus Property Group		149,090		156,049
Scentre Group (a)		17,967		54,215
Westfield Corp.		14,420		97,221
				363,583
Brazil | 0.4%
Cyrela Commercial Properties SA Empreendimentos e Participacoes		5,000		41,865
Canada | 2.7%
Allied Properties Real Estate Investment Trust		2,185		72,386
Boardwalk Real Estate Investment Trust		3,133		191,612
				263,998
France | 5.6%
Fonciere des Regions		1,123		121,757
Gecina SA		1,019		148,601
Klepierre		3,407		173,616
Unibail-Rodamco SE		389		113,163
				557,137
Hong Kong | 0.9%
The Link REIT		16,019		86,188
Italy | 1.3%
Beni Stabili SpA		137,903		126,516
Japan | 4.3%
Hulic Reit, Inc.		69		109,591
Japan Logistics Fund, Inc.		25		59,301
Japan Real Estate Investment Corp.		14		81,536
Nippon Accommodations Fund, Inc.		18		68,230
Nippon Building Fund, Inc.		6		35,062
Premier Investment Corp.		17		67,627
				421,347

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

Semi-Annual Report  17

Description	Shares		Value
Lazard Global Realty Equity Portfolio (concluded)
Mexico | 0.8%
Asesor de Activos Prisma SAPI de CV		17,700	$	25,649
Fibra Uno Administracion SA de CV		15,600		54,700
				80,349
Singapore | 1.8%
CapitaMall Trust		50,000		79,197
Frasers Centrepoint Trust		67,925		103,230
				182,427
United Kingdom | 4.3%
Big Yellow Group PLC		22,743		193,055
Great Portland Estates PLC		15,046		165,828
SEGRO PLC		11,093		65,535
				424,418
United States | 42.1%
American Homes 4 Rent, Class A		8,198		145,596
American Realty Capital Properties, Inc.		19,100		239,323
American Tower Corp.		545		49,039
Apartment Investment & Management Co., Class A		3,714		119,851
AvalonBay Communities, Inc.		1,406		199,919
Boston Properties, Inc.		1,092		129,052
CBL & Associates Properties, Inc.		3,888		73,872
DDR Corp.		10,060		177,358
Digital Realty Trust, Inc.		2,471		144,109
Education Realty Trust, Inc.		11,988		128,751
Equity Lifestyle Properties, Inc.		1,700		75,072
Equity Residential		1,889		119,007
Essex Property Trust, Inc.		927		171,412
Extra Space Storage, Inc.		1,898		101,068
First Potomac Realty Trust		10,632		139,492
General Growth Properties, Inc.		4,251		100,154
Glimcher Realty Trust		12,330		133,534
HCP, Inc.		6,036		249,770
Kilroy Realty Corp.		1,569		97,717

Description	Shares		Value
Parkway Properties Inc.		3,261	$	67,340
Pebblebrook Hotel Trust		2,096		77,468
Prologis, Inc.		3,003		123,393
Public Storage		922		157,985
Retail Opportunity Investments Corp.		8,739		137,464
Simon Property Group, Inc.		3,071		510,646
SL Green Realty Corp.		635		69,475
Sunstone Hotel Investors, Inc.		6,022		89,908
Ventas, Inc.		3,078		197,300
Vornado Realty Trust		816		87,092
Washington Prime Group, Inc.		1,535		28,766
Weyerhaeuser Co.		862		28,524
				4,169,457
Total Real Estate Investment Trusts (Identified cost $5,951,561)				6,717,285
Closed-End Management Investment Company | 0.9%
United Kingdom | 0.9%
Kennedy Wilson Europe Real Estate PLC (Identified cost $91,223)		4,951		93,204
Short-Term Investment | 0.6%
State Street Institutional Treasury Money Market Fund (Identified cost $60,001)		60,001		60,001
Total Investments | 99.9% (Identified cost $8,971,661) (b)			$	9,883,094
Cash and Other Assets in Excess of Liabilities | 0.1%				12,801
Net Assets | 100.0%			$	9,895,895

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

18  Semi-Annual Report

   The Lazard Funds, Inc. Notes to Portfolios of Investments June 30, 2014 (unaudited)

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

Portfolio	Aggregate  Cost		Aggregate Gross  Unrealized  Appreciation		Aggregate Gross  Unrealized  Depreciation		Net Unrealized  Appreciation  (Depreciation)
Global Listed Infrastructure	$	1,192,874,459	$	150,034,116	$	267,390	$	149,766,726
US Realty Income		143,676,635		4,765,494		6,692,141		(1,926,647	)
US Realty Equity		74,742,545		7,110,722		563,310		6,547,412
Global Realty Equity		8,971,661		981,463		70,030		911,433

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

Security Abbreviation:
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:
BNY — Bank of New York Mellon Corp.	CSF — Credit Suisse Group AG
BRC — Barclays Bank PLC	HSB — HSBC Bank USA
CAN — Canadian Imperial Bank of Commerce	RBC — Royal Bank of Canada
CIT — Citibank NA

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

Industry*	Lazard  Global Listed  Infrastructure  Portfolio			Lazard  Global Realty  Equity  Portfolio
Airport Development & Maintenance		7.0	%		—	%
Cable Television		9.5			—
Commercial Services		—			0.9
Construction & Engineering		4.7			—
Electric		23.2			—
Energy Services		4.6			—
Gas Utilities		9.8			—
Housing		—			0.3
Leisure & Entertainment		—			1.5
Metals & Mining		—			0.6
Real Estate		—			95.1
Transportation		29.2			—
Water		5.3			—
Subtotal		93.3			98.4
Closed-End Management Investment Company		—			0.9
Short-Term Investments		7.8			0.6
Total Investments		101.1	%		99.9	%

* Industry classifications may be different than those used for compliance monitoring purposes.

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

Semi-Annual Report  19

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

June 30, 2014	Lazard Global Listed Infrastructure Portfolio			Lazard US Realty Income Portfolio
ASSETS
Investments in securities, at value	$	1,342,641,185		$	141,749,988
Cash		—			—
Foreign currency		924,671			—
Receivables for:
Capital stock sold		6,461,245			463,352
Dividends and interest		3,105,728			1,207,289
Investments sold		555,670			—
Amount due from Investment Manager (Note 3)		—			—
Gross unrealized appreciation on forward currency contracts		79,914			—
Total assets		1,353,768,413			143,420,629
LIABILITIES
Payables for:
Management fees		942,523			86,567
Accrued distribution fees		19,155			17,269
Accrued directors’ fees		4,733			783
Investments purchased		18,932,533			—
Capital stock redeemed		1,367,111			184,729
Gross unrealized depreciation on forward currency contracts		4,900,992			—
Other accrued expenses and payables		42,000			54,575
Total liabilities		26,209,047			343,923
Net assets	$	1,327,559,366		$	143,076,706
NET ASSETS
Paid in capital	$	1,146,544,241		$	141,570,381
Undistributed net investment income		7,346,050			3,952
Accumulated net realized gain (loss)		28,709,189			3,429,020
Net unrealized appreciation (depreciation) on:
Investments		149,766,726			(1,926,647	)
Foreign currency and forward currency contracts		(4,806,840	)		—
Net assets	$	1,327,559,366		$	143,076,706
Institutional Shares
Net assets	$	1,220,636,929		$	55,984,518
Shares of capital stock outstanding*		82,590,249			6,620,999
Net asset value, offering and redemption price per share	$	14.78		$	8.46
Open Shares
Net assets	$	106,922,437		$	87,092,188
Shares of capital stock outstanding*		7,223,661			10,316,340
Net asset value, offering and redemption price per share	$	14.80		$	8.44
Cost of investments in securities	$	1,192,874,459		$	143,676,635
Cost of foreign currency	$	923,669		$	—

* $0.001 par value, 6,300,000,000 shares authorized for the Portfolios in total.

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

20   Semi-Annual Report

Lazard US Realty Equity Portfolio			Lazard Global Realty Equity Portfolio
$	81,289,957		$	9,883,094
	—			10
	—			3,227
	176,351			100
	190,442			31,632
	—			—
	—			11,070
	—			—
	81,656,750			9,929,133
	43,362			—
	14,701			789
	453			51
	—			1
	127,181			9,438
	—			—
	28,109			22,959
	213,806			33,238
$	81,442,944		$	9,895,895
$	74,245,544		$	8,907,548
	747,155			95,832
	(97,167	)		(18,166	)
	6,547,412			910,431
	—			250
$	81,442,944		$	9,895,895
$	8,851,751		$	5,904,260
	475,692			343,503
$	18.61		$	17.19
$	72,591,193		$	3,991,635
	3,892,613			232,728
$	18.65		$	17.15
$	74,742,545		$	8,971,661
$	—		$	3,207

Semi-Annual Report  21

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

For the Six Months Ended June 30, 2014	Lazard Global Listed Infrastructure Portfolio			Lazard US Realty Income Portfolio
Investment Income
Income
Dividends	$	20,752,387		$	3,859,994
Expenses
Management fees (Note 3)		4,432,984			475,396
Administration fees		119,576			37,471
Custodian fees		103,805			23,335
Distribution fees (Open Shares)		81,178			94,122
Professional services		29,443			19,041
Registration fees		46,502			29,980
Shareholders’ services		18,546			26,753
Shareholders’ reports		17,271			12,600
Directors’ fees and expenses		10,107			1,574
Other†		9,236			3,520
Total gross expenses		4,868,648			723,792
Management fees waived and expenses reimbursed		—			—
Administration fees waived		—			—
Total net expenses		4,868,648			723,792
Net investment income		15,883,739			3,136,202
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Forward Currency Contracts and Options
Net realized gain (loss) on:
Investments		46,415,977			1,599,823
Foreign currency and forward currency contracts		(12,927,349	)		—
Purchased options		—			—
Total net realized gain on investments, foreign currency, forward currency contracts and options		33,488,628			1,599,823
Net change in unrealized appreciation (depreciation) on:
Investments**		84,523,690			14,245,269
Foreign currency and forward currency contracts		(2,459,525	)		—
Purchased options		—			—
Total net change in unrealized appreciation on investments, foreign currency, forward currency contracts and options		82,064,165			14,245,269
Net realized and unrealized gain on investments, foreign currency, forward currency contracts and options		115,552,793			15,845,092
Net increase in net assets resulting from operations	$	131,436,532		$	18,981,294
* Net of foreign withholding taxes of	$	3,051,222		$	—
**Includes net change in unrealized foreign capital gains taxes of	$	—		$	—
† Includes interest on line of credit of	$	—		$	910

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

22  Semi-Annual Report

Lazard US Realty Equity Portfolio			Lazard Global Realty Equity Portfolio
$	1,223,492		$	194,665
	289,434			40,484
	32,031			26,772
	20,013			34,035
	80,379			4,385
	18,538			17,930
	8,772			14,991
	38,136			13,544
	9,137			5,186
	910			105
	776			1,936
	498,126			159,368
	(21,789	)		(93,002	)
	—			(9,375	)
	476,337			56,991
	747,155			137,674
	256,402			76,373
	—			(332	)
	39,164			—
	295,566			76,041
	9,509,570			770,814
	—			14
	29,595			—
	9,539,165			770,828
	9,834,731			846,869
$	10,581,886		$	984,543
$	—		$	14,271
$	—		$	(1,002	)
$	245		$	3

Semi-Annual Report  23

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

	Lazard Global Listed Infrastructure Portfolio						Lazard US Realty Income Portfolio
	Six Months Ended June 30, 2014 (unaudited)			Year Ended December 31, 2013			Six Months Ended June 30, 2014 (unaudited)			Year Ended December 31, 2013
Increase (Decrease) in Net Assets
Operations
Net investment income	$	15,883,739		$	12,304,735		$	3,136,202		$	7,701,746
Net realized gain on investments, foreign currency, forward currency contracts and options		33,488,628			22,632,285			1,599,823			13,703,073
Net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts and options		82,064,165			57,478,248			14,245,269			(21,754,968	)
Net increase (decrease) in net assets resulting from operations		131,436,532			92,415,268			18,981,294			(350,149	)
Distributions to shareholders
From net investment income
Institutional Shares		(12,625,021	)		(11,132,365	)		(1,303,093	)		(2,107,432	)
Open Shares		(805,713	)		(618,857	)		(1,829,157	)		(3,536,093	)
From net realized gains
Institutional Shares		—			(17,822,542	)		—			(6,465,318	)
Open Shares		—			(1,133,716	)		—			(8,465,688	)
From return of capital
Institutional Shares		—			—			—			—
Open Shares		—			—			—			—
Net decrease in net assets resulting from distributions		(13,430,734	)		(30,707,480	)		(3,132,250	)		(20,574,531	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		519,747,108			634,839,540			14,914,320			42,701,987
Open Shares		65,808,373			29,997,173			26,706,077			121,300,948
Net proceeds from reinvestment of distributions
Institutional Shares		8,458,412			19,887,096			1,181,481			7,944,138
Open Shares		766,216			1,649,076			1,751,360			11,491,478
Cost of shares redeemed
Institutional Shares		(58,913,771	)		(196,894,697	)		(13,786,095	)		(47,910,867	)
Open Shares		(8,540,340	)		(6,801,074	)		(17,601,416	)		(107,986,190	)
Net increase in net assets from capital stock transactions		527,325,998			482,677,114			13,165,727			27,541,494
Redemption fees (Note 2(i))
Institutional Shares		2,082			6,934			2,406			2,700
Open Shares		3,500			2,938			4,121			18,372
Net increase in net assets from redemption fees		5,582			9,872			6,527			21,072
Total increase in net assets		645,337,378			544,394,774			29,021,298			6,637,886
Net assets at beginning of period		682,221,988			137,827,214			114,055,408			107,417,522
Net assets at end of period*	$	1,327,559,366		$	682,221,988		$	143,076,706		$	114,055,408
*Includes undistributed (distributions in excess of) net investment income of	$	7,346,050		$	4,893,045		$	3,952		$	—
Shares issued and redeemed Institutional Shares
Shares outstanding at beginning of period		48,827,881			11,419,125			6,343,004			6,073,485
Shares sold		37,377,808			51,937,910			1,851,425			4,657,361
Shares issued to shareholders from reinvestment of distributions		596,248			1,546,421			144,990			1,022,521
Shares redeemed		(4,211,688	)		(16,075,575	)		(1,718,420	)		(5,410,363	)
Net increase (decrease)		33,762,368			37,408,756			277,995			269,519
Shares outstanding at end of period		82,590,249			48,827,881			6,620,999			6,343,004
Open Shares
Shares outstanding at beginning of period		3,125,100			1,159,035			8,991,883			6,474,598
Shares sold		4,662,323			2,376,299			3,300,699			13,171,196
Shares issued to shareholders from reinvestment of distributions		53,818			128,456			214,882			1,467,505
Shares redeemed		(617,580	)		(538,690	)		(2,191,124	)		(12,121,416	)
Net increase		4,098,561			1,966,065			1,324,457			2,517,285
Shares outstanding at end of period		7,223,661			3,125,100			10,316,340			8,991,883

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

24  Semi-Annual Report

Lazard US Realty Equity Portfolio						Lazard Global Realty Equity Portfolio
Six Months Ended June 30, 2014 (unaudited)			Year Ended December 31, 2013			Six Months Ended June 30, 2014 (unaudited)			Year Ended December 31, 2013
$	747,155		$	1,628,515		$	137,674		$	100,990
	295,566			4,359,190			76,041			793,854
	9,539,165			(5,477,119	)		770,828			(769,313	)
	10,581,886			510,586			984,543			125,531
	—			(112,274	)		—			(111,909	)
	—			(739,462	)		—			(61,907	)
	—			(633,914	)		—			(199,993	)
	—			(5,041,557	)		—			(135,853	)
	—			—			—			(32,900	)
	—			—			—			(22,116	)
	—			(6,527,207	)		—			(564,678	)
	1,929,309			6,127,319			3,000			4,925,553
	18,787,164			48,927,295			1,429,707			1,086,728
	—			744,504			—			344,801
	—			5,519,188			—			209,328
	(2,104,733	)		(957,742	)		—			(2,530,692	)
	(16,420,919	)		(53,866,480	)		(205,945	)		(918,254	)
	2,190,821			6,494,084			1,226,762			3,117,464
	—			—			—			—
	2,778			8,612			—			31
	2,778			8,612			—			31
	12,775,485			486,075			2,211,305			2,678,348
	68,667,459			68,181,384			7,684,590			5,006,242
$	81,442,944		$	68,667,459		$	9,895,895		$	7,684,590
$	747,155		$	—		$	95,832		$	(95,276	)
	488,840			160,617			343,325			164,688
	109,327			335,532			178			303,046
	—			46,396			—			22,413
	(122,475	)		(53,705	)		—			(146,822	)
	(13,148	)		328,223			178			178,637
	475,692			488,840			343,503			343,325
	3,776,638			3,747,565			152,733			130,199
	1,064,298			2,682,699			92,792			63,297
	—			342,619			—			13,430
	(948,323	)		(2,996,245	)		(12,797	)		(54,193	)
	115,975			29,073			79,995			22,534
	3,892,613			3,776,638			232,728			152,733

Semi-Annual Report  25

   The Lazard Funds, Inc. Financial Highlights

LAZARD GLOBAL LISTED INFRASTRUCTURE PORTFOLIO

	Six Months
Selected data for a share of capital	Ended			Year Ended												Period Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09*
Institutional Shares
Net asset value, beginning of period	$	13.13		$	10.96		$	9.78		$	10.31		$	10.00		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.22			0.35			0.31			0.33			0.30			—	(b)
Net realized and unrealized gain (loss)		1.61			2.53			1.43			(0.48	)		0.34			—
Total from investment operations		1.83			2.88			1.74			(0.15	)		0.64			—	(b)
Less distributions from:
Net investment income		(0.18	)		(0.33	)		(0.35	)		(0.15	)		(0.23	)		—
Net realized gains		—			(0.38	)		(0.21	)		(0.23	)		(0.10	)		—
Total distributions		(0.18	)		(0.71	)		(0.56	)		(0.38	)		(0.33	)		—
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)		—
Net asset value, end of period	$	14.78		$	13.13		$	10.96		$	9.78		$	10.31		$	10.00
Total Return (c)		14.00	%		26.56	%		18.05	%		-1.55	%		6.63	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,220,637		$	641,127		$	125,112		$	104,439		$	115,680		$	74
Ratios to average net assets (d):
Net expenses		0.97	%		1.01	%		1.14	%		1.09	%		1.30	%		1.30	%
Gross expenses		0.97	%		1.01	%		1.14	%		1.09	%		1.35	%	1,825.00		%(e)
Net investment income (loss)		3.23	%		2.80	%		3.01	%		3.15	%		3.01	%		-1.30	%
Portfolio turnover rate		29	%		35	%		26	%		135	%		46	%		0	%
	Six Months
Selected data for a share of capital	Ended			Year Ended												Period Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09*
Open Shares
Net asset value, beginning of period	$	13.15		$	10.97		$	9.78		$	10.34		$	10.00		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.22			0.30			0.28			0.28			0.24			—	(b)
Net realized and unrealized gain (loss)		1.59			2.55			1.42			(0.49	)		0.38			—
Total from investment operations		1.81			2.85			1.70			(0.21	)		0.62			—	(b)
Less distributions from:
Net investment income		(0.16	)		(0.29	)		(0.30	)		(0.12	)		(0.18	)		—
Net realized gains		—			(0.38	)		(0.21	)		(0.23	)		(0.10	)		—
Total distributions		(0.16	)		(0.67	)		(0.51	)		(0.35	)		(0.28	)		—
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—			—
Net asset value, end of period	$	14.80		$	13.15		$	10.97		$	9.78		$	10.34		$	10.00
Total Return (c)		13.83	%		26.24	%		17.54	%		-1.95	%		6.28	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	106,922		$	41,095		$	12,715		$	8,359		$	118		$	50
Ratios to average net assets (d):
Net expenses		1.25	%		1.32	%		1.50	%		1.60	%		1.60	%		1.60	%
Gross expenses		1.25	%		1.32	%		1.50	%		1.67	%		18.06	%	1,825.00		%(e)
Net investment income (loss)		3.18	%		2.42	%		2.66	%		2.81	%		2.37	%		-1.60	%
Portfolio turnover rate		29	%		35	%		26	%		135	%		46	%		0	%

†	Unaudited.
*	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. A period of less than one year is not annualized.
(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.

26  Semi-Annual Report

LAZARD US REALTY INCOME PORTFOLIO

	Six Months									For the Period
Selected data for a share of capital	Ended			Year Ended						9/26/11* to
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	7.44		$	8.57		$	7.46		$	9.73
Income (loss) from investment operations:
Net investment income (a)		0.20			0.47			0.49			0.16
Net realized and unrealized gain (loss)		1.02			(0.27	)		1.23			0.55
Total from investment operations		1.22			0.20			1.72			0.71
Less distributions from:
Net investment income		(0.20	)		(0.34	)		(0.37	)		(0.24	)
Net realized gains		—			(0.99	)		(0.24	)		(2.74	)
Total distributions		(0.20	)		(1.33	)		(0.61	)		(2.98	)
Redemption fees		—	(b)		—	(b)		—	(b)		—
Net asset value, end of period	$	8.46		$	7.44		$	8.57		$	7.46
Total Return (c)		16.36	%		2.37	%		23.32	%		9.71	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	55,985		$	47,222		$	52,024		$	19,849
Ratios to average net assets (d):
Net expenses		0.98	%		0.95	%		1.15	%		1.15	%
Gross expenses		0.98	%		0.98	%		1.16	%		2.31	%
Net investment income		5.08	%		5.29	%		5.94	%		8.26	%
Portfolio turnover rate		32	%		104	%		42	%		89	%
	Six Months									For the Period
Selected data for a share of capital	Ended			Year Ended						6/1/11 to			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			5/31/11			5/31/10
Open Shares
Net asset value, beginning of period	$	7.43		$	8.56		$	7.45		$	11.34		$	10.78		$	6.79
Income (loss) from investment operations:
Net investment income (a)		0.19			0.44			0.51			0.44			0.32			0.48
Net realized and unrealized gain (loss)		1.01			(0.26	)		1.19			(1.21	)		2.05			4.10
Total from investment operations		1.20			0.18			1.70			(0.77	)		2.37			4.58
Less distributions from:
Net investment income		(0.19	)		(0.32	)		(0.35	)		(0.38	)		(0.64	)		(0.59	)
Net realized gains		—			(0.99	)		(0.24	)		(2.74	)		(1.17	)		—
Total distributions		(0.19	)		(1.31	)		(0.59	)		(3.12	)		(1.81	)		(0.59	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	8.44		$	7.43		$	8.56		$	7.45		$	11.34		$	10.78
Total Return (c)		16.25	%		1.99	%		23.00	%		-4.82	%		23.27	%		69.50	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	87,092		$	66,834		$	55,393		$	6,007		$	15,830		$	9,864
Ratios to average net assets (d):
Net expenses		1.25	%		1.22	%		1.45	%		1.47	%		1.48	%		1.48	%
Gross expenses		1.25	%		1.24	%		1.47	%		3.05	%		2.42	%		4.20	%
Net investment income		4.86	%		4.86	%		6.18	%		7.49	%		2.81	%		5.14	%
Portfolio turnover rate		32	%		104	%		42	%		89	%		77	%		116	%

†	Unaudited.
*	The inception date for Institutional Shares was September 26, 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.

Semi-Annual Report   27

LAZARD US REALTY EQUITY PORTFOLIO

	Six Months									For the Period
Selected data for a share of capital	Ended			Year Ended						9/26/11* to
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	16.05		$	17.40		$	14.89		$	15.76
Income (loss) from investment operations:
Net investment income (a)		0.21			0.41			0.31			0.10
Net realized and unrealized gain (loss)		2.35			(0.10	)		2.79			2.91
Total from investment operations		2.56			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	$	18.61		$	16.05		$	17.40		$	14.89
Total Return (c)		15.95	%		1.77	%		20.83	%		20.84	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	8,852		$	7,844		$	2,794		$	1,525
Ratios to average net assets (d):
Net expenses		1.05	%		1.13	%		1.20	%		1.20	%
Gross expenses		1.22	%		1.27	%		2.34	%		13.07	%
Net investment income		2.39	%		2.28	%		1.86	%		2.32	%
Portfolio turnover rate		41	%		98	%		52	%		63	%
	Six Months									For the Period
Selected data for a share of capital	Ended			Year Ended						6/1/11 to			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			5/31/11			5/31/10
Open Shares
Net asset value, beginning of period	$	16.11		$	17.45		$	14.92		$	19.49		$	16.66		$	10.76
Income (loss) from investment operations:
Net investment income (loss) (a)		0.18			0.33			0.30			0.14			(0.07	)		0.05
Net realized and unrealized gain (loss)		2.36			(0.06	)		2.76			(0.90	)		5.17			7.26
Total from investment operations		2.54			0.27			3.06			(0.76	)		5.10			7.31
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)		—	(b)		0.01			0.01			—	(b)		—
Net asset value, end of period	$	18.65		$	16.11		$	17.45		$	14.92		$	19.49		$	16.66
Total Return (c)		15.77	%		1.58	%		20.58	%		-2.44	%		33.01	%		70.16	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	72,591		$	60,823		$	65,387		$	1,138		$	4,852		$	2,463
Ratios to average net assets (d):
Net expenses		1.35	%		1.36	%		1.50	%		1.80	%		1.93	%		2.00	%
Gross expenses		1.40	%		1.41	%		1.78	%		7.48	%		5.66	%		17.23	%
Net investment income (loss)		2.02	%		1.83	%		1.74	%		1.36	%		-0.41	%		0.32	%
Portfolio turnover rate		41	%		98	%		52	%		63	%		91	%		138	%

†	Unaudited.
*	The inception date for Institutional Shares was September 26, 2011.
(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.

28  Semi-Annual Report

LAZARD GLOBAL REALTY EQUITY PORTFOLIO

	Six Months									For the Period
Selected data for a share of capital	Ended			Year Ended						9/26/11* to
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	15.49		$	16.98		$	12.18		$	13.08
Income (loss) from investment operations:
Net investment income (a)		0.25			0.30			0.22			0.03
Net realized and unrealized gain (loss)		1.45			(0.18	)		5.27			0.05
Total from investment operations		1.70			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	$	17.19		$	15.49		$	16.98		$	12.18
Total Return (c)		10.90	%		0.89	%		45.14	%		0.09	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	5,904		$	5,320		$	2,797		$	1,914
Ratios to average net assets (d):
Net expenses		1.15	%		1.22	%		1.30	%		1.30	%
Gross expenses		3.38	%		5.46	%		5.84	%		17.38	%
Net investment income		3.09	%		1.79	%		1.50	%		0.83	%
Portfolio turnover rate		25	%		81	%		42	%		41	%
	Six Months									For the Period
Selected data for a share of capital	Ended			Year Ended						6/1/11 to			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			5/31/11			5/31/10
Open Shares
Net asset value, beginning of period	$	15.48		$	16.97		$	12.17		$	16.98		$	14.54		$	15.39
Income (loss) from investment operations:
Net investment income (a)		0.24			0.25			0.19			0.06			0.16			0.28
Net realized and unrealized gain (loss)		1.43			(0.18	)		5.25			(3.89	)		3.99			1.40
Total from investment operations		1.67			0.07			5.44			(3.83	)		4.15			1.68
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	$	17.15		$	15.48		$	16.97		$	12.17		$	16.98		$	14.54
Total Return (c)		10.72	%		0.60	%		44.81	%		-22.98	%		29.13	%		9.65	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	3,992		$	2,365		$	2,209		$	667		$	1,716		$	1,427
Ratios to average net assets (d):
Net expenses		1.45	%		1.54	%		1.60	%		1.84	%		1.96	%		2.00	%
Gross expenses		3.79	%		5.81	%		6.13	%		16.46	%		14.35	%		25.27	%
Net investment income		3.01	%		1.45	%		1.25	%		0.66	%		0.98	%		1.71	%
Portfolio turnover rate		25	%		81	%		42	%		41	%		54	%		81	%

†	Unaudited.
*	The inception date for Institutional Shares was September 26, 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.

Semi-Annual Report  29

   The Lazard Funds, Inc. Notes to Financial Statements June 30, 2014 (unaudited)

1. Organization

The Lazard Funds, Inc. (the “Fund”) was incorporated in Maryland on May 17, 1991 and is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Fund, comprised of twenty-seven 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 Fundamental Long/Short Portfolio (commenced investment operations on April 30, 2014), 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, Lazard Emerging Markets Core Equity Portfolio, Lazard Emerging Markets Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi Asset Portfolio (formerly, Lazard Emerging Markets Multi-Strategy Portfolio), Lazard Emerging Markets Debt Portfolio, Lazard Emerging Markets Income Portfolio (commenced investment operations on April 30, 2014), Lazard Explorer Total Return Portfolio, Lazard US Corporate Income Portfolio (formerly, Lazard U.S. High Yield Portfolio), Lazard US Short Duration Fixed Income Portfolio (formerly, Lazard U.S. Municipal Portfolio), Lazard Global Fixed Income Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio (formerly, Lazard International Realty Equity Portfolio), Lazard Capital Allocator Opportunistic Strategies Portfolio, and Lazard Global Dynamic Multi Asset Portfolio (formerly, Lazard Multi-Asset Targeted Volatility Portfolio). All Portfolios, other than the US Equity Concentrated, Fundamental Long/Short, Emerging Markets Debt, Emerging Markets Income, Explorer Total Return, US Realty Equity and Global Realty Equity Portfolios, are operated as “diversified” funds, as defined in the Act. Global Dynamic Multi Asset Portfolio had not commenced operations as of June 30, 2014. This report includes only the financial statements of Global Listed Infrastructure, US Realty Income, US Realty Equity, and Global Realty Equity Portfolios. The financial statements of other Portfolios are presented separately.

Effective November 29, 2013, the Fund formed an R6 Shares class. 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 June 30, 2014, only US Strategic Equity, International Equity, International Strategic Equity, Emerging Markets Equity, Emerging Markets Equity Blend, Emerging Markets Multi Asset and Emerging Markets Debt Portfolios offered R6 Shares and only US Strategic Equity Portfolio had issued R6 Shares.

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 consistently followed by the Fund in the preparation of the financial statements:

(a) Valuation of Investments—Net asset value (“NAV”) per share for each class of each Portfolio is determined by State Street for the Fund on each day the New York Stock Exchange (“NYSE”) is open for business. Market values for securities listed on the 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. Exchange-traded options are valued at the last reported sales price on the exchange on which the contract is principally traded. Investments in money market funds are valued at the fund’s 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 se-

30  Semi-Annual Report

curity, 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 American Depository Receipts or futures contracts. Non-US securities may trade on days when a Portfolio is not open for business, thus affecting the value of a 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.

A 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). An affected 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 Fund 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 the Portfolios’ 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, a 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 period ended June 30, 2014, 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. Such options may be traded on US or non-US securities exchanges or in over-the-counter markets.

Semi-Annual Report  31

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 period ended June 30, 2014, transactions in options purchased were as follows:

US Realty Equity Portfolio

Purchased Options	Number of Contracts			Cost
Options outstanding at beginning of period		1,530		$	289,785
Options purchased		750			138,893
Options sold		(1,160	)		(220,806	)
Options expired		(1,120	)		(207,872	)
Options outstanding at end of period		—		$	—

During the period ended June 30, 2014, 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 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 Global Listed Infrastructure and US Realty Income Portfolios’ dividends from net investment income (if any), will be declared and paid quarterly. During any particular year, net realized gains from investment transactions in excess of available capital loss 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 shareholders distributions may result in reclassifications among certain capital accounts.

(g) Allocation of Expenses—Expenses not directly chargeable to a specific Portfolio are allocated among all Portfolios primarily on the basis of relative net assets. Portfolios accrue distribution and service (12b-1) fees to Open Shares. Portfo-

32  Semi-Annual Report

lios’ 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—Excess cash in Portfolios’ 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—All 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 the Portfolios and are included as paid in capital on the Statements of Assets and Liabilities. The fees are also shown on the 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
Global Listed Infrastructure		0.90	%
US Realty Income		0.75
US Realty Equity		0.80
Global Realty Equity*		0.90
*  Effective July 1, 2014, the annual rate is 0.85%.

The Investment Manager has voluntarily agreed, through April 30 of the year shown below, 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			Year
Global Listed Infrastructure		1.30	%		1.60	%		2024
US Realty Income		1.00			1.30			2016
US Realty Equity		1.05			1.35			2024
Global Realty Equity		1.15			1.45			2016

During the period ended June 30, 2014, 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 Realty Equity		$   6,956		$       —		$14,833		$       —
Global Realty Equity		24,698		30,869		15,786		21,649

The Fund has entered into an administration agreement with State Street to provide certain administrative services. Each Portfolio bears the cost of such services at a fixed annual rate of $42,500, plus $7,500 per additional class, and 0.02% of average daily net assets up to $1 billion and 0.01% of average daily net assets over $1 billion. State Street has agreed to waive $18,750 of the $42,500 annual fee for Portfolios with net assets under $25 million. During the period ended June 30, 2014, State Street waived its fees of $9,375 for the Global Realty Equity 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 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, sub-

Semi-Annual Report  33

ject 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 Chair of $5,000. Such Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings. No additional compensation is provided in respect of committee meetings held in conjunction with a meeting of the Board. Compensation is, 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 period ended June 30, 2014 were as follows:

Portfolio	Purchases		Sales
Global Listed Infrastructure	$	714,179,486	$	275,348,834
US Realty Income		46,965,674		38,841,903
US Realty Equity		30,065,195		28,381,797
Global Realty Equity		3,627,782		2,254,224

For the period ended June 30, 2014, 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 period ended June 30, 2014, 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	$	5,976,000	$	6,350,000		1.10	%		5
US Realty Equity		365,909		825,000		1.10			22
Global Realty Equity		55,000		90,000		1.08			2

*   For days borrowings were outstanding.

7. Non-US Securities Investment Risks

Certain Portfolios may invest in securities of foreign entities and in instruments denominated in foreign currencies which involve risks not typically associated with investments in US securities. Such Portfolios’ performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolios invest. Non-US securities carry special risks, such as 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 may experience a decline in value, in US dollar terms, due solely to fluctuations in currency exchange rates. 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, capital markets worldwide have experienced unprecedented volatility in recent years, causing significant declines in valuation and liquidity in certain emerging markets. These market conditions may continue or worsen. Investments in these countries may be subject to political, economic, legal, market and currency risks. The risks may include less protection of property rights and uncertain political and economic policies, the imposition of capital controls and/or foreign investment limitations by a country, national-

34  Semi-Annual Report

ization of businesses and the imposition of sanctions by other countries, such as the US. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies. The Portfolios’ investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market 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 partici-

pants 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 June 30, 2014:

Description	Unadjusted Quoted Prices in Active Markets for Identical Investments (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Balance as of June 30, 2014
Global Listed Infrastructure Portfolio
Assets:
Common Stocks	$	1,238,836,728	$	—		$	—	$	1,238,836,728
Short-Term Investment		103,804,457		—			—		103,804,457
Other Financial Instruments*
Forward Currency Contracts		—		79,914			—		79,914
Total	$	1,342,641,185	$	79,914		$	—	$	1,342,721,099
Liabilities:
Other Financial Instruments*
Forward Currency Contracts	$	—	$	(4,900,992	)	$	—	$	(4,900,992	)

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

Semi-Annual Report  35

Description	Unadjusted Quoted Prices in Active Markets for Identical Investments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of June 30, 2014
US Realty Income Portfolio
Common Stocks	$	8,564,304	$	—	$	—	$	8,564,304
Preferred Stocks		32,885,496		—		—		32,885,496
Real Estate Investment Trusts		94,646,286		—		—		94,646,286
Short-Term Investment		5,653,902		—		—		5,653,902
Total	$	141,749,988	$	—	$	—	$	141,749,988
US Realty Equity Portfolio
Common Stocks	$	5,027,567	$	—	$	—	$	5,027,567
Real Estate Investment Trusts		74,095,807		—		—		74,095,807
Short-Term Investment		2,166,583		—		—		2,166,583
Total	$	81,289,957	$	—	$	—	$	81,289,957
Global Realty Equity Portfolio
Common Stocks	$	3,012,604	$	—	$	—	$	3,012,604
Real Estate Investment Trusts		6,717,285		—		—		6,717,285
Closed-End Management Investment Company		93,204		—		—		93,204
Short-Term Investment		60,001		—		—		60,001
Total	$	9,883,094	$	—	$	—	$	9,883,094

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 Listed Infrastructure and Global Realty 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. A Portfolio recognizes all transfers between levels as though they were transferred at the beginning of the reporting period. There were no transfers into or out of Levels 1, 2 or 3 during the period ended June 30, 2014.

For further information regarding security characteristics see Portfolios of Investments.

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 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.

Global Listed Infrastructure Portfolio

During the period ended June 30, 2014, the notional amounts of purchases and sales of forward currency contracts were $1,806,956,344 and $2,138,100,040, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of June 30, 2014:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	79,914
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	4,900,992

The effect of derivative instruments on its Statement of Operations for the period ended June 30, 2014 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized loss on forward currency contracts	$	(12,700,397	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(2,456,822	)

36  Semi-Annual Report

US Realty Equity Portfolio

The effect of derivative instruments on its Statement of Operations for the period ended June 30, 2014 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Equity Risk:
Net realized gain on purchased options	$	39,164
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Equity Risk:
Net change in unrealized appreciation on purchased options	$	29,595

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

During the period ended June 30, 2014, US Realty Income and Global Realty Equity Portfolios did not trade in derivatives.

As of June 30, 2014, the Global Listed Infrastructure Portfolio holds derivative instruments that are eligible for offset in its 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 June 30, 2014:

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	$79,914	$      —	$79,914

			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 Amounts
Barclays Bank PLC	$	7,425	$	(7,425	)		$    —		$    —
Credit Suisse Group AG		67,159		(67,159	)		—		—
Royal Bank of Canada		5,330		(5,330	)		—		—
Total	$	79,914	$	(79,914	)		$    —		$    —

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	$4,900,992	$    —	$4,900,992

			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 Amounts
Barclays Bank PLC	$	749,395	$	(7,425	)		$     —	$	741,970
Canadian Imperial Bank of Commerce		673,907		—			—		673,907
Citibank NA		437,291		—			—		437,291
Credit Suisse Group AG		1,130,794		(67,159	)		—		1,063,635
HSBC Bank USA		735,985		—			—		735,985
Royal Bank of Canada		1,173,620		(5,330	)		—		1,168,290
Total	$	4,900,992	$	(79,914	)		$     —	$	4,821,078

Semi-Annual Report  37

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 adjustment or disclosure in the financial statements.

38  Semi-Annual Report

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

Name (Age)	Position(s) with the Fund	Principal Occupation(s) and Other Public Company
Address(1)	(Since) and Term(2)	Directorships Held During the Past Five Years(2)
Independent Directors(3):
Kenneth S. Davidson (69)	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 (11 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)
Trevor W. Morrison (43)	Director (April 2014)	New York University School of Law, Dean and Eric M. and Laurie B. Roth Professor of Law (2013 – present)
		Columbia Law School, Professor of Law (2008 – 2013)
		Office of Counsel to the President, The White House, Associate Counsel to the President (2009)
Leon M. Pollack (73)	Director (August 2006)	Private Investor
Richard Reiss, Jr. (70)	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 (54)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present)
		Lazard Ltd, Vice Chairman and Director (2010 – present)
Franci J. Blassberg (60)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012)
		Cornell Law School, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)

Semi-Annual Report  39

(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 serves as a Director for each of the Lazard Funds (comprised of, as of July 31, 2014, 33 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. Ms. Blassberg, who became a Director effective August 6, 2014, is an “interested person” (as defined in the Act) of the Fund, until January 1, 2015, as a result of her former position as a Partner of Debevoise & Plimpton LLP, which provides legal services to the Investment Manager. Ms. Blassberg was not involved in this representation.

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.

Name (Age)	Position(s) with the Fund
Address(1)	(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
Tamar Goldstein (39)	Interim Chief Compliance Officer (July 2014) and Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) 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.

40   Semi-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

At a meeting of the Board held on June 24-25, 2014, the Board considered the approval, for an additional annual period, of the Management Agreement between the Fund, on behalf of its Portfolios, and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Investment Manager.

Services Provided

Representatives of the Investment Manager discussed with the Board the Investment Manager’s written presentation provided in advance of the meeting addressing, among other matters, the nature, extent and quality of services that the Investment Manager provides the Fund, including a discussion of the Investment Manager and its clients (of which the Lazard Funds complex of 33 active funds comprised approximately $25 billion (as of April 30, 2014) of the approximately $169.5 billion of total assets under the management of the Investment Manager and its global affiliates as of March 31, 2014). The Investment Manager’s representatives noted that the Investment Manager believes that the Fund

continues to benefit significantly from the infrastructure and services provided by the Investment Manager’s global investment management platform, technology, operational and legal and compliance support and significant marketing infrastructure across broad distribution channels. The Directors also considered information provided by the Investment Manager regarding its personnel, resources, financial condition and experience; the Fund’s distribution channels and the relationships with various intermediaries; marketing activities on behalf of the Portfolios; and Portfolio asset flows and the growth or decline in asset levels.

The Directors considered the various services provided by the Investment Manager including the Investment Manager’s research and portfolio management capabilities and oversight of day-to-day operations, including 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 Fund benefits from the services and infrastructure provided by the Investment Manager. The Directors accepted management’s assertion that such services and infrastructure are greater than those typically provided to a $25 billion fund complex not managed by a large, global firm such as the Investment Manager.

Comparative Management Fee, Expense Ratio and Performance Information

The Directors reviewed comparative management fee, expense ratio and performance (through March 31, 2014) information prepared by Strategic Insight, noting the limitations of certain Strategic Insight comparison groups (each, a “Group”) and broader Morningstar categories (each, a “Category”).

Management Fees and Expense Ratios. The Directors discussed the management fees and expense ratios for each Portfolio. They noted the methodology and assumptions used by Strategic Insight, including that management fee comparisons for the Portfolios and the rankings used therein include administrative fees (which, for the Portfolios, include a fixed dollar fee paid to the Fund’s third party administrator that is not affiliated with the Investment Manager). The Directors acknowledged that, for smaller Portfolios, the fixed dollar administrative fee may have a more significant impact on the contractual management fee.

Semi-Annual Report  41

In reviewing Strategic Insight’s analysis, it was noted that, for at least one share class of each Portfolio, contractual management fees were at or below the median of the relevant Group, except for the Global Realty Equity Portfolio (highest in the Groups for both share classes). For the Global Realty Equity Portfolio, the Directors noted that the contractual advisory fee after a fee reduction proposed by management would be competitive with the median for Institutional shares.

It also was noted that, for at least one share class of all Portfolios, expense ratios were at or below the medians of those of the funds in the relevant Group, except for the Global Realty Equity (highest in the Open share class Group). For the Global Realty Equity Portfolio, the Directors noted that the Institutional share expense ratio, after giving effect to the fee reduction and lower expense limitation would be only slightly above the median for Institutional shares. The Directors considered that the Investment Manager continues to voluntarily enter into fee waiver and expense reimbursement agreements for all of the Portfolios and that for certain of the Portfolios the Investment Manager was waiving management fees and/or reimbursing expenses.

The Directors also considered management fees paid to the Investment Manager by funds advised or sub-advised by the Investment Manager utilizing the same investment strategies as the Global Listed Infrastructure Portfolio, as well as the Investment Manager’s separately managed accounts with similar investment objectives, policies and strategies (collectively with such funds, “Similar Accounts”). There were no Similar Accounts for the US Realty Income, US Realty Equity and Global Realty Equity Portfolios. The Directors discussed the fees paid to the Investment Manager by the Portfolio compared to the fees paid to the Investment Manager by Similar Accounts. Representatives of the Investment Manager discussed the nature of the Similar Accounts and the extensive differences, from the Investment Manager’s perspective, in services provided to the different types of Similar Accounts as compared to the services provided to the Portfolio. The Directors considered the relevance of the fee information provided for Similar Accounts managed by the Investment Manager, in light of the significant differences in services provided, to evaluate the appropriateness and reasonableness of the Portfolio’s management fee.

Performance. Strategic Insight’s performance analyses compared each Portfolio’s investment returns to those of the funds in the relevant Group and Category over measurement periods up to ten years through March 31, 2014.

The Directors noted that one or both share classes of Global Listed Infrastructure, US Realty Equity and US Realty Income were at or above the median of the Group and/or Category for most or all periods and that the performance of the Global Realty Equity Portfolio was generally below median.

At the meeting, the Directors received and would continue to receive regular updates on the Investment Manager’s efforts in respect of the Global Realty Equity Portfolio.

Investment Manager Profitability and Economies of Scale

The Directors reviewed information prepared by the Investment Manager for each Portfolio concerning profits realized by the Investment Manager and its affiliates resulting from the Management Agreement, calculated using the actual revenues received for the calendar year ended December 31, 2013 and the Investment Manager’s cost allocation methodology to compute an estimate of each Portfolio’s expenses. The Investment Manager’s representatives stated that neither the Investment Manager nor its affiliates receive any significant indirect benefits from the Investment Manager acting as investment adviser to the Portfolios. The Investment Manager’s representatives stated that the broker-dealer that is treated as an affiliate of the Investment Manager did not effect trades for the Portfolios in the period under review, and the Investment Manager did not benefit from money flow (float) in connection with transactions in the Portfolios’ shares. The Investment Manager’s representatives reviewed with the Board information provided on the Investment Manager’s brokerage practices and the Portfolios’ brokerage allocation, commission payments and soft dollar commissions and benefits. The representatives of the Investment Manager reminded the Board that the Investment Manager is continuing to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the Fund does not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Portfolios’ Open Shares.

42  Semi-Annual Report

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

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 renewal of the Management

Agreement. Based on its discussions and considerations as described above, the Board made the following conclusions and determinations.

• The Board concluded that the nature, extent and quality of the services provided by the Investment Manager are adequate and appropriate, noting the benefits of advisory and research services and other services and infrastructure (as discussed above) associated with an approximately $169.5 billion global asset management business.

• The Board was generally satisfied with the overall performance of most of the Portfolios, but would continue to monitor performance of the Global Realty Equity Portfolio.

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

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

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

Semi-Annual Report  43

NOTES

NOTES

NOTES

NOTES

NOTES

The Lazard Funds, Inc.

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

Investment Manager

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

Distributor

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

Custodian

State Street Bank and Trust Company
One Iron Street
Boston, Massachusetts 02210

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

Deloitte & Touche LLP
30 Rockefeller Plaza
New York, New York 10112-0015

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 Semi-Annual Report
June 30, 2014

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 Fundamental Long/Short 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
18	Information About Your Portfolio’s Expenses
21	Portfolio Holdings Presented by Sector
22	Portfolios of Investments
22	Lazard US Equity Concentrated Portfolio
23	Lazard US Strategic Equity Portfolio
25	Lazard US Mid Cap Equity Portfolio
26	Lazard US Small-Mid Cap Equity Portfolio
28	Lazard Fundamental Long/Short Portfolio
31	Lazard International Equity Portfolio
33	Lazard International Equity Select Portfolio
35	Lazard International Strategic Equity Portfolio
37	Lazard International Small Cap Equity Portfolio
39	Lazard Global Equity Select Portfolio
41	Notes to Portfolios of Investments
44	Statements of Assets and Liabilities
48	Statements of Operations
52	Statements of Changes in Net Assets
56	Financial Highlights
67	Notes to Financial Statements
76	Board of Directors and Officers Information
78	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 the investment objectives, risks, charges, expenses and other information about Portfolios of the Fund, which is not detailed in this report.

Distributed by Lazard Asset Management Securities LLC.

Semi-Annual Report  1

   The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

During the first half of 2014, global equity markets rose steadily in comparison to a strong 2013. Stocks were somewhat volatile in the beginning of the year as investors were concerned that the US Federal Reserve (the “Fed”) might begin to raise interest rates sooner than previously expected. Regardless, broad market gains were recorded across North America, Europe, and Asia. Emerging-market equities recovered from a difficult 2013 due to an improving economic environment and despite growth concerns in China and negative market movements from the Russia-Ukraine crisis.

Global fixed-income markets performed well as interest rates declined and despite the ongoing tapering by the Fed. Emerging-market debt posted strong returns, supported by the credit-easing measures taken by the European Central Bank and the ongoing accommodative stance by the Fed.

As always, at Lazard Asset Management, we remain focused on active management and are committed to leveraging our strengths in pursuing the Portfolios’ investment objectives so that you, a valued shareholder in the Lazard Funds, may 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

US Equities

The S&P 500^® Index delivered strong results during the six-month period ended June 30, 2014, gaining 7.1%. Stocks were somewhat volatile in the beginning of 2014, as many investors were concerned that the Fed might begin to raise interest rates sooner than previously expected. However, Fed Chair Janet Yellen reassured markets on several occasions that the Fed intends to keep interest rates low until the US economy is stronger. Economic reports were mixed in the first quarter of 2014, and a final revision of first-quarter GDP growth disappointed as the economy contracted at an annualized rate of -2.9%. However, many analysts attributed the slowdown in activity to the severe winter and encouraging data reassured the market that the economy had bounced back from its first-quarter lull. The economy added more jobs than expected in each month of the second quarter, auto sales continued to be strong, and corporate merger-and-acquisition activity continued at a rapid pace.

International Equities

Despite volatility during the early months, most international equity markets rose during the first half of 2014 driven by positive economic data points, an increase in merger-and-acquisition activity, and accommodative monetary policy. During the second quarter of 2014, emerging markets reversed their first quarter decline and ended the period outpacing developed markets. Indian equities were among the best performers on hopes that newly elected Prime Minister Narendra Modi might bring economic and social welfare reform to the country. Turkey also performed well during the period amid multiple interest rate cuts and political stabilization after unrest earlier in the year. Despite a de-escalation of tensions in the second quarter, Russian equities were among the worst performers in the aftermath of events in Crimea and the economic and diplomatic sanctions that followed.

In Europe, data pointed to factory and services output at their highest levels in three years, and euro-zone consumer confidence improved to pre-crisis levels. In an effort to increase bank lending and combat low inflation, the European Central Bank in June introduced another package of stimulative measures that included interest rate reductions. European countries enjoyed lower borrowing costs and improving economic conditions - in particular, bond yields in Greece, Ireland, Italy, Portugal, and Spain have come down significantly. In the United Kingdom, economic data was stronger

than expected, unemployment dropped to a five-year low, salaries outpaced inflation for the first time since 2010, and housing prices continued their ascent.

All global sectors finished for the six months ended June 30, 2014 in positive territory. Utility stocks were among the best performers as investors sought higher dividend-paying investments in contrast to record-low bond-yields. Energy stocks also performed well as oil prices rose due to the turmoil in Iraq.

Lazard US Equity Concentrated Portfolio

For the six months ended June 30, 2014, the Lazard US Equity Concentrated Portfolio’s Institutional Shares posted a total return of 9.05%, while Open Shares posted a total return of 8.75%, as compared with the 7.13% return for the S&P 500 Index.

Stock selection in the consumer discretionary sector contributed to performance. Shares of Advance Auto Parts rose after the company announced its acquisition of General Parts International for $2 billion. The transaction has been completed, making the combined entity the largest aftermarket auto parts provider in North America. Stock selection in the consumer staples sector also helped returns. Shares of Molson Coors Brewing rose after the company reported solid quarterly results, driven by strong volumes in its European business and cost savings. Stock selection in the materials sector also detracted from returns. Shares of Silver Wheaton rose due to strong earnings, primarily due to increased production.

In contrast, stock selection in the health care sector detracted from performance. Shares of animal health company Zoetis lagged after management issued disappointing guidance for 2014. Shares of pharmaceutical company Pfizer also detracted from returns after a series of offers made by the company to acquire AstraZeneca were rejected. Stock selection and an underweight position in the energy sector also hurt returns. Shares of offshore drilling contractor Transocean fell as investors were concerned that oil majors would reduce deep-water capital expenditures, which would likely lead to lower utilization rates for offshore drillers.

Lazard US Strategic Equity Portfolio

For the six months ended June 30, 2014, the Lazard US Strategic Equity Portfolio’s Institutional Shares posted a total return of 7.61%, while Open Shares posted a total

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return of 7.50%, as compared with the 7.13% return for the S&P 500 Index.

Stock selection in the consumer staples sector contributed to performance. Shares of Molson Coors Brewing rose after the company reported solid quarterly results, driven by strong volumes in its European business and cost savings. Stock selection in the consumer discretionary sector also helped returns. Shares of Advance Auto Parts rose after the company announced its acquisition of General Parts International for $2 billion. The transaction has been completed, making the combined entity the largest aftermarket auto parts provider in North America.

In contrast, stock selection in the health care sector detracted from performance. Shares of pharmaceutical company Pfizer fell after a series of offers made by the company to acquire AstraZeneca were rejected. Stock selection in the financials sector also hurt returns. Shares of exchange operator Intercontinental Exchange fell after management issued expense guidance for the year that was greater than expected.

Lazard US Mid Cap Equity Portfolio

For the six months ended June 30, 2014, the Lazard US Mid Cap Equity Portfolio’s Institutional Shares posted a total return of 5.61%, while Open Shares posted a total return of 5.45%, as compared with the 8.67% return for the Russell Midcap^® Index.

Stock selection in the materials sector contributed to performance. Shares of US Silica, a producer of specialized silica sand used in oil and gas wells as well as other commercial applications, rose after the company reported strong earnings, driven by high volumes and pricing increases. Management also raised its guidance for 2014. We sold our position in June as the stock approached our target valuation. Stock selection in the consumer staples sector also helped returns. Shares of Molson Coors Brewing rose after the company reported earnings that exceeded expectations, driven by strong volumes in its European business and cost savings.

In contrast, stock selection in the information technology sector detracted from performance. Shares of data analytics provider CoreLogic fell after the company reported disappointing quarterly results, as mortgage market weakness impacted revenues. We sold our position in March as we saw better risk/reward opportunities elsewhere. Stock selection

in the energy sector also hurt returns. Shares of offshore drilling contractor Transocean fell as investors were concerned that oil majors would reduce deepwater capital expenditures, which would likely lead to lower utilization rates for offshore drillers.

Lazard US Small-Mid Cap Equity Portfolio

For the six months ended June 30, 2014, the Lazard US Small-Mid Cap Equity Portfolio’s Institutional Shares posted a total return of 8.58%, while Open Shares posted a total return of 8.37%, as compared with the 5.95% return for the Russell 2500^® Index.

Stock selection in the information technology sector contributed to performance. Shares of wireless technology company InterDigital rose after management announced that it had renewed its mobile patent agreement with Samsung, its largest customer, after a two year negotiation process. Stock selection in the consumer discretionary sector also helped returns. Shares of Advance Auto Parts rose after the company announced its acquisition of General Parts International for $2 billion. The transaction has been completed, making the combined entity the largest aftermarket auto parts provider in North America.

In contrast, underweight positions in utilities and energy and a lack of exposure to telecom services detracted from performance, as the sectors were the three best performers in the benchmark during the period. In the consumer discretionary sector, shares of women’s retail store operator Francesca’s fell after the company reported quarterly earnings which were below expectations, as severe winter weather and inventory issues hampered results. We sold our position in June as we saw better risk/reward opportunities elsewhere.

Lazard Fundamental Long/Short Portfolio

For the period since inception on April 30, 2014 through June 30, 2014, the Lazard Fundamental Long/Short Portfolio’s Institutional shares posted a total return of 0.00%, while Open Shares posted a total return of 0.00%, as compared with the 4.46% return for the S&P 500 Index.

The Portfolio benefited from a long position in medical device maker CareFusion, as shares rose after the company reported quarterly results. A long position in chip maker NXP Semiconductors also contributed to performance, as shares rose amid speculation that the company would supply

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NFC technology for Apple’s new iPhone. The Portfolio also benefited from a long position in pharmaceutical maker Vertex, as shares rose after the release of successful phase 3 trial results for one of the company’s main value-driving cystic fibrosis treatments.

In contrast, the Portfolio was hurt by a long position in utilities and communications contractor MasTec. Shares of the company fell after management lowered its guidance for the current quarter, citing unexpected delays in wireless project spending. We sold our position in June after the announcement, as a reevaluation of our scenarios indicated a higher likelihood of our bear case materializing. A short position in electronic manufacturing services provider Jabil Circuit also hurt returns, as shares rose after the company reported quarterly earnings above expectations, led by strength in its diversified manufacturing services segment. A short position in restaurant reservation services provider OpenTable also hurt returns, as shares rose after Priceline announced plans to acquire the company for $2.6 billion. We covered our position in June following the announcement.

Lazard International Equity Portfolio

For the six months ended June 30, 2014, the Lazard International Equity Portfolio’s Institutional Shares posted a total return of 4.71%, while Open Shares posted a total return of 4.56%, as compared with the 4.78% return for the Morgan Stanley Capital International (MSCI^®) EAFE^® (Europe, Australasia, Far East) Index (the “EAFE Index”).

During the period, stock selection in the consumer discretionary, industrials, and consumer staples sectors was additive to relative returns. Within the consumer discretionary sector, shares of Brazilian education company Estacio performed well on results that exceeded expectations, highlighting increased enrollment. Within the industrials sector, shares of Italian infrastructure company Atlantia performed well amid the recovering European economy, falling Italian bond yields, and results that highlighted increased passenger traffic. In the consumer staples sector, shares of UK based British American Tobacco benefited from results that highlighted increased margins, and on news of potential consolidation within the industry. Lastly, exposure to emerging markets was beneficial to relative returns.

In contrast, stock selection in the health care, financials, and information technology sectors detracted from relative

returns. Within the health care sector, German pharmaceutical company Merck, sold during the period, detracted from relative returns amid news that its highly regarded CFO would be resigning to join a competitor. Within the financials sector, shares of Japanese financial services firm Sumitomo Mitsui Financial fell amid the broad decline in Japanese financial services shares. In the information technology sector, shares of Japanese LCD manufacturer Japan Display, sold during the period, declined on weaker than expected demand.

Lazard International Equity Select Portfolio

For the six months ended June 30, 2014, the Lazard International Equity Select Portfolio’s Institutional Shares posted a total return of 6.56%, while Open Shares posted a total return of 6.23%, as compared with the 5.56% return for the MSCI ACWI^® ex-US (All Country World ex-US) Index.

During the period, stock selection in the consumer discretionary, industrials, and consumer staples sectors was additive to relative returns. Within the consumer discretionary sector, shares of Brazilian education company Estacio performed well on results that exceeded expectations, highlighting increased enrollment. Within the industrials sector, shares of Italian infrastructure company Atlantia performed well amid the recovering European economy, falling Italian bond yields, and results that highlighted increased passenger traffic. In the consumer staples sector, shares of diversified food company Associated British Foods performed strongly after reporting earnings that beat estimates, a dividend increase, and announcing that they would expand their fashion retail segment into the United States. Lastly, stock selection within emerging markets was beneficial to relative returns.

In contrast, low exposure to and stock selection in the outperforming energy sector detracted from relative returns as Chinese coal producer China Shenhua declined amid weaker coal prices, and Norwegian oil services provider Petroleum Geo-Services declined on weak results. Stock selection in the financials and materials sectors also detracted from relative returns. Within the financials sector, shares of Japanese financial services firm Sumitomo Mitsui Financial fell amid the broad decline in Japanese financial services shares. In the materials sector, shares of Chinese cement producer Anhui Conch fell due to cement price declines and demand weakness.

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Lazard International Strategic Equity Portfolio

For the six months ended June 30, 2014, the Lazard International Strategic Equity Portfolio’s Institutional Shares posted a total return of 6.22%, while Open Shares posted a total return of 6.11%, as compared with the 4.78% return for the EAFE Index.

International equity markets rose again in the first half of 2014, despite mixed economic data and lackluster earnings, as investors struggle to find attractive returns in other asset classes and bond yields remain very low. Within the market, there was considerable rotation away from more cyclical areas that performed well last year – for example, information technology, financials, and consumer discretionary stocks – and into more defensive stocks and last year’s laggards, principally energy, health care, and utilities.

The Portfolio outperformed the market in the first half of the year. Broadly, strong stock selection in Japan and emerging markets outweighed negative stock selection in Europe. In the latter region, the Portfolio suffered on a relative basis from not owning certain pharmaceutical companies which benefited from excitement around pipelines and mergers-and-acquisitions, from not owning leveraged utilities that rose as a result of rapidly falling bond yields within the euro zone, and from its low exposure to energy stocks, which benefited from a perception that cash flows for oil majors like Total will improve from here. The portfolio management team broadly remains skeptical of the fundamental investment rationale behind these sector moves.

Elsewhere, stock selection in the consumer sectors was strong. Associated British Foods saw its discount apparel retail business Primark materially rerate as it disclosed its global ambitions, while tobacco company British American Tobacco rose from depressed levels. French auto parts supplier Valeo, the Japanese sportswear company Asics, and the Brazilian education company Estacio all reported strong profits, more than offsetting weaker results from media companies Informa and Pearson, and from Japanese retailer Don Quijote. In financials, Kasikornbank in Thailand and Turkiye Halk Bankasi Anonim Sirketi, a bank in Turkey, recovered from declines driven by recent political events, while Home Capital again defied fears over the Canadian housing market. In industrials, International Consolidated Airlines Group fell on fears of overcapacity in transatlantic

air travel, while Airbus declined after additional costs related to its new models.

Lazard International Small Cap Equity Portfolio

For the six months ended June 30, 2014, the Lazard International Small Cap Equity Portfolio’s Institutional Shares posted a total return of 5.88%, while Open Shares posted a total return of 5.78%, as compared with the 5.50% return for the MSCI EAFE Small Cap^® Index.

The Portfolio finished higher for the period and outperformed its benchmark. Solid stock picking in the materials, health care, and consumer discretionary sectors contributed to the Portfolio’s outperformance. Weaker stock selection in the utilities, financials, and industrials sectors detracted from performance. Stock selection was additive to the Portfolio in continental Europe and the United Kingdom, while poor stock selection in Japan weighed down performance.

Topcon Corporation, a Japanese manufacturer of optical devices, including surveying equipment and ophthalmological equipment, contributed to the positive performance in information technology for the quarter. The company extended its mid-term plan when it posted results in April indicating continuing strong operating profit growth. Topcon is benefitting from new product introductions and management continues to execute on its expansion plans.

Danish company Auriga Industries, in the materials sector, was one of the top contributors to performance. Auriga primarily develops, manufactures, and markets plant protection agents. In May, the company announced very strong results for the first quarter of the year, with extremely robust organic growth as well as an increase in profitability.

NuFlare Technology, a specialized semiconductor manufacturing equipment maker, detracted from performance in the first half. The company has a dominant market share in mask-writing equipment and produces a limited number of units per year. Share performance suffered in the second quarter after the company announced forecasts for the new fiscal year guiding for a deterioration in operating profits due to pricing pressure. We subsequently exited the position as we rotated capital into investments believed to have more attractive and sustainable returns.

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APR Energy, a UK-listed temporary and emergency generator power provider, detracted from returns. APR specializes in providing electricity generating capacity to various locales. The company’s shares traded lower during the period despite no specific news except for the chief financial officer’s resignation and the placement of an interim resource as his substitute.

Lazard Global Equity Select Portfolio

For the six months ended June 30, 2014, the Lazard Global Equity Select Portfolio’s Institutional Shares posted a total return of 3.70%, while Open Shares posted a total return of 3.70%, as compared with the 6.18% return of the MSCI ACWI (All Country World) Index.

Stock selection in the consumer staples sector aided performance. Shares of Molson Coors Brewing rose after the company reported solid quarterly results, driven by strong

volumes in its European business and cost savings. Stock selection in the energy sector also helped returns. Shares of Eastman Chemical rose after the company reported its full year results, which exceeded expectations due to the company’s adhesives and plastics segment.

In contrast, stock selection in the financials sector detracted from performance. Shares of partially state-owned bank Sberbank of Russia fell as the nation’s stocks sold off sharply amid ongoing geopolitical turmoil. We sold our position in March as we felt other opportunities had better risk-reward profiles. Stock selection and allocation in the industrials sector also detracted from performance. Shares of Assa Abloy, the Swedish maker of security locks and doors, performed poorly after an extended period of strong performance amid weakness in the Swedish krona and concerns over poor weather in the US during the first quarter may have weighed on profitability.

Notes to Investment Overviews:

All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of a Portfolio may have been waived or reimbursed by Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager”), State Street Bank and Trust Company, the Fund’s Administrator (“State Street”), or Boston Financial Data Services, Inc., the Fund’s transfer and dividend disbursing agent (“BFDS”); without such waiver/reimbursement of expenses, a Portfolio’s 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 June 30, 2014; 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 a 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 a 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 any 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 (unaudited)

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 June 30, 2014

	One	Five	Since
	Year	Years	Inception	†
Institutional Shares**	23.96%	17.29%	7.33%
Open Shares**	23.44%	16.89%	7.01%
S&P 500 Index	24.60%	18.83%	7.75%
Russell 1000 Value/S&P 500 Linked Index	24.61%	18.21%	6.60%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or State Street; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The Portfolio was previously known as Lazard U.S. Equity Value Portfolio. As of May 31, 2012, the Portfolio changed its name to Lazard U.S. Equity Concentrated Portfolio and changed its investment strategy to invest in primarily equity securities, principally common stocks, of 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.

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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 June 30, 2014

	One	Five	Since
	Year	Years	Inception	†
Institutional Shares**	23.05%	17.27%	6.76%
Open Shares**	22.76%	16.94%	6.46%
R6 Shares**	N/A	N/A	4.92%
S&P 500 Index	24.60%	18.83%	7.40%
			(Institutional and
			Open Shares)
			4.55%
			(R6 Shares)

*	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.
	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 and R6 Shares, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Institutional Shares and Open Shares was December 30, 2004 and for the R6 Shares was May 19, 2014.

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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*

Periods Ended June 30, 2014

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	22.58%	16.88%	7.27%
Open Shares**	22.21%	16.58%	6.98%
Russell Midcap Index	26.85%	22.07%	10.43%

*	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.

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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*

Periods Ended June 30, 2014

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	28.67%	20.19%	9.15%
Open Shares**	28.24%	19.80%	8.80%
Russell 2500 Index	25.58%	21.63%	9.78%
Russell 2000/2500 Linked Index	25.58%	21.63%	9.47%

*	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.

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Lazard Fundamental Long/Short Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Fundamental Long/Short Portfolio, S&P 500 Index and HFRX Equity Hedge^® Index*

 

Total Returns*

Period Ended June 30, 2014

	Since
	Inception	†
Institutional Shares**	0.00%
Open Shares**	0.00%
S&P 500 Index	4.46%
HFRX Equity Hedge Index	1.46%

*	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.
	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 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 HFRX Equity Hedge Index tracks the strategy, also known as long/short equity, that combines core long holdings of equities with short sales of stock or stock index options. 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 April 30, 2014.

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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*

Periods Ended June 30, 2014

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	23.03%	13.41%	7.76%
Open Shares**	22.75%	13.08%	7.44%
EAFE Index	23.57%	11.77%	6.93%

*	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.

Semi-Annual Report  13

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*

Periods Ended June 30, 2014

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	21.47%	12.15%	6.38%
Open Shares**	20.91%	11.79%	6.04%
MSCI ACWI ex-US Index	21.75%	11.11%	7.75%
MSCI EAFE/ACWI ex-US Linked Index	21.75%	10.19%	6.17%

*	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 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.

14  Semi-Annual Report

Lazard International Strategic Equity Portfolio

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

 

Average Annual Total Returns*

Periods Ended June 30, 2014

	Institutional Shares				Open Shares
	One	Five	Since		One	Five	Since
	Year	Years	Inception	†	Year	Years	Inception	†
International Strategic Equity Portfolio**	23.92%	15.78%	8.47%		23.65%	15.50%	6.61%
EAFE Index	23.57%	11.77%	5.61%		23.57%	11.77%	4.18%

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

Semi-Annual Report  15

Lazard International Small Cap Equity Portfolio

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

 

Average Annual Total Returns*

Periods Ended June 30, 2014

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	27.79%	16.41%	7.22%
Open Shares**	27.32%	16.10%	6.91%
MSCI EAFE Small Cap Index	29.08%	15.21%	8.73%

*	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.

16  Semi-Annual Report

Lazard Global Equity Select Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Equity Select Portfolio and MSCI ACWI Index*

 

Total Returns*

Period Ended June 30, 2014

	Since
	Inception	†
Institutional Shares**	3.70%
Open Shares**	3.70%
MSCI ACWI Index	6.18%

*	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.
	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 ACWI Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. 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 31, 2013.

Semi-Annual Report  17

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

Expense Example

As a shareholder in a Portfolio of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from January 1, 2014 through June 30, 2014 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.

	Beginning	Ending	Expenses Paid	Annualized Expense
	Account Value	Account Value	During Period*	Ratio During Period
Portfolio	1/1/14	6/30/14	1/1/14 - 6/30/14	1/1/14 - 6/30/14
US Equity Concentrated
Institutional Shares
Actual	$1,000.00	$1,090.50	$4.25	0.82%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.73	$4.11	0.82%
Open Shares
Actual	$1,000.00	$1,087.50	$6.47	1.25%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.60	$6.26	1.25%
US Strategic Equity
Institutional Shares
Actual	$1,000.00	$1,076.10	$3.86	0.75%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,021.08	$3.76	0.75%
Open Shares
Actual	$1,000.00	$1,075.00	$5.40	1.05%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.59	$5.26	1.05%
R6 Shares**
Actual	$1,000.00	$1,049.20	$0.84	0.70%
Hypothetical	$1,000.00	$1,005.07	$0.84	0.70%

18  Semi-Annual Report

	Beginning	Ending	Expenses Paid	Annualized Expense
	Account Value	Account Value	During Period*	Ratio During Period
Portfolio	1/1/14	6/30/14	1/1/14 - 6/30/14	1/1/14 - 6/30/14
US Mid Cap Equity
Institutional Shares
Actual	$1,000.00	$1,056.10	$5.35	1.05%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.59	$5.26	1.05%
Open Shares
Actual	$1,000.00	$1,054.50	$6.88	1.35%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.10	$6.76	1.35%
US Small-Mid Cap Equity
Institutional Shares
Actual	$1,000.00	$1,085.80	$4.40	0.85%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.58	$4.26	0.85%
Open Shares
Actual	$1,000.00	$1,083.70	$6.15	1.19%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.89	$5.96	1.19%
Fundamental Long/Short†
Institutional Shares
Actual	$1,000.00	$1,000.00	$5.35	3.20%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,003.01	$5.36	3.20%
Open Shares
Actual	$1,000.00	$1,000.00	$6.22	3.72%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,002.14	$6.22	3.72%
International Equity
Institutional Shares
Actual	$1,000.00	$1,047.10	$4.62	0.91%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.28	$4.56	0.91%
Open Shares
Actual	$1,000.00	$1,045.60	$5.98	1.18%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.94	$5.91	1.18%
International Equity Select
Institutional Shares
Actual	$1,000.00	$1,065.60	$5.89	1.15%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.09	$5.76	1.15%
Open Shares
Actual	$1,000.00	$1,062.30	$7.41	1.45%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,017.60	$7.25	1.45%
International Strategic Equity
Institutional Shares
Actual	$1,000.00	$1,062.20	$4.30	0.84%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.63	$4.21	0.84%
Open Shares
Actual	$1,000.00	$1,061.10	$5.47	1.07%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.49	$5.36	1.07%

Semi-Annual Report  19

	Beginning	Ending	Expenses Paid	Annualized Expense
	Account Value	Account Value	During Period*	Ratio During Period
Portfolio	1/1/14	6/30/14	1/1/14 - 6/30/14	1/1/14 - 6/30/14
International Small Cap Equity
Institutional Shares
Actual	$1,000.00	$1,058.80	$5.77	1.13%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.19	$5.66	1.13%
Open Shares
Actual	$1,000.00	$1,057.80	$7.25	1.42%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,017.75	$7.10	1.42%
Global Equity Select
Institutional Shares
Actual	$1,000.00	$1,037.00	$5.56	1.10%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.34	$5.51	1.10%
Open Shares
Actual	$1,000.00	$1,037.00	$7.07	1.40%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,017.85	$7.00	1.40%

*	Expenses are equal to the annualized expense ratio of each Share class multiplied by the average account value over the period, multiplied by 181/365 (to reflect one-half year period).
**	The inception date for the Share class was May 19, 2014.
†	The Portfolio commenced operations on April 30, 2014. The expense ratios include broker expense and dividend expense on securities sold short.

20  Semi-Annual Report

   The Lazard Funds, Inc. Portfolio Holdings Presented by Sector June 30, 2014 (unaudited)

													Lazard
	Lazard			Lazard			Lazard			Lazard			Fundamental
	US Equity			US Strategic			US Mid Cap			US Small-Mid Cap			Long/Short Portfolio
Sector*	Concentrated Portfolio			Equity Portfolio			Equity Portfolio			Equity Portfolio			Long				Short
Consumer Discretionary		25.2	%		15.8	%		20.7	%		17.6	%		14.2	%			-25.7	%
Consumer Staples		13.1			7.2			13.3			—			—				-2.9
Energy		4.0			11.0			4.2			5.3			2.2				-5.3
Financials		2.2			15.0			11.6			22.1			10.6				-15.7
Health Care		27.0			17.5			16.0			8.7			12.1				-16.9
Industrials		—			5.1			9.4			17.7			6.8				-9.7
Information Technology		15.5			23.1			8.1			14.5			13.2				-18.6
Materials		2.0			4.4			9.9			8.5			4.4				-5.2
Telecommunication Services		—			—			—			—			—				—
Utilities		—			—			—			2.9			—				—
Repurchase Agreement		—			—			—			2.7			—				—
Short-Term Investments		11.0			0.9			6.8			—			36.5				—
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%			–100.0	%
	Lazard			Lazard			Lazard			Lazard				Lazard
	International			International Equity			International Strategic			International Small Cap				Global Equity
Sector*	Equity Portfolio			Select Portfolio			Equity Portfolio			Equity Portfolio				Select Portfolio
Consumer Discretionary		18.7	%		12.4	%		22.0	%		23.6	%				9.1	%
Consumer Staples		12.5			12.8			9.5			2.7					9.2
Energy		5.3			5.6			3.2			4.3					4.3
Financials		20.3			18.1			20.4			22.3					21.3
Health Care		12.6			11.8			10.9			8.0					14.4
Industrials		15.8			13.1			14.5			17.1					13.9
Information Technology		2.3			8.3			1.5			12.9					22.1
Materials		5.5			4.7			9.2			6.1					3.9
Telecommunication Services		3.5			6.3			2.2			—					1.2
Utilities		1.6			2.5			2.1			0.8					—
Repurchase Agreement		1.9			—			—			—					—
Short-Term Investments		—			4.4			4.5			2.2					0.6
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%				100.0	%

*  Represents percentage of total investments.

Semi-Annual Report  21

The Lazard Funds, Inc. Portfolios of Investments June 30, 2014 (unaudited)

Description	Shares		Value
Lazard US Equity Concentrated Portfolio
Common Stocks | 88.6%
Alcohol & Tobacco | 7.2%
Molson Coors Brewing Co., Class B		271,042	$	20,100,475
Commercial Services | 0.7%
NeuStar, Inc., Class A (a)		74,920		1,949,418
Energy Services | 4.0%
Transocean, Ltd.		245,285		11,045,184
Financial Services | 2.2%
Janus Capital Group, Inc.		498,565		6,222,091
Food & Beverages | 5.8%
Sysco Corp.		433,515		16,235,137
Health Services | 3.7%
Magellan Health Services, Inc. (a)		163,775		10,193,356
Leisure & Entertainment | 13.8%
Houghton Mifflin Harcourt Co.		517,857		9,922,140
Norwegian Cruise Line Holdings, Ltd. (a)		250,750		7,948,775
The Madison Square Garden Co., Class A (a)		73,380		4,582,581
Viacom, Inc., Class B		184,245		15,979,569
				38,433,065
Medical Products | 9.1%
Baxter International, Inc.		183,945		13,299,223
CareFusion Corp. (a)		276,072		12,243,793
				25,543,016

Description	Shares		Value
Metals & Mining | 2.0%
Silver Wheaton Corp.		213,355	$	5,604,836
Pharmaceutical & Biotechnology | 14.1%
Pfizer, Inc.		631,957		18,756,484
Zoetis, Inc.		635,351		20,502,777
				39,259,261
Retail | 11.3%
Advance Auto Parts, Inc.		212,512		28,672,119
J.C. Penney Co., Inc. (a)		320,755		2,902,833
				31,574,952
Semiconductors & Components | 4.3%
Xerox Corp.		966,460		12,022,762
Technology Hardware | 10.4%
Apple, Inc.		116,947		10,867,885
Cisco Systems, Inc.		725,505		18,028,799
				28,896,684
Total Common Stocks (Identified cost $214,683,937)				247,080,237
Short-Term Investment | 10.9%
State Street Institutional Treasury Money Market Fund (Identified cost $30,430,940)		30,430,940		30,430,940
Total Investments | 99.5% (Identified cost $245,114,877) (b)			$	277,511,177
Cash and Other Assets in Excess of Liabilities | 0.5%				1,464,055
Net Assets | 100.0%			$	278,975,232

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

22  Semi-Annual Report

Description	Shares		Value
Lazard US Strategic Equity Portfolio
Common Stocks | 98.6%
Alcohol & Tobacco | 3.9%
Molson Coors Brewing Co., Class B		71,085	$	5,271,664
Banking | 1.7%
Regions Financial Corp.		207,950		2,208,429
Cable Television | 1.7%
Comcast Corp., Class A		42,875		2,286,524
Chemicals | 1.7%
Eastman Chemical Co.		26,605		2,323,947
Commercial Services | 4.5%
Corrections Corp. of America		67,935		2,231,665
Republic Services, Inc.		33,700		1,279,589
ServiceMaster Global Holdings, Inc.		37,225		678,612
Tyco International, Ltd.		40,800		1,860,480
				6,050,346
Computer Software | 2.2%
Check Point Software Technologies, Ltd. (a)		21,250		1,424,388
Microsoft Corp.		34,775		1,450,117
				2,874,505
Energy Exploration & Production | 4.0%
Apache Corp.		26,900		2,706,678
Devon Energy Corp.		33,775		2,681,735
				5,388,413
Energy Integrated | 3.9%
Chevron Corp.		21,575		2,816,616
Consol Energy, Inc.		51,400		2,367,998
				5,184,614
Energy Services | 3.0%
HollyFrontier Corp.		31,700		1,384,973
Transocean, Ltd.		59,985		2,701,125
				4,086,098
Financial Services | 11.1%
Ally Financial, Inc.		72,850		1,741,844
American Express Co.		31,350		2,974,174
Citigroup, Inc.		56,925		2,681,167
Intercontinental Exchange, Inc.		13,350		2,521,815
Morgan Stanley		74,450		2,406,969
Visa, Inc., Class A		12,100		2,549,591
				14,875,560

Description	Shares		Value
Food & Beverages | 3.2%
Kellogg Co.		13,275	$	872,167
Sysco Corp.		91,040		3,409,448
				4,281,615
Forest & Paper Products | 1.4%
International Paper Co.		35,950		1,814,396
Health Services | 1.1%
UnitedHealth Group, Inc.		17,800		1,455,150
Insurance | 2.4%
The Hartford Financial Services Group, Inc.		58,725		2,102,942
Voya Financial, Inc.		29,100		1,057,494
				3,160,436
Leisure & Entertainment | 5.4%
Bloomin’ Brands, Inc. (a)		29,900		670,657
Norwegian Cruise Line Holdings, Ltd. (a)		48,225		1,528,732
The Madison Square Garden Co., Class A (a)		16,900		1,055,405
Viacom, Inc., Class B		46,100		3,998,253
				7,253,047
Manufacturing | 2.7%
Carpenter Technology Corp.		10,070		636,927
Caterpillar, Inc.		6,925		752,540
Honeywell International, Inc.		16,993		1,579,499
Joy Global, Inc.		10,325		635,814
				3,604,780
Medical Products | 6.3%
Baxter International, Inc.		53,700		3,882,510
CareFusion Corp. (a)		60,200		2,669,870
McKesson Corp.		9,755		1,816,479
				8,368,859
Metals & Glass Containers | 0.8%
Owens-Illinois, Inc. (a)		30,350		1,051,324
Pharmaceutical & Biotechnology | 10.1%
Eli Lilly & Co.		34,225		2,127,768
Pfizer, Inc.		196,764		5,839,955
Zoetis, Inc.		171,319		5,528,464
				13,496,187
Retail | 8.1%
Advance Auto Parts, Inc.		50,004		6,746,540
Dick’s Sporting Goods, Inc.		16,680		776,621
J.C. Penney Co., Inc. (a)		91,275		826,039
Kohl’s Corp.		13,275		699,327
Macy’s, Inc.		30,925		1,794,268
				10,842,795

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

Semi-Annual Report  23

Description	Shares		Value
Lazard US Strategic Equity Portfolio (concluded)
Semiconductors & Components | 2.7%
Intel Corp.		24,050	$	743,145
Maxim Integrated Products, Inc.		20,350		688,033
Xerox Corp.		180,200		2,241,688
				3,672,866
Technology | 2.7%
Citrix Systems, Inc. (a)		16,550		1,035,203
eBay, Inc. N Ap(a)		13,450		673,307
Google, Inc., Class A (a)		1,670		976,399
Google, Inc., Class C (a)		1,700		977,976
				3,662,885
Technology Hardware | 13.5%
Apple, Inc.		53,152		4,939,415
Brocade Communications Systems, Inc.		102,700		944,840
Cisco Systems, Inc.		202,455		5,031,007
EMC Corp.		92,650		2,440,401
Hewlett-Packard Co.		27,100		912,728
NCR Corp. (a)		11,600		407,044
Qualcomm, Inc.		24,275		1,922,580
Teradyne, Inc.		71,025		1,392,090
				17,990,105

Description	Shares		Value
Transportation | 0.5%
American Airlines Group, Inc. (a)		15,175	$	651,918
Total Common Stocks (Identified cost $112,925,792)				131,856,463
Preferred Stock | 0.0%
Automotive | 0.0%
Better Place, Inc., Series B (Identified cost $453,501) (a), (c)		181,401		0
Short-Term Investment | 0.9%
State Street Institutional Treasury Money Market Fund (Identified cost $1,185,928)		1,185,928		1,185,928
Total Investments | 99.5% (Identified cost $114,565,221) (b)			$	133,042,391
Cash and Other Assets in Excess of Liabilities | 0.5%				622,252
Net Assets | 100.0%			$	133,664,643

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

24  Semi-Annual Report

Description	Shares		Value
Lazard US Mid Cap Equity Portfolio
Common Stocks | 93.3%
Alcohol & Tobacco | 7.8%
Molson Coors Brewing Co., Class B		40,675	$	3,016,458
Banking | 1.1%
Regions Financial Corp.		38,300		406,746
Chemicals | 2.2%
Eastman Chemical Co.		9,650		842,928
Commercial Services | 6.9%
Convergys Corp.		38,315		821,474
LifeLock, Inc. (a)		23,325		325,617
NeuStar, Inc., Class A (a)		10,925		284,268
Tyco International, Ltd.		27,250		1,242,600
				2,673,959
Energy Services | 4.2%
Transocean, Ltd.		36,575		1,646,972
Financial Services | 8.0%
Intercontinental Exchange, Inc.		7,785		1,470,586
Janus Capital Group, Inc.		131,575		1,642,056
				3,112,642
Food & Beverages | 5.6%
Sysco Corp.		57,575		2,156,184
Forest & Paper Products | 7.7%
Crown Holdings, Inc. (a)		60,425		3,006,748
Health Services | 4.7%
Magellan Health Services, Inc. (a)		29,250		1,820,520
Insurance | 2.5%
The Hartford Financial Services Group, Inc.		27,175		973,137
Manufacturing | 4.3%
Joy Global, Inc.		27,175		1,673,436

Description	Shares		Value
Medical Products | 6.1%
CareFusion Corp. (a)		53,630	$	2,378,490
Pharmaceutical & Biotechnology | 5.3%
Zoetis, Inc.		63,025		2,033,817
Retail | 19.8%
Advance Auto Parts, Inc.		26,185		3,532,880
Dick’s Sporting Goods, Inc.		22,100		1,028,976
Kohl’s Corp.		28,500		1,501,380
Macy’s, Inc.		28,300		1,641,966
				7,705,202
Semiconductors & Components | 5.2%
NXP Semiconductors NV (a)		18,400		1,217,712
Xerox Corp.		65,625		816,375
				2,034,087
Transportation | 1.9%
XPO Logistics, Inc. (a)		25,525		730,526
Total Common Stocks (Identified cost $33,120,225)				36,211,852
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 | 6.8%
State Street Institutional Treasury Money Market Fund (Identified cost $2,660,596)		2,660,596		2,660,596
Total Investments | 100.1% (Identified cost $37,088,320) (b)			$	38,872,448
Liabilities in Excess of Cash and Other Assets | (0.1)%				(22,945	)
Net Assets | 100.0%			$	38,849,503

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

Semi-Annual Report  25

Description	Shares		Value
Lazard US Small-Mid Cap Equity Portfolio
Common Stocks | 97.8%
Aerospace & Defense | 0.9%
B/E Aerospace, Inc. (a)		29,625	$	2,740,016
Automotive | 1.9%
Modine Manufacturing Co. (a)		223,830		3,523,084
Tenneco, Inc. (a)		36,290		2,384,253
				5,907,337
Banking | 7.1%
East West Bancorp, Inc.		85,005		2,974,325
PacWest Bancorp		134,511		5,806,840
Signature Bank (a)		34,045		4,295,798
United Bankshares, Inc.		140,500		4,542,365
Wintrust Financial Corp.		99,148		4,560,808
				22,180,136
Chemicals | 5.1%
Koppers Holdings, Inc.		71,100		2,719,575
Polypore International, Inc. (a)		47,800		2,281,494
Rockwood Holdings, Inc.		30,895		2,347,711
Taminco Corp. (a)		214,340		4,985,548
Tronox, Ltd., Class A		127,900		3,440,510
				15,774,838
Commercial Services | 6.7%
Applied Industrial Technologies, Inc.		62,700		3,180,771
Blackhawk Network Holdings, Inc. (a)		162,045		4,572,910
Convergys Corp.		133,400		2,860,096
LifeLock, Inc. (a)		130,355		1,819,756
Markit, Ltd.		127,400		3,437,252
MDC Partners, Inc., Class A		136,100		2,924,789
ServiceMaster Global Holdings, Inc.		120,400		2,194,892
				20,990,466
Computer Software | 6.0%
Informatica Corp. (a)		87,770		3,129,001
j2 Global, Inc.		95,120		4,837,803
Red Hat, Inc. (a)		61,735		3,412,093
Rovi Corp. (a)		94,100		2,254,636
TIBCO Software, Inc. (a)		135,170		2,726,379
Web.com Group, Inc. (a)		82,715		2,387,982
				18,747,894
Construction & Engineering | 2.1%
EMCOR Group, Inc.		70,130		3,122,889
Quanta Services, Inc. (a)		94,565		3,270,058
				6,392,947

Description	Shares		Value
Consumer Products | 1.1%
Matthews International Corp., Class A		81,484	$	3,387,290
Electric | 1.5%
CMS Energy Corp.		145,625		4,536,219
Energy | 1.4%
Pattern Energy Group, Inc.		134,390		4,449,653
Energy Exploration & Production | 3.3%
Athlon Energy, Inc.		46,030		2,195,631
EP Energy Corp., Class A		214,500		4,944,225
Memorial Resource Development Corp.		134,800		3,283,728
				10,423,584
Energy Services | 2.0%
Diamond Offshore Drilling, Inc.		59,350		2,945,540
Oceaneering International, Inc.		40,700		3,179,891
				6,125,431
Financial Services | 5.2%
Air Lease Corp.		121,935		4,704,252
Cohen & Steers, Inc.		51,700		2,242,746
Springleaf Holdings, Inc.		186,790		4,847,201
Waddell & Reed Financial, Inc., Class A		70,165		4,391,627
				16,185,826
Forest & Paper Products | 2.1%
KapStone Paper and Packaging Corp. (a)		77,030		2,552,004
Schweitzer-Mauduit International, Inc.		93,895		4,099,456
				6,651,460
Health Services | 5.5%
Brookdale Senior Living, Inc. (a)		130,440		4,348,870
Magellan Health Services, Inc. (a)		49,425		3,076,212
Phibro Animal Health Corp., Class A		198,870		4,365,196
Quintiles Transnational Holdings, Inc. (a)		98,640		5,256,525
				17,046,803
Housing | 1.0%
Taylor Morrison Home Corp., Class A (a)		144,730		3,244,847
Insurance | 2.7%
American Equity Investment Life Holding Co.		152,945		3,762,447
Arch Capital Group, Ltd. (a)		80,765		4,639,141
				8,401,588
Leisure & Entertainment | 4.2%
Bally Technologies, Inc. (a)		45,135		2,966,272
Bloomin’ Brands, Inc. (a)		96,100		2,155,523
Diamond Resorts International, Inc.		160,195		3,727,738
Hyatt Hotels Corp., Class A (a)		71,560		4,363,729
				13,213,262

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

26  Semi-Annual Report

Description	Shares		Value
Lazard US Small-Mid Cap Equity Portfolio (concluded)
Manufacturing | 12.5%
ACCO Brands Corp. (a)		493,380	$	3,162,566
Actuant Corp., Class A		143,570		4,963,215
Altra Industrial Motion Corp.		87,440		3,181,942
Carpenter Technology Corp.		50,410		3,188,432
FLIR Systems, Inc.		97,080		3,371,588
Joy Global, Inc.		33,400		2,056,772
Kennametal, Inc.		64,287		2,975,202
Littelfuse, Inc.		40,745		3,787,248
The Toro Co.		51,100		3,249,960
TriMas Corp. (a)		122,036		4,653,233
Woodward, Inc.		88,315		4,431,647
				39,021,805
Medical Products | 2.2%
CareFusion Corp. (a)		99,475		4,411,716
Sirona Dental Systems, Inc. (a)		30,535		2,517,916
				6,929,632
Metals & Glass Containers | 1.1%
Owens-Illinois, Inc. (a)		100,280		3,473,699
Pharmaceutical & Biotechnology | 1.1%
Aratana Therapeutics, Inc. (a)		116,791		1,823,108
Intrexon Corp.		59,870		1,504,533
				3,327,641
Real Estate | 8.7%
DCT Industrial Trust, Inc.		453,800		3,725,698
Extra Space Storage, Inc. REIT		97,820		5,208,915
Highwoods Properties, Inc.		88,300		3,704,185
Jones Lang LaSalle, Inc.		31,825		4,022,362
Kilroy Realty Corp. REIT		93,095		5,797,956
LaSalle Hotel Properties REIT		134,600		4,750,034
				27,209,150
Retail | 6.1%
Advance Auto Parts, Inc.		39,495		5,328,665
Carter’s, Inc.		43,100		2,970,883
Chico’s FAS, Inc.		197,420		3,348,243
Iconix Brand Group, Inc. (a)		69,805		2,997,427
Steven Madden, Ltd. (a)		124,925		4,284,928
				18,930,146
Semiconductors & Components | 1.9%
Microsemi Corp. (a)		90,600		2,424,456
Xilinx, Inc.		76,260		3,607,861
				6,032,317

Description	Shares		Value
Technology | 1.1%
BroadSoft, Inc. (a)		134,060	$	3,537,843
Technology Hardware | 0.9%
InterDigital, Inc.		56,075		2,680,385
Transportation | 2.4%
Alaska Air Group, Inc.		37,220		3,537,761
Echo Global Logistics, Inc. (a)		199,333		3,821,214
				7,358,975
Total Common Stocks (Identified cost $254,926,393)				304,901,190
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 | 2.7%
State Street Bank and Trust Co., 0.00%, 07/01/14 (Dated 06/30/14, collateralized by $8,385,000 United States Treasury Note, 1.50%, 08/31/18, with a value of $8,468,850) Proceeds of $8,300,000 (Identified cost $8,300,000)	$	8,300	$	8,300,000
Total Investments | 100.5% (Identified cost $263,679,294) (b)			$	313,201,190
Liabilities in Excess of Cash and Other Assets | (0.5)%				(1,513,864	)
Net Assets | 100.0%			$	311,687,326

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

Semi-Annual Report  27

Description	Shares		Value
Lazard Fundamental Long/Short Portfolio
Common Stocks | 97.4%
Agriculture | 2.2%
Monsanto Co.		884	$	110,270
Banking | 5.3%
PacWest Bancorp		2,485		107,278
Regions Financial Corp.		14,694		156,050
				263,328
Chemicals | 4.5%
Eastman Chemical Co.		1,932		168,760
Tronox, Ltd., Class A		2,035		54,742
				223,502
Commercial Services | 3.2%
Convergys Corp.		7,467		160,092
Consumer Products | 1.5%
Mohawk Industries, Inc. (a)		532		73,597
Energy Exploration & Production | 2.3%
EP Energy Corp., Class A		2,590		59,699
Memorial Resource Development Corp.		2,380		57,977
				117,676
Financial Services | 7.8%
American Express Co.		1,773		168,205
Intercontinental Exchange, Inc.		591		111,640
MasterCard, Inc., Class A		724		53,192
Visa, Inc., Class A		261		54,995
				388,032
Health Services | 5.8%
Magellan Health Services, Inc. (a)		1,571		97,779
Quintiles Transnational Holdings, Inc. (a)		2,521		134,344
UnitedHealth Group, Inc.		706		57,716
				289,839
Insurance | 5.3%
The Hartford Financial Services Group, Inc.		4,525		162,040
Voya Financial, Inc.		2,843		103,315
				265,355
Leisure & Entertainment | 5.5%
Viacom, Inc., Class B		2,128		184,562
Wynn Resorts, Ltd.		445		92,364
				276,926

Description	Shares		Value
Manufacturing | 5.8%
Actuant Corp., Class A		2,222	$	76,814
Eaton Corp. PLC		724		55,878
Honeywell International, Inc.		1,068		99,271
Joy Global, Inc.		950		58,501
				290,464
Medical Products | 6.7%
CareFusion Corp. (a)		4,517		200,329
McKesson Corp.		724		134,816
				335,145
Pharmaceutical & Biotechnology | 6.1%
Teva Pharmaceutical Industries, Ltd., Sponsored ADR		2,802		146,881
Vertex Pharmaceuticals, Inc. (a)		624		59,080
Zoetis, Inc.		3,015		97,294
				303,255
Retail | 14.8%
Advance Auto Parts, Inc.		572		77,174
AutoZone, Inc. (a)		98		52,552
CST Brands, Inc.		1,530		52,785
Dick’s Sporting Goods, Inc.		3,625		168,780
Kohl’s Corp.		2,776		146,240
Macy’s, Inc.		2,816		163,384
Ross Stores, Inc.		1,193		78,893
				739,808
Semiconductors & Components | 6.6%
NXP Semiconductors NV (a)		3,355		222,034
Xerox Corp.		8,470		105,367
				327,401
Technology | 3.1%
Citrix Systems, Inc. (a)		2,511		157,063
Technology Hardware | 5.2%
Brocade Communications Systems, Inc.		8,025		73,830
NetApp, Inc.		2,200		80,344
Synopsys, Inc. (a)		2,665		103,455
				257,629
Transportation | 5.7%
American Airlines Group, Inc. (a)		3,931		168,876
Teekay Shipping Corp.		875		54,468
XPO Logistics, Inc. (a)		2,140		61,247
				284,591
Total Common Stocks (Identified cost $4,666,183)				4,863,973

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

28  Semi-Annual Report

Description	Shares			Value
Lazard Fundamental Long/Short Portfolio (continued)
Short-Term Investment | 56.0%
State Street Institutional Treasury Money Market Fund (Identified cost $2,794,401)		2,794,401		$	2,794,401
Securities Sold Short | (53.2)%
Agriculture | (2.0)%
The Scotts Miracle-Gro Co. Class A		(1,729	)		(98,311	)
Banking | (3.6)%
The Bank of New York Mellon Corp.		(1,390	)		(52,097	)
US Bancorp		(1,193	)		(51,681	)
Valley National Bancorp		(2,896	)		(28,700	)
Westamerica BanCorp.		(937	)		(48,986	)
					(181,464	)
Cable Television | (1.6)%
DIRECTV (a)		(925	)		(78,634	)
Commercial Services | (5.6)%
FactSet Research Systems, Inc.		(343	)		(41,256	)
Groupon, Inc. (a)		(4,060	)		(26,877	)
MSC Industrial Direct Co., Inc. Class A		(1,053	)		(100,709	)
The Western Union Co.		(3,146	)		(54,552	)
WW Grainger, Inc.		(212	)		(53,905	)
					(277,299	)
Computer Software | (3.5)%
MercadoLibre, Inc.		(475	)		(45,315	)
SAP SE Sponsored ADR		(1,310	)		(100,870	)
Shutterfly, Inc. (a)		(634	)		(27,300	)
					(173,485	)
Energy Integrated | (0.8)%
PBF Energy, Inc. Class A		(1,580	)		(42,107	)
Energy Services | (2.0)%
Dresser-Rand Group, Inc. (a)		(825	)		(52,577	)
Key Energy Services, Inc. (a)		(5,230	)		(47,802	)
					(100,379	)
Financial Services | (3.7)%
Ocwen Financial Corp. (a)		(1,267	)		(47,006	)
The Goldman Sachs Group, Inc.		(464	)		(77,692	)
WisdomTree Investments, Inc. (a)		(4,788	)		(59,180	)
					(183,878	)

Description	Shares			Value
Forest & Paper Products | (0.8)%
Bemis Co., Inc.		(981	)	$	(39,887	)
Health Services | (2.9)%
Catamaran Corp. (a)		(882	)		(38,949	)
HMS Holdings Corp. (a)		(1,275	)		(26,023	)
Owens & Minor, Inc.		(917	)		(31,160	)
Quest Diagnostics, Inc.		(425	)		(24,943	)
Tenet Healthcare Corp. (a)		(515	)		(24,174	)
					(145,249	)
Insurance | (1.0)%
The Chubb Corp.		(555	)		(51,154	)
Leisure & Entertainment | (1.7)%
Darden Restaurants, Inc.		(752	)		(34,795	)
Scripps Networks Interactive, Inc. Class A		(610	)		(49,495	)
					(84,290	)
Manufacturing | (1.0)%
Deere & Co.		(555	)		(50,255	)
Medical Products | (2.3)%
AmerisourceBergen Corp.		(345	)		(25,068	)
Intuitive Surgical, Inc. (a)		(60	)		(24,708	)
Patterson Cos., Inc.		(630	)		(24,891	)
Waters Corp. (a)		(370	)		(38,643	)
					(113,310	)
Pharmaceutical & Biotechnology | (3.8)%
ACADIA Pharmaceuticals, Inc. (a)		(1,130	)		(25,527	)
Agios Pharmaceuticals, Inc. (a)		(613	)		(28,088	)
Auxilium Pharmaceuticals, Inc. (a)		(1,934	)		(38,796	)
Bio-Rad Laboratories, Inc. Class A (a)		(197	)		(23,583	)
Charles River Laboratories International, Inc. (a)		(1,380	)		(73,857	)
					(189,851	)
Retail | (10.8)%
American Eagle Outfitters, Inc.		(6,538	)		(73,356	)
Bed Bath & Beyond, Inc. (a)		(1,655	)		(94,964	)
Lowe’s Cos., Inc.		(1,647	)		(79,040	)
Lumber Liquidators Holdings, Inc. (a)		(675	)		(51,266	)
PVH Corp.		(396	)		(46,174	)
Staples, Inc.		(3,790	)		(41,084	)
Vitamin Shoppe, Inc. (a)		(1,821	)		(78,339	)
Wal-Mart Stores, Inc.		(1,030	)		(77,322	)
					(541,545	)

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

Semi-Annual Report  29

Description	Shares			Value
Lazard Fundamental Long/Short Portfolio (concluded)
Semiconductors & Components | (2.4)%
Cypress Semiconductor Corp.		(3,530	)	$	(38,512	)
Jabil Circuit, Inc.		(1,922	)		(40,170	)
NVIDIA Corp.		(2,182	)		(40,454	)
					(119,136	)
Technology | (0.6)%
Guidewire Software, Inc. (a)		(715	)		(29,072	)
Technology Hardware | (2.1)%
International Business Machines Corp.		(577	)		(104,593	)

Description	Shares			Value
Transportation | (1.0)%
United Parcel Service, Inc. Class B		(513	)	$	(52,665	)
Total Securities Sold Short (Identified cost $(2,612,226))					(2,656,564	)
Total Investments | 100.2% (Identified cost $4,848,358) (b)				$	5,001,810
Liabilities in Excess of Cash and Other Assets | (0.2)%					(11,058	)
Net Assets | 100.0%				$	4,990,752

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

30  Semi-Annual Report

Description	Shares		Value
Lazard International Equity Portfolio
Common Stocks | 95.5%
Australia | 1.8%
Ansell, Ltd.		124,969	$	2,336,757
James Hardie Industries PLC		197,623		2,579,064
				4,915,821
Austria | 0.9%
UNIQA Insurance Group AG		185,978		2,390,745
Belgium | 2.6%
Anheuser-Busch InBev NV		63,598		7,306,411
Bermuda | 1.2%
Signet Jewelers, Ltd.		29,536		3,260,845
Brazil | 1.5%
Estacio Participacoes SA		317,900		4,208,452
Canada | 2.5%
MacDonald Dettwiler & Associates, Ltd.		40,200		3,282,532
Rogers Communications, Inc., Class B		93,100		3,746,511
				7,029,043
China | 0.9%
Anhui Conch Cement Co., Ltd., Class H		733,000		2,529,902
Denmark | 1.0%
Carlsberg A/S, Class B		24,346		2,622,465
Finland | 1.9%
Sampo Oyj, A Shares		100,813		5,100,699
France | 8.5%
Airbus Group NV		59,410		3,981,275
BNP Paribas SA		65,680		4,455,861
Cap Gemini SA		48,412		3,453,739
Sanofi SA		69,221		7,353,369
Valeo SA		30,811		4,138,369
				23,382,613
Germany | 4.4%
Bayer AG		54,304		7,670,077
Bayerische Motoren Werke AG		20,980		2,660,780
RTL Group SA		16,603		1,846,997
				12,177,854

Description	Shares		Value
Greece | 1.0%
Piraeus Bank SA (a)		1,282,985	$	2,846,003
Ireland | 1.0%
Ryanair Holdings PLC Sponsored ADR (a)		51,400		2,868,120
Israel | 2.1%
Teva Pharmaceutical Industries, Ltd., Sponsored ADR		111,200		5,829,104
Italy | 3.1%
Atlantia SpA		158,462		4,517,566
Eni SpA		152,277		4,166,089
				8,683,655
Japan | 18.6%
AEON Financial Service Co., Ltd.		72,500		1,895,785
Asahi Group Holdings, Ltd.		113,000		3,547,110
Asics Corp.		144,390		3,367,984
Daikin Industries, Ltd.		68,700		4,334,736
Daiwa House Industry Co., Ltd.		236,000		4,892,157
Don Quijote Holdings Co., Ltd.		79,300		4,422,733
Japan Tobacco, Inc.		152,000		5,541,049
KDDI Corp.		94,300		5,751,737
LIXIL Group Corp.		102,200		2,758,154
Makita Corp.		40,200		2,484,103
Seven & I Holdings Co., Ltd.		103,500		4,360,476
Sumitomo Mitsui Financial Group, Inc.		146,300		6,128,989
United Arrows, Ltd.		48,300		1,947,638
				51,432,651
Norway | 0.6%
Petroleum Geo-Services ASA		154,678		1,639,112
Philippines | 1.8%
Alliance Global Group, Inc.		7,367,900		4,911,933
South Korea | 1.1%
Samsung Electronics Co., Ltd. GDR		4,657		3,008,422
Spain | 2.4%
Mediaset Espana Comunicacion SA (a)		212,013		2,472,856
Red Electrica Corporacion SA		46,803		4,281,036
				6,753,892
Sweden | 3.3%
Assa Abloy AB, Class B		70,106		3,567,442
Swedbank AB, A Shares		210,145		5,573,212
				9,140,654

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

Semi-Annual Report  31

Description	Shares		Value
Lazard International Equity Portfolio (concluded)
Switzerland | 7.9%
GAM Holding AG		134,274	$	2,558,898
Glencore Xstrata PLC		824,554		4,593,971
Novartis AG		125,471		11,361,436
Swatch Group AG		5,629		3,399,109
				21,913,414
Thailand | 0.7%
Krung Thai Bank Public Co. Ltd. (d)		3,023,700		1,947,168
Turkey | 0.5%
Koc Holding AS		263,806		1,294,998
United Kingdom | 24.2%
British American Tobacco PLC		104,078		6,194,981
Direct Line Insurance Group PLC		903,100		4,169,935
Informa PLC		472,463		3,873,065
International Consolidated Airlines Group SA (a)		647,810		4,107,592
Ladbrokes PLC		681,159		1,635,527
Lloyds Banking Group PLC (a)		5,324,739		6,766,222
Prudential PLC		315,318		7,236,508
Reed Elsevier PLC		290,981		4,681,057
Rexam PLC		594,421		5,442,512
Rolls-Royce Holdings PLC		290,482		5,314,329
Royal Dutch Shell PLC, A Shares		209,563		8,673,855
Taylor Wimpey PLC		2,068,111		4,034,876
Unilever PLC		106,102		4,813,764
				66,944,223
Total Common Stocks (Identified cost $217,976,926)				264,138,199
Preferred Stock | 2.0%
Germany | 2.0%
Volkswagen AG (Identified cost $5,690,540)		21,386		5,616,643

Description	Principal Amount (000)		Value
Repurchase Agreement | 1.9%
State Street Bank and Trust Co., 0.00%, 07/01/14 (Dated 06/30/14, collateralized by $5,195,000 United States Treasury Note, 1.50%, 08/31/18, with a value of $5,246,950) Proceeds of $5,140,000 (Identified cost $5,140,000)	$	5,140	$	5,140,000
Total Investments | 99.4% (Identified cost $228,807,466) (b)			$	274,894,842
Cash and Other Assets in Excess of Liabilities | 0.6%				1,544,420
Net Assets l 100.0%			$	276,439,262

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

32   Semi-Annual Report

Description	Shares		Value
Lazard International Equity Select Portfolio
Common Stocks | 95.2%
Australia | 1.4%
BHP Billiton, Ltd.		8,151	$	275,927
Belgium | 2.6%
Anheuser-Busch InBev NV		4,391		504,457
Bermuda | 1.2%
Signet Jewelers, Ltd.		2,182		240,898
Brazil | 6.4%
BB Seguridade Participacoes SA		27,100		397,884
Cia de Saneamento Basico do Estado de Sao Paulo		23,200		247,278
Cielo SA		16,036		330,227
Estacio Participacoes SA		22,000		291,242
				1,266,631
China | 3.4%
Anhui Conch Cement Co., Ltd., Class H		67,000		231,246
Baidu, Inc. Sponsored ADR (a)		1,100		205,491
China Shenhua Energy Co., Ltd., Class H		81,500		235,549
				672,286
Denmark | 3.8%
Carlsberg A/S, Class B		1,500		161,575
Novo Nordisk A/S, Class B		12,886		593,080
				754,655
Finland | 1.4%
Sampo Oyj, A Shares		5,629		284,803
France | 4.1%
Airbus Group NV		3,138		210,289
BNP Paribas SA		5,272		357,663
Valeo SA		1,727		231,961
				799,913
Germany | 5.8%
Bayer AG		3,342		472,035
Bayerische Motoren Werke AG		3,133		397,342
SAP SE		3,445		266,052
				1,135,429

Description	Shares		Value
Indonesia | 1.2%
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		5,719	$	238,253
Ireland | 1.1%
Ryanair Holdings PLC Sponsored ADR (a)		3,800		212,040
Israel | 1.8%
Teva Pharmaceutical Industries, Ltd., Sponsored ADR		6,795		356,194
Italy | 3.2%
Atlantia SpA		8,481		241,783
Eni SpA		7,625		208,610
Mediolanum SpA		24,704		190,447
				640,840
Japan | 14.6%
Daikin Industries, Ltd.		3,400		214,528
Daiwa House Industry Co., Ltd.		17,000		352,401
Japan Tobacco, Inc.		9,100		331,734
KDDI Corp.		5,100		311,070
Komatsu, Ltd.		7,200		167,162
Makita Corp.		4,800		296,609
Ryohin Keikaku Co., Ltd.		1,300		147,574
Seven & I Holdings Co., Ltd.		8,717		367,249
SoftBank Corp.		3,200		238,267
Sumitomo Mitsui Financial Group, Inc.		7,876		329,952
Sumitomo Mitsui Trust Holdings, Inc.		27,000		123,400
				2,879,946
Macau | 1.3%
Sands China, Ltd.		34,200		259,245
Norway | 0.6%
Petroleum Geo-Services ASA		11,507		121,939
Philippines | 1.4%
Alliance Global Group, Inc.		413,900		275,933
Russia | 2.2%
Lenta, Ltd. GDR		8,485		109,457
Mobile TeleSystems OJSC Sponsored ADR		9,861		194,656
Sberbank of Russia (d)		54,876		136,483
				440,596

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

Semi-Annual Report  33

Description	Shares		Value
Lazard International Equity Select Portfolio (concluded)
South Africa | 2.3%
Mediclinic International, Ltd.		25,678	$	197,239
Mr Price Group, Ltd.		7,830		133,121
Nampak, Ltd.		35,918		124,252
				454,612
South Korea | 1.4%
Samsung Electronics Co., Ltd.		214		279,609
Spain | 1.3%
Red Electrica Corporacion SA		2,763		252,730
Sweden | 2.7%
Assa Abloy AB, Class B		5,813		295,802
Swedbank AB, A Shares		8,698		230,678
				526,480
Switzerland | 5.6%
Cie Financiere Richemont SA		2,207		231,576
Novartis AG		7,694		696,694
Swatch Group AG		283		170,891
				1,099,161
Taiwan | 2.8%
Taiwan Semiconductor Manufacturing Co., Ltd.		128,341		543,745
Thailand | 0.8%
Kasikornbank Public Co. Ltd.		24,600		155,384
Turkey | 1.9%
Koc Holding AS		26,723		131,180
Turkcell Iletisim Hizmetleri AS (a)		39,243		245,431
				376,611

Description	Shares		Value
United Kingdom | 18.9%
Associated British Foods PLC		5,106	$	266,434
BG Group PLC		8,964		189,461
British American Tobacco PLC		6,860		408,324
Informa PLC		32,794		268,832
Ladbrokes PLC		26,037		62,517
Lloyds Banking Group PLC (a)		294,011		373,604
Prudential PLC		27,233		624,994
Rexam PLC		32,450		297,112
Rolls-Royce Holdings PLC		17,226		315,148
Royal Dutch Shell PLC, A Shares		8,183		338,839
Unilever PLC		7,820		354,787
Wolseley PLC		4,010		219,813
				3,719,865
Total Common Stocks (Identified cost $16,820,334)				18,768,182
Short-Term Investment | 4.4%
State Street Institutional Treasury Money Market Fund (Identified cost $857,858)		857,858		857,858
Total Investments | 99.6% (Identified cost $17,678,192) (b)			$	19,626,040
Cash and Other Assets in Excess of Liabilities | 0.4%				72,072
Net Assets | 100.0%			$	19,698,112

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

34   Semi-Annual Report

Description	Shares		Value
Lazard International Strategic Equity Portfolio
Common Stocks | 91.9%
Australia | 7.7%
Amcor, Ltd.		10,872,384	$	106,929,516
Ansell, Ltd.		4,373,015		81,769,659
Caltex Australia, Ltd.		3,691,614		75,085,303
Insurance Australia Group, Ltd.		6,501,977		35,805,256
James Hardie Industries PLC		5,666,262		73,947,118
				373,536,852
Austria | 1.0%
UNIQA Insurance Group AG		3,688,175		47,411,457
Belgium | 2.1%
Anheuser-Busch InBev NV		886,722		101,870,431
Bermuda | 1.2%
Signet Jewelers, Ltd.		538,194		59,417,910
Brazil | 3.0%
Cia de Saneamento Basico do Estado de Sao Paulo		4,867,300		51,878,214
Estacio Participacoes SA		5,935,100		78,570,570
LPS Brasil Consultoria de Imoveis SA		3,471,700		15,712,605
				146,161,389
Canada | 0.9%
Home Capital Group, Inc.		999,502		44,802,194
Denmark | 1.0%
Topdanmark A/S (a)		1,663,175		50,614,452
Finland | 3.5%
Sampo Oyj, A Shares		3,378,081		170,916,189
France | 3.8%
Airbus Group NV		1,489,390		99,809,320
Valeo SA		627,310		84,256,933
				184,066,253
Germany | 4.9%
Bayer AG		803,232		113,451,158
Fresenius SE & Co. KGaA		361,598		53,920,337
Symrise AG		1,298,099		70,735,109
				238,106,604
Greece | 1.3%
Piraeus Bank SA (a)		29,176,117		64,720,402

Description	Shares		Value
Indonesia | 0.4%
PT Media Nusantara Citra Tbk		84,772,700	$	19,736,200
Ireland | 1.4%
Kerry Group PLC, Class A		918,580		68,990,980
Israel | 1.7%
Teva Pharmaceutical Industries, Ltd., Sponsored ADR		1,595,200		83,620,384
Italy | 1.1%
Mediaset SpA (a)		11,158,716		54,395,494
Japan | 17.2%
AEON Financial Service Co., Ltd.		2,401,600		62,798,859
Asics Corp.		4,784,850		111,609,502
Daikin Industries, Ltd.		1,267,900		80,000,166
Daiwa House Industry Co., Ltd.		2,719,000		56,363,457
Don Quijote Holdings Co., Ltd.		2,227,300		124,221,361
Japan Tobacco, Inc.		2,021,900		73,706,892
KDDI Corp.		1,721,200		104,982,921
Makita Corp.		2,022,900		125,002,260
Park24 Co., Ltd.		2,360,600		42,922,118
Ryohin Keikaku Co., Ltd.		500,900		56,861,458
				838,468,994
Macau | 1.9%
Sands China, Ltd.		12,278,000		93,070,358
Malaysia | 1.1%
Tenaga Nasional Berhad		13,410,600		50,869,233
Philippines | 2.6%
Alliance Global Group, Inc.		96,196,700		64,131,133
GT Capital Holdings, Inc.		2,372,220		47,281,361
LT Group, Inc.		7,588,600		2,566,042
Security Bank Corp.		4,741,030		13,392,188
				127,370,724
Russia | 1.1%
Lenta, Ltd. GDR		3,936,398		50,779,534
South Africa | 2.4%
Mediclinic International, Ltd.		7,082,866		54,405,202
Nampak, Ltd.		18,473,979		63,907,634
				118,312,836
Spain | 1.2%
Mediaset Espana Comunicacion SA (a)		4,962,052		57,875,885

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

Semi-Annual Report  35

Description	Shares		Value
Lazard International Strategic Equity Portfolio (concluded)
Sweden | 1.7%
Assa Abloy AB, Class B		1,577,856	$	80,291,405
Switzerland | 7.1%
Cie Financiere Richemont SA		616,029		64,638,587
GAM Holding AG		2,560,589		48,797,873
Novartis AG		1,468,185		132,944,582
Panalpina Welttransport Holding AG		327,562		51,860,290
Swatch Group AG		76,396		46,132,226
				344,373,558
Taiwan | 1.5%
Taiwan Semiconductor Manufacturing Co., Ltd.		17,187,000		72,816,515
Thailand | 0.5%
Kasikornbank Public Co. Ltd.		3,476,500		21,959,097
Turkey | 0.7%
Turkiye Halk Bankasi AS		4,723,435		35,449,172
United Kingdom | 17.9%
AMEC PLC		3,699,765		76,931,092
Associated British Foods PLC		913,199		47,651,254
British American Tobacco PLC		1,820,210		108,343,423
Croda International PLC		401,692		15,130,898
Informa PLC		12,946,310		106,128,736
International Consolidated Airlines Group SA (a)		14,219,409		90,161,523
Lloyds Banking Group PLC (a)		108,090,391		137,352,012
Prudential PLC		5,275,181		121,064,725
Rexam PLC		11,779,720		107,854,986
Rolls-Royce Holdings PLC		3,361,715		61,502,118
				872,120,767
Total Common Stocks (Identified cost $3,841,374,573)				4,472,125,269

Description	Shares		Value
Preferred Stock | 1.9%
Germany | 1.9%
Volkswagen AG  (Identified cost $94,057,283)		359,578	$	94,436,615
Short-Term Investment | 4.5%
State Street Institutional Treasury Money Market Fund (Identified cost $218,938,909)		218,938,909		218,938,909
Right | 0.0%
Philippines | 0.0%
Security Bank Corp. Expires 07/04/14 (Identified cost $0)		5,024,130		0
Total Investments | 98.3% (Identified cost $4,154,370,765) (b)			$	4,785,500,793
Cash and Other Assets in Excess of Liabilities | 1.7%				83,840,777
Net Assets | 100.0%			$	4,869,341,570

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

36  Semi-Annual Report

Description	Shares		Value
Lazard International Small Cap Equity Portfolio
Common Stocks | 96.9%
Australia | 6.1%
ALS Ltd.		74,899	$	625,746
Ansell, Ltd.		42,238		789,795
iSelect, Ltd. (a)		550,629		597,098
James Hardie Industries PLC		38,670		504,660
Macquarie Atlas Roads Group		293,828		906,003
Pact Group Holdings, Ltd.		220,568		713,387
Super Retail Group, Ltd.		52,180		416,258
				4,552,947
Austria | 0.9%
UNIQA Insurance Group AG		50,890		654,190
Belgium | 3.4%
Arseus NV		21,406		1,225,650
Kinepolis Group NV (a)		6,903		1,311,031
				2,536,681
Brazil | 1.5%
Brasil Insurance Participacoes e Administracao SA		120,700		587,248
Grendene SA		88,400		552,525
				1,139,773
Canada | 4.2%
Alaris Royalty Corp.		28,700		777,849
Altus Group, Ltd.		42,000		902,938
Entertainment One, Ltd. (a)		137,587		729,946
Genworth MI Canada, Inc.		20,700		737,367
				3,148,100
China | 0.9%
Greatview Aseptic Packaging Co., Ltd.		965,000		659,901
Denmark | 2.3%
Auriga Industries A/S, Class B (a)		18,382		941,913
Topdanmark A/S (a)		25,569		778,127
				1,720,040
France | 3.8%
Gaztransport Et Technigaz SA		13,972		910,868
Ingenico SA		12,383		1,077,557
Plastic Omnium SA		26,049		817,888
				2,806,313

Description	Shares		Value
Germany | 7.8%
Aurelius AG		23,508	$	858,816
CompuGroup Medical AG		36,837		1,049,676
CTS Eventim AG		37,984		1,084,180
NORMA Group SE		18,551		1,026,363
SHW AG		11,761		663,579
Wirecard AG		26,822		1,158,014
				5,840,628
Ireland | 1.5%
Greencore Group PLC		252,853		1,149,338
Italy | 3.7%
Azimut Holding SpA		43,117		1,111,135
EI Towers SpA (a)		16,275		880,272
Telit Communications PLC (a)		215,479		796,545
				2,787,952
Japan | 23.6%
Ain Pharmaciez, Inc.		17,400		839,041
Anritsu Corp.		74,600		838,012
Asahi Co., Ltd.		56,000		806,515
Avex Group Holdings, Inc.		43,500		766,473
Don Quijote Holdings Co., Ltd.		14,300		797,542
Doshisha Co., Ltd.		51,200		901,136
JAFCO Co., Ltd.		22,800		997,029
Misumi Group, Inc.		28,800		792,316
Park24 Co., Ltd.		34,900		634,577
Rinnai Corp.		9,600		926,785
Santen Pharmaceutical Co., Ltd.		16,290		916,569
Ship Healthcare Holdings, Inc.		21,400		749,914
Suruga Bank, Ltd.		66,300		1,286,667
Temp Holdings Co., Ltd.		27,060		889,490
Topcon Corp.		50,200		1,159,548
United Arrows, Ltd.		19,100		770,184
USS Co., Ltd.		71,400		1,218,603
Wacom Co., Ltd.		106,022		603,866
Yumeshin Holdings Co., Ltd.		110,800		1,044,509
Zuiko Corp.		12,200		690,055
				17,628,831
Malaysia | 0.9%
Silverlake Axis, Ltd.		680,000		654,423
Netherlands | 2.9%
Aalberts Industries NV		32,296		1,054,495
Frank’s International NV		35,200		865,920
IMCD Group NV		7,900		227,167
				2,147,582

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

Semi-Annual Report  37

Description	Shares		Value
Lazard International Small Cap Equity Portfolio (concluded)
Norway | 0.8%
Petroleum Geo-Services ASA		54,486	$	577,384
Russia | 0.6%
Globaltrans Investment PLC Sponsored GDR		41,447		474,568
Singapore | 1.0%
XP Power, Ltd.		28,604		714,223
Sweden | 2.1%
Indutrade AB		14,572		680,450
Intrum Justitia AB		29,281		873,844
				1,554,294
Switzerland | 2.7%
Cembra Money Bank AG		7,848		495,589
GAM Holding AG		40,567		773,097
Kardex AG		14,956		749,655
				2,018,341
Taiwan | 3.4%
GeoVision, Inc.		116,000		588,586
Makalot Industrial Co., Ltd.		111,000		600,392
Radiant Opto-Electronics Corp.		166,920		715,579
Sinmag Equipment Corp.		112,000		630,183
				2,534,740
Turkey | 0.7%
Turkiye Sinai Kalkinma Bankasi AS		619,522		505,887
United Kingdom | 21.0%
Abcam PLC		75,346		489,999
Aberdeen Asset Management PLC		109,737		852,442
APR Energy PLC		52,421		583,136
Ashtead Group PLC		68,340		1,023,374
Card Factory PLC		167,461		590,381
Dignity PLC		33,496		785,926
Elementis PLC		149,212		664,706

Description	Shares		Value
Foxtons Group PLC		145,521	$	747,881
Hansteen Holdings PLC REIT		435,390		765,990
Hunting PLC		56,871		835,083
IG Group Holdings PLC		129,594		1,303,000
Markit, Ltd.		30,900		833,682
Provident Financial PLC		22,326		872,687
Rightmove PLC		24,044		882,232
RPC Group PLC		79,503		853,786
Spectris PLC		15,528		589,957
Synergy Health PLC		30,475		735,384
Taylor Wimpey PLC		399,640		779,696
Workspace Group PLC REIT		91,040		888,093
Zoopla Property Group PLC		145,005		572,012
				15,649,447
United States | 1.1%
Samsonite International SA		240,600		793,163
Total Common Stocks (Identified cost $55,874,849)				72,248,746
Preferred Stock | 1.1%
Brazil | 1.1%
Banco ABC Brasil SA (Identified cost $738,285)		130,580		803,751
Short-Term Investment | 2.2%
State Street Institutional Treasury Money Market Fund (Identified cost $1,648,797)		1,648,797		1,648,797
Total Investments | 100.2% (Identified cost $58,261,931) (b)			$	74,701,294
Liabilities in Excess of Cash and Other Assets | (0.2)%				(115,195	)
Net Assets | 100.0%			$	74,586,099

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

38  Semi-Annual Report

Description	Shares		Value
Lazard Global Equity Select Portfolio
Common Stocks | 97.1%
Belgium | 2.8%
Anheuser-Busch InBev NV		2,641	$	303,409
Brazil | 0.6%
Cia Hering		6,169		62,095
China | 0.9%
Baidu, Inc. Sponsored ADR (a)		540		100,877
Denmark | 4.2%
Novo Nordisk A/S, Class B		7,210		331,841
Topdanmark A/S (a)		3,800		115,643
				447,484
Finland | 1.2%
Sampo Oyj, A Shares		2,630		133,067
Georgia | 0.7%
Bank of Georgia Holdings PLC		1,783		71,708
Germany | 2.5%
Continental AG		929		215,172
Symrise AG		1,078		58,742
				273,914
Greece | 0.8%
Piraeus Bank SA (a)		40,621		90,108
Indonesia | 0.3%
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		879		36,619
Japan | 5.6%
Daiwa House Industry Co., Ltd.		11,050		229,061
Mitsubishi Estate Co., Ltd.		8,035		198,367
Park24 Co., Ltd.		2,515		45,729
Sumitomo Mitsui Trust Holdings, Inc.		28,145		128,633
				601,790
Macau | 0.5%
Sands China, Ltd.		7,200		54,578
Netherlands | 1.2%
NXP Semiconductors NV (a)		1,915		126,735

Description	Shares		Value
Peru | 1.2%
Credicorp, Ltd.		798	$	124,065
Philippines | 0.5%
Alliance Global Group, Inc.		84,711		56,474
Russia | 2.4%
Magnit OJSC Sponsored GDR		1,593		93,987
Mobile TeleSystems OJSC Sponsored ADR		4,956		97,832
Yandex NV Class A (a)		1,805		64,330
				256,149
South Africa | 1.2%
Life Healthcare Group Holdings Pte, Ltd.		33,229		129,635
South Korea | 1.9%
Samsung Electronics Co., Ltd.		153		199,907
Spain | 0.5%
Applus Services SA		2,526		52,229
Sweden | 2.0%
Assa Abloy AB, Class B		4,126		209,957
Switzerland | 4.8%
Novartis AG		2,959		267,938
Panalpina Welttransport Holding AG		688		108,926
Tyco International, Ltd.		3,025		137,940
				514,804
Taiwan | 1.0%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		4,805		102,779
Thailand | 0.9%
Kasikornbank Public Co. Ltd.		15,540		98,157
United Kingdom | 5.4%
International Consolidated Airlines Group SA (a)		22,950		145,520
Lloyds Banking Group PLC (a)		80,002		101,660
Rexam PLC		11,895		108,911
Unilever PLC		5,020		227,753
				583,844
United States | 54.0%
American Express Co.		2,406		228,257
Apple, Inc.		3,639		338,172

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

Semi-Annual Report  39

Description	Shares		Value
Lazard Global Equity Select Portfolio (concluded)
AutoZone, Inc. (a)		194	$	104,031
Bristol-Myers Squibb Co.		2,445		118,607
Citigroup, Inc.		5,254		247,464
Consol Energy, Inc.		4,517		208,098
CVS Caremark Corp.		1,375		103,634
Eastman Chemical Co.		1,238		108,139
Eaton Corp. PLC		1,809		139,619
EMC Corp.		7,387		194,574
Google, Inc., Class A (a)		207		121,027
Google, Inc., Class C (a)		207		119,083
Honeywell International, Inc.		2,673		248,455
Intel Corp.		5,517		170,475
Intercontinental Exchange, Inc.		731		138,086
Joy Global, Inc.		1,859		114,477
Kellogg Co.		1,760		115,632
Macy’s, Inc.		1,247		72,351
MasterCard, Inc., Class A		1,985		145,838
McKesson Corp.		638		118,802
Microsoft Corp.		3,935		164,090
Molson Coors Brewing Co., Class B		1,739		128,964
Monsanto Co.		1,095		136,590
Pfizer, Inc.		3,544		105,186
Qualcomm, Inc.		1,317		104,306
Quintiles Transnational Holdings, Inc. (a)		2,040		108,712
Realogy Holdings Corp. (a)		2,268		85,526
Red Hat, Inc. (a)		1,795		99,210
Regions Financial Corp.		10,070		106,943
Ross Stores, Inc.		1,692		111,892
Schlumberger, Ltd.		2,101		247,813

Description	Shares		Value
The Hartford Financial Services Group, Inc.		4,489	$	160,751
United Technologies Corp.		1,869		215,776
UnitedHealth Group, Inc.		2,157		176,335
Vertex Pharmaceuticals, Inc. (a)		705		66,749
Viacom, Inc., Class B		2,834		245,793
Visa, Inc., Class A		815		171,729
Xerox Corp.		9,485		117,993
Zoetis, Inc.		3,097		99,940
				5,809,119
Total Common Stocks (Identified cost $9,933,836)				10,439,503
Preferred Stock | 0.9%
Germany | 0.9%
Volkswagen AG (Identified cost $102,737)		382		100,326
Short-Term Investment | 0.6%
State Street Institutional Treasury Money Market Fund (Identified cost $63,843)		63,843		63,843
Total Investments | 98.6% (Identified cost $10,100,416) (b)			$	10,603,672
Cash and Other Assets in Excess of Liabilities | 1.4%				154,167
Net Assets | 100.0%			$	10,757,839

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

40  Semi-Annual Report

   The Lazard Funds, Inc. Notes to Portfolios of Investments June 30, 2014 (unaudited)

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

Portfolio	Aggregate  Cost		Aggregate Gross  Unrealized  Appreciation		Aggregate Gross  Unrealized  Depreciation		Net Unrealized  Appreciation
US Equity Concentrated	$	245,114,877	$	34,215,967	$	1,819,667	$	32,396,300
US Strategic Equity		114,565,221		19,703,416		1,226,246		18,477,170
US Mid Cap Equity		37,088,320		3,682,185		1,898,057		1,784,128
US Small-Mid Cap Equity		263,679,294		51,813,205		2,291,309		49,521,896
Fundamental Long/Short		4,848,358		253,170		99,718		153,452
International Equity		228,807,466		47,552,473		1,465,097		46,087,376
International Equity Select		17,678,192		2,108,009		160,161		1,947,848
International Strategic Equity		4,154,370,765		648,212,895		17,082,867		631,130,028
International Small Cap Equity		58,261,931		19,005,047		2,565,684		16,439,363
Global Equity Select Portfolio		10,100,416		587,859		84,603		503,256

(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.

Semi-Annual Report   41

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		—	%		—	%		—	%		1.3	%		1.3	%
Alcohol & Tobacco		9.1			7.1			5.9			—			4.0
Automotive		4.5			3.2			3.6			2.0			2.9
Banking		7.6			6.8			3.7			2.8			5.8
Chemicals		—			—			1.8			1.2			1.6
Commercial Services		0.7			2.8			0.3			15.7			2.6
Computer Software		—			2.4			—			0.8			4.0
Construction & Engineering		—			—			—			2.6			—
Consumer Products		2.1			3.5			4.9			4.1			—
Diversified		2.2			2.1			1.3			—			0.5
Electric		1.5			1.3			1.0			—			—
Energy Integrated		4.6			4.9			1.6			1.1			1.9
Energy Services		0.6			0.6			1.6			1.9			2.3
Financial Services		4.1			1.9			5.1			12.8			9.6
Food & Beverages		—			1.3			2.4			1.5			1.1
Forest & Paper Products		2.0			2.1			5.7			3.0			1.0
Health Services		—			1.0			2.2			4.5			3.9
Household & Personal Products		1.7			1.8			—			—			2.1
Housing		6.1			2.9			2.7			1.7			2.1
Insurance		6.8			7.6			8.7			4.5			3.8
Leisure & Entertainment		6.8			4.5			9.3			1.9			3.2
Manufacturing		7.1			6.1			9.3			9.1			8.6
Medical Products		—			—			—			1.6			1.1
Metals & Mining		1.7			1.4			—			—			—
Pharmaceutical & Biotechnology		11.6			10.8			6.8			3.4			9.2
Real Estate		—			—			—			3.2			1.8
Retail		5.6			5.1			8.3			6.2			5.1
Semiconductors & Components		1.1			4.2			1.5			5.3			6.7
Technology		1.2			1.2			—			0.9			2.2
Technology Hardware		1.2			—			—			3.1			5.9
Telecommunications		3.4			5.0			2.1			—			1.3
Transportation		4.2			2.3			2.9			1.8			2.4
Water		—			1.3			1.1			—			—
Subtotal		97.5			95.2			93.8			98.0			98.0
Repurchase Agreement		1.9			—			—			—			—
Short-Term Investments		—			4.4			4.5			2.2			0.6
Total Investments		99.4	%		99.6	%		98.3	%		100.2	%		98.6	%

* Industry classifications may be different than those used for compliance monitoring purposes.

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

42   Semi-Annual Report

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Semi-Annual Report   43

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

June 30, 2014	Lazard US Equity Concentrated Portfolio		Lazard US Strategic Equity Portfolio
ASSETS
Investments in securities, at value	$	277,511,177	$	133,042,391
Cash		—		—
Foreign currency		—		—
Receivables for:
Capital stock sold		103,333		25,672
Dividends and interest		229,907		168,616
Investments sold		1,484,377		2,020,905
Amount due from Investment Manager (Note 3)		—		—
Deferred offering costs (Note 2(h))		—		—
Total assets		279,328,794		135,257,584
LIABILITIES
Investments sold short, at value (proceeds received $2,612,226)		—		—
Payables for:
Management fees		156,206		58,609
Accrued distribution fees		508		1,612
Accrued directors’ fees		1,475		835
Investments purchased		—		1,384,295
Capital stock redeemed		152,091		112,321
Dividends on securities sold short		—		—
Other accrued expenses and payables		43,282		35,269
Total liabilities		353,562		1,592,941
Net assets	$	278,975,232	$	133,664,643
NET ASSETS
Paid in capital	$	222,830,678	$	103,073,589
Undistributed net investment income (loss)		1,061,280		687,571
Accumulated net realized gain (loss)		22,686,974		11,426,313
Net unrealized appreciation (depreciation) on:
Investments		32,396,300		18,477,170
Foreign currency		—		—
Securities sold short		—		—
Net assets	$	278,975,232	$	133,664,643
Institutional Shares
Net assets	$	276,490,604	$	110,254,119
Shares of capital stock outstanding*		20,135,127		8,202,000
Net asset value, offering and redemption price per share	$	13.73	$	13.44
Open Shares
Net assets	$	2,484,628	$	7,756,377
Shares of capital stock outstanding*		180,136		575,954
Net asset value, offering and redemption price per share	$	13.79	$	13.47
R6 Shares
Net assets		—	$	15,654,147
Shares of capital stock outstanding*		—		1,164,629
Net asset value, offering and redemption price per share		—	$	13.44
Cost of investments in securities	$	245,114,877	$	114,565,221
Cost of foreign currency	$	—	$	—

* $0.001 par value, 6,300,000,000 shares authorized for the Portfolios in total.

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

44  Semi-Annual Report

Lazard US Mid Cap Equity Portfolio			Lazard US Small-Mid Cap Equity Portfolio		Lazard Fundamental Long/Short Portfolio			Lazard International Equity Portfolio			Lazard International Equity Select Portfolio
$	38,872,448		$	313,201,190	$	7,658,374		$	274,894,842		$	19,626,040
	—			195		—			807			—
	—			—		—			688,637			53,330
	11,876			39,462		—			1,172,473			11,095
	28,667			219,217		4,304			493,654			31,948
	—			1,614,648		100,963			57,811			4,794
	—			—		22,171			—			3,260
	—			—		68,511			—			—
	38,912,991			315,074,712		7,854,323			277,308,224			19,730,467
	—			—		2,656,564			—			—
	14,720			189,887		—			169,378			—
	6,509			3,154		51			11,878			698
	451			2,261		37			1,601			159
	—			3,060,318		80,649			489,507			11
	14,276			88,165		—			147,832			1,874
	—			—		2,813			—			—
	27,532			43,601		123,457			48,766			29,613
	63,488			3,387,386		2,863,571			868,962			32,355
$	38,849,503		$	311,687,326	$	4,990,752		$	276,439,262		$	19,698,112
$	79,494,648		$	208,570,356	$	4,995,995		$	242,368,908		$	19,183,487
	93,546			57,615		(14,179	)		5,925,749			450,254
	(42,522,819	)		53,537,459		(144,516	)		(17,954,840	)		(1,884,311	)
	1,784,128			49,521,896		197,790			46,087,376			1,947,848
	—			—		—			12,069			834
	—			—		(44,338	)		—			—
$	38,849,503		$	311,687,326	$	4,990,752		$	276,439,262		$	19,698,112
$	7,212,095		$	295,979,088	$	4,630,412		$	216,848,702		$	16,271,733
	411,564			17,072,664		462,990			11,601,166			1,564,994
$	17.52		$	17.34	$	10.00		$	18.69		$	10.40
$	31,637,408		$	15,708,238	$	360,340		$	59,590,560		$	3,426,379
	1,838,791			940,905		36,044			3,166,099			329,617
$	17.21		$	16.69	$	10.00		$	18.82		$	10.40
	—			—		—			—			—
	—			—		—			—			—
	—			—		—			—			—
$	37,088,320		$	263,679,294	$	7,460,584		$	228,807,466		$	17,678,192
$	—		$	—	$	—		$	684,970		$	53,180

Semi-Annual Report  45

June 30, 2014	Lazard International Strategic Equity Portfolio		Lazard International Small Cap Equity Portfolio
ASSETS
Investments in securities, at value	$	4,785,500,793	$	74,701,294
Cash		—		—
Foreign currency		15,318,179		25,510
Receivables for:
Capital stock sold		115,844,061		39,666
Dividends and interest		8,667,552		162,128
Investments sold		1,392,564		—
Amount due from Investment Manager (Note 3)		—		—
Deferred offering costs (Note 2(h))		—		—
Total assets		4,926,723,149		74,928,598
LIABILITIES
Payables for:
Management fees		2,885,593		46,648
Accrued distribution fees		278,169		4,358
Accrued directors’ fees		22,245		489
Investments purchased		52,613,879		238,375
Capital stock redeemed		1,284,041		7,901
Line of credit outstanding		—		—
Other accrued expenses and payables		297,652		44,728
Total liabilities		57,381,579		342,499
Net assets	$	4,869,341,570	$	74,586,099
NET ASSETS
Paid in capital	$	4,050,120,917	$	122,146,600
Undistributed net investment income		50,340,097		1,163,199
Accumulated net realized gain (loss)		137,595,522		(65,163,930	)
Net unrealized appreciation on:
Investments		631,130,028		16,439,363
Foreign currency		155,006		867
Net assets	$	4,869,341,570	$	74,586,099
Institutional Shares
Net assets	$	3,424,713,154	$	53,213,520
Shares of capital stock outstanding*		222,928,750		4,766,902
Net asset value, offering and redemption price per share	$	15.36	$	11.16
Open Shares
Net assets	$	1,444,628,416	$	21,372,579
Shares of capital stock outstanding*		93,436,198		1,913,040
Net asset value, offering and redemption price per share	$	15.46	$	11.17
Cost of investments in securities	$	4,154,370,765	$	58,261,931
Cost of foreign currency	$	15,250,105	$	25,490

* $0.001 par value, 6,300,000,000 shares authorized for the Portfolios in total.

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

46  Semi-Annual Report

Lazard Global Equity Select Portfolio
$	10,603,672
	13,817
	17,922
	—
	9,345
	1,163,278
	15,508
	54,834
	11,878,376
	—
	66
	64
	142
	8,333
	1,100,000
	11,932
	1,120,537
$	10,757,839
$	10,187,576
	47,615
	19,379
	503,256
	13
$	10,757,839
$	10,617,340
	1,023,424
$	10.37
$	140,499
	13,555
$	10.37
$	10,100,416
$	17,832

Semi-Annual Report  47

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

	Lazard				Lazard
	US Equity				US Strategic Equity
For the Period Ended June 30, 2014	Concentrated Portfolio				Portfolio
Investment Income (Loss)
Income
Dividends*		$	2,108,297			$	1,161,432
Expenses
Management fees (Note 3)			881,878				432,518
Distribution fees (Open Shares)			2,988				9,464
Shareholders’ services			13,246				16,653
Custodian fees			30,012				34,975
Administration fees			49,992				37,144
Registration fees			30,394				14,877
Shareholders’ reports			3,549				3,830
Professional services			20,202				19,080
Directors’ fees and expenses			3,062				1,623
Organization expenses			—				—
Amortization of offering costs (Note 2(h))			—				—
Other†			4,260				3,264
Total gross expenses before expenses on securities sold short			1,039,583				573,428
Broker expense on securities sold short			—				—
Dividend expense on securities sold short			—				—
Total gross expenses			1,039,583				573,428
Management fees waived and expenses reimbursed			(4,281	)			(97,522	)
Administration and shareholders’ services fees waived			—				(2,045	)
Total net expenses			1,035,302				473,861
Net investment income (loss)			1,072,995				687,571
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Securities Sold Short
Net realized gain (loss) on:
Investments			13,976,366				9,736,149
Foreign currency			—				—
Total net realized gain (loss) on investments and foreign currency			13,976,366				9,736,149
Net change in unrealized appreciation (depreciation) on:
Investments			7,826,940				(950,872	)
Foreign currency			—				—
Securities sold short			—				—
Total net change in unrealized appreciation (depreciation) on investments, foreign currency and securities sold short			7,826,940				(950,872	)
Net realized and unrealized gain on investments, foreign currency and securities sold short			21,803,306				8,785,277
Net increase (decrease) in net assets resulting from operations		$	22,876,301			$	9,472,848
* Net of foreign withholding taxes of		$	4,415			$	—
† Includes interest on line of credit of		$	—			$	193

(a) From the Portfolio’s commencement of operations on April 30, 2014.

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

48  Semi-Annual Report

Lazard				Lazard				Lazard				Lazard			Lazard
US Mid Cap Equity				US Small-Mid Cap				Fundamental Long/Short				International Equity			International Equity
Portfolio				Equity Portfolio				Portfolio (a)				Portfolio			Select Portfolio
	$	245,331			$	1,507,368			$	9,372			$	4,799,710		$	387,444
		150,904				1,252,563				10,237				919,421			96,172
		39,341				18,507				81				62,599			4,136
		13,416				14,287				6,188				15,206			13,154
		30,067				51,095				19,918				77,473			49,985
		28,819				58,197				8,251				49,313			27,059
		14,876				14,876				996				17,460			15,106
		6,029				8,936				2,490				5,616			2,668
		18,713				21,280				12,947				22,791			20,301
		565				4,539				37				3,099			313
		—				—				648				—			—
		—				—				13,747				—			—
		2,525				5,473				512				4,290			2,424
		305,255				1,449,753				76,052				1,177,268			231,318
		—				—				4,345				—			—
		—				—				6,695				—			—
		305,255				1,449,753				87,092				1,177,268			231,318
		(46,780	)			—				(56,346	)			—			(96,239	)
		—				—				(7,195	)			—			—
		258,475				1,449,753				23,551				1,177,268			135,079
		(13,144	)			57,615				(14,179	)			3,622,442			252,365
		1,189,084				39,853,025				(144,516	)			7,950,830			2,277,715
		—				—				—				455			(2,462	)
		1,189,084				39,853,025				(144,516	)			7,951,285			2,275,253
		816,402				(14,146,510	)			197,790				463,194			(1,176,813	)
		—				—				—				4,283			313
		—				—				(44,338	)			—			—
		816,402				(14,146,510	)			153,452				467,477			(1,176,500	)
		2,005,486				25,706,515				8,936				8,418,762			1,098,753
	$	1,992,342			$	25,764,130			$	(5,243	)		$	12,041,204		$	1,351,118
	$	—			$	5,171			$	128			$	511,358		$	41,995
	$	194			$	1,090			$	—			$	—		$	1,334

Semi-Annual Report  49

	Lazard				Lazard
	International Strategic				International Small Cap
For the Six Months Ended June 30, 2014	Equity Portfolio				Equity Portfolio
Investment Income
Income
Dividends		$	67,993,680			$	951,413
Interest			—				10
Total investment income*			67,993,680				951,423
Expenses
Management fees (Note 3)			14,563,745				271,124
Distribution fees (Open Shares)			1,408,177				25,566
Shareholders’ services			506,557				13,897
Custodian fees			423,011				53,699
Administration fees			268,568				32,025
Registration fees			150,982				14,877
Shareholders’ reports			104,592				3,464
Professional services			54,743				19,668
Directors’ fees and expenses			44,780				958
Amortization of Offering costs (Note 2(h))			—				—
Other†			33,866				2,711
Total gross expenses			17,559,021				437,989
Management fees waived and expenses reimbursed			—				—
Administration and shareholders’ services fees waived			—				—
Total net expenses			17,559,021				437,989
Net investment income			50,434,659				513,434
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency
Net realized gain (loss) on:
Investments			95,668,733				4,504,094
Foreign currency			(610,797	)			(6,004	)
Total net realized gain on investments and foreign currency			95,057,936				4,498,090
Net change in unrealized appreciation (depreciation) on:
Investments			123,235,385				(815,466	)
Foreign currency			65,546				1,612
Total net change in unrealized appreciation (depreciation) on investments and foreign currency			123,300,931				(813,854	)
Net realized and unrealized gain on investments and foreign currency			218,358,867				3,684,236
Net increase in net assets resulting from operations		$	268,793,526			$	4,197,670
* Net of foreign withholding taxes of		$	5,931,765			$	102,097
† Includes interest on line of credit of		$	—			$	119

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

50  Semi-Annual Report

Lazard
Global Equity Select
Portfolio
	$	86,059
		—
		86,059
		29,483
		242
		21,156
		34,701
		25,566
		4,978
		5,754
		20,604
		85
		51,792
		1,971
		196,332
		(136,292	)
		(21,596	)
		38,444
		47,615
		20,151
		(772	)
		19,379
		500,113
		(111	)
		500,002
		519,381
	$	566,996
	$	5,175
	$	134

Semi-Annual Report  51

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

	Lazard US Equity Concentrated Portfolio						Lazard US Strategic Equity Portfolio
	Six Months Ended			Year Ended			Six Months Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(unaudited)			2013			(unaudited)			2013
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	1,072,995		$	2,345,216		$	687,571		$	1,275,781
Net realized gain (loss) on investments		13,976,366			29,171,119			9,736,149			15,343,960
Net change in unrealized appreciation (depreciation) on investments and securities sold short		7,826,940			17,668,016			(950,872	)		9,731,533
Net increase (decrease) in net assets resulting from operations		22,876,301			49,184,351			9,472,848			26,351,274
Distributions to shareholders
From net investment income
Institutional Shares		—			(2,284,658	)		—			(1,407,263	)
Open Shares		—			(13,057	)		—			(74,902	)
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	)		—			(4,604,174	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		40,644,907			119,589,275			15,974,091			31,619,015
Open Shares		1,041,321			4,308,999			845,528			5,948,214
R6 Shares		—			—			15,497,353			—
Net proceeds from reinvestment of distributions
Institutional Shares		—			15,230,240			—			4,326,965
Open Shares		—			180,317			—			214,293
Cost of shares redeemed
Institutional Shares		(15,296,964	)		(55,107,495	)		(30,210,895	)		(15,093,331	)
Open Shares		(949,873	)		(3,193,058	)		(1,297,978	)		(8,517,223	)
R6 Shares		—			—			(589,541	)		—
Net increase (decrease) in net assets from capital stock transactions		25,439,391			81,008,278			218,558			18,497,933
Redemption fees (Note 2(k))
Institutional Shares		562			459			23			142
Open Shares		14			—			—			—
Net increase in net assets from redemption fees		576			459			23			142
Total increase (decrease) in net assets		48,316,268			108,588,981			9,691,429			40,245,175
Net assets at beginning of period		230,658,964			122,069,983			123,973,214			83,728,039
Net assets at end of period*	$	278,975,232		$	230,658,964		$	133,664,643		$	123,973,214
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	1,061,280		$	(11,715	)	$	687,571		$	—
(a) The Portfolio commenced operations on April 30, 2014.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		18,141,803			11,338,350			9,312,694			7,451,909
Shares sold		3,191,582			9,739,154			1,260,580			2,789,363
Shares issued to shareholders from reinvestment of distributions		—			1,227,254			—			351,870
Shares redeemed		(1,198,258	)		(4,162,955	)		(2,371,274	)		(1,280,448	)
Net increase (decrease)		1,993,324			6,803,453			(1,110,694	)		1,860,785
Shares outstanding at end of period		20,135,127			18,141,803			8,202,000			9,312,694
Open Shares
Shares outstanding at beginning of period		172,050			64,143			610,440			828,181
Shares sold		81,733			345,072			66,691			488,099
Shares issued to shareholders from reinvestment of distributions		—			14,437			—			17,379
Shares redeemed		(73,647	)		(251,602	)		(101,177	)		(723,219	)
Net increase (decrease)		8,086			107,907			(34,486	)		(217,741	)
Shares outstanding at end of period		180,136			172,050			575,954			610,440
R6 Shares*
Shares outstanding at beginning of period								—
Shares sold								1,209,391
Shares redeemed								(44,762	)
Net increase								1,164,629
Shares outstanding at end of period								1,164,629

* The inception date for the Share class was May 19, 2014.

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

52  Semi-Annual Report

Lazard US Mid Cap Equity Portfolio						Lazard US Small-Mid Cap Equity Portfolio						Lazard Fundamental Long/Short Portfolio
Six Months Ended			Year Ended			Six Months Ended			Year Ended			Period Ended
June 30, 2014			December 31,			June 30, 2014			December 31,			June 30, 2014 (a)
(unaudited)			2013			(unaudited)			2013			(unaudited)
$	(13,144	)	$	166,862		$	57,615		$	159,503		$	(14,179	)
	1,189,084			16,729,461			39,853,025			52,614,411			(144,516	)
	816,402			(136,345	)		(14,146,510	)		48,010,929			153,452
	1,992,342			16,759,978			25,764,130			100,784,843			(5,243	)
	—			(71,565	)		—			(240,294	)		—
	—			(107,406	)		—			(11,612	)		—
	—			—			—			(39,984,635	)		—
	—			—			—			(1,743,640	)		—
	—			(178,971	)		—			(41,980,181	)		—
	253,993			1,958,798			3,663,902			10,080,594			4,636,553
	1,711,028			4,834,306			1,491,339			3,168,805			359,442
	—			—			—			—			—
	—			61,917			—			39,918,663			—
	—			103,233			—			1,720,581			—
	(5,084,877	)		(27,902,776	)		(85,805,490	)		(42,186,235	)		—
	(5,399,654	)		(22,564,119	)		(1,657,041	)		(9,116,783	)		—
	—			—			—			—			—
	(8,519,510	)		(43,508,641	)		(82,307,290	)		3,585,625			4,995,995
	2,981			5,813			252			155			—
	34			651			5			842			—
	3,015			6,464			257			997			—
	(6,524,153	)		(26,921,170	)		(56,542,903	)		62,391,284			4,990,752
	45,373,656			72,294,826			368,230,229			305,838,945			—
$	38,849,503		$	45,373,656		$	311,687,326		$	368,230,229		$	4,990,752
$	93,546		$	106,690		$	57,615		$	—		$	(14,179	)
	705,811			2,461,019			22,132,447			21,804,765			—
	15,216			139,534			225,306			644,554			462,990
	—			4,230			—			2,532,936			—
	(309,463	)		(1,898,972	)		(5,285,089	)		(2,849,808	)		—
	(294,247	)		(1,755,208	)		(5,059,783	)		327,682			462,990
	411,564			705,811			17,072,664			22,132,447			462,990
	2,063,556			3,358,349			951,721			1,237,189			—
	105,486			340,607			95,232			212,424			36,044
	—			7,159			—			113,139			—
	(330,251	)		(1,642,559	)		(106,048	)		(611,031	)		—
	(224,765	)		(1,294,793	)		(10,816	)		(285,468	)		36,044
	1,838,791			2,063,556			940,905			951,721			36,044

Semi-Annual Report  53

	Lazard International Equity Portfolio						Lazard International Equity Select Portfolio
	Six Months Ended			Year Ended			Six Months Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(unaudited)			2013			(unaudited)			2013
Increase (Decrease) in Net Assets
Operations
Net investment income	$	3,622,442		$	2,453,644		$	252,365		$	211,954
Net realized gain on investments and foreign currency		7,951,285			7,599,559			2,275,253			262,423
Net change in unrealized appreciation (depreciation) on investments and foreign currency		467,477			24,751,149			(1,176,500	)		1,893,907
Net increase in net assets resulting from operations		12,041,204			34,804,352			1,351,118			2,368,284
Distributions to shareholders
From net investment income
Institutional Shares		—			(85,440	)		—			(29,819	)
Open Shares		—			(19,238	)		—			(6,781	)
From net realized gains
Institutional Shares		—			—			—			—
Open Shares		—			—			—			—
Net decrease in net assets resulting from distributions		—			(104,678	)		—			(36,600	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		46,980,094			68,935,302			7,287,947			10,476,940
Open Shares		17,798,840			19,759,582			38,840			580,812
Net proceeds from reinvestment of distributions
Institutional Shares		—			65,632			—			26,558
Open Shares		—			10,642			—			6,511
Cost of shares redeemed
Institutional Shares		(24,673,326	)		(21,128,631	)		(11,412,034	)		(765,224	)
Open Shares		(3,279,359	)		(9,472,789	)		(258,849	)		(460,659	)
Net increase (decrease) in net assets from capital stock transactions		36,826,249			58,169,738			(4,344,096	)		9,864,938
Redemption fees (Note 2(k))
Institutional Shares		662			1,593			34,964			499
Open Shares		2,332			360			8			—
Net increase in net assets from redemption fees		2,994			1,953			34,972			499
Total increase (decrease) in net assets		48,870,447			92,871,365			(2,958,006	)		12,197,121
Net assets at beginning of period		227,568,815			134,697,450			22,656,118			10,458,997
Net assets at end of period*	$	276,439,262		$	227,568,815		$	19,698,112		$	22,656,118
* Includes undistributed (distributions in excess of) net investment income of	$	5,925,749		$	2,303,307		$	450,254		$	197,889
(a) The Portfolio commenced operations on December 31, 2013.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		10,372,906			7,380,561			1,969,195			889,319
Shares sold		2,598,370			4,296,937			753,125			1,161,787
Shares issued to shareholders from reinvestment of distributions		—			4,074			—			2,971
Shares redeemed		(1,370,110	)		(1,308,666	)		(1,157,326	)		(84,882	)
Net increase (decrease)		1,228,260			2,992,345			(404,201	)		1,079,876
Shares outstanding at end of period		11,601,166			10,372,906			1,564,994			1,969,195
Open Shares
Shares outstanding at beginning of period		2,353,781			1,713,621			351,946			337,112
Shares sold		993,498			1,218,460			3,877			64,670
Shares issued to shareholders from reinvestment of distributions		—			654			—			725
Shares redeemed		(181,180	)		(578,954	)		(26,206	)		(50,561	)
Net increase (decrease)		812,318			640,160			(22,329	)		14,834
Shares outstanding at end of period		3,166,099			2,353,781			329,617			351,946

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

54  Semi-Annual Report

Lazard International Strategic Equity Portfolio						Lazard International Small Cap Equity Portfolio						Lazard Global Equity Select Portfolio
Six Months Ended			Year Ended			Six Months Ended			Year Ended			Six Months Ended			Period Ended
June 30, 2014			December 31,			June 30, 2014			December 31,			June 30, 2014			December 31,
(unaudited)			2013			(unaudited)			2013			(unaudited)			2013 (a)
$	50,434,659		$	19,943,838		$	513,434		$	652,354		$	47,615		$	—
	95,057,936			129,960,469			4,498,090			11,845,709			19,379			—
	123,300,931			323,682,385			(813,854	)		3,644,151			500,002			3,267
	268,793,526			473,586,692			4,197,670			16,142,214			566,996			3,267
	—			(15,225,169	)		—			(124,377	)		—			—
	—			(3,665,191	)		—			(53,950	)		—			—
	—			(12,783,804	)		—			—			—			—
	—			(4,645,191	)		—			—			—			—
	—			(36,319,355	)		—			(178,327	)		—			—
	1,022,477,445			1,297,418,651			4,149,838			11,104,859			10,194,554			1,900,000
	592,600,681			559,094,341			2,749,864			2,656,728			131,248			100,000
	—			23,504,798			—			123,461			—			—
	—			7,112,344			—			52,095			—			—
	(143,383,536	)		(185,860,486	)		(5,463,262	)		(16,302,054	)		(2,035,248	)		—
	(93,964,098	)		(125,201,877	)		(2,196,538	)		(5,480,910	)		(103,100	)		—
	1,377,730,492			1,576,067,771			(760,098	)		(7,845,821	)		8,187,454			2,000,000
	6,808			32,289			427			—			122			—
	12,685			10,305			1,258			266			—			—
	19,493			42,594			1,685			266			122			—
	1,646,543,511			2,013,377,702			3,439,257			8,118,332			8,754,572			2,003,267
	3,222,798,059			1,209,420,357			71,146,842			63,028,510			2,003,267			—
$	4,869,341,570		$	3,222,798,059		$	74,586,099		$	71,146,842		$	10,757,839		$	2,003,267
$	50,340,097		$	(94,562	)	$	1,163,199		$	649,765		$	47,615		$	—
	162,756,915			76,287,527			4,886,987			5,583,338			190,000			—
	69,943,237			98,516,379			388,575			1,135,839			1,030,474			190,000
	—			1,652,995			—			13,204			—			—
	(9,771,402	)		(13,699,986	)		(508,660	)		(1,845,394	)		(197,050	)		—
	60,171,835			86,469,388			(120,085	)		(696,351	)		833,424			190,000
	222,928,750			162,756,915			4,766,902			4,886,987			1,023,424			190,000
	59,609,458			26,753,257			1,859,232			2,163,219			10,000			—
	40,192,825			41,717,662			257,587			292,353			13,555			10,000
	—			496,337			—			5,554			—			—
	(6,366,085	)		(9,357,798	)		(203,779	)		(601,894	)		(10,000	)		—
	33,826,740			32,856,201			53,808			(303,987	)		3,555			10,000
	93,436,198			59,609,458			1,913,040			1,859,232			13,555			10,000

Semi-Annual Report  55

   The Lazard Funds, Inc. Financial Highlights

LAZARD US EQUITY CONCENTRATED PORTFOLIO

	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	12.59		$	10.71		$	9.24		$	9.56		$	8.62		$	7.00
Income (loss) from investment operations:
Net investment income (a)		0.05			0.14			0.20			0.15			0.10			0.12
Net realized and unrealized gain (loss)		1.09			3.02			1.37			(0.30	)		0.93			1.62
Total from investment operations		1.14			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)		—	(b)		—
Net asset value, end of period	$	13.73		$	12.59		$	10.71		$	9.24		$	9.56		$	8.62
Total Return (c)		9.05	%		29.59	%		16.83	%		-1.47	%		12.00	%		24.81	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	276,491		$	228,478		$	121,379		$	11,108		$	13,066		$	8,464
Ratios to average net assets (d):
Net expenses		0.82	%		0.85	%		0.93	%		0.75	%		0.97	%		1.00	%
Gross expenses		0.82	%		0.85	%		1.28	%		2.27	%		2.76	%		3.44	%
Net investment income		0.86	%		1.16	%		1.94	%		1.59	%		1.19	%		1.60	%
Portfolio turnover rate		36	%		108	%		116	%		53	%		53	%		62	%
	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of period	$	12.68		$	10.77		$	9.30		$	9.61		$	8.67		$	7.04
Income (loss) from investment operations:
Net investment income (a)		0.03			0.09			0.15			0.12			0.08			0.09
Net realized and unrealized gain (loss)		1.08			3.04			1.39			(0.29	)		0.93			1.64
Total from investment operations		1.11			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)		—			—	(b)
Net asset value, end of period	$	13.79		$	12.68		$	10.77		$	9.30		$	9.61		$	8.67
Total Return (c)		8.75	%		29.21	%		16.51	%		-1.77	%		11.62	%		24.49	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,485		$	2,181		$	691		$	312		$	294		$	300
Ratios to average net assets (d):
Net expenses		1.25	%		1.25	%		1.19	%		1.05	%		1.27	%		1.30	%
Gross expenses		1.61	%		1.87	%		4.84	%		6.49	%		7.28	%		5.52	%
Net investment income		0.43	%		0.74	%		1.51	%		1.30	%		0.88	%		1.15	%
Portfolio turnover rate		36	%		108	%		116	%		53	%		53	%		62	%

†	Unaudited.
(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. 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.

56  Semi-Annual Report

LAZARD US STRATEGIC EQUITY PORTFOLIO

	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	12.49		$	10.11		$	9.03		$	8.97		$	8.02		$	6.26
Income from investment operations:
Net investment income (a)		0.07			0.14			0.14			0.12			0.07			0.08
Net realized and unrealized gain		0.88			2.72			1.17			0.02			0.97			1.68
Total from investment operations		0.95			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)		—	(b)		—
Net asset value, end of period	$	13.44		$	12.49		$	10.11		$	9.03		$	8.97		$	8.02
Total Return (c)		7.61	%		28.38	%		14.56	%		1.65	%		13.13	%		28.12	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	110,254		$	116,323		$	75,327		$	64,239		$	71,207		$	66,153
Ratios to average net assets (d):
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		1.01	%		1.05	%
Gross expenses		0.90	%		0.93	%		0.99	%		1.00	%		1.06	%		1.09	%
Net investment income		1.12	%		1.21	%		1.40	%		1.29	%		0.88	%		1.26	%
Portfolio turnover rate		38	%		71	%		60	%		48	%		49	%		76	%
	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of period	$	12.53		$	10.14		$	9.04		$	8.97		$	8.02		$	6.28
Income from investment operations:
Net investment income (a)		0.05			0.11			0.11			0.09			0.05			0.07
Net realized and unrealized gain		0.89			2.73			1.16			0.03			0.97			1.67
Total from investment operations		0.94			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 period	$	13.47		$	12.53		$	10.14		$	9.04		$	8.97		$	8.02
Total Return (c)		7.50	%		28.04	%		14.10	%		1.42	%		12.79	%		27.71	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	7,756		$	7,650		$	8,401		$	8,478		$	10,024		$	8,945
Ratios to average net assets (d):
Net expenses		1.05	%		1.05	%		1.05	%		1.05	%		1.31	%		1.35	%
Gross expenses		1.31	%		1.33	%		1.37	%		1.36	%		1.44	%		1.39	%
Net investment income		0.82	%		0.95	%		1.10	%		0.99	%		0.59	%		0.96	%
Portfolio turnover rate		38	%		71	%		60	%		48	%		49	%		76	%

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

Semi-Annual Report  57

LAZARD US STRATEGIC EQUITY PORTFOLIO

	For the Period
Selected data for a share of capital	5/19/14* to
stock outstanding throughout the period	6/30/14†
R6 Shares
Net asset value, beginning of period	$	12.81
Income from investment operations:
Net investment income (a)		0.03
Net realized and unrealized gain		0.60
Total from investment operations		0.63
Net asset value, end of period	$	13.44
Total Return (c)		4.92	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	15,654
Ratios to average net assets (d):
Net expenses		0.70	%
Gross expenses		1.04	%
Net investment income		1.58	%
Portfolio turnover rate		38	%

*	The inception date for R6 Shares was May 19, 2014.
†	Unaudited.
(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 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.

58  Semi-Annual Report

LAZARD US MID CAP EQUITY PORTFOLIO

	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	16.58		$	12.52		$	11.87		$	12.61		$	10.31		$	7.50
Income (loss) from investment operations:
Net investment income (a)		0.01			0.07			0.05			0.05			0.10			0.08
Net realized and unrealized gain (loss)		0.92			4.04			0.63			(0.75	)		2.31			2.81
Total from investment operations		0.93			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		0.01			—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	17.52		$	16.58		$	12.52		$	11.87		$	12.61		$	10.31
Total Return (c)		5.61	%		32.95	%		5.76	%		-5.58	%		23.43	%		38.49	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	7,212		$	11,706		$	30,803		$	91,740		$	126,626		$	143,267
Ratios to average net assets (d):
Net expenses		1.05	%		1.05	%		0.98	%		0.93	%		0.91	%		0.91	%
Gross expenses		1.40	%		1.19	%		0.98	%		0.93	%		0.91	%		0.91	%
Net investment income		0.13	%		0.46	%		0.40	%		0.37	%		0.90	%		0.90	%
Portfolio turnover rate		33	%		133	%		102	%		83	%		75	%		77	%
	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of period	$	16.32		$	12.35		$	11.72		$	12.45		$	10.18		$	7.40
Income (loss) from investment operations:
Net investment income (loss) (a)		(0.01	)		0.02			0.03			0.01			0.07			0.05
Net realized and unrealized gain (loss)		0.90			4.00			0.61			(0.74	)		2.28			2.78
Total from investment operations		0.89			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)		—	(b)
Net asset value, end of period	$	17.21		$	16.32		$	12.35		$	11.72		$	12.45		$	10.18
Total Return (c)		5.45	%		32.59	%		5.44	%		-5.84	%		23.09	%		38.26	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	31,637		$	33,668		$	41,492		$	52,048		$	69,551		$	69,737
Ratios to average net assets (d):
Net expenses		1.35	%		1.35	%		1.26	%		1.19	%		1.17	%		1.17	%
Gross expenses		1.55	%		1.43	%		1.26	%		1.19	%		1.17	%		1.17	%
Net investment income (loss)		-0.12	%		0.16	%		0.21	%		0.11	%		0.66	%		0.64	%
Portfolio turnover rate		33	%		133	%		102	%		83	%		75	%		77	%

†	Unaudited.
(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. 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.

Semi-Annual Report  59

LAZARD US SMALL-MID CAP EQUITY PORTFOLIO

	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	15.97		$	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)		1.37			4.70			1.77			(1.45	)		2.70			4.22
Total from investment operations		1.37			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)		—	(b)		—
Net asset value, end of period	$	17.34		$	15.97		$	13.29		$	11.82		$	14.55		$	11.80
Total Return (c)		8.58	%		35.81	%		15.45	%		-9.83	%		23.67	%		55.47	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	295,979		$	353,565		$	289,855		$	167,042		$	238,901		$	56,042
Ratios to average net assets (d):
Net expenses		0.85	%		0.86	%		0.88	%		0.90	%		1.00	%		1.22	%
Gross expenses		0.85	%		0.86	%		0.88	%		0.90	%		1.00	%		1.23	%
Net investment income (loss)		0.05	%		0.06	%		0.41	%		0.08	%		0.68	%		-0.12	%
Portfolio turnover rate		46	%		101	%		92	%		110	%		114	%		195	%
	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of period	$	15.41		$	12.92		$	11.52		$	14.26		$	11.56		$	7.46
Income (loss) from investment operations:
Net investment income (loss) (a)		(0.02	)		(0.04	)		—	(b)		(0.03	)		0.03			(0.04	)
Net realized and unrealized gain (loss)		1.30			4.56			1.73			(1.42	)		2.67			4.14
Total from investment operations		1.28			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)		—	(b)
Net asset value, end of period	$	16.69		$	15.41		$	12.92		$	11.52		$	14.26		$	11.56
Total Return (c)		8.37	%		35.47	%		14.97	%		-10.09	%		23.36	%		54.96	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	15,708		$	14,665		$	15,984		$	20,039		$	21,620		$	19,531
Ratios to average net assets (d):
Net expenses		1.19	%		1.20	%		1.21	%		1.21	%		1.34	%		1.51	%
Gross expenses		1.19	%		1.20	%		1.21	%		1.21	%		1.34	%		1.52	%
Net investment income (loss)		–0.28	%		–0.27	%		0.01	%		–0.23	%		0.21	%		–0.40	%
Portfolio turnover rate		46	%		101	%		92	%		110	%		114	%		195	%

†	Unaudited.
(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. 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.

60  Semi-Annual Report

LAZARD FUNDAMENTAL LONG/SHORT PORTFOLIO

	For the Period
Selected data for a share of capital	4/30/14* to
stock outstanding throughout the period	6/30/14†
Institutional Shares
Net asset value, beginning of period	$	10.00
Income (loss) from investment operations:
Net investment loss (a)		(0.03	)
Net realized and unrealized gain		0.03
Total from investment operations		—
Net asset value, end of period	$	10.00
Total Return (b)		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	4,630
Ratios to average net assets (c):
Net expenses (d)		3.20	%
Gross expenses (d)		11.49	%
Net investment loss		-1.91	%
Portfolio turnover rate:
Excluding securities sold short		19	%
Including securities sold short		246	%

	For the Period
Selected data for a share of capital	4/30/14* to
stock outstanding throughout the period	6/30/14†
Open Shares
Net asset value, beginning of period	$	10.00
Income (loss) from investment operations:
Net investment loss (a)		(0.04	)
Net realized and unrealized gain		0.04
Total from investment operations		—
Net asset value, end of period	$	10.00
Total Return (b)		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	360
Ratios to average net assets (c):
Net expenses (d)		3.72	%
Gross expenses (d)		21.00	%
Net investment loss		-2.52	%
Portfolio turnover rate:
Excluding securities sold short		19	%
Including securities sold short		246	%

*	The Portfolio commenced operations on April 30, 2014.
†	Unaudited.
(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.
(d)	Expense ratios include broker expense and dividend expense on securities sold short of 1.50% for Institutional Shares and 1.77% for Open Shares.

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

Semi-Annual Report  61

LAZARD INTERNATIONAL EQUITY PORTFOLIO

	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	17.85		$	14.78		$	12.49		$	13.81		$	13.14		$	10.50
Income (loss) from investment operations:
Net investment income (a)		0.26			0.23			0.25			0.27			0.21			0.26
Net realized and unrealized gain (loss)		0.58			2.85			2.56			(1.25	)		0.82			2.38
Total from investment operations		0.84			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)		—	(b)
Net asset value, end of period	$	18.69		$	17.85		$	14.78		$	12.49		$	13.81		$	13.14
Total Return (c)		4.71	%		20.84	%		22.70	%		-7.17	%		8.04	%		25.19	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	216,849		$	185,199		$	109,088		$	86,880		$	127,485		$	139,070
Ratios to average net assets (d):
Net expenses		0.91	%		0.95	%		1.02	%		1.03	%		0.98	%		0.99	%
Gross expenses		0.91	%		0.95	%		1.02	%		1.03	%		0.98	%		0.99	%
Net investment income		2.97	%		1.42	%		1.85	%		1.99	%		1.63	%		2.33	%
Portfolio turnover rate		15	%		43	%		48	%		39	%		53	%		66	%
	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net assets, beginning of period (in thousands)	$	18.00		$	14.94		$	12.59		$	13.91		$	13.24		$	10.60
Income (loss) from investment operations:
Net investment income (a)		0.26			0.19			0.21			0.24			0.16			0.22
Net realized and unrealized gain (loss)		0.56			2.88			2.57			(1.26	)		0.83			2.42
Total from investment operations		0.82			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)		—	(b)		—
Net asset value, end of period	$	18.82		$	18.00		$	14.94		$	12.59		$	13.91		$	13.24
Total Return (c)		4.56	%		20.55	%		22.30	%		-7.42	%		7.65	%		24.91	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	59,591		$	42,370		$	25,610		$	18,699		$	28,670		$	19,520
Ratios to average net assets (d):
Net expenses		1.18	%		1.23	%		1.32	%		1.33	%		1.29	%		1.27	%
Gross expenses		1.18	%		1.23	%		1.32	%		1.33	%		1.29	%		1.27	%
Net investment income		2.88	%		1.18	%		1.49	%		1.78	%		1.25	%		1.98	%
Portfolio turnover rate		15	%		43	%		48	%		39	%		53	%		66	%

†	Unaudited.
(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. 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.

62  Semi-Annual Report

LAZARD INTERNATIONAL EQUITY SELECT PORTFOLIO

	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	9.76		$	8.51		$	7.18		$	7.99		$	7.70		$	6.39
Income (loss) from investment operations:
Net investment income (a)		0.11			0.12			0.12			0.13			0.14			0.17
Net realized and unrealized gain (loss)		0.51			1.15			1.43			(0.70	)		0.49			1.16
Total from investment operations		0.62			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		0.02			—	(b)		—	(b)		—	(b)		—			—	(b)
Net asset value, end of period	$	10.40		$	9.76		$	8.51		$	7.18		$	7.99		$	7.70
Total Return (c)		6.56	%		14.93	%		21.59	%		-7.14	%		8.49	%		20.86	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	16,272		$	19,212		$	7,571		$	4,519		$	3,614		$	3,925
Ratios to average net assets (d):
Net expenses		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Gross expenses		1.96	%		2.45	%		4.17	%		4.66	%		5.08	%		3.46	%
Net investment income		2.27	%		1.33	%		1.55	%		1.72	%		1.80	%		2.52	%
Portfolio turnover rate		44	%		36	%		46	%		55	%		75	%		67	%
	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of period	$	9.79		$	8.57		$	7.20		$	8.02		$	7.72		$	6.41
Income (loss) from investment operations:
Net investment income (a)		0.10			0.10			0.12			0.11			0.12			0.14
Net realized and unrealized gain (loss)		0.51			1.14			1.42			(0.72	)		0.49			1.17
Total from investment operations		0.61			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)		—	(b)
Net asset value, end of period	$	10.40		$	9.79		$	8.57		$	7.20		$	8.02		$	7.72
Total Return (c)		6.23	%		14.48	%		21.23	%		-7.41	%		8.29	%		20.49	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	3,426		$	3,444		$	2,888		$	2,463		$	3,056		$	4,530
Ratios to average net assets (d)
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Gross expenses		2.55	%		3.03	%		4.77	%		5.12	%		5.31	%		3.62	%
Net investment income		2.02	%		1.08	%		1.55	%		1.43	%		1.56	%		2.11	%
Portfolio turnover rate		44	%		36	%		46	%		55	%		75	%		67	%

†	Unaudited.
(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. 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.

Semi-Annual Report  63

LAZARD INTERNATIONAL STRATEGIC EQUITY PORTFOLIO

	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	14.46		$	11.71		$	9.46		$	10.63		$	9.41		$	7.51
Income (loss) from investment operations:
Net investment income (a)		0.19			0.14			0.15			0.16			0.13			0.20
Net realized and unrealized gain (loss)		0.71			2.79			2.21			(1.19	)		1.22			1.88
Total from investment operations		0.90			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)		—	(b)
Net asset value, end of period	$	15.36		$	14.46		$	11.71		$	9.46		$	10.63		$	9.41
Total Return (c)		6.22	%		25.02	%		25.00	%		-9.70	%		14.43	%		27.76	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	3,424,713		$	2,354,068		$	893,610		$	435,411		$	356,098		$	311,570
Ratios to average net assets (d):
Net expenses		0.84	%		0.86	%		0.86	%		0.88	%		0.90	%		0.91	%
Gross expenses		0.84	%		0.86	%		0.86	%		0.88	%		0.90	%		0.91	%
Net investment income		2.64	%		1.02	%		1.45	%		1.53	%		1.30	%		2.42	%
Portfolio turnover rate		19	%		41	%		52	%		53	%		55	%		129	%
	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of period	$	14.57		$	11.80		$	9.53		$	10.68		$	9.43		$	7.51
Income (loss) from investment operations:
Net investment income (a)		0.18			0.10			0.09			0.13			0.09			0.16
Net realized and unrealized gain (loss)		0.71			2.82			2.26			(1.20	)		1.24			1.90
Total from investment operations		0.89			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)		—	(b)
Net asset value, end of period	$	15.46		$	14.57		$	11.80		$	9.53		$	10.68		$	9.43
Total Return (c)		6.11	%		24.73	%		24.74	%		-10.01	%		14.09	%		27.38	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,444,628		$	868,730		$	315,811		$	63,280		$	46,051		$	19,446
Ratios to average net assets (d):
Net expenses		1.07	%		1.10	%		1.13	%		1.16	%		1.20	%		1.21	%
Gross expenses		1.07	%		1.10	%		1.13	%		1.16	%		1.20	%		1.21	%
Net investment income		2.49	%		0.78	%		0.87	%		1.26	%		0.89	%		1.98	%
Portfolio turnover rate		19	%		41	%		52	%		53	%		55	%		129	%

†	Unaudited.
(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. 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.

64  Semi-Annual Report

LAZARD INTERNATIONAL SMALL CAP EQUITY PORTFOLIO

	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	10.54		$	8.12		$	6.84		$	8.12		$	6.68		$	4.80
Income (loss) from investment operations:
Net investment income (a)		0.08			0.11			0.11			0.13			0.10			0.08
Net realized and unrealized gain (loss)		0.54			2.34			1.40			(1.27	)		1.45			1.80
Total from investment operations		0.62			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)		—	(b)
Net asset value, end of period	$	11.16		$	10.54		$	8.12		$	6.84		$	8.12		$	6.68
Total Return (c)		5.88	%		30.20	%		22.28	%		-14.11	%		23.55	%		39.17	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	53,214		$	51,508		$	45,360		$	38,879		$	47,134		$	40,243
Ratios to average net assets (d):
Net expenses		1.13	%		1.13	%		1.13	%		1.13	%		1.13	%		1.17	%
Gross expenses		1.13	%		1.19	%		1.18	%		1.17	%		1.21	%		1.21	%
Net investment income		1.49	%		1.15	%		1.40	%		1.65	%		1.39	%		1.55	%
Portfolio turnover rate		27	%		58	%		48	%		28	%		41	%		51	%
	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of period	$	10.56		$	8.17		$	6.86		$	8.14		$	6.70		$	4.82
Income (loss) from investment operations:
Net investment income (a)		0.07			0.08			0.08			0.10			0.08			0.07
Net realized and unrealized gain (loss)		0.54			2.34			1.41			(1.26	)		1.45			1.81
Total from investment operations		0.61			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)		—	(b)
Net asset value, end of period	$	11.17		$	10.56		$	8.17		$	6.86		$	8.14		$	6.70
Total Return (c)		5.78	%		29.65	%		21.96	%		-14.36	%		23.13	%		39.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	21,373		$	19,639		$	17,669		$	17,744		$	24,984		$	27,920
Ratios to average net assets (d):
Net expenses		1.42	%		1.43	%		1.43	%		1.43	%		1.43	%		1.43	%
Gross expenses		1.42	%		1.48	%		1.48	%		1.46	%		1.49	%		1.48	%
Net investment income		1.25	%		0.85	%		1.08	%		1.34	%		1.09	%		1.28	%
Portfolio turnover rate		27	%		58	%		48	%		28	%		41	%		51	%

†	Unaudited.
(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. 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.

Semi-Annual Report  65

LAZARD GLOBAL EQUITY SELECT PORTFOLIO

	Six Months
Selected data for a share of capital	Ended			Period Ended
stock outstanding throughout each period	6/30/14†			12/31/13*
Institutional Shares
Net asset value, beginning of period	$	10.02		$	10.00
Income from investment operations:
Net investment income (a)		0.07			—
Net realized and unrealized gain		0.28			0.02
Total from investment operations		0.35			0.02
Redemption fees		—	(b)		—
Net asset value, end of period	$	10.37		$	10.02
Total Return (c)		3.70	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	10,617		$	1,903
Ratios to average net assets (d):
Net expenses		1.10	%		0.00	%
Gross expenses		5.33	%		91.25	%(e)
Net investment income		1.39	%		0.00	%
Portfolio turnover rate		47	%		0.00	%

	Six Months
Selected data for a share of capital	Ended			Period Ended
stock outstanding throughout each period	6/30/14†			12/31/13*
Open Shares
Net asset value, beginning of period	$	10.01		$	10.00
Income from investment operations:
Net investment income (a)		0.04			—
Net realized and unrealized gain		0.32			0.01
Total from investment operations		0.36			0.01
Net asset value, end of period	$	10.37		$	10.01
Total Return (c)		3.70	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	140		$	100
Ratios to average net assets (d):
Net expenses		1.40	%		0.00	%
Gross expenses		17.32	%		91.25	%(e)
Net investment income		0.76	%		0.00	%
Portfolio turnover rate		47	%		0.00	%

†	Unaudited.
*	The Portfolio commenced operations on December 31, 2013.
(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.
(e)	Gross expense ratio was the result of the Portfolio being in existence for one day during the period ended December 31, 2013.

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

66  Semi-Annual Report

   The Lazard Funds, Inc. Notes to Financial Statements June 30, 2014 (unaudited)

1. Organization

The Lazard Funds, Inc. (the “Fund”) was incorporated in Maryland on May 17, 1991 and is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Fund, comprised of twenty-seven 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 Fundamental Long/Short Portfolio (commenced investment operations on April 30, 2014), 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, Lazard Emerging Markets Core Equity Portfolio, Lazard Emerging Markets Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi Asset Portfolio (formerly, Lazard Emerging Markets Multi-Strategy Portfolio), Lazard Emerging Markets Debt Portfolio, Lazard Emerging Markets Income Portfolio (commenced investment operations on April 30, 2014), Lazard Explorer Total Return Portfolio, Lazard US Corporate Income Portfolio (formerly, Lazard U.S. High Yield Portfolio), Lazard US Short Duration Fixed Income Portfolio (formerly, Lazard U.S. Municipal Portfolio), Lazard Global Fixed Income Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio (formerly, Lazard International Realty Equity Portfolio), Lazard Capital Allocator Opportunistic Strategies Portfolio, and Lazard Global Dynamic Multi Asset Portfolio (formerly, Lazard Multi-Asset Targeted Volatility Portfolio). All Portfolios, other than the US Equity Concentrated, Fundamental Long/Short, Emerging Markets Debt, Emerging Markets Income, Explorer Total Return, US Realty Equity and Global Realty Equity Portfolios, are operated as “diversified” funds, as defined in the Act. Global Dynamic Multi Asset Portfolio had not commenced operations as of June 30, 2014. This report includes only the financial statements of US Equity Concentrated, US Strategic Equity, US Mid Cap Equity, US Small-Mid Cap Equity, Fundamental Long/Short, International Equity, International Equity Select, International Strategic Equity, International Small Cap Equity and Global Equity Select Portfolios. The financial statements of other Portfolios are presented separately.

Effective November 29, 2013, the Fund formed an R6 Shares class. 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 June 30, 2014, only US Strategic Equity, International Equity, International Strategic Equity, Emerging Markets Equity, Emerging Markets Equity Blend, Emerging Markets Multi Asset and Emerging Markets Debt Portfolios offered R6 Shares and only US Strategic Equity Portfolio had issued R6 Shares.

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 consistently followed by the Fund in the preparation of the financial statements:

(a) Valuation of Investments—Net asset value (“NAV”) per share for each class of each Portfolio is determined by State Street for the Fund on each day the New York Stock Exchange (“NYSE”) is open for business. Market values for securities listed on the 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 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

Semi-Annual Report  67

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 a 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.

A 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). An affected 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) Short Sales—The Fundamental Long/Short Portfolio may sell securities short. A short sale is a transaction in which the Portfolio sells securities it does not own but has borrowed in

anticipation of a decline in the market price of the securities. The initial amount of a short sale is recorded as a liability which is marked-to-market daily. Fluctuations in the value of the short liability are recorded as unrealized gains or losses. The Portfolio realizes a gain or loss upon closing of the short sale (returning the security to the counterparty by way of purchase or delivery of a long position owned). Short sales by the Portfolio involve certain risks and special considerations. Possible losses from short sales differ from losses that could be incurred from a purchase of a security because losses from short sales may be unlimited, whereas losses from purchases cannot exceed the total amount invested. The Portfolio is liable to the buyer for any dividends payable on securities while those securities are in a short position. These dividends are an expense of the Portfolio. The Portfolio designates collateral consisting of cash, US government securities or other liquid assets sufficient to collateralize the market value of short positions. For the period ended June 30, 2014, Fundamental Long/Short Portfolio received proceeds from securities sold short of $2,807,473 and purchased to cover short positions of $1,585,729.

(d) 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 the affected Portfolio may be delayed or limited.

At June 30, 2014, the US Small-Mid Cap Equity and International Equity Portfolios had investments in repurchase agreements with a value of $8,300,000 and $5,140,000, respectively, as shown on the Portfolios of Investments. The value of the related collateral exceeded the value of the repurchase agreements at period end.

(e) Foreign Currency Translation—The accounting records of the Fund 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.

68  Semi-Annual Report

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 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 the Portfolios’ 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.

(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 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	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.

(g) Dividends and Distributions—Dividends from net investment income, if any, on shares of the 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 shareholders distributions may result in reclassifications among certain capital accounts.

(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.

Semi-Annual Report  69

(i) Allocation of Expenses—Expenses not directly chargeable to a specific Portfolio are allocated among all Portfolios primarily on the basis of relative net assets. Portfolios accrue distribution and service (12b-1) fees to Open Shares. Portfolios’ 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—Excess cash in Portfolios’ 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—All 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 the Portfolios and are included as paid in capital on the Statements of Assets and Liabilities. The fees are also shown on the 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
US Equity Concentrated		0.70	%
US Strategic Equity		0.70
US Mid Cap Equity		0.75
US Small-Mid Cap Equity		0.75
Fundamental Long/Short		1.40
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

The Investment Manager has voluntarily agreed, through April 30 of the year shown below, 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			R6 Shares		Year
US Equity Concentrated		0.95	%		1.25	%		N/A		2015	(a)
US Strategic Equity		0.75			1.05			0.70%		2015
US Mid Cap Equity		1.05			1.35			N/A		2015
US Small-Mid Cap Equity		1.15			1.45			N/A		2015
Fundamental Long/Short*		1.70			1.95			N/A		2016
International Equity		1.05			1.35			N/A		2015
International Equity Select		1.15			1.45			N/A		2024
International Strategic Equity		1.15			1.45			N/A		2015
International Small Cap Equity		1.13			1.43			N/A		2015
Global Equity Select		1.10			1.40			N/A		2015	(b)

(a)	Agreement extends, for May 1, 2015 through April 30, 2024, at levels of 1.10% and 1.40%, respectively.
(b)	Agreement is through December 31, 2015.
*	Expense limitations do not include broker expense and dividend expense on securities sold short.

70  Semi-Annual Report

During the period ended June 30, 2014, 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	$	—	$	—		$  4,281		$      —
US Strategic Equity		83,552		—		9,885		—
US Mid Cap Equity		15,197		—		31,583		—
Fundamental Long/Short		9,783		43,124		454		2,985
International Equity Select		78,094		—		14,064		4,081
Global Equity Select		28,661		98,600		822		8,209

	R6 Shares
Portfolio	Management Fees Waived		Expenses Reimbursed
US Strategic Equity	$	4,085	$	—

The Fund has entered into an administration agreement with State Street to provide certain administrative services. Each Portfolio bears the cost of such services at a fixed annual rate of $42,500, plus $7,500 per additional class, and 0.02% of average daily net assets up to $1 billion and 0.01% of average daily net assets over $1 billion. State Street has agreed to waive $18,750 of the $42,500 annual fee for Portfolios with net assets under $25 million. During the period ended June 30, 2014, State Street waived its fees as follows:

Portfolio	Amount
Fundamental Long/Short	$	3,125
Global Equity Select		9,375

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

Under a Distribution and Servicing Plan in accordance with Rule 12b-1 under the Act, each Portfolio pays a monthly fee to the Distributor, at an annual rate of 0.25% of the average

daily net assets of its Open Shares, for distribution and servicing of accounts. The Distributor may make payments to certain financial institutions, securities dealers and other industry professionals for providing these services.

BFDS is the Fund’s transfer and dividend disbursing agent. For its services, BFDS receives a monthly fee computed on the basis of the number of shareholder accounts it maintains, subject to a minimum fee 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 June 30, 2014, BFDS waived its fees as follows:

Portfolio	Amount
US Strategic Equity	$	2,045
Fundamental Long/Short		4,070
Global Equity Select		12,221

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 Chair of $5,000. Such Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings. No additional compensation is provided in respect of committee meetings held in conjunction with a meeting of the Board. Compensation is, 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.

Semi-Annual Report  71

5. Securities Transactions and Transactions with Affiliates

Purchases and sales of portfolio securities (excluding short-term investments) for the period ended June 30, 2014 were as follows:

Portfolio	Purchases		Sales
US Equity Concentrated	$	101,973,007	$	83,488,312
US Strategic Equity		46,962,060		46,360,861
US Mid Cap Equity		12,358,687		18,647,308
US Small-Mid Cap Equity		149,848,064		226,327,032
Fundamental Long/Short		4,950,589		3,486,927
International Equity		82,515,723		36,576,210
International Equity Select		9,607,099		13,736,621
International Strategic Equity		1,993,310,160		702,253,107
International Small Cap Equity		19,656,354		18,966,122
Global Equity Select		11,561,319		3,039,948

For the period ended June 30, 2014, 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 period ended June 30, 2014, 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 Strategic Equity	$	398,438	$	1,180,000		1.09	%		16
US Mid Cap Equity		912,857		1,620,000		1.09			7
US Small-Mid Cap Equity		9,000,000		12,500,000		1.09			4
International Equity Select		2,447,500		3,500,000		1.09			18
International Small Cap Equity		437,222		535,000		1.09			9
Global Equity Select		1,100,000		1,100,000		1.10			4

* 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 June 30, 2014 is categorized as Level 2 (see Note 9).

7. Non-US Securities Investment Risks

Certain Portfolios may invest in securities of foreign entities and in instruments denominated in foreign currencies which involve risks not typically associated with investments in US securities. Such Portfolios’ performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolios invest. Non-US securities carry special risks, such as 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 may experience a decline in value, in US dollar terms, due solely to fluctuations in currency exchange rates. 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, capital markets worldwide have experienced unprecedented volatility in recent years, causing significant declines in valuation and liquidity in certain emerging markets. These market conditions may continue or worsen. Investments in these countries may be subject to political, economic, legal, market and currency risks. The risks may include less protection of property rights and uncertain political and economic policies, the imposition of capital controls and/or foreign investment limitations by a country, nationalization of businesses and the imposition of sanctions by other countries, such as the US. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies. The Portfolios’ investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market 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.

72  Semi-Annual Report

9. Fair Value Measurements

Fair value is defined as the price that a Portfolio would receive to sell an asset, or would pay to transfer a liability, in an orderly transaction between market participants at the date of measurement. The Fair Value Measurements and Disclosures provisions of GAAP also establish a framework for measuring fair value, and a three-level hierarchy for fair value measurement that is based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer, broadly, to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. Each invest-

ment’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 June 30, 2014:

Description	Unadjusted Quoted Prices in Active Markets for Identical Investments (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Balance as of June 30, 2014
US Equity Concentrated Portfolio
Common Stocks		$	247,080,237		$	—		$	—		$	247,080,237
Short-Term Investment			30,430,940			—			—			30,430,940
Total		$	277,511,177		$	—		$	—		$	277,511,177
US Strategic Equity Portfolio
Common Stocks		$	131,856,463		$	—		$	—		$	131,856,463
Preferred Stock*			—			—			—			—
Short-Term Investment			1,185,928			—			—			1,185,928
Total		$	133,042,391		$	—		$	—		$	133,042,391
US Mid Cap Equity Portfolio
Common Stocks		$	36,211,852		$	—		$	—		$	36,211,852
Preferred Stock*			—			—			—			—
Short-Term Investment			2,660,596			—			—			2,660,596
Total		$	38,872,448		$	—		$	—		$	38,872,448
US Small-Mid Cap Equity Portfolio
Common Stocks		$	304,901,190		$	—		$	—		$	304,901,190
Preferred Stock*			—			—			—			—
Repurchase Agreement			—			8,300,000			—			8,300,000
Total		$	304,901,190		$	8,300,000		$	—		$	313,201,190

Semi-Annual Report  73

	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)			June 30, 2014
Fundamental Long/Short Portfolio
Common Stocks		$	4,863,973			$	—		$	—		$	4,863,973
Short-Term Investment			2,794,401				—			—			2,794,401
Securities Sold Short			(2,656,564	)			—			—			(2,656,564	)
Total		$	5,001,810			$	—		$	—		$	5,001,810
International Equity Portfolio
Common Stocks
Thailand		$	—			$	1,947,168		$	—		$	1,947,168
Other			262,191,031				—			—			262,191,031
Preferred Stock			5,616,643				—			—			5,616,643
Repurchase Agreement			—				5,140,000			—			5,140,000
Total		$	267,807,674			$	7,087,168		$	—		$	274,894,842
International Equity Select Portfolio
Common Stocks
Russia		$	304,113			$	136,483		$	—		$	440,596
Other			18,327,586				—			—			18,327,586
Short-Term Investment			857,858				—			—			857,858
Total		$	19,489,557			$	136,483		$	—		$	19,626,040
International Strategic Equity Portfolio
Common Stocks		$	4,472,125,269			$	—		$	—		$	4,472,125,269
Preferred Stock			94,436,615				—			—			94,436,615
Right*			—				—			—			—
Short-Term Investment			218,938,909				—			—			218,938,909
Total		$	4,785,500,793			$	—		$	—		$	4,785,500,793
International Small Cap Equity Portfolio
Common Stocks		$	72,248,746			$	—		$	—		$	72,248,746
Preferred Stock			803,751				—			—			803,751
Short-Term Investment			1,648,797				—			—			1,648,797
Total		$	74,701,294			$	—		$	—		$	74,701,294
Global Equity Select Portfolio
Common Stocks		$	10,439,503			$	—		$	—		$	10,439,503
Preferred Stock			100,326				—			—			100,326
Short-Term Investment			63,843				—			—			63,843
Total		$	10,603,672			$	—		$	—		$	10,603,672

* The preferred stock and the right were reported in the Portfolios of Investments at zero market value.

74  Semi-Annual Report

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 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, International Small Cap Equity and Global Equity Select 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. A Portfolio recognizes all transfers between levels as though they were transferred at the beginning of the reporting period. There were no transfers into or out of Levels 1, 2 or 3 during the period ended June 30, 2014.

For further information regarding security characteristics see Portfolios of Investments.

10. 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 adjustment or disclosure in the financial statements.

Semi-Annual Report  75

   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 (69)	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 (11 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)
Trevor W. Morrison (43)	Director (April 2014)	New York University School of Law, Dean and Eric M. and Laurie B. Roth Professor of Law (2013 – present)
		Columbia Law School, Professor of Law (2008 – 2013)
		Office of Counsel to the President, The White House, Associate Counsel to the President (2009)
Leon M. Pollack (73)	Director (August 2006)	Private Investor
Richard Reiss, Jr. (70)	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 (54)	Director	Investment Manager, Chief Executive Officer (2004 – present)
	(July 2005)	Lazard Ltd, Vice Chairman and Director (2010 – present)
Franci J. Blassberg (60)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012)
		Cornell Law School, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)

76  Semi-Annual Report

(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 serves as a Director for each of the Lazard Funds (comprised of, as of July 31, 2014, 33 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. Ms. Blassberg, who became a Director effective August 6, 2014, is an “interested person” (as defined in the Act) of the Fund, until January 1, 2015, as a result of her former position as a Partner of Debevoise & Plimpton LLP, which provides legal services to the Investment Manager. Ms. Blassberg was not involved in this representation.

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.

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
Tamar Goldstein (39)	Interim Chief Compliance Officer (July 2014) and Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) 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.

Semi-Annual Report  77

   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 Fundamental Long/Short Portfolio

At meetings of the Board held on February 26, 2014 (the “February Meeting”) and April 10, 2014 (the “April Meeting”), the Board considered matters in connection with the approval of the Management Agreement between the Fund, on behalf of Lazard Fundamental Long/Short Portfolio (the “Long/Short 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.

February Meeting

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 33 active funds comprised approximately $24 billion of the approximately

$187 billion of total assets under the management of the Investment Manager and its global subsidiaries as of December 31, 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 Long/Short Portfolio from members of the Long/Short Portfolio’s proposed portfolio management team, including the strategy to be employed for the Long/Short Portfolio and the Long/Short 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 Long/Short 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

Management Fee and Expense Ratios. Although the Directors were provided with comparative management fee and expense ratio information prepared by Lipper, Inc. (“Lipper”), it was determined that the Investment Manager would obtain an additional comparative analysis from Strategic Insight that was more appropriate to the strategy of the Long/Short Portfolio, as the Investment Manager believed that many of the peer funds selected for the Long/Short Portfolio by Lipper were not appropriate comparisons because Lipper had included funds other than “pure” long/short funds.

Performance Information

The Directors were provided with composite performance information for a proprietary account managed in the Investment Manager’s long/short strategy.

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Based on its discussions and considerations as described above, the Board made the following conclusions and determinations with regard to the Management Agreement:

• 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 $187 billion global asset management business.

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

The Directors determined to further consider the Management Agreement at the April Meeting.

April Meeting

Comparative Management Fee and Expense Ratio Information

Representatives of the Investment Manager reviewed the proposed management fee and anticipated expense ratio for the Long/Short Portfolio and the comparisons provided by Strategic Insight, which compared contractual management fees and expense ratios for the Long/Short Portfolio to its expense groups of peer funds (the “Long/Short Group”), and the Directors noted the methodology and assumptions used by Strategic Insight, 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 Long/Short Portfolio was slightly below the Long/Short Group median for Institutional Shares and three basis points above the Long/Short Group median for Open Shares. The net expense ratios for the Long/Short Portfolio were below the respective Long/Short Group median for each share class.

There were no other fee-paying client accounts managed by the Investment Manager with investment objectives, policies and strategies similar to those of the Long/Short Portfolio.

Investment Manager Profitability and Economies of Scale

Representatives of the Investment Manager referred to previous discussions regarding considerations of profitability and economies of scale in respect of the Fund’s existing

Portfolios and noted that because the Long/Short Portfolio is newly formed, has not commenced operations and the eventual amount of the Long/Short Portfolio’s assets is uncertain, specific information concerning the cost of services to be provided to the Long/Short Portfolio and the expected profits to be realized by the Investment Manager and its affiliates from their relationships with the Long/Short 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 Long/Short Portfolio initially, noting the Investment Manager’s agreement to waive its fees and/or reimburse Long/Short Portfolio for at least two years following the Long/Short Portfolio’s commencement of operations to maintain the expense ratios reflected in the Strategic Insight 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 Long/Short Portfolio. The Investment Manager’s representatives referenced information previously provided on the Investment Manager’s brokerage and soft dollar practices. The representatives of the Investment Manager stated that the Investment Manager intends to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the Long/Short Portfolio would not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Plan adopted for the Long/Short 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 Long/Short Portfolio. Based on its discussions and considerations as described above and at the February Meeting, the Board made the following conclusions and determinations with regard to the Management Agreement:

Semi-Annual Report  79

• The Board concluded that the Long/Short 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 Long/Short Portfolio increase. The Board determined it would seek to have the Investment Manager share any material economies of scale with the Long/Short Portfolio.

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

All Portfolios except Lazard Fundamental Long/Short Portfolio, Lazard International Equity Concentrated Portfolio and Lazard Global Strategic Equity Portfolio

At a meeting of the Board held on June 24-25, 2014, the Board considered the approval, for an additional annual period, of the Management Agreement between the Fund, on behalf of its Portfolios, and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Investment Manager.

Services Provided

Representatives of the Investment Manager discussed with the Board the Investment Manager’s written presentation provided in advance of the meeting addressing, among other matters, the nature, extent and quality of services that the Investment Manager provides the Fund, including a discussion of the Investment Manager and its clients (of which the Lazard Funds complex of 33 active funds comprised approximately $25 billion (as of April 30, 2014) of the approximately $169.5 billion of total assets under the management of the Investment Manager and its global affiliates as of March 31, 2014). The Investment Manager’s representatives noted that the Investment Manager believes that the Fund continues to benefit significantly from the infrastructure and services provided by the Investment Manager’s global investment management platform, technology, operational and legal and compliance support and significant marketing infrastructure across broad distribution channels. The Directors also considered information provided by the Investment

Manager regarding its personnel, resources, financial condition and experience; the Fund’s distribution channels and the relationships with various intermediaries; marketing activities on behalf of the Portfolios; and Portfolio asset flows and the growth or decline in asset levels.

The Directors considered the various services provided by the Investment Manager including the Investment Manager’s research and portfolio management capabilities and oversight of day-to-day operations, including 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 Fund benefits from the services and infrastructure provided by the Investment Manager. The Directors accepted management’s assertion that such services and infrastructure are greater than those typically provided to a $25 billion fund complex not managed by a large, global firm such as the Investment Manager.

Comparative Management Fee, Expense Ratio and Performance Information

The Directors reviewed comparative management fee, expense ratio and performance (through March 31, 2014) information prepared by Strategic Insight, noting the limitations of certain Strategic Insight comparison groups (each, a “Group”) and broader Morningstar categories (each, a “Category”).

Management Fees and Expense Ratios. The Directors discussed the management fees and expense ratios for each Portfolio. They noted the methodology and assumptions used by Strategic Insight, including that management fee comparisons for the Portfolios and the rankings used therein include administrative fees (which, for the Portfolios, include a fixed dollar fee paid to the Fund’s third party administrator that is not affiliated with the Investment Manager). The Directors acknowledged that, for smaller Portfolios, the fixed dollar administrative fee may have a more significant impact on the contractual management fee.

In reviewing Strategic Insight’s analysis, it was noted that, for at least one share class of each Portfolio, contractual management fees were at or below the median of the relevant Group, except for the International Equity Select Portfolio.

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It also was noted that, for at least one share class of all Portfolios, expense ratios were at or below the medians of those of the funds in the relevant Group, except for the US Mid Cap Equity Portfolio (for which expense ratios were near the median for both of the share class Groups). The Directors considered that the Investment Manager continues to voluntarily enter into fee waiver and expense reimbursement agreements for all of the Portfolios and that for certain of the Portfolios the Investment Manager was waiving management fees and/or reimbursing expenses.

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

Performance. Strategic Insight’s performance analyses compared each Portfolio’s investment returns to those of the funds in the relevant Group and Category over measurement periods up to ten years through March 31, 2014.

The Directors noted that one or both share classes of International Equity, International Equity Select, International Small Cap Equity, International Strategic Equity, US Equity Concentrated and US Small-Mid Cap Equity Portfolios were at or above the median of the Group and/or Category for most or all periods; for the US Strategic Equity Portfolio, performance was below median, although by a relatively narrow spread in longer-term periods; and the performance of the US Mid Cap Equity Portfolio was generally fourth quartile in all periods.

At the meeting, the Directors received and would continue to receive regular updates on the Investment Manager’s efforts in respect of underperforming Portfolios.

Investment Manager Profitability and Economies of Scale

The Directors reviewed information prepared by the Investment Manager for each Portfolio concerning profits realized by the Investment Manager and its affiliates resulting from the Management Agreement, calculated using the actual revenues received for the calendar year ended December 31, 2013 and the Investment Manager’s cost allocation methodology to compute an estimate of each Portfolio’s expenses. The Investment Manager’s representatives stated that neither the Investment Manager nor its affiliates receive any significant indirect benefits from the Investment Manager acting as investment adviser to the Portfolios. The Investment Manager’s representatives stated that the broker-dealer that is treated as an affiliate of the Investment Manager did not effect trades for the Portfolios in the period under review, and the Investment Manager did not benefit from money flow (float) in connection with transactions in the Portfolios’ shares. The Investment Manager’s representatives reviewed with the Board information provided on the Investment Manager’s brokerage practices and the Portfolios’ brokerage allocation, commission payments and soft dollar commissions and benefits. The representatives of the Investment Manager reminded the Board that the Investment Manager is continuing to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the Fund does not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Portfolios’ Open Shares.

The profitability percentages were within ranges determined by relevant court cases not to be so disproportionately large that they bore no reasonable relationship to the services rendered. Representatives of the Investment Manager stated that the Investment Manager believed the profits are not unreasonable in light of the services provided and other factors. The Directors considered the Investment Manager’s estimated profitability with respect to each Portfolio as part of their evaluation of whether the Portfolio’s fee under the Management Agreement bears a reasonable relationship to the mix of services provided by the Investment

Semi-Annual Report  81

Manager, including the nature, extent and quality of such services, and evaluated profitability in light of the relevant circumstances for each Portfolio, including the size of each Portfolio and the trend in asset growth or decline. Representatives of the Investment Manager and the Directors discussed ways economies of scale could be realized and how they could be shared, including the Investment Manager’s reinvestment of money back into its business, waiving or reimbursing Portfolio expenses, adding discounts to a Portfolio’s management fee schedule as a Portfolio’s assets increase or by instituting relatively low management fees from inception. It was noted that, for Portfolios with declining or stable assets or a low level of assets, the extent to which the Investment Manager may have realized any economies of scale would be reduced.

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 renewal of the Management Agreement. Based on its discussions and considerations as described above, the Board made the following conclusions and determinations.

• The Board concluded that the nature, extent and quality of the services provided by the Investment Manager are adequate and appropriate, noting the benefits of advisory and research services and other services and infrastructure (as discussed above) associated with an approximately $169.5 billion global asset management business.

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

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

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

The Board considered these conclusions and determinations in their totality and, without any one factor being disposi-

tive, determined that approval of the Management Agreement for the Fund, on behalf of each Portfolio, was in the best interests of the Portfolio.

Lazard International Equity Concentrated Portfolio, Lazard Global Equity Select Portfolio and Lazard Global Strategic Equity Portfolio

At a meeting of the Fund’s Board held on June 24-25, 2014, the Board considered the approval of the Management Agreement between the Fund, on behalf of Lazard International Equity Concentrated Portfolio and Lazard Global Strategic Equity Portfolio (the “New Portfolios”), and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Investment Manager.

Services Provided

Representatives of the Investment Manager discussed with the Board the Investment Manager’s written presentation provided in advance of the meeting addressing, among other matters, the nature, extent and quality of services 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 33 active funds comprised approximately $25 billion (as of April 30, 2014) of the approximately $169.5 billion of total assets under the management of the Investment Manager and its global affiliates as of March 31, 2014); 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 New Portfolios from members of the New Portfolios’ proposed portfolio management teams, including the strategies to be employed for the New Portfolios and the New Portfolios’ portfolio management teams, 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.

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The Directors also considered the Investment Manager’s infrastructure and agreed that the New Portfolios were expected to benefit from the services and infrastructure provided by the Investment Manager. The Directors accepted management’s assertion that such services and infrastructure would be greater than those typically provided to a $25 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 Strategic Insight.

Management Fee and Expense Ratios. Representatives of the Investment Manager reviewed the proposed management fee and anticipated expense ratios for the New Portfolios and the comparisons provided by Strategic Insight, which compared management fees and expense ratios for each New Portfolio to its respective Groups and Category, and the Directors noted the methodology and assumptions used by Strategic Insight, 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 contractual management fee and estimated expense ratios for the Global Strategic Equity Portfolio were slightly below or above (by one to four basis points) the medians for the Groups and Category. For Institutional shares of the International Equity Concentrated Portfolio, the proposed contractual management fee was above the Group median (by four basis points) and above the Category median (in the fourth quartile) and for Open shares the proposed contractual management fee was above (by less than two basis points) the Group median and above the Category median (in the third quartile). The estimated expense ratios for the International Equity Concentrated Portfolio’s Institutional shares were at and above (third quartile) the Group and Category medians, respectively, and the estimated expense ratios for the International Equity Concentrated Portfolio’s Open shares were below and above (third quartile) the Group and Category medians, respectively. The Directors also reviewed information regarding advisory fees charged to Similar Accounts and considered the relevance of this fee information.

Performance. Since the New Portfolios had not yet commenced operations, there was no performance of the New Portfolios for the Directors to consider. The Directors were provided with performance information for the Investment Manager’s global strategic equity and international equity concentrated strategies, and it was noted that the international equity concentrated performance was for a single account funded by the Investment Manager with approximately $1.5 million in assets.

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 New Portfolios are newly formed, have not commenced operations and the eventual aggregate amount of the New Portfolios’ assets was uncertain, specific information concerning the cost of services to be provided to the New Portfolios and the expected profits to be realized by the Investment Manager and its affiliates from their relationships with the New Portfolios and 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 New Portfolios initially, noting the Investment Manager’s agreement to waive its fees and/or reimburse each New Portfolio for at least two years following the New Portfolio’s commencement of operations to maintain the expense ratios reflected in the Strategic Insight 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 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 New Portfolios. 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 New Portfolios would not bear any related costs other than the 0.25% 12b-1

Semi-Annual Report  83

fee pursuant to the Distribution and Servicing Plan adopted for the New Portfolios’ Open Shares.

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

• 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 $169.5 billion global asset management business.

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

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

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

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The Lazard Funds, Inc.

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

Investment Manager

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

Distributor

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

Custodian

State Street Bank and Trust Company
One Iron Street
Boston, Massachusetts 02210

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

Deloitte & Touche LLP
30 Rockefeller Plaza
New York, New York 10112-0015

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 Semi-Annual Report
June 30, 2014

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 Asset Portfolio

Lazard Emerging Markets Debt Portfolio

Lazard Emerging Markets Income Portfolio

Lazard Explorer Total Return 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 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 Asset Portfolio
47	Lazard Emerging Markets Debt Portfolio
57	Lazard Emerging Markets Income Portfolio
60	Lazard Explorer Total Return Portfolio
74	Notes to Portfolios of Investments
78	Statements of Assets and Liabilities
80	Statements of Operations
82	Statements of Changes in Net Assets
86	Financial Highlights
94	Notes to Financial Statements
110	Board of Directors and Officers Information
112	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 the investment objectives, risks, charges, expenses and other information about Portfolios of the Fund, which is not detailed in this report.

Distributed by Lazard Asset Management Securities LLC.

Semi-Annual Report  1

   The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

During the first half of 2014, global equity markets rose steadily. Stocks were somewhat volatile at the beginning of the year as investors were concerned that the US Federal Reserve (the “Fed”) may begin to raise interest rates sooner than previously expected. However, Fed Chair Janet Yellen reassured markets on several occasions that the Fed intends to keep interest rates low until the US economy is stronger. Stocks gained in developed markets across North America, Europe, and Asia. Emerging-market equities recovered from a difficult 2013 amid an improving global economic environment and despite growth concerns in China and geopolitical uncertainty from Russia-Ukraine tensions.

Global fixed-income markets extended their rally despite the unwinding of US quantitative easing and as interest rates generally trended lower. Emerging-market debt posted strong returns, supported by the credit-easing measures taken by the European Central Bank and the ongoing accommodative stance by the Fed.

As always, at Lazard Asset Management, we remain focused on active management and are committed to leveraging our strengths in pursuing the Portfolios’ investment objectives so that you, a valued shareholder in Lazard Funds, may 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  Semi-Annual Report

   The Lazard Funds, Inc. Investment Overviews

Emerging Markets Equities, Debt, and Currency

Emerging markets equities suffered through a challenging initial two months, followed by a significant rebound during the first half of 2014. Concerns about the Fed tapering in January and then the trauma relating to events in Crimea in February were subsequently more than offset by an improving economic environment, somewhat de-escalating tensions in Ukraine, and an improvement in industrial production data in China. The Morgan Stanley Capital International (MSCI^®) Emerging Markets Index (the “EM Index”) increased by 6.1%, as measured in US dollar terms. By region, Latin America performed best, modestly outperforming shares in Asia and eastern Europe. Features of the period included the Crimean (Ukrainian) issue as well as higher crude oil prices caused by increased violence within Iraq.

Asian markets were generally strong over the first half of 2014, apart from China, which suffered from worries about economic growth and a weak renminbi. The period included a military coup in Thailand which ousted Yingluck Shinawatra as prime minister. Somewhat perversely, Thai shares rallied, suggesting less uncertainty. Taiwanese equities, especially technology shares, rose due to upward earnings revisions. Indian stock prices increased sharply following the convincing election win of BJP leader Modi and the announcement of his relatively small, and therefore possibly more efficient, cabinet. Although share prices recovered in Indonesia following a weak period in 2013, polls in June reporting a closer and more complicated presidential election, resulted in marked profit-taking.

European-market returns were somewhat mixed during the period. Because of the Crimean situation, Russian and Hungarian shares fell sharply in February before beginning to recover on the apparent signs of de-escalating of tensions. Turkish and South African equities rebounded from the stresses placed on their currencies after the Fed’s tapering in the first quarter, which led both central banks to decisively lift interest rates. Egyptian shares benefited from General el-Sisi’s election as president. New EM Index constituent countries, Qatar and the United Arab Emirates, rose over the period but suffered considerable declines in June following the effects of a corporate scandal in Qatar and a year of major market increases.

Apart from Chile, Latin American markets rose in the first half of 2014. Despite ongoing concerns about economic

performance, both Brazil and Colombia benefited from the increase in crude oil prices given their substantial energy weightings. Mexican shares were buoyed by ongoing excitement over reform policy as well as prospects of increased economic growth.

By sector, the information technology, utilities, consumer discretionary, and health care sectors performed relatively well while the materials, telecom services, and consumer staples sectors underperformed the EM Index.

Emerging markets debt has gone from worst-performing asset class in 2013 to best-performing asset class year to date. We continue to believe that the sell-off in emerging markets debt in the second half of 2013 did not reflect the onset of an emerging markets-wide crisis, but rather signified a valuation adjustment for tighter global liquidity and some deterioration in emerging markets fundamentals. At the turn of the year, with US 10-year Treasury rates rising and an emerging markets macro adjustment beginning to take hold, higher yields for emerging markets debt (6% for the US dollar-denominated sovereign bond index and 7% for the local currency-denominated bond index) looked attractive in an absolute sense and less expensive relative to other credit markets. Therefore, we were not surprised by the rebound in emerging markets debt, but we were unprepared for its magnitude, which, to us, appeared excessive.

In the six-month period ended June 30, 2014, emerging markets debt as represented by a blended 50% JPMorgan EMBI Global Diversified^® Index/50% JPMorgan GBI-EM Global Diversified^® Index (the “Global Diversified Index”) was up 7.35%. US dollar-denominated debt, as represented by the JPMorgan EMBI Global Diversified Index, increased by 8.66%. The JPMorgan GBI-EM Global Diversified Index increased 5.99% over the same period.

During the first half of 2014, many emerging markets demonstrated a balance of payments improvement that reduced vulnerabilities. Poor investor sentiment towards emerging markets led to portfolio outflows and a sharp sell-off across emerging-market assets in January. However, since February, emerging local markets have been recovering from their recent drawdown. Countries that have made fundamental improvements, show growing reform momentum, or offer high yield have generally been top performers in 2014.

Semi-Annual Report  3

The benign global backdrop has fostered a recovery in the short-duration emerging local markets arena for the past five months. Accommodative G3 monetary policies, mini-stimulus in China and resulting rebound which disproves the imminent “hard landing” cynics, and cyclical improvement in the United States and Europe, relative to the past few years, are factors igniting a resumption of capital inflows after a protracted and sizeable exodus, as investor confidence returns to emerging markets.

Since mid-2013, risk premia have risen across many emerging money markets either in the form of improved currency competitiveness (after sharp depreciation), or in the form of higher nominal or real yields (or both). Additionally, emerging-market macro data has evidenced ongoing economic rebalancing, such as notable current-account improvements, while monetary policy signals (on-hold/tighter in most, with only isolated incremental easing in a select few countries), electoral progress, and structural reform advancement have garnered increasing investor discrimination.

Lazard Emerging Markets Equity Portfolio

For the six months ended June 30, 2014, the Lazard Emerging Markets Equity Portfolio’s Institutional Shares posted a total return of 9.16%, while the Open Shares posted a total return of 9.09%, as compared with the 6.14% return for the EM Index.

Shares of Cielo, a Brazilian credit card processor, continued to perform well amid strong credit card volumes. BB Seguridade Participacoes, a Brazilian insurance company, gained after announcing strong results and providing good guidance. Shares of Taiwan Semiconductor Manufacturing, a Taiwanese manufacturer of integrated circuits, rose amid increased confidence that second half of 2014 earnings would beat expectations. Bank Mandiri, an Indonesian bank, reported good fourth-quarter results.

In contrast, shares of Sberbank of Russia, a Russian bank, declined as the Crimea crisis resulted in increased political concerns and a weakening ruble. KB Financial Group, a South Korean bank, was negatively affected by increased regulatory tightening within the credit card market following a large data leak scandal. Shares of Mobile Telesystems, a Russia-based telecom services company, declined on concerns over increased competition after Rostelecom and Tele2 announced a joint venture, and due to macro-related con-

cerns including the weakening ruble. Shares of Hanwha Life Insurance, a South Korean life insurance company, declined amid weaker-than-expected earnings and growth outlook.

Lazard Emerging Markets Core Equity Portfolio

For the six months ended June 30, 2014, the Lazard Emerging Markets Core Equity Portfolio’s Institutional Shares posted a total return of 6.71%, while the Open Shares posted a total return of 6.51%, as compared with the 6.14% return for the EM Index.

Shares of Largan Precision, in Taiwan, and SK Hynx, in South Korea, performed well amid improving earnings outlooks for those companies. Shares of Vipshop Holdings, a leading online discount retailer in China, continued to outperform amid a strong earnings release coupled with the company providing an optimistic business outlook. Gruma, a Mexican consumer staples company, helped performance as it expanded its footprint into Europe and benefited from increasing earnings due to its cost-cutting initiatives. Stock selection in the information technology sector helped performance. On a regional basis, stock selection in South Korea and Taiwan and a lack of exposure to Qatar and the United Arab Emirates helped performance.

In contrast, Russian portfolio holdings of Sberbank of Russia, Eurasia Drilling, MegaFon, Mail.ru, and LukOil all hurt performance due to geopolitical concerns surrounding the crisis in Crimea and Ukraine. On a regional basis, stock selection in Brazil and South Africa hurt performance during the period.

Lazard Developing Markets Equity Portfolio

For the six months ended June 30, 2014, the Lazard Developing Markets Equity Portfolio’s Institutional Shares posted a total return of 4.40%, while Open Shares posted a total return of 4.23%, as compared with the 6.14% return for the EM Index.

Aurobindo Pharma, an Indian generic pharmaceutical company, outperformed on strong results as well as on pricing for their Cymbalta sales holding up better than expected. Estacio Participacoes, a Brazilian private school operator, did well as results have exceeded margin targets and management envisions a strong long-term outlook for its operations. ICICI Bank, an Indian bank, outperformed on expectations of a BJP election victory (which subsequently occurred) and that interest rates may have peaked, setting the stage for an

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improvement in economic fundamentals. Bank Rakyat Indonesia, an Indonesian bank, rose after reporting strong quarterly earnings with higher margins and stable asset quality. Hiwin Technologies, a Chinese manufacturer of automation equipment, performed well on an optimistic outlook driven by demand for its equipment.

Stock selection in the financials, health care, consumer discretionary, and consumer staples sectors, as well as in India, Taiwan, Indonesia, and Colombia helped performance.

A lower-than index exposure to the consumer staples and telecom services sectors as well as to Korea and the United Arab Emirates, and a higher-than-index exposure to India, Qatar, and Colombia added value.

Shares in Eurasia Drilling, a Russian oilfield services company, sold off following the loss of a large client and uncertainties around the sustainability of its margins going forward. Globaltrans Investment, a Russian rail freight logistics company; VTB Bank, a Russian bank; and Yandex, a Russian internet search company, all underperformed in the wake of the Crimean crisis along with the overall Russian stock market. Zhuzhou CSR Times Electric, a Chinese provider of electrical systems for railways, slipped on concerns about the Chinese economy although rail spending remains a top priority for the government.

Stock selection in the industrials, energy, information technology, and materials sectors as well as in China, Russia, Brazil, and Turkey detracted value.

Lazard Emerging Markets Equity Blend Portfolio

For the six months ended June 30, 2014, the Lazard Emerging Markets Equity Blend Portfolio’s Institutional Shares posted a total return of 4.47%, while Open Shares posted a total return of 4.30%, as compared with the 6.14% return for the EM Index.

The Portfolio is managed using a combination of two emerging-market equity investment strategies—relative value and relative growth managed by Lazard Asset Management LLC, the Portfolio’s investment manager (the “Investment Manager”). The Portfolio also includes small cap stocks as a component of the relative value allocation. The Investment Manager considers a market forecast based on four categories pertinent to allocation decisions among the strategies: Economy, Valuation, Liquidity, and Sentiment.

Changes made to the market forecast during the first six months of 2014 reflected a consideration of many factors, including 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 eurozone, and Japan; fiscal policy in developed and emerging markets; geopolitical risks; and equity and fixed income valuations; along with other data.

For the first six months of 2014, stock selection in the financials and telecom services sectors and a lower-than-index exposure to the materials sector added value, as did stock selection and a higher-than-index exposure in Indonesia, a higher-than-index exposure to Turkey, and stock selection and a lower-than-index exposure in South Korea. Our average overweight to value versus growth over the period also added to performance. In contrast, stock selection in the industrials, information technology, and energy sectors detracted from performance, as did stock selection and a higher-than-index exposure in Russia, stock selection in China, and an out-of-index exposure to Macau.

Lazard Emerging Markets Multi Asset Portfolio

For the six months ended June 30, 2014, the Lazard Emerging Markets Multi Asset Portfolio’s Institutional Shares posted a total return of 3.99%, while Open Shares posted a total return of 3.88%, as compared with the 6.14% return for the EM Index.

The Portfolio is managed using a combination of three of the Investment Manager’s emerging-market equity investment strategies—relative value, relative growth, and a small-cap strategy—and two of the Investment Manager’s emerging-market debt investment strategies—a debt and a currencies strategy. The Investment Manager considers a market forecast based on four categories pertinent to allocation decisions among the strategies: Economy, Valuation, Liquidity, and Sentiment.

Changes made to the market forecast during the first six months of 2014 reflected a consideration of many factors, including 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 eurozone, and Japan; fiscal policy in developed and emerging markets; geopolitical risks; and equity and fixed income valuations; along with other data.

Semi-Annual Report  5

For the first six months of 2014, stock selection in the financials and telecom services sectors and a lower-than-index exposure to the materials sector added value, as did stock selection and a higher-than-index exposure in Indonesia, a higher-than-index exposure to Turkey, and stock selection and a lower-than-index exposure in South Korea. Positions in the Brazilian real—implemented via derivative instruments—also contributed, as did select corporate bond positions, local debt positions in Brazil and Mexico, and exposures to select credits such as Ivory Coast. Our average overweight to value versus growth and to debt versus currencies over the period also added to performance. In contrast, stock selection in the industrials, information technology, and energy sectors detracted from performance, as did stock selection and a higher-than-index exposure in Russia, stock selection in China, an out-of-index exposure to Macau, positions in the Russian ruble, Ghanian cedi, and the Zambian kwacha—implemented via derivative instruments—local and external debt positions in Russia, and exposure to sovereign CDX.

During the first half of 2014, derivatives in the currency portion of the Portfolio detracted approximately 4 basis points from the overall allocation. Derivative positions which helped results included the currency strategy’s euro hedge (euro funding of European region positions), as well as exposure to South Korean, Colombian, Indian, and Malaysian local markets. Conversely, derivative positions that detracted from performance were exposures to the currencies of Kazakhstan, Ghana, Russia, and the Japanese yen, which is used to hedge Asian region positions. The derivatives positions in the debt strategy were utilized to hedge some positions in order to reduce the risk in the strategy. During the first half of 2014, they detracted approximately 28 basis points from the overall allocation.

Lazard Emerging Markets Debt Portfolio

For the six months ended June 30, 2014, the Lazard Emerging Markets Debt Portfolio’s Institutional Shares posted a total return of 7.69%, while Open Shares posted a total return of 7.48%, as compared with the 7.35% return for the Global Diversified Index.

The Portfolio outperformed the Global Diversified Index in the six-month period ended June 30, 2014. We have shifted to an overweight position in local debt and established a

larger allocation to US dollar-denominated corporate bonds, where we see more attractive valuations.

The Portfolio ended the six-month period ended June 30, 2014 at a 40% allocation to US dollar-denominated debt and a 60% allocation to local debt. In terms of security selection, the Portfolio maintains a significant duration underweight in US dollar-denominated debt and an overweight in Brazilian long-duration local bonds. The Portfolio’s local Brazilian and Indonesian positions were the largest contributors to performance. The Portfolio’s underweight in Ukraine was the largest detractor from performance as Ukraine ultimately received a large package from international agencies that did not include a restructuring of its debt as we had anticipated. The forward currency contracts were used to hedge the currency risk in the Portfolio. During the first half of 2014, they contributed to performance.

Lazard Emerging Markets Income Portfolio

The Lazard Emerging Markets Income Portfolio was launched on April 30, 2014. During these two months, the Portfolio’s Institutional Shares posted a total return of 1.50%, while Open Shares posted a total return of 1.40%, as compared with the 1.53% return for the JPMorgan Emerging Local Markets^® Index Plus.

Currency and duration management in Russia helped as capital markets there recovered, reacting favorably to the central bank’s rate hikes, rising oil price, and slowing net capital outflows on signs of Ukrainian de-escalation. An overweight position to Colombia, where the peso was buoyed by surging capital inflows due to a sharply increased weighting in leading fixed-income indices, a favorable growth outlook, and central bank rate hikes also abetted portfolio performance. An overweight to Chile during May’s peso recovery after accelerating inflation data dampened market expectations of further rate cuts also contributed.

Conversely, exposure to China detracted due to the Portfolio’s offshore renminbi positioning which underperformed the index. Security selection in Brazil also detracted as fixed-income positioning underperformed the money market result. The portfolio management team uses currency forwards, both opportunistically, for direct currency exposure, and defensively, for hedging purposes. During the period, the use of forward currency contracts added 116 basis points to the Portfolio’s performance.

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Lazard Explorer Total Return Portfolio

For the six months ended June 30, 2014, the Lazard Explorer Total Return Portfolio’s Institutional Shares posted a total return of 3.64%, while Open Shares posted a total return of 3.48%, as compared with the 7.35% return for the Global Diversified Index.

Net exposures ranged from 62% to 95% over the six-month period. Positive performance drivers included investments in US dollar-denominated hard currency, sovereign, quasi-sovereign, and corporate issues while sovereign short positions detracted. From a local perspective, local rates contributed while foreign exchange, short positions in local rates, and currency positions detracted from performance. Relative value trades also helped returns in the six-month period.

The largest contributors to performance included the hard currency Iraq sovereign debt, Ivory Coast credits, and corporates. On the local side, Brazil and Indonesia were the top contributors to performance. Hard currency Ukraine sovereign credit and the local currency Russian positions detracted from performance.

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. In the first half of 2014, the use of derivatives detracted approximately 120 basis points from the Portfolio’s performance.

Notes to Investment Overviews:

All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of a Portfolio 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, a Portfolio’s 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 June 30, 2014; 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 a 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 a 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 any 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.

Semi-Annual Report  7

   The Lazard Funds, Inc. Performance Overviews (unaudited)

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*

Periods Ended June 30, 2014

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	18.28%	11.62%	14.41%
Open Shares**	17.98%	11.29%	14.08%
EM Index	14.31%	9.24%	11.94%

*	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.

8  Semi-Annual Report

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 June 30, 2014

	Since
	Inception	†
Institutional Shares**	4.90%
Open Shares**	4.70%
EM Index	3.07%

*	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, 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.

Semi-Annual Report  9

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 June 30, 2014

	One	Five	Since
	Year	Years	Inception	†
Institutional Shares**	15.52%	9.24%	7.61%
Open Shares**	15.21%	8.89%	7.29%
EM Index	14.31%	9.24%	7.70%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or State Street; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The 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 June 30, 2014

	One	Since
	Year	Inception	†
Institutional Shares**	11.98%	4.79%
Open Shares**	11.75%	4.47%
EM Index	14.31%	5.69%

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

Semi-Annual Report  11

Lazard Emerging Markets Multi Asset Portfolio

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

Average Annual Total Returns*

Periods Ended June 30, 2014

	One	Since
	Year	Inception	†
Institutional Shares**	9.01%	-0.08%
Open Shares**	8.64%	-0.37%
EM Index	14.31%	-0.71%

*	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.
	Before April 30, 2014, the Portfolio was known as Lazard Emerging Markets Multi-Strategy Portfolio.
**	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 June 30, 2014

	One	Since
	Year	Inception	†
Institutional Shares**	8.45%	5.86%
Open Shares**	8.13%	5.55%
JPMorgan EMBI Global Diversified Index	11.63%	8.24%
JPMorgan GBI-EM Global Diversified Index	3.91%	3.11%
Global Diversified Index	7.75%	5.72%

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

Semi-Annual Report  13

Lazard Emerging Markets Income Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Emerging Markets Income Portfolio and JPMorgan Emerging Local Markets^® Index Plus*

Total Returns*

Period Ended June 30, 2014

	Since
	Inception	†
Institutional Shares**	1.50%
Open Shares**	1.40%
JPMorgan Emerging Local Markets Index Plus	1.53%

*	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.
	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 JPMorgan Emerging Local Markets Index Plus tracks total returns for local currency-denominated money market instruments in 23 emerging markets countries with at least US $10 billion of external trade. 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 April 30, 2014.

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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*

Average Annual Total Returns*

Periods Ended June 30, 2014

	One	Since
	Year	Inception	†
Institutional Shares**	4.04%	4.00%
Open Shares**	3.76%	3.73%
JPMorgan EMBI Global Diversified Index	11.63%	11.63%
JPMorgan GBI-EM Global Diversified Index	3.91%	3.91%
Global Diversified Index	7.75%	7.75%

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

Semi-Annual Report  15

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

Expense Example

As a shareholder in a Portfolio of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from January 1, 2014 through June 30, 2014 and held for the entire period.

Actual Expenses

For each Share class of the Portfolios, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each Share class of the Portfolios, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total cost of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Portfolio	Beginning Account Value 1/1/14	Ending Account Value 6/30/14	Expenses Paid During Period* 1/1/14 - 6/30/14	Annualized Expense Ratio During Period 1/1/14 - 6/30/14
Emerging Markets Equity
Institutional Shares
Actual	$1,000.00	$1,091.60	$5.70	1.10%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.34	$5.51	1.10%
Open Shares
Actual	$1,000.00	$1,090.90	$7.10	1.37%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.00	$6.85	1.37%
Emerging Markets Core Equity
Institutional Shares
Actual	$1,000.00	$1,067.10	$6.66	1.30%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.35	$6.51	1.30%
Open Shares
Actual	$1,000.00	$1,065.10	$8.19	1.60%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,016.86	$8.00	1.60%

16  Semi-Annual Report

Portfolio	Beginning Account Value 1/1/14	Ending Account Value 6/30/14	Expenses Paid During Period* 1/1/14 - 6/30/14	Annualized Expense Ratio During Period 1/1/14 - 6/30/14
Developing Markets Equity
Institutional Shares
Actual	$1,000.00	$1,044.00	$6.03	1.19%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.89	$5.96	1.19%
Open Shares
Actual	$1,000.00	$1,042.30	$7.49	1.48%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,017.46	$7.40	1.48%
Emerging Markets Equity Blend
Institutional Shares
Actual	$1,000.00	$1,044.70	$6.59	1.30%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.35	$6.51	1.30%
Open Shares
Actual	$1,000.00	$1,043.00	$8.10	1.60%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,016.86	$8.00	1.60%
Emerging Markets Multi Asset
Institutional Shares
Actual	$1,000.00	$1,039.90	$6.32	1.25%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.60	$6.26	1.25%
Open Shares
Actual	$1,000.00	$1,038.80	$8.09	1.60%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,016.86	$8.00	1.60%
Emerging Markets Debt
Institutional Shares
Actual	$1,000.00	$1,076.90	$5.05	0.98%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.93	$4.91	0.98%
Open Shares
Actual	$1,000.00	$1,074.80	$6.69	1.30%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.35	$6.51	1.30%
Emerging Markets Income**
Institutional Shares
Actual	$1,000.00	$1,015.00	$1.52	0.90%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,006.85	$1.51	0.90%
Open Shares
Actual	$1,000.00	$1,014.00	$2.02	1.20%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,006.35	$2.01	1.20%
Explorer Total Return
Institutional Shares
Actual	$1,000.00	$1,036.40	$6.56	1.30%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.35	$6.51	1.30%
Open Shares
Actual	$1,000.00	$1,034.80	$8.07	1.60%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,016.86	$8.00	1.60%

*	Expenses are equal to the annualized ratio of each Share class multiplied by the average account value over the period, multiplied by 181/365 (to reflect one-half year period).
**	The Portfolio commenced operations on April 30, 2014.

Semi-Annual Report  17

   The Lazard Funds, Inc. Portfolio Holdings Presented by Sector and Region June 30, 2014 (unaudited)

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 Asset Portfolio
Consumer Discretionary		7.0	%		18.2	%		16.3	%		14.1	%		9.3	%
Consumer Staples		9.9			6.2			2.9			5.5			3.6
Energy		12.0			5.8			14.4			12.7			10.7
Financials		27.3			23.8			25.7			26.2			18.0
Health Care		—			5.5			4.9			1.6			1.0
Industrials		6.5			6.5			13.2			10.1			6.5
Information Technology		17.6			21.3			12.6			18.1			11.4
Materials		5.5			7.0			7.5			2.5			1.9
Telecommunication Services		10.2			4.4			—			6.0			4.1
Utilities		0.8			1.0			0.7			—			—
Sovereign Debt		—			—			—			—			11.8
Short-Term Investments		3.2			0.3			1.8			3.2			21.7
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Region*	Lazard Emerging Markets Debt Portfolio			Lazard Emerging Markets Income Portfolio			Lazard Explorer Total Return Portfolio
Africa		16.3	%		3.5	%		12.5	%
Asia		28.6			14.4			17.4
Europe		17.3			9.8			8.3
North America		9.5			34.5			5.6
South America		22.7			5.1			23.8
Short-Term Investments		5.6			32.7			32.4
Total Investments		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

18  Semi-Annual Report

   The Lazard Funds, Inc. Portfolios of Investments June 30, 2014 (unaudited)

Description	Shares		Value
Lazard Emerging Markets Equity Portfolio
Common Stocks | 95.9%
Argentina | 1.2%
YPF Sociedad Anonima Sponsored ADR		5,852,386	$	191,255,974
Brazil | 15.8%
Ambev SA ADR		24,727,140		174,079,066
Banco do Brasil SA		49,540,010		557,170,966
BB Seguridade Participacoes SA		23,801,500		349,454,926
CCR SA		20,997,200		171,056,619
CEMIG SA Sponsored ADR		15,983,131		127,705,217
Cielo SA		22,497,860		463,296,053
Localiza Rent a Car SA		6,723,425		110,885,543
Natura Cosmeticos SA		7,248,600		122,204,277
Souza Cruz SA		15,211,425		156,761,325
Vale SA Sponsored ADR		10,694,300		141,485,589
Via Varejo SA		11,184,400		125,283,503
				2,499,383,084
China | 8.7%
Baidu, Inc. Sponsored ADR (a)		1,388,500		259,385,685
China Construction Bank Corp., Class H (a)		599,030,220		452,920,764
China Shenhua Energy Co., Ltd., Class H (a)		36,299,500		104,911,850
CNOOC, Ltd.		110,266,000		198,610,828
NetEase, Inc. Sponsored ADR		3,314,704		259,740,205
Weichai Power Co., Ltd., Class H		24,415,000		94,189,784
				1,369,759,116
Colombia | 2.8%
Pacific Rubiales Energy Corp.		21,833,400		443,604,435
Egypt | 0.8%
Commercial International Bank Egypt SAE GDR		25,309,689		123,511,282
Hong Kong | 2.6%
China Mobile, Ltd. Sponsored ADR		6,060,104		294,581,655
Huabao International Holdings, Ltd.		186,381,000		109,658,516
				404,240,171
Hungary | 0.9%
OTP Bank PLC		7,427,024		142,775,856

Description	Shares		Value
India | 6.1%
Axis Bank, Ltd.		6,621,559	$	211,070,794
Bajaj Auto, Ltd.		191,410		7,303,782
Bank of India		8,865,065		44,454,295
Bharat Heavy Electricals, Ltd.		30,268,171		126,014,632
Hero MotoCorp, Ltd.		83,562		3,653,206
Jindal Steel & Power, Ltd.		6,465,429		34,571,152
Punjab National Bank, Ltd.		13,500,071		222,775,301
Tata Consultancy Services, Ltd.		7,643,829		306,788,944
				956,632,106
Indonesia | 5.9%
PT Astra International Tbk		194,077,500		119,098,592
PT Bank Mandiri (Persero) Tbk		320,092,730		262,581,341
PT Semen Indonesia (Persero) Tbk		81,167,900		103,214,348
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		7,006,855		291,905,579
PT United Tractors Tbk		74,681,684		145,520,616
				922,320,476
Macau | 1.2%
Wynn Macau, Ltd.		47,659,600		187,553,907
Malaysia | 0.7%
British American Tobacco Malaysia Berhad		5,593,700		114,173,497
Mexico | 1.4%
Grupo Mexico SAB de CV, Series B		32,875,347		109,698,522
Kimberly-Clark de Mexico SAB de CV, Series A		40,321,695		113,162,440
				222,860,962
Pakistan | 1.7%
Oil & Gas Development Co., Ltd.		43,563,549		115,006,886
Pakistan Petroleum, Ltd.		67,610,602		153,549,895
				268,556,781
Philippines | 1.5%
Philippine Long Distance Telephone Co. Sponsored ADR		3,588,550		241,796,499
Russia | 11.4%
Alrosa AO (a), (b)		102,425,222		126,015,389
Eurasia Drilling Co., Ltd. GDR		2,707,753		85,294,219
Gazprom OAO Sponsored ADR (a)		39,575,454		344,900,082
Lukoil OAO Sponsored ADR		2,030,138		121,219,540

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

Semi-Annual Report  19

Description	Shares		Value
Lazard Emerging Markets Equity Portfolio (concluded)
Magnit OJSC Sponsored GDR		180,006	$	10,620,354
Magnit OJSC Sponsored GDR (b), (c)		1,761,265		103,914,635
MegaFon OAO GDR (b), (c)		5,557,964		175,075,866
Mobile TeleSystems OJSC Sponsored ADR		15,899,643		313,858,953
Oriflame Cosmetics SA SDR		2,244,777		52,309,985
Sberbank of Russia (a), (b)		187,500,225		466,336,122
				1,799,545,145
South Africa | 8.3%
Bidvest Group, Ltd.		5,369,121		142,661,609
Imperial Holdings, Ltd.		6,489,096		122,032,835
Nedbank Group, Ltd.		5,253,040		113,195,973
PPC, Ltd.		33,203,212		97,876,887
Sanlam, Ltd.		20,145,136		116,968,702
Shoprite Holdings, Ltd.		14,532,766		210,441,557
Standard Bank Group, Ltd.		8,357,501		113,948,063
Tiger Brands, Ltd.		3,995,994		115,216,888
Truworths International, Ltd.		8,181,115		57,687,053
Vodacom Group, Ltd.		9,129,877		112,846,482
Woolworths Holdings, Ltd.		14,337,770		105,359,354
				1,308,235,403
South Korea | 13.3%
Coway Co., Ltd.		1,426,633		119,426,582
Hanwha Life Insurance Co., Ltd.		26,571,573		169,650,486
Hyundai Mobis		907,985		254,860,387
KB Financial Group, Inc.		6,752,140		234,903,467
KT&G Corp.		2,492,959		220,517,721
Samsung Electronics Co., Ltd.		382,031		499,154,954
Shinhan Financial Group Co., Ltd.		7,599,894		351,902,583
SK Hynix, Inc. (a)		5,225,450		250,736,902
				2,101,153,082

Description	Shares		Value
Taiwan | 4.5%
Hon Hai Precision Industry Co., Ltd.		60,600,329	$	202,961,782
Taiwan Semiconductor Manufacturing Co., Ltd.		118,322,284		501,298,444
				704,260,226
Thailand | 2.5%
CP All Public Co. Ltd. (b)		98,696,600		145,969,398
PTT Exploration & Production Public Co. Ltd. (b)		24,022,370		123,979,263
The Siam Cement Public Co. Ltd.		9,307,400		130,771,049
				400,719,710
Turkey | 4.6%
Akbank TAS		36,742,759		135,101,526
Koc Holding AS		46,856,246		230,012,724
Turkcell Iletisim Hizmetleri AS (a)		27,353,848		171,074,524
Turkiye Is Bankasi AS, C Shares		72,178,756		195,215,837
				731,404,611
Total Common Stocks (Identified cost $13,175,418,761)				15,133,742,323
Short-Term Investment | 3.1%
State Street Institutional Treasury Money Market Fund (Identified cost $492,860,477)		492,860,477		492,860,477
Total Investments | 99.0% (Identified cost $13,668,279,238) (d)			$	15,626,602,800
Cash and Other Assets in Excess of Liabilities | 1.0%				157,320,573
Net Assets | 100.0%			$	15,783,923,373

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

20  Semi-Annual Report

Description	Shares		Value
Lazard Emerging Markets Core Equity Portfolio
Common Stocks | 95.3%
Brazil | 4.2%
Ambev SA ADR		45,960	$	323,559
Cosan, Ltd., Class A		19,295		261,640
Klabin SA		49,960		250,987
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA		11,935		206,776
Via Varejo SA		19,700		220,672
				1,263,634
Canada | 1.9%
Gran Tierra Energy, Inc. (a)		70,400		572,014
China | 14.2%
Anhui Conch Cement Co., Ltd., Class H		116,000		400,367
Baidu, Inc. Sponsored ADR (a)		2,354		439,751
Beijing Capital International Airport Co., Ltd., Class H		284,000		194,209
China Lesso Group Holdings, Ltd.		310,000		165,991
China Petroleum & Chemical Corp. ADR		3,500		332,605
CSR Corp., Ltd., Class H		342,000		257,259
ENN Energy Holdings, Ltd.		42,000		301,843
Industrial and Commercial Bank of China, Ltd., Class H		1,639,000		1,036,218
PICC Property & Casualty Co., Ltd., Class H		200,000		303,468
Vipshop Holdings, Ltd. ADS (a)		2,600		488,124
Want Want China Holdings, Ltd.		233,000		334,901
				4,254,736
Colombia | 0.8%
Pacific Rubiales Energy Corp.		11,585		235,381
Greece | 0.7%
Piraeus Bank SA (a)		92,510		202,212
Hong Kong | 3.9%
Brilliance China Automotive Holdings, Ltd.		252,000		471,460
Haier Electronics Group Co., Ltd.		151,000		395,502
Melco Crown Entertainment, Ltd. ADR		8,690		310,320
				1,177,282

Description	Shares		Value
India | 6.5%
Dr Reddy’s Laboratories, Ltd. ADR		6,100	$	263,215
HDFC Bank, Ltd. Sponsored ADR		9,669		452,703
ICICI Bank, Ltd. Sponsored ADR (a)		12,400		618,760
Tata Motors, Ltd. Sponsored ADR		16,100		628,866
				1,963,544
Indonesia | 2.6%
PT Bank Mandiri (Persero) Tbk		415,900		341,175
PT Matahari Department Store Tbk		162,800		189,510
PT Semen Indonesia (Persero) Tbk		204,600		260,172
				790,857
Macau | 1.4%
Sands China, Ltd.		56,800		430,558
Malaysia | 1.7%
CIMB Group Holdings Berhad		90,756		206,893
Sapurakencana Petroleum Berhad (a)		227,700		310,597
				517,490
Mexico | 9.4%
Alsea SAB de CV (a)		66,200		238,041
Cemex SAB de CV Sponsored ADR (a)		60,618		801,976
Fibra Uno Administracion SA de CV REIT		101,100		354,495
Genomma Lab Internacional SAB de CV, B Shares (a)		111,151		301,149
Gruma SAB de CV (a)		27,500		329,127
Grupo Financiero Banorte SAB de CV, Class O		53,100		379,745
Grupo Televisa SAB Sponsored ADR		12,400		425,444
				2,829,977
Peru | 1.0%
Credicorp, Ltd.		1,950		303,166
Philippines | 2.0%
Alliance Global Group, Inc.		544,700		363,133
GT Capital Holdings, Inc.		12,590		250,935
				614,068
Poland | 0.8%
Powszechna Kasa Oszczednosci Bank Polski SA		18,179		225,674
Portugal | 0.8%
Jeronimo Martins SGPS SA		13,963		229,721

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

Semi-Annual Report  21

Description	Shares		Value
Lazard Emerging Markets Core Equity Portfolio (concluded)
Russia | 4.0%
Magnit OJSC Sponsored GDR		3,634	$	214,406
Magnit OJSC Sponsored GDR (b), (c)		2,390		141,010
Mail.ru Group, Ltd. GDR (a)		8,882		313,090
MegaFon OAO GDR (b), (c)		9,793		308,480
Sberbank of Russia Sponsored ADR		23,499		238,065
				1,215,051
South Africa | 4.7%
Aspen Pharmacare Holdings, Ltd.		11,853		333,121
Life Healthcare Group Holdings Pte, Ltd.		81,070		316,276
MTN Group, Ltd.		20,602		433,911
Naspers, Ltd., N Shares		2,834		333,631
				1,416,939
South Korea | 9.6%
DGB Financial Group, Inc.		36,735		550,044
Samsung Electronics Co., Ltd.		800		1,045,266
SK Hynix, Inc. (a)		15,562		746,724
SK Telecom Co., Ltd. ADR		21,400		555,116
				2,897,150
Switzerland | 1.2%
Dufry AG (a)		1,997		363,009
Taiwan | 15.5%
Advanced Semiconductor Engineering, Inc. ADR		53,500		347,750
Delta Electronics, Inc.		68,000		495,345
Eclat Textile Co., Ltd.		25,000		303,101
Hermes Microvision, Inc.		5,000		198,439
Hon Hai Precision Industry Co., Ltd. GDR		106,447		707,872
Largan Precision Co., Ltd.		11,000		876,817
MediaTek, Inc.		18,000		304,441
Merida Industry Co., Ltd.		48,000		318,307
President Chain Store Corp.		32,000		256,146
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		39,549		845,953
				4,654,171
Thailand | 2.4%
Bangkok Bank Public Co. Ltd.		35,000		208,674
Kasikornbank Public Co. Ltd.		78,600		496,472
				705,146

Description	Shares		Value
Turkey | 2.4%
TAV Havalimanlari Holding AS		61,366	$	488,066
Turk Traktor ve Ziraat Makineleri AS		7,436		242,181
				730,247
United Kingdom | 2.6%
Hikma Pharmaceuticals PLC		14,476		415,711
Mondi PLC		19,762		359,176
				774,887
United States | 1.0%
First Cash Financial Services, Inc. (a)		4,965		285,934
Total Common Stocks (Identified cost $26,402,643)				28,652,848
Preferred Stocks | 3.0%
Brazil | 3.0%
Alpargatas SA		54,020		281,163
Itau Unibanco Holding SA ADR		43,080		619,491
Total Preferred Stocks (Identified cost $860,514)				900,654
Short-Term Investment | 0.3%
State Street Institutional Treasury Money Market Fund (Identified cost $101,169)		101,169		101,169
Total Investments | 98.6% (Identified cost $27,364,326) (d)			$	29,654,671
Cash and Other Assets in Excess of Liabilities | 1.4%				425,224
Net Assets | 100.0%			$	30,079,895

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

22  Semi-Annual Report

Description	Shares		Value
Lazard Developing Markets Equity Portfolio
Common Stocks | 95.0%
Brazil | 11.8%
Cyrela Brazil Realty SA Empreendimentos e Participacoes		1,129,260	$	7,063,305
EDP - Energias do Brasil SA		747,500		3,670,683
Estacio Participacoes SA		1,487,400		19,690,631
Gerdau SA Sponsored ADR		1,440,350		8,483,662
Localiza Rent a Car SA		275,120		4,537,394
Petroleo Brasileiro SA Sponsored ADR		667,700		10,442,828
Vale SA Sponsored ADR		504,715		6,677,380
Via Varejo SA		398,700		4,466,090
				65,031,973
China | 16.9%
AAC Technologies Holdings, Inc.		1,085,200		7,056,936
Agricultural Bank of China, Ltd., Class H		20,927,500		9,234,627
Anhui Conch Cement Co., Ltd., Class H		2,445,500		8,440,484
Anton Oilfield Services Group		8,832,000		6,016,845
Baidu, Inc. Sponsored ADR (a)		34,965		6,531,812
China Construction Bank Corp., Class H (a)		4,925,184		3,723,882
China Merchants Bank Co., Ltd., Class H (a)		3,653,711		7,212,760
China National Materials Co., Ltd., Class H		15,674,890		2,790,998
China Oilfield Services, Ltd., Class H		3,234,000		7,769,545
New Oriental Education & Technology Group, Inc. Sponsored ADR		341,800		9,081,626
Ping An Insurance (Group) Co. of China, Ltd., Class H		1,633,500		12,635,261
Zhuzhou CSR Times Electric Co., Ltd., Class H (a)		2,982,000		9,041,727
Zoomlion Heavy Industry Science and Technology Co., Ltd., Class H (a)		6,075,400		3,762,634
				93,299,137
Colombia | 6.1%
Bancolombia SA Sponsored ADR		163,600		9,456,080
Cemex Latam Holdings SA (a)		1,114,818		10,925,513
Pacific Rubiales Energy Corp.		642,529		13,054,711
				33,436,304

Description	Shares		Value
Greece | 1.4%
Piraeus Bank SA (a)		3,508,320	$	7,782,388
Hong Kong | 4.1%
China State Construction International Holdings, Ltd.		6,103,340		10,725,574
Techtronic Industries Co., Ltd.		3,703,000		11,872,878
				22,598,452
India | 13.5%
Aurobindo Pharma, Ltd.		1,294,504		15,899,079
Cairn India, Ltd.		1,130,837		6,864,554
HDFC Bank, Ltd. Sponsored ADR		193,800		9,073,716
ICICI Bank, Ltd. Sponsored ADR (a)		282,130		14,078,287
Reliance Industries, Ltd.		428,833		7,226,954
Shriram Transport Finance Co., Ltd.		591,493		8,860,839
Tata Motors, Ltd. Sponsored ADR		324,500		12,674,970
				74,678,399
Indonesia | 1.4%
PT Bank Rakyat Indonesia (Persero) Tbk		9,083,000		7,910,753
Macau | 2.2%
Sands China, Ltd.		1,594,000		12,082,925
Mexico | 3.3%
Genomma Lab Internacional SAB de CV, B Shares (a)		4,130,300		11,190,507
Grupo Financiero Banorte SAB de CV, Class O		970,657		6,941,655
				18,132,162
Peru | 1.8%
Credicorp, Ltd.		62,500		9,716,875
Poland | 0.7%
Eurocash SA		314,122		4,159,125
Russia | 10.0%
Globaltrans Investment PLC Sponsored GDR		565,624		6,476,395
Novatek OAO Sponsored GDR		124,863		15,532,957
Sberbank of Russia (a), (b)		3,278,211		8,153,314
TMK OAO GDR		767,000		7,439,900
X5 Retail Group NV GDR (a)		543,019		11,723,780
Yandex NV Class A (a)		163,000		5,809,320
				55,135,666

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

Semi-Annual Report   23

Description	Shares		Value
Lazard Developing Markets Equity Portfolio (concluded)
South Africa | 1.9%
Exxaro Resources, Ltd.		388,359	$	5,057,614
Standard Bank Group, Ltd.		379,901		5,179,656
				10,237,270
South Korea | 6.7%
Halla Visteon Climate Control Corp.		146,610		6,636,428
Kia Motors Corp.		113,381		6,342,523
Korea Aerospace Industries, Ltd.		174,104		5,368,694
Samsung Electronics Co., Ltd.		14,408		18,825,238
				37,172,883
Taiwan | 7.3%
Catcher Technology Co., Ltd.		561,000		5,232,718
Hiwin Technologies Corp.		738,370		9,112,779
MediaTek, Inc.		788,000		13,327,751
Taiwan Semiconductor Manufacturing Co., Ltd.		3,004,000		12,727,108
				40,400,356
Turkey | 4.0%
Aselsan Elektronik Sanayi Ve Ticaret AS		1,483,519		6,575,212
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		5,640,375		7,081,751
TAV Havalimanlari Holding AS		1,066,093		8,479,027
				22,135,990
United States | 1.9%
First Cash Financial Services, Inc. (a)		114,900		6,617,091
Freeport-McMoRan Copper & Gold, Inc.		106,900		3,901,850
				10,518,941
Total Common Stocks (Identified cost $489,844,366)				524,429,599

Description	Shares		Value
Preferred Stocks | 3.3%
Brazil | 3.3%
Banco Bradesco SA ADR		575,988	$	8,363,346
Marcopolo SA		4,993,100		9,694,681
Total Preferred Stocks (Identified cost $22,540,753)				18,058,027
Short-Term Investment | 1.8%
State Street Institutional Treasury Money Market Fund (Identified cost $10,149,548)		10,149,548		10,149,548
Total Investments | 100.1% (Identified cost $522,534,667) (d)			$	552,637,174
Liabilities in Excess of Cash and Other Assets | (0.1)%				(433,012	)
Net Assets | 100.0%			$	552,204,162

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

24  Semi-Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio
Common Stocks | 93.7%
Argentina | 1.1%
YPF Sociedad Anonima Sponsored ADR		247,565	$	8,090,424
Brazil | 12.8%
Ambev SA ADR		656,375		4,620,880
Banco do Brasil SA		930,357		10,463,621
Brasil Insurance Participacoes e Administracao SA		598,305		2,910,966
Cielo SA Sponsored ADR		535,047		11,083,499
Companhia de Locacao das Americas		718,500		1,417,814
Cyrela Brazil Realty SA Empreendimentos e Participacoes		820,200		5,130,194
Estacio Participacoes SA		853,600		11,300,204
Even Construtora e Incorporadora SA		974,100		2,887,692
GAEC Educacao SA		185,200		2,496,156
Grendene SA		542,975		3,393,747
Iochpe-Maxion SA		322,200		2,877,124
Localiza Rent a Car SA		512,700		8,455,663
Natura Cosmeticos SA		223,995		3,776,336
Petroleo Brasileiro SA Sponsored ADR		549,900		8,600,436
Souza Cruz SA		503,235		5,186,088
Tegma Gestao Logistica SA		306,845		2,917,770
Via Varejo SA		374,300		4,192,770
				91,710,960
Cambodia | 0.4%
NagaCorp, Ltd.		3,176,000		2,798,834
China | 14.1%
AAC Technologies Holdings, Inc.		709,640		4,614,711
Agricultural Bank of China, Ltd., Class H		18,057,000		7,967,968
Anhui Conch Cement Co., Ltd., Class H		1,665,000		5,746,639
Baidu, Inc. Sponsored ADR (a)		83,776		15,650,194
China Construction Bank Corp., Class H (a)		14,945,281		11,299,978
China Lesso Group Holdings, Ltd.		6,014,000		3,220,234
China Oilfield Services, Ltd., Class H		1,158,000		2,782,045
China Pioneer Pharma Holdings, Ltd.		1,873,000		1,128,575
China Shenhua Energy Co., Ltd., Class H (a)		1,863,000		5,384,393

Description	Shares		Value
China ZhengTong Auto Services Holdings, Ltd.		6,220,500	$	3,499,352
CNOOC, Ltd.		4,873,800		8,778,676
Greatview Aseptic Packaging Co., Ltd.		5,831,000		3,987,446
NetEase, Inc. Sponsored ADR		128,485		10,068,084
New Oriental Education & Technology Group, Inc. Sponsored ADR		89,000		2,364,730
Ping An Insurance (Group) Co. of China, Ltd., Class H		1,135,500		8,783,189
Zhuzhou CSR Times Electric Co., Ltd., Class H (a)		913,000		2,768,309
Zoomlion Heavy Industry Science and Technology Co., Ltd., Class H (a)		4,074,040		2,523,146
				100,567,669
Colombia | 3.2%
Bancolombia SA Sponsored ADR		83,620		4,833,236
Pacific Rubiales Energy Corp.		897,085		18,226,702
				23,059,938
Egypt | 0.7%
Commercial International Bank Egypt SAE GDR		973,542		4,750,885
Georgia | 0.3%
Bank of Georgia Holdings PLC		59,181		2,380,135
Greece | 1.0%
Piraeus Bank SA (a)		3,107,058		6,892,283
Hong Kong | 3.3%
China Mobile, Ltd. Sponsored ADR		134,495		6,537,802
China State Construction International Holdings, Ltd.		5,130,504		9,015,982
Future Bright Holdings, Ltd.		5,256,000		2,543,094
Techtronic Industries Co., Ltd.		1,750,000		5,611,001
				23,707,879
Hungary | 0.7%
OTP Bank PLC		243,916		4,689,000
India | 5.0%
Axis Bank, Ltd.		380,584		12,131,609
Bajaj Auto, Ltd.		26,407		1,007,633
ICICI Bank, Ltd. Sponsored ADR (a)		200,890		10,024,411
Reliance Industries, Ltd.		307,609		5,184,013
Tata Motors, Ltd. Sponsored ADR		195,200		7,624,512
				35,972,178

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

Semi-Annual Report   25

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio (continued)
Indonesia | 4.8%
PT Bank Mandiri (Persero) Tbk		10,002,500	$	8,205,341
PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk		18,564,600		1,291,927
PT Bank Rakyat Indonesia (Persero) Tbk		9,284,018		8,085,828
PT Bekasi Fajar Industrial Estate Tbk		50,143,800		1,784,958
PT Pakuwon Jati Tbk		98,827,400		2,909,385
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		170,950		7,121,777
PT United Tractors Tbk		2,696,680		5,254,602
				34,653,818
Kazakhstan | 0.3%
KCell JSC GDR		134,806		2,028,830
Macau | 2.1%
Sands China, Ltd.		936,600		7,099,666
Wynn Macau, Ltd.		1,930,330		7,596,390
				14,696,056
Malaysia | 0.4%
Kossan Rubber Industries Berhad		2,449,600		2,822,647
Mexico | 3.1%
Credito Real SAB de CV		1,076,500		2,410,477
Genomma Lab Internacional SAB de CV, B Shares (a)		2,757,756		7,471,779
Grupo Financiero Banorte SAB de CV, Class O		739,800		5,290,681
Grupo Mexico SAB de CV, Series B		1,028,901		3,433,239
Kimberly-Clark de Mexico SAB de CV, Series A		1,353,800		3,799,426
				22,405,602
Peru | 0.6%
Credicorp, Ltd.		29,000		4,508,630
Philippines | 0.7%
Philippine Long Distance Telephone Co. Sponsored ADR		73,802		4,972,779

Description	Shares		Value
Russia | 10.8%
DIXY Group OJSC (a), (b)		218,821	$	2,602,408
Gazprom OAO Sponsored ADR (a)		866,846		7,554,563
Globaltrans Investment PLC Sponsored GDR		250,252		2,865,385
Lukoil OAO Sponsored ADR		90,473		5,412,095
MegaFon OAO GDR (a)		8,803		277,294
MegaFon OAO GDR (b), (c)		209,266		6,591,879
Mobile TeleSystems OJSC Sponsored ADR		476,700		9,410,058
Novatek OAO Sponsored GDR		90,731		11,286,936
Oriflame Cosmetics SA SDR		142,051		3,310,211
Sberbank of Russia (a), (b)		2,244,814		5,583,129
Sberbank of Russia Sponsored ADR		920,777		9,364,302
TMK OAO GDR		483,638		4,691,289
X5 Retail Group NV GDR (a)		135,668		2,929,072
Yandex NV Class A (a)		146,440		5,219,122
				77,097,743
South Africa | 3.0%
AVI, Ltd.		320,890		1,848,097
Exxaro Resources, Ltd.		351,527		4,577,949
Standard Bank Group, Ltd.		479,722		6,540,639
Sun International, Ltd.		191,994		1,985,834
Tiger Brands, Ltd.		162,239		4,677,853
Truworths International, Ltd.		213,816		1,507,669
				21,138,041
South Korea | 10.2%
Eugene Technology Co., Ltd.		133,966		2,522,289
Fila Korea, Ltd.		36,646		3,480,609
Grand Korea Leisure Co., Ltd.		45,228		1,877,626
Hanwha Life Insurance Co., Ltd.		835,182		5,332,354
Hyundai Mobis		33,473		9,395,466
KT Skylife Co., Ltd.		145,460		3,709,101
KT&G Corp.		71,623		6,335,500
Partron Co., Ltd.		270,585		2,888,237
Samsung Electronics Co., Ltd.		14,698		19,204,147
Shinhan Financial Group Co., Ltd.		187,750		8,693,504
SK Hynix, Inc. (a)		198,900		9,543,976
				72,982,809

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

26  Semi-Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio (concluded)
Taiwan | 8.5%
Catcher Technology Co., Ltd.		493,000	$	4,598,449
Chailease Holding Co., Ltd. (a)		1,079,000		2,713,943
Chicony Electronics Co., Ltd.		1,304,000		3,520,075
GeoVision, Inc.		585,000		2,968,300
Hon Hai Precision Industry Co., Ltd.		1,999,279		6,695,958
King Slide Works Co., Ltd.		50,000		715,635
Macauto Industrial Co., Ltd.		505,000		2,469,355
Makalot Industrial Co., Ltd.		678,000		3,667,258
MediaTek, Inc.		355,000		6,004,254
Radiant Opto-Electronics Corp.		890,280		3,816,593
Sinmag Equipment Corp.		496,000		2,790,810
Taiwan Semiconductor Manufacturing Co., Ltd.		4,871,000		20,637,065
				60,597,695
Thailand | 0.8%
Dynasty Ceramic Public Co. Ltd. (b)		1,515,900		2,720,727
Major Cineplex Group Public Co. Ltd. (b)		273,500		159,271
Supalai Public Co. Ltd. (b)		4,487,700		3,028,212
				5,908,210
Turkey | 5.8%
Aselsan Elektronik Sanayi Ve Ticaret AS		852,773		3,779,637
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		3,188,786		4,003,668
Koc Holding AS ADR		407,767		9,888,350
TAV Havalimanlari Holding AS		605,336		4,814,458
Tofas Turk Otomobil Fabrikasi AS		372,408		2,311,510
Turkcell Iletisim Hizmetleri AS ADR (a)		389,075		6,069,570
Turkiye Is Bankasi AS, C Shares		2,581,954		6,983,195
Turkiye Sinai Kalkinma Bankasi AS		4,756,276		3,883,865
				41,734,253
Total Common Stocks (Identified cost $620,238,029)				670,167,298

Description	Shares		Value
Preferred Stocks | 2.7%
Brazil | 2.7%
Banco ABC Brasil SA		578,816	$	3,562,751
Banco Bradesco SA ADR		345,420		5,015,498
Marcopolo SA		3,175,600		6,165,795
Vale SA Sponsored ADR		376,315		4,478,148
Total Preferred Stocks (Identified cost $20,653,228)				19,222,192
Short-Term Investment | 3.1%
State Street Institutional Treasury Money Market Fund (Identified cost $22,456,633)		22,456,633		22,456,633
Total Investments | 99.5% (Identified cost $663,347,890) (d)			$	711,846,123
Cash and Other Assets in Excess of Liabilities | 0.5%				3,307,084
Net Assets | 100.0%			$	715,153,207

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

Semi-Annual Report  27

Description	Shares		Value
Lazard Emerging Markets Multi Asset Portfolio
Common Stocks | 57.3%
Argentina | 0.7%
YPF Sociedad Anonima Sponsored ADR		57,087	$	1,865,603
Brazil | 7.8%
Ambev SA ADR		159,400		1,122,176
Banco do Brasil SA		223,290		2,511,318
Brasil Insurance Participacoes e Administracao SA		145,005		705,501
Cielo SA Sponsored ADR		125,609		2,601,990
Companhia de Locacao das Americas		154,900		305,664
Cyrela Brazil Realty SA Empreendimentos e Participacoes		192,580		1,204,551
Estacio Participacoes SA		204,540		2,707,760
Even Construtora e Incorporadora SA		237,600		704,358
GAEC Educacao SA		43,600		587,648
Grendene SA		132,095		825,631
Iochpe-Maxion SA		76,000		678,651
Localiza Rent a Car SA		114,300		1,885,084
Natura Cosmeticos SA		51,455		867,481
Petroleo Brasileiro SA Sponsored ADR		129,070		2,018,655
Souza Cruz SA		120,564		1,242,472
Tegma Gestao Logistica SA		74,632		709,671
Via Varejo SA		87,375		978,742
				21,657,353
Cambodia | 0.2%
NagaCorp, Ltd.		774,000		682,083
China | 8.6%
AAC Technologies Holdings, Inc.		169,500		1,102,240
Agricultural Bank of China, Ltd., Class H		4,306,000		1,900,098
Anhui Conch Cement Co., Ltd., Class H		391,000		1,349,511
Baidu, Inc. Sponsored ADR (a)		19,996		3,735,453
China Construction Bank Corp., Class H		3,572,065		2,700,803
China Lesso Group Holdings, Ltd.		1,430,000		765,702
China Oilfield Services, Ltd., Class H		282,000		677,493
China Pioneer Pharma Holdings, Ltd.		442,000		266,327
China Shenhua Energy Co., Ltd., Class H		412,500		1,192,196
China ZhengTong Auto Services Holdings, Ltd.		1,478,000		831,451
CNOOC, Ltd.		1,154,000		2,078,582

Description	Shares		Value
Greatview Aseptic Packaging Co., Ltd.		1,365,000	$	933,436
NetEase, Inc. Sponsored ADR		30,665		2,402,909
New Oriental Education & Technology Group, Inc. Sponsored ADR		20,900		555,313
Ping An Insurance (Group) Co. of China, Ltd., Class H		271,175		2,097,561
Zhuzhou CSR Times Electric Co., Ltd., Class H		216,740		657,178
Zoomlion Heavy Industry Science and
Technology Co., Ltd., Class H		1,036,370		641,848
				23,888,101
Colombia | 2.0%
Bancolombia SA Sponsored ADR		19,920		1,151,376
Pacific Rubiales Energy Corp.		216,255		4,393,804
				5,545,180
Egypt | 0.4%
Commercial International Bank Egypt SAE GDR		214,034		1,044,486
Georgia | 0.2%
Bank of Georgia Holdings PLC		13,964		561,603
Greece | 0.6%
Piraeus Bank SA (a)		754,031		1,672,642
Hong Kong | 2.1%
China Mobile, Ltd. Sponsored ADR		32,528		1,581,186
China State Construction International Holdings, Ltd.		1,224,125		2,151,190
Future Bright Holdings, Ltd.		1,254,000		606,743
Techtronic Industries Co., Ltd.		431,000		1,381,909
				5,721,028
Hungary | 0.4%
OTP Bank PLC		57,705		1,109,311
India | 3.1%
Axis Bank, Ltd.		90,048		2,870,397
Bajaj Auto, Ltd.		6,201		236,617
ICICI Bank, Ltd. Sponsored ADR		47,940		2,392,206
Reliance Industries, Ltd.		73,781		1,243,402
Tata Motors, Ltd. Sponsored ADR		46,050		1,798,713
				8,541,335

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

28   Semi-Annual Report

Description	Shares		Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
Indonesia | 2.9%
PT Bank Mandiri (Persero) Tbk		2,214,300	$	1,816,454
PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk		4,001,200		278,447
PT Bank Rakyat Indonesia (Persero) Tbk		2,214,200		1,928,436
PT Bekasi Fajar Industrial Estate Tbk		10,858,700		386,535
PT Pakuwon Jati Tbk		23,791,200		700,390
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		40,760		1,698,062
PT United Tractors Tbk		608,715		1,186,109
				7,994,433
Kazakhstan | 0.2%
KCell JSC GDR		32,456		488,463
Macau | 1.3%
Sands China, Ltd.		224,500		1,701,767
Wynn Macau, Ltd.		464,400		1,827,544
				3,529,311
Malaysia | 0.2%
Kossan Rubber Industries Berhad		579,100		667,291
Mexico | 1.9%
Credito Real SAB de CV		254,500		569,871
Genomma Lab Internacional SAB de CV, B Shares (a)		652,765		1,768,582
Grupo Financiero Banorte SAB de CV, Class O		176,500		1,262,240
Grupo Mexico SAB de CV, Series B		232,009		774,168
Kimberly-Clark de Mexico SAB de CV, Series A		312,035		875,723
				5,250,584
Peru | 0.4%
Credicorp, Ltd.		6,885		1,070,411
Philippines | 0.4%
Philippine Long Distance Telephone Co. Sponsored ADR		16,535		1,114,128
Russia | 6.5%
DIXY Group OJSC (a), (b)		51,722		615,123
Gazprom OAO Sponsored ADR		200,077		1,743,671
Globaltrans Investment PLC Sponsored GDR		60,180		689,061

Description	Shares		Value
Lukoil OAO Sponsored ADR		20,085	$	1,201,485
MegaFon OAO GDR (a)		5,473		172,400
MegaFon OAO GDR (b), (c)		44,930		1,415,295
Mobile TeleSystems OJSC Sponsored ADR		110,410		2,179,493
Novatek OAO Sponsored GDR		20,822		2,590,257
Oriflame Cosmetics SA SDR		31,986		745,369
Sberbank of Russia (a), (b)		527,921		1,313,004
Sberbank of Russia Sponsored ADR		219,712		2,234,471
TMK OAO GDR		110,993		1,076,632
X5 Retail Group NV GDR (a)		32,380		699,084
Yandex NV Class A (a)		34,475		1,228,689
				17,904,034
South Africa | 1.8%
AVI, Ltd.		75,864		436,923
Exxaro Resources, Ltd.		83,838		1,091,825
Standard Bank Group, Ltd.		112,946		1,539,931
Sun International, Ltd.		43,883		453,891
Tiger Brands, Ltd.		36,468		1,051,486
Truworths International, Ltd.		45,276		319,252
				4,893,308
South Korea | 6.3%
Eugene Technology Co., Ltd.		31,661		596,108
Fila Korea, Ltd.		8,870		842,466
Grand Korea Leisure Co., Ltd.		10,672		443,045
Hanwha Life Insurance Co., Ltd.		190,220		1,214,490
Hyundai Mobis		8,130		2,281,992
KT Skylife Co., Ltd.		34,560		881,249
KT&G Corp.		16,280		1,440,067
Partron Co., Ltd.		65,743		701,744
Samsung Electronics Co., Ltd.		3,507		4,582,184
Shinhan Financial Group Co., Ltd.		44,930		2,080,422
SK Hynix, Inc. (a)		47,500		2,279,230
				17,342,997
Taiwan | 5.2%
Catcher Technology Co., Ltd.		114,000		1,063,333
Chailease Holding Co., Ltd.		255,000		641,386
Chicony Electronics Co., Ltd.		309,000		834,128
GeoVision, Inc.		142,000		720,510
Hon Hai Precision Industry Co., Ltd. GDR		230,584		1,533,384
King Slide Works Co., Ltd.		12,000		171,752
Macauto Industrial Co., Ltd.		119,000		581,888
Makalot Industrial Co., Ltd.		163,000		881,657
MediaTek, Inc.		84,000		1,420,725
Radiant Opto-Electronics Corp.		213,930		917,109

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

Semi-Annual Report   29

Description	Shares		Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
Sinmag Equipment Corp.		120,000	$	675,196
Taiwan Semiconductor Manufacturing Co., Ltd.		425,000		1,800,606
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		142,085		3,039,198
				14,280,872
Thailand | 0.5%
Dynasty Ceramic Public Co. Ltd. (b)		361,400		648,638
Major Cineplex Group Public Co. Ltd. (b)		66,200		38,551
Supalai Public Co. Ltd. (b)		1,060,600		715,672
				1,402,861
Turkey | 3.6%
Aselsan Elektronik Sanayi Ve Ticaret AS		203,390		901,460
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		735,816		923,851
Koc Holding AS ADR		97,604		2,366,897
TAV Havalimanlari Holding AS		144,475		1,149,062
Tofas Turk Otomobil Fabrikasi AS		87,637		543,957
Turkcell Iletisim Hizmetleri AS ADR (a)		88,950		1,387,620
Turkiye Is Bankasi AS, C Shares		590,153		1,596,137
Turkiye Sinai Kalkinma Bankasi AS		1,157,255		944,988
				9,813,972
Total Common Stocks (Identified cost $151,366,428)				158,041,390
Preferred Stocks | 1.6%
Brazil | 1.6%
Banco ABC Brasil SA		136,560		840,559
Banco Bradesco SA ADR		82,420		1,196,738
Marcopolo SA		757,920		1,471,590
Vale SA Sponsored ADR		86,510		1,029,469
Total Preferred Stocks (Identified cost $5,313,158)				4,538,356

Description	Security Currency	Principal Amount (000)		Value
Corporate Bonds | 5.4%
Argentina | 0.2%
Mastellone Hermanos SA, 12.625%, 07/03/21 (c)	USD		290	$	293,263
YPF Sociedad Anonima, 8.750%, 04/04/24 (c)	USD		325		339,592
					632,855
Brazil | 0.6%
Banco do Brasil SA, 9.000%, 06/18/24 (c)	USD		625		619,504
JBS Investments GmbH, 7.250%, 04/03/24 (c)	USD		275		284,625
OAS Finance, Ltd., 8.000%, 07/02/21 (c)	USD		200		202,000
Odebrecht Offshore Drilling Finance, Ltd.:
6.625%, 10/01/23	USD		198		210,636
6.625%, 10/01/23 (c)	USD		198		210,635
Petrobras Global Finance BV, 6.250%, 03/17/24	USD		150		159,660
					1,687,060
Bulgaria | 0.1%
ContourGlobal Power Holdings SA, 7.125%, 06/01/19 (c)	USD		350		349,300
Chile | 0.1%
GeoPark Latin America, Ltd. Agencia en Chile, 7.500%, 02/11/20	USD		275		297,688
China | 0.4%
BCP Singapore VI Cayman Financing Co., Ltd.:
8.000%, 04/15/21	USD		100		102,250
8.000%, 04/15/21 (c)	USD		200		204,500
Country Garden Holdings Co., Ltd.,
7.250%, 04/04/21	USD		200		195,000
Kaisa Group Holdings, Ltd., 8.875%, 03/19/18	USD		200		205,500
Maoye International Holdings, Ltd., 7.750%, 05/19/17 (c)	USD		300		308,070
MIE Holdings Corp., 7.500%, 04/25/19 (c)	USD		200		211,664
					1,226,984

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

30   Semi-Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
Colombia | 0.2%
Millicom International Cellular SA, 4.750%, 05/22/20	USD		325	$	325,000
Pacific Rubiales Energy Corp., 7.250%, 12/12/21	USD		300		333,000
					658,000
Georgia | 0.2%
Bank of Georgia JSC, 7.750%, 07/05/17	USD		400		428,000
Guatemala | 0.2%
Comcel Trust, 6.875%, 02/06/24 (c)	USD		325		351,000
Industrial Senior Trust, 5.500%, 11/01/22 (c)	USD		325		325,000
					676,000
India | 0.1%
Vedanta Resources PLC, 9.500%, 07/18/18	USD		275		316,937
Indonesia | 0.2%
PT Berau Coal Energy Tbk, 7.250%, 03/13/17	USD		300		291,000
PT Gajah Tunggal Tbk, 7.750%, 02/06/18	USD		200		204,000
					495,000
Iraq | 0.3%
Genel Energy Finance, Ltd., 7.500%, 05/14/19	USD		400		396,000
Gulf Keystone Petroleum, Ltd., 13.000%, 04/18/17 (c)	USD		400		371,000
					767,000
Kazakhstan | 0.2%
Halyk Savings Bank of Kazakhstan JSC, 7.250%, 01/28/21	USD		200		217,000
Nostrum Oil & Gas Finance BV, 6.375%, 02/14/19 (c)	USD		200		209,000
Zhaikmunai LP, 7.125%, 11/13/19	USD		200		217,500
					643,500
Macau | 0.1%
MCE Finance, Ltd., 5.000%, 02/15/21	USD		200		202,000

Description	Security Currency	Principal Amount (000)		Value
Mexico | 0.4%
America Movil SAB de CV:
6.000%, 06/09/19	MXN		2,000	$	156,781
6.450%, 12/05/22	MXN		2,000		152,870
Bio Pappel SAB de CV, 10.000%, 08/27/16	USD		120		120,742
Credito Real SAB de CV, 7.500%, 03/13/19 (c)	USD		300		324,000
Empresas ICA SAB de CV, 8.875%, 05/29/24 (c)	USD		350		359,800
					1,114,193
Nigeria | 0.4%
Afren PLC, 6.625%, 12/09/20 (c)	USD		200		206,500
Diamond Bank PLC, 8.750%, 05/21/19 (c)	USD		400		394,500
FBN Finance Co. BV:
8.250%, 08/07/20	USD		200		207,500
8.250%, 08/07/20 (c)	USD		250		259,375
					1,067,875
Panama | 0.1%
Avianca Holdings SA/Avianca Leasing LLC/Grupo Taca Holdings, Ltd., 8.375%, 05/10/20 (c)	USD		200		213,940
Paraguay | 0.1%
Telefonica Celular del Paraguay SA, 6.750%, 12/13/22	USD		200		215,000
Peru | 0.1%
Banco de Credito del Peru, 6.125%, 04/24/27	USD		225		239,625
Russia | 0.6%
Alliance Oil Co., Ltd., 7.000%, 05/04/20	USD		200		183,500
ALROSA Finance SA, 7.750%, 11/03/20	USD		225		248,918
EDC Finance, Ltd., 4.875%, 04/17/20 (c)	USD		400		391,000
Metalloinvest Finance, Ltd.:
5.625%, 04/17/20	USD		200		194,000
5.625%, 04/17/20 (c)	USD		250		242,500
Sberbank of Russia, 5.500%, 02/26/24 (c)	USD		275		267,438
					1,527,356

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

Semi-Annual Report   31

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
Singapore | 0.4%
Deep Drilling 7 and 8 Pte, Ltd., 14.250%, 03/05/15	USD		175	$	185,500
Oro Negro Drilling Pte, Ltd., 7.500%, 01/24/19 (c)	USD		425		432,437
Ottawa Holdings Pte, Ltd., 5.875%, 05/16/18	USD		200		176,240
Pacnet, Ltd., 9.000%, 12/12/18	USD		290		313,925
					1,108,102
Thailand | 0.1%
PTT Exploration & Production Public Co., Ltd, 4.875%, 06/18/19 (c)	USD		350		352,667
Trinidad and Tobago |0.2%
Petroleum Co. of Trinidad and Tobago Ltd.:
9.750%, 08/14/19	USD		300		377,250
6.000%, 05/08/22	USD		67		71,167
					448,417
Turkey | 0.1%
Turk Telekomunikasyon AS, 4.875%, 06/19/24 (c)	USD		275		266,778
Total Corporate Bonds (Identified cost $14,787,319)					14,934,277
Foreign Government Obligations | 11.6%
Angola | 0.5%
Republic of Angola Northern Lights III BV, 7.000%, 08/16/19	USD		1,240		1,351,848
Argentina | 0.7%
Republic of Argentina:
8.750%, 06/02/17	USD		715		652,437
8.280%, 12/31/33	USD		841		705,786
2.500%, 12/31/38 (e)	USD		1,025		491,488
					1,849,711

Description	Security Currency	Principal Amount (000)		Value
Belarus | 0.3%
Republic of Belarus, 8.950%, 01/26/18	USD		700	$	756,000
Bolivia | 0.3%
Bolivia Government Bonds:
4.875%, 10/29/22	USD		450		451,350
5.950%, 08/22/23 (c)	USD		375		395,625
					846,975
Brazil | 1.4%
Brazil NTN, 0.000%, 01/01/15	BRL		1,480		634,480
Brazil NTN-B:
6.000%, 08/15/16	BRL		680		765,889
6.000%, 08/15/18	BRL		270		303,454
6.000%, 08/15/20	BRL		40		44,680
6.000%, 08/15/22	BRL		580		659,768
6.000%, 08/15/50	BRL		1,055		1,142,558
Brazil NTN-F, 10.000%, 01/01/25	BRL		844		334,261
					3,885,090
Colombia | 0.2%
Republic of Colombia, 12.000%, 10/22/15	COP		1,076,000		625,140
Congo | 0.2%
Republic of Congo:
3.500%, 06/30/29 (c), (e)	USD		224		204,196
3.500%, 06/30/29 (e)	USD		274		249,241
					453,437
Costa Rica | 0.3%
Republic of Costa Rica, 7.000%, 04/04/44 (c)	USD		835		868,400
Ecuador | 0.8%
Republic of Ecuador:
9.375%, 12/15/15	USD		775		824,406
7.950%, 06/20/24 (c)	USD		1,390		1,421,275
					2,245,681
Georgia | 0.2%
Republic of Georgia, 6.875%, 04/12/21	USD		400		453,000

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

32   Semi-Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
Honduras | 0.1%
Honduras Government Bond, 7.500%, 03/15/24	USD		400	$	414,000
Hungary | 0.1%
Hungary, 7.625%, 03/29/41	USD		246		315,033
Indonesia | 0.2%
Indonesia Government Bond, 7.875%, 04/15/19	IDR		7,200,000		609,464
Iraq | 0.7%
Republic of Iraq, 5.800%, 01/15/28	USD		2,150		1,935,000
Ivory Coast | 0.8%
Ivory Coast, 5.750%, 12/31/32	USD		2,140		2,073,125
Kenya | 0.1%
Kenya Infrastructure Bonds:
6.000%, 08/19/19	KES		300		2,964
12.000%, 09/18/23	KES		7,750		91,134
Republic of Kenya, 6.875%, 06/24/24 (c)	USD		240		249,600
					343,698
Malaysia | 0.2%
Malaysian Government, 3.434%, 08/15/14	MYR		2,000		623,133
Mozambique | 0.4%
Republic of Mozambique, 6.305%, 09/11/20	USD		1,000		1,010,000
Pakistan | 0.5%
Islamic Republic of Pakistan, 8.250%, 04/15/24 (c)	USD		1,230		1,268,438
Paraguay | 0.1%
Republic of Paraguay, 4.625%, 01/25/23	USD		275		279,400

Description	Security Currency	Principal Amount (000)		Value
Romania | 0.5%
Romania Government Bonds:
5.950%, 06/11/21	RON		2,680	$	938,448
4.875%, 01/22/24 (c)	USD		350		372,312
					1,310,760
Russia | 0.3%
Russia Government Bonds - OFZ:
7.600%, 04/14/21	RUB		6,373		182,702
7.000%, 01/25/23	RUB		6,600		181,245
7.050%, 01/19/28	RUB		12,510		329,182
					693,129
Rwanda | 0.2%
Republic of Rwanda, 6.625%, 05/02/23	USD		625		646,750
Senegal | 0.1%
Republic of Senegal, 8.750%, 05/13/21	USD		200		231,016
Serbia | 0.1%
Serbia Treasury Bonds:
10.000%, 10/17/16	RSD		15,900		192,209
10.000%, 04/01/17	RSD		15,000		177,664
					369,873
Slovenia | 0.8%
Republic of Slovenia:
5.500%, 10/26/22	USD		700		766,500
5.850%, 05/10/23	USD		300		336,750
5.250%, 02/18/24 (c)	USD		1,025		1,101,875
					2,205,125
South Africa | 0.7%
Republic of South Africa:
8.000%, 12/21/18	ZAR		14,830		1,417,014
2.750%, 01/31/22	ZAR		5,174		526,681
					1,943,695
Uganda | 0.1%
Uganda Government Bond, 12.875%, 05/19/16	UGX		519,600		201,173
Uganda Treasury Bills:
0.000%, 08/07/14	UGX		100,000		37,996
0.000%, 08/07/14	UGX		50,000		18,996
					258,165

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

Semi-Annual Report   33

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
Uruguay | 0.2%
Republica Orient Uruguay, 5.000%, 09/14/18	UYU		9,867	$	465,968
Uruguay Monetary Regulation Bills:
0.000%, 12/18/14	UYU		2,000		81,785
0.000%, 11/26/15	UYU		1,200		43,555
0.000%, 11/26/15	UYU		2,400		87,002
					678,310
Venezuela | 0.2%
Republic of Venezuela:
7.000%, 12/01/18	USD		175		152,688
7.750%, 10/13/19	USD		200		173,000
9.000%, 05/07/23	USD		175		149,625
8.250%, 10/13/24	USD		150		120,375
					595,688
Zambia | 0.3%
Zambia Treasury Bills:
0.000%, 10/13/14	ZMW		600		91,437
0.000%, 10/13/14	ZMW		635		96,762
0.000%, 10/27/14	ZMW		700		106,121
0.000%, 11/10/14	ZMW		660		99,511
0.000%, 01/12/15	ZMW		635		93,368
0.000%, 01/26/15	ZMW		700		102,530
0.000%, 06/15/15	ZMW		1,200		159,994
					749,723
Total Foreign Government Obligations (Identified cost $31,216,535)					31,888,807
Quasi Government Bonds | 0.7%
Azerbaijan | 0.2%
State Oil Co. of the Azerbaijan Republic, 4.750%, 03/13/23	USD		600		597,000

Description	Security Currency	Principal Amount (000)		Value
Colombia | 0.0%
Empresas Publicas de Medellin ESP, 8.375%, 02/01/21	COP		72,000	$	40,621
Venezuela | 0.5%
Petroleos de Venezuela SA:
4.900%, 10/28/14	USD		1,150		1,147,585
5.250%, 04/12/17	USD		275		232,238
					1,379,823
Total Quasi Government Bonds (Identified cost $1,965,209)					2,017,444

Description	Shares		Value
Short-Term Investment | 21.2%
State Street Institutional Treasury Money Market Fund (Identified cost $58,588,396)		58,588,396	$	58,588,396
Warrant | 0.0%
Iraq | 0.0%
Gulf Keystone Petroleum, Ltd. Expires 04/18/17 (Identified cost $0)		64,000		0
Total Investments | 97.8% (Identified cost $263,237,045) (d), (f)			$	270,008,670
Cash and Other Assets in Excess of Liabilities | 2.2%				6,038,023
Net Assets | 100.0%			$	276,046,693

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

34   Semi-Annual Report

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at June 30, 2014:

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts
AMD		JPM	10/28/14		74,932,200	$	171,000	$	179,460	$	8,460	$	—
AUD		UBS	07/07/14		74,870		70,000		70,573		573		—
AUD		UBS	07/07/14		557,891		523,468		525,874		2,406		—
BRL		BRC	07/02/14		2,759,686		1,252,979		1,249,009		—		3,970
BRL		BRC	08/04/14		939,994		423,335		421,456		—		1,879
BRL		CIT	07/02/14		488,359		217,000		221,027		4,027		—
BRL		CIT	07/02/14		2,682,167		1,166,667		1,213,925		47,258		—
BRL		CIT	09/03/14		486,583		216,000		216,337		337		—
BRL		HSB	07/02/14		2,681,583		1,166,667		1,213,661		46,994		—
BRL		JPM	07/02/14		2,682,167		1,166,667		1,213,925		47,258		—
BRL		SCB	07/02/14		904,800		400,000		409,504		9,504		—
BRL		SCB	07/02/14		1,340,122		608,455		606,527		—		1,928
BRL		SCB	07/07/14		1,729,420		770,000		781,603		11,603		—
BRL		SCB	08/13/14		1,729,420		766,519		773,444		6,925		—
CAD		UBS	07/07/14		152,922		140,000		143,295		3,295		—
CAD		UBS	07/07/14		199,233		185,419		186,691		1,272		—
CLP		CIT	07/17/14		286,192,000		517,713		516,701		—		1,012
CLP		CIT	07/28/14		191,632,100		346,000		345,582		—		418
CLP		HSB	07/07/14		23,402,700		42,512		42,297		—		215
CLP		HSB	07/07/14		80,794,000		145,000		146,021		1,021		—
CLP		JPM	07/07/14		279,016,835		507,580		504,273		—		3,307
CLP		SCB	07/07/14		30,144,000		54,782		54,480		—		302
CLP		SCB	07/07/14		195,562,500		350,000		353,445		3,445		—
CLP		UBS	07/09/14		152,821,640		268,000		276,140		8,140		—
CLP		UBS	07/09/14		193,418,550		351,000		349,497		—		1,503
CNH		HSB	08/11/14		2,711,849		434,000		435,684		1,684		—
CNH		HSB	09/03/14		2,631,739		419,000		422,202		3,202		—
CNH		JPM	07/07/14		5,541,585		890,000		892,539		2,539		—
CNH		JPM	08/13/14		2,748,080		439,461		441,449		1,988		—
CNH		UBS	07/07/14		1,556,750		250,121		250,734		613		—
CNH		UBS	07/07/14		5,656,525		908,664		911,051		2,387		—
CNH		UBS	08/13/14		1,556,750		249,052		250,075		1,023		—
CNY		BRC	07/10/14		2,228,580		360,000		358,885		—		1,115
CNY		BRC	07/10/14		3,497,068		565,000		563,160		—		1,840
COP		BRC	07/24/14		281,572,894		149,217		149,850		633		—
COP		HSB	07/28/14		293,182,500		155,000		156,005		1,005		—
COP		SCB	07/24/14		588,148,539		311,566		313,006		1,440		—
COP		SCB	07/28/14		293,105,000		155,000		155,964		964		—
COP		SCB	09/16/14		1,722,079,250		905,000		912,521		7,521		—
COP		UBS	07/09/14		1,058,469,100		547,862		563,619		15,757		—
COP		UBS	07/24/14		281,572,894		149,217		149,850		633		—
COP		UBS	08/22/14		659,562,200		341,000		350,353		9,353		—
CZK		JPM	07/07/14		7,139,470		354,011		356,216		2,205		—

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

Semi-Annual Report  35

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (continued):

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts (continued)
CZK		JPM	07/07/14		17,733,015	$	876,930	$	884,768	$	7,838	$	—
CZK		JPM	08/04/14		17,728,593		876,711		884,857		8,146		—
CZK		JPM	09/19/14		7,510,888		370,679		375,035		4,356		—
CZK		SCB	07/07/14		33,223		1,650		1,658		8		—
CZK		UBS	07/07/14		7,139,158		353,044		356,200		3,156		—
EUR		BNP	07/24/14		129,850		177,000		177,819		819		—
EUR		BRC	07/09/14		32,000		43,535		43,819		284		—
EUR		CIT	07/09/14		156,000		212,604		213,616		1,012		—
EUR		HSB	08/19/14		79,000		107,476		108,195		719		—
EUR		JPM	07/07/14		220,000		297,847		301,252		3,405		—
EUR		JPM	07/07/14		300,000		406,395		410,798		4,403		—
EUR		JPM	07/09/14		127,000		173,082		173,906		824		—
EUR		JPM	08/05/14		159,000		215,796		217,747		1,951		—
EUR		JPM	08/05/14		224,000		305,250		306,762		1,512		—
EUR		JPM	08/05/14		273,156		372,502		374,080		1,578		—
EUR		JPM	08/08/14		150,150		205,000		205,629		629		—
EUR		SCB	07/07/14		235,000		319,248		321,792		2,544		—
EUR		SCB	07/07/14		265,427		360,981		363,456		2,475		—
EUR		SCB	08/08/14		150,161		205,000		205,644		644		—
EUR		UBS	08/05/14		110,000		149,669		150,642		973		—
EUR		UBS	08/08/14		150,161		205,000		205,644		644		—
HUF		BNP	07/14/14		172,862,905		781,963		763,920		—		18,043
HUF		BRC	07/09/14		36,535,200		164,334		161,489		—		2,845
HUF		JPM	07/09/14		18,267,000		82,165		80,742		—		1,423
HUF		JPM	07/14/14		15,480,000		69,174		68,409		—		765
HUF		JPM	07/14/14		99,550,620		442,084		439,936		—		2,148
HUF		SCB	07/09/14		80,937,000		360,000		357,749		—		2,251
IDR		BRC	07/02/14		1,670,200,000		140,000		140,886		886		—
IDR		BRC	07/23/14		1,855,350,000		155,000		155,930		930		—
IDR		BRC	08/08/14		1,670,200,000		138,434		139,964		1,530		—
IDR		CIT	07/07/14		1,520,000,000		129,252		128,104		—		1,148
IDR		CIT	07/07/14		2,033,250,000		169,226		171,360		2,134		—
IDR		HSB	07/02/14		1,667,400,000		140,000		140,650		650		—
IDR		HSB	07/18/14		3,505,365,000		302,109		294,861		—		7,248
IDR		JPM	07/02/14		1,668,100,000		140,000		140,709		709		—
IDR		JPM	07/07/14		3,493,105,000		301,000		294,395		—		6,605
IDR		JPM	09/11/14		7,021,000,000		590,000		584,431		—		5,569
IDR		SCB	07/07/14		2,743,025,000		233,052		231,179		—		1,873
IDR		SCB	07/07/14		3,162,615,000		267,000		266,541		—		459
IDR		SCB	07/23/14		1,855,350,000		155,000		155,930		930		—
IDR		SCB	12/04/14		5,103,000,000		420,000		418,020		—		1,980
IDR		UBS	07/02/14		2,388,000,000		200,000		201,434		1,434		—
IDR		UBS	07/02/14		3,335,500,000		278,678		281,358		2,680		—

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

36   Semi-Annual Report

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (continued):

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts (continued)
IDR		UBS	08/08/14		5,723,500,000	$	473,682	$	479,633	$	5,951	$	—
ILS		JPM	07/14/14		803,957		232,475		234,264		1,789		—
INR		BRC	07/07/14		15,170,200		253,895		251,931		—		1,964
INR		BRC	07/09/14		18,730,200		314,741		310,905		—		3,836
INR		BRC	07/28/14		25,558,260		434,000		422,357		—		11,643
INR		BRC	08/08/14		18,730,200		309,590		308,727		—		863
INR		BRC	08/13/14		15,170,200		250,250		249,757		—		493
INR		JPM	07/07/14		40,776,250		682,619		677,168		—		5,451
INR		JPM	07/09/14		46,026,070		773,677		763,992		—		9,685
INR		JPM	07/23/14		27,501,210		454,190		454,998		808		—
INR		JPM	08/08/14		46,026,070		761,391		758,642		—		2,749
INR		JPM	08/13/14		40,776,250		672,542		671,327		—		1,215
INR		JPM	08/25/14		60,361,810		991,000		991,010		10		—
INR		SCB	07/07/14		19,097,800		319,736		317,156		—		2,580
INR		SCB	07/09/14		19,918,800		336,466		330,634		—		5,832
INR		SCB	07/09/14		22,917,800		385,335		380,415		—		4,920
INR		SCB	07/23/14		15,499,812		255,963		256,439		476		—
INR		SCB	08/08/14		21,391,400		353,811		352,592		—		1,219
INR		SCB	08/13/14		16,722,600		275,905		275,316		—		589
INR		UBS	07/07/14		7,257,600		121,445		120,526		—		919
INR		UBS	07/07/14		10,749,600		180,000		178,518		—		1,482
INR		UBS	07/23/14		16,394,475		270,670		271,241		571		—
INR		UBS	08/13/14		18,007,200		297,100		296,465		—		635
KRW		BRC	07/23/14		772,478,600		751,000		762,870		11,870		—
KRW		CIT	08/27/14		483,912,000		470,000		477,230		7,230		—
KRW		CIT	09/24/14		924,892,760		902,000		911,042		9,042		—
KRW		JPM	07/07/14		469,700,616		461,124		464,136		3,012		—
KRW		SCB	07/07/14		367,417,553		360,673		363,065		2,392		—
KRW		UBS	07/07/14		367,417,553		360,730		363,065		2,335		—
KZT		CIT	09/12/14		51,761,000		271,000		279,281		8,281		—
KZT		CIT	11/14/14		37,436,000		196,000		200,016		4,016		—
KZT		CIT	02/13/15		22,310,000		115,000		117,773		2,773		—
KZT		HSB	09/11/14		51,761,000		271,000		279,325		8,325		—
KZT		HSB	09/11/14		58,896,780		318,000		317,833		—		167
MXN		BRC	07/09/14		1,420,425		109,396		109,433		37		—
MXN		CIT	07/30/14		25,817,315		1,994,000		1,986,107		—		7,893
MXN		HSB	07/07/14		6,397,077		491,327		492,915		1,588		—
MXN		HSB	07/07/14		8,066,232		624,805		621,529		—		3,276
MXN		JPM	07/07/14		24,008		1,838		1,850		12		—
MXN		JPM	07/16/14		4,788,637		368,000		368,747		747		—
MXN		SCB	07/07/14		6,637,780		514,126		511,462		—		2,664
MYR		BRC	07/18/14		451,080		140,000		140,316		316		—
MYR		CIT	08/27/14		1,524,479		473,000		472,700		—		300

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

Semi-Annual Report   37

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (continued):

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts (continued)
MYR		HSB	07/07/14		128,140	$	40,000	$	39,892	$	—	$	108
MYR		HSB	07/18/14		1,127,875		350,000		350,846		846		—
MYR		HSB	07/21/14		1,948,012		602,000		605,832		3,832		—
MYR		HSB	08/13/14		128,140		39,701		39,780		79		—
MYR		JPM	07/07/14		1,112,034		343,448		346,194		2,746		—
MYR		JPM	07/14/14		3,380,848		1,048,000		1,051,978		3,978		—
MYR		JPM	07/18/14		1,963,590		610,000		610,810		810		—
MYR		JPM	08/13/14		1,112,034		344,709		345,225		516		—
MYR		SCB	07/07/14		214,148		66,050		66,668		618		—
MYR		SCB	07/07/14		1,512,138		467,358		470,753		3,395		—
MYR		SCB	07/09/14		107,034		33,025		33,317		292		—
MYR		SCB	07/09/14		214,148		66,398		66,658		260		—
MYR		SCB	07/18/14		418,860		130,000		130,294		294		—
MYR		SCB	07/18/14		2,323,440		720,000		722,747		2,747		—
MYR		SCB	08/08/14		321,182		99,833		99,752		—		81
MYR		SCB	08/13/14		1,512,138		468,706		469,436		730		—
NGN		CIT	07/17/14		77,361,750		471,000		473,437		2,437		—
NGN		CIT	08/07/14		79,767,180		486,000		486,196		196		—
PEN		CIT	07/09/14		615,741		218,000		219,859		1,859		—
PEN		HSB	07/07/14		958,585		343,616		342,350		—		1,266
PEN		JPM	07/07/14		958,585		343,210		342,350		—		860
PEN		JPM	07/25/14		1,867,653		665,000		665,718		718		—
PEN		JPM	09/16/14		1,165,940		413,000		413,295		295		—
PEN		UBS	08/08/14		1,138,464		402,000		405,202		3,202		—
PHP		BRC	07/03/14		6,525,400		148,406		149,488		1,082		—
PHP		BRC	07/07/14		9,077,400		206,822		207,935		1,113		—
PHP		BRC	07/14/14		10,656,765		243,000		244,079		1,079		—
PHP		BRC	07/17/14		6,140,400		140,000		140,629		629		—
PHP		BRC	08/13/14		9,077,400		206,939		207,786		847		—
PHP		CIT	07/07/14		9,075,555		206,874		207,892		1,018		—
PHP		CIT	08/13/14		9,075,555		206,827		207,744		917		—
PHP		JPM	07/03/14		19,582,100		445,706		448,599		2,893		—
PHP		JPM	07/14/14		12,590,690		287,000		288,373		1,373		—
PHP		JPM	07/17/14		11,425,090		260,371		261,661		1,290		—
PHP		SCB	07/07/14		7,459,600		170,000		170,876		876		—
PHP		SCB	07/07/14		9,077,400		206,727		207,934		1,207		—
PHP		SCB	07/17/14		5,701,800		130,000		130,585		585		—
PHP		SCB	07/17/14		7,886,659		179,815		180,623		808		—
PHP		SCB	08/13/14		9,975,250		227,330		228,338		1,008		—
PHP		SCB	09/16/14		51,453,250		1,175,000		1,177,066		2,066		—
PHP		UBS	07/07/14		12,179,750		277,317		279,000		1,683		—
PHP		UBS	07/17/14		7,890,255		179,814		180,705		891		—
PHP		UBS	07/17/14		15,352,750		350,000		351,614		1,614		—

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

38  Semi-Annual Report

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (continued):

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts (continued)
PHP		UBS	08/13/14		12,179,750	$	277,475	$	278,801	$	1,326	$	—
PLN		BNP	07/21/14		1,785,704		582,000		587,279		5,279		—
PLN		BRC	07/09/14		618,257		203,000		203,489		489		—
PLN		JPM	07/07/14		550,000		179,504		181,047		1,543		—
PLN		JPM	07/09/14		467,535		152,500		153,881		1,381		—
PLN		JPM	07/09/14		618,216		203,000		203,476		476		—
PLN		JPM	08/11/14		1,599,555		524,500		525,356		856		—
PLN		JPM	09/10/14		1,602,400		524,500		525,343		843		—
PLN		SCB	07/09/14		618,237		203,000		203,482		482		—
PLN		SCB	07/09/14		934,901		305,000		307,708		2,708		—
PLN		UBS	07/07/14		227,794		75,000		74,984		—		16
PLN		UBS	07/07/14		550,000		179,504		181,047		1,543		—
PLN		UBS	07/07/14		568,517		185,487		187,143		1,656		—
PLN		UBS	07/09/14		467,702		152,500		153,937		1,437		—
PLN		UBS	07/09/14		1,766,118		588,373		581,289		—		7,084
RON		HSB	07/01/14		427,581		132,809		133,531		722		—
RON		JPM	07/21/14		1,365,100		420,820		425,923		5,103		—
RON		JPM	09/10/14		2,799,000		859,433		871,502		12,069		—
RON		UBS	07/07/14		51,568		15,917		16,101		184		—
RON		UBS	07/07/14		2,003,288		620,194		625,466		5,272		—
RSD		CIT	07/09/14		43,230,500		508,206		510,468		2,262		—
RSD		CIT	07/09/14		86,801,400		1,020,893		1,024,955		4,062		—
RSD		CIT	08/08/14		27,302,150		322,206		320,666		—		1,540
RSD		CIT	08/19/14		19,444,576		230,892		227,946		—		2,946
RSD		CIT	11/19/14		19,756,656		234,598		227,459		—		7,139
RSD		HSB	08/08/14		12,213,600		143,850		143,450		—		400
RUB		BRC	07/30/14		4,836,378		142,000		141,483		—		517
RUB		BRC	07/30/14		14,465,895		426,000		423,183		—		2,817
RUB		HSB	07/07/14		6,715,536		194,532		197,445		2,913		—
RUB		HSB	07/09/14		5,352,150		155,000		157,291		2,291		—
RUB		HSB	07/09/14		5,357,730		155,000		157,455		2,455		—
RUB		HSB	08/13/14		7,717,074		226,354		224,994		—		1,360
RUB		JPM	07/07/14		6,717,190		194,532		197,493		2,961		—
RUB		JPM	07/09/14		4,467,318		129,225		131,287		2,062		—
RUB		JPM	07/09/14		4,698,000		135,000		138,066		3,066		—
RUB		JPM	07/09/14		4,712,850		135,000		138,503		3,503		—
RUB		JPM	07/09/14		5,366,875		155,000		157,723		2,723		—
RUB		SCB	07/07/14		6,718,163		194,532		197,522		2,990		—
RUB		SCB	07/09/14		4,467,318		129,207		131,287		2,080		—
RUB		SCB	07/09/14		5,352,925		155,000		157,313		2,313		—
RUB		UBS	07/07/14		6,719,135		194,532		197,550		3,018		—
THB		HSB	07/07/14		14,929,300		460,000		459,915		—		85
THB		HSB	07/07/14		23,405,950		721,515		721,048		—		467

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

Semi-Annual Report   39

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (continued):

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts (continued)
THB		JPM	07/07/14		395,916	$	12,205	$	12,197	$	—	$	8
THB		JPM	07/07/14		5,813,844		179,578		179,102		—		476
THB		JPM	07/07/14		5,841,900		180,000		179,967		—		33
THB		JPM	07/09/14		9,358,460		288,308		288,272		—		36
THB		SCB	07/07/14		5,815,640		179,578		179,158		—		420
THB		SCB	07/07/14		8,166,250		250,000		251,571		1,571		—
THB		SCB	07/09/14		10,660,000		328,506		328,364		—		142
THB		SCB	07/23/14		19,159,581		589,000		589,798		798		—
THB		SCB	08/13/14		8,126,850		250,095		249,932		—		163
THB		UBS	07/07/14		5,817,436		179,578		179,213		—		365
THB		UBS	08/13/14		5,817,436		178,888		178,909		21		—
TRY		BRC	08/13/14		660,477		307,341		309,002		1,661		—
TRY		HSB	07/09/14		220,317		103,333		103,818		485		—
TRY		HSB	07/09/14		322,410		150,000		151,926		1,926		—
TRY		JPM	07/07/14		330,265		155,000		155,693		693		—
TRY		JPM	07/09/14		220,720		103,334		104,008		674		—
TRY		JPM	07/09/14		661,881		310,000		311,892		1,892		—
TRY		JPM	07/09/14		773,460		360,000		364,470		4,470		—
TRY		JPM	07/21/14		2,055,892		952,000		966,355		14,355		—
TRY		JPM	08/04/14		317,746		149,831		148,923		—		908
TRY		JPM	02/17/15		885,649		401,000		399,061		—		1,939
TRY		SCB	07/07/14		330,212		155,000		155,668		668		—
TRY		SCB	07/09/14		220,720		103,334		104,008		674		—
TRY		SCB	07/09/14		661,974		310,000		311,936		1,936		—
TRY		SCB	07/09/14		666,206		310,000		313,930		3,930		—
TRY		UBS	07/09/14		214,990		100,000		101,308		1,308		—
TWD		HSB	07/14/14		12,025,990		401,000		402,819		1,819		—
TWD		HSB	07/14/14		13,527,745		451,000		453,122		2,122		—
TWD		JPM	07/07/14		6,000,000		200,000		200,961		961		—
TWD		JPM	07/09/14		12,444,625		415,791		416,822		1,031		—
TWD		SCB	07/09/14		12,449,625		415,958		416,989		1,031		—
TWD		UBS	07/07/14		6,000,000		200,000		200,961		961		—
TWD		UBS	07/09/14		12,005,000		401,186		402,097		911		—
UAH		CIT	08/12/14		702,100		59,000		58,504		—		496
UAH		CSF	07/30/14		722,925		59,500		60,623		1,123		—
UAH		HSB	07/18/14		717,570		59,500		60,529		1,029		—
UAH		JPM	07/10/14		1,420,130		118,000		120,265		2,265		—
UAH		JPM	08/19/14		716,850		59,000		59,531		531		—
UAH		JPM	08/19/14		870,480		72,000		72,289		289		—
UGX		BRC	08/11/14		332,416,000		128,000		126,838		—		1,162
UGX		CIT	07/02/14		735,552,000		288,000		282,905		—		5,095
UGX		CIT	07/11/14		1,164,882,000		447,000		447,293		293		—
UGX		CIT	07/18/14		735,552,000		281,821		282,077		256		—

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

40   Semi-Annual Report

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (continued):

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts (concluded)
UGX		CIT	08/11/14		590,086,000	$	226,000	$	225,155	$	—	$	845
UYU		HSB	07/16/14		6,969,000		300,621		303,978		3,357		—
UYU		HSB	09/29/14		7,834,645		335,000		334,714		—		286
UYU		JPM	07/11/14		3,016,860		130,163		131,763		1,600		—
UYU		JPM	07/23/14		6,639,129		283,693		289,060		5,367		—
ZAR		HSB	07/09/14		1,650,773		155,000		155,041		41		—
ZAR		SCB	07/01/14		8,060,001		756,098		757,875		1,777		—
ZAR		SCB	07/09/14		1,647,340		154,601		154,718		117		—
ZAR		UBS	07/09/14		6,512,238		610,000		611,629		1,629		—
ZMW		CIT	11/24/14		4,171,365		583,000		618,508		35,508		—
ZMW		JPM	08/25/14		716,505		111,000		110,889		—		111
Total Forward Currency Purchase Contracts						$	90,951,739	$	91,395,173	$	622,826	$	179,392
Forward Currency Sale Contracts
AUD		UBS	07/07/14		632,760	$	589,242	$	596,447	$	—	$	7,205
AUD		UBS	08/13/14		557,891		522,096		524,490		—		2,394
BRL		BRC	07/02/14		939,994		427,270		425,433		1,837		—
BRL		BRC	07/02/14		1,819,692		807,729		823,576		—		15,847
BRL		CIT	07/02/14		488,359		220,628		221,027		—		399
BRL		CIT	07/02/14		2,682,167		1,217,783		1,213,925		3,858		—
BRL		HSB	07/02/14		1,006,051		456,777		455,330		1,447		—
BRL		HSB	07/02/14		1,675,532		744,400		758,331		—		13,931
BRL		JPM	07/02/14		411,590		186,874		186,282		592		—
BRL		JPM	07/02/14		2,270,577		1,005,414		1,027,643		—		22,229
BRL		SCB	07/02/14		2,244,922		993,812		1,016,032		—		22,220
BRL		SCB	07/07/14		1,729,420		774,483		781,603		—		7,120
CAD		BRC	07/09/14		645,584		591,243		604,915		—		13,672
CAD		JPM	07/09/14		645,584		591,178		604,915		—		13,737
CAD		SCB	07/09/14		645,584		591,129		604,915		—		13,786
CAD		UBS	07/07/14		65,404		60,000		61,287		—		1,287
CAD		UBS	07/07/14		286,751		262,148		268,700		—		6,552
CAD		UBS	08/13/14		199,233		185,250		186,523		—		1,273
CLP		HSB	07/07/14		104,196,700		188,216		188,317		—		101
CLP		HSB	07/23/14		172,028,128		306,100		310,391		—		4,291
CLP		HSB	08/13/14		23,402,700		42,327		42,133		194		—
CLP		JPM	07/07/14		94,052,500		170,000		169,983		17		—
CLP		JPM	07/07/14		184,964,335		333,840		334,290		—		450
CLP		JPM	08/13/14		279,016,835		505,511		502,326		3,185		—
CLP		SCB	07/07/14		94,069,500		170,000		170,014		—		14
CLP		SCB	07/07/14		131,637,000		237,805		237,911		—		106
CLP		SCB	07/23/14		99,663,000		177,431		179,822		—		2,391
CLP		SCB	08/13/14		30,144,000		54,535		54,270		265		—
CLP		UBS	07/09/14		232,102,200		417,000		419,396		—		2,396

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

Semi-Annual Report   41

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (continued):

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Sale Contracts (continued)
CLP		UBS	07/23/14		82,500,000	$	147,093	$	148,855	$	—	$	1,762
CNH		JPM	07/07/14		250,480		40,000		40,343		—		343
CNH		JPM	07/07/14		2,543,025		406,078		409,584		—		3,506
CNH		JPM	07/07/14		2,748,080		440,538		442,611		—		2,073
CNH		UBS	07/07/14		1,556,750		249,659		250,733		—		1,074
CNH		UBS	07/07/14		5,656,525		903,439		911,051		—		7,612
CNY		HSB	07/10/14		449,561		73,034		72,396		638		—
COP		CIT	07/09/14		508,007,500		269,500		270,506		—		1,006
COP		UBS	07/09/14		508,277,000		269,500		270,650		—		1,150
CZK		JPM	07/07/14		6,040,540		297,847		301,386		—		3,539
CZK		SCB	07/07/14		1,823,310		90,000		90,972		—		972
CZK		SCB	07/07/14		6,448,001		319,248		321,716		—		2,468
EUR		BNP	07/14/14		568,000		781,963		777,798		4,165		—
EUR		BNP	07/24/14		958,687		1,323,946		1,312,838		11,108		—
EUR		BRC	07/09/14		120,000		164,334		164,320		14		—
EUR		BRC	08/05/14		169,000		230,512		231,441		—		929
EUR		CIT	07/09/14		373,449		508,205		511,377		—		3,172
EUR		CIT	07/09/14		747,000		1,020,892		1,022,894		—		2,002
EUR		CIT	08/08/14		234,500		322,207		321,146		1,061		—
EUR		CIT	08/19/14		166,000		230,892		227,345		3,547		—
EUR		CIT	11/19/14		166,000		234,598		227,428		7,170		—
EUR		HSB	08/08/14		105,108		143,850		143,945		—		95
EUR		JPM	07/07/14		260,000		354,010		356,024		—		2,014
EUR		JPM	07/07/14		645,500		876,930		883,900		—		6,970
EUR		JPM	07/09/14		60,000		82,164		82,160		4		—
EUR		JPM	07/09/14		228,884		310,000		313,419		—		3,419
EUR		JPM	07/09/14		611,188		828,165		836,921		—		8,756
EUR		JPM	07/14/14		326,000		442,084		446,412		—		4,328
EUR		JPM	08/04/14		645,500		876,711		883,993		—		7,282
EUR		JPM	08/05/14		245,188		334,049		335,778		—		1,729
EUR		JPM	08/05/14		642,500		876,911		879,888		—		2,977
EUR		JPM	09/19/14		274,000		370,679		375,299		—		4,620
EUR		SCB	07/07/14		113,642		155,000		155,613		—		613
EUR		SCB	07/07/14		273,142		370,000		374,020		—		4,020
EUR		SCB	07/09/14		228,916		310,000		313,463		—		3,463
EUR		SCB	07/09/14		611,188		827,985		836,921		—		8,936
EUR		SCB	08/13/14		265,427		361,030		363,507		—		2,477
EUR		UBS	07/07/14		113,643		155,000		155,614		—		614
EUR		UBS	07/07/14		260,000		353,044		356,024		—		2,980
EUR		UBS	07/09/14		430,000		588,372		588,814		—		442
EUR		UBS	07/09/14		611,188		828,043		836,921		—		8,878
HUF		JPM	07/09/14		135,934,516		607,827		600,843		6,984		—
IDR		BRC	07/02/14		1,670,200,000		138,952		140,886		—		1,934

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

42   Semi-Annual Report

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (continued):

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Sale Contracts (continued)
IDR		CIT	07/07/14		3,553,250,000	$	299,726	$	299,464	$	262	$	—
IDR		CIT	08/13/14		2,033,250,000		168,385		170,217		—		1,832
IDR		HSB	07/02/14		1,667,400,000		139,310		140,650		—		1,340
IDR		JPM	07/02/14		1,668,100,000		139,369		140,709		—		1,340
IDR		SCB	07/07/14		355,800,000		30,000		29,986		14		—
IDR		SCB	07/07/14		2,387,225,000		201,301		201,193		108		—
IDR		UBS	07/02/14		5,723,500,000		475,453		482,792		—		7,339
INR		BRC	07/07/14		15,170,200		251,579		251,931		—		352
INR		BRC	07/09/14		18,730,200		310,926		310,905		21		—
INR		JPM	07/07/14		40,776,250		676,223		677,168		—		945
INR		JPM	07/09/14		46,026,070		764,553		763,992		561		—
INR		SCB	07/07/14		2,375,200		40,000		39,445		555		—
INR		SCB	07/07/14		16,722,600		277,369		277,711		—		342
INR		SCB	07/09/14		21,391,400		355,339		355,078		261		—
INR		SCB	07/09/14		21,445,200		360,000		355,971		4,029		—
INR		UBS	07/07/14		18,007,200		298,577		299,044		—		467
JPY		CIT	09/12/14		94,129,055		921,000		929,644		—		8,644
JPY		SCB	07/23/14		124,407,371		1,227,000		1,228,240		—		1,240
KRW		JPM	07/07/14		183,232,616		179,578		181,062		—		1,484
KRW		JPM	07/07/14		286,468,000		280,000		283,074		—		3,074
KRW		JPM	08/13/14		469,700,616		460,355		463,479		—		3,124
KRW		SCB	07/07/14		183,259,553		179,578		181,088		—		1,510
KRW		SCB	07/07/14		184,158,000		180,000		181,976		—		1,976
KRW		SCB	08/13/14		367,417,553		360,072		362,551		—		2,479
KRW		UBS	07/07/14		183,259,553		179,578		181,088		—		1,510
KRW		UBS	07/07/14		184,158,000		180,000		181,976		—		1,976
KRW		UBS	08/13/14		367,417,553		360,146		362,551		—		2,405
KZT		CIT	09/11/14		31,949,000		172,000		172,411		—		411
KZT		HSB	09/11/14		31,949,000		172,000		172,411		—		411
MXN		BRC	08/08/14		1,420,425		109,168		109,206		—		38
MXN		HSB	08/13/14		6,397,077		490,182		491,658		—		1,476
MXN		JPM	07/07/14		2,019,774		155,000		155,630		—		630
MXN		JPM	07/07/14		10,716,170		820,000		825,715		—		5,715
MXN		SCB	07/07/14		2,005,995		155,000		154,568		432		—
MXN		SCB	07/07/14		2,019,573		155,000		155,615		—		615
MXN		SCB	07/07/14		2,357,730		180,000		181,671		—		1,671
MXN		UBS	07/07/14		2,005,855		155,000		154,558		442		—
MXN		UBS	07/09/14		1,420,425		109,074		109,433		—		359
MYR		HSB	07/07/14		128,140		39,776		39,892		—		116
MYR		JPM	07/07/14		1,112,034		345,352		346,194		—		842
MYR		SCB	07/07/14		214,148		66,402		66,667		—		265
MYR		SCB	07/07/14		1,512,138		469,579		470,753		—		1,174
MYR		SCB	07/09/14		321,182		99,964		99,975		—		11

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

Semi-Annual Report   43

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (continued):

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Sale Contracts (continued)
MYR		UBS	07/18/14		657,500	$	204,342	$	204,527	$	—	$	185
PEN		CIT	08/08/14		333,438		118,408		118,677		—		269
PEN		HSB	07/07/14		951,150		340,000		339,695		305		—
PEN		HSB	08/08/14		807,870		286,886		287,537		—		651
PEN		JPM	08/08/14		1,141,476		405,382		406,273		—		891
PEN		SCB	07/07/14		951,320		340,000		339,755		245		—
PEN		SCB	08/08/14		1,983,696		704,062		706,036		—		1,974
PHP		BRC	07/03/14		6,525,400		148,524		149,488		—		964
PHP		BRC	07/07/14		9,077,400		207,010		207,934		—		924
PHP		CIT	07/07/14		9,075,555		206,874		207,892		—		1,018
PHP		JPM	07/03/14		19,582,100		445,554		448,599		—		3,045
PHP		SCB	07/07/14		6,561,750		150,000		150,309		—		309
PHP		SCB	07/07/14		9,975,250		227,434		228,501		—		1,067
PHP		UBS	07/07/14		12,179,750		277,569		278,999		—		1,430
PLN		JPM	08/11/14		1,052,657		343,000		345,734		—		2,734
PLN		UBS	07/07/14		1,896,310		625,123		624,221		902		—
RON		HSB	08/08/14		427,581		132,571		133,299		—		728
RON		JPM	07/07/14		737,286		227,312		230,195		—		2,883
RON		JPM	07/07/14		1,317,570		406,395		411,371		—		4,976
RSD		BRC	07/09/14		3,708,160		43,534		43,786		—		252
RSD		CIT	07/09/14		18,088,200		212,605		213,587		—		982
RSD		HSB	08/19/14		9,215,350		107,475		108,030		—		555
RSD		JPM	07/09/14		14,716,760		173,082		173,776		—		694
RUB		HSB	07/07/14		7,717,074		228,248		226,891		1,357		—
RUB		JPM	07/07/14		6,264,000		180,000		184,169		—		4,169
RUB		JPM	07/07/14		6,618,650		190,000		194,596		—		4,596
RUB		JPM	07/09/14		39,784,699		1,152,044		1,169,205		—		17,161
RUB		UBS	07/07/14		6,270,300		180,000		184,354		—		4,354
THB		HSB	07/07/14		38,335,250		1,173,300		1,180,963		—		7,663
THB		HSB	08/13/14		23,405,950		720,205		719,824		381		—
THB		JPM	07/07/14		5,855,760		180,000		180,394		—		394
THB		JPM	07/07/14		6,195,900		189,575		190,872		—		1,297
THB		JPM	07/09/14		9,358,460		288,307		288,271		36		—
THB		JPM	08/08/14		9,358,460		288,015		287,874		141		—
THB		JPM	08/13/14		395,916		12,183		12,176		7		—
THB		SCB	07/07/14		5,855,040		180,000		180,372		—		372
THB		SCB	07/07/14		8,126,850		250,442		250,357		85		—
THB		SCB	07/09/14		10,660,000		328,394		328,364		30		—
THB		SCB	08/08/14		10,660,000		328,101		327,911		190		—
THB		UBS	07/07/14		5,817,436		179,163		179,213		—		50
TRY		BRC	07/07/14		660,477		309,676		311,361		—		1,685
TRY		BRC	07/09/14		664,795		310,000		313,265		—		3,265
TWD		JPM	07/07/14		6,000,000		200,000		200,961		—		961

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

44   Semi-Annual Report

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (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)
TWD		JPM	07/09/14		6,000,000	$	200,000	$	200,965	$	—	$	965
TWD		JPM	07/09/14		6,444,625		215,000		215,857		—		857
TWD		JPM	08/13/14		12,444,625		416,180		416,969		—		789
TWD		SCB	07/09/14		6,005,000		200,000		201,132		—		1,132
TWD		SCB	07/09/14		6,444,625		215,000		215,857		—		857
TWD		SCB	08/13/14		12,449,625		416,306		417,137		—		831
TWD		UBS	07/07/14		6,000,000		200,000		200,961		—		961
TWD		UBS	07/09/14		6,000,000		200,003		200,965		—		962
TWD		UBS	07/09/14		6,005,000		200,000		201,132		—		1,132
TWD		UBS	08/13/14		12,005,000		401,522		402,240		—		718
UGX		CIT	07/02/14		735,552,000		282,905		282,905		—		—
ZAR		BRC	07/07/14		2,810,861		266,044		264,084		1,960		—
ZAR		BRC	07/07/14		2,816,071		262,693		264,573		—		1,880
ZAR		SCB	07/09/14		6,895,158		647,381		647,593		—		212
ZAR		SCB	07/09/14		8,060,001		755,106		756,995		—		1,889
ZMW		CIT	07/14/14		1,269,390		204,000		200,102		3,898		—
Total Forward Currency Sale Contracts						$	62,616,361	$	62,956,405		62,308		402,352
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts										$	685,134	$	581,744

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

Semi-Annual Report   45

Lazard Emerging Markets Multi Asset Portfolio (concluded)

Credit Default Swap Agreements open at June 30, 2014:

Referenced  Obligation	Counterparty	Notional Amount	Expiration Date	Receive (Pay) Rate			Value			Upfront Premiums Paid (Received)			Unrealized Appreciation		Unrealized Depreciation
Markit CDS EM20 Series 9PA	JPM	400,000	06/20/19		(5.00	%)	$	(48,360	)	$	(39,200	)	$	—	$	9,160
Markit CDS EM20 Series 9PA	JPM	15,000	06/20/19		(5.00	%)		(1,791	)		(1,556	)		—		235
Markit CDS EM20 Series 9PA	BRC	1,000,000	06/20/19		(5.00	%)		(119,371	)		(101,500	)		—		17,871
Markit CDS EM20 Series 9PA	JPM	1,500,000	06/20/19		(5.00	%)		(179,056	)		(159,000	)		—		20,056
Markit CDS EM20 Series 9PA	BRC	1,000,000	06/20/19		(5.00	%)		(119,371	)		(116,000	)		—		3,371
Markit CDS EM20 Series 9PA	BRC	420,000	06/20/19		(5.00	%)		(50,777	)		(41,790	)		—		8,987
Markit CDS EM20 Series 9PA	BRC	1,270,000	06/20/19		(5.00	%)		(151,601	)		(127,254	)		—		24,347
Markit CDS EM20 Series 9PA	BRC	175,000	06/20/19		(5.00	%)		(20,890	)		(17,325	)		—		3,565
Markit CDS EM20 Series 9PA	JPM	720,000	06/20/19		(1.00	%)		(85,947	)		(76,464	)		—		9,483
People’s Republic of China	BRC	390,000	06/20/19		(1.00	%)		(5,164	)		(387	)		—		4,777
People’s Republic of China	JPM	4,500,000	06/20/19		(1.00	%)		(59,590	)		(2,512	)		—		57,078
People’s Republic of China	JPM	70,000	06/20/19		(1.00	%)		(927	)		(275	)		—		652
People’s Republic of China	JPM	180,000	06/20/19		(1.00	%)		(2,384	)		(884	)		—		1,500
Republic of Brazil	JPM	1,010,000	09/20/19		(1.00	%)		21,956			19,760			2,196		—
Republic of Brazil	BRC	4,600,000	09/20/19		(1.00	%)		99,997			89,995			10,002		—
Republic of Turkey	JPM	700,000	06/20/19		(1.00	%)		22,981			36,883			—		13,902
Republic of Turkey	JPM	1,327,000	06/20/19		(1.00	%)		43,564			89,631			—		46,067
Republic of Turkey	JPM	990,000	06/20/19		(1.00	%)		32,502			52,716			—		20,214
Republic of Turkey	JPM	1,600,000	06/20/19		(1.00	%)		52,527			80,896			—		28,369
Republic of Turkey	BRC	520,000	06/20/19		(1.00	%)		17,071			26,212			—		9,141
Total Credit Default Swap Agreements							$	(554,631	)	$	(288,054	)	$	12,198	$	278,775

Interest Rate Swap Agreements open at June 30, 2014:

Currency	Counterparty	Notional Amount	Expiration Date	Receive (Pay) Rate			Variable Rate		Unrealized Appreciation		Unrealized Depreciation
BRL	BRC	900,000	01/04/16		12.17	%	Brazil Cetip Interbank Deposit Rate	$	7,909	$	—
BRL	BRC	368,000	01/04/16		12.22	%	Brazil Cetip Interbank Deposit Rate		3,368		—
ZAR	BRC	7,370,000	01/10/17		6.60	%	South Africa Johannesburg Interbank Agreed Rate 3 Month		—		6,172
ZAR	BRC	6,000,000	09/17/18		7.12	%	South Africa Johannesburg Interbank Agreed Rate 3 Month		—		5,561
ZAR	BRC	4,500,000	09/19/18		6.79	%	South Africa Johannesburg Interbank Agreed Rate 3 Month		—		9,211
Gross unrealized appreciation/depreciation on Interest Rate Swap Agreements									11,277		20,944
Gross unrealized appreciation/depreciation on Swap Agreements								$	23,475	$	299,719

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

46  Semi-Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio
Corporate Bonds | 14.8%
Argentina | 0.6%
Mastellone Hermanos SA, 12.625%, 07/03/21 (c)	USD		675	$	682,594
YPF Sociedad Anonima:
8.750%, 04/04/24	USD		150		156,735
8.750%, 04/04/24 (c)	USD		800		835,920
					1,675,249
Brazil | 1.1%
Arcos Dorados Holdings, Inc., 10.250%, 07/13/16	BRL		600		256,619
Banco do Brasil SA, 9.000%, 06/18/24 (c)	USD		1,350		1,338,130
JBS Investments GmbH, 7.250%, 04/03/24 (c)	USD		250		258,750
OAS Finance, Ltd., 8.000%, 07/02/21 (c)	USD		400		404,000
Odebrecht Offshore Drilling Finance, Ltd.:
6.625%, 10/01/23	USD		494		526,589
6.625%, 10/01/23 (c)	USD		396		421,271
					3,205,359
Bulgaria | 0.4%
ContourGlobal Power Holdings SA, 7.125%, 06/01/19 (c)	USD		1,275		1,272,450
Chile | 0.2%
GeoPark Latin America, Ltd. Agencia en Chile, 7.500%, 02/11/20	USD		525		568,312
China | 1.4%
BCP Singapore VI Cayman Financing Co., Ltd.:
8.000%, 04/15/21	USD		125		127,813
8.000%, 04/15/21 (c)	USD		700		715,750
Country Garden Holdings Co., Ltd., 7.250%, 04/04/21	USD		820		799,500
Kaisa Group Holdings, Ltd., 8.875%, 03/19/18	USD		650		667,875
Maoye International Holdings, Ltd., 7.750%, 05/19/17 (c)	USD		925		949,883
MIE Holdings Corp., 7.500%, 04/25/19 (c)	USD		750		793,740
					4,054,561

Description	Security Currency	Principal Amount (000)		Value
Colombia | 0.6%
Millicom International Cellular SA, 4.750%, 05/22/20	USD		275	$	275,000
Pacific Rubiales Energy Corp.:
5.125%, 03/28/23	USD		525		521,063
5.125%, 03/28/23 (c)	USD		825		818,812
					1,614,875
Georgia | 0.5%
Bank of Georgia JSC, 7.750%, 07/05/17	USD		1,275		1,364,250
Guatemala | 0.5%
Comcel Trust:
6.875%, 02/06/24	USD		200		216,000
6.875%, 02/06/24 (c)	USD		700		756,000
Industrial Senior Trust:
5.500%, 11/01/22	USD		100		100,000
5.500%, 11/01/22 (c)	USD		375		375,000
					1,447,000
India | 0.3%
Vedanta Resources PLC:
9.500%, 07/18/18	USD		350		403,375
8.250%, 06/07/21	USD		300		336,000
7.125%, 05/31/23	USD		200		211,000
					950,375
Indonesia | 0.6%
PT Berau Coal Energy Tbk, 7.250%, 03/13/17	USD		475		460,750
PT Gajah Tunggal Tbk, 7.750%, 02/06/18	USD		925		943,500
Star Energy Geothermal (Wayang Windu), Ltd., 6.125%, 03/27/20	USD		400		408,480
					1,812,730
Iraq | 1.0%
Genel Energy Finance, Ltd., 7.500%, 05/14/19	USD		1,000		990,000
Jamaica | 0.1%
Digicel Group, Ltd., 8.250%, 09/30/20	USD		375		408,750

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

Semi-Annual Report  47

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Kazakhstan | 0.6%
Halyk Savings Bank of Kazakhstan JSC, 7.250%, 01/28/21	USD		625	$	678,125
Nostrum Oil & Gas Finance BV, 6.375%, 02/14/19 (c)	USD		375		391,875
Zhaikmunai LP, 7.125%, 11/13/19	USD		500		543,750
					1,613,750
Macau | 0.3%
MCE Finance, Ltd., 5.000%, 02/15/21	USD		725		732,250
Mexico | 1.7%
America Movil SAB de CV, 6.450%, 12/05/22	MXN		17,350		1,326,145
Bio Pappel SAB de CV, 10.000%, 08/27/16	USD		418		422,598
Credito Real SAB de CV, 7.500%, 03/13/19 (c)	USD		1,375		1,485,000
Empresas ICA SAB de CV, 8.875%, 05/29/24 (c)	USD		900		925,200
Grupo KUO SAB de CV, 6.250%, 12/04/22	USD		375		392,813
Grupo Televisa SAB, 7.250%, 05/14/43	MXN		5,400		360,498
					4,912,254
Nigeria | 1.0%
Afren PLC:
6.625%, 12/09/20	USD		200		206,500
6.625%, 12/09/20 (c)	USD		600		619,500
Diamond Bank PLC, 8.750%, 05/21/19 (c)	USD		800		789,000
FBN Finance Co. BV:
8.250%, 08/07/20	USD		800		830,000
8.250%, 08/07/20 (c)	USD		500		518,750
					2,963,750
Panama | 0.3%
Avianca Holdings SA/Avianca Leasing LLC/Grupo Taca Holdings, Ltd., 8.375%, 05/10/20	USD		875		935,988
Paraguay | 0.2%
Telefonica Celular del Paraguay SA, 6.750%, 12/13/22	USD		375		403,125

Description	Security Currency	Principal Amount (000)		Value
Peru | 0.1%
Banco de Credito del Peru, 6.125%, 04/24/27	USD		330	$	351,450
Russia | 1.2%
Alliance Oil Co., Ltd., 7.000%, 05/04/20	USD		250		229,375
ALROSA Finance SA, 7.750%, 11/03/20	USD		725		802,067
EDC Finance, Ltd., 4.875%, 04/17/20	USD		550		537,625
Metalloinvest Finance, Ltd.:
5.625%, 04/17/20	USD		725		703,250
5.625%, 04/17/20 (c)	USD		625		606,250
Sberbank of Russia, 5.250%, 05/23/23	USD		675		632,813
					3,511,380
Singapore | 1.2%
Alam Synergy Pte, Ltd., 9.000%, 01/29/19	USD		275		293,563
Deep Drilling 7 and 8 Pte, Ltd., 14.250%, 03/05/15	USD		400		424,000
Oro Negro Drilling Pte, Ltd., 7.500%, 01/24/19 (c)	USD		1,385		1,409,237
Ottawa Holdings Pte, Ltd., 5.875%, 05/16/18	USD		450		396,540
Pacnet, Ltd.:
9.000%, 12/12/18	USD		400		433,000
9.000%, 12/12/18 (c)	USD		425		460,063
					3,416,403
South Africa | 0.8%
Transnet SOC, Ltd., 9.500%, 05/13/21 (c)	ZAR		24,000		2,246,815
Thailand | 0.3%
PTT Exploration & Production Public Co., Ltd, 4.875%, 06/18/19 (c)	USD		950		957,239
Turkey | 0.4%
Turk Telekomunikasyon AS, 4.875%, 06/19/24 (c)	USD		1,025		994,352
Total Corporate Bonds (Identified cost $42,120,359)					42,402,667

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

48  Semi-Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Foreign Government Obligations | 75.7%
Angola | 1.5%
Republic of Angola Northern Lights III BV, 7.000%, 08/16/19	USD		4,040	$	4,404,408
Argentina | 3.5%
Republic of Argentina:
8.750%, 06/02/17	USD		1,475		1,345,937
8.280%, 12/31/33	USD		8,853		7,412,884
2.500%, 12/31/38 (e)	USD		2,450		1,174,775
					9,933,596
Bahrain | 0.5%
Kingdom of Bahrain:
6.125%, 08/01/23	USD		200		223,750
6.125%, 08/01/23 (c)	USD		1,000		1,118,750
					1,342,500
Belarus | 0.7%
Republic of Belarus:
8.750%, 08/03/15	USD		675		694,440
8.950%, 01/26/18	USD		1,300		1,404,000
					2,098,440
Belize | 0.0%
Republic of Belize, 5.000%, 02/20/38 (e)	USD		185		129,500
Bolivia | 0.6%
Bolivia Government Bonds:
4.875%, 10/29/22	USD		1,050		1,053,150
5.950%, 08/22/23	USD		650		685,750
					1,738,900
Brazil | 8.0%
Brazil NTN:
0.000%, 01/01/15	BRL		5,220		2,237,829
0.000%, 01/01/16	BRL		5,395		2,076,805
0.000%, 01/01/17	BRL		23,550		8,088,612
6.000%, 05/15/19	BRL		2,640		2,963,086
Brazil NTN-B,
6.000%, 08/15/50	BRL		3,538		3,831,913
Brazil NTN-F:
10.000%, 01/01/23	BRL		2,635		1,067,291
10.000%, 01/01/25	BRL		7,360		2,755,539
					23,021,075

Description	Security Currency	Principal Amount (000)		Value
Chile | 0.1%
Republic of Chile, 6.000%, 01/01/18	CLP		205,000	$	379,842
Colombia | 2.3%
Colombian Titulos De Tesoreria, 7.000%, 05/04/22	COP		1,636,100		894,082
Republic of Colombia:
12.000%, 10/22/15	COP		7,852,000		4,561,896
7.750%, 04/14/21	COP		1,151,000		707,643
9.850%, 06/28/27	COP		731,000		509,734
					6,673,355
Congo | 0.8%
Republic of Congo, 3.500%, 06/30/29 (e)	USD		2,439		2,214,910
Costa Rica | 0.4%
Costa Rica Government Bonds:
4.250%, 01/26/23	USD		675		648,000
4.375%, 04/30/25	USD		675		630,450
					1,278,450
Ecuador | 0.8%
Republic of Ecuador:
9.375%, 12/15/15	USD		1,450		1,542,437
7.950%, 06/20/24 (c)	USD		670		685,075
					2,227,512
Gabon | 0.7%
Gabonese Republic:
8.200%, 12/12/17	USD		525		599,739
6.375%, 12/12/24	USD		200		218,468
6.375%, 12/12/24 (c)	USD		1,100		1,201,574
					2,019,781
Georgia | 0.6%
Republic of Georgia, 6.875%, 04/12/21	USD		1,575		1,783,688
Guatemala | 0.2%
Republic of Guatemala, 5.750%, 06/06/22	USD		390		419,640
Honduras | 0.6%
Honduras Government Bond, 7.500%, 03/15/24	USD		1,700		1,759,500

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

Semi-Annual Report  49

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Hungary | 3.7%
Hungary:
6.375%, 03/29/21	USD		1	$	1,140
7.000%, 06/24/22	HUF		369,720		1,951,602
6.750%, 10/22/28	HUF		112,000		591,698
Hungary Government Bonds:
8.000%, 02/12/15	HUF		40,540		185,355
7.750%, 08/24/15	HUF		414,930		1,948,089
6.750%, 02/24/17	HUF		764,000		3,724,447
6.750%, 11/24/17	HUF		89,120		443,044
6.500%, 06/24/19	HUF		114,540		578,935
7.500%, 11/12/20	HUF		224,800		1,201,437
					10,625,747
Indonesia | 4.8%
Indonesia Government Bonds:
7.875%, 04/15/19	IDR		75,325,000		6,376,098
7.000%, 05/15/22	IDR		28,590,000		2,242,826
8.375%, 03/15/24	IDR		4,817,000		411,812
7.000%, 05/15/27	IDR		13,980,000		1,037,739
6.125%, 05/15/28	IDR		44,330,000		2,954,087
6.625%, 05/15/33	IDR		4,000,000		270,772
Indonesia Treasury Bond,
9.000%, 03/15/29	IDR		4,825,000		417,599
					13,710,933
Iraq | 2.1%
Republic of Iraq, 5.800%, 01/15/28	USD		6,819		6,137,100
Ivory Coast | 3.0%
Ivory Coast, 5.750%, 12/31/32	USD		8,775		8,500,781
Kenya | 0.2%
Republic of Kenya, 6.875%, 06/24/24 (c)	USD		520		540,800
Lebanon | 0.7%
Lebanese Republic:
6.100%, 10/04/22	USD		445		452,788
6.000%, 01/27/23	USD		780		785,031
6.600%, 11/27/26	USD		870		884,355
					2,122,174

Description	Security Currency	Principal Amount (000)		Value
Malaysia | 4.8%
Bank Negara
Monetary Notes:
0.000%, 09/23/14	MYR		2,940	$	909,422
0.000%, 12/04/14	MYR		9,000		2,766,913
Malaysia Government Bonds:
3.197%, 10/15/15	MYR		2,000		623,203
3.260%, 03/01/18	MYR		10,000		3,073,631
3.580%, 09/28/18	MYR		9,000		2,794,129
5.734%, 07/30/19	MYR		4,820		1,642,143
4.160%, 07/15/21	MYR		1,365		430,501
3.418%, 08/15/22	MYR		1,470		440,106
4.392%, 04/15/26	MYR		3,065		974,239
					13,654,287
Mexico | 5.8%
Mexican Bonos:
9.500%, 12/18/14	MXN		81,770		6,486,557
8.000%, 06/11/20	MXN		2,700		239,271
7.750%, 05/29/31	MXN		4,440		391,428
10.000%, 11/20/36	MXN		25,410		2,725,489
8.500%, 11/18/38	MXN		6,700		629,428
7.750%, 11/13/42	MXN		33,456		2,920,243
Mexican Udibonos:
5.000%, 06/16/16	MXN		32,377		2,738,805
4.000%, 11/15/40	MXN		5,439		473,817
					16,605,038
Mozambique | 1.0%
Republic of Mozambique, 6.305%, 09/11/20	USD		2,862		2,890,620
Namibia | 0.1%
Republic of Namibia, 5.500%, 11/03/21	USD		184		197,106
Nigeria | 1.1%
Nigeria Government Bonds:
15.100%, 04/27/17	NGN		36,000		239,867
16.000%, 06/29/19	NGN		142,000		1,018,409
16.390%, 01/27/22	NGN		88,857		660,563
Nigeria Treasury Bills:
0.000%, 08/07/14	NGN		37,200		225,950
0.000%, 08/14/14	NGN		34,900		211,589
0.000%, 10/09/14	NGN		8,150		48,604
0.000%, 11/20/14	NGN		26,000		153,024
Republic of Nigeria, 6.375%, 07/12/23 (c)	USD		525		566,344
					3,124,350

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

50  Semi-Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Pakistan | 1.2%
Islamic Republic of Pakistan, 8.250%, 04/15/24 (c)	USD		3,450	$	3,557,812
Paraguay | 0.3%
Republic of Paraguay, 4.625%, 01/25/23	USD		855		868,680
Peru | 0.7%
Republic of Peru:
7.840%, 08/12/20	PEN		4,140		1,699,064
6.900%, 08/12/37	PEN		560		208,980
					1,908,044
Philippines | 0.1%
Philippine Government Bonds:
3.250%, 08/15/23	PHP		3,450		74,469
6.125%, 10/24/37	PHP		1,220		31,413
Republic of Philippines, 6.250%, 01/14/36	PHP		11,000		272,165
					378,047
Poland | 4.2%
Poland Government Bonds:
6.250%, 10/24/15	PLN		4,810		1,661,302
5.250%, 10/25/17	PLN		760		270,126
5.500%, 10/25/19	PLN		21,543		7,942,159
5.750%, 09/23/22	PLN		2,410		927,686
2.750%, 08/25/23	PLN		3,422		1,207,789
					12,009,062
Romania | 1.2%
Romania Government Bonds:
5.800%, 10/26/15	RON		2,880		937,670
6.750%, 06/11/17	RON		2,580		890,056
5.900%, 07/26/17	RON		3,560		1,205,504
5.750%, 04/29/20	RON		1,230		424,214
5.950%, 06/11/21	RON		310		108,552
4.375%, 08/22/23	USD		1		1,025
					3,567,021
Russia | 5.1%
Russia Foreign Bond, 7.850%, 03/10/18	RUB		100,000		2,929,831
Russia Government Bonds - OFZ:
7.500%, 02/27/19	RUB		120,090		3,455,481
6.800%, 12/11/19	RUB		130,371		3,628,516

Description	Security Currency	Principal Amount (000)		Value
7.600%, 04/14/21	RUB		9,975	$	285,965
7.600%, 07/20/22	RUB		46,930		1,333,655
7.000%, 01/25/23	RUB		40,300		1,106,693
8.150%, 02/03/27	RUB		35,000		1,013,480
7.050%, 01/19/28	RUB		28,300		744,671
					14,498,292
Rwanda | 0.5%
Republic of Rwanda, 6.625%, 05/02/23	USD		1,325		1,371,110
Senegal | 0.3%
Republic of Senegal, 8.750%, 05/13/21	USD		650		750,802
Slovenia | 0.9%
Republic of Slovenia:
5.850%, 05/10/23	USD		1,450		1,627,625
5.250%, 02/18/24	USD		1,000		1,075,000
					2,702,625
South Africa | 4.9%
Republic of South Africa:
8.000%, 12/21/18	ZAR		68,885		6,581,961
7.250%, 01/15/20	ZAR		20,059		1,840,071
7.750%, 02/28/23	ZAR		9,600		879,959
10.500%, 12/21/26	ZAR		7,735		848,290
7.000%, 02/28/31	ZAR		44,399		3,516,325
6.500%, 02/28/41	ZAR		4,600		322,536
					13,989,142
Thailand | 2.5%
Thailand Government Bonds:
3.625%, 05/22/15	THB		22,085		689,131
3.875%, 06/13/19	THB		130,000		4,136,339
1.200%, 07/14/21	THB		74,074		2,198,123
3.580%, 12/17/27	THB		8,700		258,364
					7,281,957
Turkey | 3.6%
Turkey Government Bonds:
7.500%, 09/24/14	TRY		2,370		1,116,762
9.000%, 01/27/16	TRY		5,516		2,636,151
9.000%, 03/08/17	TRY		5,025		2,418,077
6.300%, 02/14/18	TRY		5,640		2,502,407
3.000%, 07/21/21	TRY		3,000		1,517,787
					10,191,184

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

Semi-Annual Report  51

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Ukraine | 0.8%
Ukraine Government Bonds:
6.580%, 11/21/16	USD		875	$	844,375
7.750%, 09/23/20	USD		175		166,950
7.800%, 11/28/22	USD		1,000		945,000
7.500%, 04/17/23	USD		200		189,500
					2,145,825
Venezuela | 0.7%
Republic of Venezuela:
8.250%, 10/13/24	USD		1,145		918,862
7.650%, 04/21/25	USD		401		308,770
9.250%, 05/07/28	USD		475		399,000
9.375%, 01/13/34	USD		290		244,325
7.000%, 03/31/38	USD		360		252,900
					2,123,857
Zambia | 0.1%
Republic of Zambia, 8.500%, 04/14/24	USD		300		332,265
Total Foreign Government Obligations (Identified cost $216,824,073)					217,209,758
Quasi Government Bonds | 2.9%
Colombia | 0.4%
Emgesa SA ESP, 8.750%, 01/25/21	COP		1,000,000		577,827
Empresas Publicas de Medellin ESP, 8.375%, 02/01/21	COP		1,170,000		660,098
					1,237,925

Description	Security Currency	Principal Amount (000)		Value
Russia | 0.3%
Russian Agricultural Bank OJSC:
8.700%, 03/17/16	RUB		15,000	$	432,022
8.625%, 02/17/17	RUB		14,000		398,264
					830,286
South Africa | 0.3%
Eskom Holdings, Ltd., 7.850%, 04/02/26	ZAR		9,000		779,853
Venezuela | 1.9%
Petroleos de Venezuela SA:
4.900%, 10/28/14	USD		1,333		1,330,232
5.250%, 04/12/17	USD		2,070		1,748,115
6.000%, 11/15/26	USD		1,802		1,162,107
5.375%, 04/12/27	USD		940		581,860
5.500%, 04/12/37	USD		1,270		760,730
					5,583,044
Total Quasi Government Bonds (Identified cost $8,441,054)					8,431,108

Description	Shares		Value
Short-Term Investment | 5.6%
State Street Institutional Treasury Money Market Fund (Identified cost $16,003,844)		16,003,844	$	16,003,844
Total Investments | 99.0% (Identified cost $283,389,330) (d), (f)			$	284,047,377
Cash and Other Assets in Excess of Liabilities | 1.0%				2,830,401
Net Assets | 100.0%			$	286,877,778

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

52  Semi-Annual Report

Lazard Emerging Markets Debt Portfolio (continued)

Forward Currency Contracts open at June 30, 2014:

Currency	Counterparty	Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation			Unrealized Depreciation
Forward Currency Purchase Contracts
BRL	BRC	07/02/14		3,446,353	$	1,566,524	$	1,559,789		$	—		$	6,735
BRL	HSB	07/02/14		1,440,640		640,000		652,021			12,021			—
BRL	HSB	07/02/14		5,175,913		2,352,688		2,342,572			—			10,116
BRL	JPM	07/02/14		3,110,625		1,412,316		1,407,842			—			4,474
BRL	SCB	07/02/14		667,000		302,838		301,879			—			959
BRL	UBS	07/02/14		1,209,330		540,000		547,332			7,332			—
BRL	UBS	07/02/14		3,658,372		1,662,896		1,655,746			—			7,150
CLP	SCB	07/23/14		881,624,000		1,595,410		1,590,717			—			4,693
COP	JPM	07/10/14		2,876,931,960		1,523,073		1,531,866			8,793			—
COP	SCB	07/10/14		904,800,000		480,000		481,774			1,774			—
COP	UBS	07/10/14		904,800,000		480,000		481,774			1,774			—
CZK	JPM	07/09/14		79,063,570		3,914,512		3,944,884			30,372			—
EUR	HSB	07/09/14		794,683		1,075,000		1,088,189			13,189			—
EUR	JPM	07/09/14		741,591		1,004,863		1,015,487			10,624			—
EUR	SCB	07/09/14		741,591		1,004,644		1,015,487			10,843			—
EUR	UBS	07/09/14		293,095		400,000		401,346			1,346			—
EUR	UBS	07/09/14		741,591		1,004,714		1,015,487			10,773			—
EUR	UBS	07/09/14		794,680		1,075,000		1,088,185			13,185			—
HUF	BRC	07/09/14		161,363,800		725,809		713,243			—			12,566
HUF	JPM	07/09/14		82,201,500		369,740		363,339			—			6,401
IDR	JPM	07/02/14		4,593,050,000		385,000		387,436			2,436			—
IDR	JPM	07/02/14		6,873,826,000		574,302		579,825			5,523			—
IDR	SCB	07/02/14		4,591,125,000		385,000		387,273			2,273			—
IDR	SCB	08/08/14		4,591,125,000		380,060		384,739			4,679			—
IDR	UBS	07/02/14		8,737,500,000		750,000		737,031			—			12,969
IDR	UBS	07/02/14		19,647,766,000		1,632,145		1,657,340			25,195			—
INR	BRC	07/09/14		85,149,900		1,430,850		1,413,413			—			17,437
INR	BRC	08/08/14		85,149,900		1,407,436		1,403,514			—			3,922
INR	HSB	07/09/14		28,908,320		487,000		479,853			—			7,147
INR	HSB	07/09/14		36,834,200		620,000		611,415			—			8,585
INR	SCB	07/09/14		36,834,200		620,000		611,415			—			8,585
INR	SCB	07/09/14		51,240,625		863,000		850,549			—			12,451
INR	SCB	08/08/14		88,074,825		1,456,746		1,451,726			—			5,020
INR	UBS	08/08/14		65,742,520		1,087,192		1,083,625			—			3,567
MXN	BRC	08/08/14		4,039,429		310,453		310,560			107			—
MXN	BRC	08/08/14		4,039,429		310,453		310,560			107			—
MXN	UBS	07/09/14		13,427,291		1,031,076		1,034,471			3,395			—
MYR	CIT	07/03/14		2,030,490		629,999		632,308			2,309			—
MYR	CIT	08/08/14		2,030,490		631,567		630,625			—			942
MYR	JPM	07/03/14		2,030,490		629,999		632,308			2,309			—
MYR	JPM	07/09/14		2,115,960		660,000		658,637			—			1,363
MYR	JPM	08/08/14		2,030,490		631,273		630,625			—			648

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

Semi-Annual Report  53

Lazard Emerging Markets Debt Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (continued):

Currency	Counterparty	Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation			Unrealized Depreciation
Forward Currency Purchase Contracts (concluded)
MYR	JPM	08/08/14		2,115,960	$	657,457	$	657,170		$	—		$	287
MYR	SCB	07/07/14		2,858,875		881,770		890,014			8,244			—
MYR	SCB	07/09/14		1,428,909		440,885		444,778			3,893			—
MYR	SCB	07/09/14		2,858,875		886,418		889,885			3,467			—
MYR	SCB	08/08/14		4,287,784		1,332,769		1,331,691			—			1,078
MYR	UBS	07/09/14		2,115,960		660,000		658,637			—			1,363
MYR	UBS	07/18/14		4,209,220		1,308,166		1,309,353			1,187			—
MYR	UBS	08/08/14		2,115,960		657,692		657,170			—			522
PEN	JPM	08/08/14		619,410		220,000		220,460			460			—
PHP	BRC	07/03/14		14,931,000		339,572		342,048			2,476			—
PHP	BRC	09/08/14		14,931,000		341,748		341,615			—			133
PHP	JPM	07/03/14		44,806,500		1,019,836		1,026,455			6,619			—
PHP	JPM	08/08/14		44,806,500		1,025,789		1,025,738			—			51
PHP	SCB	07/03/14		16,651,600		379,092		381,465			2,373			—
PHP	UBS	09/08/14		16,651,600		380,935		380,983			48			—
PLN	HSB	07/09/14		4,750,547		1,571,299		1,563,565			—			7,734
PLN	HSB	07/09/14		4,750,547		1,569,998		1,563,565			—			6,433
PLN	JPM	07/09/14		4,750,547		1,570,532		1,563,565			—			6,967
RSD	CIT	07/09/14		260,415,500		3,061,371		3,074,999			13,628			—
RUB	JPM	07/09/14		3,741,000		107,500		109,942			2,442			—
RUB	JPM	07/09/14		3,752,825		107,500		110,289			2,789			—
THB	BRC	07/09/14		26,979,150		831,920		831,049			—			871
THB	BRC	08/08/14		26,979,150		830,128		829,902			—			226
THB	CIT	07/09/14		1,637,250		50,455		50,433			—			22
THB	JPM	07/09/14		41,907,910		1,291,063		1,290,904			—			159
THB	JPM	08/08/14		41,907,910		1,289,751		1,289,122			—			629
THB	SCB	07/09/14		978,150		30,133		30,130			—			3
THB	SCB	08/08/14		978,150		30,106		30,089			—			17
TRY	CIT	07/09/14		3,906,854		1,861,825		1,840,990			—			20,835
TRY	HSB	07/09/14		1,437,485		670,000		677,373			7,373			—
TRY	HSB	07/09/14		3,906,854		1,862,003		1,840,990			—			21,013
TRY	HSB	07/09/14		3,906,854		1,860,495		1,840,990			—			19,505
TRY	JPM	07/09/14		3,906,854		1,862,180		1,840,990			—			21,190
ZAR	HSB	07/09/14		4,711,256		440,000		442,481			2,481			—
ZAR	JPM	07/09/14		4,710,860		440,000		442,444			2,444			—
ZAR	UBS	07/09/14		20,090,001		1,860,633		1,886,851			26,218			—
Total Forward Currency Purchase Contracts					$	73,774,599	$	73,786,332		$	256,501		$	244,768

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

54  Semi-Annual Report

Lazard Emerging Markets Debt Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (continued):

Currency	Counterparty	Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation			Unrealized Depreciation
Forward Currency Sale Contracts
BRL	BRC	07/02/14		852,720	$	380,000	$	385,933		$	—		$	5,933
BRL	BRC	07/02/14		2,593,633		1,151,267		1,173,855			—			22,588
BRL	BRC	08/04/14		3,446,353		1,552,096		1,545,207			6,889			—
BRL	HSB	07/02/14		251,900		110,000		114,008			—			4,008
BRL	HSB	07/02/14		6,364,653		2,827,666		2,880,585			—			52,919
BRL	HSB	08/04/14		5,175,913		2,331,020		2,320,673			10,347			—
BRL	JPM	07/02/14		933,945		413,552		422,695			—			9,143
BRL	JPM	07/02/14		2,176,680		970,000		985,146			—			15,146
BRL	SCB	07/02/14		667,000		290,000		301,878			—			11,878
BRL	UBS	07/02/14		422,845		187,203		191,376			—			4,173
BRL	UBS	07/02/14		667,232		290,000		301,983			—			11,983
BRL	UBS	07/02/14		3,777,625		1,715,153		1,709,719			5,434			—
BRL	UBS	08/04/14		3,658,372		1,647,581		1,640,268			7,313			—
CLP	SCB	07/23/14		395,500,000		704,112		713,602			—			9,490
CLP	UBS	07/23/14		486,124,000		866,732		877,115			—			10,383
CZK	UBS	07/09/14		79,063,570		3,912,973		3,944,885			—			31,912
EUR	BRC	07/09/14		530,000		725,809		725,748			61			—
EUR	CIT	07/09/14		2,249,616		3,061,371		3,080,481			—			19,110
EUR	JPM	07/09/14		270,000		369,740		369,721			19			—
EUR	JPM	07/09/14		2,881,640		3,914,513		3,945,935			—			31,422
EUR	UBS	07/09/14		681,748		930,000		933,543			—			3,543
EUR	UBS	07/09/14		776,085		1,060,000		1,062,721			—			2,721
HUF	HSB	07/09/14		68,672,599		306,666		303,539			3,127			—
HUF	JPM	07/09/14		68,672,598		306,478		303,539			2,939			—
HUF	JPM	07/09/14		671,480,572		3,002,507		2,968,006			34,501			—
IDR	JPM	07/02/14		11,466,876,000		973,006		967,261			5,745			—
IDR	JPM	07/23/14		2,769,600,000		230,973		232,767			—			1,794
IDR	SCB	07/02/14		4,591,125,000		381,322		387,273			—			5,951
IDR	UBS	07/02/14		6,873,826,000		574,302		579,825			—			5,523
IDR	UBS	07/02/14		21,511,440,000		1,818,073		1,814,546			3,527			—
IDR	UBS	07/23/14		2,766,000,000		231,426		232,465			—			1,039
IDR	UBS	08/08/14		19,647,766,000		1,626,067		1,646,495			—			20,428
INR	BRC	07/09/14		85,149,900		1,413,511		1,413,413			98			—
INR	SCB	07/09/14		88,074,825		1,463,037		1,461,964			1,073			—
INR	UBS	07/09/14		65,742,520		1,091,887		1,091,268			619			—
MXN	BRC	07/09/14		4,039,429		310,948		311,208			—			260
MXN	BRC	07/09/14		4,039,429		311,103		311,207			—			104
MXN	HSB	07/09/14		2,347,056		180,000		180,823			—			823
MXN	JPM	07/09/14		2,347,056		180,000		180,823			—			823
MXN	SCB	07/09/14		2,346,930		180,000		180,813			—			813
MXN	UBS	07/09/14		2,346,820		180,000		180,805			—			805
MYR	CIT	07/03/14		2,030,490		632,551		632,308			243			—

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

Semi-Annual Report  55

Lazard Emerging Markets Debt Portfolio (concluded)

Forward Currency Contracts open at June 30, 2014 (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)
MYR	JPM	07/03/14		2,030,490	$	632,236	$	632,308		$	—		$	72
MYR	JPM	07/09/14		2,115,960		658,357		658,637			—			280
MYR	SCB	07/07/14		2,858,875		886,473		890,015			—			3,542
MYR	SCB	07/09/14		4,287,784		1,334,511		1,334,663			—			152
MYR	UBS	07/09/14		2,115,960		658,541		658,637			—			96
PEN	CIT	08/08/14		1,389,671		493,491		494,611			—			1,120
PEN	HSB	08/08/14		1,389,671		493,491		494,611			—			1,120
PEN	JPM	08/08/14		2,779,342		987,052		989,222			—			2,170
PHP	BRC	07/03/14		14,931,000		341,749		342,049			—			300
PHP	JPM	07/03/14		44,806,500		1,025,790		1,026,455			—			665
PHP	UBS	07/03/14		16,651,600		380,956		381,465			—			509
RON	UBS	07/09/14		2,511,617		778,290		784,101			—			5,811
RUB	JPM	07/09/14		89,095,172		2,579,926		2,618,356			—			38,430
THB	BRC	07/09/14		26,979,150		831,150		831,048			102			—
THB	CIT	07/09/14		1,637,250		50,470		50,433			37			—
THB	CIT	08/08/14		1,637,250		50,392		50,363			29			—
THB	JPM	07/09/14		41,907,910		1,291,063		1,290,904			159			—
THB	SCB	07/09/14		978,150		30,143		30,130			13			—
TRY	HSB	07/09/14		1,911,862		910,584		900,909			9,675			—
TRY	JPM	07/09/14		1,911,862		910,386		900,909			9,477			—
ZAR	HSB	07/09/14		4,124,559		383,487		387,378			—			3,891
ZAR	JPM	07/09/14		4,124,559		383,419		387,378			—			3,959
ZAR	JPM	07/09/14		29,344,572		2,750,581		2,756,040			—			5,459
ZAR	SCB	07/09/14		29,344,572		2,748,056		2,756,040			—			7,984
Total Forward Currency Sale Contracts					$	66,395,239	$	66,654,087			101,427			360,275
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts										$	357,928		$	605,043

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

56  Semi-Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Income Portfolio
Foreign Government Obligations | 38.6%
Brazil | 4.7%
Brazil NTN-B, 6.000%, 08/15/16	BRL		220	$	247,696
Hungary | 2.0%
Hungary Treasury Bill, 0.000%, 10/15/14	HUF		24,000		105,408
Malaysia | 5.2%
Bank Negara Monetary Note, 0.000%, 12/23/14	MYR		895		274,648
Mexico | 8.3%
Mexico Cetes, 0.000%, 07/31/14	MXN		57,300		440,633
Poland | 4.3%
Poland Government Bond, 0.000%, 07/25/14	PLN		700		230,152
Romania | 2.7%
Romania Treasury Bill, 0.000%, 11/05/14	RON		470		145,643
Russia | 8.2%
Russia Government Bonds - OFZ:
7.500%, 03/15/18	RUB		13,028		377,323
7.600%, 04/14/21	RUB		2,025		58,053
					435,376
South Africa | 3.2%
Republic of South Africa:
8.750%, 12/21/14	ZAR		1,111		105,770
2.750%, 01/31/22	ZAR		647		65,835
					171,605
Total Foreign Government Obligations (Identified cost $2,036,433)					2,051,161

Description	Security Currency	Principal Amount (000)		Value
US Treasury Securities | 23.6%
United States | 23.6%
US Treasury Notes:
2.625%, 07/31/14	USD		250	$	250,527
2.375%, 08/31/14	USD		250		250,947
2.375%, 09/30/14	USD		250		251,426
2.125%, 11/30/14	USD		500		504,239
					1,257,139
Total US Treasury Securities (Identified cost $1,257,252)					1,257,139

Description	Shares		Value
Short-Term Investment | 30.3%
State Street Institutional Treasury Money Market Fund (Identified cost $1,611,700)		1,611,700	$	1,611,700
Total Investments | 92.5% (Identified cost $4,905,385) (d), (f)			$	4,920,000
Cash and Other Assets in Excess of Liabilities | 7.5%				400,563
Net Assets | 100.0%			$	5,320,563

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

Semi-Annual Report  57

Lazard Emerging Markets Income Portfolio (continued)

Forward Currency Contracts open at June 30, 2014:

Currency	Counterparty	Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation			Unrealized Depreciation
Forward Currency Purchase Contracts
BRL	CIT	07/02/14		42,760	$	19,000	$	19,353		$	353		$	—
BRL	CIT	09/03/14		47,307		21,000		21,033			33			—
CLP	CIT	07/28/14		61,477,350		111,000		110,866			—			134
CNH	HSB	07/21/14		702,295		113,000		112,996			—			4
CNH	HSB	07/21/14		1,535,655		246,207		247,081			874			—
CNH	HSB	08/11/14		674,838		108,000		108,419			419			—
CNH	HSB	09/03/14		420,827		67,000		67,512			512			—
CNY	BRC	07/10/14		1,894,293		306,000		305,827			—			173
COP	UBS	08/22/14		210,827,800		109,000		111,990			2,990			—
CZK	JPM	07/07/14		1,057,662		52,304		52,771			467			—
CZK	JPM	08/04/14		1,057,399		52,290		52,776			486			—
CZK	JPM	09/19/14		3,371,676		166,793		168,355			1,562			—
EUR	JPM	08/05/14		19,500		26,573		26,705			132			—
EUR	JPM	08/05/14		39,000		53,184		53,409			225			—
EUR	UBS	08/05/14		85,000		115,654		116,406			752			—
HUF	JPM	07/14/14		11,604,060		51,462		51,281			—			181
IDR	SCB	07/07/14		1,764,905,000		149,000		148,770			—			230
IDR	SCB	12/04/14		643,950,000		53,000		53,036			36			—
ILS	JPM	07/14/14		169,224		48,934		49,310			376			—
INR	JPM	08/25/14		365,460		6,000		6,033			33			—
INR	JPM	11/21/14		24,538,670		403,000		399,110			—			3,890
KRW	BRC	07/23/14		262,293,000		255,000		259,055			4,055			—
KRW	CIT	09/24/14		142,527,820		139,000		140,400			1,400			—
MXN	CIT	07/30/14		168,553		13,000		12,967			—			33
MXN	JPM	07/16/14		364,353		28,000		28,057			57			—
MYR	HSB	07/21/14		889,873		275,000		277,058			2,058			—
PEN	JPM	09/16/14		127,040		45,000		45,032			32			—
PHP	SCB	09/16/14		5,167,220		118,000		118,409			409			—
PLN	BNP	07/21/14		42,955		14,000		14,127			127			—
RUB	BRC	07/30/14		203,745		6,000		5,960			—			40
RUB	BRC	07/30/14		1,294,242		38,000		37,863			—			137
SGD	HSB	07/14/14		18,842		15,000		15,111			111			—
SGD	HSB	07/14/14		386,602		310,279		310,051			—			228
THB	SCB	07/23/14		6,635,916		204,000		204,276			276			—
TRY	JPM	07/21/14		548,526		254,000		257,830			3,830			—
TWD	HSB	07/14/14		7,378,770		246,000		247,183			1,183			—
Total Forward Currency Purchase Contracts					$	4,238,680	$	4,256,418		$	22,788		$	5,050

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

58  Semi-Annual Report

Lazard Emerging Markets Income Portfolio (concluded)

Forward Currency Contracts open at June 30, 2014 (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	CIT	07/02/14		42,760	$	19,318	$	19,353		$	—		$	35
CLP	UBS	07/09/14		14,471,600		26,000		26,149			—			149
CNY	HSB	07/10/14		654,953		106,401		105,740			661			—
CNY	HSB	07/10/14		1,239,341		201,339		200,087			1,252			—
COP	CIT	07/09/14		47,125,000		25,000		25,093			—			93
COP	UBS	07/09/14		47,150,000		25,000		25,107			—			107
EUR	BRC	08/05/14		2,000		2,728		2,739			—			11
EUR	JPM	07/07/14		38,500		52,303		52,719			—			416
EUR	JPM	07/14/14		38,000		51,462		52,036			—			574
EUR	JPM	08/04/14		38,500		52,291		52,725			—			434
EUR	JPM	08/05/14		6,000		8,189		8,217			—			28
EUR	JPM	09/19/14		123,000		166,793		168,474			—			1,681
HUF	JPM	07/14/14		10,132,000		45,277		44,776			501			—
JPY	CIT	09/12/14		613,219		6,000		6,056			—			56
JPY	SCB	07/23/14		7,502,971		74,000		74,075			—			75
MYR	JPM	07/14/14		858,116		266,000		267,197			—			1,197
PLN	JPM	08/11/14		89,000		29,000		29,231			—			231
RON	JPM	09/10/14		146,000		44,829		45,459			—			630
ZAR	BRC	07/07/14		351,358		33,255		33,010			245			—
ZAR	BRC	07/07/14		352,009		32,837		33,072			—			235
ZAR	BRC	07/07/14		499,502		47,000		46,929			71			—
Total Forward Currency Sale Contracts					$	1,315,022	$	1,318,244			2,730			5,952
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts										$	25,518		$	11,002

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

Semi-Annual Report  59

Description	Security Currency	Principal Amount (000)		Value
Lazard Explorer Total Return Portfolio
Corporate Bonds | 23.0%
Argentina | 1.0%
Mastellone Hermanos SA, 12.625%, 07/03/21 (c)	USD		750	$	758,437
YPF Sociedad Anonima, 8.750%, 04/04/24 (c)	USD		725		757,553
					1,515,990
Brazil | 2.3%
Banco do Brasil SA, 9.000%, 06/18/24 (c)	USD		1,550		1,536,371
JBS Investments GmbH, 7.250%, 04/03/24 (c)	USD		350		362,250
Marfrig Holding Europe BV, 6.875%, 06/24/19 (c)	USD		200		202,300
OAS Finance, Ltd., 8.000%, 07/02/21 (c)	USD		300		303,000
Odebrecht Offshore Drilling Finance, Ltd.:
6.625%, 10/01/23	USD		272		289,624
6.625%, 10/01/23 (c)	USD		445		473,930
Petrobras Global Finance BV, 6.250%, 03/17/24	USD		375		399,150
					3,566,625
Bulgaria | 0.6%
ContourGlobal Power Holdings SA, 7.125%, 06/01/19 (c)	USD		925		923,150
Chile | 0.6%
GeoPark Latin America, Ltd. Agencia en Chile, 7.500%, 02/11/20	USD		675		730,687
VTR Finance BV, 6.875%, 01/15/24 (c)	USD		200		214,748
					945,435
China | 1.8%
BCP Singapore VI Cayman Financing Co., Ltd.:
8.000%, 04/15/21	USD		50		51,125
8.000%, 04/15/21 (c)	USD		400		409,000
Country Garden Holdings Co., Ltd., 7.250%, 04/04/21	USD		400		390,000
Kaisa Group Holdings, Ltd., 8.875%, 03/19/18	USD		425		436,688

Description	Security Currency	Principal Amount (000)		Value
Maoye International Holdings, Ltd., 7.750%, 05/19/17 (c)	USD		825	$	847,192
MIE Holdings Corp., 7.500%, 04/25/19 (c)	USD		675		714,366
					2,848,371
Colombia | 0.7%
Millicom International Cellular SA, 4.750%, 05/22/20	USD		400		400,000
Pacific Rubiales Energy Corp.:
7.250%, 12/12/21	USD		125		138,750
5.125%, 03/28/23	USD		550		545,875
					1,084,625
Georgia | 0.7%
Bank of Georgia JSC, 7.750%, 07/05/17	USD		950		1,016,500
Guatemala | 1.0%
Comcel Trust, 6.875%, 02/06/24 (c)	USD		700		756,000
Industrial Senior Trust, 5.500%, 11/01/22	USD		750		750,000
					1,506,000
India | 0.4%
Vedanta Resources PLC:
9.500%, 07/18/18	USD		100		115,250
7.125%, 05/31/23	USD		525		553,875
					669,125
Indonesia | 1.2%
PT Berau Coal Energy Tbk, 7.250%, 03/13/17	USD		750		727,500
PT Gajah Tunggal Tbk, 7.750%, 02/06/18	USD		650		663,000
Star Energy Geothermal (Wayang Windu), Ltd., 6.125%, 03/27/20	USD		375		382,950
					1,773,450
Iraq | 1.0%
Genel Energy Finance, Ltd., 7.500%, 05/14/19	USD		1,000		990,000
Gulf Keystone Petroleum, Ltd., 13.000%, 04/18/17 (c)	USD		600		556,500
					1,546,500
Kazakhstan | 1.1%
Halyk Savings Bank of Kazakhstan JSC, 7.250%, 01/28/21	USD		675		732,375

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

60  Semi-Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Explorer Total Return Portfolio (continued)
Nostrum Oil & Gas Finance BV:
6.375%, 02/14/19	USD		200	$	209,000
6.375%, 02/14/19 (c)	USD		450		470,250
Zhaikmunai LP, 7.125%, 11/13/19	USD		200		217,500
					1,629,125
Macau | 0.5%
MCE Finance, Ltd., 5.000%, 02/15/21	USD		825		833,250
Mexico | 1.5%
America Movil SAB de CV, 6.000%, 06/09/19	MXN		6,610		518,162
Credito Real SAB de CV:
7.500%, 03/13/19	USD		200		216,000
7.500%, 03/13/19 (c)	USD		700		756,000
Empresas ICA SAB de CV, 8.875%, 05/29/24 (c)	USD		775		796,700
					2,286,862
Nigeria | 1.8%
Afren PLC:
6.625%, 12/09/20	USD		525		542,062
6.625%, 12/09/20 (c)	USD		225		232,313
Diamond Bank PLC, 8.750%, 05/21/19 (c)	USD		850		838,312
FBN Finance Co. BV:
8.250%, 08/07/20	USD		900		933,750
8.250%, 08/07/20 (c)	USD		200		207,500
					2,753,937
Panama | 0.5%
Avianca Holdings SA/Avianca Leasing LLC/Grupo Taca Holdings, Ltd.:
8.375%, 05/10/20	USD		225		240,683
8.375%, 05/10/20 (c)	USD		500		534,850
					775,533
Paraguay | 0.3%
Telefonica Celular del Paraguay SA, 6.750%, 12/13/22	USD		400		430,000
Peru | 0.4%
Banco de Credito del Peru, 6.125%, 04/24/27	USD		625		665,625

Description	Security Currency	Principal Amount (000)		Value
Russia | 2.0%
Alliance Oil Co., Ltd., 7.000%, 05/04/20	USD		200	$	183,500
ALROSA Finance SA, 7.750%, 11/03/20	USD		675		746,752
EDC Finance, Ltd., 4.875%, 04/17/20	USD		700		684,250
Metalloinvest Finance, Ltd., 5.625%, 04/17/20	USD		975		945,750
Sberbank of Russia,
5.500%, 02/26/24	USD		225		218,813
5.500%, 02/26/24 (c)	USD		300		291,750
					3,070,815
Singapore | 1.9%
Alam Synergy Pte, Ltd., 9.000%, 01/29/19	USD		300		320,250
Deep Drilling 7 and 8 Pte, Ltd., 14.250%, 03/05/15	USD		350		371,000
Oro Negro Drilling Pte, Ltd., 7.500%, 01/24/19 (c)	USD		1,075		1,093,812
Ottawa Holdings Pte, Ltd., 5.875%, 05/16/18	USD		400		352,480
Pacnet, Ltd.:
9.000%, 12/12/18	USD		550		595,375
9.000%, 12/12/18 (c)	USD		200		216,500
					2,949,417
Thailand | 0.5%
PTT Exploration & Production Public Co., Ltd, 4.875%, 06/18/19 (c)	USD		825		831,287
Trinidad and Tobago | 0.6%
Petroleum Co. of Trinidad and Tobago Ltd.:
9.750%, 08/14/19	USD		200		251,500
6.000%, 05/08/22	USD		583		622,708
					874,208
Turkey | 0.4%
Turk Telekomunikasyon AS, 4.875%, 06/19/24 (c)	USD		675		654,818
Vietnam | 0.2%
Vingroup JSC, 11.625%, 05/07/18	USD		250		280,000
Total Corporate Bonds (Identified cost $34,926,485)					35,430,648

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

Semi-Annual Report  61

Description	Security Currency	Principal Amount (000)		Value
Lazard Explorer Total Return Portfolio (continued)
Foreign Government Obligations | 39.8%
Angola | 2.3%
Republic of Angola Northern Lights III BV, 7.000%, 08/16/19	USD		3,225	$	3,515,895
Argentina | 2.9%
Republic of Argentina:
8.750%, 06/02/17	USD		1,630		1,487,375
8.280%, 12/31/33	USD		2,173		1,823,280
2.500%, 12/31/38 (e)	USD		2,500		1,198,750
					4,509,405
Belarus | 1.0%
Republic of Belarus, 8.950%, 01/26/18	USD		1,370		1,479,600
Bolivia | 1.3%
Bolivia Government Bonds:
4.875%, 10/29/22	USD		1,230		1,233,690
5.950%, 08/22/23	USD		450		474,750
5.950%, 08/22/23 (c)	USD		200		211,000
					1,919,440
Brazil | 5.0%
Brazil NTN, 0.000%, 01/01/15	BRL		3,600		1,543,330
Brazil NTN-B:
6.000%, 08/15/22	BRL		2,670		3,037,206
6.000%, 08/15/50	BRL		2,000		2,165,931
Brazil NTN-F, 10.000%, 01/01/25	BRL		2,547		1,008,725
					7,755,192
Colombia | 0.9%
Republic of Colombia:
12.000%, 10/22/15	COP		2,082,000		1,209,612
7.750%, 04/14/21	COP		320,000		196,738
					1,406,350
Congo | 1.2%
Republic of Congo, 3.500%, 06/30/29 (e)	USD		1,942		1,763,413

Description	Security Currency	Principal Amount (000)		Value
Costa Rica | 1.5%
Republic of Costa Rica, 7.000%, 04/04/44 (c)	USD		2,210	$	2,298,400
Ecuador | 3.5%
Republic of Ecuador:
9.375%, 12/15/15	USD		1,675		1,781,781
7.950%, 06/20/24 (c)	USD		3,570		3,650,325
					5,432,106
Georgia | 0.7%
Republic of Georgia, 6.875%, 04/12/21	USD		950		1,075,875
Honduras | 0.5%
Honduras Government Bond, 7.500%, 03/15/24	USD		725		750,375
Hungary | 0.5%
Hungary, 7.625%, 03/29/41	USD		560		717,147
Indonesia | 0.5%
Indonesia Government Bond, 7.875%, 04/15/19	IDR		9,000,000		761,831
Iraq | 3.0%
Republic of Iraq, 5.800%, 01/15/28	USD		5,097		4,587,300
Ivory Coast | 3.3%
Ivory Coast, 5.750%, 12/31/32	USD		5,200		5,037,500
Kenya | 0.7%
Kenya Infrastructure Bond, 6.000%, 08/19/19	KES		17,850		176,322
Republic of Kenya, 6.875%, 06/24/24 (c)	USD		790		821,600
					997,922
Mexico | 0.4%
Mexican Bonos, 9.500%, 12/18/14	MXN		8,440		669,519

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

62  Semi-Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Explorer Total Return Portfolio (continued)
Mozambique | 1.5%
Republic of Mozambique, 6.305%, 09/11/20	USD		2,300	$	2,323,000
Pakistan | 2.0%
Islamic Republic of Pakistan, 8.250%, 04/15/24 (c)	USD		2,935		3,026,719
Paraguay | 0.5%
Republic of Paraguay, 4.625%, 01/25/23	USD		750		762,000
Romania | 0.6%
Romania Government Bond, 5.950%, 06/11/21	RON		950		332,659
Romanian Government International Bond, 4.875%, 01/22/24	USD		600		638,250
					970,909
Rwanda | 1.0%
Republic of Rwanda, 6.625%, 05/02/23	USD		1,525		1,578,070
Senegal | 0.5%
Republic of Senegal, 8.750%, 05/13/21	USD		675		779,679
Slovenia | 3.5%
Republic of Slovenia:
5.500%, 10/26/22	USD		1,150		1,259,250
5.850%, 05/10/23	USD		200		224,500
5.250%, 02/18/24	USD		650		698,750
5.250%, 02/18/24 (c)	USD		3,000		3,225,000
					5,407,500
South Africa | 0.0%
Republic of South Africa, 8.000%, 12/21/18	ZAR		620		59,241

Description	Security Currency	Principal Amount (000)		Value
Uganda | 0.0%
Uganda Treasury Bills:
0.000%, 08/07/14	UGX		20,000	$	7,599
0.000%, 08/07/14	UGX		10,000		3,799
					11,398
Uruguay | 0.0%
Uruguay, Monetary Regulation Bills:
0.000%, 11/26/15	UYU		600		21,777
0.000%, 11/26/15	UYU		1,200		43,501
					65,278
Venezuela | 1.0%
Republic of Venezuela:
7.000%, 12/01/18	USD		475		414,437
7.750%, 10/13/19	USD		500		432,500
9.000%, 05/07/23	USD		450		384,750
8.250%, 10/13/24	USD		325		260,813
					1,492,500
Total Foreign Government Obligations (Identified cost $59,052,292)					61,153,564
Quasi Government Bonds | 3.2%
Azerbaijan | 1.0%
State Oil Co. of the Azerbaijan Republic, 4.750%, 03/13/23	USD		1,550		1,542,250
Venezuela | 2.2%
Petroleos de Venezuela SA:
4.900%, 10/28/14	USD		2,205		2,200,369
5.250%, 04/12/17	USD		425		358,913
8.500%, 11/02/17	USD		400		374,120
5.500%, 04/12/37	USD		725		434,275
					3,367,677
Total Quasi Government Bonds (Identified cost $4,776,616)					4,909,927

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

Semi-Annual Report  63

Description	Shares		Value
Lazard Explorer Total Return Portfolio (continued)
Short-Term Investment | 31.6%
State Street Institutional Treasury Money Market Fund (Identified cost $48,554,551)		48,554,551	$	48,554,551
Warrant | 0.0%
Iraq | 0.0%
Gulf Keystone Petroleum, Ltd. Expires 04/18/17 (Identified cost $0)		96,000		0

Description	Value
Total Investments | 97.6% (Identified cost $147,309,944) (d), (f)	$	150,048,690
Cash and Other Assets in Excess of Liabilities | 2.4%		3,616,015
Net Assets | 100.0%	$	153,664,705

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

64  Semi-Annual Report

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at June 30, 2014:

					US $ Cost		US $
		Expiration	Foreign		on Origination		Current		Unrealized		Unrealized
Currency	Counterparty	Date	Currency Amount		Date		Value		Appreciation		Depreciation
Forward Currency Purchase Contracts
AUD	UBS	07/07/14		1,362,225	$	1,278,175	$	1,284,049	$	5,874	$	—
BRL	BRC	07/02/14		3,892,039		1,767,101		1,761,503		—		5,598
BRL	BRC	08/04/14		263,046		118,465		117,939		—		526
BRL	CIT	07/02/14		5,609,560		2,440,000		2,538,837		98,837		—
BRL	HSB	07/02/14		5,608,340		2,440,000		2,538,285		98,285		—
BRL	HSB	07/07/14		1,398,760		623,333		632,162		8,829		—
BRL	HSB	08/13/14		1,398,760		619,880		625,564		5,684		—
BRL	JPM	07/02/14		5,609,560		2,440,000		2,538,837		98,837		—
BRL	JPM	07/07/14		1,398,448		623,333		632,021		8,688		—
BRL	JPM	08/13/14		1,398,448		619,770		625,425		5,655		—
BRL	SCB	07/02/14		1,719,120		760,000		778,058		18,058		—
BRL	SCB	07/02/14		9,269,499		4,208,626		4,195,292		—		13,334
BRL	SCB	07/07/14		1,398,760		623,333		632,162		8,829		—
BRL	SCB	08/13/14		1,398,760		619,963		625,564		5,601		—
CAD	UBS	07/07/14		487,574		453,768		456,881		3,113		—
CLP	HSB	07/07/14		200,592,000		360,000		362,535		2,535		—
CLP	HSB	08/13/14		71,057,600		128,518		127,928		—		590
CLP	JPM	07/07/14		726,045,770		1,320,804		1,312,200		—		8,604
CLP	SCB	07/07/14		140,143,875		254,691		253,285		—		1,406
CLP	SCB	07/07/14		491,700,000		880,000		888,661		8,661		—
CNH	JPM	07/07/14		12,328,470		1,980,000		1,985,648		5,648		—
CNH	JPM	08/13/14		6,206,513		992,518		997,008		4,490		—
CNH	UBS	07/07/14		3,549,390		570,275		571,672		1,397		—
CNH	UBS	07/07/14		11,905,718		1,912,534		1,917,559		5,025		—
CNH	UBS	08/13/14		3,549,390		567,839		570,171		2,332		—
COP	BRC	07/24/14		687,776,421		364,482		366,027		1,545		—
COP	HSB	07/28/14		718,770,000		380,000		382,464		2,464		—
COP	SCB	07/24/14		1,436,625,105		761,037		764,555		3,518		—
COP	SCB	07/28/14		718,580,000		380,000		382,363		2,363		—
COP	UBS	07/24/14		687,776,421		364,482		366,027		1,545		—
CZK	JPM	07/07/14		15,102,725		748,868		753,533		4,665		—
CZK	UBS	07/07/14		15,102,065		746,825		753,500		6,675		—
EUR	JPM	07/07/14		550,000		744,617		753,129		8,512		—
EUR	JPM	07/07/14		560,000		758,604		766,822		8,218		—
EUR	JPM	08/08/14		373,544		510,000		511,565		1,565		—
EUR	SCB	07/07/14		550,000		747,175		753,129		5,954		—
EUR	SCB	07/07/14		654,282		889,824		895,926		6,102		—
EUR	SCB	08/08/14		373,572		510,000		511,603		1,603		—
EUR	UBS	08/08/14		373,572		510,000		511,603		1,603		—
HUF	BRC	07/09/14		91,338,000		410,835		403,722		—		7,113
HUF	JPM	07/09/14		45,667,500		205,411		201,855		—		3,556
HUF	SCB	07/09/14		200,094,250		890,000		884,435		—		5,565

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

Semi-Annual Report  65

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (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)
IDR	BRC	07/02/14		3,936,900,000	$	330,000	$	332,088	$	2,088	$	—
IDR	BRC	07/23/14		4,488,750,000		375,000		377,251		2,251		—
IDR	BRC	08/08/14		3,936,900,000		326,308		329,915		3,607		—
IDR	CIT	07/07/14		3,070,000,000		261,054		258,736		—		2,318
IDR	CIT	07/07/14		4,094,750,000		340,803		345,100		4,297		—
IDR	HSB	07/02/14		3,930,300,000		330,000		331,531		1,531		—
IDR	JPM	07/02/14		3,931,950,000		330,000		331,670		1,670		—
IDR	JPM	09/11/14		17,850,000,000		1,500,000		1,485,841		—		14,159
IDR	SCB	07/07/14		5,902,225,000		501,463		497,432		—		4,031
IDR	SCB	07/23/14		4,488,750,000		375,000		377,251		2,251		—
IDR	UBS	07/02/14		5,850,600,000		490,000		493,513		3,513		—
IDR	UBS	07/02/14		7,862,250,000		656,884		663,201		6,317		—
IDR	UBS	08/08/14		13,712,850,000		1,134,888		1,149,145		14,257		—
INR	BRC	07/07/14		11,115,800		186,038		184,599		—		1,439
INR	BRC	07/09/14		35,043,600		588,869		581,693		—		7,176
INR	BRC	08/08/14		35,043,600		579,233		577,619		—		1,614
INR	BRC	08/13/14		11,115,800		183,369		183,007		—		362
INR	CIT	07/23/14		33,023,200		545,567		546,357		790		—
INR	JPM	07/07/14		105,529,150		1,766,622		1,752,515		—		14,107
INR	JPM	07/09/14		87,213,060		1,466,012		1,447,660		—		18,352
INR	JPM	07/23/14		22,188,735		366,453		367,105		652		—
INR	JPM	08/08/14		87,213,060		1,442,731		1,437,522		—		5,209
INR	JPM	08/13/14		105,529,150		1,740,544		1,737,399		—		3,145
INR	SCB	07/07/14		25,533,400		430,000		424,031		—		5,969
INR	SCB	07/07/14		27,414,700		458,977		455,274		—		3,703
INR	SCB	07/09/14		9,531,200		160,000		158,209		—		1,791
INR	SCB	07/09/14		34,405,200		581,169		571,096		—		10,073
INR	SCB	07/09/14		37,995,300		638,844		630,688		—		8,156
INR	SCB	07/23/14		71,110,955		1,174,320		1,176,506		2,186		—
INR	SCB	08/08/14		81,931,700		1,355,139		1,350,469		—		4,670
INR	SCB	08/13/14		52,948,100		873,587		871,721		—		1,866
INR	UBS	07/07/14		25,082,400		420,000		416,542		—		3,458
INR	UBS	07/07/14		26,006,400		435,180		431,886		—		3,294
INR	UBS	07/23/14		24,795,700		409,373		410,237		864		—
INR	UBS	08/13/14		51,088,800		842,910		841,110		—		1,800
KRW	JPM	07/07/14		1,128,644,258		1,108,035		1,115,273		7,238		—
KRW	SCB	07/07/14		893,396,407		876,997		882,812		5,815		—
KRW	UBS	07/07/14		893,396,407		877,134		882,812		5,678		—
MXN	BRC	07/09/14		4,844,371		373,097		373,222		125		—
MXN	HSB	07/07/14		7,487,979		580,014		576,973		—		3,041
MXN	HSB	07/07/14		15,666,938		1,203,298		1,207,188		3,890		—
MXN	JPM	07/07/14		132,286		10,124		10,193		69		—

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

66  Semi-Annual Report

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (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)
MXN	SCB	07/07/14		21,782,802	$	1,687,177	$	1,678,435	$	—	$	8,742
MYR	BRC	07/18/14		1,063,260		330,000		330,746		746		—
MYR	HSB	07/07/14		2,242,450		700,000		698,111		—		1,889
MYR	HSB	07/18/14		2,706,900		840,000		842,029		2,029		—
MYR	HSB	08/13/14		2,242,450		694,773		696,157		1,384		—
MYR	JPM	07/07/14		3,558,989		1,099,183		1,107,972		8,789		—
MYR	JPM	07/18/14		4,828,500		1,500,000		1,501,991		1,991		—
MYR	JPM	08/13/14		3,558,989		1,103,220		1,104,870		1,650		—
MYR	SCB	07/07/14		417,589		128,798		130,002		1,204		—
MYR	SCB	07/07/14		876,007		270,749		272,716		1,967		—
MYR	SCB	07/09/14		208,717		64,399		64,968		569		—
MYR	SCB	07/09/14		417,589		129,477		129,983		506		—
MYR	SCB	07/18/14		1,063,260		330,000		330,746		746		—
MYR	SCB	07/18/14		5,453,630		1,690,000		1,696,449		6,449		—
MYR	SCB	08/08/14		626,306		194,674		194,517		—		157
MYR	SCB	08/13/14		876,007		271,529		271,952		423		—
PEN	HSB	07/07/14		2,098,620		752,274		749,503		—		2,771
PEN	JPM	07/07/14		1,901,640		680,859		679,153		—		1,706
PHP	BRC	07/07/14		17,933,400		408,599		410,797		2,198		—
PHP	BRC	07/17/14		14,473,800		330,000		331,484		1,484		—
PHP	BRC	08/13/14		17,933,400		408,831		410,504		1,673		—
PHP	CIT	07/07/14		17,929,755		408,702		410,714		2,012		—
PHP	CIT	08/13/14		17,929,755		408,609		410,421		1,812		—
PHP	JPM	07/03/14		16,595,000		377,717		380,168		2,451		—
PHP	JPM	07/17/14		27,641,346		629,930		633,051		3,121		—
PHP	SCB	07/07/14		17,933,400		408,413		410,797		2,384		—
PHP	SCB	07/07/14		20,184,800		460,000		462,369		2,369		—
PHP	SCB	07/17/14		14,473,800		330,000		331,484		1,484		—
PHP	SCB	07/17/14		19,080,626		435,035		436,991		1,956		—
PHP	SCB	08/13/14		36,805,850		838,784		842,504		3,720		—
PHP	UBS	07/07/14		24,580,950		559,676		563,072		3,396		—
PHP	UBS	07/17/14		19,089,327		435,035		437,190		2,155		—
PHP	UBS	07/17/14		36,846,600		840,000		843,873		3,873		—
PHP	UBS	08/13/14		24,580,950		559,994		562,670		2,676		—
PLN	BRC	07/09/14		1,513,663		497,000		498,198		1,198		—
PLN	JPM	07/07/14		1,310,000		427,546		431,221		3,675		—
PLN	JPM	07/09/14		1,149,675		375,000		378,397		3,397		—
PLN	JPM	07/09/14		1,513,564		497,000		498,165		1,165		—
PLN	SCB	07/09/14		1,513,614		497,000		498,181		1,181		—
PLN	SCB	07/09/14		2,298,938		750,000		756,658		6,658		—
PLN	UBS	07/07/14		1,310,000		427,546		431,221		3,675		—
PLN	UBS	07/07/14		1,371,108		447,343		451,336		3,993		—

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

Semi-Annual Report  67

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (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	UBS	07/09/14		1,150,088	$	375,000	$	378,533	$	3,533	$	—
PLN	UBS	07/09/14		4,517,975		1,505,139		1,487,018		—		18,121
RON	HSB	07/01/14		1,068,952		332,024		333,828		1,804		—
RON	UBS	07/07/14		101,033		31,185		31,545		360		—
RON	UBS	07/07/14		4,168,132		1,290,403		1,301,373		10,970		—
RUB	HSB	07/07/14		16,309,165		472,435		479,509		7,074		—
RUB	HSB	07/09/14		12,948,750		375,000		380,542		5,542		—
RUB	HSB	07/09/14		12,962,250		375,000		380,939		5,939		—
RUB	HSB	08/13/14		19,637,343		575,994		572,533		—		3,461
RUB	JPM	07/07/14		16,313,181		472,435		479,627		7,192		—
RUB	JPM	07/09/14		11,165,167		322,972		328,125		5,153		—
RUB	JPM	07/09/14		11,484,000		330,000		337,495		7,495		—
RUB	JPM	07/09/14		11,520,300		330,000		338,562		8,562		—
RUB	JPM	07/09/14		12,984,375		375,000		381,589		6,589		—
RUB	SCB	07/07/14		16,315,543		472,435		479,696		7,261		—
RUB	SCB	07/09/14		11,165,167		322,926		328,125		5,199		—
RUB	SCB	07/09/14		12,950,625		375,000		380,597		5,597		—
RUB	UBS	07/07/14		16,317,905		472,435		479,766		7,331		—
THB	HSB	07/07/14		36,025,050		1,110,000		1,109,795		—		205
THB	HSB	07/07/14		42,920,600		1,323,076		1,322,220		—		856
THB	HSB	07/09/14		16,210,000		499,537		499,322		—		215
THB	JPM	07/07/14		3,762,829		115,994		115,919		—		75
THB	JPM	07/07/14		14,061,391		434,329		433,178		—		1,151
THB	JPM	07/07/14		14,280,200		440,000		439,919		—		81
THB	JPM	07/09/14		12,647,920		389,646		389,598		—		48
THB	SCB	07/07/14		14,065,734		434,329		433,312		—		1,017
THB	SCB	07/07/14		16,985,800		520,000		523,268		3,268		—
THB	SCB	07/09/14		20,428,000		629,522		629,251		—		271
THB	SCB	08/13/14		8,444,574		259,873		259,704		—		169
THB	UBS	07/07/14		14,070,077		434,329		433,446		—		883
THB	UBS	08/13/14		14,070,077		432,659		432,710		51		—
TRY	BRC	08/13/14		1,597,928		743,568		747,586		4,018		—
TRY	HSB	07/09/14		533,025		250,000		251,172		1,172		—
TRY	HSB	07/09/14		795,278		370,000		374,751		4,751		—
TRY	JPM	07/07/14		799,028		375,000		376,676		1,676		—
TRY	JPM	07/09/14		534,000		250,000		251,632		1,632		—
TRY	JPM	07/09/14		1,601,325		750,000		754,577		4,577		—
TRY	JPM	07/09/14		1,890,680		880,000		890,927		10,927		—
TRY	SCB	07/07/14		798,900		375,000		376,616		1,616		—
TRY	SCB	07/09/14		534,000		250,000		251,632		1,632		—
TRY	SCB	07/09/14		1,601,550		750,000		754,683		4,683		—
TRY	SCB	07/09/14		1,611,788		750,000		759,507		9,507		—

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

68  Semi-Annual Report

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (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)
TRY	UBS	07/09/14		537,475	$	250,000	$	253,269	$	3,269	$	—
TWD	JPM	07/07/14		14,550,000		485,000		487,330		2,330		—
TWD	JPM	07/09/14		30,286,875		1,011,924		1,014,433		2,509		—
TWD	SCB	07/09/14		30,299,000		1,012,328		1,014,838		2,510		—
TWD	UBS	07/07/14		14,550,000		485,000		487,330		2,330		—
TWD	UBS	07/09/14		29,112,125		972,875		975,085		2,210		—
UYU	JPM	07/11/14		9,370,550		404,295		409,266		4,971		—
ZAR	HSB	07/09/14		4,047,057		380,000		380,099		99		—
ZAR	SCB	07/01/14		336,258		31,544		31,618		74		—
ZAR	SCB	07/09/14		4,038,640		379,023		379,309		286		—
ZAR	UBS	07/09/14		16,013,700		1,500,000		1,504,006		4,006		—
ZAR	UBS	07/09/14		31,072,269		2,911,297		2,918,306		7,009		—
Total Forward Currency Purchase Contracts					$	122,770,525	$	123,353,354	$	790,672	$	207,843
Forward Currency Sale Contracts
AUD	UBS	07/07/14		64,174	$	60,000	$	60,491	$	—	$	491
AUD	UBS	07/07/14		1,298,051		1,208,777		1,223,558		—		14,781
AUD	UBS	08/13/14		1,362,225		1,274,825		1,280,669		—		5,844
BRL	BRC	07/02/14		263,046		119,566		119,052		514		—
BRL	BRC	07/02/14		3,628,993		1,610,845		1,642,450		—		31,605
BRL	CIT	07/02/14		5,609,560		2,546,906		2,538,837		8,069		—
BRL	HSB	07/02/14		1,843,807		819,161		834,491		—		15,330
BRL	HSB	07/02/14		3,764,533		1,709,209		1,703,794		5,415		—
BRL	HSB	07/07/14		1,398,760		626,264		632,163		—		5,899
BRL	JPM	07/02/14		1,822,115		806,835		824,673		—		17,838
BRL	JPM	07/02/14		3,787,445		1,719,612		1,714,164		5,448		—
BRL	JPM	07/07/14		1,398,448		626,265		632,022		—		5,757
BRL	SCB	07/02/14		10,988,619		4,864,589		4,973,351		—		108,762
BRL	SCB	07/07/14		1,398,760		626,404		632,163		—		5,759
CAD	BRC	07/09/14		1,364,115		1,249,052		1,278,181		—		29,129
CAD	BRC	07/09/14		1,364,115		1,249,292		1,278,181		—		28,889
CAD	JPM	07/09/14		1,364,115		1,249,155		1,278,181		—		29,026
CAD	UBS	07/07/14		487,574		445,741		456,881		—		11,140
CAD	UBS	08/13/14		487,574		453,355		456,470		—		3,115
CLP	HSB	07/07/14		71,057,600		129,078		128,424		654		—
CLP	HSB	07/07/14		129,534,400		233,986		234,111		—		125
CLP	HSB	07/23/14		102,141,701		181,747		184,295		—		2,548
CLP	JPM	07/07/14		307,053,750		555,000		554,945		55		—
CLP	JPM	07/07/14		418,992,020		756,235		757,254		—		1,019
CLP	JPM	08/13/14		726,045,770		1,315,419		1,307,132		8,287		—
CLP	SCB	07/07/14		307,109,250		555,000		555,046		—		46
CLP	SCB	07/07/14		324,734,625		586,641		586,901		—		260

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

Semi-Annual Report  69

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (continued):

					US $ Cost		US $
		Expiration	Foreign		on Origination		Current		Unrealized		Unrealized
Currency	Counterparty	Date	Currency Amount		Date		Value		Appreciation		Depreciation
Forward Currency Sale Contracts (continued)
CLP	SCB	07/23/14		498,078,500	$	886,734	$	898,685	$	—	$	11,951
CLP	SCB	08/13/14		140,143,875		253,539		252,307		1,232		—
CLP	UBS	07/23/14		60,500,000		107,868		109,160		—		1,292
CNH	JPM	07/07/14		1,315,020		210,000		211,800		—		1,800
CNH	JPM	07/07/14		4,806,938		767,587		774,215		—		6,628
CNH	JPM	07/07/14		6,206,513		994,953		999,634		—		4,681
CNH	UBS	07/07/14		3,549,390		569,223		571,672		—		2,449
CNH	UBS	07/07/14		11,905,718		1,901,538		1,917,559		—		16,021
CZK	JPM	07/07/14		15,101,350		744,618		753,465		—		8,847
CZK	SCB	07/07/14		12,375		614		617		—		3
CZK	SCB	07/07/14		15,091,065		747,175		752,951		—		5,776
EUR	BRC	07/09/14		251,188		340,000		343,960		—		3,960
EUR	BRC	07/09/14		300,000		410,835		410,801		34		—
EUR	JPM	07/07/14		550,000		748,868		753,129		—		4,261
EUR	JPM	07/09/14		150,000		205,411		205,401		10		—
EUR	JPM	07/09/14		553,751		750,000		758,271		—		8,271
EUR	JPM	07/09/14		1,096,385		1,485,613		1,501,320		—		15,707
EUR	SCB	07/07/14		274,941		375,000		376,484		—		1,484
EUR	SCB	07/07/14		664,399		900,000		909,779		—		9,779
EUR	SCB	07/09/14		553,828		750,000		758,377		—		8,377
EUR	SCB	08/13/14		654,282		889,945		896,051		—		6,106
EUR	UBS	07/07/14		274,943		375,000		376,486		—		1,486
EUR	UBS	07/07/14		550,000		746,825		753,130		—		6,305
EUR	UBS	07/09/14		1,096,385		1,485,289		1,501,320		—		16,031
EUR	UBS	07/09/14		1,096,385		1,485,394		1,501,320		—		15,926
EUR	UBS	07/09/14		1,100,000		1,505,139		1,506,270		—		1,131
HUF	JPM	07/09/14		337,158,091		1,507,593		1,490,270		17,323		—
IDR	BRC	07/02/14		3,936,900,000		327,529		332,088		—		4,559
IDR	CIT	07/07/14		7,164,750,000		604,366		603,837		529		—
IDR	CIT	08/13/14		4,094,750,000		339,110		342,799		—		3,689
IDR	HSB	07/02/14		3,930,300,000		328,373		331,531		—		3,158
IDR	JPM	07/02/14		3,931,950,000		328,511		331,670		—		3,159
IDR	SCB	07/07/14		1,186,000,000		100,000		99,955		45		—
IDR	SCB	07/07/14		4,716,225,000		397,692		397,478		214		—
IDR	UBS	07/02/14		13,712,850,000		1,139,130		1,156,714		—		17,584
INR	BRC	07/07/14		11,115,800		184,341		184,599		—		258
INR	BRC	07/09/14		35,043,600		581,733		581,693		40		—
INR	JPM	07/07/14		105,529,150		1,750,069		1,752,515		—		2,446
INR	JPM	07/09/14		87,213,060		1,448,722		1,447,660		1,062		—
INR	SCB	07/07/14		52,948,100		878,223		879,305		—		1,082
INR	SCB	07/09/14		81,931,700		1,360,992		1,359,994		998		—
INR	UBS	07/07/14		51,088,800		847,103		848,428		—		1,325

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

70  Semi-Annual Report

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (continued):

					US $ Cost		US $
		Expiration	Foreign		on Origination		Current		Unrealized		Unrealized
Currency	Counterparty	Date	Currency Amount		Date		Value		Appreciation		Depreciation
Forward Currency Sale Contracts (continued)
KRW	JPM	07/07/14		443,167,258	$	434,329	$	437,917	$	—	$	3,588
KRW	JPM	07/07/14		685,477,000		670,000		677,356		—		7,356
KRW	JPM	08/13/14		1,128,644,258		1,106,189		1,113,696		—		7,507
KRW	SCB	07/07/14		443,232,408		434,328		437,981		—		3,653
KRW	SCB	07/07/14		450,164,000		440,000		444,831		—		4,831
KRW	SCB	08/13/14		893,396,407		875,535		881,563		—		6,028
KRW	UBS	07/07/14		443,232,408		434,328		437,981		—		3,653
KRW	UBS	07/07/14		450,164,000		440,000		444,831		—		4,831
KRW	UBS	08/13/14		893,396,407		875,716		881,564		—		5,848
MXN	BRC	08/08/14		4,844,371		372,317		372,445		—		128
MXN	HSB	07/07/14		7,300,160		560,000		562,501		—		2,501
MXN	HSB	08/13/14		15,666,938		1,200,495		1,204,111		—		3,616
MXN	JPM	07/07/14		4,886,550		375,000		376,524		—		1,524
MXN	JPM	07/07/14		5,096,715		390,000		392,718		—		2,718
MXN	SCB	07/07/14		4,853,213		375,000		373,956		1,044		—
MXN	SCB	07/07/14		4,886,063		375,000		376,487		—		1,487
MXN	SCB	07/07/14		5,894,325		450,000		454,177		—		4,177
MXN	SCB	07/07/14		7,300,104		560,000		562,496		—		2,496
MXN	UBS	07/07/14		4,852,875		375,000		373,930		1,070		—
MXN	UBS	07/09/14		4,844,371		371,997		373,222		—		1,225
MYR	HSB	07/07/14		2,242,450		696,089		698,112		—		2,023
MYR	JPM	07/07/14		3,558,989		1,105,277		1,107,972		—		2,695
MYR	SCB	07/07/14		417,589		129,485		130,002		—		517
MYR	SCB	07/07/14		876,007		272,035		272,715		—		680
MYR	SCB	07/09/14		626,306		194,929		194,951		—		22
MYR	UBS	07/18/14		1,249,250		388,249		388,601		—		352
PEN	CIT	08/08/14		282,001		100,142		100,369		—		227
PEN	HSB	07/07/14		965,138		345,000		344,690		310		—
PEN	HSB	07/07/14		1,048,688		375,000		374,529		471		—
PEN	HSB	08/08/14		567,225		201,429		201,886		—		457
PEN	JPM	08/08/14		849,327		301,629		302,292		—		663
PEN	SCB	07/07/14		965,310		345,000		344,752		248		—
PEN	SCB	07/07/14		1,049,250		375,000		374,730		270		—
PEN	SCB	08/08/14		8,706,625		3,090,196		3,098,858		—		8,662
PHP	BRC	07/07/14		17,933,400		408,971		410,797		—		1,826
PHP	CIT	07/07/14		17,929,755		408,702		410,714		—		2,012
PHP	JPM	07/03/14		16,595,000		377,416		380,168		—		2,752
PHP	SCB	07/07/14		1,312,350		30,000		30,062		—		62
PHP	SCB	07/07/14		36,805,850		839,167		843,105		—		3,938
PHP	UBS	07/07/14		24,580,950		560,186		563,072		—		2,886
PLN	UBS	07/07/14		45,559		15,000		14,997		3		—
PLN	UBS	07/07/14		3,945,549		1,300,659		1,298,782		1,877		—

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

Semi-Annual Report  71

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at June 30, 2014 (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)
RON	HSB	08/08/14		1,068,952	$	331,427	$	333,247	$	—	$	1,820
RON	JPM	07/07/14		1,809,701		557,947		565,024		—		7,077
RON	JPM	07/07/14		2,459,464		758,604		767,893		—		9,289
RUB	HSB	07/07/14		19,637,343		580,815		577,361		3,454		—
RUB	JPM	07/07/14		14,979,050		430,000		440,402		—		10,402
RUB	JPM	07/07/14		15,312,000		440,000		450,191		—		10,191
RUB	JPM	07/09/14		97,203,697		2,814,724		2,856,652		—		41,928
RUB	UBS	07/07/14		15,327,400		440,000		450,644		—		10,644
THB	HSB	07/07/14		78,945,650		2,416,235		2,432,015		—		15,780
THB	HSB	07/09/14		16,210,000		499,261		499,323		—		62
THB	HSB	08/08/14		16,210,000		498,923		498,633		290		—
THB	HSB	08/13/14		42,920,600		1,320,674		1,319,975		699		—
THB	JPM	07/07/14		9,494,680		290,508		292,495		—		1,987
THB	JPM	07/07/14		22,609,740		695,000		696,520		—		1,520
THB	JPM	07/09/14		12,647,920		389,646		389,598		48		—
THB	JPM	08/08/14		12,647,920		389,251		389,061		190		—
THB	JPM	08/13/14		3,762,829		115,786		115,721		65		—
THB	SCB	07/07/14		8,444,574		260,233		260,145		88		—
THB	SCB	07/07/14		22,606,960		695,000		696,435		—		1,435
THB	SCB	07/09/14		20,428,000		629,309		629,251		58		—
THB	SCB	08/08/14		20,428,000		628,747		628,382		365		—
THB	UBS	07/07/14		14,070,077		433,325		433,445		—		120
TRY	BRC	07/07/14		1,597,928		749,216		753,291		—		4,075
TRY	BRC	07/09/14		1,630,922		760,000		768,524		—		8,524
TWD	JPM	07/07/14		14,550,000		485,000		487,330		—		2,330
TWD	JPM	07/09/14		14,550,000		485,000		487,339		—		2,339
TWD	JPM	07/09/14		15,736,875		525,000		527,093		—		2,093
TWD	JPM	08/13/14		30,286,875		1,012,871		1,014,792		—		1,921
TWD	SCB	07/09/14		14,562,125		485,000		487,746		—		2,746
TWD	SCB	07/09/14		15,736,875		525,000		527,093		—		2,093
TWD	SCB	08/13/14		30,299,000		1,013,175		1,015,198		—		2,023
TWD	UBS	07/07/14		14,550,000		485,000		487,330		—		2,330
TWD	UBS	07/09/14		14,550,000		485,006		487,339		—		2,333
TWD	UBS	07/09/14		14,562,125		485,000		487,746		—		2,746
TWD	UBS	08/13/14		29,112,125		973,689		975,431		—		1,742
ZAR	SCB	07/09/14		288,320		27,070		27,079		—		9
ZAR	SCB	07/09/14		336,258		31,502		31,581		—		79
ZAR	UBS	07/09/14		31,072,269		2,877,755		2,918,306		—		40,551
Total Forward Currency Sale Contracts					$	109,335,108	$	110,074,654		60,479		800,025
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts									$	851,151	$	1,007,868

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

72  Semi-Annual Report

Lazard Explorer Total Return Portfolio (concluded)

Credit Default Swap Agreements open at June 30, 2014:

									Upfront
Referenced		Notional		Expiration	Receive				Premiums Paid			Unrealized		Unrealized
Obligation	Counterparty	Amount		Date	(Pay) Rate	Value			(Received)			Appreciation		Depreciation
Markit CDS EM20 Series 9PA	BRC		500,000	06/20/19	(5.00%)	$	(59,685	)	$	(51,850	)	$	—	$	7,835
Markit CDS EM20 Series 9PA	JPM		1,000,000	06/20/19	(5.00%)		(120,898	)		(98,000	)		—		22,898
Markit CDS EM20 Series 9PA	JPM		800,000	06/20/19	(5.00%)		(95,497	)		(82,960	)		—		12,537
Markit CDS EM20 Series 9PA	BRC		1,900,000	06/20/19	(5.00%)		(226,804	)		(192,850	)		—		33,954
Markit CDS EM20 Series 9PA	JPM		2,750,000	06/20/19	(5.00%)		(328,269	)		(291,500	)		—		36,769
Markit CDS EM20 Series 9PA	BRC		1,000,000	06/20/19	(5.00%)		(120,898	)		(99,500	)		—		21,398
Markit CDS EM20 Series 9PA	JPM		225,000	06/20/19	(5.00%)		(26,858	)		(24,608	)		—		2,250
Markit CDS EM20 Series 9PA	BRC		2,450,000	06/20/19	(5.00%)		(292,458	)		(245,490	)		—		46,968
Markit CDS EM20 Series 9PA	BRC		4,675,000	06/20/19	(5.00%)		(558,058	)		(462,825	)		—		95,233
Markit CDS EM20 Series 9PA	JPM		2,450,000	06/20/19	(5.00%)		(292,458	)		(260,190	)		—		32,268
Markit CDS EM20 Series 9PA	JPM		3,400,000	06/20/19	(5.00%)		(405,860	)		(367,200	)		—		38,660
People’s Republic of China	BRC		160,000	06/20/19	(1.00%)		(2,119	)		(159	)		—		1,960
People’s Republic of China	JPM		2,200,000	06/20/19	(1.00%)		(29,133	)		(1,228	)		—		27,905
People’s Republic of China	JPM		5,650,000	06/20/19	(1.00%)		(74,819	)		8,043			—		82,862
People’s Republic of China	JPM		1,500,000	06/20/19	(1.00%)		(19,863	)		(5,888	)		—		13,975
People’s Republic of China	JPM		150,000	06/20/19	(1.00%)		(1,986	)		(737	)		—		1,249
Republic of Brazil	JPM		2,150,000	09/20/19	(1.00%)		46,737			42,063			4,674		—
Republic of Brazil	BRC		9,010,000	09/20/19	(1.00%)		195,862			176,272			19,590		—
Republic of Turkey	JPM		1,300,000	06/20/19	(1.00%)		42,678			68,497			—		25,819
Republic of Turkey	JPM		1,008,000	06/20/19	(1.00%)		33,092			68,085			—		34,993
Republic of Turkey	JPM		1,810,000	06/20/19	(1.00%)		59,421			96,379			—		36,958
Republic of Turkey	JPM		1,500,000	06/20/19	(1.00%)		49,244			56,342			—		7,098
Republic of Turkey	JPM		1,360,000	06/20/19	(1.00%)		44,648			96,109			—		51,461
Republic of Turkey	JPM		3,100,000	06/20/19	(1.00%)		101,771			156,735			—		54,964
Republic of Turkey	BRC		1,090,000	06/20/19	(1.00%)		35,784			54,945			—		19,161
Total Credit Default Swap Agreements						$	(2,046,426	)	$	(1,361,515	)	$	24,264	$	709,175

Interest Rate Swap Agreements open at June 30, 2014:

		Notional		Expiration	Receive	Variable	Unrealized		Unrealized
Currency	Counterparty	Amount		Date	(Pay) Rate	Rate	Appreciation		Depreciation
BRL	BRC		1,200,000	01/04/16	12.17%	Brazil Cetip Interbank Deposit Rate	$	10,545	$	—
BRL	BRC		466,000	01/04/16	12.22%	Brazil Cetip Interbank Deposit Rate		4,266		—
ZAR	BRC		5,256,000	01/10/17	6.60%	South Africa Johannesburg Interbank Agreed Rate 3 Month		—		4,402
ZAR	BRC		2,000,000	09/17/18	7.12%	South Africa Johannesburg Interbank Agreed Rate 3 Month		—		1,854
ZAR	BRC		3,500,000	09/19/18	6.79%	South Africa Johannesburg Interbank Agreed Rate 3 Month		—		7,165
Gross unrealized appreciation/depreciation on Interest Rate Swap Agreements								14,811		13,421
Gross unrealized appreciation/depreciation on Swap Agreements							$	39,075	$	722,596

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

Semi-Annual Report  73

   The Lazard Funds, Inc. Notes to Portfolios of Investments June 30, 2014 (unaudited)

(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 June 30, 2014. The percentage of net assets for each Portfolio is as follows:

	Percentage of
Portfolio	Net Assets
Emerging Markets Equity		1.8	%
Emerging Markets Core Equity		1.5
Emerging Markets Equity Blend		0.9
Emerging Markets Multi Asset		5.5
Emerging Markets Debt		10.0
Explorer Total Return		18.9

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

			Aggregate Gross		Aggregate Gross
	Aggregate		Unrealized		Unrealized		Net Unrealized
Portfolio	Cost		Appreciation		Depreciation		Appreciation
Emerging Markets Equity	$	13,668,279,238	$	2,807,804,687	$	849,481,125	$	1,958,323,562
Emerging Markets Core Equity		27,364,326		2,620,144		329,799		2,290,345
Developing Markets Equity		522,534,667		67,502,261		37,399,754		30,102,507
Emerging Markets Equity Blend		663,347,890		76,922,023		28,423,790		48,498,233
Emerging Markets Multi Asset		263,237,045		16,476,673		9,705,048		6,771,625
Emerging Markets Debt		283,389,330		7,760,355		7,102,308		658,047
Emerging Markets Income		4,905,385		19,046		4,431		14,615
Explorer Total Return		147,309,944		2,994,347		255,601		2,738,746

(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 June 30, 2014 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.

74  Semi-Annual Report

Security Abbreviations:
ADR	—  American Depositary Receipt
GDR	—  Global Depositary Receipt
NTN	—  Letra do Tesouro Nacional
NTN-B	—  Brazil Sovereign “Nota do Tesouro Nacional” Series B
NTN-F	—  Brazil Sovereign “Nota do Tesouro Nacional” Series F
SDR	—  Swedish Depositary Receipt
Counterparty Abbreviations:
AMD	—  Armenian Dram	MYR	—  Malaysian Ringgit
AUD	—  Australian Dollar	NGN	—  Nigerian Naira
BRL	—  Brazilian Real	PEN	—  Peruvian Nuevo Sol
CAD	—  Canadian Dollar	PHP	—  Philippine Peso
CLP	—  Chilean Peso	PLN	—  Polish Zloty
CNH	—  Yuan Renminbi	RON	—  New Romanian Leu
CNY	—  Chinese Renminbi	RSD	—  Serbian Dinar
COP	—  Colombian Peso	RUB	—  Russian Ruble
CZK	—  Czech Koruna	SGD	—  Singapore Dollar
EUR	—  Euro	THB	—  Thai Baht
HUF	—  Hungarian Forint	TRY	—  New Turkish Lira
IDR	—  Indonesian Rupiah	TWD	—  Taiwan Dollar
ILS	—  Israeli Shekel	UAH	—  Ukraine Hryvnia
INR	—  Indian Rupee	UGX	—  Ugandan Shilling
JPY	—  Japanese Yen	USD	—  United States Dollar
KES	—  Kenya Shilling	UYU	—  Uruguayan Peso
KRW	—  South Korean Won	ZAR	—  South African Rand
KZT	—  Kazakhstan Tenge	ZMW	—  Zambian Kwacha
MXN	—  Mexican New Peso
Counterparty Abbreviations:
BNP	—  BNP Paribas SA	HSB	—  HSBC Bank USA
BRC	—  Barclays Bank PLC	JPM	—  JPMorgan Chase Bank
CIT	—  Citibank NA	SCB	—  Standard Chartered Bank
CSF	—  Credit Suisse Group AG	UBS	—  UBS AG

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

Semi-Annual Report  75

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 Asset Portfolio			Lazard Emerging Markets Debt Portfolio
Agricultural		—	%		0.9	%		—	%		—	%		—	%		—	%
Alcohol & Tobacco		4.2			1.1			—			2.3			1.4			—
Apparel & Textiles		—			1.0			—			—			—			—
Auto Components		—			—			1.2			—			—			—
Automotive		0.8			3.7			3.5			1.5			1.0			0.5
Banking		20.8			19.5			19.3			19.5			13.0			2.7
Building Materials		—			0.6			3.5			0.4			0.3			—
Cable Television		—			1.1			—			0.5			0.3			—
Chemicals		0.8			—			—			—			—			—
Commercial Services		3.9			0.7			0.7			1.9			1.1			—
Computer Software		3.3			2.5			2.2			4.3			2.8			0.3
Construction & Engineering		—			—			1.9			1.3			0.8			0.1
Consumer Products		—			2.4			2.2			0.9			0.6			—
Diamonds & Precious Stones		—			—			—			—			0.1			0.3
Diversified		1.5			1.2			—			1.4			0.9			—
Electric		0.8			—			0.7			—			0.1			1.0
Energy Exploration & Production		6.6			2.7			3.6			3.8			2.8			1.0
Energy Integrated		4.8			1.1			6.9			7.8			5.9			2.9
Energy Services		0.5			1.0			3.9			1.0			1.6			1.7
Financial Services		3.0			1.0			2.8			2.7			2.0			1.2
Food & Beverages		0.7			2.2			—			0.6			0.6			0.3
Forest & Paper Products		0.7			2.0			—			1.1			0.7			0.2
Gas Utilities		—			1.0			—			—			0.1			0.4
Health Services		—			1.0			—			—			—			—
Household & Personal Products		2.6			—			—			1.3			0.8			—
Housing		1.3			4.9			—			1.6			1.0			—
Insurance		3.3			1.0			2.3			2.4			1.5			—
Leisure & Entertainment		1.2			4.7			7.4			5.3			3.3			0.5
Manufacturing		3.9			2.5			7.7			6.3			3.9			—
Media		—			—			—			—			0.2			0.5
Medical Products		—			1.1			—			—			—			—
Metals & Mining		2.6			—			3.5			1.1			0.9			0.8
Pharmaceutical & Biotechnology		—			3.3			4.9			1.2			0.7			—
Power Generation		—			—			—			—			—			0.1
Real Estate		—			1.2			2.6			2.4			1.5			0.6
Retail		4.8			7.9			2.9			3.5			2.3			0.3
Semiconductors & Components		7.9			16.1			11.1			9.8			6.0			—
Technology		1.9			—			—			—			—			—
Technology Hardware		1.3			2.3			—			1.8			1.1			—
Telecommunications		10.1			4.3			—			6.0			4.0			1.2
Transportation		2.6			2.3			3.5			2.7			1.7			1.1
Subtotal		95.9			98.3			98.3			96.4			65.0			17.7
Foreign Government Obligations		—			—			—			—			11.6			75.7
Short-Term Investments		3.1			0.3			1.8			3.1			21.2			5.6
Total Investments		99.0	%		98.6	%		100.1	%		99.5	%		97.8	%		99.0	%

* Industry classifications may be different than those used for compliance monitoring purposes.

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

76  Semi-Annual Report

Industry*	Lazard Emerging Markets Income Portfolio			Lazard Explorer Total Return Portfolio
Automotive		—	%		0.4	%
Banking		—			4.7
Cable Television		—			0.1
Computer Software		—			0.3
Construction & Engineering		—			0.2
Diamonds & Precious Stones		—			0.5
Electric		—			0.5
Energy Exploration & Production		—			2.0
Energy Integrated		—			4.9
Energy Services		—			3.4
Financial Services		—			1.7
Food & Beverages		—			0.9
Gas Utilities		—			0.6
Leisure & Entertainment		—			0.5
Media		—			0.8
Metals & Mining		—			1.1
Power Generation		—			0.3
Real Estate		—			0.9
Retail		—			0.6
Telecommunications		—			1.3
Transportation		—			0.5
Subtotal		—			26.2
Foreign Government Obligations		38.6			39.8
US Treasury Securities		23.6			—
Short-Term Investments		30.3			31.6
Total Investments		92.5	%		97.6	%

* Industry classifications may be different than those used for compliance monitoring purposes.

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

Semi-Annual Report  77

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

June 30, 2014	Lazard Emerging Markets Equity Portfolio			Lazard Emerging Markets Core Equity Portfolio				Lazard Developing Markets Equity Portfolio
ASSETS
Investments in securities, at value		$	15,626,602,800		$	29,654,671			$	552,637,174
Cash			—			—				—
Cash at other bank			—			—				—
Foreign currency			15,343,111			8,609				354,200
Receivables for:
Capital stock sold			124,406,726			60,900				817,371
Dividends and interest			37,241,163			93,431				1,598,874
Investments sold			16,945,145			2,160,373				—
Amount due from Investment Manager (Note 3)			—			—				—
Gross unrealized appreciation on:
Forward currency contracts			—			—				—
Swap agreements			—			—				—
Deferred offering costs (Note 2(h))			—			32,296				—
Total assets			15,820,538,945			32,010,280				555,407,619
LIABILITIES
Payables for:
Management fees			12,750,431			1,644				455,877
Accrued distribution fees			434,193			235				8,589
Accrued directors’ fees			104,049			40				4,207
Capital stock redeemed			13,544,205			—				1,890,243
Investments purchased			3,700,329			203,662				501,118
Dividends			—			—				—
Gross unrealized depreciation on:
Forward currency contracts			—			—				—
Swap agreements			—			—				—
Line of credit outstanding			—			1,700,000				—
Premium for swap agreements sold			—			—				—
Premium for swap agreements written			—			—				—
Other accrued expenses and payables			6,082,365			24,804				343,423
Total liabilities			36,615,572			1,930,385				3,203,457
Net assets		$	15,783,923,373		$	30,079,895			$	552,204,162
NET ASSETS
Paid in capital		$	13,531,178,272		$	27,713,289			$	599,393,078
Undistributed net investment income (loss)			134,590,425			95,405				2,659,520
Accumulated net realized gain (loss)			163,287,748			(20,250	)			(79,694,373	)
Net unrealized appreciation (depreciation) on:
Investments			1,954,721,704			2,290,345				29,837,749
Foreign currency and forward currency contracts			145,224			1,106				8,188
Swap agreements			—			—				—
Net assets		$	15,783,923,373		$	30,079,895			$	552,204,162
Institutional Shares
Net assets		$	13,674,729,302		$	28,857,563			$	511,180,721
Shares of capital stock outstanding*			670,920,154			2,750,596				41,468,738
Net asset value, offering and redemption price per share		$	20.38		$	10.49			$	12.33
Open Shares
Net assets		$	2,109,194,071		$	1,222,332			$	41,023,441
Shares of capital stock outstanding*			101,029,326			116,728				3,332,598
Net asset value, offering and redemption price per share		$	20.88		$	10.47			$	12.31
Cost of investments in securities		$	13,668,279,238		$	27,364,326			$	522,534,667
Cost of foreign currency		$	15,388,451		$	8,586			$	355,394

* $0.001 par value, 6,300,000,000 shares authorized for the Portfolios in total.

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

78  Semi-Annual Report

Lazard Emerging Markets Equity Blend Portfolio			Lazard Emerging Markets Multi Asset Portfolio			Lazard Emerging Markets Debt Portfolio			Lazard Emerging Markets Income Portfolio			Lazard Explorer Total Return Portfolio
$	711,846,123		$	270,008,670		$	284,047,377		$	4,920,000		$	150,048,690
	—			—			901,520			—			164
	—			1,290,000			—			—			3,060,000
	513,419			2,579,720			3,527,808			384,122			3,500,064
	2,369,004			2,722,360			12,211			—			167,474
	1,971,804			1,735,689			4,914,661			22,192			1,680,897
	2,511,472			635,556			6,074,533			—			384,252
	—			—			—			17,637			—
	—			685,134			357,928			25,518			851,151
	—			23,475			—			—			39,075
	—			—			—			38,634			—
	719,211,822			279,680,604			299,836,038			5,408,103			159,731,767
	584,694			221,841			179,357			—			124,565
	27,716			470			650			38			1,311
	4,219			1,544			3,264			—			293
	306,091			33,666			1,104,203			—			994,976
	2,682,658			276,976			10,982,224			—			246,958
	—			—			9,921			—			6,723
	—			581,744			605,043			11,002			1,007,868
	—			299,719			—			—			722,596
	—			—			—			—			—
	—			288,054			—			—			1,361,515
	—			1,832,817			—			—			1,583,908
	453,237			97,080			73,598			76,500			16,349
	4,058,615			3,633,911			12,958,260			87,540			6,067,062
$	715,153,207		$	276,046,693		$	286,877,778		$	5,320,563		$	153,664,705
$	671,978,587		$	270,616,242		$	306,505,246		$	5,242,800		$	151,078,992
	5,433,257			2,347,477			777,211			(2,042	)		222,918
	(10,580,682	)		(3,484,816	)		(20,861,779	)		50,488			448,163
	48,322,143			6,733,634			658,047			14,615			2,738,746
	(98	)		110,400			(200,947	)		14,702			(140,593	)
	—			(276,244	)		—			—			(683,521	)
$	715,153,207		$	276,046,693		$	286,877,778		$	5,320,563		$	153,664,705
$	578,432,395		$	273,709,838		$	284,604,447		$	5,110,737		$	146,377,439
	49,527,550			28,364,685			28,487,939			503,396			14,538,224
$	11.68		$	9.65		$	9.99		$	10.15		$	10.07
$	136,720,812		$	2,336,855		$	2,273,331		$	209,826		$	7,287,266
	11,735,724			242,195			226,190			20,680			722,378
$	11.65		$	9.65		$	10.05		$	10.15		$	10.09
$	663,347,890		$	263,237,045		$	283,389,330		$	4,905,385		$	147,309,944
$	515,243		$	2,574,086		$	3,507,932		$	384,054		$	3,486,323

Semi-Annual Report  79

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

For the Period Ended June 30, 2014	Lazard Emerging Markets Equity Portfolio			Lazard Emerging Markets Core Equity Portfolio			Lazard Developing Markets Equity Portfolio
Investment Income (Loss)
Income
Dividends	$	225,514,218		$	212,068		$	6,999,607
Interest		—			—			168
Total investment income*		225,514,218			212,068			6,999,775
Expenses
Management fees (Note 3)		71,793,363			88,713			2,683,390
Custodian fees		4,596,373			53,228			274,001
Distribution fees (Open Shares)		2,507,383			1,119			49,297
Administration fees		792,318			26,655			78,463
Shareholders’ reports		597,680			3,739			42,545
Shareholders’ services		577,661			17,053			39,384
Directors’ fees and expenses		193,845			90			7,685
Professional services		169,752			17,882			31,278
Registration fees		50,755			16,347			29,559
Organization expenses		—			—			—
Amortization of offering costs (Note 2(h))		—			47,527			—
Other†		143,093			1,991			7,742
Total gross expenses		81,422,223			274,344			3,243,344
Management fees waived and expenses reimbursed		—			(143,457	)		—
Administration and shareholders’ services fees waived		—			(14,218	)		—
Total net expenses		81,422,223			116,669			3,243,344
Net investment income (loss)		144,091,995			95,399			3,756,431
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Forward Currency Contracts, Options and Swap Agreements
Net realized gain (loss) on:
Investments**		97,750,569			4,654			(11,015,988	)
Foreign currency and forward currency contracts		(1,550,001	)		(15,524	)		(150,188	)
Purchased Options		—			—			—
Written Options		—			—			—
Swap agreements		—			—			—
Total net realized gain (loss) on investments, foreign currency, forward currency contracts, options and swap agreements		96,200,568			(10,870	)		(11,166,176	)
Net change in unrealized appreciation (depreciation) on:
Investments***		1,065,360,418			2,322,713			27,131,217
Foreign currency and forward currency contracts		216,405			1,314			(69,991	)
Purchased Options		—			—			—
Written Options		—			—			—
Swap agreements		—			—			—
Total net change in unrealized appreciation on investments, foreign currency, forward currency contracts, options and swap agreements		1,065,576,823			2,324,027			27,061,226
Net realized and unrealized gain on investments, foreign currency, forward currency contracts, options and swap agreements		1,161,777,391			2,313,157			15,895,050
Net increase in net assets resulting from operations	$	1,305,869,386		$	2,408,556		$	19,651,481
* Net of foreign withholding taxes of	$	29,874,421		$	26,460		$	605,299
** Net of foreign capital gains taxes of	$	—		$	—		$	147,903
*** Includes net change in unrealized foreign capital gains taxes of	$	(3,601,858	)	$	—		$	(233,490	)
† Includes interest on line of credit of	$	100		$	207		$	324

(a) From the Portfolio’s commencement of operations on April 30, 2014.

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

80  Semi-Annual Report

Lazard Emerging Markets Equity Blend Portfolio			Lazard Emerging Markets Multi Asset Portfolio			Lazard Emerging Markets Debt Portfolio			Lazard Emerging Markets Income Portfolio (a)			Lazard Explorer Total Return Portfolio
$	9,962,608		$	2,242,668		$	—		$	—		$	—
	—			1,889,427			10,293,504			5,834			2,232,827
	9,962,608			4,132,095			10,293,504			5,834			2,232,827
	3,145,098			1,221,046			1,286,382			5,629			501,844
	251,899			177,868			162,272			11,951			64,328
	155,945			2,686			4,873			68			6,695
	88,697			49,216			56,955			8,278			34,832
	62,234			7,091			5,123			2,490			2,260
	513,210			13,972			13,964			6,191			13,175
	8,021			3,024			5,606			37			675
	26,374			30,266			28,392			12,151			21,137
	46,317			22,581			18,051			996			22,941
	—			—			—			432			—
	—			—			—			7,752			31,410
	7,617			4,243			7,146			728			2,408
	4,305,414			1,531,993			1,588,764			56,703			701,705
	(29,653	)		(5,393	)		(5,521	)		(41,629	)		(41,274	)
	—			—			—			(7,198	)		—
	4,275,761			1,526,600			1,583,243			7,876			660,431
	5,686,847			2,605,495			8,710,261			(2,042	)		1,572,396
	2,329,908			1,027,971			(10,484,612	)		—			773,065
	(229,260	)		256,058			300,139			50,488			552,207
	—			(208,792	)		—			—			(122,831	)
	—			62,824			—			—			40,430
	—			(904,028	)		(1,285,399	)		—			(731,441	)
	2,100,648			234,033			(11,469,872	)		50,488			511,430
	26,368,850			8,717,232			21,465,694			14,615			2,870,049
	(1,426	)		(12,209	)		99,929			14,702			(166,060	)
	—			22,374			—			—			11,516
	—			(9,268	)		—			—			(4,778	)
	—			(243,558	)		57,579			—			(669,826	)
	26,367,424			8,474,571			21,623,202			29,317			2,040,901
	28,468,072			8,708,604			10,153,330			79,805			2,552,331
$	34,154,919		$	11,314,099		$	18,863,591		$	77,763		$	4,124,727
$	1,064,309		$	236,813		$	49,792		$	—		$	7,430
$	11,777		$	4,465		$	15,041		$	—		$	—
$	(139,313	)	$	(30,546	)	$	—		$	—		$	—
$	—		$	—		$	6,416		$	—		$	—

Semi-Annual Report  81

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

	Lazard Emerging Markets Equity Portfolio						Lazard Emerging Markets Core Equity Portfolio
	Six Months Ended			Year Ended			Six Months Ended			Period Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(unaudited)			2013			(unaudited)			2013 (a)
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	144,091,995		$	273,165,341		$	95,399		$	(3,265	)
Net realized gain (loss) on investments, foreign currency, forward currency contracts, options and swap agreements		96,200,568			531,013,357			(10,870	)		(9,795	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts, options and swap agreements		1,065,576,823			(956,860,842	)		2,324,027			(32,576	)
Net increase (decrease) in net assets resulting from operations		1,305,869,386			(152,682,144	)		2,408,556			(45,636	)
Distributions to shareholders
From net investment income
Institutional Shares		—			(236,363,963	)		—			—
Open Shares		—			(34,411,449	)		—			—
From net realized gains
Institutional Shares		—			(234,585,584	)		—			—
Open Shares		—			(39,932,177	)		—			—
From return of capital
Institutional Shares		—			—			—			—
Open Shares		—			—			—			—
Net decrease in net assets resulting from distributions		—			(545,293,173	)		—			—
Capital stock transactions
Net proceeds from sales
Institutional Shares		1,207,577,335			2,706,382,404			25,265,743			3,306,150
Open Shares		130,308,929			483,346,726			698,638			631,900
Net proceeds from reinvestment of distributions		—			407,264,634			—			—
Open Shares		—			68,063,916			—			—
Cost of shares redeemed
Institutional Shares		(1,363,937,052	)		(3,149,583,032	)		(2,001,450	)		—
Open Shares		(394,203,086	)		(860,419,457	)		(184,207	)		—
Net increase (decrease) in net assets from capital stock transactions		(420,253,874	)		(344,944,809	)		23,778,724			3,938,050
Redemption fees (Note 2(k))
Institutional Shares		33,559			120,271			—			—
Open Shares		15,443			43,929			201			—
Net increase in net assets from redemption fees		49,002			164,200			201			—
Total increase (decrease) in net assets		885,664,514			(1,042,755,926	)		26,187,481			3,892,414
Net assets at beginning of period		14,898,258,859			15,941,014,785			3,892,414			—
Net assets at end of period*	$	15,783,923,373		$	14,898,258,859		$	30,079,895		$	3,892,414
* Includes undistributed (distributions in excess of) net investment income of	$	134,590,425		$	(9,501,570	)	$	95,405		$	6
(a) The Portfolio commenced operations on October 31, 2013.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		679,948,606			681,320,058			332,077			—
Shares sold		65,446,052			141,386,244			2,611,265			332,077
Shares issued to shareholders from reinvestment of distributions		—			21,872,427			—			—
Shares redeemed		(74,474,504	)		(164,630,123	)		(192,746	)		—
Net increase (decrease)		(9,028,452	)		(1,371,452	)		2,418,519			332,077
Shares outstanding at end of period		670,920,154			679,948,606			2,750,596			332,077
Open Shares
Shares outstanding at beginning of period		115,276,325			131,100,773			63,785			—
Shares sold		6,894,410			24,934,405			71,460			63,785
Shares issued to shareholders from reinvestment of distributions		—			3,563,556			—			—
Shares redeemed		(21,141,409	)		(44,322,409	)		(18,517	)		—
Net increase (decrease)		(14,246,999	)		(15,824,448	)		52,943			63,785
Shares outstanding at end of period		101,029,326			115,276,325			116,728			63,785

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

82  Semi-Annual Report

Lazard Developing Markets Equity Portfolio						Lazard Emerging Markets Equity Blend Portfolio						Lazard Emerging Markets Multi Asset Portfolio
Six Months Ended			Year Ended			Six Months Ended			Year Ended			Six Months Ended			Year Ended
June 30, 2014			December 31,			June 30, 2014			December 31,			June 30, 2014			December 31,
(unaudited)			2013			(unaudited)			2013			(unaudited)			2013
$	3,756,431		$	5,654,470		$	5,686,847		$	3,953,374		$	2,605,495		$	2,801,719
	(11,166,176	)		(34,528,149	)		2,100,648			4,223,904			234,033			(448,820	)
	27,061,226			(4,818,260	)		26,367,424			7,112,980			8,474,571			(7,606,368	)
	19,651,481			(33,691,939	)		34,154,919			15,290,258			11,314,099			(5,253,469	)
	—			(4,798,138	)		—			(3,158,179	)		—			(2,402,373	)
	—			(285,615	)		—			(410,880	)		—			(15,930	)
	—			—			—			(2,203,505	)		—			(1,809,888	)
	—			—			—			(546,763	)		—			(18,185	)
	—			—			—			(422,052	)		—			—
	—			—			—			(93,652	)		—			—
	—			(5,083,753	)		—			(6,835,031	)		—			(4,246,376	)
	85,704,028			515,114,543			115,641,921			324,373,920			60,393,021			177,382,688
	6,047,092			38,771,277			23,944,263			95,445,912			414,884			1,691,237
	—			3,537,756			—			5,614,997			—			4,175,631
	—			278,492			—			1,015,931			—			33,777
	(151,548,922	)		(269,124,935	)		(43,776,916	)		(60,435,685	)		(21,246,406	)		(73,799,795	)
	(10,691,677	)		(79,894,455	)		(12,160,904	)		(16,286,690	)		(341,830	)		(350,332	)
	(70,489,479	)		208,682,678			83,648,364			349,728,385			39,219,669			109,133,206
	2,265			5,763			1,464			1,228			63			2,748
	270			3,932			545			3,042			—			45
	2,535			9,695			2,009			4,270			63			2,793
	(50,835,463	)		169,916,681			117,805,292			358,187,882			50,533,831			99,636,154
	603,039,625			433,122,944			597,347,915			239,160,033			225,512,862			125,876,708
$	552,204,162		$	603,039,625		$	715,153,207		$	597,347,915		$	276,046,693		$	225,512,862
$	2,659,520		$	(1,096,911	)	$	5,433,257		$	(253,590	)	$	2,347,477		$	(258,018	)
	47,319,142			27,400,813			42,827,110			17,598,261			24,076,955			12,889,497
	7,605,917			42,879,227			10,770,950			30,159,744			6,612,298			18,526,941
	—			309,847			—			508,158			—			453,554
	(13,456,321	)		(23,270,745	)		(4,070,510	)		(5,439,053	)		(2,324,568	)		(7,793,037	)
	(5,850,404	)		19,918,329			6,700,440			25,228,849			4,287,730			11,187,458
	41,468,738			47,319,142			49,527,550			42,827,110			28,364,685			24,076,955
	3,753,626			7,527,776			10,619,862			3,291,977			235,128			88,344
	524,565			3,255,977			2,223,706			8,715,275			45,003			180,332
	—			24,696			—			92,147			—			3,661
	(945,593	)		(7,054,823	)		(1,107,844	)		(1,479,537	)		(37,936	)		(37,209	)
	(421,028	)		(3,774,150	)		1,115,862			7,327,885			7,067			146,784
	3,332,598			3,753,626			11,735,724			10,619,862			242,195			235,128

Semi-Annual Report  83

	Lazard Emerging Markets Debt Portfolio							Lazard Emerging Markets Income Portfolio
	Six Months Ended				Year Ended			Period Ended
	June 30, 2014				December 31,			June 30, 2014 (a)
	(unaudited)				2013			(unaudited)
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	8,710,261		$	17,700,797		$	(2,042	)
Net realized gain (loss) on investments, foreign currency, forward currency contracts, options and swap agreements			(11,469,872	)		(7,516,682	)		50,488
Net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts, options and swap agreements			21,623,202			(36,766,653	)		29,317
Net increase (decrease) in net assets resulting from operations			18,863,591			(26,582,538	)		77,763
Distributions to shareholders
From net investment income
Institutional Shares			(8,598,769	)		(18,161,914	)		—
Open Shares			(95,292	)		(368,559	)		—
From net realized gains
Institutional Shares			—			(1,415,923	)		—
Open Shares			—			(34,825	)		—
Net decrease in net assets resulting from distributions			(8,694,061	)		(19,981,221	)		—
Capital stock transactions
Net proceeds from sales
Institutional Shares			37,327,100			248,473,336			5,035,100
Open Shares			278,283			16,272,148			207,700
Net proceeds from reinvestment of distributions
Institutional Shares			8,329,852			19,325,779			—
Open Shares			91,564			204,596			—
Cost of shares redeemed
Institutional Shares			(217,408,335	)		(62,619,877	)		—
Open Shares			(7,401,137	)		(6,906,202	)		—
Net increase (decrease) in net assets from capital stock transactions			(178,782,673	)		214,749,780			5,242,800
Redemption fees (Note 2(k))
Institutional Shares			711			1,881			—
Open Shares			2			1,433			—
Net increase in net assets from redemption fees			713			3,314			—
Total increase (decrease) in net assets			(168,612,430	)		168,189,335			5,320,563
Net assets at beginning of period			455,490,208			287,300,873			—
Net assets at end of period*		$	286,877,778		$	455,490,208		$	5,320,563
* Includes undistributed (distributions in excess of) net investment income (loss) of		$	777,211		$	761,011		$	(2,042	)
(a) The Portfolio commenced operations on April 30, 2014.
(b) The Portfolio commenced operations on June 28, 2013.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			46,798,919			26,369,893			—
Shares sold			3,813,228			24,786,865			503,396
Shares issued to shareholders from reinvestment of distributions			863,516			1,940,134
Shares redeemed			(22,987,724	)		(6,297,973	)		—
Net increase (decrease)			(18,310,980	)		20,429,026			503,396
Shares outstanding at end of period			28,487,939			46,798,919			503,396
Open Shares
Shares outstanding at beginning of period			971,317			104,581			—
Shares sold			28,738			1,540,715			20,680
Shares issued to shareholders from reinvestment of distributions			9,527			20,295			—
Shares redeemed			(783,392	)		(694,274	)		—
Net increase (decrease)			(745,127	)		866,736			20,680
Shares outstanding at end of period			226,190			971,317			20,680

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

84  Semi-Annual Report

Lazard Explorer Total Return Portfolio
Six Months Ended			Period Ended
June 30, 2014			December 31,
(unaudited)			2013 (b)
$	1,572,396		$	352,502
	511,430			(16,103	)
	2,040,901			(126,269	)
	4,124,727			210,130
	(1,231,875	)		(437,344	)
	(65,283	)		(14,641	)
	—			—
	—			—
	(1,297,158	)		(451,985	)
	118,372,515			31,641,433
	4,686,112			2,671,855
	1,209,684			437,142
	62,046			14,480
	(7,340,523	)		(401,268	)
	(267,236	)		(7,454	)
	116,722,598			34,356,188
	200			—
	5			—
	205			—
	119,550,372			34,114,333
	34,114,333			—
$	153,664,705		$	34,114,333
$	222,918		$	(52,320	)
	3,190,427			—
	11,963,981			3,186,789
	121,318			44,125
	(737,502	)		(40,487	)
	11,347,797			3,190,427
	14,538,224			3,190,427
	269,801			—
	473,136			269,085
	6,228			1,463
	(26,787	)		(747	)
	452,577			269,801
	722,378			269,801

Semi-Annual Report  85

   The Lazard Funds, Inc. Financial Highlights

LAZARD EMERGING MARKETS EQUITY PORTFOLIO

	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	18.67		$	19.54		$	16.80		$	21.78		$	18.01		$	10.88
Income (loss) from investment operations:
Net investment income (a)		0.19			0.35			0.35			0.49			0.38			0.35
Net realized and unrealized gain (loss)		1.52			(0.51	)		3.39			(4.36	)		3.71			7.24
Total from investment operations		1.71			(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)		—	(b)
Net asset value, end of period	$	20.38		$	18.67		$	19.54		$	16.80		$	21.78		$	18.01
Total Return (c)		9.16	%		–0.80	%		22.36	%		–17.75	%		22.81	%		69.82	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	13,674,729		$	12,691,329		$	13,315,172		$	10,902,557		$	14,561,085		$	8,497,341
Ratios to average net assets (d):
Net expenses		1.10	%		1.09	%		1.10	%		1.12	%		1.14	%		1.15	%
Gross expenses		1.10	%		1.09	%		1.10	%		1.12	%		1.14	%		1.15	%
Net investment income		2.05	%		1.80	%		1.85	%		2.44	%		1.96	%		2.40	%
Portfolio turnover rate		6	%		16	%		23	%		23	%		23	%		49	%
	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of period	$	19.14		$	20.03		$	17.20		$	22.19		$	18.28		$	11.05
Income (loss) from investment operations:
Net investment income (a)		0.17			0.30			0.30			0.49			0.34			0.29
Net realized and unrealized gain (loss)		1.57			(0.53	)		3.47			(4.50	)		3.76			7.35
Total from investment operations		1.74			(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)		—	(b)
Net asset value, end of period	$	20.88		$	19.14		$	20.03		$	17.20		$	22.19		$	18.28
Total Return (c)		9.09	%		–1.14	%		22.03	%		–18.02	%		22.43	%		69.14	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,109,194		$	2,206,930		$	2,625,843		$	2,731,646		$	4,187,207		$	3,478,654
Ratios to average net assets (d):
Net expenses		1.37	%		1.37	%		1.40	%		1.42	%		1.49	%		1.55	%
Gross expenses		1.37	%		1.37	%		1.40	%		1.42	%		1.49	%		1.55	%
Net investment income		1.75	%		1.55	%		1.58	%		2.18	%		1.73	%		1.94	%
Portfolio turnover rate		6	%		16	%		23	%		23	%		23	%		49	%

†	Unaudited.
(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. 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.

86  Semi-Annual Report

LAZARD EMERGING MARKETS CORE EQUITY PORTFOLIO

	Six Months				For the Period
Selected data for a share of capital	Ended				10/31/13* to
stock outstanding throughout each period	6/30/14†				12/31/13
Institutional Shares
Net asset value, beginning of period		$	9.83		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.05			(0.01	)
Net realized and unrealized gain (loss)			0.61			(0.16	)
Total from investment operations			0.66			(0.17	)
Net asset value, end of period		$	10.49		$	9.83
Total Return (b)			6.71	%		–1.70	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	28,858		$	3,265
Ratios to average net assets (c):
Net expenses			1.30	%		1.30	%
Gross expenses			2.95	%		24.66	%
Net investment income (loss)			1.10	%		–0.71	%
Portfolio turnover rate			32	%		12	%
	Six Months				For the Period
Selected data for a share of capital	Ended				10/31/13* to
stock outstanding throughout each period	6/30/14†				12/31/13
Open Shares
Net asset value, beginning of period		$	9.83		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.03			(0.01	)
Net realized and unrealized gain (loss)			0.61			(0.16	)
Total from investment operations			0.64			(0.17	)
Redemption fees			—	(d)		—
Net asset value, end of period		$	10.47		$	9.83
Total Return (b)			6.51	%		–1.70	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	1,222		$	627
Ratios to average net assets (c):
Net expenses			1.60	%		1.60	%
Gross expenses			5.79	%		30.92	%
Net investment income (loss)			0.64	%		–0.90	%
Portfolio turnover rate			32	%		12	%

†	Unaudited.
*	The Portfolio commenced operations on October 31, 2013.
(a)	Net investment income (loss) has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
(c)	Annualized for a period of less than one year.
(d)	Amount is less than $0.01 per share.

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

Semi-Annual Report  87

LAZARD DEVELOPING MARKETS EQUITY PORTFOLIO

	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	11.81		$	12.40		$	10.68		$	15.12		$	13.18		$	6.54
Income (loss) from investment operations:
Net investment income (a)		0.08			0.11			0.09			0.06			0.02			0.01
Net realized and unrealized gain (loss)		0.44			(0.60	)		1.74			(4.00	)		3.63			7.09
Total from investment operations		0.52			(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)		—	(b)
Net asset value, end of period	$	12.33		$	11.81		$	12.40		$	10.68		$	15.12		$	13.18
Total Return (c)		4.40	%		–3.90	%		17.16	%		–26.15	%		28.62	%		108.53	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	511,181		$	558,716		$	339,771		$	160,441		$	72,798		$	20,002
Ratios to average net assets (d):
Net expenses		1.19	%		1.17	%		1.21	%		1.30	%		1.30	%		1.30	%
Gross expenses		1.19	%		1.17	%		1.21	%		1.30	%		1.67	%		2.81	%
Net investment income		1.42	%		0.96	%		0.74	%		0.45	%		0.15	%		0.07	%
Portfolio turnover rate		33	%		48	%		61	%		68	%		112	%		96	%
	Six Months
Selected data for a share of capital	Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of period	$	11.81		$	12.40		$	10.68		$	15.16		$	13.19		$	6.55
Income (loss) from investment operations:
Net investment income (loss) (a)		0.06			0.11			0.05			0.01			(0.05	)		(0.08	)
Net realized and unrealized gain (loss)		0.44			(0.63	)		1.74			(3.99	)		3.65			7.13
Total from investment operations		0.50			(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)		—	(b)		0.01
Net asset value, end of period	$	12.31		$	11.81		$	12.40		$	10.68		$	15.16		$	13.19
Total Return (c)		4.23	%		–4.18	%		16.79	%		–26.34	%		28.13	%		108.17	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	41,023		$	44,324		$	93,352		$	63,415		$	101,584		$	42,975
Ratios to average net assets (d):
Net expenses		1.48	%		1.45	%		1.53	%		1.60	%		1.60	%		1.60	%
Gross expenses		1.48	%		1.45	%		1.53	%		1.62	%		1.85	%		2.54	%
Net investment income (loss)		1.13	%		0.90	%		0.43	%		0.10	%		–0.33	%		–0.63	%
Portfolio turnover rate		33	%		48	%		61	%		68	%		112	%		96	%

†	Unaudited.
(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. 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.

88  Semi-Annual Report

LAZARD EMERGING MARKETS EQUITY BLEND PORTFOLIO

	Six Months												For the Period
Selected data for a share of capital	Ended			Year Ended									5/28/10* to
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10
Institutional Shares
Net asset value, beginning of period	$	11.18		$	11.45		$	9.77		$	12.45		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.10			0.11			0.11			0.15			(0.01	)
Net realized and unrealized gain (loss)		0.40			(0.24	)		1.68			(2.70	)		2.48
Total from investment operations		0.50			(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)		—	(b)
Net asset value, end of period	$	11.68		$	11.18		$	11.45		$	9.77		$	12.45
Total Return (c)		4.47	%		–1.14	%		18.19	%		–20.43	%		24.66	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	578,432		$	478,754		$	201,512		$	85,091		$	54,826
Ratios to average net assets (d):
Net expenses		1.30	%		1.30	%		1.34	%		1.35	%		1.35	%
Gross expenses		1.31	%		1.33	%		1.34	%		1.54	%		6.24	%
Net investment income (loss)		1.87	%		1.00	%		1.01	%		1.34	%		–0.16	%
Portfolio turnover rate		21	%		48	%		57	%		62	%		62	%
	Six Months												For the Period
Selected data for a share of capital	Ended			Year Ended									5/28/10* to
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10
Open Shares
Net asset value, beginning of period	$	11.17		$	11.44		$	9.76		$	12.43		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.08			0.07			0.09			0.11			(0.05	)
Net realized and unrealized gain (loss)		0.40			(0.24	)		1.66			(2.68	)		2.50
Total from investment operations		0.48			(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)		—	(b)
Net asset value, end of period	$	11.65		$	11.17		$	11.44		$	9.76		$	12.43
Total Return (c)		4.30	%		–1.47	%		17.97	%		–20.74	%		24.46	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	136,721		$	118,594		$	37,648		$	22,571		$	9,121
Ratios to average net assets (d):
Net expenses		1.60	%		1.60	%		1.64	%		1.65	%		1.65	%
Gross expenses		1.61	%		1.69	%		1.77	%		1.92	%		6.06	%
Net investment income (loss)		1.55	%		0.61	%		0.78	%		0.94	%		–0.70	%
Portfolio turnover rate		21	%		48	%		57	%		62	%		62	%

†	Unaudited.
*	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.

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LAZARD EMERGING MARKETS MULTI ASSET PORTFOLIO

	Six Months									For the Period
Selected data for a share of capital	Ended			Year Ended						3/31/11* to
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	9.28		$	9.70		$	8.57		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.10			0.13			0.09			0.09
Net realized and unrealized gain (loss)		0.27			(0.37	)		1.11			(1.47	)
Total from investment operations		0.37			(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)		—	(b)
Net asset value, end of period	$	9.65		$	9.28		$	9.70		$	8.57
Total Return (c)		3.99	%		–2.41	%		14.02	%		–13.79	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	273,710		$	223,328		$	125,019		$	56,527
Ratios to average net assets (d):
Net expenses		1.25	%		1.30	%		1.30	%		1.30	%
Gross expenses		1.25	%		1.31	%		1.57	%		2.23	%
Net investment income		2.14	%		1.42	%		1.01	%		1.34	%
Portfolio turnover rate		41	%		155	%		160	%		98	%
	Six Months									For the Period
Selected data for a share of capital	Ended			Year Ended						3/31/11* to
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of period	$	9.29		$	9.71		$	8.59		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.08			0.10			0.08			0.07
Net realized and unrealized gain (loss)		0.28			(0.37	)		1.08			(1.46	)
Total from investment operations		0.36			(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	$	9.65		$	9.29		$	9.71		$	8.59
Total Return (c)		3.88	%		–2.73	%		13.28	%		–13.67	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,337		$	2,185		$	858		$	262
Ratios to average net assets (d):
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%
Gross expenses		2.10	%		2.52	%		3.82	%		16.96	%
Net investment income		1.74	%		1.03	%		0.82	%		1.00	%
Portfolio turnover rate		41	%		155	%		160	%		98	%

†	Unaudited.
*	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.

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LAZARD EMERGING MARKETS DEBT PORTFOLIO

	Six Months									For the Period
Selected data for a share of capital	Ended			Year Ended						2/28/11* to
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	9.53		$	10.85		$	9.76		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.26			0.49			0.48			0.34
Net realized and unrealized gain (loss)		0.46			(1.25	)		1.33			(0.17	)
Total from investment operations		0.72			(0.76	)		1.81			0.17
Less distributions from:
Net investment income		(0.26	)		(0.52	)		(0.48	)		(0.40	)
Net realized gains		—			(0.04	)		(0.24	)		(0.01	)
Total distributions		(0.26	)		(0.56	)		(0.72	)		(0.41	)
Redemption fees		—	(b)		—	(b)		—	(b)		—
Net asset value, end of period	$	9.99		$	9.53		$	10.85		$	9.76
Total Return (c)		7.69	%		–7.13	%		18.95	%		1.64	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	284,604		$	446,180		$	286,163		$	106,813
Ratios to average net assets (d):
Net expenses		0.98	%		0.97	%		1.00	%		1.04	%
Gross expenses		0.98	%		0.97	%		1.03	%		1.67	%
Net investment income		5.42	%		4.84	%		4.60	%		4.14	%
Portfolio turnover rate		70	%		108	%		220	%		108	%
	Six Months									For the Period
Selected data for a share of capital	Ended			Year Ended						2/28/11* to
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of period	$	9.59		$	10.88		$	9.77		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.23			0.45			0.45			0.33
Net realized and unrealized gain (loss)		0.48			(1.24	)		1.35			(0.20	)
Total from investment operations		0.71			(0.79	)		1.80			0.13
Less distributions from:
Net investment income		(0.25	)		(0.46	)		(0.45	)		(0.35	)
Net realized gains		—			(0.04	)		(0.24	)		(0.01	)
Total distributions		(0.25	)		(0.50	)		(0.69	)		(0.36	)
Redemption fees		—	(b)		—	(b)		—	(b)		—
Net asset value, end of period	$	10.05		$	9.59		$	10.88		$	9.77
Total Return (c)		7.48	%		–7.35	%		18.68	%		1.34	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,273		$	9,310		$	1,138		$	128
Ratios to average net assets (d):
Net expenses		1.30	%		1.30	%		1.30	%		1.39	%
Gross expenses		1.58	%		1.39	%		2.97	%		16.28	%
Net investment income		4.90	%		4.45	%		4.26	%		3.84	%
Portfolio turnover rate		70	%		108	%		220	%		108	%

†	Unaudited.
*	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.

Semi-Annual Report  91

LAZARD EMERGING MARKETS INCOME PORTFOLIO

	For the Period
Selected data for a share of capital	4/30/14* to
stock outstanding throughout the period	6/30/14†
Institutional Shares
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment loss (a)			—	(b)
Net realized and unrealized gain			0.15
Total from investment operations			0.15
Net asset value, end of period		$	10.15
Total Return (c)			1.50	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	5,111
Ratios to average net assets (d):
Net expenses			0.90	%
Gross expenses			6.19	%
Net investment loss			–0.23	%
Portfolio turnover rate			0.00	%
	For the Period
Selected data for a share of capital	4/30/14* to
stock outstanding throughout the period	6/30/14†
Open Shares
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment loss (a)			(0.01	)
Net realized and unrealized gain			0.16
Total from investment operations			0.15
Net asset value, end of period		$	10.15
Total Return (c)			1.40	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	210
Ratios to average net assets (d):
Net expenses			1.20	%
Gross expenses			17.33	%
Net investment loss			–0.42	%
Portfolio turnover rate			0.00	%

*	The Portfolio commenced operations on April 30, 2014.
†	Unaudited.
(a)	Net investment 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.

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LAZARD EXPLORER TOTAL RETURN PORTFOLIO

	Six Months				For the Period
Selected data for a share of capital	Ended				6/28/13* to
stock outstanding throughout each period	6/30/14†				12/31/13
Institutional Shares
Net asset value, beginning of period		$	9.86		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.16			0.16
Net realized and unrealized gain (loss)			0.20			(0.12	)
Total from investment operations			0.36			0.04
Less distributions from:
Net investment income			(0.15	)		(0.18	)
Total distributions			(0.15	)		(0.18	)
Redemption fees			—	(b)		—
Net asset value, end of period		$	10.07		$	9.86
Total Return (c)			3.64	%		0.38	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	146,378		$	31,450
Ratios to average net assets (d):
Net expenses			1.30	%		1.30	%
Gross expenses			1.37	%		2.97	%
Net investment income			3.15	%		3.15	%
Portfolio turnover rate			97	%		69	%
	Six Months				For the Period
Selected data for a share of capital	Ended				6/28/13* to
stock outstanding throughout each period	6/30/14†				12/31/13
Open Shares
Net asset value, beginning of period		$	9.88		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.14			0.14
Net realized and unrealized gain (loss)			0.20			(0.11	)
Total from investment operations			0.34			0.03
Less distributions from:
Net investment income			(0.13	)		(0.15	)
Total distributions			(0.13	)		(0.15	)
Redemption fees			—	(b)		—
Net asset value, end of period		$	10.09		$	9.88
Total Return (c)			3.48	%		0.27	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	7,287		$	2,665
Ratios to average net assets (d):
Net expenses			1.60	%		1.60	%
Gross expenses			1.91	%		5.01	%
Net investment income			2.87	%		2.78	%
Portfolio turnover rate			97	%		69	%

†	Unaudited.
*	The Portfolio commenced operations on June 28, 2013.
(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.

Semi-Annual Report  93

   The Lazard Funds, Inc. Notes to Financial Statements June 30, 2014 (unaudited)

1. Organization

The Lazard Funds, Inc. (the “Fund”) was incorporated in Maryland on May 17, 1991 and is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Fund, comprised of twenty-seven 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 Fundamental Long/Short Portfolio (commenced investment operations on April 30, 2014), 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, Lazard Emerging Markets Core Equity Portfolio, Lazard Emerging Markets Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi Asset Portfolio (formerly, Lazard Emerging Markets Multi-Strategy Portfolio), Lazard Emerging Markets Debt Portfolio, Lazard Emerging Markets Income Portfolio (commenced investment operations on April 30, 2014), Lazard Explorer Total Return Portfolio, Lazard US Corporate Income Portfolio (formerly, Lazard U.S. High Yield Portfolio), Lazard US Short Duration Fixed Income Portfolio (formerly, Lazard U.S. Municipal Portfolio), Lazard Global Fixed Income Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio (formerly, Lazard International Realty Equity Portfolio), Lazard Capital Allocator Opportunistic Strategies Portfolio, and Lazard Global Dynamic Multi Asset Portfolio (formerly, Lazard Multi-Asset Targeted Volatility Portfolio). All Portfolios, other than the US Equity Concentrated, Fundamental Long/Short, Emerging Markets Debt, Emerging Markets Income, Explorer Total Return, US Realty Equity and Global Realty Equity Portfolios, are operated as “diversified” funds, as defined in the Act. Global Dynamic Multi Asset Portfolio had not commenced operations as of June 30, 2014. This report includes only the financial statements of Emerging Markets Equity, Emerging Markets Core Equity, Developing Markets Equity, Emerging Markets Equity Blend, Emerging Markets Multi Asset, Emerging Markets Debt, Emerging Markets Income and Explorer Total Return Portfolios. The financial statements of other Portfolios are presented separately.

Effective November 29, 2013, the Fund formed an R6 Shares class. 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 June 30, 2014, only US Strategic Equity, International Equity, International Strategic Equity, Emerging Markets Equity, Emerging Markets Equity Blend, Emerging Markets Multi Asset and Emerging Markets Debt Portfolios offered R6 Shares and only US Strategic Equity Portfolio had issued R6 Shares.

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 consistently followed by the Fund in the preparation of the financial statements:

(a) Valuation of Investments—Net asset value (“NAV”) per share for each class of each Portfolio is determined by State Street for the Fund on each day the New York Stock Exchange (“NYSE”) is open for business. Market values for securities listed on the 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. Exchange-traded options are valued at the last reported sales price on the exchange on which the contract is principally traded. 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. Investments in money market funds are valued at the fund’s 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

94  Semi-Annual Report

using brokers’ quotations or a matrix system which considers such factors as other security prices, yields and maturities. Debt securities maturing in 60 days or less are valued at amortized cost, except where to do so would not accurately reflect their fair value, in which case such securities are valued at fair value as determined by, or in accordance with procedures approved by, the Board of Directors (the “Board”).

The Valuation Committee of the Investment Manager, which meets periodically under the direction of the Board, may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not 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 a 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 period ended June 30, 2014, Emerging Markets Multi Asset, Emerging Markets Debt, Emerging Markets Income and Explorer Total Return Portfolios traded in fixed-income securities.

A 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). An affected 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 Fund 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 the Portfolios’ 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

Semi-Annual Report  95

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, a 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 period ended June 30, 2014, Emerging Markets Multi Asset, Emerging Markets Debt, Emerging Markets Income 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. Such options may be traded on US or non-US securities exchanges or in 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 period ended June 30, 2014, transactions in options purchased and written were as follows:

Emerging Markets Multi Asset Portfolio

Purchased Options	Number of Contracts			Cost
Options outstanding at beginning of period		67,440		$	121,223
Options purchased		159,435			103,114
Options sold		(29,000	)		(62,219	)
Options expired		(197,875	)		(162,118	)
Options outstanding at end of period		—		$	—

Written Options	Number of Contracts			Premiums
Options outstanding at beginning of period		67,440		$	50,987
Options written		55,310			31,935
Options exercised		(107,490	)		(66,952	)
Options expired		(15,260	)		(15,970	)
Options outstanding at end of period		—		$	—
Explorer Total Return Portfolio
Purchased Options	Number of Contracts			Cost
Options outstanding at beginning of period		35,480		$	63,877
Options purchased		103,910			67,261
Options sold		(15,500	)		(33,254	)
Options expired		(123,890	)		(97,884	)
Options outstanding at end of period		—		$	—
Written Options	Number of Contracts			Premiums
Options outstanding at beginning of period		35,480		$	26,975
Options written		39,030			24,630
Options exercised		(59,980	)		(36,734	)
Options expired		(14,530	)		(14,871	)
Options outstanding at end of period		—		$	—

None of the other Portfolios presented traded in options during the period ended June 30, 2014.

(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.

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

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

During the period ended June 30, 2014, Emerging Markets Multi Asset, Emerging Markets Debt and Explorer Total Return Portfolios traded in swap agreements with average notional amounts, which are indicative of the volume for the period, of $21,720,953, $1,743,819 and $33,311,938, 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 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 Asset		1,230,816
Explorer Total Return		13,232

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—Emerging Markets Debt and Explorer Total Return Portfolios intend to declare dividends from net investment income daily 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 dis-

Semi-Annual Report  97

tributed. 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 shareholders distributions may result in reclassifications among certain capital accounts.

(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 Portfolios primarily on the basis of relative net assets. Portfolios accrue distribution and service (12b-1) fees to Open Shares. Portfolios’ 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—Excess cash in Portfolios’ 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—All 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 the Portfolios and are included as paid in capital on the Statements of Assets and Liabilities. The fees are also shown on the 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 Asset		1.00
Emerging Markets Debt		0.80
Emerging Markets Income		0.65
Explorer Total Return		1.00

The Investment Manager has voluntarily agreed, through April 30 of the year shown below, 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			Year
Emerging Markets Equity		1.30	%		1.60	%		2015
Emerging Markets Core Equity		1.30			1.60			2015	(a)
Developing Markets Equity		1.30			1.60			2015
Emerging Markets Equity Blend		1.30			1.60			2015
Emerging Markets Multi Asset		1.30			1.60			2024
Emerging Markets Debt		1.00			1.30			2015	(b)
Emerging Markets Income		0.90			1.20			2016
Explorer Total Return		1.30			1.60			2015	(c)

(a)	Agreement is through October 31, 2015.
(b)	Agreement extends, for May 1, 2015 through April 30, 2014, at levels of 1.10% and 1.40%, respectively.
(c)	Effective July 1, 2014, percentages change to 1.20% and 1.50%, respectively.

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During the period ended June 30, 2014, the Investment Manager waived its management fee 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
Emerging Markets
Core Equity		$84,238		$44,693		$4,475		$10,051
Emerging Markets
Equity Blend		24,889		—		4,764		—
Emerging Markets
Multi Asset		—		—		5,393		—
Emerging Markets
Debt		—		—		5,521		—
Emerging Markets
Income		5,451		33,889		178		2,111
Explorer Total Return		33,066		—		8,208		—

The Fund has entered into an administration agreement with State Street to provide certain administrative services. Each Portfolio bears the cost of such services at a fixed annual rate of $42,500, plus $7,500 per additional class, and 0.02% of average daily net assets up to $1 billion and 0.01% of average daily net assets over $1 billion. State Street has agreed to waive $18,750 of the $42,500 annual fee for Portfolios with net assets under $25 million. During the period ended June 30, 2014, State Street waived its fees as follows:

Portfolio	Amount
Emerging Markets Core Equity		$6,250
Emerging Markets Income		3,125

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 Open Shares, for distribution and servicing of accounts. The Distributor may make payments to certain financial institutions, securities dealers and other industry professionals for providing these services.

BFDS is the Fund’s transfer and dividend disbursing agent. For its services, BFDS receives a monthly fee computed on the basis of the number of shareholder accounts it maintains, subject to a minimum fee 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 June 30, 2014, BFDS waived its fees as follows:

Portfolio	Amount
Emerging Markets Core Equity		$7,968
Emerging Markets Income		4,073

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 Chair of $5,000. Such Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings. No additional compensation is provided in respect of committee meetings held in conjunction with a meeting of the Board. Compensation is, 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 period ended June 30, 2014 were as follows:

Portfolio	Purchases		Sales
Emerging Markets Equity	$	861,106,210	$	1,553,545,075
Emerging Markets Core Equity		28,536,419		5,147,024
Developing Markets Equity		173,281,143		235,423,683

Semi-Annual Report  99

Portfolio	Purchases		Sales
Emerging Markets Equity Blend	$	215,555,905	$	130,330,829
Emerging Markets Multi Asset		110,161,575		76,946,156
Emerging Markets Debt		202,000,685		366,707,598
Emerging Markets Income		736,942		—
Explorer Total Return		129,739,184		59,319,552
	US Government Securities
Portfolio	Purchases		Sales
Emerging Markets Debt		$5,119,296		$5,075,848

For the period ended June 30, 2014, 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 period ended June 30, 2014, 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
Emerging Markets Equity	$	3,300,000	$	3,300,000		1.09	%		1
Emerging Markets Core Equity		1,700,000		1,700,000		1.10			4
Developing Markets Equity		1,528,571		3,800,000		1.09			7
Emerging Markets Debt		11,772,222		22,000,000		1.09			18

* 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 June 30, 2014 is categorized as Level 2 (see Note 9).

7. Non-US Securities Investment Risks

Certain Portfolios may invest in securities of foreign entities and in instruments denominated in foreign currencies which involve risks not typically associated with investments in US securities. Such Portfolios’ performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolios invest. Non-US securities carry special risks, such as 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 may experience a decline in value, in US dollar terms, due solely to fluctuations in currency exchange rates. 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, capital markets worldwide have experienced unprecedented volatility in recent years, causing significant declines in valuation and liquidity in certain emerging markets. These market conditions may continue or worsen. Investments in these countries may be subject to political, economic, legal, market and currency risks. The risks may include less protection of property rights and uncertain political and economic policies, the imposition of capital controls and/or foreign investment limitations by a country, nationalization of businesses and the imposition of sanctions by other countries, such as the US. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies. The Portfolios’ investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market 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

100  Semi-Annual Report

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 June 30, 2014:

Description	Unadjusted Quoted Prices in Active Markets for Identical Investments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Balance as of June 30, 2014
Emerging Markets Equity Portfolio
Common Stocks
Russia	$	928,203,133	$	871,342,012		$	—	$	1,799,545,145
Thailand		130,771,049		269,948,661			—		400,719,710
Other		12,933,477,468		—			—		12,933,477,468
Short-Term Investment		492,860,477		—			—		492,860,477
Total	$	14,485,312,127	$	1,141,290,673		$	—	$	15,626,602,800
Emerging Markets Core Equity Portfolio
Common Stocks
Russia	$	765,561	$	449,490		$	—	$	1,215,051
Other		27,437,797		—			—		27,437,797
Preferred Stocks		900,654		—			—		900,654
Short-Term Investment		101,169		—			—		101,169
Total	$	29,205,181	$	449,490		$	—	$	29,654,671
Developing Markets Equity Portfolio
Common Stocks
Russia	$	46,982,352	$	8,153,314		$	—	$	55,135,666
Other		469,293,933		—			—		469,293,933
Preferred Stocks		18,058,027		—			—		18,058,027
Short-Term Investment		10,149,548		—			—		10,149,548
Total	$	544,483,860	$	8,153,314		$	—	$	552,637,174
Emerging Markets Equity Blend Portfolio
Common Stocks
Russia	$	62,320,327	$	14,777,416		$	—	$	77,097,743
Thailand		—		5,908,210			—		5,908,210
Other		587,161,345		—			—		587,161,345
Preferred Stocks		19,222,192		—			—		19,222,192
Short-Term Investment		22,456,633		—			—		22,456,633
Total	$	691,160,497	$	20,685,626		$	—	$	711,846,123

Semi-Annual Report  101

Description	Unadjusted Quoted Prices in Active Markets for Identical Investments (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Balance as of June 30, 2014
Emerging Markets Multi Asset Portfolio
Assets:
Common Stocks
Russia	$	14,560,612	$	3,343,422			$	—	$	17,904,034
Thailand		—		1,402,861				—		1,402,861
Other		138,734,495		—				—		138,734,495
Preferred Stocks		4,538,356		—				—		4,538,356
Corporate Bonds		—		14,934,277				—		14,934,277
Foreign Government Obligations		—		31,888,807				—		31,888,807
Quasi Government Bonds		—		2,017,444				—		2,017,444
Short-Term Investment		58,588,396		—				—		58,588,396
Warrant*		—		—				—		—
Other Financial Instruments**
Credit Default Swap Agreements		—		12,198				—		12,198
Forward Currency Contracts		—		685,134				—		685,134
Interest Rate Swap Agreements		—		11,277				—		11,277
Total	$	216,421,859	$	54,295,420			$	—	$	270,717,279
Liabilities:
Other Financial Instruments**
Credit Default Swap Agreements	$	—	$	(278,775	)		$	—	$	(278,775	)
Forward Currency Contracts		—		(581,744	)			—		(581,744	)
Interest Rate Swap Agreements		—		(20,944	)			—		(20,944	)
Total	$	—	$	(881,463	)		$	—	$	(881,463	)
Emerging Markets Debt Portfolio
Assets:
Corporate Bonds	$	—	$	42,402,667			$	—	$	42,402,667
Foreign Government Obligations		—		217,209,758				—		217,209,758
Quasi Government Bonds		—		8,431,108				—		8,431,108
Short-Term Investment		16,003,844		—				—		16,003,844
Other Financial Instruments**
Forward Currency Contracts		—		357,928				—		357,928
Total	$	16,003,844	$	268,401,461			$	—	$	284,405,305
Liabilities:
Other Financial Instruments**
Forward Currency Contracts	$	—	$	(605,043	)		$	—	$	(605,043	)
Emerging Markets Income Portfolio
Assets:
Foreign Government Obligations	$	—	$	2,051,161			$	—	$	2,051,161
US Treasury Securities		—		1,257,139				—		1,257,139
Short-Term Investment		1,611,700		—				—		1,611,700
Other Financial Instruments**
Forward Currency Contracts		—		25,518				—		25,518
Total	$	1,611,700	$	3,333,818			$	—	$	4,945,518
Liabilities:
Other Financial Instruments**
Forward Currency Contracts	$	—	$	(11,002	)		$	—	$	(11,002	)

102  Semi-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 June 30, 2014
Explorer Total Return Portfolio
Assets:
Corporate Bonds	$	—	$	35,430,648			$	—	$	35,430,648
Foreign Government Obligations		—		61,153,464				—		61,153,464
Quasi Government Bonds		—		4,909,927				—		4,909,927
Short-Term Investment		48,554,551		—				—		48,554,551
Warrant*		—		—				—		—
Other Financial Instruments**
Credit Default Swap Agreements		—		24,264				—		24,264
Forward Currency Contracts		—		851,151				—		851,151
Interest Rate Swap Agreements		—		14,811				—		14,811
Total	$	48,554,551	$	102,384,265			$	—	$	150,938,816
Liabilities:
Other Financial Instruments**
Credit Default Swap Agreements	$	—	$	(709,175	)		$	—	$	(709,175	)
Forward Currency Contracts		—		(1,007,868	)			—		(1,007,868	)
Interest Rate Swap Agreements		—		(13,421	)			—		(13,421	)
Total	$	—	$	(1,730,464	)		$	—	$	(1,730,464	)

*	The warrant was reported in the Portfolios of Investments at zero market value.
**	Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation/depreciation.

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 Equity, Emerging Markets Core Equity, Developing Markets Equity, Emerging Markets Equity Blend and Emerging Markets Multi Asset 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. A Portfolio recognizes all transfers between levels as though they were transferred at the beginning of the reporting period. There were no transfers into or out of Levels 1, 2 or 3 during the period ended June 30, 2014.

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 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 such Portfolio than if it had invested directly in the asset that yielded the desired return.

Emerging Markets Multi Asset Portfolio

During the period ended June 30, 2014, the notional amounts of purchases and sales of forward currency contracts were $440,651,711 and $432,009,820, respectively.

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The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of June 30, 2014:

	Fair Value
Asset Derivatives
Credit Risk:
Gross unrealized appreciation on credit default swap agreements	$	12,198
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	685,134
Interest Rate Risk:
Gross unrealized appreciation on interest rate swap agreements	$	11,277
Liability Derivatives
Credit Risk:
Gross unrealized depreciation on credit default swap agreements	$	278,775
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	581,744
Interest Rate Risk:
Gross unrealized depreciation on interest rate swap agreements	$	20,944

The effect of derivative instruments on its Statement of Operations for the period ended June 30, 2014 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Credit Risk:
Net realized loss on credit default swap agreements	$	(482,032	)
Foreign Exchange Risk:
Net realized loss on forward currency contracts	$	(89,034	)
Net realized loss on purchased options	$	(208,792	)
Net realized gain on written options	$	62,824
Interest Rate Risk:
Net realized loss on interest rate swap agreements	$	(421,996	)

	Amount
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Credit Risk:
Net change in unrealized depreciation on credit default swap agreements	$	(257,530	)
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(18,871	)
Net change in unrealized appreciation on purchased options	$	22,374
Net change in unrealized depreciation on written options	$	(9,268	)
Interest Rate Risk:
Net change in unrealized appreciation on interest rate swap agreements	$	13,972

Emerging Markets Debt Portfolio

During the period ended June 30, 2014, the notional amounts of purchases and sales of forward currency contracts were $548,333,648 and $581,164,587, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of June 30, 2014:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	357,928
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	605,043

The effect of derivative instruments on its Statement of Operations for the period ended June 30, 2014 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized loss on forward currency contracts	$	(1,057,551	)
Interest Rate Risk:
Net realized loss on interest rate swap agreements	$	(1,285,399	)

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	Amount
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(14,695	)
Interest Rate Risk:
Net change in unrealized appreciation on interest rate swap agreements	$	57,579

Emerging Markets Income Portfolio

During the period ended June 30, 2014, the notional amounts of purchases and sales of forward currency contracts were $16,454,936 and $13,578,412, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of June 30, 2014:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	25,518
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	11,002

The effect of derivative instruments on its Statement of Operations for the period ended June 30, 2014 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized loss on forward currency contracts	$	(47,134	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts	$	14,516

Explorer Total Return Portfolio

During the period ended June 30, 2014, the notional amounts of purchases and sales of forward currency contracts were $373,659,673 and $360,322,916, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of June 30, 2014:

	Fair Value
Asset Derivatives
Credit Risk:
Gross unrealized appreciation on credit default swap agreements	$	24,264
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	851,151
Interest Rate Risk:
Gross unrealized appreciation on interest rate swap agreements	$	14,811
Liability Derivatives
Credit Risk:
Gross unrealized depreciation on credit default swap agreements	$	709,175
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	1,007,868
Interest Rate Risk:
Gross unrealized depreciation on interest rate swap agreements	$	13,421

The effect of derivative instruments on its Statement of Operations for the period ended June 30, 2014 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Credit Risk:
Net realized loss on credit default swap agreements	$	(642,141	)
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	424,280
Net realized loss on purchased options	$	(122,831	)
Net realized gain on written options	$	40,430
Interest Rate Risk:
Net realized loss on interest rate swap agreements	$	(89,300	)

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	Amount
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Credit Risk:
Net change in unrealized depreciation on credit default swap agreements	$	(685,510	)
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(184,533	)
Net change in unrealized appreciation on purchased options	$	11,516
Net change in unrealized depreciation on written options	$	(4,778	)
Interest Rate Risk:
Net change in unrealized appreciation on interest rate swap agreements	$	15,684

See Notes 2(c), 2(d), 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 period ended June 30, 2014.

As of June 30, 2014, Emerging Markets Multi Asset, Emerging Markets Debt, Emerging Markets Income 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.

The required information for the affected Portfolios is presented in the below table, as of June 30, 2014:

Emerging Markets Multi Asset 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		$	12,198	$	—	$	12,198
Forward Currency Contracts			685,134		—		685,134
Interest Rate Swap Agreements			11,277		—		11,277
Total		$	708,609	$	—	$	708,609

				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 Amounts
Barclays Bank PLC		$	48,497	$	(48,497	)	$	—	$	—
BNP Paribas SA			21,371		(18,043	)		—		3,328
Citibank NA			154,714		(48,567	)		—		106,147
Credit Suisse Group AG			1,123		—			—		1,123
HSBC Bank USA			93,427		(46,236	)		—		47,191
JPMorgan Chase Bank			203,235		(203,235	)		—		—
Standard Chartered Bank			95,046		(95,046	)		—		—
UBS AG			91,196		(81,471	)		—		9,725
Total		$	708,609	$	(541,095	)	$	—	$	167,514

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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		$278,775	$	—	$	278,775
Forward Currency Contracts		581,744		—		581,744
Interest Rate Swap Agreements		20,944		—		20,944
Total		$881,463	$	—	$	881,463

			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 Amounts
Barclays Bank PLC		$169,689	$	(48,497	)	$	—		$121,192
BNP Paribas SA		18,043		(18,043	)		—		—
Citibank NA		48,567		(48,567	)		—		—
HSBC Bank USA		46,236		(46,236	)		—		—
JPMorgan Chase Bank		401,542		(203,235	)		—		198,307
Standard Chartered Bank		115,915		(95,046	)		—		20,869
UBS AG		81,471		(81,471	)		—		—
Total		$881,463	$	(541,095	)	$	—		$340,368

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		$357,928	$	—	$	357,928

			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 Amounts
Barclays Bank PLC		$   9,840	$	(9,840	)	$	—	$	—
Citibank NA		16,246		(16,246	)		—		—
HSBC Bank USA		58,213		(58,213	)		—		—
JPMorgan Chase Bank		127,651		(127,651	)		—		—
Standard Chartered Bank		38,632		(38,632	)		—		—
UBS AG		107,346		(107,346	)		—		—
Total		$357,928	$	(357,928	)	$	—	$	—

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		$605,043	$	—	$	605,043

Semi-Annual Report   107

			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 Amounts
Barclays Bank PLC		$  71,075		$	(9,840	)	$	—	$	61,235
Citibank NA		42,029			(16,246	)		—		25,783
HSBC Bank USA		143,294			(58,213	)		—		85,081
JPMorgan Chase Bank		151,532			(127,651	)		—		23,881
Standard Chartered Bank		72,616			(38,632	)		—		33,984
UBS AG		124,497			(107,346	)		—		17,151
Total		$605,043		$	(357,928	)	$	—	$	247,115

Emerging Markets 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		$25,518	$	—	$	25,518

			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 Amounts
Barclays Bank PLC		$  4,371		$	(596	)	$	—	$	3,775
BNP Paribas SA		127			—			—		127
Citibank NA		1,786			(351	)		—		1,435
HSBC Bank USA		7,070			(232	)		—		6,838
JPMorgan Chase Bank		7,701			(7,701	)		—		—
Standard Chartered Bank		721			(305	)		—		416
UBS AG		3,742			(256	)		—		3,486
Total		$25,518		$	(9,441	)	$	—	$	16,077

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		$11,002	$	—	$	11,002

			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 Amounts
Barclays Bank PLC		$     596		$	(596	)	$	—	$	—
Citibank NA		351			(351	)		—		—
HSBC Bank USA		232			(232	)		—		—
JPMorgan Chase Bank		9,262			(7,701	)		—		1,561
Standard Chartered Bank		305			(305	)		—		—
UBS AG		256			(256	)		—		—
Total		$11,002		$	(9,441	)	$	—	$	1,561

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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		$	24,264	$	—	$	24,264
Forward Currency Contracts			851,151		—		851,151
Interest Rate Swap Agreements			14,811		—		14,811
Total		$	890,226	$	—	$	890,226

			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 Amounts
Barclays Bank PLC		$  55,922		$	(55,922	)	$	—	$	—
Citibank NA		116,346			(8,246	)		—		108,100
HSBC Bank USA		164,305			(66,347	)		—		97,958
JPMorgan Chase Bank		282,921			(282,921	)		—		—
Standard Chartered Bank		148,752			(148,752	)		—		—
UBS AG		121,980			(121,980	)		—		—
Total		$890,226		$	(684,168	)	$	—	$	206,058

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		$	709,175	$	—	$	709,175
Forward Currency Contracts			1,007,868		—		1,007,868
Interest Rate Swap Agreements			13,421		—		13,421
Total		$	1,730,464	$	—	$	1,730,464

			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 Amounts
Barclays Bank PLC		$   376,711		$	(55,922	)	$	—	$	320,789
Citibank NA		8,246			(8,246	)		—		—
HSBC Bank USA		66,347			(66,347	)		—		—
JPMorgan Chase Bank		782,179			(282,921	)		—		499,258
Standard Chartered Bank		275,243			(148,752	)		—		126,491
UBS AG		221,738			(121,980	)		—		99,758
Total		$1,730,464		$	(684,168	)	$	—	$	1,046,296

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 adjustment or disclosure in the financial statements.

Semi-Annual Report  109

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 (69)	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 (11 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)
Trevor W. Morrison (43)	Director (April 2014)	New York University School of Law, Dean and Eric M. and Laurie B. Roth Professor of Law (2013 – present)
		Columbia Law School, Professor of Law (2008 – 2013)
		Office of Counsel to the President, The White House, Associate Counsel to the President (2009)
Leon M. Pollack (73)	Director (August 2006)	Private Investor
Richard Reiss, Jr. (70)	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 (54)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present)
		Lazard Ltd, Vice Chairman and Director (2010 – present)
Franci J. Blassberg (60)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – Present); previously, Partner (through 2012)
		Cornell Law School, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)

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(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 serves as a Director for each of the Lazard Funds (comprised of, as of July 31, 2014, 33 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. Ms. Blassberg, who became a Director effective August 6, 2014, is an “interested person” (as defined in the Act) of the Fund, until January 1, 2015, as a result of her former position as a Partner of Debevoise & Plimpton LLP, which provides legal services to the Investment Manager. Ms. Blassberg was not involved in this representation.

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.

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
Tamar Goldstein (39)	Interim Chief Compliance Officer (July 2014) and Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) 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.

Semi-Annual Report  111

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 Income Portfolio

At a meeting of the Board held on February 26, 2014, the Board considered matters in connection with the approval of the Management Agreement between the Fund, on behalf of Lazard Emerging Markets Income Portfolio (the “New 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 33 active funds comprised approximately $24 billion of the approximately $187 billion of total assets under the management of the Investment Manager and its global subsidiaries as of December 31, 2013); the Investment Manager’s global investment manage-

ment 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 New Portfolio from members of the New Portfolio’s proposed portfolio management team, including the strategy to be employed for the New Portfolio and the New 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 New 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, Inc. (“Lipper”) noting the limitations of the comparison group for the New Portfolio (the “EMI Group”).

Management Fee and Expense Ratios. Representatives of the Investment Manager reviewed the proposed management fee and anticipated expense ratio for the New Portfolio and the comparisons provided by Lipper, which compared contractual management fees and expense ratios for the New Portfolio to the EMI Group and comparison universe (the “EMI 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 New Portfolio was below the EMI Group median for Institutional Shares and at the EMI Group median for Open Shares. The net expense ratio for the New Portfolio was below the EMI Group

112  Semi-Annual Report

and EMI Universe medians for Institutional Shares and above the EMI Group and EMI Universe medians for Open Shares (highest in the EMI Group (by less than one basis point) and EMI Universe). The Investment Manager’s representatives noted that the Open Shares expenses were at the EMI Group median before accounting for distribution/servicing fees and that several funds in the EMI Group did not have such fees.

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

Performance. The Directors were provided with composite performance information for the Investment Manager’s emerging income and emerging markets currency income strategies.

Investment Manager Profitability and Economies of Scale

Representatives of the Investment Manager referred to previous discussions regarding considerations of profitability and economies of scale in respect of the Fund’s existing Portfolios and noted that because the New Portfolio is newly formed, has not commenced operations and the eventual amount of the New Portfolio’s assets is uncertain, specific information concerning the cost of services to be provided to the New Portfolio and the expected profits to be realized by the Investment Manager and its affiliates from their relationships with the New Portfolio and 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 New Portfolio initially, noting the Investment Manager’s agreement to waive its fees and/or reimburse the New Portfolio for at least two years following the New 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 New Portfolio. The Investment

Manager’s representatives referenced information previously provided on the Investment Manager’s brokerage and soft dollar practices. The representatives of the Investment Manager stated that the Investment Manager intends to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the New Portfolio would not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Plan adopted for the New 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 New Portfolio. Based on its discussions and considerations as described above, the Board made the following conclusions and determinations with regard to the Management Agreement:

• 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 $187 billion global asset management business.

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

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

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

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

Semi-Annual Report   113

All Portfolios except Lazard Emerging Markets Core Equity Portfolio and Lazard Emerging Markets Income Portfolio

At a meeting of the Board held on June 24-25, 2014, the Board considered the approval, for an additional annual period, of the Management Agreement between the Fund, on behalf of its Portfolios, and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Investment Manager.

Services Provided

Representatives of the Investment Manager discussed with the Board the Investment Manager’s written presentation provided in advance of the meeting addressing, among other matters, the nature, extent and quality of services that the Investment Manager provides the Fund, including a discussion of the Investment Manager and its clients (of which the Lazard Funds complex of 34 active funds comprised approximately $25 billion (as of April 30, 2014) of the approximately $169.5 billion of total assets under the management of the Investment Manager and its global affiliates as of March 31, 2014). The Investment Manager’s representatives noted that the Investment Manager believes that the Fund continues to benefit significantly from the infrastructure and services provided by the Investment Manager’s global investment management platform, technology, operational and legal and compliance support and significant marketing infrastructure across broad distribution channels. The Directors also considered information provided by the Investment Manager regarding its personnel, resources, financial condition and experience; the Fund’s distribution channels and the relationships with various intermediaries; marketing activities on behalf of the Portfolios; and Portfolio asset flows and the growth or decline in asset levels.

The Directors considered the various services provided by the Investment Manager including the Investment Manager’s research and portfolio management capabilities and oversight of day-to-day operations, including 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 Fund benefits from the services and infrastructure provided by the Investment Manager. The Directors accepted management’s assertion that such services and infrastructure are greater than those

typically provided to a $25 billion fund complex not managed by a large, global firm such as the Investment Manager.

Comparative Management Fee, Expense Ratio and Performance Information

The Directors reviewed comparative management fee, expense ratio and performance (through March 31, 2014) information prepared by Strategic Insight, noting the limitations of certain Strategic Insight comparison groups (each, a “Group”) and broader Morningstar categories (each, a “Category”).

Management Fees and Expense Ratios. The Directors discussed the management fees and expense ratios for each Portfolio. They noted the methodology and assumptions used by Strategic Insight, including that management fee comparisons for the Portfolios and the rankings used therein include administrative fees (which, for the Portfolios, include a fixed dollar fee paid to the Fund’s third party administrator that is not affiliated with the Investment Manager). The Directors acknowledged that, for smaller Portfolios, the fixed dollar administrative fee may have a more significant impact on the contractual management fee.

In reviewing Strategic Insight’s analysis, it was noted that, for at least one share class of each Portfolio, contractual management fees were at or below the median of the relevant Group, except for the Emerging Markets Debt Portfolio (although in the third quartile of the Group for each share class) and the Explorer Total Return Portfolio (highest in the Group for both share classes). For the Explorer Total Return Portfolio, the Investment Manager’s representatives stated that only two of the funds in the Groups were total return funds like the Portfolio and referred to another fund which the Investment Manager believed was an appropriate competitor fund, but was not included in the Groups, and noted that these three funds had management fees that were more similar to the Portfolio’s fee than other funds in the Groups. It also was noted that the Portfolio’s small size (smallest in the Groups) impacted management fees (which include administration fees) and that the contractual advisory fee was the same as another fund in the Groups.

It also was noted that, for at least one share class of all Portfolios, expense ratios were at or below the medians of those of the funds in the relevant Group, except for the Emerging Markets Debt Portfolio (though the expense ratios were near the median for both share classes) and Explorer Total

114  Semi-Annual Report

Return Portfolio (highest in the Groups for both share classes). After discussion with the Independent Directors, the Investment Manager agreed to lower the level of the expense limitation for the Explorer Total Return Portfolio by 0.10% to make the Portfolio’s expense ratios more competitive with peer funds. The Directors considered that the Investment Manager continues to voluntarily enter into fee waiver and expense reimbursement agreements for all of the Portfolios and that for certain of the Portfolios the Investment Manager was waiving management fees and/or reimbursing expenses.

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

Performance. Strategic Insight’s performance analyses compared each Portfolio’s investment returns to those of the funds in the relevant Group and Category over measurement periods up to ten years through March 31, 2014.

The Directors noted that one or both share classes of Emerging Markets Equity and Emerging Markets Multi Asset Portfolios were at or above the median of the Group and/or Category for most or all periods; for the Developing Markets Equity Portfolio, five-year performance was in the first quartile of the Group and Category, although below median for shorter periods; for the Emerging Markets Debt Portfolio, year-to-date 2014 performance was above the Category medians, but below medians for the one- and three-

year periods; for the Emerging Markets Blend Portfolio, performance was at or below median; and Explorer Total Return Portfolio’s performance was below the Group and Category medians year-to-date in 2014 (the Portfolio commenced operations in 2013).

At the meeting, the Directors received and would continue to receive regular updates on the Investment Manager’s efforts in respect of underperforming Portfolios.

Investment Manager Profitability and Economies of Scale

The Directors reviewed information prepared by the Investment Manager for each Portfolio concerning profits realized by the Investment Manager and its affiliates resulting from the Management Agreement, calculated using the actual revenues received for the calendar year ended December 31, 2013 and the Investment Manager’s cost allocation methodology to compute an estimate of each Portfolio’s expenses. The Investment Manager’s representatives stated that neither the Investment Manager nor its affiliates receive any significant indirect benefits from the Investment Manager acting as investment adviser to the Portfolios. The Investment Manager’s representatives stated that the broker-dealer that is treated as an affiliate of the Investment Manager did not effect trades for the Portfolios in the period under review, and the Investment Manager did not benefit from money flow (float) in connection with transactions in the Portfolios’ shares. The Investment Manager’s representatives reviewed with the Board information provided on the Investment Manager’s brokerage practices and the Portfolios’ brokerage allocation, commission payments and soft dollar commissions and benefits. The representatives of the Investment Manager reminded the Board that the Investment Manager is continuing to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the Fund does not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Portfolios’ Open Shares.

The profitability percentages were within ranges determined by relevant court cases not to be so disproportionately large that they bore no reasonable relationship to the services rendered. Representatives of the Investment Manager stated that the Investment Manager believed the prof-

Semi-Annual Report  115

its are not unreasonable in light of the services provided and other factors. The Directors considered the Investment Manager’s estimated profitability with respect to each Portfolio as part of their evaluation of whether the Portfolio’s fee under the Management Agreement bears a reasonable relationship to the mix of services provided by the Investment Manager, including the nature, extent and quality of such services, and evaluated profitability in light of the relevant circumstances for each Portfolio, including the size of each Portfolio and the trend in asset growth or decline. Representatives of the Investment Manager and the Directors discussed ways economies of scale could be realized and how they could be shared, including the Investment Manager’s reinvestment of money back into its business, waiving or reimbursing Portfolio expenses, adding discounts to a Portfolio’s management fee schedule as a Portfolio’s assets increase or by instituting relatively low management fees from inception. It was noted that, for Portfolios with declining or stable assets or a low level of assets, the extent to which the Investment Manager may have realized any economies of scale would be reduced.

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 renewal of the Management Agreement. Based on its discussions and considerations as

described above, the Board made the following conclusions and determinations.

• The Board concluded that the nature, extent and quality of the services provided by the Investment Manager are adequate and appropriate, noting the benefits of advisory and research services and other services and infrastructure (as discussed above) associated with an approximately $169.5 billion global asset management business.

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

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

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

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

116  Semi-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 Iron Street
Boston, Massachusetts 02210

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

Deloitte & Touche LLP
30 Rockefeller Plaza
New York, New York 10112-0015

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 Semi-Annual Report
June 30, 2014

Fixed Income Funds

Lazard US Corporate Income Portfolio

Lazard US Short Duration Fixed 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 Corporate Income Portfolio
17	Lazard US Short Duration Fixed Income Portfolio
19	Lazard Global Fixed Income Portfolio
23	Notes to Portfolios of Investments
25	Statements of Assets and Liabilities
26	Statements of Operations
28	Statements of Changes in Net Assets
30	Financial Highlights
33	Notes to Financial Statements
41	Board of Directors and Officers Information
43	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 the investment objectives, risks, charges, expenses and other information about Portfolios of the Fund, which is not detailed in this report.

Distributed by Lazard Asset Management Securities LLC.

Semi-Annual Report  1

   The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

During the first half of 2014, global equity markets rose steadily in comparison to a strong 2013. Stocks were somewhat volatile in the beginning of the year as investors were concerned that the US Federal Reserve (the “Fed”) might begin to raise interest rates sooner than previously expected. Regardless, broad market gains were recorded across North America, Europe, and Asia. Emerging-market equities recovered from a difficult 2013 due to an improving economic environment and despite growth concerns in China and negative market movements from the Russia-Ukraine crisis.

Global fixed-income markets performed well as interest rates declined and despite the ongoing tapering by the Fed. Emerging-market debt posted strong returns, supported by the credit-easing measures taken by the European Central Bank and the ongoing accommodative stance by the Fed.

As always, at Lazard Asset Management, we remain focused on active management and are committed to leveraging our strengths in pursuing the Portfolios’ investment objectives so that you, a valued shareholder in the Lazard Funds, may 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  Semi-Annual Report

   The Lazard Funds, Inc. Investment Overviews

US Corporate Income

For the first half of 2014, the US high yield market saw strong demand, pushing prices up and leading to positive returns in excess of the coupon. The high yield sector, however, lagged other US fixed income sectors such as investment grade corporates and Treasury bonds as interest rates fell.

High yield market spreads tightened by about 45 basis points (bps) during the first half to 348 bps. The BB sector tightened by 28 bps to 249 bps and the CCC sector tightened 92 bps to 639 bps. The removal of a large bankrupt utility from the CCC Index accounted for most of the CCC spread tightening. High yield mutual fund market inflows were very strong as investors sought yield, with net flows totaling approximately $7.1 billion. New high yield bond issuance in the US market was $121 billion in the second quarter, pushing year-to-date issuance to $210 billion. The domestic high yield market capitalization totals approximately $1.3 trillion, an all-time high. The Standard & Poor’s US trailing 12-month issuer default rate was 1.6% as of June 30, 2014, down from 2.1% in December 2013.

US Short Duration Fixed Income

As the Fed unwinds its asset purchases, the US interest rate environment has begun to normalize. This normalization is already reflected in market movements of longer-dated US Treasuries, which have reverted 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. In this environment, the global quest for yield and flight to perceived safety continue unabated as investors have piled into bond mutual funds since the 2008 financial crisis. With Fed policymakers looking to end the quantitative easing program and eventually remove the zero-interest-rate policy, concerns are finally mounting in fixed-income markets about a potential reversal of these extraordinary flows as there is no market precedent and, currently, little market-making capital for unwinding fixed-income positions.

Global Fixed Income

Interest rates in many core countries reflected a “flight to quality” rally in January that was fueled by macroeconomic uncertainty and a sell-off in equities and emerging markets securities. After closing the previous year at the high end of recent ranges, the yield of the bellwether 10-year maturity US

government bond dropped from 3.0% to a low of 2.44% at the end of May, and proceeded to trade in a narrow band for the next few months, ending June at around 2.53%. US economic data continued to be weighed down by the lingering effects of a harsh winter, and a downward revision to first-quarter GDP – to 2.9% in June – gave investors reason to doubt the prospects for full-year momentum. Globally, a variety of factors likely contributed to the broad decline in yields, including a focus on accommodative action by the European Central Bank (ECB), bond-buying by banks that are being forced to raise capital ratios, and continued de-risking through bond buying by liability-driven investors. Furthermore, the simple fact that many investors are already “short,” or underweight, duration means that some investors and hedge funds have been forced to square up positions and chase the market moves by adding interest rate exposure. We also recognize that negative market movements from an escalation in Russia-Ukraine tensions have been short-lived thus far, but new conflict in Iraq only increases market complexity and uncertainty (producing winners and losers from volatile oil prices, for instance).

In the euro zone, most bonds also rallied despite improved, albeit modest, growth and inflation, and the 10-year German bund yield settled at 1.3%. Bonds in the European periphery appear to be fully priced at historically rich valuations as Spanish and Italian government bond yields reached levels similar to those of equivalent-maturity US government bonds. Australian and New Zealand rates also participated in the bond rally, as New Zealand hiked its official rates again and Australian economic data surprised to the upside. Yet, their bond markets rallied because we believe earlier pricing reflected expectations of more hawkish news.

Credit sectors registered strong returns for the year to date through June 30, with investment-grade corporates and sovereign external debt outperforming the high-yield and mortgage sectors in the second quarter. Specific trends that are of concern include strong issuance of covenant-light and hybrid bonds, plus aggressively priced and heavily oversubscribed bonds issued by Greece, Kenya, Cyprus, and Ecuador. However, there is better news on the corporate front, as recent earnings releases have exceeded expectations and have been supportive for bond spreads. In a recurring theme within the multinational corporate space, Apple and Monsanto both issued billions of dollars in debt once again to finance dividend payouts and share buybacks instead of repatriating excess funds from overseas.

Semi-Annual Report  3

Given the big move in rates and credit sectors, currencies continued to trade in relatively tight ranges during the six months, and were driven by country-specific or idiosyncratic catalysts. At the end of the period, the euro had depreciated by less than 0.40% versus the US dollar, which was an under-whelming response to the ECB’s dovish rhetoric. In contrast, the yen strengthened in concert with lower US rates, but held above key support levels at 100.80 as the Bank of Japan (BoJ) seems focused on preventing yen strength. Currency traders brushed off strong Japanese inflation numbers, which were considered a “one-time” adjustment due to the VAT (value-added tax) hike. Both the ECB and BoJ must be frustrated by recent dovish comments by the Fed, in our opinion, as these central banks are somewhat limited by US policy in their efforts to weaken their currencies, as it is to some degree the most important swing factor.

Lazard US Corporate Income Portfolio

For the six months ended June 30, 2014, the Lazard US Corporate Income Portfolio’s Institutional Shares posted a total return of 3.95%, while Open Shares posted a total return of 4.00%, as compared with the 5.54% return for the BofA Merrill Lynch US BB-B Cash Pay Non-Distressed High Yield^® Index (the “High Yield Index”).

The Portfolio underperformed over the first six months of 2014 primarily due to its shorter maturity structure relative to the High Yield Index. When interest rates decline, longer maturity securities generally move the most in price and out-perform. The Portfolio’s effective duration is approximately 3.7 years as compared to the High Yield Index duration of 4.4 years. The Portfolio is shorter in maturity by design in an effort to protect against rising interest rates. Performance was helped by overweight positions in the broadcasting, publishing/ printing, and technology industries, and by under-weight positions in metals/mining. Performance was hurt by underweight holdings in banking, energy, and telecommunications. Overweight positions in cable and gaming also detracted from performance.

Throughout the market volatility of the past several years, we have maintained our credit discipline. As of June 30, 2014, approximately 65% of the holdings by market value were rated BB- or better by Standard & Poor’s and 83% were rated B+ or better.

Lazard US Short Duration Fixed Income Portfolio

For the six months ended June 30, 2014, the Lazard US Short Duration Fixed Income Portfolio’s Institutional Shares posted a total return of 0.38%, while Open Shares posted a total return of 0.42%, as compared with the 0.41% return for the BofA Merrill Lynch 1-3 Year US Treasury^® Index.

For the first six months of the year, the Portfolio performed in line with the BofA Merrill Lynch 1-3 Year US Treasury Index. Performance was helped by positions in Agency mortgage-backed securities and the outperformance of BBB quality corporates. In contrast, shorter duration positioning in US Treasuries detracted from performance for the period.

Lazard Global Fixed Income Portfolio

For the six months ended June 30, 2014, the Lazard Global Fixed Income Portfolio’s Institutional Shares posted a total return of 4.74%, while Open Shares posted a total return of 4.59%, as compared with the 4.93% return for the Barclays Capital Global Aggregate Bond^® Index.

The Portfolio’s performance was helped by country allocations, notably through overweight exposures to a variety of government bond markets including those of Australia, Ireland, Mexico, the Czech Republic, Poland, and Israel. The Portfolio was also helped by its lack of exposure to the Japanese market. Sector selection was also additive, notably as a result of overweight positions in non-government bond sectors, including sovereign external debt, high-yield corporates, and select emerging markets bonds. Additionally, returns were helped by currency positioning in the British pound, Australian dollar, and New Zealand dollar, along with an underweight bias to the euro.

The Portfolio’s defensive duration in the United States and core Europe detracted from performance, along with its avoidance of Spanish and Italian government bonds. Its modest underweight to the Japanese yen also created a minor drag on returns.

The portfolio management team utilizes forward currency contracts, both opportunistically and defensively, for hedging purposes. During the first half of 2014, the use of forward currency contracts did not have a material impact on the Portfolio.

4  Semi-Annual Report

Notes to Investment Overviews:

All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of a Portfolio may have been waived or reimbursed by Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager”), State Street Bank and Trust Company, the Fund’s Administrator (“State Street”), or Boston Financial Data Services, Inc., the Fund’s transfer and dividend disbursing agent (“BFDS”); without such waiver/reimbursement of expenses, a Portfolio’s 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 June 30, 2014; 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 a 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 a 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 any 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.

Semi-Annual Report  5

   The Lazard Funds, Inc. Performance Overviews (unaudited)

Lazard US Corporate Income Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Corporate Income Portfolio, High Yield Index and BofA Merrill Lynch High Yield Master II^® Index*

Average Annual Total Returns*

Periods Ended June 30, 2014

	One Year	Five Years	Ten Years
Institutional Shares**	9.25%	10.54%	7.22%
Open Shares**	8.90%	10.24%	6.92%
High Yield Index	11.29%	12.06%	7.61%
BofA Merrill Lynch High Yield Master II Index	11.80%	13.94%	8.91%

*	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 High Yield Index replaced the BofA 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 High Yield Index is the BofA 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 BofA Merrill Lynch High Yield Cash Pay® Index. The BofA 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.

6  Semi-Annual Report

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, BofA Merrill Lynch 1-3 Year US Treasury^® Index and BofA Merrill Lynch 1-10 Year Municipal Bond^® Index*

Average Annual Total Returns*

Periods Ended June 30, 2014

	One Year	Since Inception	†
Institutional Shares**	0.96%	1.77%
Open Shares**	0.84%	1.52%
BofA Merrill Lynch 1-3 Year US Treasury Index	0.76%	0.80%
BofA Merrill Lynch 1-10 Year Municipal Bond Index	3.77%	3.51%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, 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 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 BofA Merrill Lynch 1-3 Year US Treasury Index replaced the BofA Merrill Lynch 1-10 Year Municipal Bond Index to reflect its changes 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 BofA Merrill Lynch 1-3 Year US 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 BofA Merrill Lynch 1-10 Year Municipal Bond Index is a subset of the BofA Merrill Lynch US Municipal Securities® Index including all securities with a remaining term to final maturity less than 10 years. The BofA 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.

Semi-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 June 30, 2014

	One Year	Since Inception	†
Institutional Shares**	7.01%	1.64%
Open Shares**	6.69%	1.34%
Barclays Capital Global Aggregate Bond Index	7.39%	2.50%

*	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. 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  Semi-Annual Report

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

Expense Example

As a shareholder in a Portfolio of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from January 1, 2014 through June 30, 2014 and held for the entire period.

Actual Expenses

For each Share class of the Portfolios, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each Share class of the Portfolios, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total cost of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Portfolio	Beginning Account Value 1/1/14		Ending Account Value 6/30/14		Expenses Paid During Period* 1/1/14 - 6/30/14		Annualized Expense Ratio During Period 1/1/14 - 6/30/14
US Corporate Income
Institutional Shares
Actual	$	1,000.00	$	1,039.50	$	2.78		0.55	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,022.07	$	2.76		0.55	%
Open Shares
Actual	$	1,000.00	$	1,040.00	$	4.30		0.85	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.58	$	4.26		0.85	%
US Short Duration Fixed Income
Institutional Shares
Actual	$	1,000.00	$	1,003.80	$	1.99		0.40	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,022.81	$	2.01		0.40	%
Open Shares
Actual	$	1,000.00	$	1,004.20	$	3.48		0.70	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.32	$	3.51		0.70	%

Semi-Annual Report  9

Portfolio	Beginning Account Value 1/1/14		Ending Account Value 6/30/14		Expenses Paid During Period* 1/1/14 - 6/30/14		Annualized Expense Ratio During Period 1/1/14 - 6/30/14
Global Fixed Income
Institutional Shares
Actual	$	1,000.00	$	1,047.40	$	4.06		0.80	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.83	$	4.01		0.80	%
Open Shares
Actual	$	1,000.00	$	1,045.90	$	5.58		1.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.34	$	5.51		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 181/365 (to reflect one-half year period).

10  Semi-Annual Report

   The Lazard Funds, Inc. Portfolio Holdings Presented by Credit Rating June 30, 2014 (unaudited)

S&P Credit Rating*	Lazard US Corporate Income Portfolio			Lazard US Short Duration Fixed Income Portfolio			Lazard Global Fixed Income Portfolio
AAA		—	%		67.9	%		8.3	%
AA+		—			1.7			6.8
AA		—			—			1.4
AA-		—			1.1			9.6
A+		—			0.3			3.6
A		—			4.9			9.1
A-		—			8.9			15.1
BBB+		—			6.7			4.3
BBB		1.3			3.1			7.9
BBB-		4.0			—			1.8
BB+		10.8			—			2.6
BB		19.4			—			1.0
BB-		27.8			—			3.4
B+		16.8			—			—
B		10.1			—			0.4
B-		5.2			—			—
CCC+		1.3			—			—
NR		—			—			4.1
NA		—			—			18.3
Short-Term Investments		3.3			5.4			2.3
Total Investments		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

Semi-Annual Report  11

   The Lazard Funds, Inc. Portfolios of Investments June 30, 2014 (unaudited)

Description	Principal Amount (000)		Value
Lazard US Corporate Income Portfolio
Corporate Bonds | 95.5%
Aerospace & Defense | 3.1%
B/E Aerospace, Inc., 5.250%, 04/01/22	$	1,300	$	1,415,375
Bombardier, Inc., 7.750%, 03/15/20 (c)		1,600		1,808,240
Huntington Ingalls Industries, Inc., 6.875%, 03/15/18		1,500		1,586,250
Triumph Group, Inc., 4.875%, 04/01/21		1,400		1,396,500
				6,206,365
Apparel & Textiles | 0.7%
Levi Strauss & Co., 7.625%, 05/15/20		1,300		1,399,125
Automotive | 3.7%
Chrysler Group LLC, 8.250%, 06/15/21		1,400		1,582,000
Dana Holding Corp., 6.500%, 02/15/19		1,500		1,580,625
Schaeffler Finance BV:
7.750%, 02/15/17 (c)		250		281,875
4.750%, 05/15/21 (c)		1,000		1,030,000
The Goodyear Tire & Rubber Co., 8.250%, 08/15/20		1,775		1,948,063
Tomkins LLC, 9.000%, 10/01/18		769		818,831
				7,241,394
Building Materials | 2.1%
HD Supply, Inc., 8.125%, 04/15/19		1,400		1,538,250
Masco Corp., 6.125%, 10/03/16		1,500		1,651,875
USG Corp., 9.750%, 01/15/18		675		808,312
Vulcan Materials Co., 6.500%, 12/01/16		215		238,113
				4,236,550
Cable Television | 5.8%
Cablevision Systems Corp., 7.750%, 04/15/18		1,500		1,695,000

Description	Principal Amount (000)		Value
CCO Holdings LLC, 5.250%, 03/15/21	$	1,950	$	1,998,750
Cequel Communications Holdings I LLC, 6.375%, 09/15/20 (c)		1,800		1,912,500
DISH DBS Corp., 5.125%, 05/01/20		1,000		1,051,250
Lynx I Corp., 5.375%, 04/15/21 (c)		1,810		1,900,500
Mediacom LLC, 9.125%, 08/15/19		175		183,750
Nara Cable Funding, Ltd., 8.875%, 12/01/18 (c)		1,075		1,147,562
Unitymedia Hessen GmbH & Co. KG, 7.500%, 03/15/19 (c)		1,400		1,494,500
				11,383,812
Chemicals | 4.3%
Chemtura Corp., 5.750%, 07/15/21		1,400		1,452,500
Eagle Spinco, Inc., 4.625%, 02/15/21		1,400		1,389,500
Huntsman International LLC, 4.875%, 11/15/20		1,600		1,656,000
Ineos Finance PLC, 7.500%, 05/01/20 (c)		1,400		1,524,250
Mosaic Global Holdings, Inc., 7.300%, 01/15/28		775		970,976
Tronox Finance LLC, 6.375%, 08/15/20		1,400		1,445,500
				8,438,726
Computer Services | 3.0%
Activision Blizzard, Inc., 5.625%, 09/15/21 (c)		1,400		1,508,500
First Data Corp.:
8.875%, 08/15/20 (c)		850		940,312
6.750%, 11/01/20 (c)		400		433,000
iGATE Corp., 4.750%, 04/15/19 (c)		1,500		1,526,250
Nuance Communications, Inc., 5.375%, 08/15/20 (c)		1,373		1,421,055
				5,829,117
Consumer Products | 0.7%
First Quality Finance Co., Inc., 4.625%, 05/15/21 (c)		1,500		1,417,500

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

12  Semi-Annual Report

Description	Principal Amount (000)		Value
Lazard US Corporate Income Portfolio (continued)
Diversified | 1.6%
Amsted Industries, Inc., 5.000%, 03/15/22 (c)	$	1,700	$	1,700,000
Griffon Corp., 5.250%, 03/01/22		1,400		1,391,250
				3,091,250
Electric Generation | 1.8%
AES Corp.:
8.000%, 10/15/17		180		209,700
7.375%, 07/01/21		1,095		1,281,150
Calpine Corp.:
7.875%, 07/31/20 (c)		920		998,200
6.000%, 01/15/22 (c)		500		538,750
NRG Energy, Inc., 8.250%, 09/01/20		525		573,563
				3,601,363
Electronics | 0.8%
Amkor Technologies, Inc., 6.625%, 06/01/21		1,400		1,491,000
Energy Exploration & Production | 3.2%
Chesapeake Energy Corp., 5.375%, 06/15/21		1,450		1,544,250
Denbury Resources, Inc., 5.500%, 05/01/22		1,400		1,431,500
Linn Energy LLC, 6.500%, 05/15/19		1,750		1,846,250
Plains Exploration & Production Co., 6.500%, 11/15/20		1,400		1,562,750
				6,384,750
Energy Services | 2.5%
Cie Generale de Geophysique-Veritas, 7.750%, 05/15/17		596		604,940
Citgo Petroleum Corp., 11.500%, 07/01/17 (c)		1,250		1,325,000
Expro Finance Luxembourg SCA, 8.500%, 12/15/16 (c)		429		448,305
Hornbeck Offshore Services, Inc., 5.000%, 03/01/21		1,600		1,596,000
PBF Holding Co. LLC, 8.250%, 02/15/20		900		981,000
				4,955,245

Description	Principal Amount (000)		Value
Environmental | 0.9%
Clean Harbors, Inc., 5.250%, 08/01/20	$	1,750	$	1,804,688
Financial Services | 2.5%
Aircastle, Ltd., 5.125%, 03/15/21		1,500		1,552,500
Icahn Enterprises LP, 6.000%, 08/01/20		1,500		1,606,875
International Lease Finance Corp.:
8.625%, 09/15/15		500		541,250
5.750%, 05/15/16		500		535,625
8.750%, 03/15/17		500		581,250
				4,817,500
Food & Beverages | 3.6%
B&G Foods, Inc., 4.625%, 06/01/21		1,500		1,503,750
Constellation Brands, Inc., 7.250%, 05/15/17		950		1,088,938
Del Monte Corp., 7.625%, 02/15/19		1,039		1,082,742
HJ Heinz Co., 4.250%, 10/15/20		1,600		1,610,000
Post Holdings, Inc., 7.375%, 02/15/22		1,650		1,784,062
				7,069,492
Forest & Paper Products | 1.8%
Cascades, Inc., 5.500%, 07/15/22 (c)		1,500		1,496,250
Smurfit Kappa Acquisitions, 4.875%, 09/15/18 (c)		1,050		1,105,125
Smurfit Kappa Treasury Funding, Ltd., 7.500%, 11/20/25		750		862,500
				3,463,875
Gaming | 4.2%
Boyd Gaming Corp., 9.125%, 12/01/18		1,350		1,436,062
GLP Capital LP, 4.875%, 11/01/20 (c)		1,500		1,545,000
Marina District Finance Co., Inc., 9.875%, 08/15/18		500		527,500
MGM Resorts International, 6.625%, 12/15/21		1,000		1,112,500
Pinnacle Entertainment, Inc., 6.375%, 08/01/21		1,250		1,318,750
Scientific Games Corp., 8.125%, 09/15/18		350		366,625

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

Semi-Annual Report  13

Description	Principal Amount (000)		Value
Lazard US Corporate Income Portfolio (continued)
Scientific Games International, Inc., 6.250%, 09/01/20	$	850	$	837,250
Wynn Las Vegas LLC, 7.750%, 08/15/20		1,050		1,144,500
				8,288,187
Gas Distribution | 4.1%
El Paso Corp., 7.000%, 06/15/17		650		733,688
Energy Transfer Equity LP, 7.500%, 10/15/20		1,250		1,443,750
Ferrellgas Partners LP:
8.625%, 06/15/20		520		555,100
6.500%, 05/01/21		500		521,875
Kinder Morgan, Inc., 5.000%, 02/15/21 (c)		1,275		1,322,812
NGPL PipeCo LLC, 7.119%, 12/15/17 (c)		505		512,575
Regency Energy Partners LP, 5.750%, 09/01/20		1,300		1,400,750
Rockies Express Pipeline LLC, 6.850%, 07/15/18 (c)		1,450		1,566,000
				8,056,550
Health Services | 5.8%
Biomet, Inc., 6.500%, 08/01/20		1,750		1,885,625
Community Health Systems, Inc., 8.000%, 11/15/19		1,400		1,533,000
Fresenius US Finance II, Inc., 9.000%, 07/15/15 (c)		525		565,688
Grifols Worldwide Operations, Ltd., 5.250%, 04/01/22 (c)		1,475		1,530,312
HCA, Inc., 6.500%, 02/15/20		1,600		1,800,000
LifePoint Hospitals, Inc., 5.500%, 12/01/21 (c)		1,400		1,466,500
Service Corp. International, 6.750%, 04/01/16		750		808,125
Tenet Healthcare Corp.:
4.750%, 06/01/20		700		715,750
4.375%, 10/01/21		1,250		1,242,187
				11,547,187

Description	Principal Amount (000)		Value
Leisure & Entertainment | 3.3%
ACCO Brands Corp., 6.750%, 04/30/20	$	1,750	$	1,833,125
Cedar Fair LP:
9.125%, 08/01/18		225		236,700
5.250%, 03/15/21		1,250		1,287,500
Regal Entertainment Group, 5.750%, 03/15/22		1,450		1,504,375
Royal Caribbean Cruises, Ltd., 7.250%, 06/15/16		330		363,825
Six Flags Entertainment Corp., 5.250%, 01/15/21 (c)		1,400		1,435,000
				6,660,525
Machinery | 1.4%
Terex Corp., 6.500%, 04/01/20		1,600		1,736,800
The Manitowoc Co., Inc., 8.500%, 11/01/20		1,000		1,115,000
				2,851,800
Media | 6.8%
AMC Networks, Inc., 4.750%, 12/15/22		1,500		1,500,000
CBS Outdoor Americas Capital, Inc., 5.250%, 02/15/22 (c)		1,500		1,541,250
Clear Channel Worldwide Holdings, Inc., 6.500%, 11/15/22		1,750		1,885,625
LIN Television Corp., 8.375%, 04/15/18		1,400		1,466,500
Nielsen Finance LLC, 5.000%, 04/15/22 (c)		1,800		1,813,500
Sinclair Television Group, Inc., 5.375%, 04/01/21		1,900		1,911,875
Sirius XM Radio, Inc., 5.750%, 08/01/21 (c)		1,500		1,575,000
WMG Acquisition Corp., 6.000%, 01/15/21 (c)		1,620		1,672,650
				13,366,400
Metals & Mining | 1.6%
Calcipar SA, 6.875%, 05/01/18 (c)		1,350		1,424,250
First Quantum Minerals, Ltd.:
6.750%, 02/15/20 (c)		862		887,860
7.000%, 02/15/21 (c)		862		886,783
				3,198,893

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

14  Semi-Annual Report

Description	Principal Amount (000)		Value
Lazard US Corporate Income Portfolio (continued)
Packaging | 3.3%
Ardagh Packaging Finance PLC, 7.375%, 10/15/17 (c)	$	1,350	$	1,424,655
Reynolds Group Issuer, Inc., 5.750%, 10/15/20		1,500		1,582,500
Sealed Air Corp., 8.125%, 09/15/19 (c)		1,775		1,954,719
Silgan Holdings, Inc., 5.000%, 04/01/20		1,475		1,511,875
				6,473,749
Pharmaceutical & Biotechnology | 1.2%
Mylan, Inc., 7.875%, 07/15/20 (c)		650		719,458
Valeant Pharmaceuticals International, 6.375%, 10/15/20 (c)		1,500		1,593,750
				2,313,208
Printing & Publishing | 2.8%
Gannett Co., Inc., 7.125%, 09/01/18		1,676		1,749,325
R.R. Donnelley & Sons Co., 7.250%, 05/15/18		1,016		1,176,020
The McClatchy Co., 9.000%, 12/15/22		1,100		1,255,375
Time, Inc., 5.750%, 04/15/22 (c)		1,425		1,439,250
				5,619,970
Real Estate | 1.6%
CNL Lifestyle Properties, Inc., 7.250%, 04/15/19		1,600		1,682,000
DuPont Fabros Technology LP, 5.875%, 09/15/21		1,400		1,463,000
				3,145,000
Retail | 1.3%
Netflix, Inc., 5.375%, 02/01/21		1,450		1,518,875
QVC, Inc., 7.500%, 10/01/19 (c)		1,000		1,051,069
				2,569,944
Steel-Producers | 2.7%
AK Steel Corp., 7.625%, 05/15/20		275		283,250

Description	Principal Amount (000)		Value
ArcelorMittal SA, 6.000%, 03/01/21	$	1,400	$	1,515,500
Steel Dynamics, Inc., 6.125%, 08/15/19		1,800		1,957,500
United States Steel Corp., 6.050%, 06/01/17		1,475		1,596,688
				5,352,938
Support Services | 2.7%
Algeco Scotsman Global Finance PLC, 8.500%, 10/15/18 (c)		1,250		1,328,125
Avis Budget Car Finance, Inc., 5.125%, 06/01/22 (c)		1,600		1,602,000
The ADT Corp., 6.250%, 10/15/21		1,400		1,484,000
United Rentals North America, Inc., 7.375%, 05/15/20		750		828,750
				5,242,875
Technology Hardware | 1.5%
Denali Borrower Finance Corp., 5.625%, 10/15/20 (c)		1,400		1,484,000
NCR Corp., 4.625%, 02/15/21		1,450		1,460,875
				2,944,875
Telecommunications | 7.5%
CenturyLink, Inc., 5.625%, 04/01/20		1,800		1,899,000
Equinix, Inc., 4.875%, 04/01/20		1,800		1,845,000
Frontier Communications Corp., 8.125%, 10/01/18		1,500		1,755,000
GCI, Inc., 8.625%, 11/15/19		1,000		1,056,250
Intelsat Jackson Holdings, Ltd., 7.250%, 04/01/19		1,300		1,382,875
SBA Telecommunications, Inc., 5.750%, 07/15/20		1,500		1,590,000
Sprint Capital Corp., 6.900%, 05/01/19		1,475		1,626,187
T-Mobile USA, Inc., 6.250%, 04/01/21		1,850		1,965,625
Windstream Corp., 8.125%, 09/01/18		1,575		1,653,750
				14,773,687

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

Semi-Annual Report  15

Description	Principal Amount (000)		Value
Lazard US Corporate Income Portfolio (concluded)
Transportation | 1.6%
Hapag-Lloyd AG, 9.750%, 10/15/17 (c)	$	1,075	$	1,147,563
Teekay Corp., 8.500%, 01/15/20		1,725		1,992,375
				3,139,938
Total Corporate Bonds (Identified cost $179,602,224)				188,377,478

Description	Shares		Value
Short-Term Investment | 3.3%
State Street Institutional Treasury Money Market Fund (Identified cost $6,499,460)		6,499,460	$	6,499,460
Total Investments | 98.8% (Identified cost $186,101,684) (b)			$	194,876,938
Cash and Other Assets in Excess of Liabilities | 1.2%				2,433,286
Net Assets | 100.0%			$	197,310,224

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

16  Semi-Annual Report

Description	Principal Amount (000)		Value
Lazard US Short Duration Fixed Income Portfolio
Corporate Bonds | 18.5%
Chemicals | 1.2%
Albemarle Corp., 5.100%, 02/01/15	$	1,300	$	1,333,340
Financial Services | 11.1%
Bear Stearns Cos., LLC, 5.700%, 11/15/14		192		195,693
Citigroup, Inc., 5.500%, 10/15/14		1,425		1,445,571
Goldman Sachs Group, Inc.:
5.000%, 10/01/14		709		717,140
5.500%, 11/15/14		340		346,361
3.300%, 05/03/15		1,400		1,431,094
JPMorgan Chase & Co., 3.400%, 06/24/15		1,950		2,006,332
Morgan Stanley, 6.000%, 04/28/15		2,970		3,108,126
Western Union Co., 5.930%, 10/01/16		2,326		2,553,243
				11,803,560
Retail | 1.3%
CVS Caremark Corp., 3.250%, 05/18/15		1,000		1,025,487
Kroger Co., 4.950%, 01/15/15		325		332,774
				1,358,261
Technology | 3.7%
Amphenol Corp., 4.750%, 11/15/14		2,241		2,275,469
Equifax, Inc., 4.450%, 12/01/14		1,604		1,629,789
				3,905,258
Telecommunications | 1.2%
BellSouth Corp., 5.200%, 09/15/14		1,290		1,302,599
Total Corporate Bonds (Identified cost $19,672,212)				19,703,018

Description	Principal Amount (000)		Value
Municipal Bonds | 5.4%
California | 1.7%
California State Taxable Various Purpose:
1.050%, 02/01/16	$	1,175	$	1,183,472
5.500%, 03/01/16		575		620,195
				1,803,667
District of Columbia | 0.5%
District of Columbia Revenue National Public Radio Series A, 5.000%, 04/01/43 (Pre-Refunded to 04/01/15 @ $100) (a)		500		518,035
Illinois | 0.5%
Railsplitter Illinois Tobacco Settlement Authority, 4.125%, 06/01/16		500		528,720
Kentucky | 0.2%
Kentucky State Asset Liability Commission General Funding Revenue, 3.165%, 04/01/18		275		286,540
Maryland | 0.5%
Washington Maryland Suburban Sanitary District Sewer Disposal, 5.000%, 06/01/20 (Pre-Refunded to 06/01/15 @ $100) (a)		500		522,210
Massachusetts | 1.0%
Massachusetts State Construction Loan Series A, 5.000%, 03/01/17 (Pre-Refunded to 03/01/15 @ $100) (a)		500		516,015
Massachusetts State School Building Authority Sales Tax Revenue Series A, 5.000%, 08/15/17 (Pre-Refunded to 08/15/15 @ $100) (a)		500		526,930
				1,042,945
Michigan | 0.5%
Michigan State Hospital Finance Authority Series A Trinity Health, 5.250%, 12/01/15		500		535,340

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

Semi-Annual Report  17

Description	Principal Amount (000)		Value
Lazard US Short Duration Fixed Income Portfolio (concluded)
Virginia | 0.5%
Richmond VA Public Improvement Series A, 5.000%, 07/15/17 (Pre-Refunded to 07/15/15 @ $100) (a)	$	500	$	524,920
Total Municipal Bonds (Identified cost $5,730,595)				5,762,377
US Government Securities | 30.7%
Federal Home Loan Mortgage Corp.:
Pool# 848138, 2.429%, 07/01/38		1,355		1,445,394
Pool# 1B4676, 3.777%, 05/01/40		1,229		1,312,634
Pool# 1B8709, 2.079%, 08/01/34		489		513,404
Pool# 1H2577, 2.375%, 09/01/35		1,644		1,755,396
Pool# 1Q1531, 2.382%, 04/01/38		1,239		1,317,805
Pool# G11720, 4.500%, 08/01/20		563		597,779
Pool# G13867, 5.000%, 06/01/25		637		683,771
Series 3725, Class A, 3.500%, 09/15/24		558		581,287
Federal National Mortgage Association:
Pool# 725296, 2.231%, 03/01/34		1,185		1,265,508
Pool# 725429, 5.000%, 05/01/19		837		891,411
Pool# 834928, 1.940%, 07/01/35		1,706		1,807,543
Pool# 889735, 5.500%, 07/01/23		660		723,560
Pool# 889828, 5.000%, 10/01/19		538		572,792
Pool# 963058, 4.880%, 05/01/38		1,151		1,226,004
Pool# 995609, 2.498%, 04/01/35		1,380		1,475,747
Pool# AD0278, 4.281%, 09/01/39		383		410,671
Pool# AD0701, 2.283%, 02/01/37		1,551		1,649,296
Pool# AE0149, 2.326%, 12/01/36		1,290		1,374,885
Pool# AE0315, 4.500%, 02/01/21		210		223,585
Pool# AE0887, 3.708%, 09/01/40		619		660,552
Pool# AL0345, 2.406%, 11/01/35		1,281		1,360,444
Pool# AL3232, 3.788%, 02/01/40		721		764,712

Description	Principal Amount (000)		Value
Pool# AL3260, 2.453%, 07/01/38	$	807	$	859,790
Pool# AL3739, 2.299%, 07/01/38		462		491,885
Pool# AL3746, 2.316%, 01/01/37		1,496		1,595,405
Pool# AL3941, 6.000%, 03/01/24		1,037		1,123,025
Pool# AL4118, 2.384%, 05/01/35		1,017		1,085,390
Pool# AL4545, 2.308%, 05/01/39		1,333		1,418,135
Pool# AL4660, 3.649%, 11/01/41		1,396		1,478,165
Series 2005-45, Class XA, 0.492%, 06/25/35		1,998		1,999,439
Total US Government Securities (Identified cost $32,486,280)				32,665,414
US Treasury Security | 28.5%
US Treasury Note, 2.125%, 11/30/14 (Identified cost $30,221,181)		29,970		30,224,055

Description	Shares		Value
Short-Term Investment | 4.8%
State Street Institutional Treasury Money Market Fund (Identified cost $5,076,641)		5,076,641	$	5,076,641
Total Investments | 87.9% (Identified cost $93,186,909) (b)			$	93,431,505
Cash and Other Assets in Excess of Liabilities | 12.1%				12,836,473
Net Assets | 100.0%			$	106,267,978

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

18  Semi-Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Global Fixed Income Portfolio
Corporate Bonds | 32.3%
Australia | 2.6%
Mercedes-Benz Australia/Pacific Property, Ltd., 4.500%, 05/18/15	AUD		80	$	76,278
Telstra Corp., Ltd., 6.250%, 04/15/15	AUD		85		82,199
					158,477
Canada | 3.5%
Bombardier, Inc., 7.500%, 03/15/18 (c)	USD		30		33,825
Shaw Communications, Inc., 5.650%, 10/01/19	CAD		65		69,329
Suncor Energy, Inc., 6.100%, 06/01/18	USD		40		46,423
The Toronto-Dominion Bank, 1.824%, 04/03/17	CAD		65		60,983
					210,560
Chile | 1.7%
Codelco, Inc., 3.750%, 11/04/20	USD		100		104,266
France | 0.9%
Orange SA, 5.375%, 07/08/19	USD		50		56,966
Italy | 1.3%
Atlantia SpA, 4.375%, 09/16/25	EUR		50		81,404
Luxembourg | 1.2%
ArcelorMittal SA, 5.000%, 02/25/17	USD		30		31,725
HeidelbergCement Finance Luxembourg SA, 3.250%, 10/21/21	EUR		30		43,071
					74,796
Netherlands | 4.1%
BMW Finance NV, 3.375%, 12/14/18	GBP		50		89,138

Description	Security Currency	Principal Amount (000)		Value
Volkswagen International Finance NV, 2.150%, 05/23/16	CNY		1,000	$	159,485
					248,623
United Kingdom | 5.9%
BG Energy Capital PLC, 5.125%, 12/01/25	GBP		50		94,812
Centrica PLC, 7.000%, 09/19/18	GBP		50		100,757
GKN Holdings PLC, 6.750%, 10/28/19	GBP		30		59,326
Rolls-Royce PLC, 6.750%, 04/30/19	GBP		50		101,600
					356,495
United States | 11.1%
AES Corp., 7.750%, 10/15/15	USD		20		21,450
Anheuser-Busch InBev Worldwide, Inc., 9.750%, 11/17/15	BRL		100		45,259
Constellation Brands, Inc., 7.250%, 05/15/17	USD		40		45,850
Fresenius US Finance II, Inc., 9.000%, 07/15/15	USD		20		21,550
General Electric Capital Corp., 5.500%, 02/01/17	NZD		75		66,704
Goldman Sachs Group, Inc., 6.250%, 09/01/17	USD		40		45,538
HCA, Inc., 6.500%, 02/15/20	USD		30		33,750
Huntington Ingalls Industries, Inc., 6.875%, 03/15/18	USD		35		37,013
JPMorgan Chase & Co., 3.875%, 09/23/20	EUR		50		78,422
Morgan Stanley, 2.500%, 01/24/19	USD		75		75,840
Nestle Holdings, Inc., 2.500%, 07/10/17	NOK		200		33,405
Sealed Air Corp., 8.125%, 09/15/19 (c)	USD		25		27,531
Valeant Pharmaceuticals International, 6.750%, 10/01/17 (c)	USD		25		26,063
Valero Energy Corp., 6.125%, 02/01/20	USD		45		53,177

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

Semi-Annual Report  19

Description	Security Currency	Principal Amount (000)		Value
Lazard Global Fixed Income Portfolio (continued)
Wynn Las Vegas LLC, 7.750%, 08/15/20	USD		35	$	38,150
Yum! Brands, Inc., 3.750%, 11/01/21	USD		25		25,751
					675,453
Total Corporate Bonds (Identified cost $1,938,819)					1,967,040
Foreign Government Obligations | 53.0%
Australia | 5.6%
Australia Government Bond, 3.250%, 04/21/29	AUD		80		69,848
Queensland Treasury Corp., 5.500%, 06/21/21	AUD		125		131,363
Western Australian Treasury Corp., 3.000%, 06/08/16	AUD		145		137,431
					338,642
Bahamas | 1.6%
Commonwealth of Bahamas, 6.950%, 11/20/29	USD		90		99,990
Belgium | 2.9%
Belgium Kingdom, 4.250%, 09/28/22	EUR		105		176,763
Bermuda | 1.8%
Government of Bermuda, 5.603%, 07/20/20	USD		100		111,500
Canada | 6.2%
Province of Alberta, 4.000%, 12/01/19	CAD		70		72,356
Province of British Columbia, 3.700%, 12/18/20	CAD		65		66,255
Province of Ontario:
6.250%, 06/16/15	NZD		75		66,919
2.850%, 06/02/23	CAD		150		139,786
Province of Quebec, 3.500%, 07/29/20	USD		30		32,105
					377,421

Description	Security Currency	Principal Amount (000)		Value
Colombia | 3.0%
Republic of Colombia:
12.000%, 10/22/15	COP		68,000	$	39,507
7.375%, 01/27/17	USD		100		114,850
4.375%, 03/21/23	COP		62,000		30,226
					184,583
Czech Republic | 2.1%
Czech Republic, 2.500%, 08/25/28	CZK		2,420		125,263
France | 2.9%
Government of France, 4.250%, 10/25/23	EUR		105		178,901
Ireland | 2.0%
Ireland Government Bond, 4.400%, 06/18/19	EUR		77		123,262
Israel | 3.0%
Israel Fixed Government Bonds:
5.500%, 01/31/22	ILS		380		134,419
4.250%, 03/31/23	ILS		140		46,274
					180,693
Mexico | 2.1%
Mexican Bonos, 7.750%, 12/14/17	MXN		660		56,836
United Mexican States, 6.750%, 02/06/24	GBP		35		73,077
					129,913
New Zealand | 2.7%
Auckland Council, 4.620%, 03/29/16	NZD		100		87,704
New Zealand Government Bond, 3.000%, 04/15/20	NZD		90		73,998
					161,702
Peru | 1.9%
Peru Bono Soberano, 7.840%, 08/12/20	PEN		285		116,965
Philippines | 2.4%
Republic of Philippines, 4.950%, 01/15/21	PHP		6,000		145,876
Poland | 5.1%
Poland Government Bond, 5.750%, 04/25/29	PLN		465		187,752

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

20  Semi-Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Global Fixed Income Portfolio (continued)
Republic of Poland, 3.000%, 03/17/23	USD		125	$	121,437
					309,189
United Kingdom | 5.8%
United Kingdom Gilt, 1.750%, 07/22/19	GBP		70		118,176
United Kingdom Treasury:
2.250%, 09/07/23	GBP		55		90,913
4.250%, 12/07/27	GBP		40		77,824
4.250%, 06/07/32	GBP		35		68,248
					355,161
Vietnam | 1.9%
Socialist Republic of Vietnam, 6.750%, 01/29/20	USD		100		113,000
Total Foreign Government Obligations (Identified cost $3,122,331)					3,228,824
Quasi Government Bonds | 4.7%
Canada | 2.8%
Hydro-Quebec, 9.625%, 07/15/22	CAD		70		97,685
Ontario Electricity Financial Corp., 10.125%, 10/15/21	CAD		50		70,047
					167,732
Germany | 1.9%
KfW, 2.875%, 10/12/16	NOK		560		93,583
Landeskreditbank Baden-Wuerttemberg Foerderbank, 3.000%, 05/22/17	NOK		130		21,908
					115,491
Total Quasi Government Bonds (Identified cost $290,749)					283,223
Supranationals | 3.7%
Corporacion Andina de Fomento, 4.375%, 06/15/22	USD		85		90,149

Description	Security Currency	Principal Amount (000)		Value
Inter-American Development Bank:
5.250%, 07/19/16	BRL		100	$	41,503
6.000%, 12/15/17	NZD		30		27,347
International Bank for Reconstruction & Development, 1.375%, 06/23/19	SEK		420		63,075
Total Supranationals (Identified cost $219,634)					222,074
US Municipal Bonds | 3.6%
Alaska | 1.4%
Alaska State Qualified School Construction Bond, 5.342%, 08/01/27	USD		75		88,714
Texas | 2.2%
Texas State Build America Bond Series A, 4.123%, 04/01/25	USD		50		54,187
University of Texas Build America Bond, Series B, 6.276%, 08/15/41	USD		70		78,888
					133,075
Total US Municipal Bonds (Identified cost $224,575)					221,789

Description	Shares		Value
Short-Term Investment | 2.3%
State Street Institutional Treasury Money Market Fund (Identified cost $138,737)		138,737	$	138,737
Total Investments | 99.6% (Identified cost $5,934,845) (b), (d)			$	6,061,687
Cash and Other Assets in Excess of Liabilities | 0.4%				24,940
Net Assets | 100.0%			$	6,086,627

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

Semi-Annual Report  21

Lazard Global Fixed Income Portfolio (concluded)

Forward Currency Contracts open at June 30, 2014:

Currency	Counterparty	Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date			US $ Current Value			Unrealized Appreciation			Unrealized Depreciation
Forward Currency Purchase Contracts
CHF	CAN	08/20/14		17,617		$	19,808		$	19,874		$	66		$	—
CHF	CIT	08/20/14		47,630			53,566			53,732			166			—
DKK	CSF	08/20/14		99,403			18,252			18,261			9			—
EUR	CIT	08/20/14		12,458			17,070			17,061			—			9
EUR	CIT	08/20/14		12,480			17,125			17,092			—			33
EUR	CIT	08/20/14		55,119			75,166			75,489			323			—
EUR	CIT	08/20/14		68,363			93,638			93,626			—			12
EUR	CIT	08/20/14		89,545			121,902			122,636			734			—
EUR	CIT	08/20/14		435,166			595,763			595,982			219			—
GBP	CIT	08/20/14		23,641			40,000			40,444			444			—
INR	BNP	08/21/14		2,012,304			33,900			33,068			—			832
INR	HSB	08/21/14		1,543,360			26,000			25,362			—			638
JPY	CIT	08/20/14		12,200,556			120,000			120,477			477			—
JPY	CIT	08/20/14		83,501,896			823,547			824,555			1,008			—
MXN	HSB	08/20/14		1,824,266			139,280			140,142			862			—
SGD	SSB	08/20/14		10,697			8,561			8,579			18			—
Total Forward Currency Purchase Contracts						$	2,203,578		$	2,206,380		$	4,326		$	1,524
Forward Currency Sale Contracts
AUD	CAN	08/20/14		338,246		$	314,637		$	317,839		$	—		$	3,202
AUD	CIT	08/20/14		43,047			39,600			40,449			—			849
AUD	RBC	08/20/14		36,100			33,200			33,923			—			723
BRL	CAN	07/29/14		51,679			22,599			23,210			—			611
BRL	CAN	07/29/14		78,016			34,232			35,038			—			806
CAD	CIT	08/20/14		29,443			27,100			27,560			—			460
CAD	RBC	08/20/14		65,376			60,155			61,195			—			1,040
CAD	RBC	08/20/14		286,919			263,223			268,569			—			5,346
COP	CIT	07/28/14		58,620,000			30,000			31,192			—			1,192
CZK	JPM	08/29/14		1,153,877			57,100			57,604			—			504
EUR	CIT	08/20/14		61,369			83,580			84,048			—			468
GBP	CIT	08/20/14		32,935			55,400			56,344			—			944
GBP	CIT	08/20/14		53,958			90,133			92,308			—			2,175
GBP	HSB	08/20/14		69,687			117,258			119,216			—			1,958
GBP	HSB	08/20/14		127,736			214,713			218,523			—			3,810
ILS	BNP	08/12/14		156,968			45,007			45,729			—			722
ILS	BNP	08/12/14		436,333			126,500			127,116			—			616
MXN	HSB	08/20/14		346,929			26,700			26,652			48			—
MXN	HSB	08/20/14		373,645			28,600			28,704			—			104
MXN	HSB	08/20/14		1,055,519			81,231			81,087			144			—
NOK	HSB	08/20/14		865,563			145,384			140,855			4,529			—
NZD	BRC	08/20/14		73,751			62,700			64,282			—			1,582
NZD	CAN	08/20/14		258,368			221,215			225,195			—			3,980
PEN	CIT	07/30/14		133,638			47,122			47,609			—			487
PHP	CIT	08/20/14		6,167,685			141,299			141,163			136			—
PLN	HSB	08/20/14		388,485			126,401			127,524			—			1,123
Total Forward Currency Sale Contracts						$	2,495,089		$	2,522,934			4,857			32,702
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts												$	9,183		$	34,226

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

22  Semi-Annual Report

   The Lazard Funds, Inc. Notes to Portfolios of Investments June 30, 2014 (unaudited)

(a)	Security collateralized by an amount sufficient to pay principal and interest.
(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 Corporate Income	$	186,101,684	$	8,879,809	$	104,555	$	8,775,254
US Short Duration Fixed Income		93,186,909		279,090		34,494		244,596
Global Fixed Income		5,934,845		187,606		60,764		126,842

(c) Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers”, and are considered to be liquid at June 30, 2014. The percentage of net assets for each Portfolio is as follows:

Portfolio	Percentage of Net Assets
US Corporate Income		30.1	%
Global Fixed Income		1.4

(d) 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	INR	—	Indian Rupee
BRL	—	Brazilian Real	JPY	—	Japanese Yen
CAD	—	Canadian Dollar	MXN	—	Mexican New Peso
CHF	—	Swiss Franc	NOK	—	Norwegian Krone
CNY	—	Chinese Renminbi	NZD	—	New Zealand Dollar
COP	—	Colombian Peso	PEN	—	Peruvian Nuevo Sol
CZK	—	Czech Koruna	PHP	—	Philippine Peso
DKK	—	Danish Krone	PLN	—	Polish Zloty
EUR	—	Euro	SEK	—	Swedish Krona
GBP	—	British Pound Sterling	SGD	—	Singapore Dollar
ILS	—	Israeli Shekel	USD	—	United States Dollar
Counterparty Abbreviations:
BNP	—	BNP Paribas SA	HSB	—	HSBC Bank USA
BRC	—	Barclays Bank PLC	JPM	—	JPMorgan Chase Bank
CAN	—	Canadian Imperial Bank of Commerce	RBC	—	Royal Bank of Canada
CIT	—	Citibank NA	SSB	—	State Street Bank and Trust Co.
CSF	—	Credit Suisse Group AG

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

Semi-Annual Report  23

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		2.8	%
Alcohol & Tobacco		0.7
Automotive		6.3
Banking		1.4
Building Materials		0.7
Cable Television		1.1
Electric		2.8
Electric Generation		0.4
Energy Exploration & Production		1.6
Energy Integrated		0.9
Energy Services		0.8
Financial Services		5.9
Food & Beverages		1.3
Gaming		0.6
Gas Utilities		1.7
Health Services		0.9
Leisure & Entertainment		0.4
Metals & Mining		2.2
Packaging		0.5
Pharmaceutical & Biotechnology		0.4
Telecommunications		2.3
Transportation		1.3
Subtotal		37.0
Foreign Government Obligations		53.0
Supranationals		3.7
US Municipal Bonds		3.6
Short-Term Investment		2.3
Total Investments		99.6	%

* Industry classifications may be different than those used for compliance monitoring purposes.

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

24  Semi-Annual Report

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

	Lazard			Lazard			Lazard
	US Corporate			US Short Duration			Global Fixed
June 30, 2014	Income Portfolio			Fixed Income Portfolio			Income Portfolio
ASSETS
Investments in securities, at value	$	194,876,938		$	93,431,505		$	6,061,687
Foreign currency		—			—			81
Receivables for:
Interest		3,004,003			520,137			90,218
Capital stock sold		17,758			13,332,948			196
Amount due from Investment Manager (Note 3)		—			—			14,469
Gross unrealized appreciation on forward currency contracts		—			—			9,183
Total assets		197,898,699			107,284,590			6,175,834
LIABILITIES
Payables for:
Management fees		57,799			5,427			—
Accrued directors’ fees		1,229			462			39
Accrued distribution fees		478			14			16
Capital stock redeemed		463,395			6,471			22
Dividends		30,379			9,164			—
Investments purchased		—			975,877			32,627
Gross unrealized depreciation on forward currency contracts		—			—			34,226
Other accrued expenses and payables		35,195			19,197			22,277
Total liabilities		588,475			1,016,612			89,207
Net assets	$	197,310,224		$	106,267,978		$	6,086,627
NET ASSETS
Paid in capital	$	192,822,696		$	106,395,890		$	6,017,110
Distributions in excess of net investment income		(33,853	)		(96,446	)		(22,169	)
Accumulated net realized loss		(4,253,873	)		(276,062	)		(10,843	)
Net unrealized appreciation (depreciation) on:
Investments		8,775,254			244,596			126,842
Foreign currency and forward currency contracts		—			—			(24,313	)
Net assets	$	197,310,224		$	106,267,978		$	6,086,627
Institutional Shares
Net assets	$	194,990,481		$	106,221,497		$	6,004,381
Shares of capital stock outstanding*		38,448,729			10,598,801			610,110
Net asset value, offering and redemption price per share	$	5.07		$	10.02		$	9.84
Open Shares
Net assets	$	2,319,743		$	46,481		$	82,246
Shares of capital stock outstanding*		455,123			4,631			8,360
Net asset value, offering and redemption price per share	$	5.10		$	10.04		$	9.84
Cost of investments in securities	$	186,101,684		$	93,186,909		$	5,934,845
Cost of foreign currency	$	—		$	—		$	80

* $0.001 par value, 6,300,000,000 shares authorized for the Portfolios in total.

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

Semi-Annual Report  25

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

	Lazard			Lazard			Lazard
	US Corporate			US Short Duration			Global Fixed
For the Six Months Ended June 30, 2014	Income Portfolio			Fixed Income Portfolio			Income Portfolio
Investment Income
Income
Interest*	$	5,587,916		$	509,265		$	89,483
Expenses
Management fees (Note 3)		513,593			93,224			13,754
Administration fees		43,471			32,253			26,422
Custodian fees		36,385			25,079			31,373
Professional services		22,171			18,549			19,890
Registration fees		14,876			20,129			14,876
Shareholders’ services		13,494			13,095			12,976
Shareholders’ reports		10,781			4,434			3,778
Distribution fees (Open Shares)		3,095			135			93
Directors’ fees and expenses		2,429			923			74
Other†		3,831			2,669			1,924
Total gross expenses		664,126			210,490			125,160
Management fees waived and expenses reimbursed		(146,819	)		(61,171	)		(93,667	)
Administration fees waived		—			—			(9,375	)
Total net expenses		517,307			149,319			22,118
Net investment income		5,070,609			359,946			67,365
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Forward Currency Contracts
Net realized gain (loss) on:
Investments		1,820,525			(146,298	)		66,574
Foreign currency and forward currency contracts		—			—			(72,342	)
Total net realized gain (loss) on investments, foreign currency and forward currency contracts		1,820,525			(146,298	)		(5,768	)
Net change in unrealized appreciation on:
Investments		608,392			79,322			188,589
Foreign currency and forward currency contracts		—			—			7,883
Total net change in unrealized appreciation on investments, foreign currency and forward currency contracts		608,392			79,322			196,472
Net realized and unrealized gain (loss) on investments, foreign currency and forward currency contracts		2,428,917			(66,976	)		190,704
Net increase in net assets resulting from operations	$	7,499,526		$	292,970		$	258,069
* Net of foreign withholding taxes of	$	—		$	—		$	1,530
†Includes interest on line of credit of	$	—		$	—		$	81

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

26  Semi-Annual Report

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Semi-Annual Report  27

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

	Lazard US Corporate Income Portfolio
	Six Months Ended June 30, 2014 (unaudited)			Year Ended December 31, 2013
Increase (Decrease) in Net Assets
Operations
Net investment income	$	5,070,609		$	10,969,988
Net realized gain (loss) on investments, foreign currency and forward currency contracts		1,820,525			1,542,878
Net change in unrealized appreciation (depreciation) on investments, foreign currency and forward currency contracts		608,392			(1,920,858	)
Net increase (decrease) in net assets resulting from operations		7,499,526			10,592,008
Distributions to shareholders
From net investment income
Institutional Shares		(5,006,995	)		(10,798,604	)
Open Shares		(63,614	)		(171,384	)
From net realized gains
Institutional Shares		—			—
Open Shares		—			—
From return of capital
Institutional Shares		—			—
Open Shares		—			—
Net decrease in net assets resulting from distributions		(5,070,609	)		(10,969,988	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		24,889,934			34,204,684
Open Shares		572,172			703,233
Net proceeds from reinvestment of distributions
Institutional Shares		4,829,300			9,819,017
Open Shares		49,905			137,208
Cost of shares redeemed
Institutional Shares		(12,278,519	)		(51,250,191	)
Open Shares		(955,737	)		(2,459,966	)
Net increase (decrease) in net assets from capital stock transactions		17,107,055			(8,846,015	)
Redemption fees (Note 2(h))
Institutional Shares		223			732
Net increase in net assets from redemption fees		223			732
Total increase (decrease) in net assets		19,536,195			(9,223,263	)
Net assets at beginning of period		177,774,029			186,997,292
Net assets at end of period*	$	197,310,224		$	177,774,029
* Includes distributions in excess of net investment income of	$	(33,853	)	$	(33,853	)
Shares issued and redeemed Institutional Shares
Shares outstanding at beginning of period		34,990,674			36,441,591
Shares sold		4,935,624			6,823,132
Shares issued to shareholders from reinvestment of distributions		955,673			1,961,687
Shares redeemed		(2,433,242	)		(10,235,736	)
Net increase (decrease)		3,458,055			(1,450,917	)
Shares outstanding at end of period		38,448,729			34,990,674
Open Shares
Shares outstanding at beginning of period		520,621			842,613
Shares sold		112,531			139,453
Shares issued to shareholders from reinvestment of distributions		9,827			27,243
Shares redeemed		(187,856	)		(488,688	)
Net increase (decrease)		(65,498	)		(321,992	)
Shares outstanding at end of period		455,123			520,621

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

28  Semi-Annual Report

Lazard US Short Duration Fixed Income Portfolio						Lazard Global Fixed Income Portfolio
Six Months Ended June 30, 2014 (unaudited)			Year Ended December 31, 2013			Six Months Ended June 30, 2014 (unaudited)			Period Ended December 31, 2013
$	359,946		$	364,660		$	67,365		$	129,697
	(146,298	)		(247,754	)		(5,768	)		(221,082	)
	79,322			(58,328	)		196,472			(145,526	)
	292,970			58,578			258,069			(236,911	)
	(359,599	)		(363,417	)		(66,551	)		—
	(347	)		(1,243	)		(814	)		—
	—			(145,399	)		—			(6,049	)
	—			(1,132	)		—			(54	)
	—			—			—			(122,444	)
	—			—			—			(1,085	)
	(359,946	)		(511,191	)		(67,365	)		(129,632	)
	43,890,650			60,022,280			1,875,675			2,134,814
	—			526,200			22,418			3,658
	307,079			409,379			66,540			127,668
	300			2,368			814			1,139
	(5,994,493	)		(11,620,537	)		(1,648,110	)		(1,190,893	)
	(281,952	)		(204,084	)		—			—
	37,921,584			49,135,606			317,337			1,076,386
	—			3			—			2
	—			3			—			2
	37,854,608			48,682,996			508,041			709,845
	68,413,370			19,730,374			5,578,586			4,868,741
$	106,267,978		$	68,413,370		$	6,086,627		$	5,578,586
$	(96,446	)	$	(96,446	)	$	(22,169	)	$	(22,169	)
	6,787,754			1,913,691			580,570			473,673
	4,377,960			5,968,576			193,443			216,183
	30,611			40,621			6,867			13,253
	(597,524	)		(1,135,134	)		(170,770	)		(122,539	)
	3,811,047			4,874,063			29,540			106,897
	10,598,801			6,787,754			610,110			580,570
	32,684			405			5,931			5,426
	—			52,360			2,345			387
	30			236			84			118
	(28,083	)		(20,317	)		—			—
	(28,053	)		32,279			2,429			505
	4,631			32,684			8,360			5,931

Semi-Annual Report  29

   The Lazard Funds, Inc. Financial Highlights

LAZARD US CORPORATE INCOME PORTFOLIO

Selected data for a share of capital	Six Months Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	5.01		$	5.01		$	4.78		$	4.88		$	4.70		$	3.78
Income (loss) from investment operations:
Net investment income (a)		0.14			0.30			0.33			0.35			0.35			0.34
Net realized and unrealized gain (loss)		0.06			—	(b)		0.23			(0.10	)		0.18			0.92
Total from investment operations		0.20			0.30			0.56			0.25			0.53			1.26
Less distributions from:
Net investment income		(0.14	)		(0.30	)		(0.33	)		(0.35	)		(0.35	)		(0.34	)
Total distributions		(0.14	)		(0.30	)		(0.33	)		(0.35	)		(0.35	)		(0.34	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	5.07		$	5.01		$	5.01		$	4.78		$	4.88		$	4.70
Total Return (c)		3.95	%		6.17	%		12.02	%		5.17	%		11.78	%		34.66	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	194,990		$	175,154		$	182,749		$	151,278		$	112,427		$	87,568
Ratios to average net assets (d):
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Gross expenses		0.70	%		0.73	%		0.71	%		0.73	%		0.80	%		0.89	%
Net investment income		5.43	%		6.00	%		6.67	%		7.13	%		7.38	%		7.96	%
Portfolio turnover rate		16	%		22	%		26	%		27	%		25	%		17	%

Selected data for a share of capital	Six Months Ended			Year Ended
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of period	$	5.03		$	5.04		$	4.80		$	4.90		$	4.73		$	3.79
Income (loss) from investment operations:
Net investment income (a)		0.13			0.29			0.32			0.33			0.34			0.33
Net realized and unrealized gain (loss)		0.07			(0.01	)		0.24			(0.10	)		0.17			0.94
Total from investment operations		0.20			0.28			0.56			0.23			0.51			1.27
Less distributions from:
Net investment income		(0.13	)		(0.29	)		(0.32	)		(0.33	)		(0.34	)		(0.33	)
Total distributions		(0.13	)		(0.29	)		(0.32	)		(0.33	)		(0.34	)		(0.33	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	5.10		$	5.03		$	5.04		$	4.80		$	4.90		$	4.73
Total Return (c)		4.00	%		5.64	%		11.89	%		4.89	%		11.19	%		34.40	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,320		$	2,620		$	4,249		$	11,602		$	26,266		$	6,126
Ratios to average net assets (d):
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Gross expenses		1.48	%		1.41	%		1.24	%		1.08	%		1.13	%		1.21	%
Net investment income		5.14	%		5.69	%		6.37	%		6.72	%		7.05	%		7.74	%
Portfolio turnover rate		16	%		22	%		26	%		27	%		25	%		17	%

†	Unaudited.
(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. 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  Semi-Annual Report

LAZARD US SHORT DURATION FIXED INCOME PORTFOLIO

	Six Months									For the Period
Selected data for a share of capital	Ended			Year Ended						2/28/11* to
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	10.03		$	10.31		$	10.23		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.05			0.11			0.14			0.17
Net realized and unrealized gain (loss)		(0.01	)		(0.25	)		0.12			0.27
Total from investment operations		0.04			(0.14	)		0.26			0.44
Less distributions from:
Net investment income		(0.05	)		(0.11	)		(0.14	)		(0.17	)
Net realized gains		—			(0.03	)		(0.04	)		(0.04	)
Total distributions		(0.05	)		(0.14	)		(0.18	)		(0.21	)
Redemption fees		—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	10.02		$	10.03		$	10.31		$	10.23
Total Return (c)		0.38	%		–1.39	%		2.54	%		4.46	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	106,221		$	68,086		$	19,726		$	11,594
Ratios to average net assets (d):
Net expenses		0.40	%		0.40	%		0.40	%		0.40	%
Gross expenses		0.55	%		0.90	%		1.41	%		3.09	%
Net investment income		0.97	%		1.06	%		1.34	%		1.97	%
Portfolio turnover rate		21	%		161	%		77	%		60	%

	Six Months									For the Period
Selected data for a share of capital	Ended			Year Ended						2/28/11* to
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of period	$	10.03		$	10.31		$	10.23		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.03			0.06			0.14			0.14
Net realized and unrealized gain (loss)		0.01			(0.23	)		0.09			0.28
Total from investment operations		0.04			(0.17	)		0.23			0.42
Less distributions from:
Net investment income		(0.03	)		(0.08	)		(0.11	)		(0.15	)
Net realized gains		—			(0.03	)		(0.04	)		(0.04	)
Total distributions		(0.03	)		(0.11	)		(0.15	)		(0.19	)
Net asset value, end of period	$	10.04		$	10.03		$	10.31		$	10.23
Total Return (c)		0.42	%		–1.70	%		2.24	%		4.20	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	46		$	328		$	4		$	103
Ratios to average net assets (d):
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%
Gross expenses		12.81	%		8.10	%		38.11	%		18.49	%
Net investment income		0.64	%		0.65	%		1.32	%		1.69	%
Portfolio turnover rate		21	%		161	%		77	%		60	%

†	Unaudited.
*	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.

Semi-Annual Report  31

LAZARD GLOBAL FIXED INCOME PORTFOLIO

	Six Months						For the Period
Selected data for a share of capital	Ended			Year Ended			3/30/12* to
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	9.51		$	10.16		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.12			0.23			0.17
Net realized and unrealized gain (loss)		0.33			(0.65	)		0.16
Total from investment operations		0.45			(0.42	)		0.33
Less distributions from:
Net investment income		(0.12	)		—			(0.07	)
Net realized gains		—			(0.01	)		—
Return of capital		—			(0.22	)		(0.10	)
Total distributions		(0.12	)		(0.23	)		(0.17	)
Redemption fees		—			—	(b)		—
Net asset value, end of period	$	9.84		$	9.51		$	10.16
Total Return (c)		4.74	%		–4.13	%		3.30	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	6,004		$	5,522		$	4,814
Ratios to average net assets (d):
Net expenses		0.80	%		0.80	%		0.80	%
Gross expenses		4.31	%		4.94	%		8.81	%
Net investment income		2.45	%		2.38	%		2.24	%
Portfolio turnover rate		55	%		66	%		47	%

	Six Months						For the Period
Selected data for a share of capital	Ended			Year Ended			3/30/12* to
stock outstanding throughout each period	6/30/14†			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	9.51		$	10.16		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.10			0.20			0.15
Net realized and unrealized gain (loss)		0.33			(0.65	)		0.16
Total from investment operations		0.43			(0.45	)		0.31
Less distributions from:
Net investment income		(0.10	)		—			(0.06	)
Net realized gains		—			(0.01	)		—
Return of capital		—			(0.19	)		(0.09	)
Total distributions		(0.10	)		(0.20	)		(0.15	)
Net asset value, end of period	$	9.84		$	9.51		$	10.16
Total Return (c)		4.59	%		–4.41	%		3.08	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	82		$	56		$	55
Ratios to average net assets (d):
Net expenses		1.10	%		1.10	%		1.10	%
Gross expenses		21.66	%		28.86	%		26.46	%
Net investment income		2.18	%		2.09	%		2.02	%
Portfolio turnover rate		55	%		66	%		47	%

†	Unaudited.
*	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  Semi-Annual Report

   The Lazard Funds, Inc. Notes to Financial Statements June 30, 2014 (unaudited)

1. Organization

The Lazard Funds, Inc. (the “Fund”) was incorporated in Maryland on May 17, 1991 and is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Fund, comprised of twenty-seven 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 Fundamental Long/Short Portfolio (commenced investment operations on April 30, 2014), 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, Lazard Emerging Markets Core Equity Portfolio, Lazard Emerging Markets Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi Asset Portfolio (formerly, Lazard Emerging Markets Multi-Strategy Portfolio), Lazard Emerging Markets Debt Portfolio, Lazard Emerging Markets Income Portfolio (commenced investment operations on April 30, 2014), Lazard Explorer Total Return Portfolio, Lazard US Corporate Income Portfolio (formerly, Lazard U.S. High Yield Portfolio), Lazard US Short Duration Fixed Income Portfolio (formerly, Lazard U.S. Municipal Portfolio), Lazard Global Fixed Income Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio (formerly, Lazard International Realty Equity Portfolio), Lazard Capital Allocator Opportunistic Strategies Portfolio, and Lazard Global Dynamic Multi Asset Portfolio (formerly, Lazard Multi-Asset Targeted Volatility Portfolio). All Portfolios, other than the US Equity Concentrated, Fundamental Long/Short, Emerging Markets Debt, Emerging Markets Income, Explorer Total Return, US Realty Equity and Global Realty Equity Portfolios, are operated as “diversified” funds, as defined in the Act. Global Dynamic Multi Asset Portfolio had not commenced operations as of June 30, 2014. This report includes only the financial statements of US Corporate Income, US Short Duration Fixed Income, and Global Fixed Income Portfolios. The financial statements of other Portfolios are presented separately.

Effective November 29, 2013, the Fund formed an R6 Share class. 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 June 30, 2014, only US Strategic Equity, International Equity, International Strategic Equity, Emerging Markets Equity, Emerging Markets Equity Blend, Emerging Markets Multi Asset and Emerging Markets Debt Portfolios offered R6 Shares and only US Strategic Equity Portfolio had issued R6 Shares.

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 consistently followed by the Fund in the preparation of the financial statements:

(a) Valuation of Investments—Net asset value (“NAV”) per share for each class of each Portfolio is determined by State Street for the Fund on each day the New York Stock Exchange is open for business. 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 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.

Semi-Annual Report  33

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. Non-US securities may trade on days when a Portfolio is not open for business, thus affecting the value of a 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. Interest income is accrued daily. The Portfolios amortize premiums and accrete discounts on fixed-income securities using the effective yield method.

A 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). An affected 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 Fund 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 the Portfolios’ 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, a 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 period ended June 30, 2014, only 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 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:

34  Semi-Annual Report

Portfolio	Amount		Expiration Year
US Corporate Income	$	728,156		2016
		5,346,242		2017
US Short Duration Fixed Income		125,443		N/A

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 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 shareholders distributions may result in reclassifications among certain capital accounts.

(f) Allocation of Expenses—Expenses not directly chargeable to a specific Portfolio are allocated among all Portfolios primarily on the basis of relative net assets. Portfolios accrue distribution and service (12b-1) fees to Open Shares. Portfolios’ 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.

(g) Expense Reductions—Excess cash in Portfolios’ 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.

(h) Redemption Fee—All 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 the Portfolios and are included as paid in capital on the Statements of Assets and Liabilities. The fees are also shown on the Statements of Changes in Net Assets.

(i) 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

Semi-Annual Report  35

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 Corporate Income		0.55	%
US Short Duration Fixed Income		0.25
Global Fixed Income		0.50

The Investment Manager has voluntarily agreed to reduce its fees and, if necessary, reimburse the Portfolios through April 30, 2015 if annualized operating expenses exceed the following percentages of average daily net assets for the respective Shares:

Portfolio	Institutional Shares			Open Shares
US Corporate Income		0.55	%		0.85	%
US Short Duration Fixed Income		0.40			0.70
Global Fixed Income		0.80			1.10

During the period ended June 30, 2014, 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 Corporate Income	$	139,082	$	—	$	6,808	$   929
US Short Duration Fixed Income		54,657		—		135	6,379
Global Fixed Income		13,568		72,566		186	7,347

The Fund has entered into an administration agreement with State Street to provide certain administrative services. Each Portfolio bears the cost of such services at a fixed annual rate of $42,500, plus $7,500 per additional class, and 0.02% of average daily net assets up to $1 billion and 0.01% of average daily net assets over $1 billion. State Street has agreed to waive $18,750 of the $42,500 annual fee for Portfolios with net assets under $25 million. During the period ended June 30, 2014, State Street waived its fees of $9,375 for the Global Fixed Income 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 Open Shares, for distribution and servicing of accounts. The Distributor may make payments to certain financial institutions, securities dealers and other industry professionals for providing these services.

BFDS is the Fund’s transfer and dividend disbursing agent. For its services, BFDS receives a monthly fee computed on the basis of the number of shareholder accounts it maintains, subject to a minimum fee 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 Chair of $5,000. Such Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings. No additional compensation is provided in respect of committee meetings held in conjunction with a meeting of the Board. Compensation is, generally, divided among the Lazard Funds based on relative net

36  Semi-Annual Report

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 period ended June 30, 2014 were as follows:

Portfolio	Purchases		Sales
US Corporate Income	$	47,050,188	$	28,595,962
US Short Duration Fixed Income		5,243,873		2,663,327
Global Fixed Income		3,188,521		2,905,077

	US Government Securities
Portfolio	Purchases		Sales
US Short Duration Fixed Income	$	13,162,843	$	8,656,086

For the period ended June 30, 2014, 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 period ended June 30, 2014, 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
Global Fixed Income	$	116,565		$320,000		1.09%		23

* For days borrowings were outstanding.

7. Non-US Securities Investment Risks

Certain Portfolios may invest in securities of foreign entities and in instruments denominated in foreign currencies which involve risks not typically associated with investments in US securities. Such Portfolios’ performance will be influenced by political, social and economic factors affecting the non-US

countries and companies in which the Portfolios invest. Non-US securities carry special risks, such as 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 may experience a decline in value, in US dollar terms, due solely to fluctuations in currency exchange rates. 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, capital markets worldwide have experienced unprecedented volatility in recent years, causing significant declines in valuation and liquidity in certain emerging markets. These market conditions may continue or worsen. Investments in these countries may be subject to political, economic, legal, market and currency risks. The risks may include less protection of property rights and uncertain political and economic policies, the imposition of capital controls and/or foreign investment limitations by a country, nationalization of businesses and the imposition of sanctions by other countries, such as the US. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies. The Portfolios’ investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market 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

Semi-Annual Report  37

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 June 30, 2014:

Description	Unadjusted Quoted Prices in Active Markets for Identical Investments (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Balance as of June 30, 2014
US Corporate Income Portfolio
Corporate Bonds	$	—	$	188,377,478		$	—	$	188,377,478
Short-Term Investment		6,499,460		—			—		6,499,460
Total	$	6,499,460	$	188,377,478		$	—	$	194,876,938
US Short Duration Fixed Income Portfolio
Corporate Bonds	$	—	$	19,703,018		$	—	$	19,703,018
Municipal Bonds		—		5,762,377			—		5,762,377
US Government Securities		—		32,665,414			—		32,665,414
US Treasury Security		—		30,224,055			—		30,224,055
Short-Term Investment		5,076,641		—			—		5,076,641
Total	$	5,076,641	$	88,354,864		$	—	$	93,431,505
Global Fixed Income Portfolio
Assets:
Corporate Bonds	$	—	$	1,967,040		$	—	$	1,967,040
Foreign Government Obligations		—		3,228,824			—		3,228,824
Quasi Government Bonds		—		283,223			—		283,223
Supranationals		—		222,074			—		222,074
US Municipal Bonds		—		221,789			—		221,789
Short-Term Investment		138,737		—			—		138,737
Other Financial Instruments*
Forward Currency Contracts		—		9,183			—		9,183
Total	$	138,737	$	5,932,133		$	—	$	6,070,870
Liabilities:
Other Financial Instruments*
Forward Currency Contracts	$	—	$	(34,226	)	$	—	$	(34,226	)

* 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.

A Portfolio recognizes all transfers between levels as though they were transferred at the beginning of the reporting period. There were no transfers into or out of Levels 1, 2 or 3 during the period ended June 30, 2014.

38  Semi-Annual Report

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 period ended June 30, 2014, the notional amounts of purchases and sales of forward currency contracts were $8,914,479 and $8,795,827, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of June 30, 2014:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	9,183
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	34,226

The effect of derivative instruments on its Statement of Operations for the period ended June 30, 2014 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized loss on forward currency contracts	$	(71,827	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts	$	8,397

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

During the period ended June 30, 2014, US Corporate Income and US Short Duration Fixed Income Portfolios did not trade in derivatives.

As of June 30, 2014, the Global Fixed Income Portfolio holds derivative instruments that are eligible for offset in its 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 June 30, 2014:

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		$9,183		$ —		$9,183

Semi-Annual Report  39

			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 Amounts
Canadian Imperial Bank of Commerce	$	66	$	(66	)	$	—	$	—
Citibank NA		3,507		(3,507	)		—		—
Credit Suisse Group AG		9		—			—		9
HSBC Bank USA		5,583		(5,583	)		—		—
State Street Bank and Trust Co.		18		—			—		18
Total	$	9,183	$	(9,156	)	$	—	$	27

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	$	34,226	$	—	$	34,226

			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 Amounts
Barclays Bank PLC	$	1,582	$	—		$	—	$	1,582
BNP Paribas SA		2,170		—			—		2,170
Canadian Imperial Bank of Commerce		8,599		(66	)		—		8,533
Citibank NA		6,629		(3,507	)		—		3,122
HSBC Bank USA		7,633		(5,583	)		—		2,050
JPMorgan Chase Bank		504		—			—		504
Royal Bank of Canada		7,109		—			—		7,109
Total	$	34,226	$	(9,156	)	$	—	$	25,070

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 adjustment or disclosure in the financial statements.

40  Semi-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 (69)	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 (11 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)
Trevor W. Morrison (43)	Director (April 2014)	New York University School of Law, Dean and Eric M. and Laurie B. Roth Professor of Law (2013 – present)
		Columbia Law School, Professor of Law (2008 – 2013)
		Office of Counsel to the President, The White House, Associate Counsel to the President (2009)
Leon M. Pollack (73)	Director (August 2006)	Private Investor
Richard Reiss, Jr. (70)	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 (54)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present)
		Lazard Ltd, Vice Chairman and Director (2010 – present)
Franci J. Blassberg (60)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012)
		Cornell Law School, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)

Semi-Annual Report  41

(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 serves as a Director for each of the Lazard Funds (comprised of, as of July 31, 2014, 33 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. Ms. Blassberg, who became a Director effective August 6, 2014, is an “interested person” (as defined in the Act) of the Fund, until January 1, 2015, as a result of her former position as a Partner of Debevoise & Plimpton LLP, which provides legal services to the Investment Manager. Ms.Blassberg was not involved in this representation.
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.

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
Tamar Goldstein (39)	Interim Chief Compliance Officer (July 2014) and Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) 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.

42  Semi-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

At a meeting of the Board held on June 24-25, 2014, the Board considered the approval, for an additional annual period, of the Management Agreement between the Fund, on behalf of its Portfolios, and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Investment Manager.

Services Provided

Representatives of the Investment Manager discussed with the Board the Investment Manager’s written presentation provided in advance of the meeting addressing, among other matters, the nature, extent and quality of services that the Investment Manager provides the Fund, including a discussion of the Investment Manager and its clients (of which the Lazard Funds complex of 33 active funds comprised approximately $25 billion (as of April 30, 2014) of the approximately $169.5 billion of total assets under the management of the Investment Manager and its global affiliates as of March 31, 2014). The Investment Manager’s representatives noted that the Investment Manager believes that the Fund continues to benefit significantly from the infrastructure and services provided by the Investment Manager’s global

investment management platform, technology, operational and legal and compliance support and significant marketing infrastructure across broad distribution channels. The Directors also considered information provided by the Investment Manager regarding its personnel, resources, financial condition and experience; the Fund’s distribution channels and the relationships with various intermediaries; marketing activities on behalf of the Portfolios; and Portfolio asset flows and the growth or decline in asset levels.

The Directors considered the various services provided by the Investment Manager including the Investment Manager’s research and portfolio management capabilities and oversight of day-to-day operations, including 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 Fund benefits from the services and infrastructure provided by the Investment Manager. The Directors accepted management’s assertion that such services and infrastructure are greater than those typically provided to a $25 billion fund complex not managed by a large, global firm such as the Investment Manager.

Comparative Management Fee, Expense Ratio and Performance Information

The Directors reviewed comparative management fee, expense ratio and performance (through March 31, 2014) information prepared by Strategic Insight, noting the limitations of certain Strategic Insight comparison groups (each, a “Group”) and broader Morningstar categories (each, a “Category”).

Management Fees and Expense Ratios. The Directors discussed the management fees and expense ratios for each Portfolio. They noted the methodology and assumptions used by Strategic Insight, including that management fee comparisons for the Portfolios and the rankings used therein include administrative fees (which, for the Portfolios, include a fixed dollar fee paid to the Fund’s third party administrator that is not affiliated with the Investment Manager). The Directors acknowledged that, for smaller Portfolios, the fixed dollar administrative fee may have a more significant impact on the contractual management fee.

In reviewing Strategic Insight’s analysis, it was noted that, for at least one share class of each Portfolio, contractual management fees were at or below the median of the relevant

Semi-Annual Report  43

Group, except Global Fixed Income Portfolio (highest in the Groups for both share classes). For the Global Fixed Income Portfolio, which was the smallest fund in the Groups, the contractual advisory fee was below the Group medians.

It also was noted that, for at least one share class of all Portfolios, expense ratios were at or below the medians of those of the funds in the relevant Group. The Directors considered that the Investment Manager continues to voluntarily enter into fee waiver and expense reimbursement agreements for all of the Portfolios and that for certain of the Portfolios the Investment Manager was waiving management fees and/or reimbursing expenses.

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

Performance. Strategic Insight’s performance analyses compared each Portfolio’s investment returns to those of the funds in the relevant Group and Category over measurement periods up to ten years through March 31, 2014.

The Directors noted that, for the US Short Duration Fixed Income Portfolio, year-to-date 2014 and one-year performance was below median (longer-term comparisons were not considered to be relevant as the Portfolio’s strategy had changed in 2013) and that the performance of the Global Fixed Income and US Corporate Income Portfolios were generally below median.

At the meeting, the Directors received and would continue to receive regular updates on the Investment Manager’s efforts in respect of the Portfolios.

Investment Manager Profitability and Economies of Scale

The Directors reviewed information prepared by the Investment Manager for each Portfolio concerning profits realized by the Investment Manager and its affiliates resulting from the Management Agreement, calculated using the actual revenues received for the calendar year ended December 31, 2013 and the Investment Manager’s cost allocation methodology to compute an estimate of each Portfolio’s expenses. The Investment Manager’s representatives stated that neither the Investment Manager nor its affiliates receive any significant indirect benefits from the Investment Manager acting as investment adviser to the Portfolios. The Investment Manager’s representatives stated that the broker-dealer that is treated as an affiliate of the Investment Manager did not effect trades for the Portfolios in the period under review, and the Investment Manager did not benefit from money flow (float) in connection with transactions in the Portfolios’ shares. The Investment Manager’s representatives reviewed with the Board information provided on the Investment Manager’s brokerage practices and the Portfolios’ brokerage allocation, commission payments and soft dollar commissions and benefits. The representatives of the Investment Manager reminded the Board that the Investment Manager is continuing to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the Fund does not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Portfolios’ Open Shares.

The profitability percentages were within ranges determined by relevant court cases not to be so disproportionately large that they bore no reasonable relationship to the services rendered. Representatives of the Investment Manager stated that the Investment Manager believed the profits are not unreasonable in light of the services provided and other factors. The Directors considered the Investment Manager’s estimated profitability with respect to each Portfolio as part of their evaluation of whether the Portfolio’s fee under the Management Agreement bears a reasonable relationship to the mix of services provided by the Investment Manager,

44  Semi-Annual Report

including the nature, extent and quality of such services, and evaluated profitability in light of the relevant circumstances for each Portfolio, including the size of each Portfolio and the trend in asset growth or decline. Representatives of the Investment Manager and the Directors discussed ways economies of scale could be realized and how they could be shared, including the Investment Manager’s reinvestment of money back into its business, waiving or reimbursing Portfolio expenses, adding discounts to a Portfolio’s management fee schedule as a Portfolio’s assets increase or by instituting relatively low management fees from inception. It was noted that, for Portfolios with declining or stable assets or a low level of assets, the extent to which the Investment Manager may have realized any economies of scale would be reduced.

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 renewal of the Management Agreement. Based on its discussions and considerations as described above, the Board made the following conclusions and determinations.

• The Board concluded that the nature, extent and quality of the services provided by the Investment Manager are adequate and appropriate, noting the benefits of advisory and research services and other services and infrastructure (as discussed above) associated with an approximately $169.5 billion global asset management business.

• The Board would continue to monitor performance of the Portfolios.

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

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

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

Semi-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 Iron Street
Boston, Massachusetts 02210

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

Deloitte & Touche LLP
30 Rockefeller Plaza
New York, New York 10112-0015

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 Semi-Annual Report
June 30, 2014

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
10	Notes to Portfolio of Investments
11	Statement of Assets and Liabilities
12	Statement of Operations
13	Statements of Changes in Net Assets
14	Financial Highlights
15	Notes to Financial Statements
23	Board of Directors and Officers Information
25	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 the investment objectives, risks, charges, expenses and other information about Portfolios of the Fund, which is not detailed in this report.

Distributed by Lazard Asset Management Securities LLC.

Semi-Annual Report  1

   The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

During the first half of 2014, global equity markets rose steadily in comparison to a strong 2013. Stocks were somewhat volatile in the beginning of the year as investors were concerned that the US Federal Reserve (the “Fed”) might begin to raise interest rates sooner than previously expected. Regardless, broad market gains were recorded across North America, Europe, and Asia. Emerging-market equities recovered from a difficult 2013 due to an improving economic environment and despite growth concerns in China and negative market movements from the Russia-Ukraine crisis.

Global fixed-income markets performed well as interest rates declined and despite the ongoing tapering by the Fed. Emerging-market debt posted strong returns, supported by the credit-easing measures taken by the European Central Bank and the ongoing accommodative stance by the Fed.

As always, at Lazard Asset Management, we remain focused on active management and are committed to leveraging our strengths in pursuing the Portfolios’ investment objectives so that you, a valued shareholder in Lazard Funds, may 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  Semi-Annual Report

   The Lazard Funds, Inc. Investment Overview

Capital Allocator

Most equity markets rose during the first half of 2014, driven by positive economic data points, an increase in merger-and-acquisition activity, and accommodative monetary policy. In the United States, the market shrugged off weak first-quarter GDP as this was largely attributable to one-time items associated with weather and pull-forward of activity due to tax increases. In Europe, stocks rose after the euro zone posted positive fourth-quarter GDP growth and the European Central Bank announced a broad package of measures designed to stimulate growth in the region. However, the market decline in June suggested that headwinds from languishing growth remain.

In China, concerns regarding slowing economic activity held back performance at the beginning of the period, but positive manufacturing and inflation data helped the market in the latter half. Additionally, the Chinese central bank released details of measures that should boost lending by reducing reserve requirements for some banks. Japan ended the period slightly positive as recent gains offset earlier weakness after initial concerns regarding the consumption tax hike and whether Abenomics would be able to achieve its goal of reigniting the economy abated. Local markets in the region were boosted by positive GDP data, which showed that the economy expanded at an annualized rate of 6.7% for the first quarter.

During the second quarter, emerging markets reversed their first-quarter decline and ended the period outpacing developed markets. Indian equities were among the best performers amid hope that newly elected Prime Minister Narendra Modi might bring economic and social welfare reform to the country. Despite a de-escalation of tensions in the second quarter, Russian equities were among the worst performers due to events in Crimea and the economic and diplomatic sanctions that followed.

Lazard Capital Allocator Opportunistic Strategies Portfolio

For the six months ended June 30, 2014, the Lazard Capital Allocator Opportunistic Strategies Portfolio’s Institutional Shares posted a total return of 2.83%, while Open Shares posted a total return of 2.64%, as compared with the 6.18% return for the Morgan Stanley Capital International (MSCI^®) World^® Index and 5.28% return for the Global Asset Allocation Blended Index.¹

Thematic investments, which represented 47% of the Portfolio as of June 30, 2014, underperformed the benchmarks for the period. Positive returns were generated by investments in health care providers. However, this was offset by our holdings of momentum-trade investments in gaming, robotics, and technology, which benefited the Portfolio at the end of 2013, but rolled over in early 2014. These positions were sold during the period. The use of derivatives helped performance in Thematic investments. Three custom baskets of securities created via swaps—one focused on Japanese financials, one focused on global automotive companies, and another focused on companies that have historically outperformed in times of rising US consumption—added to returns. These investments, implemented through swap trades, were custom baskets of securities that represent unique opportunity sets based on a top-down macroeconomic investment thesis. These custom baskets are securities that do not exist in public markets, and the only way to gain the specific exposure desired was to design and build these baskets. In creating and purchasing these derivative securities, cash is collateralized to offset the purchase, and therefore the Portfolio does not incur any additional leverage. The three custom baskets of securities created via swaps were: Japanese financials (which contributed 18 basis points), Global Automotive Companies (which contributed 19 basis points), and the US consumption basket (which contributed 34 basis points).

Diversifying investments, which represented 33% of the Portfolio at the end of the period, underperformed the MSCI World Index, but performed in line with the Global Asset Allocation Blended Index. Performance of long-term Treasuries, which was additive to returns, balanced poor performance from equity exposure to global consumer staples and gold. We exited these positions during the period.

Contrarian investments, which represented 16% of the Portfolio at the end of the period, underperformed the benchmarks for the period. Exposure to emerging-market equities helped performance, but poor performance from Greek equities and lagging South Korean equity performance detracted from returns.

Discounted investments, which represented 4% of the Portfolio as of June 30, 2014, outperformed both the benchmarks during the period. An international currency basket closed-end fund and a Mexican equity closed-end fund contributed to returns during the period.

Semi-Annual Report  3

Notes to Investment Overview:

All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of a Portfolio may have been waived or reimbursed by Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager”), State Street Bank and Trust Company, the Fund’s Administrator (“State Street”), or Boston Financial Data Services, Inc., the Fund’s transfer and dividend disbursing agent (“BFDS”); without such waiver/reimbursement of expenses, a Portfolio’s 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 June 30, 2014; 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 a 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 a 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 any outlooks for markets, sectors and securities as discussed herein. You should read the Fund’s prospectus or each Portfolio’s summary prospectus for a more detailed discussion of each Portfolio’s investment objectives, strategies, risks and fees.

¹ The Global 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  Semi-Annual Report

   The Lazard Funds, Inc. Performance Overview (unaudited)

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 June 30, 2014

	Institutional Shares				Open Shares
	One Year	Five Years	Since Inception	†	One Year	Five Years	Since Inception	†
Capital Allocator Opportunistic Strategies Portfolio**	15.86%	9.31%	4.18%		15.54%	8.94%	3.92%
MSCI World Index	24.05%	14.99%	5.37%		24.05%	14.99%	5.46%
Global Asset Allocation Blended Index	15.94%	11.24%	5.74%		15.94%	11.24%	5.78%

*	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 free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. 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.

Semi-Annual Report  5

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

Expense Example

As a shareholder in a Portfolio of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from January 1, 2014 through June 30, 2014 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 1/1/14		Ending Account Value 6/30/14		Expenses Paid During Period* 1/1/14 - 6/30/14		Annualized Expense Ratio During Period 1/1/14 - 6/30/14
Capital Allocator Opportunistic Strategies
Institutional Shares
Actual	$	1,000.00	$	1,028.30	$	5.13		1.02	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.74	$	5.11		1.02	%
Open Shares
Actual	$	1,000.00	$	1,026.40	$	6.63		1.32	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.25	$	6.61		1.32	%

* Expenses are equal to the annualized expense ratio of each Share class multiplied by the average account value over the period, multiplied by 181/365 (to reflect one-half year period).

6  Semi-Annual Report

   The Lazard Funds, Inc. Portfolio Holdings Presented by Sector June 30, 2014 (unaudited)

Sector*	Lazard Capital Allocator Opportunistic Strategies Portfolio
Consumer Discretionary		7.1	%
Consumer Staples		2.7
Energy		4.2
Financials		10.4
Health Care		4.1
Industrials		8.9
Information Technology		7.7
Materials		2.9
Telecommunication Services		1.4
Utilities		1.0
Fixed Income		10.5
Short-Term Investment		39.1
Total Investments		100.0	%

* Represents percentage of total investments.

Semi-Annual Report  7

   The Lazard Funds, Inc. Portfolio of Investments June 30, 2014 (unaudited)

Description	Shares		Value
Lazard Capital Allocator Opportunistic Strategies Portfolio
Exchange-Traded Note | 2.1%
VelocityShares Daily Inverse VIX Medium Term ETN (a) (Identified cost $4,275,120)		96,000	$	4,464,960
Exchange-Traded Funds | 54.5%
Global X FTSE Greece 20 ETF		182,020		4,095,450
iShares Global Energy ETF		88,900		4,313,428
iShares Global Industrials ETF		144,400		10,520,984
iShares MSCI Emerging Markets ETF		97,200		4,201,956
iShares MSCI France ETF		351,000		10,231,650
iShares MSCI Japan Small-Cap ETF		103,000		5,849,370
iShares MSCI South Korea Capped ETF		82,600		5,370,652
iShares North American Technology ETF		112,600		10,718,653
iShares U.S. Healthcare Providers ETF		50,900		5,233,538
PowerShares Buyback Achievers Portfolio		194,000		8,700,900
Vanguard FTSE Emerging Markets ETF		492,500		21,241,525
Vanguard Short-Term Corporate Bond ETF		212,400		17,070,588
WisdomTree Japan Hedged Equity Fund		181,400		8,953,904
Total Exchange-Traded Funds
(Identified cost $111,422,163)				116,502,598

Description	Shares		Value
Closed-End Management Investment Companies | 4.1%
Mexico Equity and Income Fund, Inc.		208,989	$	3,364,723
Nuveen Diversified Currency Opportunities Fund		473,400		5,316,282
Total Closed-End Management Investment Companies (Identified cost $8,472,313)				8,681,005
Short-Term Investment | 38.9%
State Street Institutional Treasury Money Market Fund (Identified cost $83,218,407)		83,218,407		83,218,407
Total Investments | 99.6%
(Identified cost $207,388,003) (b), (c)			$	212,866,970
Cash and Other Assets in Excess of Liabilities | 0.4%				809,954
Net Assets | 100.0%			$	213,676,924

Forward Currency Sale Contracts open at June 30, 2014:

Currency	Counterparty	Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date			US $ Current Value			Unrealized Depreciation
EUR	SSB	08/20/14		10,228,184		$	13,900,000		$	14,008,041		$	108,041
JPY	SSB	08/20/14		530,899,200			5,200,000			5,242,463			42,463
JPY	SSB	08/20/14		534,906,750			5,250,000			5,282,036			32,036
Total Forward Currency Sale Contracts						$	24,350,000		$	24,532,540			182,540

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

8  Semi-Annual Report

Lazard Capital Allocator Opportunistic Strategies Portfolio (concluded)

Total Return Swap Agreements open at June 30, 2014:

Currency	Counterparty	Notional Amount (000)	Expiration Date	Pay	Receive	Unrealized Appreciation
USD	GSC	5,238	03/19/15	1 Month USD LIBOR plus 0.60%	Appreciation, and dividends paid, on securities in a basket of domestic equity securities		$	81,885
USD	GSC	9,215	05/25/15	1 Month USD LIBOR plus 0.45%	Appreciation, and dividends paid, on securities in a basket of domestic equity securities			130,200
USD	GSC	10,923	05/25/15	1 Month USD LIBOR plus 0.40%	Appreciation, and dividends paid, on securities in a basket of domestic equity securities			24,273
USD	GSC	6,419	06/30/15	1 Month USD LIBOR plus 0.40%	Appreciation, and dividends paid, on securities in a basket of domestic equity securities			50,406
Total unrealized appreciation on Total Return Swap Agreements							$	286,764

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

Semi-Annual Report  9

   The Lazard Funds, Inc. Notes to Portfolio of Investments June 30, 2014 (unaudited)

(a)	Non-income producing security.
(b)	For federal income tax purposes, the aggregate cost was $207,388,003, aggregate gross unrealized appreciation was $5,852,674, aggregate gross unrealized depreciation was $373,707, and the net unrealized appreciation was $5,478,967.
(c)	The Portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts.

Abbreviations:
ETF	—	Exchange-Traded Fund
ETN	—	Exchange-Traded Note
EUR	—	Euro
GSC	—	Goldman Sachs Group AG
JPY	—	Japanese Yen
LIBOR	—	London Interbank Offered Rate
USD	—	United States Dollar
SSB	—	State Street Bank and Trust Co.

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

10  Semi-Annual Report

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

	Lazard Capital Allocator
	Opportunistic Strategies
June 30, 2014	Portfolio
ASSETS
Investments in securities, at value		$	212,866,970
Cash			205,865
Receivables for:
Dividends and interest			663,244
Capital stock sold			11,773
Gross unrealized appreciation on swap agreements			286,764
Total assets			214,034,616
LIABILITIES
Payables for:
Management fees			148,279
Accrued directors’ fees			1,447
Accrued distribution fees			640
Capital stock redeemed			526
Gross unrealized depreciation on forward currency contracts			182,540
Premium for swap agreements written			3,934
Other accrued expenses and payables			20,326
Total liabilities			357,692
Net assets		$	213,676,924
NET ASSETS
Paid in capital		$	196,774,895
Distributions in excess of net investment income			(2,922,481	)
Accumulated net realized gain			14,241,123
Net unrealized appreciation (depreciation) on:
Investments			5,478,967
Foreign currency and forward currency contracts			(182,344	)
Swap agreements			286,764
Net assets		$	213,676,924
Institutional Shares
Net assets		$	210,357,484
Shares of capital stock outstanding*			19,973,912
Net asset value, offering and redemption price per share		$	10.53
Open Shares
Net assets		$	3,319,440
Shares of capital stock outstanding*			315,713
Net asset value, offering and redemption price per share		$	10.51
Cost of investments in securities		$	207,388,003

* $0.001 par value, 6,300,000,000 shares authorized for the Portfolios in total.

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

Semi-Annual Report  11

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

	Lazard Capital Allocator
	Opportunistic Strategies
For the Six Months Ended June 30, 2014	Portfolio
Investment Income
Income
Dividends		$	1,576,686
Expenses
Management fees (Note 3)			1,044,992
Administration fees			45,695
Custodian fees			27,946
Professional services			27,030
Registration fees			14,877
Shareholders’ reports			14,196
Shareholders’ services			13,563
Distribution fees (Open Shares)			3,547
Directors’ fees and expenses			2,821
Other			4,082
Total gross expenses			1,198,749
Management fees waived			(128,600	)
Total net expenses			1,070,149
Net investment income			506,537
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Forward Currency Contracts and Swap Agreements
Net realized gain (loss) on:
Investments			12,751,747
Foreign currency and forward currency contracts			(4,130	)
Swap agreements			1,749,333
Total net realized gain on investments, foreign currency, forward currency contracts and swap agreements			14,496,950
Net change in unrealized depreciation on:
Investments			(8,851,544	)
Foreign currency and forward currency contracts			(182,775	)
Swap agreements			(31,290	)
Total net change in unrealized depreciation on investments, foreign currency, forward currency contracts and swap agreements			(9,065,609	)
Net realized and unrealized gain on investments, foreign currency, forward currency contracts and swap agreements			5,431,341
Net increase in net assets resulting from operations		$	5,937,878

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

12  Semi-Annual Report

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

	Lazard Capital Allocator Opportunistic Strategies Portfolio
	Six Months Ended				Year Ended
	June 30, 2014				December 31,
	(unaudited)				2013
Increase (Decrease) in Net Assets
Operations
Net investment income		$	506,537		$	2,003,674
Net realized gain on investments, foreign currency, forward currency contracts, options and swap agreements			14,496,950			14,298,869
Net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts and swap agreements			(9,065,609	)		9,822,665
Net increase in net assets resulting from operations			5,937,878			26,125,208
Distributions to shareholders
From net investment income
Institutional Shares			—			(9,658,755	)
Open Shares			—			(105,748	)
From net realized gains
Institutional Shares			—			(10,495,960	)
Open Shares			—			(122,735	)
Net decrease in net assets resulting from distributions			—			(20,383,198	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			22,072,417			38,927,488
Open Shares			932,141			565,093
Net proceeds from reinvestment of distributions
Institutional Shares			—			19,042,016
Open Shares			—			219,942
Cost of shares redeemed
Institutional Shares			(31,731,675	)		(74,468,014	)
Open Shares			(311,167	)		(1,336,706	)
Net decrease in net assets from capital stock transactions			(9,038,284	)		(17,050,181	)
Redemption fees (Note 2(j))
Institutional Shares			232			3,612
Open Shares			5			—
Net increase in net assets from redemption fees			237			3,612
Total decrease in net assets			(3,100,169	)		(11,304,559	)
Net assets at beginning of period			216,777,093			228,081,652
Net assets at end of period*		$	213,676,924		$	216,777,093
* Includes distributions in excess of net investment income of		$	(2,922,481	)	$	(3,429,018	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			20,912,934			22,422,647
Shares sold			2,161,542			3,776,598
Shares issued to shareholders from reinvestment of distributions			—			1,880,973
Shares redeemed			(3,100,564	)		(7,167,284	)
Net decrease			(939,022	)		(1,509,713	)
Shares outstanding at end of period			19,973,912			20,912,934
Open Shares
Shares outstanding at beginning of period			255,504			308,937
Shares sold			90,775			55,083
Shares issued to shareholders from reinvestment of distributions			—			21,717
Shares redeemed			(30,566	)		(130,233	)
Net increase (decrease)			60,209			(53,433	)
Shares outstanding at end of period			315,713			255,504

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

Semi-Annual Report  13

   The Lazard Funds, Inc. Financial Highlights

LAZARD CAPITAL ALLOCATOR OPPORTUNISTIC STRATEGIES PORTFOLIO

	Six Months
Selected data for a share of capital	Ended				Year Ended
stock outstanding throughout each period	6/30/14†				12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period		$	10.24		$	10.03		$	9.26		$	9.96		$	8.80		$	7.36
Income (loss) from investment operations:
Net investment income (a)			0.02			0.09			0.11			0.12			0.12			0.14
Net realized and unrealized gain (loss)			0.27			1.12			0.74			(0.45	)		1.16			1.42
Total from investment operations			0.29			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)		—	(b)
Net asset value, end of period		$	10.53		$	10.24		$	10.03		$	9.26		$	9.96		$	8.80
Total Return (c)			2.83	%		12.22	%		9.16	%		-3.28	%		14.58	%		21.21	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	210,357		$	214,161		$	224,982		$	258,832		$	239,403		$	195,939
Ratios to average net assets (d):
Net expenses			1.02	%		1.02	%		1.02	%		1.02	%		1.02	%		1.02	%
Gross expenses			1.14	%		1.13	%		1.12	%		1.13	%		1.13	%		1.16	%
Net investment income			0.49	%		0.89	%		1.13	%		1.25	%		1.36	%		1.72	%
Portfolio turnover rate			108	%		193	%		139	%		155	%		117	%		113	%

	Six Months
Selected data for a share of capital	Ended				Year Ended
stock outstanding throughout each period	6/30/14†				12/31/13			12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of period		$	10.24		$	10.03		$	9.26		$	9.97		$	8.80		$	7.37
Income (loss) from investment operations:
Net investment income (a)			0.01			0.06			0.07			0.08			0.06			0.12
Net realized and unrealized gain (loss)			0.26			1.12			0.75			(0.45	)		1.20			1.41
Total from investment operations			0.27			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)		—	(b)
Net asset value, end of period		$	10.51		$	10.24		$	10.03		$	9.26		$	9.97		$	8.80
Total Return (c)			2.64	%		11.90	%		8.84	%		-3.72	%		14.35	%		20.71	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	3,319		$	2,616		$	3,099		$	6,111		$	7,163		$	16,856
Ratios to average net assets (d):
Net expenses			1.32	%		1.32	%		1.32	%		1.32	%		1.32	%		1.32	%
Gross expenses			1.85	%		1.84	%		1.67	%		1.57	%		1.52	%		1.44	%
Net investment income			0.29	%		0.60	%		0.69	%		0.77	%		0.66	%		1.44	%
Portfolio turnover rate			108	%		193	%		139	%		155	%		117	%		113	%

†	Unaudited.
(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. 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.

14  Semi-Annual Report

   The Lazard Funds, Inc. Notes to Financial Statements June 30, 2014 (unaudited)

1. Organization

The Lazard Funds, Inc. (the “Fund”) was incorporated in Maryland on May 17, 1991 and is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Fund, comprised of twenty-seven 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 Fundamental Long/Short Portfolio (commenced investment operations on April 30, 2014), 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, Lazard Emerging Markets Core Equity Portfolio, Lazard Emerging Markets Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi Asset Portfolio (formerly, Lazard Emerging Markets Multi-Strategy Portfolio), Lazard Emerging Markets Debt Portfolio, Lazard Emerging Markets Income Portfolio (commenced investment operations on April 30, 2014), Lazard Explorer Total Return Portfolio, Lazard US Corporate Income Portfolio (formerly, Lazard U.S. High Yield Portfolio), Lazard US Short Duration Fixed Income Portfolio (formerly, Lazard U.S. Municipal Portfolio), Lazard Global Fixed Income Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio (formerly, Lazard International Realty Equity Portfolio), Lazard Capital Allocator Opportunistic Strategies Portfolio, and Lazard Global Dynamic Multi Asset Portfolio (formerly, Lazard Multi-Asset Targeted Volatility Portfolio). All Portfolios, other than the US Equity Concentrated, Fundamental Long/Short, Emerging Markets Debt, Emerging Markets Income, Explorer Total Return, US Realty Equity and Global Realty Equity Portfolios, are operated as “diversified” funds, as defined in the Act. Global Dynamic Multi Asset Portfolio had not commenced operations as of June 30, 2014. 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 formed an R6 Shares class. 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 June 30, 2014, only US Strategic Equity, International Equity, International Strategic Equity, Emerging Markets Equity, Emerging Markets Equity Blend, Emerging Markets Multi Asset and Emerging Markets Debt Portfolios offered R6 Shares and only US Strategic Equity Portfolio had issued R6 Shares.

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 consistently followed by the Fund in the preparation of the financial statements:

(a) Valuation of Investments—Net asset value (“NAV”) per share for each class of each Portfolio is determined by State Street for the Fund on each day the New York Stock Exchange (“NYSE”) is open for business. Market values for securities listed on the 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. 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. Investments in money market funds are valued at the fund’s 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 se-

Semi-Annual Report  15

curity, 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. Non-US securities may trade on days when a Portfolio is not open for business, thus affecting the value of a 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.

A 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). An affected 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 Fund 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 the Portfolios’ 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, a 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, certain Portfolios may purchase and write (sell) put and call options. Such options may be traded on US or non-US securities exchanges or in 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

16  Semi-Annual Report

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 period ended June 30, 2014, the Portfolio had no transactions in purchased and written options.

(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, a 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 a Portfolio’s accompanying Statement of Assets and Liabilities.

During the period ended June 30, 2014, the Portfolio traded in swap agreements with an average notional amount, which is indicative of the volume for the period, of $15,047,599.

(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 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 shareholders distributions may result in reclassifications among certain capital accounts.

(h) Allocation of Expenses—Expenses not directly chargeable to a specific Portfolio are allocated among all Portfolios primarily on the basis of relative net assets. Portfolios accrue distribution and service (12b-1) fees to Open Shares. Portfolios’ 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.

Semi-Annual Report  17

(i) Expense Reductions—Excess cash in Portfolios’ 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—All 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 the Portfolios and are included as paid in capital on the Statements of Assets and Liabilities. The fees are also shown on the 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 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 through April 30, 2015 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 period ended June 30, 2014, the Investment Manager waived its management fees of $121,115 and $7,485 for the Institutional Shares and Open Shares, respectively.

The Fund has entered into an administration agreement with State Street to provide certain administrative services. Each Portfolio bears the cost of such services at a fixed annual rate of $42,500, plus $7,500 per additional class, and 0.02% of average daily net assets up to $1 billion and 0.01% of average daily net assets over $1 billion. State Street has agreed to waive $18,750 of the $42,500 annual fee for Portfolios with net assets under $25 million.

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

Under a Distribution and Servicing Plan in accordance with Rule 12b-1 under the Act, each Portfolio pays a monthly fee to the Distributor, at an annual rate of 0.25% of the average daily net assets of 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, 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

18  Semi-Annual Report

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 Chair of $5,000. Such Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings. No additional compensation is provided in respect of committee meetings held in conjunction with a meeting of the Board. Compensation is, 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 period ended June 30, 2014 were $176,019,988 and $234,822,871, respectively.

For the period ended June 30, 2014, 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 period ended June 30, 2014, the Portfolio had no borrowings under the Agreement.

7. Non-US Securities Investment Risks

Certain Portfolios may invest in securities of foreign entities and in instruments denominated in foreign currencies which involve risks not typically associated with investments in US securities. Such Portfolios’ performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolios invest. Non-US securities carry special risks, such as 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 may experience a decline in value, in US dollar terms, due solely to fluctuations in currency exchange rates. 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, capital markets worldwide have experienced unprecedented volatility in recent years, causing significant declines in valuation and liquidity in certain emerging markets. These market conditions may continue or worsen. Investments in these countries may be subject to political, economic, legal, market and currency risks. The risks may include less protection of property rights and uncertain political and economic policies, the imposition of capital controls and/or foreign investment limitations by a country, nationalization of businesses and the imposition of sanctions by other countries, such as the US. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies. The Portfolios’ investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market 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 assump-

Semi-Annual Report  19

tions 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 June 30, 2014:

Description	Unadjusted Quoted Prices in Active Markets for Identical Investments (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Balance as of June 30, 2014
Assets:
Exchange-Traded Note	$	4,464,960	$	—		$	—	$	4,464,960
Exchange-Traded Funds		116,502,598		—			—		116,502,598
Closed-End Management Investment Companies		8,681,005		—			—		8,681,005
Short-Term Investment		83,218,407		—			—		83,218,407
Other Financial Instruments*
Total Return Swap Agreements		—		286,764			—		286,764
Total	$	212,866,970	$	286,764		$	—	$	213,153,734
Liabilities:
Other Financial Instruments*
Forward Currency Contracts	$	—	$	(182,540	)	$	—	$	(182,540	)

* 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. The swap agreements included in Level 2 were valued by an independent pricing service.

A Portfolio recognizes all transfers between levels as though they were transferred at the beginning of the reporting period. There were no transfers into or out of Levels 1, 2 or 3 during the period ended June 30, 2014.

For further information regarding security characteristics see Portfolio 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 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 such Portfolio than if it had invested directly in the asset that yielded the desired return.

During the period ended June 30, 2014, the notional amounts of purchases and sales of forward currency contracts were $0 and $25,086,946, respectively.

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of June 30, 2014:

20  Semi-Annual Report

	Fair Value
Asset Derivatives
Equity Risk:
Gross unrealized appreciation on total return swap agreements	$	286,764
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	182,540

The effect of derivative instruments on the Statement of Operations for the period ended June 30, 2014 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Equity Risk:
Net realized gain on total return swap agreements	$	1,749,333
Foreign Exchange Risk:
Net realized loss on forward currency contracts	$	(3,211	)

	Amount
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Equity Risk:
Net change in unrealized depreciation on total return swap agreements	$	(31,290	)
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(182,540	)

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

As of June 30, 2014, 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 June 30, 2014:

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
Total Return Swap Agreements	$	286,764	$	—	$	286,764

			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 Amounts
Goldman Sachs Group AG	$	286,764	$	—	$	—	$	286,764

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	$	182,540	$	—	$	182,540

Semi-Annual Report  21

			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 Amounts
State Street Bank and Trust Co.	$	182,540	$	—	$	—	$	182,540

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 adjustment or disclosure in the financial statements.

22  Semi-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 (69)	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 (11 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)
Trevor W. Morrison (43)	Director (April 2014)	New York University School of Law, Dean and Eric M. and Laurie B. Roth Professor of Law (2013 – present)
		Columbia Law School, Professor of Law (2008 – 2013)
		Office of Counsel to the President, The White House, Associate Counsel to the President (2009)
Leon M. Pollack (73)	Director (August 2006)	Private Investor
Richard Reiss, Jr. (70)	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 (54)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present)
		Lazard Ltd, Vice Chairman and Director (2010 – present)
Franci J. Blassberg (60)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012)
		Cornell Law School, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)

Semi-Annual Report  23

(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 serves as a Director for each of the Lazard Funds (comprised of, as of July 31, 2014, 33 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. Ms. Blassberg, who became a Director effective August 6, 2014, is an “interested person” (as defined in the Act) of the Fund, until January 1, 2015, as a result of her former position as a Partner of Debevoise & Plimpton LLP, which provides legal services to the Investment Manager. Ms. Blassberg was not involved in this representation.

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.

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
Tamar Goldstein (39)	Interim Chief Compliance Officer (July 2014) and Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) 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  Semi-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

At a meeting of the Board held on June 24-25, 2014, the Board considered the approval, for an additional annual period, of the Management Agreement between the Fund, on behalf of the Portfolios, and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Investment Manager.

Services Provided

Representatives of the Investment Manager discussed with the Board the Investment Manager’s written presentation provided in advance of the meeting addressing, among other matters, the nature, extent and quality of services that the Investment Manager provides the Fund, including a discussion of the Investment Manager and its clients (of which the Lazard Funds complex of 33 active funds comprised approximately $25 billion (as of April 30, 2014) of the approximately $169.5 billion of total assets under the management of the Investment Manager and its global affiliates as of March 31, 2014). The Investment Manager’s representatives noted that the Investment Manager believes that the Fund continues to benefit significantly from the infrastructure and services provided by the Investment Manager’s global in-

vestment management platform, technology, operational and legal and compliance support and significant marketing infrastructure across broad distribution channels. The Directors also considered information provided by the Investment Manager regarding its personnel, resources, financial condition and experience; the Fund’s distribution channels and the relationships with various intermediaries; marketing activities on behalf of the Portfolios, as applicable; and Portfolio asset flows and the growth or decline in asset levels.

The Directors considered the various services provided by the Investment Manager including the Investment Manager’s research and portfolio management capabilities and oversight of day-to-day operations, including 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 Fund benefits from the services and infrastructure provided by the Investment Manager. The Directors accepted management’s assertion that such services and infrastructure are greater than those typically provided to a $25 billion fund complex not managed by a large, global firm such as the Investment Manager.

Comparative Management Fee, Expense Ratio and Performance Information

The Directors reviewed comparative management fee, expense ratio and performance (through March 31, 2014) information prepared by Strategic Insight, noting the limitations of certain Strategic Insight comparison groups (each, a “Group”) and broader Morningstar categories (each, a “Category”).

Management Fees and Expense Ratios. The Directors discussed the management fees and expense ratios for each Portfolio. They noted the methodology and assumptions used by Strategic Insight, including that management fee comparisons for the Portfolios and the rankings used therein include administrative fees (which, for the Portfolios, include a fixed dollar fee paid to the Fund’s third party administrator that is not affiliated with the Investment Manager).

In reviewing Strategic Insight’s analysis, it was noted that, for at least one share class of the Portfolios, contractual management fees were at or below the median of the relevant Group. It also was noted that, for at least one share class of each Portfolio, expense ratios were at or below the medians of those of the funds in the relevant Group. The Directors

Semi-Annual Report  25

considered that the Investment Manager continues to voluntarily enter into fee waiver and expense reimbursement agreements for the Portfolios and that the Investment Manager was waiving management fees and/or reimbursing expenses for the Portfolios.

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

Performance. Strategic Insight’s performance analyses compared the Capital Allocator Opportunistic Strategies Portfolio’s investment returns to those of the funds in the relevant Group and Category over measurement periods up to ten years through March 31, 2014. The Directors noted that one or both share classes of Capital Allocator Opportunistic Strategies Portfolio was at or above the median of the Group and/or Category for most periods.

Investment Manager Profitability and Economies of Scale

The Directors reviewed information prepared by the Investment Manager for the Capital Allocator Opportunistic Strategies Portfolio concerning profits realized by the Investment Manager and its affiliates resulting from the Management Agreement, calculated using the actual revenues received for the calendar year ended December 31, 2013 and the Investment Manager’s cost allocation methodology to compute an estimate of the Portfolio’s expenses. The Investment Manager’s representatives stated that neither the Investment Manager nor its affiliates receive any significant

indirect benefits from the Investment Manager acting as investment adviser to the Portfolios. The Investment Manager’s representatives stated that the broker-dealer that is treated as an affiliate of the Investment Manager did not effect trades for the Portfolios in the period under review, and the Investment Manager did not benefit from money flow (float) in connection with transactions in the Portfolios’ shares. The Investment Manager’s representatives reviewed with the Board information provided on the Investment Manager’s brokerage practices and the Portfolios’ brokerage allocation, commission payments and soft dollar commissions and benefits. The representatives of the Investment Manager reminded the Board that the Investment Manager is continuing to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the Fund does not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Portfolios’ Open Shares.

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

26  Semi-Annual Report

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 renewal of the Management Agreement. Based on its discussions and considerations as described above, the Board made the following conclusions and determinations.

• The Board concluded that the nature, extent and quality of the services provided by the Investment Manager are adequate and appropriate, noting the benefits of advisory and research services and other services and infrastructure (as discussed above) associated with an approximately $169.5 billion global asset management business.

• The Board was generally satisfied with the overall performance of the Capital Allocator Opportunistic Strategies Portfolio.

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

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

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

Semi-Annual Report  27

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 Iron Street
Boston, Massachusetts 02210

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

Deloitte & Touche LLP
30 Rockefeller Plaza
New York, New York 10112-0015

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.

Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. INVESTMENTS

Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

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

ITEM 11. CONTROLS AND PROCEDURES.

(a)     The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

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

ITEM 12. EXHIBITS.

(a)(1)    Not applicable.

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

(a)(3)    Not applicable.

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

SIGNATURES

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

The Lazard Funds, Inc.

By	/s/ Charles L. Carroll
	Charles L. Carroll
	Chief Executive Officer

Date September 5, 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	September 5, 2014

By	/s/ Stephen St. Clair
	Stephen St. Clair
	Chief Financial Officer
Date	September 5, 2014