N-CSR 1 c80402_ncsr.htm

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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-06312

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

30 Rockefeller Plaza

New York, New York 10112
(Address of principal executive offices) (Zip code)

Nathan A. Paul, Esq.

Lazard Asset Management LLC

30 Rockefeller Plaza

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

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

Date of fiscal year end: 12/31

Date of reporting period: 12/31/14

ITEM 1. REPORTS TO STOCKHOLDERS.

Lazard Funds Annual Report

December 31, 2014

Alternative Funds

Lazard Fundamental Long/Short Portfolio

Lazard Enhanced Opportunities Portfolio

Lazard Master Alternatives 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		Portfolios of Investments

8		Lazard Fundamental Long/Short Portfolio

11		Lazard Enhanced Opportunities Portfolio

12		Lazard Master Alternatives Portfolio

15		Notes to Portfolios of Investments

16		Statements of Assets and Liabilities

17		Statements of Operations

18		Statements of Changes in Net Assets

19		Financial Highlights

22		Notes to Financial Statements

29		Report of Independent Registered Public Accounting Firm

30		Board of Directors and Officers Information

32		Tax and Other Information

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

Annual Report 1

The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

In 2014, global equity markets were supported by low interest rates and declining bond yields but their overall gains were tempered by growth concerns and currency volatility. US stocks gained steadily over the year despite the discontinuation of US quantitative easing in October. International equity markets rose slightly in local currency terms but, for US dollar-based investors, returns were negative due to the dollar’s broad strength. Political and economic instability in Ukraine, Russia, and Greece, along with the effects of weaker commodity prices, held back returns in emerging markets. On the other hand, progress on structural reforms could unlock pent-up potential in countries such as India, Indonesia, and China.

Globally, fixed income markets rallied as interest rates in many countries trended lower for most of 2014. In the emerging markets, US dollar-denominated debt outperformed local currency debt for a fourth consecutive year. Meanwhile, the decline in the price of oil led to significant underperformance in the debt of countries that are heavily dependent on oil exports. In general, lower oil prices should be economically favorable for many countries as it can boost consumer spending and strengthen national finances.

At Lazard Asset Management LLC, 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, achieve your financial goals. Over the years, we understand that your investment preferences may change as markets evolve and as asset classes mature. With this in mind, we launched seven new mutual funds in 2014 across the alternatives, equity, and currency asset classes. We believe these funds may offer our clients’ new avenues of return. As always, we appreciate your continued confidence in our investment management capabilities, and feel privileged that you have turned to Lazard for your investment needs.

Sincerely,

Lazard Asset Management LLC

2 Annual Report

The Lazard Funds, Inc. Investment Overview

US Equities

US markets rose during the period as the underlying foundations of the US economic recovery continued to strengthen. Deleveraging resumed with debt-to-GDP ratios improving for the private and public sectors, and household assets and consumer net worth continuing to rise. Job growth also accelerated, with non-farm payrolls growing by over 200,000 per month from May to December, reducing the unemployment rate to 5.6%, below its long-term average. Oil prices fell to multi-year lows in the latter-half of the period, a development that many speculate will have a net-positive effect on the US economy, as cheaper gasoline prices are expected to drive consumer spending. It is important to note that tapering, which began in January, ended in October with little reaction from the market. The debate has since moved to when tightening will begin, but investors have been encouraged by comments from the US Federal Reserve that suggested that interest rates will remain low until the economic outlook shows further improvement.

Lazard Fundamental Long/Short Portfolio

For the period since inception on April 30, 2014 through December 31, 2014, the Lazard Fundamental Long/Short Portfolio’s Institutional Shares posted a total return of 14.15%, while Open Shares posted a total return of 14.05%, as compared with the 10.85% return for the S&P 500^®Index.

A long position in medical-device maker CareFusion contributed to performance, as shares rose after Becton Dickinson announced plans to acquire the company for $12.2 billion. We sold our position in October after the announcement, as the stock approached our target valuation. A long position in American Airlines also helped returns, as shares rose after the company reported quarterly earnings above expectations and management raised its earnings guidance for the year, citing better revenues and lower fuel costs. The Portfolio was also helped by a long position in Advance Auto Parts, as shares rose after the company reported quarterly earnings that exceeded expectations and management raised its guidance for the year, citing strong comparable-store sales.

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 second 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 long position in customer management services provider Convergys also hurt returns, as shares fell after the company reported quarterly earnings below expectations, with slow revenue growth impacting results. We sold our position in August as synergies from the company’s acquisition of Stream failed to materialize as we had expected. A long position in Eastman Chemical also detracted from performance, as shares fell amid declining oil prices.

In aggregate, the Portfolio’s short positions modestly detracted from returns, as the market rose 10.8% since the Portfolio’s inception (04/30/14) through year end. Among the larger short detractors was a position in apparel retailer American Eagle Outfitters. Shares rose after the company reported second quarter earnings that exceeded expectations, driven by better-than-expected sales and expense control. We exited our position in August, as we saw opportunities with better risk/reward elsewhere. The Portfolio was also hurt by a short position in mutual fund company Eaton Vance, as shares rose after the company reported strong fourth quarter earnings, led by higher investment fees.

New Funds Launched: Lazard Enhanced Opportunities Portfolio and Lazard Master Alternatives Portfolio

We are pleased to announce the December 31, 2014 launch of two new alternatives funds in the Lazard Funds family, namely the Lazard Enhanced Opportunities Portfolio and the Lazard Master Alternatives Portfolio. While Portfolio commentaries are not available for this shareholder report because of the December 31 launch dates, we look forward to providing you with performance reviews of these Portfolios in the June 30, 2015 Lazard Funds Semi-Annual Report.

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, such Portfolio’s returns would have been lower. Past performance is not indicative, or a guarantee, of future results.

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

The views of the Investment Manager and the securities described in this report are as of December 31, 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 objective, strategies, risks and fees.

4 Annual Report

The Lazard Funds, Inc. Performance Overview

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 December 31, 2014

	Since
	Inception		†
Institutional Shares**		14.15%
Open Shares**		14.05%
S&P 500 Index		10.85%
HFRX Equity Hedge Index		1.61%

*	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.

Annual Report 5

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

Expense Example

As a shareholder in a Portfolio of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from July 1, 2014 through December 31, 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 7/1/14		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 - 12/31/14		Annualized Expense Ratio During Period 7/1/14 - 12/31/14

Fundamental Long/Short†
Institutional Shares
Actual	$	1,000.00	$	1,141.50	$	17.25		3.20	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,009.07	$	16.21		3.20	%
Open Shares
Actual	$	1,000.00	$	1,140.50	$	18.32		3.40	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,008.07	$	17.21		3.40	%

*	Expenses are equal to the annualized expense ratio of each Share class multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period).
^†	The annualized expense ratios include broker expense and dividend expense on securities sold short.

6 Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2014

	Lazard Fundamental Long/Short Portfolio						Lazard Enhanced Opportunities			Lazard Master Alternatives Portfolio
Sector*	Long			Short			Portfolio			Long			Short

Consumer Discretionary		12.6	%		-14.6	%		—	%		19.7	%		-13.2	%
Consumer Staples		—			-6.9			9.1			2.6			-11.4
Energy		0.9			-4.5			—			1.1			-3.5
Financials		12.4			-25.8			—			24.8			-20.1
Health Care		12.8			-17.3			—			18.9			-20.2
Industrials		8.3			-12.6			45.5			11.8			-13.3
Information Technology		9.2			-15.4			—			11.3			-14.8
Materials		3.5			-2.9			45.4			7.6			-3.5
Telecommunication Services		—			—			—			1.3			—
Utilities		—			—			—			0.9			—
Short-Term Investments		40.3			—			—			—			—
Total Investments		100.0	%		-100.0	%		100.0	%		100.0	%		-100.0	%

*	Represents percentage of total investments.

Annual Report 7

The Lazard Funds, Inc. Portfolios of Investments December 31, 2014

Description	Shares		Value

Lazard Fundamental Long/Short Portfolio

Common Stocks \| 92.3%

Agriculture \| 1.9%
Monsanto Co.		7,965	$	951,579

Banking \| 4.9%
Fifth Third Bancorp		45,831		933,807
Signature Bank (a), (c)		12,642		1,592,386
				2,526,193
Chemicals \| 3.6%
Eastman Chemical Co. (c)		17,910		1,358,653
Tronox, Ltd., Class A		19,722		470,961
				1,829,614
Commercial Services \| 5.3%
Blackhawk Network Holdings, Inc. (a), (c)		31,964		1,204,723
MDC Partners, Inc., Class A		67,150		1,525,648
				2,730,371
Energy Exploration & Production \| 0.7%
EQT Corp.		4,648		351,854

Energy Services \| 0.8%
HollyFrontier Corp.		10,545		395,227

Financial Services \| 10.3%
American Express Co. (c)		19,664		1,829,539
Intercontinental Exchange, Inc. (c)		5,311		1,164,649
MasterCard, Inc., Class A		6,202		534,364
TAL International Group, Inc.		16,130		702,784
The Charles Schwab Corp. (c)		34,823		1,051,306
				5,282,642
Health Services \| 5.7%
Brookdale Senior Living, Inc. (a), (c)		25,881		949,056
Quintiles Transnational Holdings, Inc. (a), (c)		22,728		1,337,997
UnitedHealth Group, Inc.		6,398		646,774
				2,933,827
Insurance \| 6.3%
The Hartford Financial Services Group, Inc. (c)		40,921		1,705,997
Voya Financial, Inc. (c)		35,527		1,505,634
				3,211,631
Leisure & Entertainment \| 2.8%
Viacom, Inc., Class B (c)		18,978		1,428,094

Description	Shares		Value

Manufacturing \| 6.6%
Honeywell International, Inc. (c)		20,124	$	2,010,790
Joy Global, Inc.		8,554		397,932
Rockwell Automation, Inc.		8,600		956,320
				3,365,042
Medical Products \| 4.5%
McKesson Corp. (c)		6,528		1,355,082
Natus Medical, Inc. (a)		26,862		968,107
				2,323,189
Pharmaceutical & Biotechnology \| 9.5%
Mylan, Inc. (a), (c)		25,279		1,424,977
Teva Pharmaceutical Industries, Ltd. Sponsored ADR (c)		25,362		1,458,569
United Therapeutics Corp. (a)		7,255		939,450
Vertex Pharmaceuticals, Inc. (a)		8,445		1,003,266
				4,826,262
Retail \| 13.6%
Advance Auto Parts, Inc. (c)		8,751		1,393,859
AutoZone, Inc. (a), (c)		1,741		1,077,871
Dick’s Sporting Goods, Inc. (c)		32,263		1,601,858
Kohl’s Corp. (c)		29,609		1,807,333
Ross Stores, Inc. (c)		11,510		1,084,933
				6,965,854
Semiconductors & Components \| 5.2%
Maxim Integrated Products, Inc.		15,762		502,335
NXP Semiconductors NV (a), (c)		14,454		1,104,286
Xerox Corp. (c)		76,277		1,057,199
				2,663,820
Technology \| 2.4%
Citrix Systems, Inc. (a), (c)		18,929		1,207,670

Technology Hardware \| 3.3%
Cisco Systems, Inc.		26,563		738,850
EMC Corp.		30,991		921,672
				1,660,522
Transportation \| 4.9%
American Airlines Group, Inc. (c)		28,699		1,539,127
XPO Logistics, Inc. (a)		23,626		965,831
				2,504,958
Total Common Stocks (Identified cost $45,329,229)				47,158,349

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

8 Annual Report

Description	Shares			Value

Lazard Fundamental Long/Short Portfolio (continued)

Short-Term Investment \| 62.2%
State Street Institutional Treasury Money Market Fund (Identified cost $31,780,276)		31,780,276		$	31,780,276

Total Common Stocks and Short-Term Investment (Identified cost $77,109,505)					78,938,625

Securities Sold Short \| (56.0)%

Banking \| (3.0)%
US Bancorp		(17,401	)		(782,175	)
Valley National Bancorp		(31,096	)		(301,942	)
Westamerica Bancorp.		(9,521	)		(466,719	)
					(1,550,836	)
Chemicals \| (0.8)%
International Flavors & Fragrances, Inc.		(3,914	)		(396,723	)

Commercial Services \| (3.9)%
Fastenal Co.		(10,385	)		(493,911	)
MSC Industrial Direct Co., Inc., Class A		(5,070	)		(411,938	)
The Western Union Co.		(31,228	)		(559,293	)
WW Grainger, Inc.		(2,081	)		(530,426	)
					(1,995,568	)
Computer Software \| (1.7)%
SAP SE Sponsored ADR		(12,426	)		(865,471	)

Energy Services \| (2.5)%
Core Laboratories NV		(3,882	)		(467,160	)
Helmerich & Payne, Inc.		(6,776	)		(456,838	)
Oceaneering International, Inc.		(6,189	)		(363,975	)
					(1,287,973	)
Financial Services \| (8.1)%
Affiliated Managers Group, Inc. (a)		(2,540	)		(539,090	)
Eaton Vance Corp.		(13,624	)		(557,630	)
Manning & Napier, Inc.		(28,788	)		(397,850	)
Principal Financial Group, Inc.		(10,247	)		(532,229	)
T Rowe Price Group, Inc.		(14,733	)		(1,264,975	)
The Goldman Sachs Group, Inc.		(4,444	)		(861,381	)
					(4,153,155	)
Forest & Paper Products \| (0.9)%
Bemis Co., Inc.		(9,946	)		(449,659	)

Description	Shares			Value

Health Services \| (3.4)%
Express Scripts Holding Co. (a)		(5,541	)	$	(469,157	)
Laboratory Corp. of America Holdings (a)		(3,910	)		(421,889	)
Owens & Minor, Inc.		(15,107	)		(530,407	)
Quest Diagnostics, Inc.		(4,691	)		(314,578	)
					(1,736,031	)
Household & Personal Products \| (1.8)%
The Estee Lauder Cos., Inc., Class A		(6,783	)		(516,865	)
The Procter & Gamble Co.		(4,466	)		(406,808	)
					(923,673	)
Insurance \| (3.3)%
Assurant, Inc.		(7,935	)		(542,992	)
The Chubb Corp.		(5,527	)		(571,879	)
The Travelers Cos., Inc.		(5,265	)		(557,300	)
					(1,672,171	)
Leisure & Entertainment \| (2.2)%
CBS Corp., Class B		(12,454	)		(689,205	)
Darden Restaurants, Inc.		(7,529	)		(441,425	)
					(1,130,630	)
Manufacturing \| (3.2)%
AGCO Corp.		(9,438	)		(426,598	)
Deere & Co.		(5,559	)		(491,805	)
Terex Corp.		(12,281	)		(342,394	)
Trinity Industries, Inc.		(12,940	)		(362,449	)
					(1,623,246	)
Medical Products \| (0.9)%
Halyard Health, Inc. (a)		(10,565	)		(480,390	)

Pharmaceutical & Biotechnology \| (5.4)%
Bio-Rad Laboratories, Inc., Class A (a)		(2,262	)		(272,707	)
Gilead Sciences, Inc. (a)		(7,522	)		(709,024	)
Haemonetics Corp. (a)		(9,781	)		(366,005	)
Keryx Biopharmaceuticals, Inc. (a)		(26,173	)		(370,348	)
Pharmacyclics, Inc. (a)		(2,257	)		(275,941	)
Seattle Genetics, Inc. (a)		(9,716	)		(312,175	)
Waters Corp. (a)		(3,784	)		(426,532	)
					(2,732,732	)
Retail \| (8.0)%
Bed Bath & Beyond, Inc. (a)		(8,147	)		(620,557	)
Conn’s, Inc. (a)		(21,519	)		(402,190	)
Dillard’s, Inc., Class A		(3,057	)		(382,675	)
Nordstrom, Inc.		(5,469	)		(434,184	)
The Gap, Inc.		(16,441	)		(692,330	)
Under Armour, Inc. Class A (a)		(7,694	)		(522,423	)
Wal-Mart Stores, Inc.		(12,228	)		(1,050,141	)
					(4,104,500	)

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

Annual Report 9

Description	Shares			Value

Lazard Fundamental Long/Short Portfolio (concluded)

Semiconductors & Components \| (1.9)%
Altera Corp.		(10,980	)	$	(405,601	)
Analog Devices, Inc.		(5,499	)		(305,304	)
Linear Technology Corp.		(6,258	)		(285,365	)
					(996,270	)
Technology \| (1.6)%
Amdocs, Ltd.		(8,795	)		(410,331	)
NetScout Systems, Inc. (a)		(10,584	)		(386,739	)
					(797,070	)
Technology Hardware \| (2.3)%
Arista Networks, Inc.		(5,710	)		(346,939	)
International Business Machines Corp.		(5,190	)		(832,684	)
					(1,179,623	)

Description	Shares			Value

Transportation \| (1.1)%
United Parcel Service, Inc., Class B		(5,054	)	$	(561,853	)

Total Securities Sold Short (Proceeds $28,240,461)					(28,637,574	)

Total Investments \| 98.5% (Identified cost and short proceeds $48,869,044) (b)				$	50,301,051

Cash and Other Assets in Excess of Liabilities \| 1.5%					779,938

Net Assets \| 100.0%				$	51,080,989

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

10 Annual Report

Description	Shares		Value

Lazard Enhanced Opportunities Portfolio

Common Stocks \| 1.1%

Canada \| 0.1%
Cott Corp.		717	$	4,933

United States \| 1.0%
AK Steel Holding Corp. (a)		4,165		24,740
American Airlines Group, Inc.		463		24,831
				49,571
Total Common Stocks (Identified cost $55,076)				54,504

Description	Value

Total Investments \| 1.1% (Identified cost $55,076) (b)	$	54,504

Cash and Other Assets in Excess of Liabilities \| 98.9%		4,944,627

Net Assets \| 100.0%	$	4,999,131

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

Annual Report 11

Description	Shares		Value

Lazard Master Alternatives Portfolio (d)

Common Stocks \| 45.3%

Agriculture \| 1.1%
Monsanto Co.		1,543	$	184,342

Automotive \| 0.7%
Plastic Omnium SA (France)		4,449		120,825

Banking \| 3.9%
BNP Paribas SA (France)		1,143		67,167
China Construction Bank Corp., Class H (China)		124,000		100,604
Chongqing Rural Commercial Bank Co., Ltd. Class H (China)		101,000		61,823
Fifth Third Bancorp		7,509		152,996
Piraeus Bank SA (Greece) (a)		40,705		44,782
Signature Bank (a)		1,808		227,736
				655,108
Chemicals \| 1.2%
Eastman Chemical Co.		2,009		152,403
Tronox, Ltd., Class A		2,209		52,751
				205,154
Commercial Services \| 2.6%
Altus Group, Ltd. (Canada)		1,300		23,286
Blackhawk Network Holdings, Inc. (a)		3,589		135,269
MDC Partners, Inc., Class A		7,520		170,854
Publicis Groupe SA (France)		1,440		103,762
				433,171
Electric \| 0.4%
Infinis Energy PLC (United Kingdom)		20,417		69,940

Energy Exploration & Production \| 0.3%
EQT Corp.		566		42,846

Energy Services \| 0.3%
HollyFrontier Corp.		1,177		44,114

Financial Services \| 4.5%
American Express Co.		2,204		205,060
Capital Southwest Corp.		898		34,043
Euronext NV (Netherlands) (a)		1,496		47,732
ING Groep NV (Netherlands) (a)		6,748		87,495
Intercontinental Exchange, Inc.		596		130,697

Description	Shares		Value

MasterCard, Inc., Class A		695	$	59,881
TAL International Group, Inc.		1,807		78,731
The Charles Schwab Corp.		3,894		117,560
				761,199
Food & Beverages \| 1.2%
Associated British Foods PLC (United Kingdom)		1,110		53,930
Cott Corp. (Canada)		731		5,029
Kellogg Co.		720		47,117
Oceana Group, Ltd. (South Africa)		2,643		24,340
Sysco Corp.		1,775		70,450
				200,866
Forest & Paper Products \| 0.9%
Nampak, Ltd. (South Africa)		24,398		91,803
Pact Group Holdings, Ltd. (Australia)		14,786		52,299
				144,102
Health Services \| 2.2%
Brookdale Senior Living, Inc. (a)		2,899		106,306
Mediclinic International, Ltd. (South Africa)		4,490		38,811
Quintiles Transnational Holdings, Inc. (a)		2,550		150,119
UnitedHealth Group, Inc.		719		72,684
				367,920
Insurance \| 3.5%
Genworth MI Canada, Inc. (Canada)		700		22,281
Insurance Australia Group, Ltd. (Australia)		7,043		35,708
Prudential PLC (United Kingdom)		4,060		93,429
St James’s Place PLC (United Kingdom)		6,207		78,005
The Hartford Financial Services Group, Inc.		4,584		191,107
Voya Financial, Inc.		3,979		168,630
				589,160
Leisure & Entertainment \| 1.9%
Cineplex, Inc. (Canada)		1,500		57,880
McDonald’s Corp.		564		52,847
UBM PLC (United Kingdom)		6,803		50,774
Viacom, Inc., Class B		2,127		160,057
				321,558
Manufacturing \| 2.7%
Alstom SA (France) (a)		2,360		76,231
Honeywell International, Inc.		2,256		225,420
Joy Global, Inc.		963		44,799
Rockwell Automation, Inc.		966		107,419
				453,869

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

12 Annual Report

Description	Shares		Value

Lazard Master Alternatives Portfolio (d) (continued)

Medical Products \| 1.8%
Baxter International, Inc.		655	$	48,005
McKesson Corp.		731		151,741
Natus Medical, Inc. (a)		3,006		108,336
				308,082
Metals & Mining \| 0.3%
AK Steel Holding Corp. (a)		4,165		24,740
Western Areas, Ltd. (Australia)		6,270		19,243
				43,983
Pharmaceutical & Biotechnology \| 4.5%
Mylan, Inc. (a)		2,834		159,752
Shire PLC (United Kingdom)		344		24,339
Teva Pharmaceutical Industries, Ltd. Sponsored ADR (Israel)		4,131		237,574
United Therapeutics Corp. (a)		1,181		152,928
Vertex Pharmaceuticals, Inc. (a)		947		112,504
Zoetis, Inc.		1,793		77,153
				764,250
Retail \| 4.6%
Advance Auto Parts, Inc.		981		156,254
AutoZone, Inc. (a)		195		120,726
Dick’s Sporting Goods, Inc.		3,620		179,733
Kohl’s Corp.		3,315		202,347
Ross Stores, Inc.		1,287		121,313
				780,373
Semiconductors & Components \| 2.1%
Maxim Integrated Products, Inc.		3,294		104,980
NXP Semiconductors NV (Netherlands) (a)		1,621		123,844
Xerox Corp.		8,552		118,531
				347,355
Technology \| 0.8%
Citrix Systems, Inc. (a)		2,123		135,447

Technology Hardware \| 1.4%
Cisco Systems, Inc.		2,969		82,583
EMC Corp.		3,473		103,287
MacDonald Dettwiler & Associates, Ltd. (Canada)		700		57,208
				243,078
Telecommunications \| 0.6%
Koninklijke KPN NV (Netherlands)		29,976		94,508

Description	Shares			Value

Transportation \| 1.8%
American Airlines Group, Inc.		3,676		$	197,144
XPO Logistics, Inc. (a)		2,650			108,332
					305,476
Total Common Stocks (Identified cost $7,689,576)					7,616,726

Securities Sold Short \| (24.4)%

Banking \| (1.0)%
US Bancorp		(1,955	)		(87,877	)
Valley National Bancorp		(3,503	)		(34,014	)
Westamerica Bancorp.		(1,065	)		(52,207	)
					(174,098	)
Chemicals \| (0.6)%
International Flavors & Fragrances, Inc.		(926	)		(93,859	)

Commercial Services \| (1.7)%
Fastenal Co.		(1,166	)		(55,455	)
MSC Industrial Direct Co., Inc., Class A		(875	)		(71,094	)
The Western Union Co.		(3,506	)		(62,792	)
WW Grainger, Inc.		(352	)		(89,721	)
					(279,062	)
Computer Software \| (0.6)%
SAP SE Sponsored ADR (Germany)		(1,395	)		(97,162	)

Energy Services \| (0.9)%
Core Laboratories NV (Netherlands)		(435	)		(52,348	)
Helmerich & Payne, Inc.		(758	)		(51,104	)
Oceaneering International, Inc.		(694	)		(40,814	)
					(144,266	)
Financial Services \| (2.8)%
Affiliated Managers Group, Inc. (a)		(283	)		(60,064	)
Eaton Vance Corp.		(1,523	)		(62,336	)
Manning & Napier, Inc.		(3,214	)		(44,417	)
Principal Financial Group, Inc.		(1,154	)		(59,939	)
T Rowe Price Group, Inc.		(1,652	)		(141,841	)
The Goldman Sachs Group, Inc.		(499	)		(96,721	)
					(465,318	)
Food & Beverages \| (0.8)%
The Hain Celestial Group, Inc. (a)		(828	)		(48,264	)
Want Want China Holdings, Ltd. (China)		(74,000	)		(95,606	)
					(143,870	)
Forest & Paper Products \| (0.3)%
Bemis Co., Inc.		(1,120	)		(50,635	)

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

Annual Report 13

Description	Shares			Value

Lazard Master Alternatives Portfolio (d) (concluded)

Health Services \| (1.1)%
Express Scripts Holding Co. (a)		(623	)	$	(52,750	)
Laboratory Corp. of America Holdings (a)		(438	)		(47,260	)
Owens & Minor, Inc.		(1,696	)		(59,547	)
Quest Diagnostics, Inc.		(523	)		(35,072	)
					(194,629	)
Household & Personal Products \| (1.2)%
The Estee Lauder Cos., Inc., Class A		(1,480	)		(112,776	)
The Procter & Gamble Co.		(1,023	)		(93,185	)
					(205,961	)
Insurance \| (1.1)%
Assurant, Inc.		(893	)		(61,108	)
The Chubb Corp.		(621	)		(64,255	)
The Travelers Cos., Inc.		(591	)		(62,557	)
					(187,920	)
Leisure & Entertainment \| (0.7)%
CBS Corp., Class B		(1,392	)		(77,033	)
Darden Restaurants, Inc.		(845	)		(49,543	)
					(126,576	)
Manufacturing \| (1.6)%
AGCO Corp.		(1,063	)		(48,048	)
Deere & Co.		(1,561	)		(138,102	)
Terex Corp.		(1,377	)		(38,391	)
Trinity Industries, Inc.		(1,457	)		(40,810	)
					(265,351	)
Medical Products \| (0.3)%
Halyard Health, Inc. (a)		(1,185	)		(53,882	)

Pharmaceutical & Biotechnology \| (3.4)%
Bio-Rad Laboratories, Inc., Class A (a)		(252	)		(30,381	)
Gilead Sciences, Inc. (a)		(844	)		(79,555	)
Haemonetics Corp. (a)		(1,091	)		(40,825	)
iShares Nasdaq Biotechnology ETF		(638	)		(193,537	)
Keryx Biopharmaceuticals, Inc. (a)		(4,814	)		(68,118	)
Pharmacyclics, Inc. (a)		(357	)		(43,647	)
Sanofi (France)		(309	)		(27,913	)
Seattle Genetics, Inc. (a)		(1,505	)		(48,356	)
Waters Corp. (a)		(422	)		(47,568	)
					(579,900	)

Description	Shares			Value

Retail \| (3.2)%
Bed Bath & Beyond, Inc. (a)		(911	)	$	(69,391	)
Conn’s, Inc. (a)		(2,425	)		(45,323	)
Dillard’s, Inc., Class A		(544	)		(68,098	)
Hermes International (France)		(13	)		(4,587	)
LVMH Moet Hennessy Louis Vuitton SA (France)		(273	)		(42,790	)
Nordstrom, Inc.		(610	)		(48,428	)
The Gap, Inc.		(1,840	)		(77,482	)
Under Armour, Inc. Class A (a)		(861	)		(58,462	)
Wal-Mart Stores, Inc.		(1,368	)		(117,484	)
					(532,045	)
Semiconductors & Components \| (1.1)%
Altera Corp.		(1,228	)		(45,362	)
Analog Devices, Inc.		(1,130	)		(62,738	)
Linear Technology Corp.		(705	)		(32,148	)
NVIDIA Corp.		(2,060	)		(41,303	)
					(181,551	)
Technology \| (0.8)%
Amdocs, Ltd.		(987	)		(46,049	)
NetScout Systems, Inc. (a)		(2,436	)		(89,011	)
					(135,060	)
Technology Hardware \| (0.8)%
Arista Networks, Inc.		(641	)		(38,947	)
International Business Machines Corp.		(583	)		(93,537	)
					(132,484	)
Transportation \| (0.4)%
United Parcel Service, Inc., Class B		(568	)		(63,145	)

Total Securities Sold Short (Proceeds $4,145,623)					(4,106,774	)

Total Investments \| 20.9% (Identified cost and short proceeds $3,543,953) (b)				$	3,509,952

Cash and Other Assets in Excess of Liabilities \| 79.1%					13,321,080

Net Assets \| 100.0%				$	16,831,032

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

14 Annual Report

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2014

(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) were as follows:

Portfolio	Aggregate Cost and Short Proceeds		Aggregate Gross Unrealized Appreciation		Aggregate Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)

Fundamental Long/Short Portfolio	$	77,230,656	$	1,941,441	$	233,472	$	1,707,969
Enhanced Opportunities Portfolio		55,076		—		572		(572	)
Master Alternatives Portfolio		7,689,576		48,754		121,604		(72,850	)

(c)	Some or all of this security position has been pledged to cover collateral requirements on securities sold short.
(d)	Security country is United States unless otherwise noted.

Security Abbreviations:

ADR

—

American Depositary Receipt

ETF

—

Exchange-Traded Fund

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

	Lazard
	Enhanced
	Opportunities
Industry*	Portfolio

Food & Beverages		0.1	%
Metals & Mining		0.5
Transportation		0.5
Total Investments		1.1	%

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

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

Annual Report 15

The Lazard Funds, Inc. Statements of Assets and Liabilities

	Lazard			Lazard			Lazard
	Fundamental Long/Short			Enhanced Opportunities			Master Alternatives
December 31, 2014	Portfolio			Portfolio			Portfolio

ASSETS
Investments in securities, at value	$	78,938,625		$	54,504		$	7,616,726
Receivables for:
Investments sold		3,766,712			20,027			4,165,538
Capital stock sold		3,163,895			5,000,000			16,866,000
Dividends and interest		25,792			—			—
Amount due from Investment Manager (Note 3)		—			9,266			8,711
Deferred offering costs (Note 2(g))		32,045			63,941			86,733
Total assets		85,927,069			5,147,738			28,743,708

LIABILITIES
Securities sold short, at value		28,637,574			—			4,106,774
Due to custodian		6,459			—			—
Payables for:
Management fees		30,290			—			—
Accrued distribution fees		1,118			—			—
Investments purchased		6,081,706			75,166			7,709,669
Dividends on securities sold short		18,048			—			—
Capital stock redeemed		586			—			—
Other accrued expenses and payables		70,299			73,441			96,233
Total liabilities		34,846,080			148,607			11,912,676
Net assets	$	51,080,989		$	4,999,131		$	16,831,032

NET ASSETS
Paid in capital	$	49,295,760		$	4,999,766		$	16,864,629
Undistributed (distributions in excess of) net investment income (loss)		(201	)		—			582
Accumulated net realized gain (loss)		353,423			(63	)		(64	)
Net unrealized appreciation (depreciation) on:
Investments		1,829,120			(572	)		(72,850	)
Foreign currency		—			—			(114	)
Securities sold short		(397,113	)		—			38,849
Net assets	$	51,080,989		$	4,999,131		$	16,831,032

Institutional Shares
Net assets	$	40,272,631		$	4,899,149		$	16,332,072
Shares of capital stock outstanding*		3,576,865			490,000			1,636,600
Net asset value, offering and redemption price per share	$	11.26		$	10.00		$	9.98

Open Shares
Net assets	$	10,808,358		$	99,982		$	498,960
Shares of capital stock outstanding*		961,228			10,000			50,000
Net asset value, offering and redemption price per share	$	11.24		$	10.00		$	9.98

Cost of investments in securities	$	77,109,505		$	55,076		$	7,689,576
Proceeds received from securities sold short	$	28,240,461		$	—		$	4,145,623

* $0.001 par value, 6,450,000,000 shares authorized for the Portfolios in total.

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

16 Annual Report

The Lazard Funds, Inc. Statements of Operations

For the Period Ended December 31, 2014	Lazard Fundamental Long/Short Portfolio (a)			Lazard Enhanced Opportunities Portfolio (b)			Lazard Master Alternatives Portfolio (b)

Investment Income (Loss)
Income
Dividends	$	105,563		$	—		$	—
Interest		1,038			—			—
Total investment income*		106,601			—			—

Expenses
Management fees (Note 3)		119,484			—			—
Custodian fees		60,812			—			—
Amortization of offering costs (Note 2(g))		55,213			—			—
Professional services		46,649			9,500			9,500
Administration fees		34,215			—			—
Shareholders’ services		19,739			—			—
Organization expenses		5,451			—			—
Registration fees		2,061			—			—
Distribution fees (Open Shares)		1,817			—			—
Shareholders’ reports		1,264			—			—
Directors’ fees and expenses		195			—			—
Other		837			—			—
Total gross expenses before expenses on securities sold short		347,737			—			—
Broker expense on securities sold short		52,282			—			—
Dividend expense on securities sold short		75,577			—			—
Total gross expenses		475,596			9,500			9,500
Management fees waived and expenses reimbursed		(179,285	)		(9,266	)		(8,711	)
Administration and shareholders’ services fees waived		(21,548	)		—			—
Total net expenses		274,763			234			789
Net investment loss		(168,162	)		(234	)		(789	)

Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Securities Sold Short
Net realized gain (loss) on:
Investments		1,100,188			(63	)		(64	)
Securities sold short		(29,570	)		—			—
Total net realized gain (loss) on investments and securities sold short		1,070,618			(63	)		(64	)
Net change in unrealized appreciation (depreciation) on:
Investments		1,829,120			(572	)		(72,850	)
Foreign currency		—			—			(114	)
Securities sold short		(397,113	)		—			38,849
Total net change in unrealized appreciation (depreciation) on investments, foreign currency and securities sold short		1,432,007			(572	)		(34,115	)
Net realized and unrealized gain (loss) on investments, foreign currency and securities sold short		2,502,625			(635	)		(34,179	)
Net increase (decrease) in net assets resulting from operations	$	2,334,463		$	(869	)	$	(34,968	)
* Net of foreign withholding taxes of	$	2,378		$	—		$	—

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

(b) As the Portfolio commenced operations on December 31, 2014, it did not earn any income, nor incur any expense other than professional services during the period presented.

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

Annual Report 17

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

	Lazard Fundamental			Lazard Enhanced			Lazard Master
	Long/Short Portfolio			Opportunities Portfolio			Alternatives Portfolio
	Period Ended			Period Ended			Period Ended
	December 31, 2014 (a)			December 31, 2014 (b)			December 31, 2014 (b)

Increase (Decrease) in Net Assets
Operations
Net investment loss	$	(168,162	)	$	(234	)	$	(789	)
Net realized gain (loss) on investments and securities sold short		1,070,618			(63	)		(64	)
Net change in appreciation (depreciation) on investments, foreign currency and securities sold short		1,432,007			(572	)		(34,115	)
Net increase (decrease) in net assets resulting from operations		2,334,463			(869	)		(34,968	)

Distributions to shareholders
From net realized gains
Institutional Shares		(419,620	)		—			—
Open Shares		(131,039	)		—			—
Net decrease in net assets resulting from distributions		(550,659	)		—			—

Capital stock transactions
Net proceeds from sales
Institutional Shares		38,830,731			4,900,000			16,366,000
Open Shares		10,626,369			100,000			500,000
Net proceeds from reinvestment of distributions
Institutional Shares		129,090			—			—
Open Shares		130,605			—			—
Cost of shares redeemed
Institutional Shares		(383,317	)		—			—
Open Shares		(36,299	)		—			—
Net increase in net assets from capital stock transactions		49,297,179			5,000,000			16,866,000

Redemption fees (Note 2(i))
Open Shares		6			—			—
Net increase in net assets from redemption fees		6			—			—
Total increase in net assets		51,080,989			4,999,131			16,831,032
Net assets at beginning of period		—			—			—
Net assets at end of period*	$	51,080,989		$	4,999,131		$	16,831,032
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	(201	)	$	—		$	582
(a) The Portfolio commenced operations on April 30, 2014.

(b) The Portfolio commenced operations on December 31, 2014.

Shares issued and redeemed Institutional Shares
Shares outstanding at beginning of period		—			—			—
Shares sold		3,599,400			490,000			1,636,600
Shares issued to shareholders from reinvestment of distributions		11,454			—			—
Shares redeemed		(33,989	)		—			—
Net increase		3,576,865			490,000			1,636,600
Shares outstanding at end of period		3,576,865			490,000			1,636,600

Open Shares
Shares outstanding at beginning of period		—			—			—
Shares sold		952,892			10,000			50,000
Shares issued to shareholders from reinvestment of distributions		11,599			—			—
Shares redeemed		(3,263	)		—			—
Net increase		961,228			10,000			50,000
Shares outstanding at end of period		961,228			10,000			50,000

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

18 Annual Report

The Lazard Funds, Inc. Financial Highlights

LAZARD FUNDAMENTAL LONG/SHORT PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	For the Period 4/30/14* to 12/31/14

Institutional Shares
Net asset value, beginning of period	$	10.00
Income (loss) from investment operations:
Net investment loss (a)		(0.14	)
Net realized and unrealized gain		1.55
Total from investment operations		1.41
Less distributions from:
Net realized gains		(0.15	)
Total distributions		(0.15	)
Net asset value, end of period	$	11.26

Total Return (b)		14.15	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	40,273
Ratios to average net assets (c):
Net expenses		3.20	%
Gross expenses		5.51	%
Gross expenses, excluding expenses on securities sold short		4.01	%
Net investment loss		-1.94	%
Portfolio turnover rate:
Excluding securities sold short		132	%
Including securities sold short		277	%

Selected data for a share of capital stock outstanding throughout the period	For the Period 4/30/14* to 12/31/14

Open Shares
Net asset value, beginning of period	$	10.00
Income (loss) from investment operations:
Net investment loss (a)		(0.17	)
Net realized and unrealized gain		1.56
Total from investment operations		1.39
Less distributions from:
Net realized gains		(0.15	)
Total distributions		(0.15	)
Redemption fees		—	(d)
Net asset value, end of period	$	11.24

Total Return (b)		14.05	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	10,808
Ratios to average net assets (c):
Net expenses		3.41	%
Gross expenses		6.28	%
Gross expenses, excluding expenses on securities sold short		4.82	%
Net investment loss		-2.34	%
Portfolio turnover rate:
Excluding securities sold short		132	%
Including securities sold short		277	%

*	The Portfolio commenced operations on April 30, 2014.
(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)	Amount is less than $0.01 per share.

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

Annual Report 19

LAZARD ENHANCED OPPORTUNITIES PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	Period Ended 12/31/14*

Institutional Shares
Net asset value, beginning of period	$	10.00
Loss from investment operations:
Net investment loss		—	(a)
Net realized and unrealized loss		—	(a)
Total from investment operations		—	(a)
Net asset value, end of period	$	10.00

Total Return (b)		0.00	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	4,899
Ratios to average net assets (c):
Net expenses		1.70	%
Gross expenses		69.35	%(d)
Net investment loss		-1.70	%
Portfolio turnover rate		37	%

Selected data for a share of capital stock outstanding throughout the period	Period Ended 12/31/14*

Open Shares
Net asset value, beginning of period	$	10.00
Loss from investment operations:
Net investment loss		—	(a)
Net realized and unrealized loss		—	(a)
Total from investment operations		—	(a)
Net asset value, end of period	$	10.00

Total Return (b)		0.00	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	100
Ratios to average net assets (c):
Net expenses		1.95	%
Gross expenses		69.36	%(d)
Net investment loss		-1.95	%
Portfolio turnover rate		37	%

*	The Portfolio commenced operations on December 31, 2014.
(a)	Amount is less than $0.01 per share.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursement by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
(c)	Annualized for a period of less than one year.
(d)	Gross expense ratio was the result of the Portfolio being in existence for one day during the period ended December 31, 2014.

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

20 Annual Report

LAZARD MASTER ALTERNATIVES PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	Period Ended 12/31/14*

Institutional Shares
Net asset value, beginning of period	$	10.00
Loss from investment operations:
Net investment loss		—	(a)
Net realized and unrealized loss		(0.02	)
Total from investment operations		(0.02	)
Net asset value, end of period	$	9.98

Total Return (b)		-0.20	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	16,332
Ratios to average net assets (c):
Net expenses		1.70	%
Gross expenses		20.60	%(d)
Net investment loss		-1.70	%
Portfolio turnover rate:
Excluding securities sold short		0	%(e)
Including securities sold short		36	%

Selected data for a share of capital stock outstanding throughout the period	Period Ended 12/31/14*

Open Shares
Net asset value, beginning of period	$	10.00
Loss from investment operations:
Net investment loss		—	(a)
Net realized and unrealized loss		(0.02	)
Total from investment operations		(0.02	)
Net asset value, end of period	$	9.98

Total Return (b)		-0.20	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	499
Ratios to average net assets (c):
Net expenses		1.95	%
Gross expenses		20.60	%(d)
Net investment loss		-1.95	%
Portfolio turnover rate:
Excluding securities sold short		0	%(e)
Including securities sold short		36	%

*	The Portfolio commenced operations on December 31, 2014.
(a)	Amount is less than $0.01 per share.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursement by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
(c)	Annualized for a period of less than one year.
(d)	Gross expense ratio was the result of the Portfolio being in existence for one day during the period ended December 31, 2014.
(e)	Amount is less than 1%.

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

Annual Report 21

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2014

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 thirty-two no-load portfolios (each referred to as a “Portfolio”), as follows: Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Small Cap Equity Growth Portfolio (commenced investment operations on December 31, 2014), Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard International Equity Portfolio, Lazard International Equity Concentrated Portfolio (commenced investment operations on August 29, 2014), Lazard International Equity Select Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Small Cap Equity Portfolio, Lazard Global Equity Select Portfolio, Lazard Global Strategic Equity Portfolio (commenced investment operations on August 29, 2014), 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, Lazard US Short Duration Fixed Income 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, Lazard Fundamental Long/Short Portfolio (commenced investment operations on April 30, 2014), Lazard Enhanced Opportunities Portfolio (commenced investment operations on December 31, 2014), Lazard Master Alternatives Portfolio (commenced investment operations on December 31, 2014), Lazard Capital Allocator Opportunistic Strategies Portfolio, and Lazard Global Dynamic Multi Asset Portfolio (formerly, Lazard Multi-Asset Targeted Volatility Portfolio). All Portfolios, other than US Equity Concentrated, International Equity Concentrated, Emerging Markets Debt, Emerging Markets Income, Explorer Total Return, US Realty Equity, Global Realty Equity, Fundamental Long/Short and Enhanced Opportunities Portfolios, are operated as “diversified” funds, as defined in the Act. Global Dynamic Multi Asset Portfolio had not commenced operations as of

December 31, 2014. This report includes only the financial statements of Fundamental Long/Short, Enhanced Opportunities and Master Alternatives 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 December 31, 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 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.

The Valuation Committee of the Investment Manager, which meets periodically and acts pursuant to delegated authority from the Board of Directors (the “Board”), may eval-

22 Annual Report

uate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Investment Manager’s portfolio managers/analysts also will be considered.

If a significant event materially affecting the value of securities occurs between the close of the exchange or market on which the security is principally traded and the time when a Portfolio’s NAV is calculated, or when current market quotations otherwise are determined not to be readily available or reliable (including restricted or other illiquid securities such as certain derivative instruments), such securities will be valued at their fair value as determined by, or in accordance with procedures approved by, the Board. The fair value of non-US securities may be determined with the assistance of an independent pricing service using correlations between the movement of prices of such securities and indices of US securities and other appropriate indicators, such as closing market prices of relevant ADRs or futures contracts. Non-US securities may trade on days when a Portfolio is not open for business, thus affecting the value of the Portfolio’s assets on days when Portfolio shareholders may not be able to buy or sell Portfolio shares.

The effect of using fair value pricing is that the NAV of a Portfolio will reflect the affected securities’ values as determined in the judgment of the Board or its designee instead of being determined by the market. Using a fair value pricing methodology to price securities may result in a value that is different from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ NAVs.

(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Dividend income is recorded on the ex-dividend date and interest income is accrued daily.

gains concurrent with the recognition of income earned or capital gains (realized and unrealized) from the applicable portfolio securities.

(c) Short Sales—Certain Portfolios may sell securities short. A short sale is a transaction in which a 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. A 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 a 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.

Proceeds from short sales are generally retained in cash accounts or invested in securities that are cash equivalents. With regard to securities borrowed as of December 31, 2014 pursuant to short sale arrangements, the Portfolios have a right to set off any assets held (including the borrowed securities) or obligations owed to the lender (State Street Bank and Trust Company), in the event of the lender’s default, against any obligations owed by the lender to the Portfolios under any agreement or collateral document, including the collateral value of the Securities Loan Collateral, as that term is defined in the Securities Lending and Services Agreement between the Portfolios and the lender. At December 31, 2014, Fundamental Long/Short Portfolio had pledged $27,480,397 of long securities as collateral under such arrangement.

For the period ended December 31, 2014, the Portfolios received proceeds from securities sold short and purchased to cover short positions as follows:

	Proceeds from		Purchased to
	Securities		Cover Short
Portfolio	Sold Short		Positions
Fundamental Long/Short	$	42,006,525	$	13,794,674
Master Alternatives		4,145,623		—

Annual Report 23

(d) 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.

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.

(e) Federal Income Taxes—The Fund’s policy is to continue to have each Portfolio qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and to distribute all of its taxable income, including any net realized capital gains, to shareholders. Therefore, no federal income tax provision is required.

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.

At December 31, 2014, the following Portfolios had unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains with no expiration date as follows:

Portfolio	Amount
Enhanced Opportunities		$63
Master Alternatives		64

Under current tax law, certain late year losses, as defined by the Code, 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, 2014, the Portfolios elected to defer no such losses.

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 expected to be taken in the Portfolios’ 2014 tax returns.

(f) Dividends and Distributions—Dividends from net investment income, if any, 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 net operating losses, foreign currency transactions, wash sales, certain fund expenses and distributions from real estate investment trusts and partnerships. The book/tax differences relating to shareholder distributions resulted in reclassifications among certain capital accounts as follows:

				Undistributed
				Net		Accumulated
	Paid in			Investment		Net Realized
Portfolio	Capital			Income		Loss

Fundamental Long/Short		$(1,425	)		$167,961		$(166,536	)
Enhanced Opportunities		(234	)		234		—
Master Alternatives		(1,371	)		1,371		—

The tax character of dividends and distributions paid during the period ended December 31 were as follows:

	Ordinary Income
Portfolio	2014

Fundamental Long/Short Institutional		$503,768
Open		46,891

24 Annual Report

At December 31, 2014, the components of distributable earnings, on a tax basis, were as follows:

			Undistributed			Net Unrealized
			Long-Term			Appreciation
	Undistributed		Capital Gain/			(Depreciation)
	Ordinary		Deferred			including Foreign
Portfolio	Income		Capital Losses			Currency

Fundamental Long/Short	$	474,575	$	—		$	1,310,654
Enhanced Opportunities		—		(63	)		(572	)
Master Alternatives		—		(64	)		(33,533	)

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

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

(i) Redemption Fee—The Portfolios 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 management 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

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

Fundamental Long/Short		1.40	%
Enhanced Opportunities		1.40
Master Alternatives		1.40

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:

	Institutional			Open
Portfolio	Shares			Shares			Year

Fundamental Long/Short*		1.70	%		1.95	%		2016
Enhanced Opportunities		1.70			1.95			2016	(a)
Master Alternatives*		1.70			1.95			2016	(a)

(a)	Agreement is through December 31, 2016.
*	Expense limitations do not include broker expense and dividend expense on securities sold short.

During the period ended December 31, 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

Fundamental Long/Short	$	109,310	$	55,939	$	10,174	$	3,862
Enhanced Opportunities		—		9,082		—		184
Master Alternatives		—		8,456		—		255

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 up to $18,750 of the $42,500 annual fee for Portfolios with net assets under $25 million. During the pe-

Annual Report 25

riod ended December 31, 2014, State Street waived $9,375 of its fee for Fundamental Long/Short 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 adopted pursuant to 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 or share class has commenced operations. During the period ended December 31, 2014, BFDS waived $12,173 of its fee for Fundamental Long/Short Portfolio.

4. Directors’ Compensation

in respect of committee meetings held in conjunction with a meeting of the Board. Such Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings. Compensation is, generally, divided among the Lazard Funds based on relative net assets. Effective January 1, 2015, the compensation for Independent Directors is comprised of: (1) an annual retainer of $190,000, (2) an additional annual fee of $20,000 to the lead Independent Director, and (3) an additional annual fee of $10,000 to the Audit Committee Chair. The Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings, although per-meeting attendance fees will no longer be paid. Compensation is, generally, divided among the Lazard Funds and Lazard Alternative Emerging Markets 1099 Fund, a closed-end registered management investment company advised by an affiliate of the Investment Manager (the “1099 Fund”), based on relative net assets. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. The Statements of Operations show the Directors’ fees and expenses paid by each Portfolio.

5. Securities Transactions and Transactions with Affiliates

Purchases and sales of portfolio securities (excluding short-term investments) for the period ended December 31, 2014 were as follows:

Portfolio	Purchases		Sales

Fundamental Long/Short	$	61,644,675	$	17,408,265
Enhanced Opportunities		75,166		20,027
Master Alternatives		7,709,570		19,931

For the period ended December 31, 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 is 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

26 Annual Report

the unused portion of the commitment, payable quarterly in arrears. During the period ended December 31, 2014, the Portfolios had no borrowings under the Agreement.

7. Investment Risks

(a) Non-US Securities Risk—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. 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.

(b) Short Position Risk—Short positions in equity securities may involve substantial risks. If a short position appreciates in value during the period of the Portfolios’ investment, there will be a loss to the Portfolios that could be substantial. Short positions involve more risk than long positions because the maximum sustainable loss on a security purchased is limited to the amount paid for the security plus the transaction costs. However, the Portfolios’ potential loss on a short position is unlimited because, theoretically, there is no limit to the potential price increase of a security.

8. Contractual Obligations

The Fund enters into contracts in the normal course of business that contain a variety of indemnifications. A Portfolio’s maximum exposure under these arrangements is unknown. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

9. Fair Value Measurements

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

•	Level 1 – unadjusted quoted prices in active markets for identical investments
•	Level 2 – other significant observable inputs (including unadjusted quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
•	Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

Changes in valuation technique may result in transfer into or out of the current assigned level within the hierarchy.

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

Annual Report 27

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2014:

	Unadjusted
	Quoted Prices in
	Active Markets			Significant Other			Significant
	for Identical			Observable			Unobservable
	Investments			Inputs			Inputs		Balance as of
Description	(Level 1)			(Level 2)			(Level 3)		December 31, 2014

Fundamental Long/Short Portfolio
Common Stocks*	$	47,158,349		$	—		$	—	$	47,158,349
Short-Term Investment		31,780,276			—			—		31,780,276
Securities Sold Short*		(28,637,574	)		—			—		(28,637,574	)
Total	$	50,301,051		$	—		$	—	$	50,301,051

Enhanced Opportunities Portfolio
Common Stocks*	$	54,504		$	—		$	—	$	54,504
Total	$	54,504		$	—		$	—	$	54,504

Master Alternatives Portfolio
Common Stocks*
Netherlands	$	123,844		$	229,735		$	—	$	353,579
Other		6,055,332			1,207,815			—		7,263,147
Securities Sold Short*		(3,742,341	)		(364,433	)		—		(4,106,774	)
Total	$	2,436,835		$	1,073,117		$	—	$	3,509,952

*	Please refer to Portfolios of Investments (page 8 through 14) and Notes to Portfolios of Investments (page 15) for portfolio holdings by country and industry.

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 Enhanced Opportunities and Master Alternatives 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 December 31, 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 were no such subsequent events that required adjustment or disclosure in the financial statements.

28 Annual Report

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

To the Shareholders and Board of Directors of The Lazard Funds, Inc.:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Lazard Fundamental Long/Short Portfolio, Lazard Enhanced Opportunities Portfolio and Lazard Master Alternatives Portfolio (collectively the “Portfolios”), three of the portfolios constituting The Lazard Funds, Inc. (the “Fund”) as of December 31, 2014, and the related statements of operations and changes in net assets and the financial highlights for the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers. Where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Lazard Fundamental Long/Short Portfolio, Lazard Enhanced Opportunities Portfolio and Lazard Master Alternatives Portfolio of The Lazard Funds, Inc. as of December 31, 2014, the results of their operations, changes in their net assets and the financial highlights for the period then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP
New York, New York
February 28, 2015

Annual Report 29

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⁾:

Franci J. Blassberg (61)	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)

Kenneth S. Davidson (69)	Director (August 1995)	Davidson Capital Management Corporation, an investment manager, President (1978 – present)

		Landseer Advisors LLC, an investment manager, Senior Advisor (2012 – 2014)

		Aquiline Holdings LLC, an investment manager, Partner (2006 – 2012)

Nancy A. Eckl (52)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)

		TIAA-CREF Funds (62 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)

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 (67)	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 (54)	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)

30 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 January 31, 2015, 38 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 the 1099 Fund.

⁽³⁾	“Independent Directors” are not “interested persons” (as defined in the Act) of the Fund.

⁽⁴⁾	Messrs. Bhutani and Carroll are “interested persons” (as defined in the Act) of the Fund because of their positions with the Investment Manager.

The Fund’s Statement of Additional Information contains further information about the Directors and is available without charge by calling 800-823-6300, or online, at www.LazardNet.com.

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 (42)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager

Stephen St. Clair (56)	Treasurer (May 2003)	Vice President of the Investment Manager

Mark R. Anderson (44)	Chief Compliance Officer (September 2014)	Chief Compliance Officer and Director of the Investment Manager (since September 2014)

		Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014)

Tamar Goldstein (39)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) of the Investment Manager

Cesar A. Trelles (40)	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, except Messrs. St. Clair and Trelles, serves in the same capacity for the other Lazard Funds and the 1099 Fund. Messrs. St. Clair and Trelles serve in the same capacity for the other Lazard Funds.

⁽³⁾	In addition to Charles L. Carroll, President, whose information is included in the Interested Directors section.

Annual Report 31

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

Tax Information

Year Ended December 31, 2014

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2014:

Of the dividends paid by Fundamental Long/Short Portfolio, 18.10% of the dividends are qualified dividend income.

Of the dividends paid by Fundamental Long/Short Portfolio, 7.99% of the dividends qualify for the dividends received deduction available to corporate shareholders.

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

Proxy Voting

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

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

Form N-Q

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

Board Consideration of Management Agreement

Lazard Master Alternatives Portfolio

At a meeting of the Board held on August 6, 2014, the Board considered the approval of the Management Agreement between the Fund, on behalf of Lazard Master Alternatives Portfolio (the “Alternatives Portfolio”), and the Investment

Manager (the “Alternatives Portfolio Management Agreement”). 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

The Board previously had received and discussed information 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 34 active funds comprised approximately $28 billion of the approximately $205 billion of total assets under the management of the Investment Manager and its global affiliates as of June 30, 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 Alternatives Portfolio from a member of the Alternatives Portfolio’s proposed portfolio management team, including the strategies to be employed for the Alternatives Portfolio and the Alternatives 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 Alternatives 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 $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, an independent provider of investment company data.

32 Annual Report

Management Fee and Expense Ratios. Representatives of the Investment Manager reviewed the proposed management fee and anticipated expense ratios for the Alternatives Portfolio and the comparisons provided by Strategic Insight, which compared the management fee and expense ratios for the Alternatives Portfolio to groups¹of comparison funds (“Groups”) and broader Morningstar categories (“Categories”), 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 Alternatives Portfolio were below the medians for the Groups but above the medians for the Categories. There were no client accounts managed by the Investment Manager with investment objectives, policies and strategies similar to those of the Alternatives Portfolio.

Performance. Since the Alternatives Portfolio had not yet commenced operations and, since there were no client accounts managed by the Investment Manager with investment objectives, policies and strategies similar to those of the Alternatives Portfolio, there was no performance presented for the Directors to consider.

Investment Manager Profitability and Economies of Scale

Representatives of the Investment Manager noted that because the Alternatives Portfolio is newly formed, has not commenced operations and the eventual aggregate amount of the Alternatives Portfolio’s assets was uncertain, specific information concerning the cost of services to be provided to the Alternatives Portfolio and the expected profits to be realized by the Investment Manager and its affiliates from their relationships with the Alternatives 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 Alternatives Portfolio initially, noting the Investment Manager’s agreement to waive its fees and/or reimburse the Alternatives Portfolio for at least two years following the Alternatives 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 invest-

¹	The Alternatives Portfolio has two comparison groups, corresponding to Open and Institutional Shares.

ment management fee in connection with renewal of the Alternatives Portfolio 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 Alternatives Portfolio. The Investment Manager’s representatives reviewed with the Board information provided on the Investment Manager’s brokerage and soft dollar practices. The representatives of the Investment Manager stated that the Investment Manager intends to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the Alternatives Portfolio would not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Alternatives 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 Alternatives Portfolio Management Agreement. Based on its discussions and considerations as described above, the Board made the following conclusions and determinations with regard to the Alternatives Portfolio 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 $205 billion global asset management business.

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

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

Annual Report 33

The Board considered these conclusions and determinations in their totality and, without any one factor being dispositive, determined to approve the Alternatives Portfolio Management Agreement.

Lazard Enhanced Opportunities Portfolio

At a meeting of the Board held on November 12, 2014, the Board considered the approval of the Management Agreement between the Fund, on behalf of Lazard Enhanced Opportunities Portfolio (the “Opportunities Portfolio”), and the Investment Manager (the “Opportunities Portfolio Management Agreement”). 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

The Board previously had received and discussed information 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 36 active funds comprised approximately $28.4 billion of the approximately $198 billion of total assets under the management of the Investment Manager and its global affiliates as of September 30, 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 Opportunities Portfolio from members of the Opportunities Portfolio’s proposed portfolio management team, including the strategies to be employed for the Opportunities Portfolio and the Opportunities 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 Opportunities Portfolio was expected to benefit from the services and infrastructure provided by the Investment Manager. The Directors accepted

²	The Opportunities Portfolio has two comparison groups, corresponding to Open and Institutional Shares.

management’s assertion that such services and infrastructure would be greater than those typically provided to a $28 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 Opportunities Portfolio and the comparisons provided by Strategic Insight, which compared the management fee and expense ratio for the Opportunities Portfolio to groups²of comparison funds (“Groups”) and a broader category or categories of funds (“Universes”), 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 Opportunities Portfolio were below the medians for the Groups but above the medians for the Universes (in the third quartile of the funds in the Universe). At the Board’s request, Strategic Insight had also provided the Board with the investment-related expenses (dividend and interest expenses on securities sold short) of the funds in the Groups, as available, for comparison with the Opportunities Portfolio’s anticipated dividend and interest expenses on securities sold short, although Group rankings were determined without consideration of investment-related expenses. The Board also considered the fees paid by client accounts managed by the Investment Manager with investment objectives, policies and strategies similar to those of the Opportunities Portfolio.

Performance. The Directors considered the performance of a composite of accounts managed by the portfolio managers with investment objectives, policies and strategies similar to those contemplated for the Opportunities Portfolio compared to various indexes.

Investment Manager Profitability and Economies of Scale

Representatives of the Investment Manager noted that because the Opportunities Portfolio is newly formed, has not

34 Annual Report

commenced operations and the eventual aggregate amount of the Opportunities Portfolio’s assets was uncertain, specific information concerning the cost of services to be provided to the Opportunities Portfolio and the expected profits to be realized by the Investment Manager and its affiliates from their relationships with the Opportunities 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 Opportunities Portfolio initially, noting the Investment Manager’s agreement to waive its fees and/or reimburse the Opportunities Portfolio for at least two years following the Opportunities 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 Opportunities Portfolio 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 Opportunities Portfolio. The Investment Manager’s representatives reviewed with the Board information provided on the Investment Manager’s brokerage and soft dollar practices. The representatives of the Investment Manager stated that the Investment Manager intends to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the Opportunities Portfolio would not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Opportunities 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 Opportunities Portfolio Management Agreement. Based on its discussions and considerations as described above, the Board made the following conclusions and determinations with regard to the Opportunities Portfolio 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 $198 billion global asset management business.

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

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

The Board considered these conclusions and determinations in their totality and, without any one factor being dispositive, determined to approve the Opportunities Portfolio Management Agreement.

Annual Report 35

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

Lazard Funds Annual Report

December 31, 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

9		Notes to Portfolio of Investments

10		Statement of Assets and Liabilities

11		Statement of Operations

12		Statements of Changes in Net Assets

13		Financial Highlights

14		Notes to Financial Statements

22		Report of Independent Registered Public Accounting Firm

23		Board of Directors and Officers Information

25		Tax and Other Information

Distributed by Lazard Asset Management Securities LLC.

Annual Report 1

The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

Sincerely,

Lazard Asset Management LLC

2 Annual Report

The Lazard Funds, Inc. Investment Overview

Capital Allocator

Despite rising for the first six months of the year, most global equity markets closed 2014 negative, in US dollar terms. A major investment theme was the continued decoupling of the US economy from the rest of the world. The US market was the best performer for the year, driven by indicators of genuine, broad-based economic growth, US dollar strength, the plunge in oil prices, central bank normalization of monetary policy, and geopolitical uncertainty outside the US. The US Federal Reserve ended its bond-buying program during the year as it believed the US economy showed compelling signs of recovering. While nearly all forecasters expected a significant rise in government bond yields, they instead fell materially in most developed markets. Amid this backdrop and the flight to safety from persistent geopolitical risk, the US fixed income market posted a solid return for the year. In addition, while some forecasted a modest decline for oil prices for 2014, few anticipated the dramatic collapse that occurred in the second half of the year. This created further divergence in country-specific performance, as oil importers benefited and exporters suffered.

In contrast, Europe and Japan were the worst-performing regions in the developed equity markets. While the respective governments announced quantitative easing measures during the year, investors remained skeptical regarding the programs’ ultimate effectiveness. While both regions are net importers of oil (and thus beneficiaries of low prices), which may aid the economies in the intermediate term, structural reform will ultimately be necessary for meaningful long-term improvement. We continue to monitor these regions for positive developments and potential short-term catalysts that could boost performance—particularly in Europe, as we believe there is the potential for stocks to rise off of a low base.

The emerging markets had a tumultuous year. Broadly speaking, Asian markets generally performed well, with Indian equities among the best performers amid optimism for economic and social welfare reform in the country. In contrast, the early Russia-Ukraine tensions weighed down Eastern European markets throughout 2014—a situation further exacerbated by sharply declining oil prices in the second half of the year. Latin American markets, many with difficult political dynamics and fragile economic environments, were also negatively affected by lower oil prices.

Lazard Capital Allocator Opportunistic Strategies Portfolio

For the year ended December 31, 2014, the Lazard Capital Allocator Opportunistic Strategies Portfolio’s Institutional Shares posted a total return of 4.40%, while Open Shares posted a total return of 4.10%, as compared with the 4.94% return for the MSCI World^®Index and 5.36% return for the Global Asset Allocation Blended Index.¹

Thematic investments, which represented 57% of the Portfolio as of December 31, 2014, outperformed the benchmarks for the year. Positive returns were generated by US-focused investments in technology, share buybacks, and health care providers. In contrast, Japanese equity holdings, which were sold during the year, detracted from performance. During the year, derivative exposure included five custom baskets of securities that were created via swaps. Those baskets focused on Japanese financials, global automotive companies, and European small cap stocks hurt performance. One basket focused on companies that have historically outperformed in times of rising US consumption, and another, composed of stocks that historically tend to outperform in low growth and low inflation environments, added to returns. These investments represent unique opportunity sets based on a top-down macroeconomic investment thesis. These custom baskets of securities do not exist in public markets; accordingly, the specific exposure desired was achieved by designing and building these baskets via swap agreements with one or more counterparties. The US consumption custom basket was still held as of December 31, 2014, while all others were sold prior to the end of 2014.

Diversifying investments, which represented 36% of the Portfolio at the end of the year, outperformed the MSCI World Index and the Global Asset Allocation Blended Index. Performance of long-term Treasuries, short euro, and short yen positions were additive to returns. Each of these positions were exited during 2014.

Contrarian investments, which represented 2% of the Portfolio at the end of 2014, underperformed the benchmarks for the year. Exposure to emerging markets equities and oil & gas services hurt performance. These positions were sold during 2014.

Annual Report 3

Discounted investments, which represented 5% of the Portfolio as of December 31, 2014, strongly outperformed both benchmarks during the year. An international currency bas-

ket closed-end fund and an Indian equity closed-end fund contributed most to returns during the year. The international currency basket was sold during the year.

Notes to Investment Overview:

¹	The Global Asset Allocation Blended Index is rebalanced quarterly and is a blended index constructed by the Portfolio’s Investment Manager, composed of 60% MSCI World Index and 40% Barclays Capital US Aggregate Bond^®Index.

4 Annual Report

The Lazard Funds, Inc. Performance Overview

Lazard Capital Allocator Opportunistic Strategies Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2014

	Institutional Shares								Open Shares
	One Year			Five Years		Since Inception†			One Year			Five Years			Since Inception†
Capital Allocator Opportunistic Strategies Portfolio**		4.40	%	7.22	%		4.09	%		4.10	%		6.90	%		3.84	%
MSCI World Index		4.94	%	10.20	%		4.78	%		4.94	%		10.20	%		4.86	%
Global Asset Allocation Blended Index		5.36	%	8.23	%		5.31	%		5.36	%		8.23	%		5.35	%


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

	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.

	The performance data of the indices have been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to their accuracy. The MSCI World Index is a 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, with maturities of no less than one year. The indices are unmanaged, have no fees or costs and are not available for investment.

**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, primarily based on the differences in fees borne by shareholders investing in different classes.

†	The inception date for the Institutional Shares was March 26, 2008 and for Open Shares was March 31, 2008.

Annual Report 5

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

Expense Example

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.

Portfolio	Beginning Account Value 7/1/14	Ending Account Value 12/31/14	Expenses Paid During Period* 7/1/14 - 12/31/14	Annualized Expense Ratio During Period 7/1/14 - 12/31/14

Capital Allocator Opportunistic Strategies
Institutional Shares
Actual	$1,000.00	$1,030.20	$5.22	1.02%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.06	$5.19	1.02%
Open Shares
Actual	$1,000.00	$1,028.30	$6.75	1.32%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.55	$6.72	1.32%


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

6 Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2014

Sector*	Lazard Capital Allocator Opportunistic Strategies Portfolio

Consumer Discretionary		11.0	%
Consumer Staples		2.3
Energy		1.5
Financials		11.3
Health Care		9.5
Industrials		6.8
Information Technology		11.7
Materials		3.0
Telecommunication Services		0.9
Utilities		0.2
Fixed Income		11.7
Short-Term Investment		30.1
Total Investments		100.0	%

*	Represents percentage of total investments.

Annual Report 7

The Lazard Funds, Inc. Portfolio of Investments December 31, 2014

Description	Shares		Value

Lazard Capital Allocator Opportunistic Strategies Portfolio

Exchange-Traded Note \| 3.2%
VelocityShares Daily Inverse VIX Short-Term ETN (a) (Identified cost $6,215,072)		192,100	$	5,981,994

Exchange-Traded Funds \| 61.5%
Financial Select Sector SPDR Fund		370,000		9,150,100
Guggenheim S&P 500 Equal Weight Technology ETF		131,600		11,944,016
iShares Currency Hedged MSCI Japan ETF		212,500		5,760,875
iShares China Large-Cap ETF		99,700		4,149,514
iShares U.S. Consumer Services ETF		118,900		16,376,097
iShares U.S. Healthcare Providers ETF		50,900		6,025,033
iShares U.S. Medical Devices ETF		45,900		5,191,749
PowerShares Aerospace & Defense Portfolio		148,300		5,153,425
PowerShares Buyback Achievers Portfolio		294,400		14,145,920
SPDR Barclays Convertible Securities ETF		119,800		5,617,422
Vanguard Russell 2000 Growth ETF		105,000		10,922,100
Vanguard Short-Term Corporate Bond ETF		277,800		22,121,214

Total Exchange-Traded Funds (Identified cost $109,939,704)				116,557,465

Description	Shares		Value

Closed-End Management Investment Company \| 5.0%
Morgan Stanley India Investment Fund, Inc. (a) (Identified cost $8,810,722)		357,700	$	9,611,399

Short-Term Investment \| 30.0%
State Street Institutional Treasury Money Market Fund (Identified cost $56,806,996)		56,806,996		56,806,996

Total Investments \| 99.7% (Identified cost $181,772,494) (b)			$	188,957,854

Cash and Other Assets in Excess of Liabilities \| 0.3%				481,619

Net Assets \| 100.0%			$	189,439,473

Total Return Swap Agreement open at December 31, 2014:

Notional

Amount

Expiration

Unrealized

Currency

Counterparty

(000)

Date

Pay

Receive

Appreciation

USD

GSC

11,192

06/30/15

1 Month USD LIBOR plus 0.40%

Appreciation, and dividends paid, on securities in a basket of domestic equity securities

409,752

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

8 Annual Report

The Lazard Funds, Inc. Notes to Portfolio of Investments December 31, 2014

(a)	Non-income producing security.
(b)	For federal income tax purposes, the aggregate cost was $181,772,493, aggregate gross unrealized appreciation was $7,685,385, aggregate gross unrealized depreciation was $500,024, and the net unrealized appreciation was $7,185,361.

Abbreviations:
ETF	— Exchange-Traded Fund
ETN	— Exchange-Traded Note
GSC	— Goldman Sachs International
LIBOR	— London Interbank Offered Rate
USD	— United States Dollar

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

Annual Report 9

The Lazard Funds, Inc. Statement of Assets and Liabilities

	Lazard Capital Allocator
	Opportunistic Strategies
December 31, 2014	Portfolio

ASSETS
Investments in securities, at value		$	188,957,854
Receivables for:
Dividends and interest			375,882
Capital stock sold			65,017
Gross unrealized appreciation on swap agreement			409,752
Total assets			189,808,505

LIABILITIES
Due to custodian			4,698
Payables for:
Management fees			140,811
Accrued distribution fees			819
Accrued directors’ fees			27
Capital stock redeemed			171,158
Premium for swap agreement written			2,416
Other accrued expenses and payables			49,103
Total liabilities			369,032
Net assets		$	189,439,473

NET ASSETS
Paid in capital		$	182,329,118
Distributions in excess of net investment income			(691,342	)
Accumulated net realized gain			206,585
Net unrealized appreciation on:
Investments			7,185,360
Swap agreement			409,752
Net assets		$	189,439,473

Institutional Shares
Net assets		$	185,489,243
Shares of capital stock outstanding*			18,509,479
Net asset value, offering and redemption price per share		$	10.02

Open Shares
Net assets		$	3,950,230
Shares of capital stock outstanding*			394,279
Net asset value, offering and redemption price per share		$	10.02

Cost of investments in securities		$	181,772,494

* $0.001 par value, 6,450,000,000 shares authorized for the Portfolios in total.

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

10 Annual Report

The Lazard Funds, Inc. Statement of Operations

	Lazard Capital Allocator
	Opportunistic Strategies
For the Year Ended December 31, 2014	Portfolio

Investment Income

Income
Dividends		$	2,892,084
Interest			549
Total investment income			2,892,633

Expenses
Management fees (Note 3)			2,111,228
Administration fees			92,226
Custodian fees			64,318
Professional services			60,746
Shareholders’ reports			47,558
Registration fees			33,183
Shareholders’ services			27,619
Distribution fees (Open Shares)			8,335
Directors’ fees and expenses			5,930
Other			8,345
Total gross expenses			2,459,488
Management fees waived			(296,024	)
Total net expenses			2,163,464
Net investment income			729,169

Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Forward Currency Contracts, Options and Swap Agreements
Net realized gain (loss) on:
Investments			12,736,703
Foreign currency and forward currency contracts			2,868,892
Purchased options			201,486
Swap agreements			(816,842	)
Total net realized gain on investments, foreign currency, forward currency contracts, options and swap agreements			14,990,239
Net change in unrealized appreciation (depreciation) on:
Investments			(7,145,151	)
Foreign currency and forward currency contracts			(431	)
Swap agreements			91,698
Total net change in unrealized depreciation on investments, foreign currency, forward currency contracts and swap agreements			(7,053,884	)
Net realized and unrealized gain on investments, foreign currency, forward currency contracts, options and swap agreements			7,936,355
Net increase in net assets resulting from operations		$	8,665,524

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

Annual Report 11

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

	Lazard Capital Allocator Opportunistic Strategies Portfolio
	Year Ended				Year Ended
	December 31,				December 31,
	2014				2013

Increase (Decrease) in Net Assets

Operations
Net investment income		$	729,169		$	2,003,674
Net realized gain on investments, foreign currency, forward currency contracts, options and swap agreements			14,990,239			14,298,869
Net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts and swap agreements			(7,053,884	)		9,822,665
Net increase in net assets resulting from operations			8,665,524			26,125,208

Distributions to shareholders
From net investment income
Institutional Shares			(5,125,559	)		(9,658,755	)
Open Shares			(92,244	)		(105,748	)
From net realized gains
Institutional Shares			(7,156,671	)		(10,495,960	)
Open Shares			(144,846	)		(122,735	)
Net decrease in net assets resulting from distributions			(12,519,320	)		(20,383,198	)

Capital stock transactions
Net proceeds from sales
Institutional Shares			43,633,391			38,927,488
Open Shares			2,263,638			565,093
Net proceeds from reinvestment of distributions
Institutional Shares			11,844,026			19,042,016
Open Shares			229,550			219,942
Cost of shares redeemed
Institutional Shares			(80,417,261	)		(74,468,014	)
Open Shares			(1,037,731	)		(1,336,706	)
Net decrease in net assets from capital stock transactions			(23,484,387	)		(17,050,181	)

Redemption fees (Note 2(i))
Institutional Shares			558			3,612
Open Shares			5			—
Net increase in net assets from redemption fees			563			3,612
Total decrease in net assets			(27,337,620	)		(11,304,559	)
Net assets at beginning of year			216,777,093			228,081,652
Net assets at end of year*		$	189,439,473		$	216,777,093
*Includes distributions in excess of net investment income of		$	(691,342	)	$	(3,429,018	)

Shares issued and redeemed Institutional Shares
Shares outstanding at beginning of year			20,912,934			22,422,647
Shares sold			4,201,701			3,776,598
Shares issued to shareholders from reinvestment of distributions			1,173,839			1,880,973
Shares redeemed			(7,778,995	)		(7,167,284	)
Net decrease			(2,403,455	)		(1,509,713	)
Shares outstanding at end of year			18,509,479			20,912,934

Open Shares
Shares outstanding at beginning of year			255,504			308,937
Shares sold			217,360			55,083
Shares issued to shareholders from reinvestment of distributions			22,773			21,717
Shares redeemed			(101,358	)		(130,233	)
Net increase (decrease)			138,775			(53,433	)
Shares outstanding at end of year			394,279			255,504

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

12 Annual Report

The Lazard Funds, Inc. Financial Highlights

LAZARD CAPITAL ALLOCATOR OPPORTUNISTIC STRATEGIES PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Institutional Shares
Net asset value, beginning of year	$	10.24		$	10.03		$	9.26		$	9.96		$	8.80
Income (loss) from investment operations:
Net investment income (a)		0.04			0.09			0.11			0.12			0.12
Net realized and unrealized gain (loss)		0.41			1.12			0.74			(0.45	)		1.16

Total from investment operations		0.45			1.21			0.85			(0.33	)		1.28
Less distributions from:
Net investment income		(0.28	)		(0.48	)		(0.08	)		(0.13	)		(0.12	)
Net realized gains		(0.39	)		(0.52	)		—			(0.24	)		—

Total distributions		(0.67	)		(1.00	)		(0.08	)		(0.37	)		(0.12	)

Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)

Net asset value, end of year	$	10.02		$	10.24		$	10.03		$	9.26		$	9.96

Total Return (c)		4.40	%		12.22	%		9.16	%		-3.28	%		14.58	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	185,489		$	214,161		$	224,982		$	258,832		$	239,403
Ratios to average net assets:
Net expenses		1.02	%		1.02	%		1.02	%		1.02	%		1.02	%
Gross expenses		1.15	%		1.13	%		1.12	%		1.13	%		1.13	%
Net investment income		0.35	%		0.89	%		1.13	%		1.25	%		1.36	%
Portfolio turnover rate		265	%		193	%		139	%		155	%		117	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Open Shares
Net asset value, beginning of year	$	10.24		$	10.03		$	9.26		$	9.97		$	8.80
Income (loss) from investment operations:
Net investment income (a)		0.01			0.06			0.07			0.08			0.06
Net realized and unrealized gain (loss)		0.41			1.12			0.75			(0.45	)		1.20

Total from investment operations		0.42			1.18			0.82			(0.37	)		1.26
Less distributions from:
Net investment income		(0.25	)		(0.45	)		(0.05	)		(0.10	)		(0.09	)
Net realized gains		(0.39	)		(0.52	)		—			(0.24	)		—

Total distributions		(0.64	)		(0.97	)		(0.05	)		(0.34	)		(0.09	)

Redemption fees		—	(b)		—			—			—	(b)		—	(b)

Net asset value, end of year	$	10.02		$	10.24		$	10.03		$	9.26		$	9.97

Total Return (c)		4.10	%		11.90	%		8.84	%		-3.72	%		14.35	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	3,950		$	2,616		$	3,099		$	6,111		$	7,163
Ratios to average net assets:
Net expenses		1.32	%		1.32	%		1.32	%		1.32	%		1.32	%
Gross expenses		1.81	%		1.84	%		1.67	%		1.57	%		1.52	%
Net investment income		0.14	%		0.60	%		0.69	%		0.77	%		0.66	%
Portfolio turnover rate		265	%		193	%		139	%		155	%		117	%


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

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

Annual Report 13

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2014

1. Organization

December 31, 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.

2. Significant Accounting Policies

(a) Valuation of Investments—Net asset value (“NAV”) per share for each class of each Portfolio is determined 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

14 Annual Report

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 and acts pursuant to delegated authority from the Board of Directors (the “Board”), may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Investment Manager’s portfolio managers/analysts also will be considered.

(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 earned 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.

Annual Report 15

ward 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 on over-the-counter markets.

The risk associated with purchasing an option is that the Portfolios pay a premium whether or not the option is exercised. Additionally, the Portfolios will not benefit from exercise of an option should the counterparty not perform under the contract. The risk involved in writing an option is that, if the option is exercised, the underlying security or other assets could then be purchased or sold by the Portfolios at a disadvantageous price. Put and call options purchased are accounted for in the same manner as portfolio securities and other assets. When the Portfolios write an option, the premium received by the Portfolios is recorded as a liability and is subsequently adjusted to the current market value of the option written.

During the year ended December 31, 2014, transactions in options purchased were as follows:

	Number of
Purchased Options	Contracts			Cost

Options outstanding at beginning of year		—		$	—
Options purchased		6,200			404,050
Options sold		(6,200	)		(404,050	)
Options expired		—			—
Options outstanding at end of year		—		$	—

(e) Swap Agreements—Swap agreements on equity securities involve commitments to pay interest in exchange for an equity basket return. The counterparty pays out the total return of the basket of equity securities and, in return, receives a regular stream of payments, based on an agreed-upon interest rate. To the extent the total return of the equity basket underlying the transaction exceeds (or falls short of) the offsetting interest rate obligation, 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 year ended December 31, 2014, the average notional exposure of swap agreements was approximately $18,100,000.

(f) Federal Income Taxes—The Fund’s policy is to continue to have each Portfolio qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and to distribute all of its taxable income, including any net realized capital gains, to shareholders. Therefore, no federal income tax provision is required.

At December 31, 2014, the Portfolio had no unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains.

Post October Capital Loss Deferral		Late Year Ordinary Loss Deferral

$(1,486,648)		$(257,913)

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 (2011-2013), or expected to be taken in the Portfolio’s 2014 tax returns.

16 Annual Report

(g) Dividends and Distributions—Dividends from net investment income, if any, 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, certain derivatives, passive foreign investment companies and distributions from real estate investment trusts. The book/tax differences relating to shareholder distributions resulted in reclassifications among certain capital accounts as follows:

Paid in Capital	Distributions in Excess of Net Investment Income	Accumulated Net Realized Gain

$ —	$7,226,310	$(7,226,310)

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

	Ordinary Income				Long-Term Capital Gain
Shares		2014		2013		2014		2013

Institutional		$8,536,678	$	16,973,416	$	3,784,754	$	3,152,954
Open		137,103		216,594		60,785		40,234

At December 31, 2014, the components of distributable earnings, on a tax basis, were as follows:

Undistributed Ordinary Income/ Deferred Late Year Ordinary Losses	Undistributed Long-Term Capital Gain/ Deferred Capital Losses	Net Unrealized Appreciation including Foreign Currency and Derivatives

$(257,913)	$206,583	$7,161,685

(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. The 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.

(i) Redemption Fee—The Portfolio may impose a 1.00% redemption fee (short-term trading fee) on Portfolio shares redeemed less than 30 days after such shares were acquired. The fee is retained by the Portfolio and is included as paid in capital on the Statement 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 management 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. The expense caps exclude, among other things, acquired fund fees and expenses.

During the year ended December 31, 2014, the Investment Manager waived its management fees of $279,731 and $16,293 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 an-

Annual Report 17

nual 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 up to $18,750 of the $42,500 annual fee for Portfolios with net assets under $25 million.

4. Directors’ Compensation

tee Chair of $5,000. No additional compensation is provided in respect of committee meetings held in conjunction with a meeting of the Board. Such Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings. Compensation is, generally, divided among the Lazard Funds based on relative net assets. Effective January 1, 2015, the compensation for Independent Directors is comprised of: (1) an annual retainer of $190,000, (2) an additional annual fee of $20,000 to the lead Independent Director, and (3) an additional annual fee of $10,000 to the Audit Committee Chair. The Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings, although permeeting attendance fees will no longer be paid. Compensation is, generally, divided among the Lazard Funds and Lazard Alternative Emerging Markets 1099 Fund, a closed-end registered management investment company advised by an affiliate of the Investment Manager (the “1099 Fund”), based on relative net assets. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. The Statement of Operations shows the Directors’ fees and expenses paid by each Portfolio.

5. Securities Transactions and Transactions with Affiliates

Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2014 were $403,011,115 and $461,003,041, respectively.

For the year ended December 31, 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

18 Annual Report

7. Investment Risks

(a) Non-US Securities Risk—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. 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.

(b) Underlying Funds Risk—Shares of ETNs, ETFs and closed-end funds (the “Underlying Funds”) in which the Portfolio invests may trade at prices that vary from their NAVs, sometimes significantly. The shares of ETFs and closed-end funds may trade at prices at, below or above their most recent NAV. Shares of closed-end funds, in particular, frequently trade at persistent discounts to their NAV. In addition, the performance of an ETF pursuing a passive index-based strategy may diverge from the performance of the index. ETNs may trade in secondary markets, but typically are redeemable by the issuer. The Portfolio’s investments in Underlying Funds are subject to the risks of Underlying Funds’ investments, as well as to the general risks of investing in Underlying Funds. Portfolio shares will bear not only the Portfolio’s management fees and operating expenses,

but also their proportional share of the management fees and operating expenses of the ETFs and closed-end funds in which the Portfolio invests. While ETNs do not have management fees, they are subject to certain investor fees. ETNs are debt securities that, like ETFs, typically are listed on exchanges and their terms generally provide for a return that tracks specified markets indices. However, unlike ETFs and closed-end funds, ETNs are not registered investment companies and these are not registered under the Act. In addition, as debt securities, ETNs are subject to the additional risk of the creditworthiness of the issuer. ETNs typically do not make interest payments. The Portfolio may be limited by the Act in the amount of its assets that may be invested in ETFs and closed-end funds unless an ETF or a closed-end fund has received an exemptive order from the Securities and Exchange Commission (the “SEC”) on which the Portfolio may rely or an exemption is available.

8. Contractual Obligations

9. Fair Value Measurements

Annual Report 19

•	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)

Changes in valuation technique may result in transfer into or out of the current assigned level within the hierarchy.

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

The following table summarizes the valuation of the Portfolio’s investments by each fair value hierarchy level as of December 31, 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 December 31, 2014
Assets:
Exchange-Traded Note	$	5,981,994	$	—	$	—	$	5,981,994
Exchange-Traded Funds		116,557,465		—		—		116,557,465
Closed-End Management Investment Company		9,611,399		—		—		9,611,399
Short-Term Investment		56,806,996		—		—		56,806,996
Other Financial Instruments*
Total Return Swap Agreement		—		409,752		—		409,752
Total	$	188,957,854	$	409,752	$	—	$	189,367,606

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

The 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 year ended December 31, 2014.

For further information regarding security characteristics see Portfolio of Investments.

10. Derivative Instruments

The Portfolio may use derivative instruments, including forward currency contracts, options or swap agreements.

Forward currency contracts may be used for hedging purposes or to seek to increase returns.

The principal reason for a Portfolio’s writing or purchasing of 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 year ended December 31, 2014, the notional amounts of purchases and sales of forward currency contracts were $117,248,564 and $120,858,322, respectively, with average notional exposure of approximately $47,200,000.

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2014:

	Fair Value

Asset Derivatives
Equity Risk:
Gross unrealized appreciation on total return swap agreement	$	409,752

20 Annual Report

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2014 was:

	Amount

Realized Gain (Loss) on Derivatives Recognized in Income
Equity Risk:
Net realized gain on purchased options	$	201,486
Net realized loss on total return swap agreements	$	(816,842	)
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	2,869,602
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Equity Risk:
Net change in unrealized appreciation on total return swap agreements	$	91,698

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

As of December 31, 2014, the Portfolio did not hold 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 a single payment in the event of default on, or termination of, any one contract.

11. Change of Independent Registered Public Accounting Firm

On February 26, 2014, Deloitte & Touche LLP (“Deloitte”) was selected as the Fund’s independent registered public accounting firm for the 2014 fiscal year. The decision to change accountants was recommended and approved by the Audit Committee and approved by a majority of the Fund’s Board, including a majority of the Independent Directors. The predecessor independent registered public accounting firm’s reports on the Fund’s financial statements for each of the years ended December 31, 2013 and 2012 contained no adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. During such fiscal periods and through February 28, 2014, the date of the predecessor independent registered public accounting firm’s report on the Fund’s financial statements for the year ended December 31, 2013, there were no disagreements between the Fund and the predecessor independent registered public accounting firm on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which such disagreements, if not resolved to the satisfaction of the predecessor independent registered public accounting firm, would have caused them to make reference to the subject matter of the disagreement in connection with their reports on the financial statements for such periods.

12. Subsequent Events

Annual Report 21

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

To the Shareholders and Board of Directors of The Lazard Funds, Inc.:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Lazard Capital Allocator Opportunistic Strategies Portfolio (the “Portfolio”), one of the portfolios constituting The Lazard Funds, Inc. (the “Fund”) as of December 31, 2014, and the related statement of operations and changes in net assets and the financial highlights for the year then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit. The financial statements of the Portfolio for the year ended December 31, 2013 were audited by other auditors whose report, dated February 28, 2014, expressed an unqualified opinion on those statement.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers. Where replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Lazard Capital Allocator Opportunistic Strategies Portfolio of The Lazard Funds, Inc. as of December 31, 2014, the results of its operations, changes in its net assets and the financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP
New York, New York
February 28, 2015

22 Annual Report

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

Name (Age) Address⁽¹⁾	Position(s) with the Fund (Since) and Term⁽²⁾	Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years⁽²⁾

Independent Directors⁽³⁾:

Franci J. Blassberg (61)	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)

Kenneth S. Davidson (69)	Director (August 1995)	Davidson Capital Management Corporation, an investment manager, President (1978 – present)

		Landseer Advisors LLC, an investment manager, Senior Advisor (2012 – 2014)

		Aquiline Holdings LLC, an investment manager, Partner (2006 – 2012)

Nancy A. Eckl (52)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)

		TIAA-CREF Funds (62 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)

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 (67)	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 (54)	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)

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 January 31, 2015, 38 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 the 1099 Fund.

⁽³⁾	“Independent Directors” are not “interested persons” (as defined in the Act) of the Fund.

⁽⁴⁾	Messrs. Bhutani and Carroll are “interested persons” (as defined in the Act) of the Fund because of their positions with the Investment Manager.

The Fund’s Statement of Additional Information contains further information about the Directors and is available without charge by calling 800-823-6300, or online, at www.LazardNet.com.

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 (42)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager

Stephen St. Clair (56)	Treasurer (May 2003)	Vice President of the Investment Manager

Mark R. Anderson (44)	Chief Compliance Officer (September 2014)	Chief Compliance Officer and Director of the Investment Manager (since September 2014)

		Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014)

Tamar Goldstein (39)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) of the Investment Manager

Cesar A. Trelles (40)	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, except Messrs. St. Clair and Trelles, serves in the same capacity for the other Lazard Funds and the 1099 Fund. Messrs. St. Clair and Trelles serve in the same capacity for the other Lazard Funds.

⁽³⁾	In addition to Charles L. Carroll, President, whose information is included in the Interested Directors section.

24 Annual Report

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

Tax Information
Year Ended December 31, 2014

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2014:

Of the dividends paid by the Portfolio, 13.49% of the dividends are qualified dividend income.

Of the dividends paid by the Portfolio, 7.36% of the dividends qualify for the dividends received deduction available to corporate shareholders.

Pursuant to Section 871 of the Code, the Portfolio has no designated qualified short-term gains for purposes of exempting withholding of tax on such distributions to US nonresident shareholders.

Proxy Voting

Form N-Q

Annual Report 25

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
LZDPS030

Lazard Funds Annual Report

December 31, 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
9		Performance Overviews
17		Information About Your Portfolio’s Expenses
19		Portfolio Holdings Presented by Sector and Region
20		Portfolios of Investments
20		Lazard Emerging Markets Equity Portfolio
22		Lazard Emerging Markets Core Equity Portfolio
24		Lazard Developing Markets Equity Portfolio
26		Lazard Emerging Markets Equity Blend Portfolio
29		Lazard Emerging Markets Multi Asset Portfolio
44		Lazard Emerging Markets Debt Portfolio
50		Lazard Emerging Markets Income Portfolio
53		Lazard Explorer Total Return Portfolio
63		Notes to Portfolios of Investments
68		Statements of Assets and Liabilities
70		Statements of Operations
72		Statements of Changes in Net Assets
76		Financial Highlights
84		Notes to Financial Statements
102		Report of Independent Registered Public Accounting Firm
103		Board of Directors and Officers Information
105		Tax and other Information

Distributed by Lazard Asset Management Securities LLC.

Annual Report 1

The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

Sincerely,

Lazard Asset Management LLC

2 Annual Report

The Lazard Funds, Inc. Investment Overviews

Emerging Markets Equities, Debt, and Currency

The geopolitical situations in Ukraine and in Greece combined with the effects of weaker commodity prices, and, in particular, a collapse in the price of crude oil in the fourth quarter, dominated returns in emerging markets in 2014. The MSCI Emerging Markets^®Index (the “EM Index”) fell by 2.2% in 2014, as measured in US dollar terms, with markets in Eastern Europe sustaining the largest declines, decreasing by almost 38%. Because of the geopolitical tensions regarding Ukraine, as well as the fall in crude oil prices, the Russian equity market declined by almost 47% during the year. Some other individual markets suffered because of their sensitivity to crude oil, including Colombia and Brazil, but Latin American markets still fared much less poorly than those in Eastern Europe, dropping about 12%. Asia held up best, as it has done for several years, increasing by almost 5%.

Additionally, various political and other events occurring between February and July in Russia, Crimea, and Ukraine caused attitudes in Europe to harden towards Russia, and caused the European Union to join the United States in imposing several layers of sanctions. Although these issues pressured Russian equities, it took until the fourth quarter for a full panic to occur in the Russian market, caused by sharply lower crude oil prices. Brent crude oil prices sank from approximately $93 to about $58 during the quarter, affecting the ruble which collapsed from around 39 rubles per dollar to approximately 60 rubles per dollar. Signs of consumer panic occurred as individuals were eager to dollarize deposits and buy durable goods in order to preserve wealth. Other markets in the same proximity, most notably Hungary, where several of the largest companies have Eastern European businesses, fell considerably given the regional economic effects. Independently, a surprise election was called by President Samaras in Greece and the market tumbled as the threat of a victory by Syriza, a coalition of the radical left which may pursue an exit from the European Union, concerned investors. Turkey and Egypt were bright spots in 2014. Turkish markets performed well despite an ongoing battle between President Erdogan and the Gulen movement, and because of the economic benefits it may enjoy from lower prices of crude oil imports. Egyptian equities were aided by less instability following the military takeover and election of General el-Sisi as president. South African shares, despite its commodity-sensitive economy, registered a modestly positive return even with a difficult economic environment.

Most Latin American equity markets declined during the year as the effects of lower commodity prices, especially oil, were felt. The biggest decline occurred in Colombia due to the country’s large energy company exposure. However, the Brazilian market also suffered, given Petrobras’s large index weight. Chilean stocks fell amid copper and currency weakness earlier in the year. Shares in Mexico were less harmed because of its trade relationship with the United States but still suffered towards year-end due to the economy’s high sensitivity to crude oil price tax revenues. Peruvian stocks were the region’s star performer, rising by more than 10%, aided by the ongoing resilience of the economy.

Asian markets were the regional exception and generated a positive return during the year, primarily due to the relatively low commodity exposure of the region. Several markets, most notably India and Indonesia, recorded very strong returns due to election victories of popular and credible leaders. Philippine equities also generated strong performance as its economy continued to act positively. Thai stocks finished higher following the military removal of Prime Minister Yingluck Shinawatra after she attempted to pardon her brother, former Prime Minister Thaksin Shinawatra, and despite concerns in December about King Bhumibol Adulyadej’s health. Taiwanese equities were aided by the country’s strong macroeconomic conditions while Chinese shares, despite a slowing economy, were helped towards year-end by sharply declining energy prices. Given its energy production role, Malaysian shares performed poorly in 2014, declining by more than 10%.

Health care companies were, by far, the best performing sector in 2014. The financials and information technology sectors also had good returns. Materials stocks fell by almost 20% and the energy sector collapsed by over 26%, dwarfing all other sector movements.

Hard currency emerging market debt performed well on the year and outperformed local currency debt for the fourth consecutive year. The JPMorgan EMBI Global Diversified^®Index, a measure of emerging markets external debt, returned 7.43% while, on the local currency debt side, the JPMorgan GBI-EM Global Diversified^®Index was down 5.72% on the year. The 1,300 basis-point difference between the two indices is the largest dispersion of returns that we have seen in the asset class. Within external debt markets, dispersion between investment-grade and sub-investment-grade issuers was also significant as the invest-

Annual Report 3

ment-grade debt returned 9.74%, while high-yield returned 3.42%. Much of the dispersion within the external debt markets is likely attributable to a volatile fourth quarter, which was exacerbated by thin year-end liquidity. A major theme driving markets during the final months of the year was the collapse in oil prices. The price of a barrel of Brent crude oil peaked in late June at $115 and fell persistently over the next several months. The decline in oil prices then accelerated following OPEC’s November 27 decision to maintain production at current levels, leading to a sell-off in commodity-related assets. This led to the significant underperformance of countries that are heavily dependent on oil exports. For the year, the worst-performing countries were Ukraine and Russia, which were negatively impacted by increasing default and restructuring fears. With regard to local currency markets, the negative performance is primarily attributable to negative spot-currency returns as investors increasingly focused on the divergent paths of monetary policy between the US Federal Reserve and emerging markets central banks. For the year, Russia was by far the worst-performing country in the index, as the ruble plummeted due to the collapse in oil prices and concerns about the possibility of a fresh set of Western sanctions in response to Russia’s support of separatists in Ukraine.

This year was a difficult one across the emerging markets asset classes due to concerns about global growth (ex-US), the sharp decline in prices of oil and other commodities, rising concerns in Europe over Greek elections and a potential euro zone exit, the uncertain path of US interest rate normalization in light of strong employment and GDP data, and geopolitics. In this environment, all emerging markets currencies depreciated against the strong US dollar. Though negative, currencies in Asia fared better (flat to down over 6%) than currencies across Europe and Latin America, many of which were down 10% to nearly 50% against the dollar.

The decline in the price of oil and other commodities has weighed on emerging markets assets for the past several months. However, while emerging markets has many oil exporters, it also has some of the largest net importers of oil. These countries should see positive implications to their current accounts, growth and inflation, which in our view suggests that the net effect of lower oil prices on emerging markets growth should be positive over the medium term. This has not exerted a sustained positive impact on emerging markets asset prices or the performance of emerging

markets currencies. The Asian and emerging European regions stand to benefit as most countries (except Malaysia and Vietnam) are net oil importers. In Indonesia, for example, the government remains committed to structural reforms in the oil sector by reducing fuel subsidies which is expected to reduce its dependency on imported refined fuel and boost domestic refining (as other countries such as India and Malaysia have done). The impact of these actions on the country’s fundamental metrics will likely be felt over time, but will improve the fiscal position in the near term. Other countries in Asia such as Thailand, South Korea, and the Philippines, along with several countries in central Europe, stand to reap benefits as well.

Lazard Emerging Markets Equity Portfolio

For the year ended December 31, 2014, the Lazard Emerging Markets Equity Portfolio’s Institutional Shares posted a total return of -4.16%, while Open Shares posted a total return of -4.39%, as compared with the -2.19% return for the EM Index.

Shares of Axis Bank and Punjab National Bank, both Indian banks, increased on the back of strong returns and the expectation that, following the Modi election win in India, the economy will rebound and thus reduce credit costs for the banking sector and improve returns. Shares of Taiwan Semiconductor Manufacturing, a Taiwanese semiconductor company, increased as the company announced impressive sales results. Bank Mandiri, an Indonesian bank, reported good quarterly results. Shares of Telekomunikasi Indonesia, an Indonesian telecom company, performed well on the back of good execution and expectations for an uplift in average revenues per unit and data penetration growth.

In contrast, shares of Sberbank Russia performed poorly as plummeting oil prices and severe weakness in the ruble resulted in significant macroeconomic concerns. Mobile TeleSystems, a Russian telecommunication services company, was negatively affected by the collapsing ruble and from investor concerns regarding the parent company Sistema’s legal battle with the government in relation to dividends earned from its subsidiary Bashneft. Shares of Pacific Rubiales Energy, a Canadian energy company with assets primarily in Colombia and Latin America, declined given the company’s sensitivity to the recent collapse on oil prices. Gazprom, a Russian gas company, was negatively affected by the recent plummet in oil prices and the ruble and from

4 Annual Report

negative Russian sentiment following increased sanctions from the West. Shares of MegaFon, a Russian telecommunication services company, were also negatively affected by the collapsing ruble.

Lazard Emerging Markets Core Equity Portfolio

For the year ended December 31, 2014, the Lazard Emerging Markets Core Equity Portfolio’s Institutional Shares posted a total return of -1.25%, while Open Shares posted a total return of -1.56%, as compared with the -2.19% return for the EM Index.

Shares of Largan Precision Company, the Taiwan-based optical lens manufacturer for smartphones and other electronics, outperformed on the strong and stable growth of its smartphone lens business. ICICI Bank, an Indian Bank, helped performance on improving revenue growth, stable asset quality, and continued enthusiasm by investors for reforms in the financials sector. Tata Motors, the Indian auto company that manufactures Jaguar and Land Rover vehicles, also increased during the year on strong topline growth and margin expansion. Shares of Vipshop Holdings, a leading Chinese online discount retailer, increased due to expectations of continued strong earnings growth in the sector. CSR Corporation (CSR), the Chinese rolling stock manufacturer, helped performance, due to market enthusiasm over consolidation in the industry on their announced merger with China CNR Corp (CNR), another rolling stock manufacturer.

Holdings in Russia, especially Mail.ru, the internet service provider and online gaming company and MegaFon, a telecommunications service provider, hurt performance as continued geopolitical tension, the falling price of oil, and the depreciation of the ruble increased concerns on the outlook for the economy. Gran Tierra Energy, the Latin American oil and gas exploration and production company, and SapuraKencana, a Malaysian upstream oil and gas company, declined on the worsening oil price outlook. Shares of DGB Financial Group, a financial holding company focusing on the Greater Daegu area in South Korea, collapsed after the company announced a dilutive rights offering at an 18% discount to market price.

Lazard Developing Markets Equity Portfolio

For the year ended December 31, 2014, the Lazard Developing Markets Equity Portfolio’s Institutional Shares posted a total return of -10.27%, while Open Shares posted a total

return of -10.57%, as compared with the -2.19% return for the EM Index.

Aurobindo Pharma, an Indian generic pharmaceuticals manufacturer, outperformed on strong results and management’s projections of a positive outlook for the company. ICICI Bank, an Indian bank, outperformed due to solid earnings reports, led by strong retail advances and stable asset quality. Zhuzhou CSR Times Electric, a Chinese manufacturer of electrical systems for railways, went higher on optimism about the potential for new business from the announced merger of two rail companies, its parent company CSR and CNR. Shriram Transport Finance, an Indian commercial vehicle finance company, did well on the prospects of a rebounding economy and guidance of margin expansion and lower credit costs. Bank Rakyat Indonesia, an Indonesian bank, did well with strong efficiency gains in its business despite a higher cost of risk.

Stock selection in the financials and health care sectors, as well as in India, Korea, and Colombia helped performance.

A lower-than-index exposure to the materials and consumer staples sectors as well as to Korea and Malaysia, and a higher-than-index exposure to the health care sector as well as to India and Turkey, added value.

Globaltrans Investment, a Russian rail freight logistics company; Sberbank, a Russian bank; TMK, a Russian manufacturer of pipes for the oil and gas industry; and Yandex, a Russian internet search company; all fell as tensions between Russian and Ukraine persisted, oil prices declined and the Russian ruble weakened. Shares in Pacific Rubiales Energy, a Colombian oil and gas exploration company, fell along with the steep correction of crude oil prices.

Stock selection in the energy, information technology, consumer staples, industrials, and consumer discretionary sectors as well as in Russia, Brazil, China, and Mexico detracted value.

A lower-than-index exposure to the information technology sector as well as to South Africa, Taiwan and Thailand, and a higher-than-index exposure to Russia, Colombia, and Greece, hurt performance.

Annual Report 5

Lazard Emerging Markets Equity Blend Portfolio

For the year ended December 31, 2014, the Lazard Emerging Markets Equity Blend Portfolio’s Institutional Shares posted a total return of -8.66%, while Open Shares posted a total return of -8.95%, as compared with the -2.19% return for the EM Index.

The Portfolio is managed using a combination of two of Lazard Asset Management LLC’s, the Fund’s investment manager (the “Investment Manager”), equity strategies in emerging markets, a relative value and a relative growth strategy, and also includes small cap stocks. 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 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 events and risks; and equity and fixed income valuations, along with other data.

For 2014, stock selection and a lower-than-index exposure to materials and stock selection in the financials sector added value, as did stock selection in India, higher-than-index exposure to Turkey, stock selection and higher-than-index exposure to Indonesia, and stock selection and lower-than-index exposure to South Korea. The Portfolio’s average overweight to value versus growth and exposure to small cap stocks over the year also added to performance. In contrast, stock selection in the energy, industrials, consumer staples, telecom services, and consumer discretionary sectors detracted from performance, as did stock selection and higher-than-index exposure to Russia, stock selection in China, stock selection and higher-than-index exposure to Colombia, and stock selection in Brazil.

Lazard Emerging Markets Multi Asset Portfolio

For the year ended December 31, 2014, the Lazard Emerging Markets Multi Asset Portfolio’s Institutional Shares posted a total return of -5.57%, while Open Shares posted a total return of -5.89%, as compared with the -2.19% return for the EM Index.

The Portfolio is managed using a combination of three of the Investment Manager’s emerging-market equity strategies—relative value, relative growth, and a small-cap strategy—and two of the Investment Manager’s emerging-market fixed income 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 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 events and risks; and equity and fixed income valuations, along with other data.

For 2014, stock selection and a lower than index exposure to materials and stock selection in the financials sector added value, as did stock selection in India, higher-than-index exposure to Turkey, stock selection and higher than index exposure to Indonesia, and stock selection and lower than index exposure to South Korea. Exposure to the Romanian leu—via both derivative instruments and local currency bonds—also contributed, as did exposures to select credits such as Ivory Coast. Our average overweight to value versus growth, our exposure to small cap equities, and average overweight to debt versus currencies over the year also added. In contrast, stock selection in the energy, industrials, consumer staples, telecom services and consumer discretionary sectors detracted from performance, as did stock selection and higher than index exposure to Russia, stock selection in China, stock selection and higher than index exposure to Colombia, stock selection in Brazil, long positions in the Russian ruble, Kazakhstan tenge, Ghananian cedi, Mexican peso and Colombian peso (implemented via derivative instruments), external debt positions in Russia, Kazakhstan and Venezuela, and select corporate bond positions.

Lazard Emerging Markets Debt Portfolio

For the year ended December 31, 2014, the Lazard Emerging Markets Debt Portfolio’s Institutional Shares posted a total return of -2.07%, while Open Shares posted a total return of -2.53%, as compared with the 0.71% return for the blended 50% JPMorgan EMBI Global Diversified

6 Annual Report

Index/50% JPMorgan GBI-EM Global Diversified Index (the “Global Diversified Index”).

The largest positive contributor to returns for the year was the Portfolio’s allocation between hard currency and local currency debt. We tactically shifted these allocations throughout the year, and had a large overweight to hard currency debt in the fourth quarter when hard currency debt outperformed local currency debt by over 400 basis points.

However, within the Portfolio’s hard currency allocation, there were two key themes that detracted from performance. First, country selection was negative as the Portfolio held a number of high yield sovereigns with significant oil exposure, which underperformed in the fourth quarter. On a country-specific basis, the largest detractor from returns was Venezuela, which entered the oil price collapse from a position of extreme weakness, with an overvalued exchange rate, one of the highest levels of inflation in the world, and a double-digit fiscal deficit. Second, the Portfolio held positions in a handful of high yield corporates in the oil & gas sector which weighed on returns. High yield corporates significantly underperformed investment-grade corporates and, within high yield, oil & gas was the worst-performing industry. Accordingly, we reduced the Portfolio’s corporate exposure and, in the process, rotated out of a number of oil & gas credits and into higher quality names in the financials, telecommunications, and utility sectors.

Also weighing on performance was the Portfolio’s lower-than-benchmark duration exposure during the first half of the year. Early in the third quarter, we moved to a neutral duration position based on the view that yields were likely to remain lower for longer due to concerns about global growth.

Within the Portfolio’s local debt allocation, the largest contributor to performance was an overweight position in Brazilian rates and an underweight position in Russia. In Brazil, we focused on the long end of the yield curve, which benefited from a flattening of global rates as well as indications that the presidential election results were viewed favorably. We shifted to an underweight position in Russia following the events in Crimea, and this positioning was beneficial to returns.

Forward currency contracts were used to hedge the currency risk in the Portfolio. During the year, they detracted slightly from performance.

Lazard Emerging Markets Income Portfolio

For the period since inception on April 30, 2014 through December 31, 2014, the Lazard Emerging Markets Income Portfolio’s Institutional Shares posted a total return of -8.30%, while Open Shares posted a total return of -8.50%, as compared with the -7.73% return for the JPMorgan Emerging Local Markets^®Index Plus.

The Portfolio’s best relative performance for the period was earned from Romanian security selection and active management of currency exposure. Exposure to Romanian local debt benefited from falling bond yields and outperformed the index result. Country selection in the Asian region also helped. Portfolio underweights in Taiwan, South Korea, Singapore, and Malaysia added relative value while overweight positioning in India detracted just 2 basis points (bps).

Conversely, overweight exposure to Israel detracted 14 bps on shekel weakness due to political turmoil and loose monetary policy. We had taken an overweight exposure to Israel via short duration inflation-linked bonds which offered higher yield. Brazilian exposure was negatively impacted by currency volatility especially during the second half of 2014 stemming from election noise and a sharp decline in commodities prices, though security selection helped at the margin. Finally, Turkey detracted 11 bps of relative performance as political noise and concerns surrounding Greece’s future in the European Union overwhelmed the positive terms of trade and fiscal impact of lower imported oil prices.

Lazard Explorer Total Return Portfolio

For the year ended December 31, 2014, the Lazard Explorer Total Return Portfolio’s Institutional Shares posted a total return of -0.21%, while Open Shares posted a total return of -0.52%, as compared with the 0.71% return for the Global Diversified Index.

Throughout the year, we were highly tactical in shifting the Portfolio’s net exposure, which ranged from 23% to 94%. The vast majority of the Portfolio’s net long exposure was dedicated to hard currency debt, which was beneficial as hard currency debt significantly outperformed local currency debt during the year. However, within the Portfolio’s hard

Annual Report 7

currency allocation, there were two key themes that detracted from performance. First, country selection was negative as the Portfolio held a number of high yield sovereigns with significant oil exposure, which underperformed in the fourth quarter. On a country-specific basis, some of the largest detractors from returns were oil-exporting countries, such as Venezuela and Ecuador. In our view, Venezuela entered the oil price collapse from a position of extreme weakness, with an overvalued exchange rate, one of the highest levels of inflation in the world, and a double-digit fiscal deficit. Ecuador’s poor track record in meeting obligations during times of low oil prices further contributed to its poor performance during the fourth quarter. We reduced the Portfolio’s exposure to oil-sensitive credits in the fourth quarter, in line with a transition to a more neutral risk profile. Second, the Portfolio held positions in a handful of high yield corporates in the oil & gas sector which weighed on returns. High yield corporates significantly underperformed investment-grade corporates and, within high yield, oil & gas was the worst-performing industry. We reduced our cor-

porate exposure and, in the process, rotated out of a number of oil & gas credits and into higher quality names in the financials, telecommunications, and utility sectors. On the local currency side of the Portfolio, a position in long-dated Brazilian rates was beneficial to returns, especially in the months leading up to the Brazilian election. The long end of the yield curve benefited from a flattening of global rates, as well as indications that the presidential election results were viewed favorably. The Portfolio’s relative value positions also contributed positively to performance. We increased the Portfolio’s exposure to relative value strategies early in the year based on the view that emerging markets countries would exhibit highly disparate returns.

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. For the year, the use of derivatives detracted 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, such Portfolio’s returns would have been lower. Past performance is not indicative, or a guarantee, of future results.

8 Annual Report

The Lazard Funds, Inc. Performance Overviews

Lazard Emerging Markets Equity Portfolio

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

Average Annual Total Returns*

Years Ended December 31, 2014

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	-4.16%	3.28%	9.81%
Open Shares**	-4.39%	2.97%	9.49%
EM Index	-2.19%	1.78%	8.43%

*	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 EM Index is comprised of emerging market securities in countries open to non-local investors. The index is unmanaged, has no fees or costs and is not available for investment.

**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report 9

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*

Average Annual Total Returns*

Periods Ended December 31, 2014

	One	Since
	Year	Inception	†
Institutional Shares**	-1.25%	-2.51%
Open Shares**	-1.56%	-2.77%
EM Index	-2.19%	-4.31%

*	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 October 31, 2013.

10 Annual Report

Lazard Developing Markets Equity Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2014

	One	Five	Since
	Year	Years	Inception	†
Institutional Shares**	-10.27%	-0.82%	4.41%
Open Shares**	-10.57%	-1.13%	4.11%
EM Index	-2.19%	1.78%	5.67%

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

	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.

	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The EM Index is comprised of emerging market securities in countries open to non-local investors. The index is unmanaged, has no fees or costs and is not available for investment.

**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, primarily based on the differences in fees borne by shareholders investing in different classes.

†	The inception date for the Portfolio was September 30, 2008.

Annual Report 11

Lazard Emerging Markets Equity Blend Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2014

	One	Since
	Year	Inception	†
Institutional Shares**	-8.66%	1.25%
Open Shares**	-8.95%	0.94%
EM Index	-2.19%	3.20%

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

12 Annual Report

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 December 31, 2014

	One	Since
	Year	Inception	†
Institutional Shares**	-5.57%	-2.60%
Open Shares**	-5.89%	-2.91%
EM Index	-2.19%	-2.76%

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

	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.

	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The EM Index is comprised of emerging market securities in countries open to non-local investors. The index is unmanaged, has no fees or costs and is not available for investment.

	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.

Annual Report 13

Lazard Emerging Markets Debt Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2014

	One	Since
	Year	Inception	†
Institutional Shares**	-2.07%	2.50%
Open Shares**	-2.53%	2.17%
JPMorgan EMBI Global Diversified Index	7.43%	6.81%
JPMorgan GBI-EM Global Diversified Index	-5.72%	-0.39%
Global Diversified Index	0.71%	3.22%

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

	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.

	The performance data of the indices have been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to their accuracy. The JPMorgan EMBI Global Diversified Index is a uniquely-weighted version of the EMBI Global Index. The JPMorgan GBI-EM Global Diversified Index is a uniquely-weighted version of the GBI-EM Global Index. These indices limit the weights of those index countries with larger debt stocks by only including specified portions of these countries’ eligible current face amounts of debt outstanding. The Global Diversified Index is a 50/50 blend of the JPMorgan EMBI Global Diversified Index and the JPMorgan GBI-EM Global Diversified Index. The indices are unmanaged, have no fees or costs and are not available for investment.

**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, primarily based on the differences in fees borne by shareholders investing in different classes.

†	The inception date for the Portfolio was February 28, 2011.

14 Annual Report

Lazard 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 December 31, 2014

	Since
	Inception	†
Institutional Shares**	-8.30%
Open Shares**	-8.50%
JPMorgan Emerging Local Markets Index Plus	-7.73%

*	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.

Annual Report 15

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 December 31, 2014

	One	Since
	Year	Inception	†
Institutional Shares**	-0.21%	0.11%
Open Shares**	-0.52%	-0.16%
JPMorgan EMBI Global Diversified Index	7.43%	6.79%
JPMorgan GBI-EM Global Diversified Index	-5.72%	-5.11%
Global Diversified Index	0.71%	0.72%


*	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 June 28, 2013.

16 Annual Report

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

Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Portfolio	Beginning Account Value 7/1/14		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 - 12/31/14		Annualized Expense Ratio During Period 7/1/14 - 12/31/14

Emerging Markets Equity
Institutional Shares
Actual	$	1,000.00	$	877.90	$	5.16		1.09	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.71	$	5.55		1.09	%
Open Shares
Actual	$	1,000.00	$	876.40	$	6.48		1.37	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.30	$	6.97		1.37	%

Emerging Markets Core Equity
Institutional Shares
Actual	$	1,000.00	$	925.40	$	6.31		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.65	$	6.61		1.30	%
Open Shares
Actual	$	1,000.00	$	924.20	$	7.76		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.14	$	8.13		1.60	%

Annual Report 17

Portfolio	Beginning Account Value 7/1/14		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 - 12/31/14		Annualized Expense Ratio During Period 7/1/14 - 12/31/14

Developing Markets Equity
Institutional Shares
Actual	$	1,000.00	$	859.40	$	5.58		1.19	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.21	$	6.06		1.19	%
Open Shares
Actual	$	1,000.00	$	858.00	$	6.98		1.49	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.69	$	7.58		1.49	%

Emerging Markets Equity Blend
Institutional Shares
Actual	$	1,000.00	$	874.30	$	5.95		1.26	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.85	$	6.41		1.26	%
Open Shares
Actual	$	1,000.00	$	873.00	$	7.55		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.14	$	8.13		1.60	%

Emerging Markets Multi Asset
Institutional Shares
Actual	$	1,000.00	$	908.10	$	6.35		1.32	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.55	$	6.72		1.32	%
Open Shares
Actual	$	1,000.00	$	905.90	$	7.69		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.14	$	8.13		1.60	%

Emerging Markets Debt
Institutional Shares
Actual	$	1,000.00	$	909.30	$	4.52		0.94	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.47	$	4.79		0.94	%
Open Shares
Actual	$	1,000.00	$	906.90	$	6.25		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.65	$	6.61		1.30	%

Emerging Markets Income
Institutional Shares
Actual	$	1,000.00	$	903.40	$	4.34		0.90	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.67	$	4.58		0.90	%
Open Shares
Actual	$	1,000.00	$	902.40	$	5.75		1.20	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.16	$	6.11		1.20	%

Explorer Total Return
Institutional Shares
Actual	$	1,000.00	$	962.80	$	5.94		1.20	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.16	$	6.11		1.20	%
Open Shares
Actual	$	1,000.00	$	961.40	$	7.42		1.50	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.64	$	7.63		1.50	%

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

18 Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector and Region December 31, 2014

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		7.7	%		17.0	%		14.4	%		13.6	%		7.5	%
Consumer Staples		9.6			2.6			2.8			5.9			3.4
Energy		8.7			3.1			7.2			8.2			7.4
Financials		28.4			28.4			28.6			27.6			17.6
Health Care		—			4.1			6.3			2.8			1.5
Industrials		6.3			10.6			17.1			9.8			5.7
Information Technology		19.8			21.4			15.5			21.8			11.8
Materials		5.7			6.3			8.1			3.2			2.1
Telecommunication Services		10.1			4.3			—			5.5			3.5
Utilities		0.7			1.6			—			—			0.9
Sovereign Debt		—			—			—			—			18.1
US Treasury Securities		—			—			—			—			8.2
Short-Term Investments		3.0			0.6			—			1.6			12.3
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		13.2	%		1.6	%		13.1	%
Asia		19.6			10.5			20.7
Europe		24.1			6.9			15.9
North America		—			56.2			—
South America		32.3			11.4			36.4
Short-Term Investments		10.8			13.4			13.9
Total Investments		100.0	%		100.0	%		100.0	%


*	Represents percentage of total investments.

Annual Report 19

The Lazard Funds, Inc. Portfolios of Investments December 31, 2014

Description	Shares		Value

Lazard Emerging Markets Equity Portfolio

Common Stocks \| 97.4%

Argentina \| 1.0%
YPF Sociedad Anonima Sponsored ADR		5,182,781	$	137,188,213

Brazil \| 14.3%
Ambev SA ADR		31,227,750		194,236,605
Banco do Brasil SA		49,663,110		439,359,158
BB Seguridade Participacoes SA		23,986,900		287,938,370
CCR SA		21,407,400		122,921,328
CEMIG SA Sponsored ADR		20,481,326		101,792,190
Cielo SA		19,875,921		311,468,797
Localiza Rent a Car SA		7,477,525		99,604,422
Natura Cosmeticos SA		7,390,200		88,506,575
Souza Cruz SA		15,508,625		112,673,340
Vale SA Sponsored ADR		10,903,200		89,188,176
Via Varejo SA (a)		12,927,700		100,937,898
				1,948,626,859
China \| 11.1%
Baidu, Inc. Sponsored ADR (a)		1,257,800		286,740,666
China Construction Bank Corp., Class H		610,733,220		495,502,152
China Shenhua Energy Co., Ltd., Class H		43,149,000		126,795,473
CNOOC, Ltd.		123,873,000		167,567,335
NetEase, Inc. ADR		3,379,504		335,044,027
Weichai Power Co., Ltd., Class H		24,415,000		102,157,657
				1,513,807,310
Colombia \| 1.0%
Pacific Rubiales Energy Corp.		21,833,400		135,119,768

Egypt \| 1.2%
Commercial International Bank Egypt SAE GDR		24,212,175		159,656,535

Hong Kong \| 3.7%
China Mobile, Ltd. Sponsored ADR		6,178,504		363,419,605
Huabao International Holdings, Ltd.		178,274,000		145,402,653
				508,822,258
Hungary \| 1.0%
OTP Bank Nyrt.		9,334,242		134,804,982

Description	Shares		Value

India \| 8.6%
Axis Bank, Ltd.		33,237,161	$	262,266,024
Bajaj Auto, Ltd.		1,485,203		56,973,942
Bank of India		2,076,152		9,820,219
Bharat Heavy Electricals, Ltd.		28,408,477		118,966,142
HCL Technologies, Ltd.		3,931,885		99,808,357
Hero MotoCorp, Ltd.		1,277,066		62,737,498
Jindal Steel & Power, Ltd.		5,269,110		12,571,624
Punjab National Bank, Ltd.		68,819,120		237,172,659
Tata Consultancy Services, Ltd.		7,793,168		316,278,327
				1,176,594,792
Indonesia \| 6.6%
PT Astra International Tbk		242,523,600		143,953,751
PT Bank Mandiri (Persero) Tbk		258,548,230		223,165,717
PT Semen Indonesia (Persero) Tbk		84,078,000		109,232,112
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		7,013,755		317,232,139
PT United Tractors Tbk		76,140,784		105,746,234
				899,329,953
Macau \| 1.1%
Wynn Macau, Ltd.		56,022,000		156,539,302

Malaysia \| 0.8%
British American Tobacco Malaysia Berhad		5,703,000		105,694,607

Mexico \| 1.5%
Grupo Mexico SAB de CV, Series B		33,517,647		97,210,547
Kimberly-Clark de Mexico SAB de CV, Series A		46,686,305		101,607,880
				198,818,427
Pakistan \| 1.5%
Oil & Gas Development Co., Ltd.		43,563,549		89,262,952
Pakistan Petroleum, Ltd.		67,610,602		118,399,537
				207,662,489
Philippines \| 1.7%
Philippine Long Distance Telephone Co. Sponsored ADR		3,593,450		227,429,450

Russia \| 6.9%
ALROSA AO		102,425,222		107,887,866
Eurasia Drilling Co., Ltd. GDR		4,000,301		70,761,392
Gazprom OAO Sponsored ADR		39,575,454		183,048,466

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

20 Annual Report

Description	Shares		Value

Lazard Emerging Markets Equity Portfolio (concluded)

Lukoil OAO Sponsored ADR		2,030,138	$	80,391,293
Magnit PJSC Sponsored GDR		180,006		8,117,289
Magnit PJSC Sponsored GDR (b), (c)		1,761,265		79,961,431
MegaFon OAO GDR (b), (c)		5,557,964		76,588,744
Mobile TeleSystems OJSC Sponsored ADR		15,899,643		114,159,437
Oriflame Cosmetics SA SDR		2,244,777		31,034,856
Sberbank of Russia (a)		208,334,173		188,615,344
				940,566,118
South Africa \| 8.9%
Bidvest Group, Ltd.		4,603,082		120,379,935
Imperial Holdings, Ltd.		7,201,561		114,169,297
Nedbank Group, Ltd.		5,810,647		124,485,167
PPC, Ltd.		38,911,637		92,654,542
Sanlam, Ltd.		17,716,853		106,426,937
Shoprite Holdings, Ltd.		14,816,695		214,472,350
Standard Bank Group, Ltd.		9,710,902		119,340,552
Tiger Brands, Ltd.		3,195,992		101,223,599
Vodacom Group, Ltd.		9,308,249		102,795,627
Woolworths Holdings, Ltd.		17,833,825		117,892,664
				1,213,840,670
South Korea \| 13.9%
Coway Co., Ltd.		1,454,505		110,666,628
Hanwha Life Insurance Co., Ltd.		27,090,706		204,553,570
Hyundai Mobis Co., Ltd.		909,768		193,631,649
KB Financial Group, Inc.		6,884,058		224,829,110
KT&G Corp.		2,103,296		145,846,189
Samsung Electronics Co., Ltd.		389,495		468,193,264
Shinhan Financial Group Co., Ltd.		7,748,374		310,894,002
SK Hynix, Inc. (a)		5,327,540		229,400,030
				1,888,014,442

Description	Shares		Value

Taiwan \| 4.9%
Hon Hai Precision Industry Co., Ltd.		46,745,448	$	128,903,768
Taiwan Semiconductor Manufacturing Co., Ltd.		120,634,284		532,326,606
				661,230,374
Thailand \| 2.5%
CP All Public Co. Ltd. (b)		100,624,900		129,986,573
PTT Exploration & Production Public Co. Ltd. (b)		24,491,670		83,375,898
The Siam Cement Public Co. Ltd.		9,489,200		129,062,036
				342,424,507
Turkey \| 5.2%
Akbank TAS		37,460,608		138,029,844
Koc Holding AS		35,853,916		189,380,183
Turkcell Iletisim Hizmetleri AS (a)		27,888,264		170,307,514
Turkiye Is Bankasi AS, C Shares		73,588,923		211,091,885
				708,809,426
Total Common Stocks (Identified cost $13,514,187,329)				13,264,980,482

Short-Term Investment \| 2.9%
State Street Institutional Treasury Money Market Fund (Identified cost $401,587,979)		401,587,979		401,587,979

Total Investments \| 100.3% (Identified cost $13,915,775,308) (d)			$	13,666,568,461

Liabilities in Excess of Cash and Other Assets \| (0.3)%				(35,327,076	)

Net Assets \| 100.0%			$	13,631,241,385

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

Annual Report 21

Description	Shares		Value

Lazard Emerging Markets Core Equity Portfolio

Common Stocks \| 94.5%

Brazil \| 4.9%
Cosan, Ltd., Class A		31,195	$	241,761
Embraer SA Sponsored ADR		11,900		438,634
Klabin SA		80,660		439,931
Kroton Educacional SA		89,900		518,008
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA		19,335		306,515
Via Varejo SA (a)		32,000		249,852
				2,194,701
Canada \| 1.0%
Gran Tierra Energy, Inc. (a)		113,700		436,480

China \| 19.8%
Anhui Conch Cement Co., Ltd., Class H		181,500		678,043
Baidu, Inc. Sponsored ADR (a)		4,454		1,015,378
Beijing Capital International Airport Co., Ltd., Class H		460,000		366,911
China Lesso Group Holdings, Ltd.		502,000		244,581
China Petroleum & Chemical Corp. ADR		5,700		461,757
CSR Corp., Ltd., Class H		525,000		706,802
ENN Energy Holdings, Ltd.		62,000		350,616
Industrial and Commercial Bank of China, Ltd., Class H		2,667,000		1,937,408
Lenovo Group, Ltd.		412,000		540,287
NetEase, Inc. ADR		3,900		386,646
PICC Property & Casualty Co., Ltd., Class H		347,180		671,747
Ping An Insurance (Group) Co. of China, Ltd., Class H		78,000		787,610
Sinotrans, Ltd., Class H		588,000		390,047
Vipshop Holdings, Ltd. ADS (a)		20,900		408,386
				8,946,219
Greece \| 0.5%
Piraeus Bank SA (a)		199,306		219,267

Hong Kong \| 4.5%
Brilliance China Automotive Holdings, Ltd.		256,000		408,162
China Mobile, Ltd. Sponsored ADR		11,200		658,784
China Resources Power Holdings Co., Ltd.		140,000		360,358
Haier Electronics Group Co., Ltd.		246,000		583,897
				2,011,201

Description	Shares		Value

India \| 7.1%
Dr Reddy’s Laboratories, Ltd. ADR		9,900	$	499,455
HDFC Bank, Ltd. ADR		15,569		790,127
ICICI Bank, Ltd. Sponsored ADR		100,900		1,165,395
Tata Motors, Ltd. Sponsored ADR		17,245		729,118
				3,184,095
Indonesia \| 3.8%
PT Bank Mandiri (Persero) Tbk		663,400		572,613
PT Matahari Department Store Tbk		456,400		553,243
PT Semen Indonesia (Persero) Tbk		464,700		603,727
				1,729,583
Jordan \| 1.1%
Hikma Pharmaceuticals PLC		16,602		509,128

Malaysia \| 0.5%
SapuraKencana Petroleum Berhad		367,500		244,011

Mexico \| 7.2%
Alsea SAB de CV (a)		106,700		293,549
Cemex SAB de CV Sponsored ADR (a)		51,618		525,987
Fibra Uno Administracion SA REIT		163,100		480,885
Genomma Lab Internacional SAB de CV, B Shares (a)		179,551		342,095
Gruma SAB de CV		44,400		474,794
Grupo Financiero Banorte SAB de CV, Class O		85,800		474,077
Grupo Televisa SAB Sponsored ADR (a)		20,000		681,200
				3,272,587
Peru \| 1.1%
Credicorp, Ltd.		3,050		488,549

Philippines \| 2.8%
Alliance Global Group, Inc.		711,300		355,016
BDO Unibank, Inc.		184,140		450,407
GT Capital Holdings, Inc.		20,335		467,200
				1,272,623
Poland \| 0.6%
Powszechna Kasa Oszczednosci Bank Polski SA		29,353		295,317

Russia \| 1.6%
Magnit OJSC Sponsored GDR		5,506		248,290
Mail.ru Group, Ltd. GDR (a)		14,342		231,613
MegaFon OAO GDR		7,992		109,597
MegaFon OAO GDR (b), (c)		9,529		131,310
				720,810

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

22 Annual Report

Description	Shares		Value

Lazard Emerging Markets Core Equity Portfolio (concluded)

South Africa \| 4.4%
Aspen Pharmacare Holdings, Ltd.		12,753	$	443,758
Mondi PLC		32,155		518,428
MTN Group, Ltd.		22,455		426,124
Naspers, Ltd., N Shares		4,577		589,280
				1,977,590
South Korea \| 9.5%
DGB Financial Group, Inc.		58,172		598,541
Hotel Shilla Co., Ltd.		7,174		593,271
KEPCO Plant Service & Engineering Co., Ltd.		9,152		660,601
Samsung Electronics Co., Ltd.		644		774,121
SK Hynix, Inc. (a)		24,859		1,070,411
SK Telecom Co., Ltd. Sponsored ADR		21,100		569,911
				4,266,856
Switzerland \| 1.1%
Dufry AG (a)		3,224		477,927

Taiwan \| 16.6%
Advanced Semiconductor Engineering, Inc. ADR		77,100		472,623
Delta Electronics, Inc.		109,000		647,669
Eclat Textile Co., Ltd.		63,760		645,677
Hermes Microvision, Inc.		8,000		400,786
Hon Hai Precision Industry Co., Ltd. GDR		133,442		746,334
Largan Precision Co., Ltd.		18,000		1,347,655
MediaTek, Inc.		26,000		378,506
Mega Financial Holding Co., Ltd.		582,000		448,650
Merida Industry Co., Ltd.		80,800		547,742
President Chain Store Corp.		53,000		408,698
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		63,849		1,428,941
				7,473,281
Thailand \| 2.7%
Bangkok Bank Public Co. Ltd.		56,600		332,287
Kasikornbank Public Co. Ltd.		128,200		890,794
				1,223,081

Description	Shares		Value

Turkey \| 2.7%
TAV Havalimanlari Holding AS		99,084		$ 810, 267
Turk Traktor ve Ziraat Makineleri AS		12,007		395,150
				1,205,417
United States \| 1.0%
First Cash Financial Services, Inc. (a)		7,965		443,411

Total Common Stocks (Identified cost $43,308,508)				42,592,134

Preferred Stocks \| 2.7%

Brazil \| 2.7%
Alpargatas SA		87,120		235,343
Itau Unibanco Holding SA Sponsored ADR		75,552		982,932

Total Preferred Stocks (Identified cost $1,526,918)				1,218,275

Right \| 0.0%

South Korea \| 0.0%
DGB Financial Group, Inc., Expires 01/13/15 (Identified cost $197)		11,771		18,634

Short-Term Investment \| 0.6%
State Street Institutional Treasury Money Market Fund (Identified cost $258,200)		258,200		258,200

Total Investments \| 97.8% (Identified cost $45,093,823) (d)			$	44,087,243

Cash and Other Assets in Excess of Liabilities \| 2.2%				1,011,434

Net Assets \| 100.0%			$	45,098,677

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

Annual Report 23

Description	Shares		Value

Lazard Developing Markets Equity Portfolio

Common Stocks \| 95.8%

Brazil \| 7.7%
Estacio Participacoes SA		852,900	$	7,547,895
Gerdau SA Sponsored ADR		1,373,350		4,875,392
Kroton Educacional SA		773,500		4,456,946
Localiza Rent a Car SA		262,420		3,495,567
Petroleo Brasileiro SA Sponsored ADR		662,500		5,021,750
Vale SA Sponsored ADR		595,115		4,868,041
Via Varejo SA (a)		505,400		3,946,101
				34,211,692
China \| 21.0%
AAC Technologies Holdings, Inc.		1,309,200		6,982,528
Agricultural Bank of China, Ltd., Class H		19,952,500		10,020,703
Anhui Conch Cement Co., Ltd., Class H		3,140,500		11,732,191
Anton Oilfield Services Group		4,664,000		1,007,215
Baidu, Inc. Sponsored ADR (a)		51,610		11,765,532
China Construction Bank Corp., Class H		4,695,184		3,809,313
China Merchants Bank Co., Ltd., Class H		3,483,711		8,693,782
China National Materials Co., Ltd., Class H		14,333,890		4,301,174
China Oilfield Services, Ltd., Class H		1,976,000		3,434,688
New Oriental Education & Technology Group, Inc. Sponsored ADR (a)		252,200		5,147,402
Ping An Insurance (Group) Co. of China, Ltd., Class H		1,102,000		11,127,514
Zhuzhou CSR Times Electric Co., Ltd., Class H		2,577,500		14,973,774
				92,995,816
Colombia \| 3.3%
Bancolombia SA Sponsored ADR		155,900		7,464,492
Cemex Latam Holdings SA (a)		550,178		3,685,099
Pacific Rubiales Energy Corp.		525,229		3,250,470
				14,400,061
Greece \| 1.1%
Piraeus Bank SA (a)		4,311,031		4,742,790

Hong Kong \| 5.9%
China State Construction International Holdings, Ltd.		7,713,340		10,837,230
Melco Crown Entertainment, Ltd. ADR		149,000		3,784,600
Techtronic Industries Co., Ltd.		3,530,500		11,314,158
				25,935,988

Description	Shares		Value

India \| 14.1%
Adani Ports & Special Economic Zone, Ltd.		1,357,832	$	6,868,499
Aurobindo Pharma, Ltd.		719,572		12,906,096
Glenmark Pharmaceuticals, Ltd.		582,317		7,079,080
HDFC Bank, Ltd. Sponsored ADR		133,355		6,767,766
ICICI Bank, Ltd. Sponsored ADR		711,275		8,215,226
Reliance Industries, Ltd.		408,862		5,757,249
Shriram Transport Finance Co., Ltd.		461,855		8,064,123
Tata Motors, Ltd. Sponsored ADR		155,700		6,582,996
				62,241,035
Indonesia \| 1.8%
PT Bank Rakyat Indonesia (Persero) Tbk		8,660,000		8,063,854

Macau \| 0.7%
Sands China, Ltd.		655,200		3,190,939

Mexico \| 3.7%
Genomma Lab Internacional SAB de CV, B Shares (a)		3,938,000		7,502,986
Grupo Financiero Banorte SAB de CV, Class O		1,624,457		8,975,734
				16,478,720
Peru \| 2.2%
Credicorp, Ltd.		60,300		9,658,854

Poland \| 1.0%
Eurocash SA		409,918		4,389,082

Russia \| 6.8%
Globaltrans Investment PLC Sponsored GDR		539,283		2,728,712
NovaTek OAO Sponsored GDR		104,033		8,079,413
Sberbank of Russia (a)		4,412,795		3,995,124
TMK OAO GDR		731,280		1,688,867
X5 Retail Group NV GDR (a)		655,000		7,960,043
Yandex NV Class A (a)		322,900		5,799,284
				30,251,443
South Africa \| 1.7%
Exxaro Resources, Ltd.		370,274		3,295,675
Standard Bank Group, Ltd.		362,208		4,451,296
				7,746,971

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

24 Annual Report

Description	Shares		Value

Lazard Developing Markets Equity Portfolio (concluded)

South Korea \| 6.9%
Halla Visteon Climate Control Corp.		139,782	$	6,117,729
Kia Motors Corp.		109,219		5,160,281
Korea Aerospace Industries, Ltd.		240,144		8,623,584
Samsung Electronics Co., Ltd.		8,726		10,489,106
				30,390,700
Taiwan \| 9.1%
Advanced Semiconductor Engineering, Inc.		3,508,000		4,170,383
Catcher Technology Co., Ltd.		896,000		6,896,301
Hiwin Technologies Corp.		954,821		7,904,225
MediaTek, Inc.		608,000		8,851,219
Taiwan Semiconductor Manufacturing Co., Ltd.		2,863,000		12,633,648
				40,455,776
Turkey \| 6.1%
Aselsan Elektronik Sanayi Ve Ticaret AS		1,414,433		7,262,257
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		6,140,785		7,248,336
Ford Otomotiv Sanayi AS		405,024		5,646,383
TAV Havalimanlari Holding AS		837,667		6,850,087
				27,007,063
United States \| 2.7%
First Cash Financial Services, Inc. (a)		109,500		6,095,865
Freeport-McMoRan, Inc.		251,700		5,879,712
				11,975,577

Total Common Stocks (Identified cost $465,653,330)				424,136,361

Description	Shares		Value

Preferred Stocks \| 2.8%

Brazil \| 2.8%
Banco Bradesco SA ADR		549,188	$	7,342,644
Marcopolo SA		4,111,300		5,126,105

Total Preferred Stocks (Identified cost $18,326,166)				12,468,749

Short-Term Investment \| 0.0%
State Street Institutional Treasury Money Market Fund (Identified cost $63,315)		63,315		63,315

Total Investments \| 98.6% (Identified cost $484,042,811) (d)			$	436,668,425

Cash and Other Assets in Excess of Liabilities \| 1.4%				6,207,790

Net Assets \| 100.0%			$	442,876,215

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

Annual Report 25

Description	Shares		Value

Lazard Emerging Markets Equity Blend Portfolio

Common Stocks \| 95.6%

Argentina \| 1.0%
YPF Sociedad Anonima Sponsored ADR		217,165	$	5,748,358

Brazil \| 9.4%
Ambev SA ADR		779,675		4,849,578
Banco do Brasil SA		897,057		7,936,076
Cielo SA Sponsored ADR		518,847		8,156,275
Companhia de Locacao das Americas		411,000		655,691
Estacio Participacoes SA		663,300		5,869,995
GAEC Educacao SA		159,745		2,108,432
Grendene SA		535,875		3,082,139
Iochpe-Maxion SA		355,000		1,628,920
Localiza Rent a Car SA		500,300		6,664,249
Natura Cosmeticos SA		217,195		2,601,173
Petroleo Brasileiro SA Sponsored ADR		433,950		3,289,341
Souza Cruz SA		488,035		3,545,674
Tegma Gestao Logistica SA		353,145		2,090,279
Via Varejo SA (a)		366,700		2,863,149
				55,340,971
Cambodia \| 0.5%
NagaCorp, Ltd.		3,972,000		3,236,785

China \| 17.3%
AAC Technologies Holdings, Inc.		952,640		5,080,840
Agricultural Bank of China, Ltd., Class H		17,685,000		8,881,901
Anhui Conch Cement Co., Ltd., Class H		1,733,000		6,474,092
Baidu, Inc. Sponsored ADR (a)		89,384		20,376,871
China Construction Bank Corp., Class H		14,493,281		11,758,738
China Lesso Group Holdings, Ltd.		6,277,000		3,058,232
China Oilfield Services, Ltd., Class H		1,132,000		1,967,645
China Pioneer Pharma Holdings, Ltd.		2,250,000		1,745,617
China Shenhua Energy Co., Ltd., Class H		2,188,000		6,429,546
China ZhengTong Auto Services Holdings, Ltd.		6,178,000		2,701,808
CNOOC, Ltd.		4,725,800		6,392,755
Greatview Aseptic Packaging Co., Ltd.		5,907,000		3,040,775
NetEase, Inc. ADR		124,585		12,351,357
New Oriental Education & Technology Group, Inc. Sponsored ADR (a)		184,120		3,757,889
Ping An Insurance (Group) Co. of China, Ltd., Class H		767,500		7,749,879
				101,767,945

Description	Shares		Value

Colombia \| 1.6%
Bancolombia SA Sponsored ADR		81,920	$	3,922,330
Pacific Rubiales Energy Corp.		873,285		5,404,475
				9,326,805
Egypt \| 0.8%
Commercial International Bank Egypt SAE GDR		745,206		4,913,933

Georgia \| 0.3%
Bank of Georgia Holdings PLC		56,247		1,804,278

Greece \| 0.8%
Piraeus Bank SA (a)		4,011,870		4,413,668

Hong Kong \| 4.1%
China Mobile, Ltd. Sponsored ADR		130,395		7,669,834
China State Construction International Holdings, Ltd.		5,126,504		7,202,729
Future Bright Holdings, Ltd.		5,778,000		1,799,933
Pacific Textiles Holdings, Ltd.		1,614,000		2,134,896
Techtronic Industries Co., Ltd.		1,714,000		5,492,839
				24,300,231
Hungary \| 0.6%
OTP Bank Nyrt.		248,645		3,590,927

India \| 8.7%
Aurobindo Pharma, Ltd.		348,036		6,242,302
Axis Bank, Ltd.		1,845,338		14,561,095
Bajaj Auto, Ltd.		76,148		2,921,117
Dewan Housing Finance Corp., Ltd.		518,230		3,196,286
HCL Technologies, Ltd.		118,054		2,996,724
ICICI Bank, Ltd. Sponsored ADR		621,165		7,174,456
Reliance Industries, Ltd.		301,279		4,242,356
Tata Motors, Ltd. Sponsored ADR		152,915		6,465,246
UPL, Ltd.		621,733		3,397,027
				51,196,609
Indonesia \| 5.4%
PT Bank Mandiri (Persero) Tbk		7,996,200		6,901,914
PT Bank Rakyat Indonesia (Persero) Tbk		9,093,018		8,467,063
PT Bekasi Fajar Industrial Estate Tbk		38,103,300		2,214,073
PT Pakuwon Jati Tbk		73,037,600		3,013,671
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		165,850		7,501,396
PT United Tractors Tbk		2,615,080		3,631,889
				31,730,006

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

26 Annual Report

Description	Shares		Value

Lazard Emerging Markets Equity Blend Portfolio (continued)

Macau \| 1.8%
Sands China, Ltd.		815,400	$	3,971,141
Wynn Macau, Ltd.		2,269,130		6,340,510
				10,311,651
Malaysia \| 0.9%
Berjaya Auto Berhad		2,398,100		2,258,695
Kossan Rubber Industries Berhad		2,328,200		2,962,523
				5,221,218
Mexico \| 3.4%
Credito Real SAB de CV		897,023		1,920,053
Genomma Lab Internacional SAB de CV, B Shares (a)		2,700,956		5,146,073
Grupo Financiero Banorte SAB de CV, Class O		724,500		4,003,134
Grupo Financiero Interacciones SA de CV, Class O		302,201		2,048,095
Grupo Mexico SAB de CV, Series B		997,801		2,893,902
Kimberly-Clark de Mexico SAB de CV, Series A		1,847,700		4,021,326
				20,032,583
Peru \| 0.8%
Credicorp, Ltd.		28,400		4,549,112

Philippines \| 0.8%
Philippine Long Distance Telephone Co. Sponsored ADR		71,602		4,531,691

Poland \| 0.7%
Eurocash SA		374,772		4,012,766

Russia \| 6.5%
DIXY Group OJSC (a)		207,972		1,231,742
Gazprom OAO Sponsored ADR		840,615		3,888,099
Globaltrans Investment PLC Sponsored GDR		206,485		1,048,447
Lukoil OAO Sponsored ADR		87,773		3,366,095
MegaFon OAO GDR		13,033		178,726
MegaFon OAO GDR (b), (c)		198,329		2,732,974
Mobile TeleSystems OJSC Sponsored ADR		462,300		3,319,314

Description	Shares		Value

NovaTek OAO Sponsored GDR		70,675	$	5,488,763
Oriflame Cosmetics SA SDR		137,752		1,904,471
Sberbank of Russia (a)		2,198,624		1,990,524
Sberbank of Russia Sponsored ADR		1,085,877		4,205,602
TMK OAO GDR		473,686		1,093,962
X5 Retail Group NV GDR (a)		361,418		4,392,218
Yandex NV Class A (a)		181,285		3,255,879
				38,096,816
South Africa \| 2.0%
Standard Bank Group, Ltd.		483,154		5,937,643
Sun International, Ltd.		182,475		2,027,931
Tiger Brands, Ltd.		113,457		3,593,415
				11,558,989
South Korea \| 9.8%
Eugene Technology Co., Ltd.		201,981		2,960,325
Fila Korea, Ltd.		33,271		3,367,720
Hanwha Life Insurance Co., Ltd.		809,909		6,115,373
Hyundai Mobis Co., Ltd.		31,283		6,658,158
KT&G Corp.		61,535		4,266,943
Partron Co., Ltd.		294,493		3,111,540
Samsung Electronics Co., Ltd.		12,729		15,300,921
Shinhan Financial Group Co., Ltd.		182,068		7,305,255
SK Hynix, Inc. (a)		192,881		8,305,317
				57,391,552
Taiwan \| 10.4%
Actron Technology Corp.		620,000		2,188,950
Catcher Technology Co., Ltd.		651,000		5,010,593
Chailease Holding Co., Ltd.		1,127,900		2,796,841
Chicony Electronics Co., Ltd.		1,140,520		3,168,079
Hon Hai Precision Industry Co., Ltd.		1,491,712		4,113,498
King Slide Works Co., Ltd.		177,000		2,252,868
Macauto Industrial Co., Ltd.		758,000		2,694,519
Makalot Industrial Co., Ltd.		588,661		3,144,701
MediaTek, Inc.		347,000		5,051,601
Radiant Opto-Electronics Corp.		701,280		2,224,254
Silergy Corp.		287,000		2,347,996
Sinmag Equipment Corp.		513,760		3,096,707
Taiwan Semiconductor Manufacturing Co., Ltd.		4,741,000		20,920,756
Voltronic Power Technology Corp.		251,000		2,264,587
				61,275,950

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

Annual Report 27

Description	Shares		Value

Lazard Emerging Markets Equity Blend Portfolio (concluded)

Thailand \| 0.8%
Dynasty Ceramic Public Co. Ltd. (b)		330,900	$	568,263
KCE Electronics Public Co., Ltd (b)		1,883,800		1,961,099
Supalai Public Co. Ltd. (b)		2,962,800		2,170,318
				4,699,680
Turkey \| 7.2%
Aselsan Elektronik Sanayi Ve Ticaret AS		835,227		4,288,385
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		3,123,171		3,686,466
Ford Otomotiv Sanayi AS		274,383		3,825,135
Koc Holding AS ADR		359,367		9,483,695
TAV Havalimanlari Holding AS		592,880		4,848,323
Turkcell Iletisim Hizmetleri AS ADR (a)		377,275		5,704,398
Turkiye Is Bankasi AS, C Shares		2,503,823		7,182,286
Turkiye Sinai Kalkinma Bankasi AS		3,665,045		3,157,303
				42,175,991

Total Common Stocks (Identified cost $600,848,279)				561,228,515

Description	Shares		Value

Preferred Stocks \| 1.7%

Brazil \| 1.7%
Banco ABC Brasil SA		564,362	$	2,865,790
Marcopolo SA		3,533,900		4,406,184
Vale SA Sponsored ADR		364,915		2,649,283

Total Preferred Stocks (Identified cost $15,943,349)				9,921,257

Short-Term Investment \| 1.6%
State Street Institutional Treasury Money Market Fund (Identified cost $9,275,314)		9,275,314		9,275,314


Total Investments \| 98.9% (Identified cost $626,066,942) (d)			$	580,425,086

Cash and Other Assets in Excess of Liabilities \| 1.1%				6,374,220

Net Assets \| 100.0%			$	586,799,306

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

28 Annual Report

Description	Shares		Value

Lazard Emerging Markets Multi Asset Portfolio

Common Stocks \| 51.6%

Argentina \| 0.5%
YPF Sociedad Anonima Sponsored ADR		37,987	$	1,005,516

Brazil \| 5.1%
Ambev SA ADR		141,500		880,130
Banco do Brasil SA		160,490		1,419,822
Cielo SA Sponsored ADR		90,709		1,425,945
Companhia de Locacao das Americas		65,000		103,698
Estacio Participacoes SA		129,240		1,143,733
GAEC Educacao SA		26,970		355,970
Grendene SA		94,000		540,651
Iochpe-Maxion SA		61,600		282,652
Localiza Rent a Car SA		86,600		1,153,556
Natura Cosmeticos SA		38,055		455,755
Petroleo Brasileiro SA Sponsored ADR		80,340		608,977
Souza Cruz SA		85,464		620,913
Tegma Gestao Logistica SA		61,952		366,696
Via Varejo SA (a)		71,375		557,287
				9,915,785
Cambodia \| 0.3%
NagaCorp, Ltd.		700,565		570,891

China \| 9.1%
AAC Technologies Holdings, Inc.		176,500		941,351
Agricultural Bank of China, Ltd., Class H		3,268,000		1,641,281
Anhui Conch Cement Co., Ltd., Class H		274,000		1,023,601
Baidu, Inc. Sponsored ADR (a)		16,007		3,649,116
China Construction Bank Corp., Class H		2,565,065		2,081,097
China Lesso Group Holdings, Ltd.		1,097,775		534,850
China Oilfield Services, Ltd., Class H		210,000		365,023
China Pioneer Pharma Holdings, Ltd.		366,000		283,954
China Shenhua Energy Co., Ltd., Class H		384,000		1,128,403
China ZhengTong Auto Services Holdings, Ltd.		1,077,070		471,032
CNOOC, Ltd.		835,000		1,129,534
Greatview Aseptic Packaging Co., Ltd.		957,000		492,639
NetEase, Inc. ADR		21,765		2,157,782
New Oriental Education & Technology Group, Inc. Sponsored ADR (a)		32,130		655,773
Ping An Insurance (Group) Co. of China, Ltd., Class H		130,175		1,314,450
				17,869,886

Description	Shares		Value

Colombia \| 0.9%
Bancolombia SA Sponsored ADR		15,120	$	723,945
Pacific Rubiales Energy Corp.		152,655		944,732
				1,668,677
Egypt \| 0.4%
Commercial International Bank Egypt SAE GDR		131,092		864,428

Georgia \| 0.2%
Bank of Georgia Holdings PLC		9,785		313,881

Greece \| 0.4%
Piraeus Bank SA (a)		769,817		846,916

Hong Kong \| 2.2%
China Mobile, Ltd. Sponsored ADR		22,828		1,342,743
China State Construction International Holdings, Ltd.		950,125		1,334,924
Future Bright Holdings, Ltd.		1,022,175		318,423
Pacific Textiles Holdings, Ltd.		279,000		369,043
Techtronic Industries Co., Ltd.		315,500		1,011,080
				4,376,213
Hungary \| 0.3%
OTP Bank Nyrt.		45,242		653,384

India \| 4.8%
Aurobindo Pharma, Ltd.		64,268		1,152,698
Axis Bank, Ltd.		328,269		2,590,287
Bajaj Auto, Ltd.		16,056		615,925
Dewan Housing Finance Corp., Ltd.		87,353		538,767
HCL Technologies, Ltd.		20,816		528,401
ICICI Bank, Ltd. Sponsored ADR		115,005		1,328,308
Reliance Industries, Ltd.		55,520		781,786
Tata Motors, Ltd. Sponsored ADR		28,295		1,196,312
UPL, Ltd.		107,242		585,949
				9,318,433
Indonesia \| 3.0%
PT Bank Mandiri (Persero) Tbk		1,488,500		1,284,798
PT Bank Rakyat Indonesia (Persero) Tbk		1,796,100		1,672,458
PT Bekasi Fajar Industrial Estate Tbk		6,422,700		373,205
PT Pakuwon Jati Tbk		12,678,360		523,133
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		29,447		1,331,888
PT United Tractors Tbk		496,115		689,017
				5,874,499

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

Annual Report 29

Description	Shares		Value

Lazard Emerging Markets Multi Asset Portfolio (continued)

Macau \| 1.0%
Sands China, Ltd.		150,900	$	734,909
Wynn Macau, Ltd.		400,000		1,117,699
				1,85,208
Malaysia \| 0.5%
Berjaya Auto Berhad		416,200		392,006
Kossan Rubber Industries Berhad		405,785		516,342
				908,348
Mexico \| 1.8%
Credito Real SAB de CV		156,355		334,674
Genomma Lab Internacional SAB de CV, B Shares (a)		498,255		949,314
Grupo Financiero Banorte SAB de CV, Class O		133,700		738,743
Grupo Financiero Interacciones SA de CV, Class O		52,707		357,209
Grupo Mexico SAB de CV, Series B		173,209		502,354
Kimberly-Clark de Mexico SAB de CV, Series A		334,435		727,863
				3,610,157
Peru \| 0.4%
Credicorp, Ltd.		5,285		846,551

Philippines \| 0.4%
Philippine Long Distance Telephone Co. Sponsored ADR		12,940		818,973

Poland \| 0.4%
Eurocash SA		73,298		784,818

Russia \| 3.5%
DIXY Group OJSC (a)		36,717		217,461
Gazprom OAO Sponsored ADR		150,419		695,734
Globaltrans Investment PLC Sponsored GDR		36,194		183,778
Lukoil OAO Sponsored ADR		15,285		586,180
MegaFon OAO GDR		6,267		85,942
MegaFon OAO GDR (b), (c)		33,373		459,880
Mobile TeleSystems OJSC Sponsored ADR		80,810		580,216
NovaTek OAO Sponsored GDR		13,078		1,015,664
Oriflame Cosmetics SA SDR		23,430		323,928
Sberbank of Russia (a)		427,637		387,161
Sberbank of Russia Sponsored ADR		189,212		732,818

Description	Shares		Value

TMK OAO GDR		87,580	$	202,263
X5 Retail Group NV GDR (a)		66,802		811,827
Yandex NV Class A (a)		33,500		601,660
				6,884,512
South Africa \| 1.1%
Standard Bank Group, Ltd.		86,676		1,065,191
Sun International, Ltd.		31,801		353,420
Tiger Brands, Ltd.		20,471		648,358
				2,066,969
South Korea \| 5.5%
Eugene Technology Co., Ltd.		35,185		515,687
Fila Korea, Ltd.		5,749		581,919
Hanwha Life Insurance Co., Ltd.		151,876		1,146,769
Hyundai Mobis Co., Ltd.		5,870		1,249,349
KT&G Corp.		11,755		815,112
Partron Co., Ltd.		51,646		545,679
Samsung Electronics Co., Ltd.		2,452		2,947,432
Shinhan Financial Group Co., Ltd.		33,855		1,358,390
SK Hynix, Inc. (a)		36,206		1,559,004
				10,719,341
Taiwan \| 5.6%
Actron Technology Corp.		105,000		370,709
Catcher Technology Co., Ltd.		120,000		923,612
Chailease Holding Co., Ltd.		198,500		492,218
Chicony Electronics Co., Ltd.		199,545		554,286
Hon Hai Precision Industry Co., Ltd. GDR		129,784		725,876
King Slide Works Co., Ltd.		30,000		381,842
Macauto Industrial Co., Ltd.		133,000		472,785
Makalot Industrial Co., Ltd.		101,343		541,387
MediaTek, Inc.		65,000		946,265
Radiant Opto-Electronics Corp.		122,930		389,898
Silergy Corp.		48,000		392,696
Sinmag Equipment Corp.		89,720		540,791
Taiwan Semiconductor Manufacturing Co., Ltd.		325,000		1,434,137
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		105,585		2,362,992
Voltronic Power Technology Corp.		42,000		378,935
				10,908,429
Thailand \| 0.4%
Dynasty Ceramic Public Co. Ltd. (b)		78,800		135,325
KCE Electronics Public Co., Ltd. (b)		317,500		330,528
Supalai Public Co. Ltd. (b)		513,600		376,224
				842,077

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

30 Annual Report

Description	Shares		Value

Lazard Emerging Markets Multi Asset Portfolio (continued)

Turkey \| 3.8%
Aselsan Elektronik Sanayi Ve Ticaret AS		154,103	$	791,225
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		575,849		679,709
Ford Otomotiv Sanayi AS		50,614		705,603
Koc Holding AS ADR		57,304		1,512,253
TAV Havalimanlari Holding AS		109,063		891,871
Turkcell Iletisim Hizmetleri AS ADR (a)		67,027		1,013,448
Turkiye Is Bankasi AS, C Shares		438,367		1,257,468
Turkiye Sinai Kalkinma Bankasi AS		617,782		532,197
				7,383,774

Total Common Stocks (Identified cost $109,298,809)				100,905,066

Preferred Stocks \| 0.9%

Brazil \| 0.9%
Banco ABC Brasil SA		98,546		500,409
Marcopolo SA		653,620		814,955
Vale SA Sponsored ADR		63,710		462,535

Total Preferred Stocks (Identified cost $2,704,723)				1,777,899

Description

Security
Currency

Principal
Amount
(000)

Value

Corporate Bonds | 8.2%

Argentina | 0.1%

YPF Sociedad Anonima,
8.750%, 04/04/24

USD

200

201,000

Brazil | 0.9%

Banco do Brasil SA:

9.000%, 06/18/24 (g)

USD

200

186,500

9.000%, 06/18/24 (c), (g)

USD

425

396,313

Gol LuxCo SA,
8.875%, 01/24/22 (c)

USD

450

429,687

Klabin Finance SA,
5.250%, 07/16/24

USD

225

218,250

Description	Security Currency		Principal Amount (000)		Value

Odebrecht Finance, Ltd., 5.250%, 06/27/29		USD		225	$	196,763
Odebrecht Offshore Drilling Finance, Ltd.: 6.625%, 10/01/23		USD		192		174,194
6.625%, 10/01/23 (c)		USD		192		174,194
						1,775,901
Bulgaria \| 0.2%
ContourGlobal Power Holdings SA, 7.125%, 06/01/19 (c)		USD		350		351,750

Chile \| 0.8%
Colbun SA, 4.500%, 07/10/24		USD		225		226,125
E.CL SA, 4.500%, 01/29/25 (c)		USD		200		201,260
Empresa Electrica Angamos SA, 4.875%, 05/25/29 (c)		USD		200		197,500
ENTEL Chile SA, 4.875%, 10/30/24		USD		400		408,000
GNL Quintero SA, 4.634%, 07/31/29		USD		225		228,667
SACI Falabella, 4.375%, 01/27/25 (c)		USD		200		196,500
						1,458,052
China \| 0.9%
BCP Singapore VI Cayman Financing Co., Ltd.:
8.000%, 04/15/21		USD		200		202,750
8.000%, 04/15/21 (c)		USD		100		101,375
Bestgain Real Estate, Ltd., 2.625%, 03/13/18		USD		200		195,110
Country Garden Holdings Co., Ltd., 7.250%, 04/04/21		USD		400		383,000
Green Dragon Gas, Ltd., 10.000%, 11/20/17		USD		200		196,000
Honghua Group, Ltd., 7.450%, 09/25/19 (c)		USD		175		104,125
Maoye International Holdings, Ltd., 7.750%, 05/19/17 (c)		USD		300		295,500
MIE Holdings Corp., 7.500%, 04/25/19 (c)		USD		400		309,396
						1,787,256

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

Annual Report 31

Description	Security Currency		Principal Amount (000)		Value

Lazard Emerging Markets Multi Asset Portfolio (continued)

Colombia \| 0.4%
Bancolombia SA, 5.125%, 09/11/22		USD		325	$	322,969
Grupo Aval, Ltd., 4.750%, 09/26/22		USD		225		218,812
Oleoducto Central SA, 4.000%, 05/07/21		USD		175		167,563
						709,344
Georgia \| 0.1%
Bank of Georgia JSC, 7.750%, 07/05/17		USD		200		205,500

Guatemala \| 0.3%
Comcel Trust, 6.875%, 02/06/24 (c)		USD		325		341,250
Industrial Senior Trust:
5.500%, 11/01/22		USD		100		99,311
5.500%, 11/01/22 (c)		USD		200		196,000
						636,561
India \| 0.1%
Greenko Dutch BV, 8.000%, 08/01/19 (c)		USD		250		221,950

Indonesia \| 0.3%
Ottawa Holdings Pte, Ltd., 5.875%, 05/16/18		USD		200		160,500
PT Perusahaan Gas Negara Persero Tbk, 5.125%, 05/16/24		USD		300		306,000
						466,500
Iraq \| 0.3%
Genel Energy Finance, Ltd., 7.500%, 05/14/19		USD		200		170,000
Gulf Keystone Petroleum, Ltd., 13.000%, 04/18/17 (c)		USD		400		312,750
						482,750
Kazakhstan \| 0.2%
Halyk Savings Bank of Kazakhstan JSC, 7.250%, 01/28/21		USD		400		396,000

Description	Security Currency		Principal Amount (000)		Value

Kuwait \| 0.1%
Kuwait Energy PLC, 9.500%, 08/04/19		USD		275	$	257,125

Mexico \| 1.4%
Alfa SAB de CV, 5.250%, 03/25/24		USD		300		312,000
America Movil SAB de CV:
6.000%, 06/09/19		MXN		2,000		136,274
6.450%, 12/05/22		MXN		2,000		133,361
Bio Pappel SAB de CV, 10.000%, 08/27/16		USD		120		121,490
Credito Real SAB de CV, 7.500%, 03/13/19 (c)		USD		300		306,000
Empresas ICA SAB de CV, 8.875%, 05/29/24 (c)		USD		350		314,869
Mexichem SAB de CV, 4.875%, 09/19/22		USD		225		231,750
Mexico Generadora de Energia S de rl, 5.500%, 12/06/32		USD		425		416,500
Oro Negro Drilling Pte, Ltd., 7.500%, 01/24/19 (c)		USD		210		170,100
Sixsigma Networks Mexico SA de CV, 8.250%, 11/07/21 (c)		USD		200		204,000
Unifin Financiera SAPI de CV SOFOM ENR, 6.250%, 07/22/19 (c)		USD		400		366,000
						2,712,344
Nigeria \| 0.4%
Diamond Bank PLC, 8.750%, 05/21/19		USD		200		171,040
FBN Finance Co. BV:
8.250%, 08/07/20		USD		200		186,650
8.000%, 07/23/21		USD		200		177,250
Seven Energy, Ltd., 10.250%, 10/11/21 (c)		USD		325		290,875
						825,815
Panama \| 0.1%
Global Bank Corp., 5.125%, 10/30/19 (c)		USD		200		202,544

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

32 Annual Report

Description	Security Currency		Principal Amount (000)		Value

Lazard Emerging Markets Multi Asset Portfolio (continued)

Paraguay \| 0.1%
Telefonica Celular del Paraguay SA, 6.750%, 12/13/22		USD		200	$	210,000

Peru \| 0.3%
Banco de Credito del Peru, 6.125%, 04/24/27		USD		325		344,500
Cementos Pacasmayo SAA, 4.500%, 02/08/23		USD		200		187,000
						531,500
Russia \| 0.5%
Alliance Oil Co., Ltd., 7.000%, 05/04/20		USD		200		90,000
ALROSA Finance SA, 7.750%, 11/03/20		USD		425		399,500
EDC Finance, Ltd., 4.875%, 04/17/20 (c)		USD		200		129,000
Gazprom OAO Via Gaz Capital SA, 4.300%, 11/12/15 (c)		USD		400		392,000
						1,010,500
Singapore \| 0.4%
Marquee Land Pte, Ltd., 9.750%, 08/05/19		USD		200		195,500
Opus Offshore Ventures Pte, Ltd., 9.000%, 07/18/15		USD		300		303,750
Pacnet, Ltd., 9.000%, 12/12/18		USD		290		327,700
						826,950
Thailand \| 0.1%
PTT Exploration & Production Public Co. Ltd., 4.875%, 12/29/49		USD		225		223,875

Uruguay \| 0.1%
Navios South American Logistics, Inc., 7.250%, 05/01/22		USD		250		252,500

Description	Security Currency		Principal Amount (000)		Value

Vietnam \| 0.1%
Vingroup JSC, 11.625%, 05/07/18		USD		250	$	261,013

Total Corporate Bonds (Identified cost $17,145,325)						16,006,730

Foreign Government Obligations \| 18.3%

Angola \| 0.6%
Republic of Angola Northern Lights III BV, 7.000%, 08/16/19		USD		1,240		1,233,800

Bahrain \| 0.6%
Kingdom of Bahrain, 6.000%, 09/19/44 (c)		USD		1,285		1,233,600

Belarus \| 0.3%
Republic of Belarus, 8.950%, 01/26/18		USD		750		693,750

Bolivia \| 0.7%
Bolivia Government Bonds:
4.875%, 10/29/22		USD		650		659,750
5.950%, 08/22/23		USD		600		631,500
						1,291,250
Brazil \| 1.0%
Brazil NTN-B:
6.000%, 08/15/16		BRL		680		642,855
6.000%, 08/15/18		BRL		270		253,065
6.000%, 08/15/50		BRL		1,055		972,378
						1,868,298
Chile \| 0.1%
Republic of Chile, 2.250%, 10/30/22		USD		150		144,525

Colombia \| 0.6%
Republic of Colombia:
4.000%, 02/26/24		USD		300		307,500
6.125%, 01/18/41		USD		100		120,000
5.625%, 02/26/44		USD		750		847,500
						1,275,000

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

Annual Report 33

Description	Security Currency		Principal Amount (000)		Value

Lazard Emerging Markets Multi Asset Portfolio (continued)

Congo \| 0.5%
Republic of Congo, 3.500%, 06/30/29 (e)		USD		1,027	$	934,524

Costa Rica \| 0.3%
Costa Rica Government, 5.625%, 04/30/43		USD		525		434,438
Republic of Costa Rica, 7.000%, 04/04/44		USD		200		197,375
						631,813
Croatia \| 0.3%
Croatia:
6.250%, 04/27/17		USD		250		266,250
6.625%, 07/14/20		USD		100		110,625
6.000%, 01/26/24		USD		225		243,563
						620,438
Dominican Republic \| 0.1%
Dominican Republic, 7.450%, 04/30/44		USD		225		247,500

Ecuador \| 0.5%
Republic of Ecuador, 7.950%, 06/20/24 (c)		USD		1,050		903,000

El Salvador \| 0.2%
Republic of El Salvador:
6.375%, 01/18/27 (c)		USD		150		152,625
7.650%, 06/15/35		USD		150		161,156
						313,781
Georgia \| 0.1%
Republic of Georgia, 6.875%, 04/12/21		USD		200		212,000

Honduras \| 0.3%
Honduras Government Bond, 7.500%, 03/15/24		USD		600		628,500

Hungary \| 0.6%
Hungary:
6.250%, 01/29/20		USD		100		112,666
5.375%, 03/25/24		USD		500		543,545
7.625%, 03/29/41		USD		50		66,642
Hungary Government Bond, 4.000%, 04/25/18		HUF		120,400		475,937
						1,198,790

Description	Security Currency		Principal Amount (000)		Value

Indonesia \| 0.7%
Indonesia Government Bond, 7.875%, 04/15/19		IDR		10,406,000	$	850,713
Republic of Indonesia:
3.750%, 04/25/22		USD		400		394,000
5.250%, 01/17/42		USD		225		227,137
						1,471,850
Iraq \| 0.8%
Republic of Iraq, 5.800%, 01/15/28		USD		1,775		1,517,625

Israel \| 0.3%
Israel Government Bond - Galil, 5.000%, 04/30/15		ILS		2,000		687,314

Ivory Coast \| 0.6%
Ivory Coast, 5.750%, 12/31/32		USD		1,125		1,085,625

Kenya \| 0.0%
Kenya Infrastructure Bonds:
6.000%, 08/19/19		KES		300		2,800
12.000%, 09/18/23		KES		7,750		88,195
						90,995
Lithuania \| 0.2%
Republic of Lithuania:
7.375%, 02/11/20		USD		300		362,165
6.125%, 03/09/21		USD		100		117,385
						479,550
Malaysia \| 0.3%
Bank Negara Monetary Note, 0.000%, 03/24/15		MYR		1,117		317,085
Malaysian Government, 3.741%, 02/27/15		MYR		894		255,811
						572,896
Mexico \| 0.4%
Mexican Bonos, 4.750%, 06/14/18		MXN		11,000		743,914

Morocco \| 0.2%
Kingdom of Morocco, 4.250%, 12/11/22		USD		325		332,313

Mozambique \| 0.7%
Republic of Mozambique, 6.305%, 09/11/20		USD		1,375		1,347,500

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

34 Annual Report

Description	Security Currency		Principal Amount (000)		Value

Lazard Emerging Markets Multi Asset Portfolio (continued)

Pakistan \| 0.7%
Islamic Republic of Pakistan:
8.250%, 04/15/24		USD		600	$	621,750
8.250%, 04/15/24 (c)		USD		655		678,744
						1,300,494
Panama \| 0.7%
Republic of Panama:
4.000%, 09/22/24		USD		425		438,281
6.700%, 01/26/36		USD		700		908,250
						1,346,531
Paraguay \| 0.7%
Republic of Paraguay:
6.100%, 08/11/44		USD		475		509,438
6.100%, 08/11/44 (c)		USD		825		884,812
						1,394,250
Peru \| 0.2%
Republic of Peru, 8.750%, 11/21/33		USD		200		312,000

Portugal \| 1.1%
Republic of Portugal:
5.125%, 10/15/24		USD		1,275		1,340,686
5.125%, 10/15/24 (c)		USD		800		841,214
						2,181,900
Romania \| 0.6%
Romania Government Bonds:
5.950%, 06/11/21		RON		380		119,036
6.750%, 02/07/22		USD		350		421,312
5.850%, 04/26/23		RON		1,620		507,102
5.800%, 07/26/27		RON		170		53,659
						1,101,109
Rwanda \| 0.3%
Republic of Rwanda, 6.625%, 05/02/23		USD		625		646,875

Senegal \| 0.1%
Republic of Senegal, 8.750%, 05/13/21		USD		200		223,500

Serbia \| 0.3%
Serbia Treasury Bonds:
10.000%, 10/17/16		RSD		15,900		160,616
10.000%, 04/01/17		RSD		15,000		149,133

Description	Security Currency		Principal Amount (000)		Value

10.000%, 02/06/19		RSD		8,900	$	87,116
10.000%, 06/05/21		RSD		19,730		178,067
						574,932
Slovenia \| 0.4%
Republic of Slovenia, 5.250%, 02/18/24		USD		725		799,202

South Africa \| 0.5%
Republic of South Africa:
5.500%, 03/09/20		USD		100		109,625
5.875%, 05/30/22		USD		125		140,938
10.500%, 12/21/26		ZAR		4,130		427,909
5.375%, 07/24/44		USD		200		212,250
						890,722
Sri Lanka \| 0.2%
Republic of Sri Lanka:
6.250%, 10/04/20		USD		100		104,625
5.875%, 07/25/22		USD		200		203,750
						308,375
Turkey \| 0.6%
Hazine Mustesarligi Varlik Kiralama AS, 4.489%, 11/25/24 (c)		USD		400		406,000
Republic of Turkey:
5.750%, 03/22/24		USD		300		336,375
6.750%, 05/30/40		USD		425		528,062
						1,270,437
Uganda \| 0.4%
Uganda Government Bond, 12.875%, 05/19/16		UGX		519,600		182,901
Uganda Treasury Bills:
0.000%, 03/19/15		UGX		146,600		51,238
0.000%, 05/28/15		UGX		408,500		138,504
0.000%, 09/03/15		UGX		574,000		189,623
0.000%, 09/17/15		UGX		218,100		70,829
0.000%, 10/29/15		UGX		250,100		79,915
						713,010
Uruguay \| 0.2%
Republica Orient Uruguay, 5.000%, 09/14/18		UYU		9,967		417,889

Venezuela \| 0.1%
Republic of Venezuela, 9.000%, 05/07/23		USD		250		115,000

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

Annual Report 35

Description	Security Currency		Principal Amount (000)		Value

Lazard Emerging Markets Multi Asset Portfolio (continued)

Zambia \| 0.2%
Zambia Treasury Bills:
0.000%, 01/12/15		ZMW		635	$	98,810
0.000%, 01/26/15		ZMW		700		108,374
0.000%, 06/15/15		ZMW		1,200		173,373
						380,557
Total Foreign Government Obligations (Identified cost $36,714,687)						35,736,934

Quasi Government Bonds \| 1.4%

Malaysia \| 0.4%
1MDB Global Investments, Ltd., 4.400%, 03/09/23		USD		700		693,129

Mexico \| 0.5%
Petroleos Mexicanos,
6.625%, 06/15/35		USD		275		318,313
5.500%, 06/27/44 (c)		USD		650		665,437
						983,750
Venezuela \| 0.5%
Petroleos de Venezuela SA:
5.250%, 04/12/17		USD		1,100		511,500
6.000%, 05/16/24		USD		725		276,406
6.000%, 11/15/26		USD		525		193,594
5.500%, 04/12/37		USD		250		88,437
						1,069,937

Total Quasi Government Bonds (Identified cost $3,267,571)						2,746,816

Description

Security
Currency

Principal
Amount
(000)

Value

US Treasury Securities | 8.3%

US Treasury Notes:

2.250%, 01/31/15

USD

6,200

6,210,416

0.250%, 02/28/15

USD

4,900

4,901,338

1.875%, 06/30/15

USD

5,100

5,143,829

Total US Treasury Securities
(Identified cost $16,258,887)

16,255,583

Description	Shares		Value

Warrant \| 0.0%

Iraq \| 0.0%
Gulf Keystone Petroleum, Ltd. Expires 04/18/17 (Identified cost $0)		64,000	$	0

Short-Term Investment \| 12.4%
State Street Institutional Treasury Money Market Fund (Identified cost $24,283,883)		24,283,883		24,283,883

Total Investments \| 101.1% (Identified cost $209,673,885) (d), (f)			$	197,712,911

Liabilities in Excess of Cash and Other Assets \| (1.1)%				(2,063,354	)

Net Assets \| 100.0%			$	195,649,557

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

36 Annual Report

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at December 31, 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	02/18/15		106,722,000	$	252,000	$	222,557	$	—	$	29,443
AUD		SCB	01/20/15		2,705		2,218		2,206		—		12
AUD		SCB	01/20/15		598,598		490,000		488,161		—		1,839
BRL		BOA	01/05/15		162,660		61,238		61,192		—		46
BRL		BOA	01/05/15		253,545		95,454		95,382		—		72
BRL		BOA	01/05/15		416,205		155,416		156,574		1,158		—
BRL		BOA	02/03/15		162,660		60,175		60,715		540		—
BRL		BRC	01/05/15		168,348		63,379		63,331		—		48
BRL		BRC	01/05/15		341,029		128,390		128,293		—		97
BRL		BRC	01/05/15		463,790		174,606		174,475		—		131
BRL		BRC	01/05/15		509,105		191,667		191,523		—		144
BRL		BRC	01/05/15		646,478		243,385		243,202		—		183
BRL		BRC	01/05/15		816,960		320,000		307,336		—		12,664
BRL		BRC	01/05/15		816,960		320,000		307,336		—		12,664
BRL		BRC	01/05/15		2,708,577		1,012,174		1,018,952		6,778		—
BRL		BRC	01/05/15		2,860,225		1,076,811		1,076,001		—		810
BRL		BRC	02/03/15		187,810		70,000		70,103		103		—
BRL		CIT	01/05/15		118,740		46,000		44,669		—		1,331
BRL		CIT	01/05/15		1,116,095		419,506		419,869		363		—
BRL		SCB	01/05/15		228,680		86,093		86,028		—		65
BRL		SCB	01/05/15		288,499		108,614		108,532		—		82
BRL		SCB	01/05/15		814,560		320,000		306,433		—		13,567
BRL		SCB	01/05/15		816,640		320,000		307,215		—		12,785
BRL		SCB	01/05/15		1,317,110		495,154		495,489		335		—
BRL		SCB	01/05/15		2,431,131		915,267		914,578		—		689
BRL		SCB	02/03/15		2,431,131		899,220		907,456		8,236		—
CLP		BNP	01/09/15		216,565,500		353,000		356,672		3,672		—
CLP		UBS	02/17/15		395,668,460		638,000		648,956		10,956		—
CNH		BRC	02/26/15		2,698,023		433,000		431,818		—		1,182
CNH		CIT	01/20/15		1,909,650		306,638		306,782		144		—
CNH		HSB	02/17/15		448,164		72,000		71,799		—		201
CNH		HSB	03/03/15		3,044,593		489,248		487,022		—		2,226
CNH		JPM	01/20/15		2,587,431		415,966		415,667		—		299
CNH		SCB	01/20/15		1,786,839		287,273		287,053		—		220
CNH		UBS	01/20/15		532,372		85,652		85,525		—		127
CNY		HSB	03/09/15		4,606,550		746,000		737,026		—		8,974
COP		SCB	02/24/15		1,138,130,000		497,000		477,886		—		19,114
CZK		JPM	01/08/15		16,456,639		737,651		718,897		—		18,754
CZK		JPM	02/23/15		5,647,516		250,017		246,860		—		3,157
EUR		BOA	01/20/15		323,359		402,012		391,344		—		10,668
EUR		BRC	01/12/15		211,506		263,566		255,952		—		7,614
EUR		BRC	01/12/15		233,939		291,941		283,098		—		8,843
EUR		BRC	01/12/15		235,863		294,135		285,428		—		8,707

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

Annual Report 37

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at December 31, 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)
EUR		CIT	01/12/15		210,472	$	260,638	$	254,701	$	—	$	5,937
EUR		SCB	01/12/15		254,564		317,124		308,058		—		9,066
EUR		SCB	01/12/15		285,389		355,865		345,360		—		10,505
EUR		SCB	01/12/15		295,030		368,059		357,028		—		11,031
EUR		SCB	01/20/15		239,687		297,988		290,079		—		7,909
EUR		SCB	01/20/15		240,032		298,562		290,498		—		8,064
EUR		UBS	01/12/15		115,615		144,257		139,910		—		4,347
HUF		CIT	02/27/15		62,838,000		244,832		239,846		—		4,986
HUF		JPM	01/22/15		46,299,000		183,000		176,903		—		6,097
HUF		JPM	01/22/15		65,457,226		255,576		250,104		—		5,472
HUF		JPM	01/29/15		66,737,600		260,025		254,940		—		5,085
IDR		JPM	01/12/15		2,016,576,000		162,000		162,624		624		—
IDR		JPM	01/20/15		6,057,574,439		486,669		487,819		1,150		—
IDR		JPM	02/11/15		2,029,050,000		162,000		162,754		754		—
IDR		SCB	01/12/15		115,759,630		9,291		9,336		45		—
IDR		SCB	01/12/15		4,055,768,713		327,607		327,072		—		535
IDR		SCB	01/20/15		4,123,200,000		320,000		332,043		12,043		—
IDR		SCB	01/20/15		4,128,000,000		320,000		332,430		12,430		—
IDR		SCB	01/20/15		6,057,574,439		486,357		487,819		1,462		—
ILS		JPM	01/20/15		1,379,218		350,055		353,596		3,541		—
INR		BRC	01/12/15		21,434,412		343,528		339,065		—		4,463
INR		HSB	01/12/15		34,999,694		560,893		553,651		—		7,242
INR		JPM	01/12/15		7,445,766		119,275		117,782		—		1,493
INR		JPM	01/20/15		84,617,750		1,357,794		1,336,281		—		21,513
INR		JPM	01/22/15		8,011,250		125,000		126,460		1,460		—
INR		JPM	01/27/15		29,927,880		486,000		471,922		—		14,078
INR		JPM	02/23/15		21,023,520		336,000		329,675		—		6,325
INR		SCB	01/12/15		4,435,200		70,000		70,159		159		—
INR		SCB	01/12/15		19,767,180		321,000		312,692		—		8,308
INR		SCB	01/12/15		47,178,152		756,181		746,298		—		9,883
INR		SCB	01/20/15		13,873,600		222,833		219,091		—		3,742
INR		UBS	01/12/15		22,063,994		353,646		349,024		—		4,622
JPY		BRC	01/20/15		40,426,795		335,000		337,549		2,549		—
JPY		SCB	01/20/15		40,429,140		335,000		337,568		2,568		—
KRW		CIT	01/26/15		604,693,470		542,302		549,537		7,235		—
KRW		CIT	02/13/15		69,361,110		63,000		62,980		—		20
KWD		BNP	08/06/15		139,098		485,000		473,959		—		11,041
KWD		CIT	08/18/15		113,353		395,000		386,205		—		8,795
KZT		CIT	02/13/15		22,310,000		114,999		111,130		—		3,869
KZT		CIT	06/11/15		46,759,780		246,493		205,102		—		41,391
KZT		CIT	06/12/15		51,761,000		272,857		226,865		—		45,992
KZT		HSB	02/17/15		36,898,800		194,000		182,889		—		11,111
KZT		HSB	04/28/15		6,517,500		32,999		29,580		—		3,419

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

38 Annual Report

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at December 31, 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)
KZT		JPM	01/21/15		22,848,000	$	119,000	$	119,944	$	944	$	—
KZT		JPM	05/18/15		27,599,000		143,000		123,315		—		19,685
MXN		BOA	01/12/15		4,378,757		310,501		296,663		—		13,838
MXN		BRC	01/12/15		3,140,125		217,841		212,745		—		5,096
MXN		BRC	01/12/15		4,657,872		320,000		315,574		—		4,426
MXN		JPM	01/15/15		4,945,300		340,000		334,986		—		5,014
MXN		SCB	01/12/15		3,204,964		222,158		217,138		—		5,020
MXN		SCB	01/12/15		4,378,757		310,411		296,663		—		13,748
MXN		SCB	01/20/15		2,367,760		160,000		160,339		339		—
MYR		JPM	01/12/15		1,315,942		380,165		376,148		—		4,017
MYR		JPM	01/20/15		1,253,855		356,361		358,172		1,811		—
MYR		SCB	01/12/15		722,580		208,959		206,542		—		2,417
MYR		SCB	01/12/15		1,142,514		330,876		326,576		—		4,300
MYR		SCB	01/20/15		927,352		263,639		264,904		1,265		—
MYR		SCB	01/22/15		528,611		152,125		150,977		—		1,148
MYR		UBS	01/22/15		583,492		167,875		166,651		—		1,224
PEN		BRC	01/12/15		403,759		136,937		135,271		—		1,666
PEN		CIT	01/09/15		1,067,466		362,000		357,906		—		4,094
PEN		HSB	01/12/15		539,395		183,063		180,714		—		2,349
PHP		BRC	01/16/15		6,204,480		138,000		138,625		625		—
PHP		HSB	02/13/15		32,628,185		731,000		727,954		—		3,046
PLN		JPM	01/08/15		1,679,702		499,000		474,353		—		24,647
RSD		CIT	01/22/15		34,484,400		346,751		342,127		—		4,624
SGD		BRC	01/20/15		5,686		4,328		4,291		—		37
SGD		BRC	01/20/15		302,134		230,000		227,994		—		2,006
SGD		SCB	01/20/15		302,105		230,000		227,972		—		2,028
SGD		SCB	01/20/15		367,248		280,000		277,130		—		2,870
SGD		SCB	01/20/15		395,259		300,000		298,268		—		1,732
THB		BRC	01/12/15		9,559,173		290,818		290,461		—		357
THB		BRC	01/20/15		11,937,600		360,000		362,577		2,577		—
THB		BRC	01/22/15		8,038,440		243,000		244,124		1,124		—
THB		SCB	01/12/15		13,217,786		401,903		401,629		—		274
THB		SCB	01/20/15		11,926,800		360,000		362,249		2,249		—
THB		SCB	01/20/15		16,405,337		494,137		498,275		4,138		—
THB		SCB	01/22/15		16,363,920		492,000		496,965		4,965		—
THB		UBS	01/20/15		159,279		4,804		4,838		34		—
TRY		CIT	01/20/15		589,941		259,161		251,622		—		7,539
TRY		JPM	01/22/15		1,163,120		496,000		495,859		—		141
TRY		JPM	02/11/15		162,695		69,000		69,044		44		—
TRY		JPM	02/11/15		568,866		247,000		241,414		—		5,586
TRY		JPM	02/11/15		1,679,740		729,751		712,844		—		16,907
TRY		JPM	02/17/15		43,879		19,818		18,597		—		1,221
TRY		JPM	02/17/15		885,649		401,000		375,360		—		25,640

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

Annual Report 39

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at December 31, 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)
TRY		JPM	02/18/15		579,303	$	245,000	$	245,469	$	469	$	—
TRY		SCB	01/12/15		372,800		160,000		159,309		—		691
TRY		SCB	01/12/15		748,573		318,813		319,888		1,075		—
TRY		SCB	01/20/15		41,112		17,462		17,535		73		—
TRY		SCB	01/20/15		589,941		258,769		251,622		—		7,147
TRY		UBS	01/20/15		589,941		258,724		251,622		—		7,102
TWD		SCB	01/20/15		626,600		20,000		19,829		—		171
TWD		SCB	01/20/15		9,330,000		300,000		295,251		—		4,749
TWD		SCB	01/20/15		10,243,965		327,912		324,174		—		3,738
TWD		UBS	01/20/15		10,243,965		327,566		324,174		—		3,392
UGX		BRC	01/09/15		497,978,000		179,000		179,517		517		—
UGX		CIT	01/08/15		373,549,830		134,953		134,698		—		255
UGX		SCB	01/08/15		35,425,000		12,793		12,774		—		19
ZAR		BRC	01/12/15		1,675,812		143,399		144,708		1,309		—
ZAR		CIT	01/20/15		3,486,093		298,000		300,643		2,643		—
ZAR		SCB	01/12/15		1,852,880		160,000		159,997		—		3
ZAR		SCB	01/12/15		2,055,465		176,602		177,491		889		—
Total Forward Currency Purchase Contracts						$	44,219,946	$	43,648,278	$	105,395	$	677,063
Forward Currency Sale Contracts:
AUD		SCB	01/20/15		194,130	$	160,000	$	158,315	$	1,685	$	—
AUD		SCB	01/20/15		202,568		170,000		165,196		4,804		—
AUD		SCB	01/20/15		204,605		170,000		166,857		3,143		—
BRL		BOA	01/05/15		162,660		60,694		61,192		—		498
BRL		BOA	01/05/15		253,545		96,372		95,382		990		—
BRL		BOA	01/05/15		416,205		156,692		156,574		118		—
BRL		BRC	01/05/15		168,348		63,974		63,331		643		—
BRL		BRC	01/05/15		341,029		133,852		128,293		5,559		—
BRL		BRC	01/05/15		463,790		173,704		174,475		—		771
BRL		BRC	01/05/15		509,105		195,848		191,523		4,325		—
BRL		BRC	01/05/15		646,478		244,000		243,201		799		—
BRL		BRC	01/05/15		816,960		307,567		307,336		231		—
BRL		BRC	01/05/15		816,960		307,567		307,336		231		—
BRL		BRC	01/05/15		2,708,577		1,019,719		1,018,952		767		—
BRL		BRC	01/05/15		2,860,225		1,116,404		1,076,001		40,403		—
BRL		BRC	02/03/15		2,708,577		1,003,846		1,011,017		—		7,171
BRL		CIT	01/05/15		588,357		231,000		221,337		9,663		—
BRL		CIT	01/05/15		646,478		243,384		243,201		183		—
BRL		CIT	03/02/15		1,103,028		408,000		408,717		—		717
BRL		SCB	01/05/15		228,680		88,021		86,028		1,993		—
BRL		SCB	01/05/15		288,499		109,654		108,532		1,122		—
BRL		SCB	01/05/15		814,560		306,664		306,433		231		—
BRL		SCB	01/05/15		816,640		307,447		307,216		231		—

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

40 Annual Report

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at December 31, 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)
BRL		SCB	01/05/15		1,317,110	$	495,862	$	495,489	$	373	$	—
BRL		SCB	01/05/15		2,431,131		906,969		914,578		—		7,609
CNH		BRC	01/20/15		1,617,954		260,000		259,922		78		—
CNH		JPM	01/20/15		1,235,519		198,504		198,484		20		—
CNH		SCB	01/20/15		530,504		85,185		85,225		—		40
CNH		SCB	01/20/15		701,232		112,664		112,652		12		—
CNH		SCB	01/20/15		1,617,980		260,000		259,926		74		—
CNH		UBS	01/20/15		1,113,104		178,832		178,819		13		—
COP		BRC	01/13/15		195,550,522		86,210		82,271		3,939		—
EUR		CIT	01/22/15		279,000		346,751		337,665		9,086		—
EUR		CIT	01/22/15		312,897		384,421		378,689		5,732		—
EUR		CIT	02/27/15		200,000		244,832		242,133		2,699		—
EUR		JPM	01/08/15		596,000		737,652		721,213		16,439		—
EUR		JPM	01/22/15		208,000		255,576		251,736		3,840		—
EUR		JPM	01/26/15		1,204,662		1,475,893		1,458,028		17,865		—
EUR		JPM	01/29/15		212,000		260,025		256,596		3,429		—
EUR		JPM	02/23/15		204,356		250,018		247,398		2,620		—
EUR		SCB	01/12/15		65,723		80,000		79,534		466		—
EUR		SCB	01/12/15		81,603		100,000		98,751		1,249		—
EUR		SCB	01/20/15		803,079		983,972		971,921		12,051		—
EUR		SCB	01/12/15		1,982,546		2,461,807		2,399,159		62,648		—
EUR		UBS	01/12/15		1,982,546		2,464,796		2,399,159		65,637		—
HUF		BRC	01/12/15		83,269,600		333,886		318,263		15,623		—
HUF		JPM	01/22/15		52,854,956		206,263		201,952		4,311		—
HUF		SCB	01/12/15		83,269,600		333,927		318,263		15,664		—
IDR		BOA	01/20/15		4,886,673,584		373,313		393,526		—		20,213
IDR		BRC	01/12/15		1,929,750,000		155,000		155,622		—		622
IDR		HSB	01/20/15		1,802,632,723		137,343		145,166		—		7,823
IDR		JPM	01/12/15		2,297,181,083		184,291		185,253		—		962
IDR		JPM	01/20/15		1,802,632,723		137,711		145,167		—		7,456
IDR		SCB	01/20/15		3,623,209,848		276,687		291,779		—		15,092
ILS		CIT	05/04/15		1,414,398		401,248		362,895		38,353		—
INR		BRC	01/12/15		7,950,646		126,562		125,769		793		—
INR		BRC	01/20/15		21,110,100		330,000		333,370		—		3,370
INR		BRC	01/20/15		27,275,584		428,000		430,735		—		2,735
INR		SCB	01/12/15		11,558,192		183,901		182,836		1,065		—
INR		SCB	01/20/15		34,541,660		542,000		545,481		—		3,481
INR		UBS	01/12/15		11,280,275		179,536		178,439		1,097		—
INR		UBS	01/20/15		15,564,006		243,492		245,786		—		2,294
JPY		BRC	01/20/15		39,244,004		325,032		327,673		—		2,641
JPY		CIT	03/11/15		104,893,021		879,000		876,205		2,795		—
JPY		SCB	01/20/15		848,141		7,028		7,081		—		53
JPY		SCB	01/20/15		40,763,790		336,863		340,362		—		3,499

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

Annual Report 41

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at December 31, 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)
KWD		CIT	08/06/15		28,078	$	95,926	$	95,671	$	255	$	—
KWD		CIT	08/06/15		111,021		381,121		378,288		2,833		—
KWD		CIT	08/18/15		56,531		193,201		192,605		596		—
KWD		CIT	08/18/15		56,823		194,000		193,600		400		—
MXN		BRC	01/12/15		2,244,911		150,949		152,094		—		1,145
MXN		JPM	01/15/15		3,599,000		246,933		243,790		3,143		—
MXN		SCB	01/12/15		2,812,041		189,052		190,518		—		1,466
MXN		SCB	01/20/15		101,640		6,897		6,883		14		—
MXN		SCB	01/20/15		2,266,120		157,354		153,457		3,897		—
MYR		BRC	01/12/15		1,053,900		300,000		301,246		—		1,246
MYR		JPM	01/20/15		1,081,839		308,251		309,034		—		783
MYR		SCB	01/12/15		3,248,108		937,567		928,438		9,129		—
MYR		SCB	01/20/15		17,527		4,979		5,006		—		27
MYR		SCB	01/20/15		1,081,839		308,216		309,034		—		818
MYR		SCB	02/13/15		315,495		90,157		89,945		212		—
PEN		BRC	01/12/15		476,202		161,042		159,542		1,500		—
PEN		CIT	01/09/15		697,728		233,666		233,938		—		272
PEN		CIT	01/12/15		476,203		161,726		159,542		2,184		—
PEN		SCB	01/09/15		369,738		125,000		123,968		1,032		—
RON		BRC	02/10/15		106,895		29,880		28,843		1,037		—
RON		JPM	02/10/15		106,895		29,880		28,843		1,037		—
RON		JPM	06/10/15		1,712,250		471,000		460,146		10,854		—
RON		SCB	02/10/15		106,895		29,890		28,843		1,047		—
RON		UBS	02/10/15		106,895		29,902		28,843		1,059		—
RSD		CIT	01/12/15		25,713,310		260,637		255,642		4,995		—
RSD		CIT	01/22/15		9,679,838		97,197		96,036		1,161		—
SGD		BRC	01/12/15		184,955		140,000		139,600		400		—
SGD		BRC	01/12/15		945,904		720,964		713,945		7,019		—
SGD		CIT	01/20/15		761,702		575,543		574,791		752		—
SGD		HSB	01/20/15		301,852		228,036		227,781		255		—
SGD		JPM	01/12/15		184,940		140,000		139,588		412		—
SGD		JPM	01/12/15		1,496,273		1,140,408		1,129,349		11,059		—
SGD		SCB	01/12/15		590,090		449,729		445,385		4,344		—
SGD		SCB	01/20/15		308,878		233,528		233,083		445		—
SGD		UBS	01/12/15		132,227		100,829		99,802		1,027		—
THB		JPM	01/12/15		22,776,959		691,279		692,090		—		811
THB		JPM	01/20/15		39,769,316		1,197,763		1,207,903		—		10,140
THB		SCB	01/20/15		659,700		20,000		20,037		—		37
TRY		BRC	01/20/15		766,383		325,000		326,878		—		1,878
TRY		JPM	02/11/15		270,826		116,000		114,933		1,067		—
TRY		JPM	02/11/15		1,047,209		459,000		444,412		14,588		—
TRY		JPM	02/11/15		1,093,266		487,586		463,957		23,629		—
TRY		JPM	02/17/15		406,478		182,196		172,276		9,920		—

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

42 Annual Report

Lazard Emerging Markets Multi Asset Portfolio (concluded)

Forward Currency Contracts open at December 31, 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)
TRY		JPM	02/17/15		523,049	$	235,247	$	221,681	$	13,566	$	—
TRY		SCB	01/20/15		278,496		120,000		118,784		1,216		—
TRY		SCB	01/20/15		766,058		325,000		326,739		—		1,739
TWD		CIT	01/20/15		15,222,265		487,627		481,714		5,913		—
TWD		SCB	01/20/15		15,222,265		487,534		481,715		5,819		—
UGX		BRC	01/09/15		806,361,000		291,000		290,686		314		—
UGX		SCB	01/08/15		404,712,000		146,000		145,935		65		—
UYU		HSB	02/19/15		3,336,600		134,000		136,021		—		2,021
ZAR		BRC	01/20/15		2,741,509		237,150		236,429		721		—
ZMW		SCB	01/12/15		840,806		132,410		130,894		1,516		—
ZMW		SCB	01/12/15		892,568		136,001		138,953		—		2,952
Total Forward Currency Sale Contracts						$	40,959,714	$	40,556,572	$	515,524	$	112,382
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts										$	620,919	$	789,445

Credit Default Swap Agreements open at December 31, 2014:

Referenced Obligation	Counterparty		Notional Amount		Expiration Date	Receive (Pay) Rate			Value			Upfront Premiums Paid (Received)			Unrealized Depreciation

CDX EM 22		BRC		1,500,000	12/20/19		(1.000	)%	$	156,575		$	205,500		$	48,925
CDX EM 22		BRC		1,500,000	12/20/19		(1.000	)		156,577			207,752			51,175
Republic of Brazil		BRC		500,000	12/20/19		1.000			(21,695	)		(16,470	)		5,225
Republic of Brazil		BRC		950,000	12/20/19		1.000			(41,220	)		(31,293	)		9,927
Republic of Brazil		BRC		770,000	12/20/19		1.000			(33,410	)		(24,295	)		9,115
Republic of Brazil		JPM		1,350,000	12/20/19		1.000			(58,576	)		(44,469	)		14,107
Republic of Brazil		JPM		645,000	12/20/19		1.000			(27,986	)		(20,054	)		7,932
Republic of Brazil		BRC		500,000	12/20/19		1.000			(21,695	)		(16,470	)		5,225
Republic of Brazil		BRC		1,000,000	12/20/19		(1.000	)		104,383			155,000			50,617
Total Credit Default Swap Agreements									$	212,953		$	415,201		$	202,248

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

Annual Report 43

Description	Security Currency	Principal Amount (000)		Value

Lazard Emerging Markets Debt Portfolio

Corporate Bonds \| 8.8%

Argentina \| 0.2%
YPF Sociedad Anonima:
8.750%, 04/04/24	USD		350	$	351,750
8.750%, 04/04/24 (c)	USD		200		201,000
					552,750
Brazil \| 0.6%
Banco do Brasil SA, 9.000%, 06/18/24 (g)	USD		475		442,938
Gol LuxCo SA, 8.875%, 01/24/22 (c)	USD		825		787,759
Klabin Finance SA, 5.250%, 07/16/24	USD		825		800,250
					2,030,947
Bulgaria \| 0.3%
ContourGlobal Power Holdings SA:
7.125%, 06/01/19	USD		250		251,250
7.125%, 06/01/19 (c)	USD		725		728,625
					979,875
Chile \| 0.9%
AES Gener SA, 5.250%, 08/15/21	USD		294		312,375
Empresa Electrica Angamos SA, 4.875%, 05/25/29 (c)	USD		1,000		987,500
GNL Quintero SA, 4.634%, 07/31/29	USD		775		787,633
SACI Falabella, 4.375%, 01/27/25 (c)	USD		825		810,562
					2,898,070
China \| 0.6%
BCP Singapore VI Cayman Financing Co., Ltd.:
8.000%, 04/15/21	USD		270		273,713
8.000%, 04/15/21 (c)	USD		475		481,531
Country Garden Holdings Co., Ltd., 7.250%, 04/04/21	USD		420		402,150
Maoye International Holdings, Ltd., 7.750%, 05/19/17 (c)	USD		725		714,125
					1,871,519
Colombia \| 0.2%
Grupo Aval, Ltd., 4.750%, 09/26/22	USD		800		778,000

Description	Security Currency	Principal Amount (000)		Value

Georgia \| 0.2%
Bank of Georgia JSC, 7.750%, 07/05/17	USD		750	$	770,625

Guatemala \| 0.2%
Industrial Senior Trust, 5.500%, 11/01/22	USD		700		695,180

India \| 0.1%
Greenko Dutch BV, 8.000%, 08/01/19 (c)	USD		425		377,315

Indonesia \| 0.4%
Ottawa Holdings Pte, Ltd., 5.875%, 05/16/18	USD		675		541,687
PT Perusahaan Gas Negara Persero Tbk, 5.125%, 05/16/24	USD		800		816,000
					1,357,687
Iraq \| 0.2%
Genel Energy Finance, Ltd., 7.500%, 05/14/19	USD		600		510,000

Kazakhstan \| 0.5%
Halyk Savings Bank of Kazakhstan JSC, 7.250%, 01/28/21	USD		1,175		1,163,250
Nostrum Oil & Gas Finance BV, 6.375%, 02/14/19 (c)	USD		375		324,375
					1,487,625
Kuwait \| 0.3%
Kuwait Energy PLC, 9.500%, 08/04/19	USD		950		888,250

Mexico \| 1.5%
America Movil SAB de CV, 6.450%, 12/05/22	MXN		17,350		1,156,910
Bio Pappel SAB de CV, 10.000%, 08/27/16	USD		418		425,213
Credito Real SAB de CV, 7.500%, 03/13/19 (c)	USD		725		739,500
Empresas ICA SAB de CV, 8.875%, 05/29/24 (c)	USD		900		809,663
Gruma SAB de CV, 4.875%, 12/01/24 (c)	USD		825		851,276
Grupo Televisa SAB, 7.250%, 05/14/43	MXN		5,400		315,262

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

44 Annual Report

Description	Security Currency	Principal Amount (000)		Value

Lazard Emerging Markets Debt Portfolio (continued)

Unifin Financiera SAPI de CV SOFOM ENR, 6.250%, 07/22/19 (c)	USD		700	$	640,500
					4,938,324
Nigeria \| 0.6%
Diamond Bank PLC, 8.750%, 05/21/19 (c)	USD		600		531,000
FBN Finance Co. BV:
8.250%, 08/07/20	USD		800		746,600
8.250%, 08/07/20 (c)	USD		500		466,625
8.000%, 07/23/21 (c)	USD		350		310,187
					2,054,412
Panama \| 0.3%
Global Bank Corp., 5.125%, 10/30/19 (c)	USD		800		810,176

Peru \| 0.2%
Consorcio Transmantaro SA, 4.375%, 05/07/23	USD		700		689,500

Philippines \| 0.1%
San Miguel Corp., 4.875%, 04/26/23	USD		475		441,750

Russia \| 0.3%
Alliance Oil Co., Ltd., 7.000%, 05/04/20	USD		250		112,500
EDC Finance, Ltd., 4.875%, 04/17/20	USD		225		147,375
Gazprom OAO Via Gaz Capital SA, 4.300%, 11/12/15 (c)	USD		825		808,500
					1,068,375
Singapore \| 0.5%
Pacnet, Ltd.:
9.000%, 12/12/18	USD		850		960,500
9.000%, 12/12/18 (c)	USD		425		480,250
					1,440,750
South Africa \| 0.6%
Transnet SOC, Ltd., 9.500%, 05/13/21 (c)	ZAR		24,000		2,093,998

Total Corporate Bonds (Identified cost $30,396,497)					28,735,128

Description	Security Currency	Principal Amount (000)		Value

Foreign Government Obligations \| 79.1%

Angola \| 0.5%
Republic of Angola Northern Lights III BV, 7.000%, 08/16/19	USD		1,515	$	1,507,425

Argentina \| 1.0%
Republic of Argentina:
8.750%, 06/02/17	USD		350		316,750
8.280%, 12/31/33	USD		2,103		1,869,267
2.500%, 12/31/38	USD		1,825		937,594
					3,123,611
Belarus \| 0.5%
Republic of Belarus:
8.750%, 08/03/15	USD		425		401,625
8.950%, 01/26/18	USD		1,300		1,202,500
					1,604,125
Belize \| 0.1%
Republic of Belize, 5.000%, 02/20/38	USD		285		200,213

Bolivia \| 0.8%
Bolivia Government Bonds:
4.875%, 10/29/22	USD		1,450		1,471,750
5.950%, 08/22/23	USD		1,050		1,105,125
					2,576,875
Brazil \| 5.8%
Brazil NTN:
0.000%, 01/01/16	BRL		18,140		6,038,023
0.000%, 01/01/17	BRL		9,040		2,665,885
Brazil NTN-B, 6.000%, 08/15/50	BRL		1,844		1,699,813
Brazil NTN-F, 10.000%, 01/01/23	BRL		4,630		1,545,075
Federal Republic of Brazil:
4.875%, 01/22/21	USD		650		693,875
2.625%, 01/05/23	USD		2,250		2,064,375
4.250%, 01/07/25	USD		600		601,500
8.250%, 01/20/34	USD		1,669		2,307,392
7.125%, 01/20/37	USD		1,125		1,423,125
					19,039,063

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

Annual Report 45

Description	Security Currency	Principal Amount (000)		Value

Lazard Emerging Markets Debt Portfolio (continued)

Chile \| 0.9%
Republic of Chile:
5.500%, 08/05/20	CLP		60,000	$	104,315
3.250%, 09/14/21	USD		725		752,913
2.250%, 10/30/22	USD		1,325		1,276,637
3.625%, 10/30/42	USD		775		705,250
					2,839,115
Colombia \| 4.1%
Colombian Titulos De Tesoreria, 10.000%, 07/24/24	COP		9,787,000		4,920,845
Republic of Colombia:
12.000%, 10/22/15	COP		3,259,000		1,443,408
7.750%, 04/14/21	COP		1,151,000		521,511
4.000%, 02/26/24	USD		875		896,875
9.850%, 06/28/27	COP		1,872,000		984,946
7.375%, 09/18/37	USD		2,200		2,970,000
6.125%, 01/18/41	USD		1,525		1,830,000
					13,567,585
Congo \| 0.7%
Republic of Congo, 3.500%, 06/30/29 (e)	USD		2,650		2,411,471

Costa Rica \| 0.7%
Republic of Costa Rica, 7.000%, 04/04/44	USD		2,425		2,393,172

Croatia \| 0.7%
Croatia, 6.000%, 01/26/24	USD		2,250		2,435,625

Dominican Republic \| 0.7%
Dominican Republic:
7.500%, 05/06/21	USD		550		605,000
7.450%, 04/30/44	USD		1,375		1,512,500
					2,117,500
Ecuador \| 0.4%
Republic of Ecuador:
7.950%, 06/20/24	USD		325		279,500
7.950%, 06/20/24 (c)	USD		1,220		1,049,200
					1,328,700
El Salvador \| 0.3%
Republic of El Salvador:
6.375%, 01/18/27	USD		200		203,500
6.375%, 01/18/27 (c)	USD		905		920,837
					1,124,337

Description	Security Currency	Principal Amount (000)		Value

Gabon \| 0.2%
Gabonese Republic, 8.200%, 12/12/17	USD		575	$	631,063

Georgia \| 0.3%
Republic of Georgia, 6.875%, 04/12/21	USD		1,037		1,099,220

Honduras \| 1.0%
Honduras Government Bond, 7.500%, 03/15/24	USD		3,270		3,425,325

Hungary \| 1.7%
Hungary:
6.375%, 03/29/21	USD		1		1,145
7.625%, 03/29/41	USD		650		866,346
Hungary Government Bonds:
6.500%, 06/24/19	HUF		795,870		3,479,286
5.500%, 06/24/25	HUF		254,680		1,129,570
					5,476,347
Indonesia \| 5.2%
Indonesia Government Bonds:
7.875%, 04/15/19	IDR		57,009,000		4,660,607
6.125%, 05/15/28	IDR		23,430,000		1,595,264
8.375%, 03/15/34	IDR		46,292,000		3,807,830
Indonesia Treasury Bond, 9.000%, 03/15/29	IDR		4,825,000		420,264
Republic of Indonesia:
5.875%, 03/13/20	USD		100		110,750
4.875%, 05/05/21	USD		1,575		1,665,562
3.750%, 04/25/22	USD		925		911,125
3.375%, 04/15/23	USD		1,550		1,464,750
5.375%, 10/17/23	USD		210		227,850
5.875%, 01/15/24	USD		620		697,810
7.750%, 01/17/38	USD		1,145		1,502,240
					17,064,052
Iraq \| 1.2%
Republic of Iraq, 5.800%, 01/15/28	USD		4,594		3,927,870

Ivory Coast \| 2.6%
Ivory Coast:
5.375%, 07/23/24 (c)	USD		2,100		2,010,750
5.750%, 12/31/32	USD		6,625		6,393,125
					8,403,875

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

46 Annual Report

Description	Security Currency	Principal Amount (000)		Value

Lazard Emerging Markets Debt Portfolio (continued)

Jamaica \| 0.4%
Jamaica Government Bond, 7.625%, 07/09/25	USD		1,150	$	1,204,625

Kazakhstan \| 1.0%
Republic of Kazakhstan, 3.875%, 10/14/24 (c)	USD		3,460		3,235,186

Kenya \| 1.0%
Republic of Kenya:
6.875%, 06/24/24	USD		1,600		1,692,000
6.875%, 06/24/24 (c)	USD		1,420		1,501,650
					3,193,650
Latvia \| 1.0%
Republic of Latvia:
2.750%, 01/12/20	USD		475		469,067
5.250%, 06/16/21	USD		2,525		2,831,948
					3,301,015
Lithuania \| 1.4%
Republic of Lithuania:
6.125%, 03/09/21	USD		1,375		1,614,044
6.625%, 02/01/22	USD		2,575		3,121,222
					4,735,266
Malaysia \| 3.1%
Malaysia Government Bonds:
4.262%, 09/15/16	MYR		7,050		2,037,851
3.654%, 10/31/19	MYR		15,650		4,441,216
4.048%, 09/30/21	MYR		13,090		3,740,000
					10,219,067
Mexico \| 4.7%
Mexican Bonos:
6.000%, 06/18/15	MXN		27,170		1,866,171
8.500%, 12/13/18	MXN		32,899		2,519,504
10.000%, 11/20/36	MXN		43,409		4,149,847
7.750%, 11/13/42	MXN		9		705
Mexican Udibonos:
5.000%, 06/16/16	MXN		28,697		2,067,712
4.000%, 11/15/40	MXN		5,587		426,878
United Mexican States:
3.500%, 01/21/21	USD		325		332,174
6.750%, 09/27/34	USD		2,025		2,667,938
6.050%, 01/11/40	USD		580		713,400
4.750%, 03/08/44	USD		580		609,725
					15,354,054

Description	Security Currency	Principal Amount (000)		Value

Morocco \| 0.1%
Kingdom of Morocco, 5.500%, 12/11/42	USD		325	$	338,000

Mozambique \| 1.1%
Republic of Mozambique, 6.305%, 09/11/20	USD		3,737		3,662,260

Namibia \| 0.3%
Republic of Namibia, 5.500%, 11/03/21	USD		800		846,000

Nigeria \| 0.3%
Nigeria Government Bond, 14.200%, 03/14/24	NGN		215,850		1,126,961

Pakistan \| 1.5%
Islamic Republic of Pakistan:
8.250%, 04/15/24	USD		1,325		1,373,031
8.250%, 04/15/24 (c)	USD		3,250		3,367,813
					4,740,844
Panama \| 2.0%
Republic of Panama:
5.200%, 01/30/20	USD		650		718,250
4.000%, 09/22/24	USD		2,600		2,681,250
9.375%, 04/01/29	USD		975		1,489,313
6.700%, 01/26/36	USD		1,275		1,654,312
					6,543,125
Paraguay \| 0.6%
Republic of Paraguay:
4.625%, 01/25/23	USD		855		851,486
6.100%, 08/11/44 (c)	USD		1,010		1,083,225
					1,934,711
Peru \| 2.3%
Republic of Peru:
7.125%, 03/30/19	USD		975		1,156,594
5.700%, 08/12/24	PEN		5,640		1,895,513
7.350%, 07/21/25	USD		2,625		3,487,969
8.750%, 11/21/33	USD		650		1,014,000
					7,554,076
Philippines \| 1.9%
Philippine Government Bonds:
7.000%, 01/27/16	PHP		35,000		822,179
1.625%, 04/25/16	PHP		40,000		886,780
Republic of Philippines:
9.375%, 01/18/17	USD		675		788,906
4.000%, 01/15/21	USD		575		622,797

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

Annual Report 47

Description	Security Currency	Principal Amount (000)		Value

Lazard Emerging Markets Debt Portfolio (continued)

4.200%, 01/21/24	USD		300	$	325,125
10.625%, 03/16/25	USD		650		1,046,500
7.750%, 01/14/31	USD		1,250		1,805,313
					6,297,600
Poland \| 5.3%
Poland Government Bonds:
4.750%, 10/25/16	PLN		11,750		3,492,924
5.500%, 10/25/19	PLN		21,643		7,045,414
5.750%, 09/23/22	PLN		6,090		2,129,621
Republic of Poland:
5.125%, 04/21/21	USD		650		733,613
5.000%, 03/23/22	USD		1,450		1,631,156
3.000%, 03/17/23	USD		1,350		1,346,394
4.000%, 01/22/24	USD		1,014		1,079,910
					17,459,032
Romania \| 1.2%
Romania Government Bonds:
5.950%, 06/11/21	RON		4,450		1,393,974
6.750%, 02/07/22	USD		760		914,850
4.375%, 08/22/23	USD		1		1,055
6.125%, 01/22/44	USD		1,260		1,535,625
					3,845,504
Russia \| 2.4%
Russia Foreign Bonds:
4.875%, 09/16/23	USD		1,400		1,242,500
12.750%, 06/24/28	USD		600		858,000
Russia Government Bonds - OFZ:
6.900%, 08/03/16	RUB		92,490		1,365,662
7.500%, 02/27/19	RUB		178,140		2,268,199
7.600%, 07/20/22	RUB		46,930		539,220
7.000%, 01/25/23	RUB		71,840		809,433
8.150%, 02/03/27	RUB		35,000		410,537
7.050%, 01/19/28	RUB		28,300		294,108
					7,787,659
Rwanda \| 0.6%
Republic of Rwanda, 6.625%, 05/02/23	USD		1,825		1,888,875

Senegal \| 1.0%
Republic of Senegal:
8.750%, 05/13/21	USD		850		949,875
6.250%, 07/30/24	USD		200		193,389
6.250%, 07/30/24 (c)	USD		2,110		2,040,254
					3,183,518

Description	Security Currency	Principal Amount (000)		Value

Slovakia \| 0.3%
Slovak Republic, 4.375%, 05/21/22	USD		775	$	849,162

Slovenia \| 1.3%
Republic of Slovenia, 5.250%, 02/18/24	USD		3,950		4,354,275

South Africa \| 3.1%
Republic of South Africa:
13.500%, 09/15/15	ZAR		19,800		1,791,990
4.665%, 01/17/24	USD		775		805,031
8.250%, 03/31/32	ZAR		82,210		6,934,021
6.250%, 03/08/41	USD		575		681,766
					10,212,808
Sri Lanka \| 0.4%
Republic of Sri Lanka, 5.875%, 07/25/22	USD		1,200		1,222,500

Thailand \| 2.7%
Thailand Government Bonds:
3.250%, 06/16/17	THB		67,530		2,107,861
3.875%, 06/13/19	THB		111,100		3,592,025
3.625%, 06/16/23	THB		27,700		903,721
3.850%, 12/12/25	THB		62,980		2,112,051
					8,715,658
Turkey \| 6.4%
Hazine Mustesarligi Varlik Kiralama AS,
4.489%, 11/25/24 (c)	USD		990		1,004,850
Republic of Turkey:
7.000%, 03/11/19	USD		2,100		2,412,375
3.250%, 03/23/23	USD		2,375		2,262,188
6.875%, 03/17/36	USD		2,525		3,143,625
Turkey Government Bonds:
9.000%, 01/27/16	TRY		9,896		4,268,605
9.000%, 03/08/17	TRY		4,075		1,790,029
6.300%, 02/14/18	TRY		8,640		3,541,787
3.000%, 07/21/21	TRY		3,099		1,434,409
8.500%, 09/14/22	TRY		2,600		1,149,344
					21,007,212
Ukraine \| 0.8%
Ukraine Government Bonds:
9.250%, 07/24/17	USD		900		558,000
7.750%, 09/23/20	USD		575		347,875

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

48 Annual Report

Description	Security Currency	Principal Amount (000)		Value

Lazard Emerging Markets Debt Portfolio (continued)

7.800%, 11/28/22	USD		1,150	$	684,250
7.500%, 04/17/23	USD		1,850		1,082,250
					2,672,375
Uruguay \| 0.3%
Republica of Uruguay, 7.875%, 01/15/33	USD		650		897,000

Venezuela \| 0.6%
Republic of Venezuela:
5.750%, 02/26/16	USD		1,190		767,550
12.750%, 08/23/22	USD		225		119,812
7.650%, 04/21/25	USD		1		438
9.250%, 09/15/27	USD		430		205,325
11.950%, 08/05/31	USD		535		260,812
9.375%, 01/13/34	USD		651		296,205
7.000%, 03/31/38	USD		782		326,485
					1,976,627
Vietnam \| 0.2%
Socialist Republic of Vietnam, 4.800%, 11/19/24 (c)	USD		625		645,313

Zambia \| 0.4%
Republic of Zambia:
5.375%, 09/20/22	USD		750		697,500
8.500%, 04/14/24	USD		645		714,337
					1,411,837
Total Foreign Government Obligations (Identified cost $271,434,735)					258,712,364

Quasi Government Bonds \| 1.9%

Colombia \| 0.3%
Emgesa SA ESP, 8.750%, 01/25/21	COP		1,000,000		456,133
Empresas Publicas de Medellin ESP, 8.375%, 02/01/21	COP		1,170,000		523,755
					979,888

Description	Security Currency	Principal Amount (000)		Value

Mexico \| 0.6%
Petroleos Mexicanos,
3.500%, 07/18/18	USD		700	$	708,750
8.000%, 05/03/19	USD		550		651,750
5.500%, 06/27/44 (c)	USD		705		721,744
					2,082,244
South Africa \| 0.2%
Eskom Holdings, Ltd., 7.850%, 04/02/26	ZAR		9,000		709,229

Venezuela \| 0.8%
Petroleos de Venezuela SA:
5.000%, 10/28/15	USD		415		309,175
5.250%, 04/12/17	USD		713		331,545
5.375%, 04/12/27	USD		940		339,575
9.750%, 05/17/35	USD		1,400		630,000
5.500%, 04/12/37	USD		2,770		979,888
					2,590,183
Total Quasi Government Bonds (Identified cost $8,183,683)					6,361,544

Description	Shares		Value

Short-Term Investment \| 10.8%
State Street Institutional Treasury Money Market Fund (Identified cost $35,443,056)		35,443,056	$	35,443,056

Total Investments \| 100.6% (Identified cost $345,457,971) (d)			$	329,252,092

Liabilities in Excess of Cash and Other Assets \| (0.6)%				(1,980,889	)

Net Assets \| 100.0%			$	327,271,203

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

Annual Report 49

Description	Security Currency	Principal Amount (000)		Value

Lazard Emerging Markets Income Portfolio

Foreign Government Obligations \| 32.3%

Brazil \| 4.1%
Brazil NTN-B, 6.000%, 08/15/16	BRL		220	$	207,981

Hungary \| 1.9%
Hungary Government Bond, 4.000%, 04/25/18	HUF		25,000		98,824

Indonesia \| 1.1%
Indonesia Government Bond, 7.875%, 04/15/19	IDR		650,000		53,139

Israel \| 1.3%
Israel Government Bond - Galil, 5.000%, 04/30/15	ILS		190		65,298

Malaysia \| 3.8%
Bank Negara Malaysia Monetary Note, 0.000%, 08/04/15	MYR		700		196,137

Mexico \| 8.4%
Mexican Bonos:
6.000%, 06/18/15	MXN		5,400		370,899
4.750%, 06/14/18	MXN		900		60,866
					431,765
Poland \| 3.8%
Poland Government Bond, 5.500%, 04/25/15	PLN		675		192,912

Romania \| 0.9%
Romania Government Bonds:
5.850%, 04/26/23	RON		120		37,563
5.800%, 07/26/27	RON		30		9,469
					47,032
Singapore \| 5.3%
Singapore Government Bond, 0.250%, 02/01/15	SGD		360		271,665

South Africa \| 1.7%
Republic of South Africa, 10.500%, 12/21/26	ZAR		850		88,012

Description	Security Currency	Principal Amount (000)		Value

Total Foreign Government Obligations (Identified cost $1,763,315)				$	1,652,765

Supranationals \| 1.0%
European Investment Bank, 7.200%, 07/09/19 (c) (Identified cost $51,147)	IDR		600,000		47,776

US Treasury Securities \| 61.8%
US Treasury Notes:
0.250%, 01/15/15	USD		225		225,000
2.250%, 01/31/15	USD		225		225,378
4.000%, 02/15/15	USD		225		226,037
0.250%, 02/28/15	USD		225		225,061
0.375%, 03/15/15	USD		250		250,156
0.250%, 03/31/15	USD		250		250,088
2.500%, 03/31/15	USD		250		251,455
0.375%, 04/15/15	USD		200		200,156
2.500%, 04/30/15	USD		300		302,367
2.125%, 05/31/15	USD		500		504,102
0.375%, 06/15/15	USD		250		250,293
1.875%, 06/30/15	USD		250		252,149

Total US Treasury Securities (Identified cost $3,162,782)					3,162,242

Description	Shares		Value

Short-Term Investment \| 14.7%
State Street Institutional Treasury Money Market Fund (Identified cost $754,131)		754,131	$	754,131

Total Investments \| 109.8% (Identified cost $5,731,375) (d), (f)			$	5,616,914

Liabilities in Excess of Cash and Other Assets \| (9.8)%				(499,261	)

Net Assets \| 100.0%			$	5,117,653

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

50 Annual Report

Lazard Emerging Markets Income Portfolio (continued)

Forward Currency Contracts open at December 31, 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	01/05/15	140,424		$	52,866		$	52,826		$	—		$	40
BRL	CIT	01/05/15	33,450			12,573			12,584			11			—
BRL	CIT	01/05/15	106,974			42,000			40,243			—			1,757
CLP	CIT	01/27/15	28,670,000			47,000			47,119			119			—
CLP	UBS	02/17/15	52,094,280			84,000			85,442			1,442			—
CNH	HSB	02/17/15	1,568,574			252,000			251,296			—			704
CNH	HSB	03/03/15	721,971			116,017			115,489			—			528
CNH	HSB	05/21/15	1,319,180			212,544			209,699			—			2,845
COP	SCB	02/24/15	123,660,000			54,000			51,923			—			2,077
CZK	JPM	01/08/15	3,672,371			164,610			160,425			—			4,185
EUR	JPM	01/26/15	87,101			106,712			105,420			—			1,292
HUF	CIT	02/27/15	14,452,740			56,311			55,164			—			1,147
HUF	JPM	01/22/15	12,587,928			49,149			48,097			—			1,052
HUF	JPM	01/22/15	21,505,000			85,000			82,168			—			2,832
IDR	JPM	01/12/15	1,020,736,000			82,000			82,260			260			—
IDR	JPM	02/11/15	1,027,050,000			82,000			82,124			124			—
ILS	JPM	01/20/15	292,203			74,163			74,913			750			—
INR	JPM	01/22/15	27,366,430			427,000			431,716			4,716			—
INR	JPM	01/27/15	1,662,660			27,000			26,197			—			803
INR	SCB	01/12/15	2,216,880			36,000			35,059			—			941
KRW	CIT	02/13/15	525,162,690			477,000			479,207			2,207			—
KWD	CIT	08/18/15	16,504			57,000			56,232			—			768
MXN	JPM	01/15/15	383,288			26,000			25,963			—			37
PEN	SCB	01/09/15	139,021			47,000			46,612			—			388
PHP	BRC	01/16/15	3,102,240			69,000			69,308			308			—
PLN	JPM	01/08/15	126,955			36,000			35,853			—			147
RUB	JPM	01/23/15	9,376,000			160,000			155,622			—			4,378
RUB	JPM	01/23/15	18,214,725			326,546			302,326			—			24,220
SGD	HSB	02/11/15	81,530			61,898			61,493			—			405
THB	SCB	01/22/15	9,113,240			274,000			276,765			2,765			—
TRY	JPM	01/22/15	492,450			210,000			209,940			—			60
TRY	JPM	02/11/15	128,974			56,000			54,733			—			1,267
TRY	JPM	02/11/15	367,832			156,000			156,100			100			—
TWD	JPM	01/16/15	5,574,545			178,186			176,358			—			1,828
ZAR	CIT	01/20/15	222,268			19,000			19,168			168			—
Total Forward Currency Purchase Contracts					$	4,216,575		$	4,175,844		$	12,970		$	53,701

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

Annual Report 51

Lazard Emerging Markets Income Portfolio (concluded)

Forward Currency Contracts open at December 31, 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	BRC	01/05/15	140,424		$	53,000		$	52,827		$	173		$	—
BRL	CIT	01/05/15	140,424			52,867			52,827			40			—
BRL	CIT	03/02/15	32,442			12,000			12,021			—			21
CNH	HSB	02/17/15	374,970			60,000			60,073			—			73
EUR	CIT	02/27/15	46,000			56,311			55,690			621			—
EUR	JPM	01/08/15	133,000			164,610			160,942			3,668			—
EUR	JPM	01/22/15	40,000			49,149			48,411			738			—
HUF	JPM	01/22/15	19,993,424			78,023			76,392			1,631			—
ILS	CIT	05/04/15	266,075			75,482			68,267			7,215			—
INR	JPM	01/22/15	1,713,852			27,000			27,037			—			37
JPY	CIT	03/11/15	3,221,970			27,000			26,914			86			—
KWD	CIT	08/18/15	16,504			56,348			56,232			116			—
MXN	JPM	01/15/15	930,880			64,000			63,056			944			—
MYR	SCB	02/13/15	59,072			16,881			16,812			69			—
PEN	CIT	01/09/15	139,021			46,558			46,612			—			54
PLN	JPM	01/08/15	117,815			35,000			33,271			1,729			—
RON	JPM	06/10/15	178,132			49,000			47,871			1,129			—
SGD	HSB	02/11/15	30,468			23,000			22,980			20			—
THB	BRC	01/22/15	956,855			29,000			29,059			—			59
TRY	JPM	02/11/15	496,806			221,571			210,834			10,737			—
TWD	JPM	01/16/15	759,624			24,000			24,032			—			32
ZAR	BRC	01/20/15	476,784			41,243			41,118			125			—
Total Forward Currency Sale Contracts					$	1,262,043		$	1,233,278			29,041			276
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts											$	42,011		$	53,977

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

52 Annual Report

Description	Security Currency	Principal Amount (000)		Value

Lazard Explorer Total Return Portfolio

Corporate Bonds \| 28.5%

Argentina \| 0.4%
YPF Sociedad Anonima, 8.750%, 04/04/24	USD	525	$	527,625

Brazil \| 2.9%
Banco do Brasil SA:
9.000%, 06/18/24 (g)	USD	200		186,500
9.000%, 06/18/24 (c), (g)	USD	1,550		1,445,375
Gol LuxCo SA, 8.875%, 01/24/22 (c)	USD	1,325		1,265,189
Klabin Finance SA, 5.250%, 07/16/24	USD	450		436,500
Odebrecht Offshore Drilling Finance, Ltd., 6.625%, 10/01/23	USD	890		805,649
				4,139,213
Bulgaria \| 0.4%
ContourGlobal Power Holdings SA:
7.125%, 06/01/19	USD	200		201,000
7.125%, 06/01/19 (c)	USD	300		301,500
				502,500
Chile \| 2.4%
Colbun SA, 4.500%, 07/10/24	USD	450		452,250
E.CL SA, 4.500%, 01/29/25 (c)	USD	500		503,150
Empresa Electrica Angamos SA, 4.875%, 05/25/29 (c)	USD	525		518,437
ENTEL Chile SA, 4.875%, 10/30/24	USD	625		637,500
GNL Quintero SA, 4.634%, 07/31/29	USD	850		863,855
SACI Falabella, 4.375%, 01/27/25 (c)	USD	450		442,125
				3,417,317
China \| 3.2%
Bank of China, Ltd., 5.000%, 11/13/24 (c)	USD	500		516,100
BCP Singapore VI Cayman Financing Co., Ltd., 8.000%, 04/15/21	USD	825		836,344

Description	Security Currency	Principal Amount (000)		Value

Country Garden Holdings Co., Ltd., 7.250%, 04/04/21	USD	875	$	837,812
Green Dragon Gas, Ltd., 10.000%, 11/20/17	USD	400		392,000
Honghua Group, Ltd., 7.450%, 09/25/19 (c)	USD	750		446,250
Maoye International Holdings, Ltd., 7.750%, 05/19/17 (c)	USD	825		812,625
MIE Holdings Corp., 7.500%, 04/25/19	USD	875		676,804
				4,517,935
Colombia \| 1.2%
Bancolombia SA, 5.125%, 09/11/22	USD	650		645,938
Grupo Aval, Ltd., 4.750%, 09/26/22	USD	450		437,625
Millicom International Cellular SA, 4.750%, 05/22/20	USD	200		190,000
Oleoducto Central SA, 4.000%, 05/07/21	USD	450		430,875
				1,704,438
Georgia \| 0.3%
Bank of Georgia JSC, 7.750%, 07/05/17	USD	475		488,063

Guatemala \| 1.1%
Comcel Trust, 6.875%, 02/06/24	USD	700		735,000
Industrial Senior Trust, 5.500%, 11/01/22	USD	775		769,664
				1,504,664
India \| 0.5%
Greenko Dutch BV, 8.000%, 08/01/19 (c)	USD	850		754,630

Indonesia \| 1.0%
Ottawa Holdings Pte, Ltd., 5.875%, 05/16/18	USD	600		481,500
PT Berau Coal Energy Tbk, 7.250%, 03/13/17	USD	300		146,250
PT Perusahaan Gas Negara Persero Tbk, 5.125%, 05/16/24	USD	800		816,000
				1,443,750

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

Annual Report 53

Description	Security Currency	Principal Amount (000)		Value

Lazard Explorer Total Return Portfolio (continued)

Iraq \| 0.9%
Genel Energy Finance, Ltd., 7.500%, 05/14/19	USD		600	$	510,000
Gulf Keystone Petroleum, Ltd., 13.000%, 04/18/17	USD		1,000		700,000
					1,210,000
Kazakhstan \| 1.1%
Halyk Savings Bank of Kazakhstan JSC, 7.250%, 01/28/21	USD		950		940,500
Nostrum Oil & Gas Finance BV, 6.375%, 02/14/19	USD		650		562,250
					1,502,750
Kuwait \| 0.4%
Kuwait Energy PLC, 9.500%, 08/04/19	USD		575		537,625

Malta \| 0.6%
Atlantica Tender Drilling, Ltd., 8.000%, 09/23/19	USD		900		814,500

Mexico \| 4.4%
Alfa SAB de CV, 5.250%, 03/25/24	USD		825		858,000
America Movil SAB de CV, 6.000%, 06/09/19	MXN		6,610		450,385
Credito Real SAB de CV, 7.500%, 03/13/19	USD		825		841,500
Empresas ICA SAB de CV:
8.875%, 05/29/24	USD		375		337,359
8.875%, 05/29/24 (c)	USD		775		697,209
Mexichem SAB de CV, 4.875%, 09/19/22	USD		450		463,500
Mexico Generadora de Energia S de rl, 5.500%, 12/06/32	USD		850		833,000
Oro Negro Drilling Pte, Ltd., 7.500%, 01/24/19 (c)	USD		575		465,750
Sixsigma Networks Mexico SA de CV, 8.250%, 11/07/21 (c)	USD		450		459,000
Unifin Financiera SAPI de CV SOFOM ENR, 6.250%, 07/22/19 (c)	USD		850		777,750
					6,183,453

Description	Security Currency	Principal Amount (000)		Value

Nigeria \| 1.6%
Diamond Bank PLC, 8.750%, 05/21/19 (c)	USD		450	$	398,250
FBN Finance Co. BV:
8.250%, 08/07/20	USD		900		839,925
8.000%, 07/23/21	USD		200		177,250
8.000%, 07/23/21 (c)	USD		200		177,250
Seven Energy, Ltd., 10.250%, 10/11/21 (c)	USD		675		604,125
					2,196,800
Panama \| 0.3%
Global Bank Corp., 5.125%, 10/30/19 (c)	USD		450		455,724

Paraguay \| 0.4%
Telefonica Celular del Paraguay SA, 6.750%, 12/13/22	USD		475		498,750

Peru \| 0.7%
Banco de Credito del Peru, 6.125%, 04/24/27	USD		500		530,000
Cementos Pacasmayo SAA, 4.500%, 02/08/23	USD		550		514,250
					1,044,250
Russia \| 1.6%
Alliance Oil Co., Ltd., 7.000%, 05/04/20	USD		625		281,250
ALROSA Finance SA, 7.750%, 11/03/20	USD		875		822,500
EDC Finance, Ltd., 4.875%, 04/17/20	USD		250		163,750
Gazprom OAO Via Gaz Capital SA, 4.300%, 11/12/15 (c)	USD		1,025		1,004,500
					2,272,000
Singapore \| 1.4%
Opus Offshore Ventures Pte, Ltd., 9.000%, 07/18/15	USD		1,000		1,012,500
Pacnet, Ltd., 9.000%, 12/12/18	USD		925		1,045,250
					2,057,750
Thailand \| 0.6%
PTT Exploration & Production Public Co. Ltd., 4.875%, 12/29/49	USD		850		845,750

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

54 Annual Report

Description	Security Currency	Principal Amount (000)		Value

Lazard Explorer Total Return Portfolio (continued)

Turkey \| 0.1%
Akbank TAS, 5.000%, 10/24/22	USD		150	$	151,875

Uruguay \| 0.4%
Navios South American Logistics, Inc., 7.250%, 05/01/22	USD		525		530,250

Vietnam \| 0.6%
Vingroup JSC, 11.625%, 05/07/18	USD		750		783,038

Total Corporate Bonds (Identified cost $43,187,265)					40,084,650

Foreign Government Obligations \| 50.9%

Angola \| 2.4%
Republic of Angola Northern Lights III BV, 7.000%, 08/16/19	USD		3,325		3,308,375

Bahrain \| 2.4%
Kingdom of Bahrain, 6.000%, 09/19/44 (c)	USD		3,450		3,312,000

Belarus \| 1.0%
Republic of Belarus, 8.950%, 01/26/18	USD		1,525		1,410,625

Bolivia \| 2.3%
Bolivia Government Bonds:
4.875%, 10/29/22	USD		1,405		1,426,075
5.950%, 08/22/23	USD		1,725		1,815,562
					3,241,637
Brazil \| 1.7%
Brazil NTN-B, 6.000%, 08/15/50	BRL		2,610		2,405,598

Chile \| 0.3%
Republic of Chile, 2.250%, 10/30/22	USD		425		409,488

Description	Security Currency	Principal Amount (000)		Value

Colombia \| 2.2%
Republic of Colombia:
4.000%, 02/26/24	USD		875	$	896,875
6.125%, 01/18/41	USD		300		360,000
5.625%, 02/26/44	USD		1,600		1,808,000
					3,064,875
Congo \| 1.8%
Republic of Congo, 3.500%, 06/30/29 (e)	USD		2,766		2,517,251

Costa Rica \| 1.0%
Costa Rica Government, 5.625%, 04/30/43	USD		975		806,812
Republic of Costa Rica, 7.000%, 04/04/44	USD		650		641,469
					1,448,281
Croatia \| 0.7%
Croatia:
6.250%, 04/27/17	USD		250		266,250
6.750%, 11/05/19	USD		150		165,938
6.625%, 07/14/20	USD		100		110,625
5.500%, 04/04/23	USD		250		261,875
6.000%, 01/26/24	USD		200		216,500
					1,021,188
Dominican Republic \| 0.7%
Dominican Republic, 7.450%, 04/30/44	USD		850		935,000

Ecuador \| 1.7%
Republic of Ecuador:
7.950%, 06/20/24	USD		200		172,000
7.950%, 06/20/24 (c)	USD		2,500		2,150,000
					2,322,000
El Salvador \| 0.6%
Republic of El Salvador:
6.375%, 01/18/27 (c)	USD		475		483,312
7.650%, 06/15/35	USD		375		402,891
					886,203
Georgia \| 0.6%
Republic of Georgia, 6.875%, 04/12/21	USD		800		848,000

Honduras \| 1.2%
Honduras Government Bond, 7.500%, 03/15/24	USD		1,625		1,702,188

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

Annual Report 55

Description	Security Currency	Principal Amount (000)		Value

Lazard Explorer Total Return Portfolio (continued)

Hungary \| 1.2%
Hungary:
6.250%, 01/29/20	USD		350	$	394,329
5.375%, 03/25/24	USD		1,250		1,358,863
					1,753,192
Indonesia \| 1.3%
Indonesia Government Bond, 7.875%, 04/15/19	IDR		5,000		409
Republic of Indonesia:
4.875%, 05/05/21	USD		675		713,812
3.750%, 04/25/22	USD		400		394,000
5.250%, 01/17/42	USD		650		656,175
					1,764,396
Iraq \| 2.4%
Republic of Iraq, 5.800%, 01/15/28	USD		3,925		3,355,875

Ivory Coast \| 1.7%
Ivory Coast, 5.750%, 12/31/32	USD		2,511		2,423,115

Kazakhstan \| 0.6%
Republic of Kazakhstan:
3.875%, 10/14/24 (c)	USD		425		397,386
4.875%, 10/14/44 (c)	USD		425		388,875
					786,261
Kenya \| 0.1%
Kenya Infrastructure Bond, 6.000%, 08/19/19	KES		17,850		166,611

Lithuania \| 0.6%
Republic of Lithuania, 7.375%, 02/11/20	USD		700		845,051

Mexico \| 0.3%
Mexican Bonos, 7.750%, 11/13/42	MXN		4,960		388,514

Morocco \| 0.6%
Kingdom of Morocco:
4.250%, 12/11/22	USD		475		485,688
5.500%, 12/11/42	USD		375		390,000
					875,688

Description	Security Currency	Principal Amount (000)		Value

Mozambique \| 2.1%
Republic of Mozambique, 6.305%, 09/11/20	USD		3,050	$	2,989,000

Pakistan \| 2.2%
Islamic Republic of Pakistan, 8.250%, 04/15/24	USD		3,000		3,108,750

Panama \| 2.5%
Republic of Panama:
4.000%, 09/22/24	USD		1,125		1,160,156
6.700%, 01/26/36	USD		1,770		2,296,575
					3,456,731
Paraguay \| 2.5%
Republic of Paraguay:
6.100%, 08/11/44	USD		750		804,375
6.100%, 08/11/44 (c)	USD		2,575		2,761,687
					3,566,062
Peru \| 0.6%
Republic of Peru, 8.750%, 11/21/33	USD		575		897,000

Poland \| 0.1%
Republic of Poland, 3.000%, 03/17/23	USD		125		124,666

Portugal \| 3.6%
Republic of Portugal:
5.125%, 10/15/24	USD		1,225		1,288,109
5.125%, 10/15/24 (c)	USD		3,525		3,706,601
					4,994,710
Romania \| 0.8%
Romania Government Bonds:
5.950%, 06/11/21	RON		950		297,590
6.750%, 02/07/22	USD		700		842,625
					1,140,215

Rwanda \| 1.1%
Republic of Rwanda, 6.625%, 05/02/23	USD		1,525		1,578,375

Senegal \| 0.5%
Republic of Senegal, 8.750%, 05/13/21	USD		675		754,313

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

56 Annual Report

Description	Security Currency	Principal Amount (000)		Value

Lazard Explorer Total Return Portfolio (continued)

Slovenia \| 1.4%
Republic of Slovenia, 5.250%, 02/18/24	USD		1,850	$	2,039,344

South Africa \| 0.8%
Republic of South Africa:
5.500%, 03/09/20	USD		175		191,844
5.875%, 05/30/22	USD		225		253,688
8.250%, 03/31/32	ZAR		3,260		274,965
5.375%, 07/24/44	USD		400		424,500
					1,144,997
Sri Lanka \| 0.6%
Republic of Sri Lanka:
6.000%, 01/14/19	USD		325		338,967
6.250%, 10/04/20	USD		125		130,781
6.250%, 07/27/21	USD		325		340,844
					810,592
Turkey \| 2.5%
Hazine Mustesarligi Varlik Kiralama AS, 4.489%, 11/25/24 (c)	USD		1,070		1,086,050
Republic of Turkey:
5.750%, 03/22/24	USD		950		1,065,187
6.750%, 05/30/40	USD		1,050		1,304,625
					3,455,862
Venezuela \| 0.2%
Republic of Venezuela, 9.000%, 05/07/23	USD		600		276,000

Total Foreign Government Obligations (Identified cost $72,850,301)					71,528,029

Quasi Government Bonds \| 4.9%

Malaysia \| 1.2%
1MDB Global Investments, Ltd., 4.400%, 03/09/23	USD		1,700		1,683,314

Description	Security Currency	Principal Amount (000)		Value

Mexico \| 1.8%
Petroleos Mexicanos,
6.625%, 06/15/35	USD		625	$	723,438
5.500%, 06/27/44 (c)	USD		1,770		1,812,038
					2,535,476
Venezuela \| 1.9%
Petroleos de Venezuela SA:
5.250%, 04/12/17	USD		15		6,975
8.500%, 11/02/17	USD		350		201,687
6.000%, 05/16/24	USD		2,900		1,105,625
6.000%, 11/15/26	USD		2,825		1,041,719
5.500%, 04/12/37	USD		975		344,906
					2,700,912

Total Quasi Government Bonds (Identified cost $8,131,829)					6,919,702


Description			Shares		Value

Warrant \| 0.0%

Iraq \| 0.0%
Gulf Keystone Petroleum, Ltd. Expires 04/18/17 (Identified cost $0)			96,000	$	0

Short-Term Investment \| 13.6%
State Street Institutional Treasury Money Market Fund (Identified cost $19,069,028)			19,069,028		19,069,028

Total Investments \| 97.9% (Identified cost $143,238,423) (d), (f)				$	137,601,409

Cash and Other Assets in Excess of Liabilities \| 2.1%					3,021,828

Net Assets \| 100.0%				$	140,623,237

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

Annual Report 57

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at December 31, 2014:

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation		Unrealized Depreciation

Forward Currency Purchase Contract
AUD		SCB	01/20/15		1,563,683	$	1,280,000	$	1,275,197	$	—	$	4,803
BRL		BOA	01/05/15		224,371		84,471		84,407		—		64
BRL		BOA	01/05/15		779,418		293,433		293,212		—		221
BRL		BOA	01/05/15		1,003,789		374,828		377,620		2,792		—
BRL		BOA	02/03/15		224,371		83,005		83,750		745		—
BRL		BRC	01/05/15		517,513		194,832		194,685		—		147
BRL		BRC	01/05/15		636,382		239,583		239,403		—		180
BRL		BRC	01/05/15		903,170		340,023		339,767		—		256
BRL		BRC	01/05/15		918,155		345,665		345,405		—		260
BRL		BRC	01/05/15		2,208,345		865,000		830,767		—		34,233
BRL		BRC	01/05/15		2,221,110		870,000		835,569		—		34,431
BRL		BRC	01/05/15		2,946,834		1,101,209		1,108,583		7,374		—
BRL		BRC	01/05/15		4,401,069		1,656,904		1,655,657		—		1,247
BRL		SCB	01/05/15		736,859		277,411		277,202		—		209
BRL		SCB	01/05/15		886,868		333,886		333,635		—		251
BRL		SCB	01/05/15		2,207,480		865,000		830,442		—		34,558
BRL		SCB	01/05/15		2,214,585		870,000		833,115		—		36,885
BRL		SCB	01/05/15		2,798,338		1,053,512		1,052,719		—		793
BRL		SCB	02/03/15		2,798,338		1,035,042		1,044,522		9,480		—
CNH		CIT	01/20/15		4,408,830		707,939		708,272		333		—
CNH		JPM	01/20/15		7,118,570		1,144,409		1,143,588		—		821
CNH		SCB	01/20/15		4,408,874		708,822		708,279		—		543
CNH		UBS	01/20/15		1,439,248		231,558		231,213		—		345
EUR		BOA	01/20/15		799,160		993,543		967,178		—		26,365
EUR		BRC	01/12/15		602,569		751,970		729,193		—		22,777
EUR		BRC	01/12/15		616,872		769,275		746,502		—		22,773
EUR		BRC	01/12/15		775,523		966,409		938,491		—		27,918
EUR		SCB	01/12/15		746,401		930,725		903,250		—		27,475
EUR		SCB	01/12/15		759,926		948,030		919,617		—		28,413
EUR		SCB	01/12/15		911,902		1,110,000		1,103,530		—		6,470
EUR		SCB	01/12/15		933,400		1,162,788		1,129,545		—		33,243
EUR		SCB	01/20/15		592,369		736,457		716,911		—		19,546
EUR		SCB	01/20/15		624,101		776,282		755,315		—		20,967
EUR		UBS	01/12/15		423,921		528,943		513,004		—		15,939
HUF		HSB	01/12/15		77,604,000		300,000		296,609		—		3,391
IDR		JPM	01/20/15		15,733,202,574		1,264,016		1,267,002		2,986		—
IDR		SCB	01/12/15		24,099,325,177		1,946,634		1,943,456		—		3,178
IDR		SCB	01/20/15		10,565,700,000		820,000		850,861		30,861		—
IDR		SCB	01/20/15		10,578,000,000		820,000		851,851		31,851		—
IDR		SCB	01/20/15		15,733,202,574		1,263,204		1,267,002		3,798		—
INR		BRC	01/12/15		69,185,884		1,108,837		1,094,433		—		14,404
INR		HSB	01/12/15		91,279,010		1,462,805		1,443,918		—		18,887
INR		JPM	01/12/15		53,807,256		861,950		851,162		—		10,788
INR		JPM	01/20/15		203,909,500		3,271,975		3,220,133		—		51,842
INR		SCB	01/12/15		74,149,507		1,188,484		1,172,951		—		15,533

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

58 Annual Report

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at December 31, 2014 (continued):

Currency	Counterparty		Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date		US $ Current Value		Unrealized Appreciation		Unrealized Depreciation

Forward Currency Purchase Contract (concluded)
INR		SCB	01/20/15		64,385,150	$	1,034,134	$	1,016,769	$	—	$	17,365
INR		UBS	01/12/15		99,752,510		1,598,854		1,577,958		—		20,896
JPY		BRC	01/20/15		102,575,450		849,999		856,466		6,467		—
JPY		SCB	01/20/15		102,581,400		850,000		856,516		6,516		—
MXN		BOA	01/12/15		5,804,273		411,586		393,243		—		18,343
MXN		BRC	01/12/15		7,921,680		549,556		536,699		—		12,857
MXN		BRC	01/12/15		11,935,797		820,000		808,657		—		11,343
MXN		SCB	01/12/15		5,804,272		411,467		393,243		—		18,224
MXN		SCB	01/12/15		8,085,250		560,444		547,780		—		12,664
MXN		SCB	01/20/15		6,363,355		430,000		430,912		912		—
MYR		JPM	01/12/15		3,561,626		1,028,926		1,018,054		—		10,872
MYR		JPM	01/20/15		3,377,318		959,874		964,752		4,878		—
MYR		SCB	01/12/15		1,955,679		565,552		559,011		—		6,541
MYR		SCB	01/12/15		3,092,239		895,522		883,884		—		11,638
MYR		SCB	01/20/15		2,497,867		710,126		713,532		3,406		—
MYR		SCB	01/22/15		1,354,565		389,820		386,878		—		2,942
MYR		UBS	01/22/15		1,495,199		430,180		427,044		—		3,136
PEN		BRC	01/12/15		1,085,101		368,018		363,542		—		4,476
PEN		HSB	01/12/15		1,449,625		491,982		485,668		—		6,314
SGD		BRC	01/12/15		1,717,443		1,300,000		1,296,283		—		3,717
SGD		BRC	01/20/15		2,622		1,996		1,979		—		17
SGD		BRC	01/20/15		781,607		595,000		589,811		—		5,189
SGD		SCB	01/20/15		781,533		595,000		589,755		—		5,245
SGD		SCB	01/20/15		944,352		720,000		712,620		—		7,380
SGD		SCB	01/20/15		1,238,478		940,000		934,572		—		5,428
THB		BRC	01/12/15		24,148,786		734,676		733,774		—		902
THB		BRC	01/20/15		31,004,600		935,000		941,694		6,694		—
THB		SCB	01/12/15		33,391,384		1,015,306		1,014,615		—		691
THB		SCB	01/20/15		1,649,250		50,000		50,092		92		—
THB		SCB	01/20/15		30,976,550		935,000		940,842		5,842		—
TRY		CIT	01/20/15		1,614,484		709,243		688,611		—		20,632
TRY		SCB	01/12/15		932,000		400,000		398,272		—		1,728
TRY		SCB	01/12/15		1,918,218		816,958		819,713		2,755		—
TRY		SCB	01/20/15		115,995		49,269		49,474		205		—
TRY		SCB	01/20/15		1,614,484		708,169		688,610		—		19,559
TRY		UBS	01/20/15		1,614,484		708,045		688,610		—		19,435
TWD		SCB	01/20/15		626,600		20,000		19,829		—		171
TWD		SCB	01/20/15		23,947,000		770,000		757,812		—		12,188
TWD		SCB	01/20/15		26,573,931		850,638		840,942		—		9,696
TWD		UBS	01/20/15		26,573,931		849,740		840,942		—		8,798
ZAR		BRC	01/12/15		4,294,269		367,459		370,813		3,354		—
ZAR		SCB	01/12/15		4,632,200		400,000		399,993		—		7
ZAR		SCB	01/12/15		5,267,129		452,541		454,820		2,279		—
Total Forward Currency Purchase Contracts						$	67,218,939	$	66,554,009	$	133,620	$	798,550

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

Annual Report 59

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at December 31, 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
AUD		SCB	01/20/15		12,052	$	9,884	$	9,829	$	55	$	—
AUD		SCB	01/20/15		512,377		430,000		417,848		12,152		—
AUD		SCB	01/20/15		517,530		430,000		422,050		7,950		—
AUD		SCB	01/20/15		521,724		430,000		425,471		4,529		—
BRL		BOA	01/05/15		224,371		83,720		84,407		—		687
BRL		BOA	01/05/15		779,418		296,256		293,213		3,043		—
BRL		BOA	01/05/15		1,003,789		377,904		377,620		284		—
BRL		BRC	01/05/15		517,513		196,661		194,686		1,975		—
BRL		BRC	01/05/15		636,382		244,809		239,403		5,406		—
BRL		BRC	01/05/15		903,170		338,266		339,768		—		1,502
BRL		BRC	01/05/15		918,155		360,372		345,405		14,967		—
BRL		BRC	01/05/15		2,208,345		831,393		830,767		626		—
BRL		BRC	01/05/15		2,221,110		836,198		835,569		629		—
BRL		BRC	01/05/15		2,946,834		1,109,418		1,108,583		835		—
BRL		BRC	01/05/15		4,401,069		1,717,826		1,655,658		62,168		—
BRL		BRC	02/03/15		992,710		370,000		370,544		—		544
BRL		BRC	02/03/15		2,946,834		1,092,148		1,099,950		—		7,802
BRL		SCB	01/05/15		736,859		283,625		277,202		6,423		—
BRL		SCB	01/05/15		886,868		337,084		333,635		3,449		—
BRL		SCB	01/05/15		2,207,480		831,067		830,442		625		—
BRL		SCB	01/05/15		2,214,585		833,742		833,115		627		—
BRL		SCB	01/05/15		2,798,338		1,043,961		1,052,719		—		8,758
CNH		BRC	01/20/15		4,044,885		650,000		649,805		195		—
CNH		JPM	01/20/15		3,177,043		510,438		510,387		51		—
CNH		SCB	01/20/15		1,443,203		231,739		231,848		—		109
CNH		SCB	01/20/15		1,803,172		289,708		289,677		31		—
CNH		SCB	01/20/15		4,044,950		650,000		649,815		185		—
CNH		UBS	01/20/15		2,862,269		459,854		459,819		35		—
EUR		SCB	01/12/15		5,180,490		6,432,822		6,269,121		163,701		—
EUR		SCB	01/20/15		2,015,630		2,469,651		2,439,404		30,247		—
EUR		UBS	01/12/15		5,180,491		6,440,635		6,269,122		171,513		—
HUF		BRC	01/12/15		219,670,425		880,814		839,598		41,216		—
HUF		SCB	01/12/15		219,670,425		880,920		839,598		41,322		—
IDR		BOA	01/20/15		12,554,992,196		959,128		1,011,059		—		51,931
IDR		BRC	01/12/15		7,594,500,000		610,000		612,448		—		2,448
IDR		HSB	01/20/15		4,801,275,395		365,811		386,648		—		20,837
IDR		JPM	01/12/15		9,040,519,095		725,272		729,060		—		3,788
IDR		JPM	01/20/15		4,801,275,395		366,790		386,649		—		19,859
IDR		SCB	01/12/15		3,486,000,000		280,000		281,124		—		1,124
IDR		SCB	01/12/15		7,784,107,267		624,728		627,739		—		3,011
IDR		SCB	01/20/15		9,308,862,162		710,871		749,646		—		38,775
INR		BRC	01/12/15		31,478,066		501,084		497,943		3,141		—
INR		BRC	01/20/15		54,374,500		850,000		858,681		—		8,681
INR		BRC	01/20/15		70,801,808		1,111,000		1,118,100		—		7,100
INR		SCB	01/12/15		45,619,200		720,000		721,638		—		1,638

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

60 Annual Report

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at December 31, 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 (concluded)
INR		SCB	01/12/15		45,761,008	$	728,099	$	723,881	$	4,218	$	—
INR		SCB	01/20/15		89,795,570		1,409,000		1,418,049		—		9,049
INR		UBS	01/12/15		44,660,678		710,818		706,475		4,343		—
INR		UBS	01/20/15		53,322,772		834,211		842,072		—		7,861
JPY		BRC	01/20/15		103,026,379		853,299		860,232		—		6,933
JPY		SCB	01/20/15		1,616,331		13,394		13,496		—		102
JPY		SCB	01/20/15		100,514,140		830,627		839,256		—		8,629
MXN		BRC	01/12/15		5,744,332		386,251		389,181		—		2,930
MXN		SCB	01/12/15		7,195,518		483,749		487,501		—		3,752
MXN		SCB	01/12/15		7,519,950		510,000		509,481		519		—
MXN		SCB	01/20/15		213,036		14,455		14,426		29		—
MXN		SCB	01/20/15		6,150,319		427,061		416,486		10,575		—
MYR		BRC	01/12/15		2,740,140		780,000		783,241		—		3,241
MYR		JPM	01/20/15		2,936,568		836,724		838,849		—		2,125
MYR		SCB	01/12/15		8,753,720		2,526,764		2,502,161		24,603		—
MYR		SCB	01/20/15		2,050		582		585		—		3
MYR		SCB	01/20/15		2,936,568		836,629		838,849		—		2,220
PEN		BRC	01/12/15		1,277,388		431,988		427,964		4,024		—
PEN		CIT	01/12/15		1,277,388		433,822		427,964		5,858		—
RON		BRC	02/10/15		267,238		74,700		72,107		2,593		—
RON		JPM	02/10/15		267,238		74,700		72,107		2,593		—
RON		SCB	02/10/15		267,238		74,725		72,107		2,618		—
RON		UBS	02/10/15		267,238		74,754		72,107		2,647		—
SGD		BRC	01/12/15		2,261,720		1,723,872		1,707,089		16,783		—
SGD		CIT	01/20/15		1,794,017		1,355,561		1,353,789		1,772		—
SGD		HSB	01/20/15		861,129		650,547		649,819		728		—
SGD		JPM	01/12/15		2,261,721		1,723,807		1,707,090		16,717		—
SGD		SCB	01/12/15		2,261,721		1,723,741		1,707,090		16,651		—
SGD		SCB	01/20/15		1,093,446		826,703		825,129		1,574		—
SGD		UBS	01/12/15		2,261,721		1,724,661		1,707,090		17,571		—
THB		BRC	01/12/15		57,540,170		1,746,324		1,748,388		—		2,064
THB		JPM	01/20/15		36,554,617		1,100,943		1,110,263		—		9,320
THB		SCB	01/20/15		26,840,677		808,455		815,225		—		6,770
THB		UBS	01/20/15		235,105		7,091		7,141		—		50
TRY		BRC	01/20/15		2,004,385		850,000		854,911		—		4,911
TRY		SCB	01/12/15		443,935		190,000		189,707		293		—
TRY		SCB	01/20/15		951,528		410,000		405,846		4,154		—
TRY		SCB	01/20/15		2,003,535		850,000		854,548		—		4,548
TWD		CIT	01/20/15		38,860,731		1,244,858		1,229,762		15,096		—
TWD		SCB	01/20/15		38,860,731		1,244,619		1,229,763		14,856		—
ZAR		BRC	01/12/15		1,741,883		150,000		150,413		—		413
ZAR		UBS	01/12/15		3,594,951		319,989		310,426		9,563		—
Total Forward Currency Sale Contracts						$	72,203,122	$	71,698,879		757,758		253,515
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts										$	891,378	$	1,052,065

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

Annual Report 61

Lazard Explorer Total Return Portfolio (concluded)

Credit Default Swap Agreements open at December 31, 2014:

Referenced Obligation	Counterparty		Notional Amount	Expiration Date	Receive (Pay) Rate			Value			Upfront Premiums Paid (Received)			Unrealized Depreciation

CDX EM 22		BRC	3,700,000	12/20/19		(1.000	)%	$	386,219		$	506,900		$	120,681
CDX EM 22		BRC	3,700,000	12/20/19		(1.000	)		386,219			512,450			126,231
Republic of Brazil		BRC	1,350,000	12/20/19		1.000			(58,575	)		(44,468	)		14,107
Republic of Brazil		BRC	2,650,000	12/20/19		1.000			(114,982	)		(87,290	)		27,692
Republic of Brazil		BRC	2,050,000	12/20/19		1.000			(88,948	)		(64,681	)		24,267
Republic of Brazil		JPM	3,650,000	12/20/19		1.000			(158,371	)		(120,228	)		38,143
Republic of Brazil		JPM	1,725,000	12/20/19		1.000			(74,847	)		(53,632	)		21,215
Republic of Brazil		BRC	1,350,000	12/20/19		1.000			(58,576	)		(44,469	)		14,107
Republic of Brazil		BRC	5,550,000	12/20/19		(1.000	)		579,328			860,250			280,922
Total Credit Default Swap Agreements								$	797,467		$	1,464,832		$	667,365

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

62 Annual Report


The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2014

(a)	Non-income producing security.
(b)	Security valued using Level 2 inputs, based on reference to a similar security from the same issuer which was trading on an active market, under accounting principles generally accepted in the United States of America (“GAAP”) hierarchy – see Note 9.
(c)	Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers”, and are considered to be liquid at December 31, 2014. The percentage of net assets for each Portfolio was as follows:

Portfolio	Percentage of Net Assets

Emerging Markets Equity		1.1	%
Emerging Markets Core Equity		0.3
Emerging Markets Equity Blend		0.5
Emerging Markets Multi Asset		6.4
Emerging Markets Debt		9.6
Emerging Markets Income		0.9
Explorer Total Return		20.0

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

			Aggregate Gross		Aggregate Gross
	Aggregate		Unrealized		Unrealized		Net Unrealized
Portfolio	Cost		Appreciation		Depreciation		Depreciation

Emerging Markets Equity	$	13,969,334,373	$	2,169,876,012	$	2,472,641,924	$	(302,765,912	)
Emerging Markets Core Equity		45,541,066		2,818,545		4,272,368		(1,453,823	)
Developing Markets Equity		499,949,136		45,874,638		109,155,349		(63,280,711	)
Emerging Markets Equity Blend		638,230,985		56,956,053		114,761,952		(57,805,899	)
Emerging Markets Multi Asset		213,083,373		8,010,012		23,380,474		(15,370,462	)
Emerging Markets Debt		349,944,723		1,650,821		22,343,452		(20,692,631	)
Emerging Markets Income		5,731,998		204		115,288		(115,084	)
Explorer Total Return		143,282,124		925,864		6,606,579		(5,680,715	)

(e)	Step up bonds are securities which increase the interest payment rate at a specified point in time. Rate shown reflects rate in effect at December 31, 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.
(g)	Date shown is the next perpetual call date.

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

Annual Report 63

Security Abbreviations:
ADR	— American Depositary Receipt	NTN-B	— Brazil Sovereign “Nota do Tesouro Nacional” Series B
ADS	— American Depositary Shares	NTN-F	— Brazil Sovereign “Nota do Tesouro Nacional” Series F
GDR	— Global Depositary Receipt	REIT	— Real Estate Investment Trust
OJSC	— Open Joint Stock Company	SDR	— Swedish Depositary Receipt
PJSC	— Public Joint Stock Company

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

Counterparty Abbreviations:
BNP	— BNP Paribas SA	HSB	— HSBC Bank USA NA
BOA	— Bank of America NA	JPM	— JPMorgan Chase Bank NA
BRC	— Barclays Bank PLC	SCB	— Standard Chartered Bank
CIT	— Citibank NA	UBS	— UBS AG

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

64 Annual Report

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

				Lazard						Lazard
	Lazard			Emerging			Lazard			Emerging			Lazard			Lazard
	Emerging			Markets			Developing			Markets			Emerging			Emerging
	Markets			Core			Markets			Equity			Markets			Markets
	Equity			Equity			Equity			Blend			Multi Asset			Debt
Industry*	Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Portfolio

Agriculture		—	%		0.5	%		—	%		0.6	%		0.3	%		—	%
Alcohol & Tobacco		4.1			—			—			2.2			1.2			—
Apparel & Textiles		—			1.4			—			0.4			0.2			—
Auto Components		—			—			1.4			—			—			—
Automotive		1.9			2.5			3.9			2.6			1.5			—
Banking		21.8			20.4			20.8			20.0			12.4			1.8
Cable Television		—			1.3			—			—			—			—
Chemicals		1.0			—			—			—			0.3			—
Commercial Services		3.2			3.3			2.0			2.4			1.3			—
Computer Software		4.6			3.6			4.0			6.1			3.6			0.2
Construction & Engineering		—			—			2.4			1.2			0.8			0.3
Construction Materials		—			2.0			3.5			1.6			0.9			—
Consumer Products		0.2			2.5			2.6			1.6			0.9			—
Diamonds & Precious Stones		—			—			—			—			0.2			—
Diversified		1.4			0.8			—			1.6			0.8			0.1
Electric		0.7			0.8			—			—			0.5			1.1
Energy Exploration & Production		4.4			1.0			0.7			2.0			2.1			1.0
Energy Integrated		3.9			1.0			5.0			5.5			3.8			1.2
Energy Services		0.5			0.5			1.4			0.5			1.5			0.4
Financial Services		3.1			2.0			3.2			3.3			2.6			0.7
Food & Beverages		1.5			1.1			—			0.6			0.3			0.3
Forest & Paper Products		—			2.1			—			1.2			0.8			0.4
Gas Utilities		—			0.8			—			—			0.3			0.5
Household & Personal Products		2.5			—			—			0.9			0.5			—
Housing		1.5			2.5			—			0.1			0.1			—
Insurance		3.6			3.2			2.5			2.4			1.2			—
Leisure & Entertainment		1.1			3.5			4.4			4.6			2.5			—
Manufacturing		3.8			4.5			10.7			5.8			3.1			—
Media		—			—			—			—			0.3			0.7
Metals & Mining		2.2			—			3.5			0.9			0.5			—
Pharmaceutical & Biotechnology		—			4.0			6.2			2.2			1.2			—
Real Estate		—			1.1			1.7			1.9			1.4			0.1
Retail		4.8			5.7			2.7			3.9			2.4			0.5
Semiconductors & Components		9.0			14.5			11.5			11.0			6.1			—
Technology		3.0			—			—			0.5			0.3			—
Technology Hardware		1.0			2.9			—			1.8			0.9			—
Telecommunications		10.1			4.2			—			5.4			3.5			0.3
Transportation		2.5			3.5			4.5			2.5			1.8			1.1
Subtotal		97.4			97.2			98.6			97.3			62.1			10.7
Foreign Government Obligations		—			—			—			—			18.3			79.1
US Treasury Securities		—			—			—			—			8.3			—
Short-Term Investments		2.9			0.6			—			1.6			12.4			10.8
Total Investments		100.3	%		97.8	%		98.6	%		98.9	%		101.1	%		100.6	%

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

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

Annual Report 65

	Lazard
	Explorer
	Total
	Return
Industry*	Portfolio

Banking		5.5	%
Chemicals		0.9
Computer Software		0.9
Construction & Engineering		1.1
Construction Materials		0.4
Diamonds & Precious Stones		0.6
Electric		1.3
Energy Exploration & Production		4.3
Energy Integrated		3.0
Energy Services		4.7
Financial Services		2.7
Forest & Paper Products		0.3
Gas utilities		0.9
Media		1.1
Real Estate		1.1
Retail		0.9
Telecommunications		1.8
Transportation		1.9
Subtotal		33.4
Foreign Government Obligations		50.9
Short-Term Investment		13.6
Total Investments		97.9	%

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

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

66 Annual Report

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Annual Report 67

The Lazard Funds, Inc. Statements of Assets and Liabilities


	Lazard			Lazard Emerging			Lazard
	Emerging Markets			Markets Core			Developing Markets
December 31, 2014	Equity Portfolio			Equity Portfolio			Equity Portfolio


ASSETS
Investments in securities, at value	$	13,666,568,461		$	44,087,243		$	436,668,425
Cash		—			—			—
Cash at other bank		—			—			—
Foreign currency		424,546			857			1,867,293
Receivables for:
Capital stock sold		34,634,441			667,970			2,727,058
Dividends and interest		4,603,561			7,920			241,078
Investments sold		3,211,751			409,438			7,969,921
Amount due from Investment Manager (Note 3)		—			—			—
Gross unrealized appreciation on forward currency contracts		—			—			—
Premium for swap agreements purchased		—			—			—
Deferred offering costs (Note 2(h))		—			—			—
Total assets		13,709,442,760			45,173,428			449,473,775

LIABILITIES
Due to broker		—			—			—
Due to custodian		—			—			—
Payables for:
Management fees		11,920,644			20,040			396,770
Accrued distribution fees		323,411			1,098			3,641
Accrued directors’ fees		1,974			4			72
Capital stock redeemed		56,157,084			—			3,697,841
Investments purchased		7,492,186			705			23,199
Dividends		—			—			—
Gross unrealized depreciation on:
Forward currency contracts		—			—			—
Swap agreements		—			—			—
Line of credit outstanding		—			—			2,100,000
Premium for swap agreements written		—			—			—
Other accrued expenses and payables		2,306,076			52,904			376,037
Total liabilities		78,201,375			74,751			6,597,560
Net assets	$	13,631,241,385		$	45,098,677		$	442,876,215

NET ASSETS
Paid in capital	$	13,890,147,545		$	46,693,092		$	573,346,239
Distributions in excess of net investment income		(947,337	)		(305,533	)		(1,853,267	)
Accumulated net realized loss		(8,755,569	)		(282,254	)		(81,006,786	)
Net unrealized appreciation (depreciation) on:
Investments		(249,206,847	)		(1,006,580	)		(47,601,638	)
Foreign currency and forward currency contracts		3,593			(48	)		(8,333	)
Swap agreements		—			—			—
Net assets	$	13,631,241,385		$	45,098,677		$	442,876,215

Institutional Shares
Net assets	$	12,156,644,568		$	39,832,384		$	426,847,254
Shares of capital stock outstanding*		707,314,715			4,141,159			40,927,103
Net asset value, offering and redemption price per share	$	17.19		$	9.62		$	10.43

Open Shares
Net assets	$	1,474,596,817		$	5,266,293		$	16,028,961
Shares of capital stock outstanding*		83,551,356			547,633			1,536,338
Net asset value, offering and redemption price per share	$	17.65		$	9.62		$	10.43

Cost of investments in securities	$	13,915,775,308		$	45,093,823		$	484,042,811
Cost of foreign currency	$	424,562		$	857		$	1,867,293

* $0.001 par value, 6,450,000,000 shares authorized for the Portfolios in total.

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

68 Annual Report


Lazard Emerging			Lazard			Lazard			Lazard			Lazard Explorer
Markets Equity			Emerging Markets			Emerging Markets			Emerging Markets			Total Return
Blend Portfolio			Multi Asset Portfolio			Debt Portfolio			Income Portfolio			Portfolio


$	580,425,086		$	197,712,911		$	329,252,092		$	5,616,914		$	137,601,409
	66,783			79,812			—			—			359,701
	—			20,000			—			—			—
	703			592,063			1,952,055			3,844			661,508

	4,292,980			144,436			6,503,107			—			514,020
	243,893			983,030			5,094,912			32,418			1,867,518
	4,650,955			2,364,501			489,971			—			1,494,011
	—			—			—			1,891			—
	—			620,919			—			42,011			891,378
	—			415,400			—			—			1,464,832
	—			—			—			15,249			—
	589,680,400			202,933,072			343,292,137			5,712,327			144,854,377

	—			—			—			—			370,000
	—			—			233,294			—			—

	579,471			165,571			210,641			—			140,115
	26,788			278			450			29			1,568
	89			34			36			1			18
	1,653,683			67,594			132,045			—			905,780
	293,523			5,910,105			15,358,378			502,720			1,006,044
	—			—			3,529			—			3,306

	—			789,445			—			53,977			1,052,065
	—			202,248			—			—			667,365
	—			—			—			—			—
	—			—			—			—			48
	327,540			148,240			82,561			37,947			84,831
	2,881,094			7,283,515			16,020,934			594,674			4,231,140
$	586,799,306		$	195,649,557		$	327,271,203		$	5,117,653		$	140,623,237

$	644,892,607		$	216,629,639		$	374,500,123		$	5,485,775		$	151,041,043
	(2,487,458	)		(833,010	)		(7,976,969	)		(233,396	)		(31,503	)
	(9,871,574	)		(7,779,796	)		(22,706,315	)		(6,796	)		(3,907,791	)

	(45,733,952	)		(11,984,096	)		(16,205,879	)		(114,461	)		(5,637,014	)
	(317	)		(180,932	)		(339,757	)		(13,469	)		(174,133	)
	—			(202,248	)		—			—			(667,365	)
$	586,799,306		$	195,649,557		$	327,271,203		$	5,117,653		$	140,623,237

$	463,043,198		$	194,451,382		$	326,164,682		$	4,985,230		$	133,472,851
	46,286,681			22,650,250			36,913,195			544,226			14,321,463
$	10.00		$	8.58		$	8.84		$	9.16		$	9.32

$	123,756,108		$	1,198,175		$	1,106,521		$	132,423		$	7,150,386
	12,384,807			139,329			124,131			14,487			763,194
$	9.99		$	8.60		$	8.91		$	9.14		$	9.37

$	626,066,942		$	209,673,885		$	345,457,971		$	5,731,375		$	143,238,423
$	719		$	594,656		$	2,150,646		$	3,859		$	670,663

Annual Report 69

The Lazard Funds, Inc. Statements of Operations


	Lazard			Lazard Emerging			Lazard
	Emerging Markets			Markets Core			Developing Markets
For the Period Ended December 31, 2014	Equity Portfolio			Equity Portfolio			Equity Portfolio


Investment Income
Income
Dividends	$	457,131,900		$	452,030		$	10,563,978
Interest		5,128			5			464
Total investment income*		457,137,028			452,035			10,564,442

Expenses
Management fees (Note 3)		148,988,545			293,507			5,272,824
Custodian fees		9,204,890			127,830			568,998
Distribution fees (Open Shares)		4,786,128			8,520			82,483
Administration fees		1,639,887			55,957			155,458
Shareholders’ reports		1,308,476			16,516			91,071
Shareholders’ services		1,046,066			26,331			54,049
Directors’ fees and expenses		418,101			790			14,866
Professional services		280,663			35,332			63,564
Registration fees		91,645			40,222			55,347
Amortization of offering costs (Note 2(h))		—			79,823			—
Organization expenses		—			—			—
Other†		275,834			1,974			15,144
Total gross expenses		168,040,235			686,802			6,373,804
Management fees waived and expenses reimbursed		—			(280,801	)		—
Administration and shareholders’ services fees waived		—			(14,218	)		—
Total net expenses		168,040,235			391,783			6,373,804
Net investment income		289,096,793			60,252			4,190,638

Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Forward Currency Contracts, Options and Swap Agreements
Net realized gain (loss) on:
Investments**		209,327,631			(253,317	)		(9,802,612	)
Foreign currency and forward currency contracts		(4,901,722	)		(17,292	)		(343,226	)
Purchased options		—			—			—
Written options		—			—			—
Swap agreements		—			—			—
Total net realized gain (loss) on investments, foreign currency, forward currency contracts, options and swap agreements		204,425,909			(270,609	)		(10,145,838	)
Net change in unrealized appreciation (depreciation) on:
Investments***		(1,138,568,133	)		(974,212	)		(50,308,170	)
Foreign currency and forward currency contracts		74,774			160			(86,512	)
Purchased options		—			—			—
Written options		—			—			—
Swap agreements		—			—			—
Total net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts, options and swap agreements		(1,138,493,359	)		(974,052	)		(50,394,682	)
Net realized and unrealized loss on investments, foreign currency, forward currency contracts, options and swap agreements		(934,067,450	)		(1,244,661	)		(60,540,520	)
Net decrease in net assets resulting from operations	$	(644,970,657	)	$	(1,184,409	)	$	(56,349,882	)
* Net of foreign withholding taxes of	$	53,043,172		$	63,991		$	1,013,073
** Net of foreign capital gains taxes of	$	—		$	—		$	965,638
*** Includes net change in unrealized foreign capital gains taxes of	$	—		$	—		$	(195,984	)
† Includes interest on line of credit of	$	100		$	247		$	815

(a)

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

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

70 Annual Report


Lazard Emerging			Lazard			Lazard			Lazard			Lazard Explorer
Markets Equity			Emerging Markets			Emerging Markets			Emerging Markets			Total Return
Blend Portfolio			Multi Asset Portfolio			Debt Portfolio			Income Portfolio (a)			Portfolio


$	17,213,394		$	3,821,378		$	—		$	—		$	—
	125			3,904,154			19,620,377			35,629			6,547,245
	17,213,519			7,725,532			19,620,377			35,629			6,547,245

	6,637,063			2,460,060			2,572,189			23,225			1,362,043
	537,937			427,662			261,350			38,036			170,708
	337,117			4,620			6,704			283			16,373
	183,743			99,203			114,306			33,214			77,242
	180,777			33,348			8,617			54			11,783
	931,983			28,752			27,273			19,670			27,740
	18,630			6,930			9,051			108			3,742
	52,343			58,864			56,075			41,710			47,918
	74,526			44,920			42,238			1,812			48,782
	—			—			—			31,137			31,410
	—			—			—			3,998			—
	16,763			8,925			16,744			833			6,381
	8,970,882			3,173,284			3,114,547			194,080			1,804,122
	(35,913	)		(11,782	)		(11,014	)		(136,885	)		(100,048	)
	—			—			—			(24,700	)		—
	8,934,969			3,161,502			3,103,533			32,495			1,704,074
	8,278,550			4,564,030			16,516,844			3,134			4,843,171

	4,646,435			(4,031,837	)		(32,188,574	)		(93,511	)		(2,007,553	)
	(537,586	)		(431,509	)		(1,368,643	)		(256,781	)		1,836,194
	—			(208,792	)		—			—			(122,831	)
	—			62,824			—			—			40,430
	—			(746,327	)		(99,364	)		—			(1,044,086	)

	4,108,849			(5,355,641	)		(33,656,581	)		(350,292	)		(1,297,846	)

	(67,687,245	)		(10,000,498	)		4,601,768			(114,461	)		(5,505,711	)
	(1,645	)		(303,541	)		(38,881	)		(13,469	)		(199,600	)
	—			22,374			—			—			11,516
	—			(9,268	)		—			—			(4,778	)
	—			(169,562	)		57,579			—			(653,670	)

	(67,688,890	)		(10,460,495	)		4,620,466			(127,930	)		(6,352,243	)

	(63,580,041	)		(15,816,136	)		(29,036,115	)		(478,222	)		(7,650,089	)
$	(55,301,491	)	$	(11,252,106	)	$	(12,519,271	)	$	(475,088	)	$	(2,806,918	)
$	1,994,118		$	448,195		$	141,536		$	179		$	8,652
$	226,252		$	60,303		$	86,019		$	—		$	31,182
$	(55,319	)	$	(15,677	)	$	—		$	—		$	—
$	1,207		$	—		$	9,804		$	—		$	—

Annual Report 71

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

	Lazard Emerging Markets Equity Portfolio						Lazard Emerging Markets Core Equity Portfolio
	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2014			Period Ended December 31, 2013 (a)

Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	289,096,793		$	273,165,341		$	60,252		$	(3,265	)
Net realized gain (loss) on investments, foreign currency, forward currency contracts, options and swap agreements		204,425,909			531,013,357			(270,609	)		(9,795	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts, options and swap agreements		(1,138,493,359	)		(956,860,842	)		(974,052	)		(32,576	)
Net increase (decrease) in net assets resulting from operations		(644,970,657	)		(152,682,144	)		(1,184,409	)		(45,636	)
Distributions to shareholders
From net investment income
Institutional Shares		(260,208,938	)		(236,363,963	)		(325,319	)		—
Open Shares		(26,512,068	)		(34,411,449	)		(42,737	)		—
From net realized gains
Institutional Shares		(242,338,939	)		(234,585,584	)		—			—
Open Shares		(31,751,273	)		(39,932,177	)		—			—
From return of capital
Institutional Shares		—			—			(17,144	)		—
Open Shares		—			—			(2,252	)		—
Net decrease in net assets resulting from distributions		(560,811,218	)		(545,293,173	)		(387,452	)		—
Capital stock transactions
Net proceeds from sales
Institutional Shares		2,785,687,244			2,706,382,404			41,489,162			3,306,150
Open Shares		291,205,135			483,346,726			6,581,493			631,900
Net proceeds from reinvestment of distributions
Institutional Shares		443,622,509			407,264,634			166,092			—
Open Shares		53,741,798			68,063,916			34,510			—
Cost of shares redeemed
Institutional Shares		(2,660,246,028	)		(3,149,583,032	)		(4,037,695	)		—
Open Shares		(975,340,501	)		(860,419,457	)		(1,455,720	)		—
Net increase (decrease) in net assets from capital stock transactions		(61,329,843	)		(344,944,809	)		42,777,842			3,938,050
Redemption fees (Note 2(j))
Institutional Shares		67,217			120,271			—			—
Open Shares		27,027			43,929			282			—
Net increase in net assets from redemption fees		94,244			164,200			282			—
Total increase (decrease) in net assets		(1,267,017,474	)		(1,042,755,926	)		41,206,263			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*	$	13,631,241,385		$	14,898,258,859		$	45,098,677		$	3,892,414
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	(947,337	)	$	(9,501,570	)	$	(305,533	)	$	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		145,475,699			141,386,244			4,182,945			332,077
Shares issued to shareholders from reinvestment of distributions		24,766,476			21,872,427			17,247			—
Shares redeemed		(142,876,066	)		(164,630,123	)		(391,110	)		—
Net increase (decrease)		27,366,109			(1,371,452	)		3,809,082			332,077
Shares outstanding at end of period		707,314,715			679,948,606			4,141,159			332,077

Open Shares
Shares outstanding at beginning of period		115,276,325			131,100,773			63,785			—
Shares sold		14,950,480			24,934,405			629,779			63,785
Shares issued to shareholders from reinvestment of distributions		2,898,847			3,563,556			3,584			—
Shares redeemed		(49,574,296	)		(44,322,409	)		(149,515	)		—
Net increase (decrease)		(31,724,969	)		(15,824,448	)		483,848			63,785
Shares outstanding at end of period		83,551,356			115,276,325			547,633			63,785

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

72 Annual Report

Lazard Developing Markets Equity Portfolio						Lazard Emerging Markets Equity Blend Portfolio						Lazard Emerging Markets Multi Asset Portfolio
Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2014			Year Ended December 31, 2013

$	4,190,638		$	5,654,470		$	8,278,550		$	3,953,374		$	4,564,030		$	2,801,719

	(10,145,838	)		(34,528,149	)		4,108,849			4,223,904			(5,355,641	)		(448,820	)

	(50,394,682	)		(4,818,260	)		(67,688,890	)		7,112,980			(10,460,495	)		(7,606,368	)
	(56,349,882	)		(33,691,939	)		(55,301,491	)		15,290,258			(11,252,106	)		(5,253,469	)

	(7,086,749	)		(4,798,138	)		(9,413,910	)		(3,158,179	)		(3,815,304	)		(2,402,373	)
	(205,797	)		(285,615	)		(2,397,601	)		(410,880	)		(29,024	)		(15,930	)

	—			—			—			(2,203,505	)		—			(1,809,888	)
	—			—			—			(546,763	)		—			(18,185	)

	—			—			(142,329	)		(422,052	)		(106,077	)		—
	—			—			(36,249	)		(93,652	)		(807	)		—
	(7,292,546	)		(5,083,753	)		(11,990,089	)		(6,835,031	)		(3,951,212	)		(4,246,376	)

	202,079,783			515,114,543			190,763,944			324,373,920			96,895,257			177,382,688
	9,912,568			38,771,277			63,704,064			95,445,912			684,542			1,691,237

	6,212,668			3,537,756			9,543,351			5,614,997			3,520,615			4,175,631
	199,401			278,492			2,136,896			1,015,931			19,974			33,777

	(278,284,304	)		(269,124,935	)		(163,324,467	)		(60,435,685	)		(114,168,186	)		(73,799,795	)
	(36,645,367	)		(79,894,455	)		(46,084,987	)		(16,286,690	)		(1,612,316	)		(350,332	)

	(96,525,251	)		208,682,678			56,738,801			349,728,385			(14,660,114	)		109,133,206

	3,357			5,763			2,907			1,228			127			2,748
	912			3,932			1,263			3,042			—			45
	4,269			9,695			4,170			4,270			127			2,793
	(160,163,410	)		169,916,681			(10,548,609	)		358,187,882			(29,863,305	)		99,636,154
	603,039,625			433,122,944			597,347,915			239,160,033			225,512,862			125,876,708
$	442,876,215		$	603,039,625		$	586,799,306		$	597,347,915		$	195,649,557		$	225,512,862

$	(1,853,267	)	$	(1,096,911	)	$	(2,487,458	)	$	(253,590	)	$	(833,010	)	$	(258,018	)

	47,319,142			27,400,813			42,827,110			17,598,261			24,076,955			12,889,497
	17,759,739			42,879,227			17,480,521			30,159,744			10,602,139			18,526,941
	599,100			309,847			947,701			508,158			408,898			453,554
	(24,750,878	)		(23,270,745	)		(14,968,651	)		(5,439,053	)		(12,437,742	)		(7,793,037	)
	(6,392,039	)		19,918,329			3,459,571			25,228,849			(1,426,705	)		11,187,458
	40,927,103			47,319,142			46,286,681			42,827,110			22,650,250			24,076,955

	3,753,626			7,527,776			10,619,862			3,291,977			235,128			88,344
	858,092			3,255,977			5,700,656			8,715,275			73,889			180,332
	19,210			24,696			212,415			92,147			2,317			3,661
	(3,094,590	)		(7,054,823	)		(4,148,126	)		(1,479,537	)		(172,005	)		(37,209	)
	(2,217,288	)		(3,774,150	)		1,764,945			7,327,885			(95,799	)		146,784
	1,536,338			3,753,626			12,384,807			10,619,862			139,329			235,128

Annual Report 73

	Lazard Emerging Markets Debt Portfolio						Lazard Emerging Markets Income Portfolio
	Year Ended December 31, 2014			Year Ended December 31, 2013			Period Ended December 31, 2014 (a)

Increase (Decrease) in Net Assets
Operations
Net investment income	$	16,516,844		$	17,700,797		$	3,134
Net realized loss on investments, foreign currency, forward currency contracts, options and swap agreements		(33,656,581	)		(7,516,682	)		(350,292	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts, options and swap agreements		4,620,466			(36,766,653	)		(127,930	)
Net increase (decrease) in net assets resulting from operations		(12,519,271	)		(26,582,538	)		(475,088	)

Distributions to shareholders
From net investment income
Institutional Shares		(4,871,679	)		(18,161,914	)		—
Open Shares		(40,972	)		(368,559	)		—
From net realized gains
Institutional Shares		—			(1,415,923	)		—
Open Shares		—			(34,825	)		—
From return of capital
Institutional Shares		(12,190,985	)		—			—
Open Shares		(102,530	)		—			—
Net decrease in net assets resulting from distributions		(17,206,166	)		(19,981,221	)		—

Capital stock transactions
Net proceeds from sales
Institutional Shares		168,311,344			248,473,336			5,545,100
Open Shares		342,520			16,272,148			207,700
Net proceeds from reinvestment of distributions
Institutional Shares		16,698,576			19,325,779			—
Open Shares		123,828			204,596			—
Cost of shares redeemed
Institutional Shares		(275,457,957	)		(62,619,877	)		(99,405	)
Open Shares		(8,512,593	)		(6,906,202	)		(60,654	)
Net increase (decrease) in net assets from capital stock transactions		(98,494,282	)		214,749,780			5,592,741

Redemption fees (Note 2(j))
Institutional Shares		713			1,881			—
Open Shares		1			1,433			—
Net increase in net assets from redemption fees		714			3,314			—
Total increase (decrease) in net assets		(128,219,005	)		168,189,335			5,117,653
Net assets at beginning of period		455,490,208			287,300,873			—
Net assets at end of period*	$	327,271,203		$	455,490,208		$	5,117,653
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	(7,976,969	)	$	761,011		$	(233,396	)
(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		17,837,703			24,786,865			554,137
Shares issued to shareholders from reinvestment of distributions		1,742,981			1,940,134			—
Shares redeemed		(29,466,408	)		(6,297,973	)		(9,911	)
Net increase (decrease)		(9,885,724	)		20,429,026			544,226
Shares outstanding at end of period		36,913,195			46,798,919			544,226

Open Shares
Shares outstanding at beginning of period		971,317			104,581			—
Shares sold		35,334			1,540,715			20,680
Shares issued to shareholders from reinvestment of distributions		12,870			20,295			—
Shares redeemed		(895,390	)		(694,274	)		(6,193	)
Net increase (decrease)		(847,186	)		866,736			14,487
Shares outstanding at end of period		124,131			971,317			14,487

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

74 Annual Report

Lazard Explorer Total Return Portfolio
Year Ended December 31, 2014			Period Ended December 31, 2013 (b)

$	4,843,171		$	352,502

	(1,297,846	)		(16,103	)

	(6,352,243	)		(126,269	)
	(2,806,918	)		210,130

	(6,931,869	)		(437,344	)
	(346,247	)		(14,641	)

	(86,593	)		—
	(4,325	)		—

	(233,009	)		—
	(11,639	)		—
	(7,613,682	)		(451,985	)

	165,082,565			31,641,433
	5,800,920			2,671,855

	7,234,199			437,142
	304,315			14,480

	(60,293,265	)		(401,268	)
	(1,199,825	)		(7,454	)

	116,928,909			34,356,188

	584			—
	11			—
	595			—
	106,508,904			34,114,333
	34,114,333			—
$	140,623,237		$	34,114,333

$	(31,503	)	$	(52,320	)

	3,190,427			—
	16,663,479			3,186,789
	751,650			44,125
	(6,284,093	)		(40,487	)
	11,131,036			3,190,427
	14,321,463			3,190,427

	269,801			—
	584,641			269,085
	31,480			1,463
	(122,728	)		(747	)
	493,393			269,801
	763,194			269,801

Annual Report 75

The Lazard Funds, Inc. Financial Highlights

LAZARD EMERGING MARKETS EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Institutional Shares
Net asset value, beginning of year	$	18.67		$	19.54		$	16.80		$	21.78		$	18.01
Income (loss) from investment operations:
Net investment income (a)		0.37			0.35			0.35			0.49			0.38
Net realized and unrealized gain (loss)		(1.13	)		(0.51	)		3.39			(4.36	)		3.71
Total from investment operations		(0.76	)		(0.16	)		3.74			(3.87	)		4.09
Less distributions from:
Net investment income		(0.37	)		(0.36	)		(0.36	)		(0.63	)		(0.32	)
Net realized gains		(0.35	)		(0.35	)		(0.64	)		(0.48	)		—
Total distributions		(0.72	)		(0.71	)		(1.00	)		(1.11	)		(0.32	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	17.19		$	18.67		$	19.54		$	16.80		$	21.78

Total Return (c)		–4.16	%		–0.80	%		22.36	%		–17.75	%		22.81	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	12,156,645		$	12,691,329		$	13,315,172		$	10,902,557		$	14,561,085
Ratios to average net assets:
Net expenses		1.09	%		1.09	%		1.10	%		1.12	%		1.14	%
Gross expenses		1.09	%		1.09	%		1.10	%		1.12	%		1.14	%
Net investment income		1.97	%		1.80	%		1.85	%		2.44	%		1.96	%
Portfolio turnover rate		12	%		16	%		23	%		23	%		23	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Open Shares
Net asset value, beginning of year	$	19.14		$	20.03		$	17.20		$	22.19		$	18.28
Income (loss) from investment operations:
Net investment income (a)		0.34			0.30			0.30			0.49			0.34
Net realized and unrealized gain (loss)		(1.16	)		(0.53	)		3.47			(4.50	)		3.76
Total from investment operations		(0.82	)		(0.23	)		3.77			(4.01	)		4.10
Less distributions from:
Net investment income		(0.32	)		(0.31	)		(0.30	)		(0.50	)		(0.19	)
Net realized gains		(0.35	)		(0.35	)		(0.64	)		(0.48	)		—
Total distributions		(0.67	)		(0.66	)		(0.94	)		(0.98	)		(0.19	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	17.65		$	19.14		$	20.03		$	17.20		$	22.19

Total Return (c)		–4.39	%		–1.14	%		22.03	%		–18.02	%		22.43	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	1,474,597		$	2,206,930		$	2,625,843		$	2,731,646		$	4,187,207
Ratios to average net assets:
Net expenses		1.37	%		1.37	%		1.40	%		1.42	%		1.49	%
Gross expenses		1.37	%		1.37	%		1.40	%		1.42	%		1.49	%
Net investment income		1.76	%		1.55	%		1.58	%		2.18	%		1.73	%
Portfolio turnover rate		12	%		16	%		23	%		23	%		23	%

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

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

76 Annual Report

LAZARD EMERGING MARKETS CORE EQUITY PORTFOLIO

					For the Period
Selected data for a share of capital	Year Ended				10/31/13* to
stock outstanding throughout each period	12/31/14				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)			0.03				(0.01	)
Net realized and unrealized loss			(0.15	)			(0.16	)
Total from investment operations			(0.12	)			(0.17	)
Less distributions from:
Net investment income			(0.08	)			—
Return of capital			(0.01	)			—
Total distributions			(0.09	)			—
Net asset value, end of period		$	9.62			$	9.83

Total Return (b)			–1.25	%			–1.70	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	39,832			$	3,265
Ratios to average net assets (c):
Net expenses			1.30	%			1.30	%
Gross expenses			2.28	%			24.66	%
Net investment income (loss)			0.28	%			–0.71	%
Portfolio turnover rate			45	%			12	%

					For the Period
Selected data for a share of capital	Year Ended				10/31/13* to
stock outstanding throughout each period	12/31/14				12/31/13

Open Shares
Net asset value, beginning of period		$	9.83			$	10.00
Income from investment operations:
Net investment loss (a)			(0.04	)			(0.01	)
Net realized and unrealized loss			(0.11	)			(0.16	)
Total from investment operations			(0.15	)			(0.17	)
Less distributions from:
Net investment income			(0.05	)			—
Return of capital			(0.01	)			—
Total distributions			(0.06	)			—
Redemption fees			—	(d)			—
Net asset value, end of period		$	9.62			$	9.83

Total Return (b)			–1.56	%			–1.70	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	5,266			$	627
Ratios to average net assets (c):
Net expenses			1.60	%			1.60	%
Gross expenses			2.81	%			30.92	%
Net investment loss			–0.35	%			–0.90	%
Portfolio turnover rate			45	%			12	%

*	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.

Annual Report 77

LAZARD DEVELOPING MARKETS EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/14/14			12/31/13			12/31/12			12/31/11			12/31/10

Institutional Shares
Net asset value, beginning of year	$	11.81		$	12.40		$	10.68		$	15.12		$	13.18
Income (loss) from investment operations:
Net investment income (a)		0.09			0.11			0.09			0.06			0.02
Net realized and unrealized gain (loss)		(1.30	)		(0.60	)		1.74			(4.00	)		3.63
Total from investment operations		(1.21	)		(0.49	)		1.83			(3.94	)		3.65
Less distributions from:
Net investment income		(0.17	)		(0.10	)		(0.11	)		—			(0.09	)
Net realized gains		—			—			—			(0.50	)		(1.62	)
Total distributions		(0.17	)		(0.10	)		(0.11	)		(0.50	)		(1.71	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	10.43		$	11.81		$	12.40		$	10.68		$	15.12

Total Return (c)		–10.27	%		–3.90	%		17.16	%		–26.15	%		28.62	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	426,847		$	558,716		$	339,771		$	160,441		$	72,798
Ratios to average net assets:
Net expenses		1.19	%		1.17	%		1.21	%		1.30	%		1.30	%
Gross expenses		1.19	%		1.17	%		1.21	%		1.30	%		1.67	%
Net investment income		0.80	%		0.96	%		0.74	%		0.45	%		0.15	%
Portfolio turnover rate		57	%		48	%		61	%		68	%		112	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Open Shares
Net asset value, beginning of year	$	11.81		$	12.40		$	10.68		$	15.16		$	13.19
Income (loss) from investment operations:
Net investment income (loss) (a)		0.08			0.11			0.05			0.01			(0.05	)
Net realized and unrealized gain (loss)		(1.33	)		(0.63	)		1.74			(3.99	)		3.65
Total from investment operations		(1.25	)		(0.52	)		1.79			(3.98	)		3.60
Less distributions from:
Net investment income		(0.13	)		(0.07	)		(0.07	)		—			(0.01	)
Net realized gains		—			—			—			(0.50	)		(1.62	)
Total distributions		(0.13	)		(0.07	)		(0.07	)		(0.50	)		(1.63	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	10.43		$	11.81		$	12.40		$	10.68		$	15.16

Total Return (c)		–10.57	%		–4.18	%		16.79	%		–26.34	%		28.13	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	16,029		$	44,324		$	93,352		$	63,415		$	101,584
Ratios to average net assets:
Net expenses		1.49	%		1.45	%		1.53	%		1.60	%		1.60	%
Gross expenses		1.49	%		1.45	%		1.53	%		1.62	%		1.85	%
Net investment income (loss)		0.70	%		0.90	%		0.43	%		0.10	%		–0.33	%
Portfolio turnover rate		57	%		48	%		61	%		68	%		112	%

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

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

78 Annual Report

LAZARD EMERGING MARKETS EQUITY BLEND PORTFOLIO

													For the Period
Selected data for a share of capital	Year Ended												5/28/10* to
stock outstanding throughout each period	12/31/14			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)		0.15			0.11			0.11			0.15			(0.01	)
Net realized and unrealized gain (loss)		(1.12	)		(0.24	)		1.68			(2.70	)		2.48
Total from investment operations		(0.97	)		(0.13	)		1.79			(2.55	)		2.47
Less distributions from:
Net investment income		(0.21	)		(0.08	)		(0.11	)		(0.08	)		—
Net realized gains		—			(0.05	)		—			(0.05	)		(0.02	)
Return of capital		—	(b)		(0.01	)		—			—			—
Total distributions		(0.21	)		(0.14	)		(0.11	)		(0.13	)		(0.02	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	10.00		$	11.18		$	11.45		$	9.77		$	12.45

Total Return (c)		–8.66	%		–1.14	%		18.19	%		–20.43	%		24.66	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	463,043		$	478,754		$	201,512		$	85,091		$	54,826
Ratios to average net assets (d):
Net expenses		1.28	%		1.30	%		1.34	%		1.35	%		1.35	%
Gross expenses		1.28	%		1.33	%		1.34	%		1.54	%		6.24	%
Net investment income (loss)		1.33	%		1.00	%		1.01	%		1.34	%		–0.16	%
Portfolio turnover rate		44	%		48	%		57	%		62	%		62	%

													For the Period
Selected data for a share of capital	Year Ended												5/28/10* to
stock outstanding throughout each period	12/31/14			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)		0.10			0.07			0.09			0.11			(0.05	)
Net realized and unrealized gain (loss)		(1.10	)		(0.24	)		1.66			(2.68	)		2.50
Total from investment operations		(1.00	)		(0.17	)		1.75			(2.57	)		2.45
Less distributions from:
Net investment income		(0.18	)		(0.04	)		(0.07	)		(0.05	)		—
Net realized gains		—			(0.05	)		—			(0.05	)		(0.02	)
Return of capital		—	(b)		(0.01	)		—			—			—
Total distributions		(0.18	)		(0.10	)		(0.07	)		(0.10	)		(0.02	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	9.99		$	11.17		$	11.44		$	9.76		$	12.43

Total Return (c)		–8.95	%		–1.47	%		17.97	%		–20.74	%		24.46	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	123,756		$	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		1.63	%		1.69	%		1.77	%		1.92	%		6.06	%
Net investment income (loss)		0.94	%		0.61	%		0.78	%		0.94	%		–0.70	%
Portfolio turnover rate		44	%		48	%		57	%		62	%		62	%

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

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

Annual Report 79

LAZARD EMERGING MARKETS MULTI ASSET PORTFOLIO

										For the Period
Selected data for a share of capital	Year Ended									3/31/11* to
stock outstanding throughout each period	12/31/14			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)		0.17			0.13			0.09			0.09
Net realized and unrealized gain (loss)		(0.70	)		(0.37	)		1.11			(1.47	)
Total from investment operations		(0.53	)		(0.24	)		1.20			(1.38	)
Less distributions from:
Net investment income		(0.17	)		(0.10	)		(0.07	)		(0.05	)
Net realized gains		—			(0.08	)		—			—
Return of capital		—	(b)		—			—			—
Total distributions		(0.17	)		(0.18	)		(0.07	)		(0.05	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	8.58		$	9.28		$	9.70		$	8.57

Total Return (c)		–5.57	%		–2.41	%		14.02	%		–13.79	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	194,451		$	223,328		$	125,019		$	56,527
Ratios to average net assets (d):
Net expenses		1.28	%		1.30	%		1.30	%		1.30	%
Gross expenses		1.28	%		1.31	%		1.57	%		2.23	%
Net investment income		1.86	%		1.42	%		1.01	%		1.34	%
Portfolio turnover rate		122	%		155	%		160	%		98	%

										For the Period
Selected data for a share of capital	Year Ended									3/31/11* to
stock outstanding throughout each period	12/31/14			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)		0.15			0.10			0.08			0.07
Net realized and unrealized gain (loss)		(0.70	)		(0.37	)		1.08			(1.46	)
Total from investment operations		(0.55	)		(0.27	)		1.16			(1.39	)
Less distributions from:
Net investment income		(0.14	)		(0.07	)		(0.04	)		(0.02	)
Net realized gains		—			(0.08	)		—			—
Return of capital		—	(b)		—			—			—
Total distributions		(0.14	)		(0.15	)		(0.04	)		(0.02	)
Redemption fees		—			—	(b)		—			—	(b)
Net asset value, end of period	$	8.60		$	9.29		$	9.71		$	8.59

Total Return (c)		–5.89	%		–2.73	%		13.28	%		–13.67	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,198		$	2,185		$	858		$	262
Ratios to average net assets (d):
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%
Gross expenses		2.23	%		2.52	%		3.82	%		16.96	%
Net investment income		1.63	%		1.03	%		0.82	%		1.00	%
Portfolio turnover rate		122	%		155	%		160	%		98	%

*	The Portfolio commenced operations on March 31, 2011.
(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
(d)	Annualized for a period of less than one year.

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

80 Annual Report

LAZARD EMERGING MARKETS DEBT PORTFOLIO


										For the Period
Selected data for a share of capital	Year Ended									2/28/11* to
stock outstanding throughout each period	12/31/14			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)		0.49			0.49			0.48			0.34
Net realized and unrealized gain (loss)		(0.66	)		(1.25	)		1.33			(0.17	)
Total from investment operations		(0.17	)		(0.76	)		1.81			0.17
Less distributions from:
Net investment income		(0.15	)		(0.52	)		(0.48	)		(0.40	)
Net realized gains		—			(0.04	)		(0.24	)		(0.01	)
Return of capital		(0.37	)		—			—			—
Total distributions		(0.52	)		(0.56	)		(0.72	)		(0.41	)
Redemption fees		—	(b)		—	(b)		—	(b)		—
Net asset value, end of period	$	8.84		$	9.53		$	10.85		$	9.76

Total Return (c)		–2.07	%		–7.13	%		18.95	%		1.64	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	326,165		$	446,180		$	286,163		$	106,813
Ratios to average net assets (d):
Net expenses		0.96	%		0.97	%		1.00	%		1.04	%
Gross expenses		0.96	%		0.97	%		1.03	%		1.67	%
Net investment income		5.14	%		4.84	%		4.60	%		4.14	%
Portfolio turnover rate		204	%		108	%		220	%		108	%


										For the Period
Selected data for a share of capital	Year Ended									2/28/11* to
stock outstanding throughout each period	12/31/14			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)		0.46			0.45			0.45			0.33
Net realized and unrealized gain (loss)		(0.68	)		(1.24	)		1.35			(0.20	)
Total from investment operations		(0.22	)		(0.79	)		1.80			0.13
Less distributions from:
Net investment income		(0.09	)		(0.46	)		(0.45	)		(0.35	)
Net realized gains		—			(0.04	)		(0.24	)		(0.01	)
Return of capital		(0.37	)		—			—			—
Total distributions		(0.46	)		(0.50	)		(0.69	)		(0.36	)
Redemption fees		—	(b)		—	(b)		—	(b)		—
Net asset value, end of period	$	8.91		$	9.59		$	10.88		$	9.77

Total Return (c)		–2.53	%		–7.35	%		18.68	%		1.34	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,107		$	9,310		$	1,138		$	128
Ratios to average net assets (d):
Net expenses		1.30	%		1.30	%		1.30	%		1.39	%
Gross expenses		1.71	%		1.39	%		2.97	%		16.28	%
Net investment income		4.80	%		4.45	%		4.26	%		3.84	%
Portfolio turnover rate		204	%		108	%		220	%		108	%

*	The Portfolio commenced operations on February 28, 2011.
(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
(d)	Annualized for a period of less than one year.

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

Annual Report 81

LAZARD EMERGING MARKETS INCOME PORTFOLIO


	For the Period
Selected data for a share of capital	4/30/14* to
stock outstanding throughout the period	12/31/14

Institutional Shares
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.01
Net realized and unrealized loss			(0.85	)
Total from investment operations			(0.84	)
Net asset value, end of period		$	9.16

Total Return (b)			–8.30	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	4,985
Ratios to average net assets (c):
Net expenses			0.90	%
Gross expenses			5.15	%
Net investment income			0.10	%
Portfolio turnover rate			125	%


	For the Period
Selected data for a share of capital	4/30/14* to
stock outstanding throughout the period	12/31/14

Open Shares
Net asset value, beginning of period		$	10.00
Loss from investment operations:
Net investment loss (a)			(0.01	)
Net realized and unrealized loss			(0.85	)
Total from investment operations			(0.86	)
Net asset value, end of period		$	9.14

Total Return (b)			–8.50	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	132
Ratios to average net assets (c):
Net expenses			1.20	%
Gross expenses			13.96	%
Net investment loss			–0.18	%
Portfolio turnover rate			125	%

*	The Portfolio commenced operations on April 30, 2014.
(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.

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

82 Annual Report

LAZARD EXPLORER TOTAL RETURN PORTFOLIO


					For the Period
Selected data for a share of capital	Year Ended				6/28/13* to
stock outstanding throughout each period	12/31/14				12/31/13

Institutional Shares
Net asset value, beginning of period		$	9.86		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.36			0.16
Net realized and unrealized loss			(0.38	)		(0.12	)
Total from investment operations			(0.02	)		0.04
Less distributions from:
Net investment income			(0.49	)		(0.18	)
Net realized gains			(0.01	)		—
Return of capital			(0.02	)		—
Total distributions			(0.52	)		(0.18	)
Redemption fees			—	(b)		—
Net asset value, end of period		$	9.32		$	9.86

Total Return (c)			–0.21	%		0.38	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	133,473		$	31,450
Ratios to average net assets (d):
Net expenses			1.24	%		1.30	%
Gross expenses			1.30	%		2.97	%
Net investment income			3.57	%		3.15	%
Portfolio turnover rate			182	%		69	%


					For the Period
Selected data for a share of capital		Year Ended			6/28/13* to
stock outstanding throughout each period		12/31/14			12/31/13

Open Shares
Net asset value, beginning of period		$	9.88		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.33			0.14
Net realized and unrealized loss			(0.38	)		(0.11	)
Total from investment operations			(0.05	)		0.03
Less distributions from:
Net investment income			(0.43	)		(0.15	)
Net realized gains			(0.01	)		—
Return of capital			(0.02	)		—
Total distributions			(0.46	)		(0.15	)
Redemption fees			—	(b)		—
Net asset value, end of period		$	9.37		$	9.88

Total Return (c)			–0.52	%		0.27	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	7,150		$	2,665
Ratios to average net assets (d):
Net expenses			1.54	%		1.60	%
Gross expenses			1.78	%		5.01	%
Net investment income			3.26	%		2.78	%
Portfolio turnover rate			182	%		69	%

*	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.

Annual Report 83

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2014

1. Organization

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.

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:

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

84 Annual Report

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 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 and acts pursuant to delegated authority from 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.

The effect of using fair value pricing is that the NAV of a Portfolio will reflect the affected securities’ values as determined in the judgment of the Board or its designee instead

of being determined by the market. Using a fair value pricing methodology to price securities may result in a value that is different from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ NAVs.

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

During the year or period ended December 31, 2014, Emerging Markets Multi Asset, Emerging Markets Debt, Emerging Markets Income and Explorer Total Return Portfolios traded in fixed-income securities.

Annual Report 85

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.

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 year or period ended December 31, 2014, Emerging Markets Multi Asset, Emerging Markets Debt, Emerging Markets Income and Explorer Total Return Portfolios traded in forward currency contracts.

During the year ended December 31, 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 year		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 year		—		$	—

Written Options	Number of Contracts			Premiums

Options outstanding at beginning of year		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 year		—		$	—

Explorer Total Return Portfolio

Purchased Options	Number of Contracts			Cost

Options outstanding at beginning of year		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 year		—		$	—


Written Options	Number of Contracts			Premiums

Options outstanding at beginning of year		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 year		—		$	—

None of the other Portfolios presented traded in options during the year or period ended December 31, 2014.

86 Annual Report

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

Interest rate swap agreements involve the exchange by a Portfolio with another party of their respective commitments to pay or receive interest with respect to the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap,” (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor,” (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the counterparty may terminate the swap transaction in whole at zero cost by a 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 year ended December 31, 2014, Emerging Markets Multi Asset, Emerging Markets Debt and Explorer Total Return Portfolios traded in swap agreements with average notional exposure of approximately $19,737,107, $1,408,476 and $33,831,895, respectively.

Portfolio	Short-Term		Long-Term

Emerging Markets Core Equity	$	92,870	$	—
Developing Markets Equity		17,587,271		49,969,993
Emerging Markets Equity Blend		221,840		—
Emerging Markets Multi Asset		557,845		4,264,151
Emerging Markets Debt		7,779,232		3,275,142
Emerging Markets Income		6,016		—

Portfolio	Post October Capital Loss Deferral				Late Year Ordinary Loss Deferral

Emerging Markets Equity		$	—			$	(724,683	)
Emerging Markets Equity Blend			—				(43,681	)
Emerging Markets Multi Asset			—				(575,077	)
Emerging Markets Debt			(7,281,440	)			(7,831,064	)
Emerging Markets Income			(157	)			(240,115	)
Explorer Total Return			(3,864,090	)			(765,961	)

Annual Report 87

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 (2011-2013), or expected to be taken in the Portfolios’ 2014 tax returns.

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

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

Portfolio	Paid in Capital			Undistributed (Distributions in Excess of) Net Investment Income			Accumulated Net Realized Gain (Loss)

Emerging Markets Equity	$	—		$	6,178,446		$	(6,178,446	)
Emerging Markets Core Equity		(19,396	)		21,661			(2,265	)
Developing Markets Equity		(12,801	)		2,345,552			(2,332,751	)
Emerging Markets Equity Blend		(178,578	)		1,477,671			(1,299,093	)
Emerging Markets Multi Asset		(106,884	)		(1,187,810	)		1,294,694
Emerging Markets Debt		(12,293,515	)		(8,048,658	)		20,342,173
Emerging Markets Income		(106,966	)		(236,530	)		343,496
Explorer Total Return		(244,650	)		471,651			(227,001	)

The tax character of dividends and distributions paid during the years or periods ended December 31 were as follows:

	Ordinary Income				Long-Term Capital Gain
Portfolio	2014		2013		2014		2013

Emerging Markets Equity Institutional		$247,588,950		$228,386,796		$240,942,489		$231,786,112
Open		36,631,572		42,245,739		35,648,207		42,874,526
Emerging Markets Core Equity* Institutional		325,319		—		—		—
Open		42,737		—		—		—
Developing Markets Equity Institutional		6,831,069		4,445,742		—		—
Open		461,477		638,011		—		—
Emerging Markets Equity Blend* Institutional		9,413,910		5,171,737		—		—
Open		2,397,601		1,147,590		—		—
Emerging Markets Multi Asset* Institutional		3,815,304		3,269,156		—		947,496
Open		29,024		23,045		—		6,679
Emerging Markets Debt* Institutional		4,871,679		19,168,898		—		360,748
Open		40,972		443,234		—		8,341
Explorer Total Return* Institutional		6,931,869		435,081		86,593		—
Open		346,247		16,904		4,325		—

*	In 2014, Emerging Markets Core Equity, Emerging Markets Equity Blend, Emerging Markets Multi Asset, Emerging Markets Debt and Explorer Total Return Portfolios had return of capital distributions of $19,396, $178,578, $106,884, $12,293,515 and $244,648, respectively.

At December 31, 2014, the components of distributable earnings, on a tax basis, were as follows:

Portfolio	Undistributed Ordinary Income/ Deferred Ordinary Losses			Undistributed Long-Term Capital Gain/ Deferred Capital Losses			Net Unrealized Depreciation including Foreign Currency

Emerging Markets Equity	$	(724,683	)	$	44,579,899		$	(302,761,376	)
Emerging Markets Core Equity		—			(92,870	)		(1,501,545	)
Developing Markets Equity		383,215			(67,557,264	)		(63,295,975	)
Emerging Markets Equity Blend		(43,681	)		(221,840	)		(57,827,780	)
Emerging Markets Multi Asset		(575,077	)		(4,821,996	)		(15,583,009	)
Emerging Markets Debt		(7,831,064	)		(18,335,814	)		(21,062,042	)
Emerging Markets Income		(240,115	)		(6,173	)		(121,834	)
Explorer Total Return		(765,961	)		(3,864,090	)		(5,787,755	)

88 Annual Report

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

(i) Allocation of Expenses—Expenses not directly chargeable to a specific Portfolio are allocated among all Portfolios primarily on the basis of relative net assets. Portfolios accrue distribution and service (12b-1) fees to Open Shares. The 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) Redemption Fee—The Portfolios 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 management 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		1.20			1.50			2015	(c)

(a)	Agreement is through October 31, 2015.
(b)	Agreement extends, for May 1, 2015 through April 30, 2024, at levels of 1.10% and 1.40%, respectively.
(c)	From January 1, 2014 to June 30, 2014, percentages were 1.30% and 1.60%, respectively.

During the year or period ended December 31, 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

Emerging Markets Core Equity		$244,132	$	—		$34,080		$2,589
Emerging Markets Equity Blend		—		—		35,913		—
Emerging Markets Multi Asset		—		—		11,782		—
Emerging Markets Debt		—		—		11,014		—
Emerging Markets Income		22,493		106,483		732		7,177
Explorer Total Return		84,543		—		15,505		—

Annual Report 89

Portfolio	Amount

Emerging Markets Core Equity	$	6,250
Emerging Markets Income		12,500

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 or share class has commenced operations. During the year or period ended December 31, 2014, BFDS waived its fees as follows:

Portfolio	Amount

Emerging Markets Core Equity	$	7,968
Emerging Markets Income		12,200

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. No additional compensation is provided in respect of committee meetings held in conjunction with a meeting of the Board. Such Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings. Compensation is, generally, divided among the Lazard Funds based on relative net assets. Effective January 1, 2015, the compensation for Independent Directors is comprised of: (1) an annual retainer of $190,000, (2) an additional annual fee of $20,000 to the lead Independent Director, and (3) an additional annual fee of $10,000 to the Audit Committee Chair. The Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings, although per-meeting attendance fees will no longer be paid. Compensation is, generally, divided among the Lazard Funds and Lazard Alternative Emerging Markets 1099 Fund, a closed-end registered management investment company advised by an affiliate of the Investment Manager (the “1099 Fund”), based on relative net assets. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. The Statements of Operations show the Directors’ fees and expenses paid by each Portfolio.

5. Securities Transactions and Transactions with Affiliates

Purchases and sales of portfolio securities (excluding short-term investments) for the year or period ended December 31, 2014 were as follows:

90 Annual Report

Portfolio	Purchases		Sales

Emerging Markets Equity		$1,666,720,641		$2,132,071,327
Emerging Markets Core Equity		53,821,267		12,602,526
Developing Markets Equity		295,038,269		387,619,034
Emerging Markets Equity Blend		337,327,981		278,798,326
Emerging Markets Multi Asset		230,366,935		226,918,289
Emerging Markets Debt		606,980,602		690,718,780
Emerging Markets Income		1,258,736		585,958
Explorer Total Return		267,474,832		164,481,486

	US Government Securities
Portfolio	Purchases		Sales

Emerging Markets Debt		$5,119,296		$5,075,848
Explorer Total Return		7,572,051		7,580,203

For the year or period ended December 31, 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

					Weighted			Number of
	Average		Maximum		Average			Days
	Daily Loan		Daily Loan		Interest			Borrowings
Portfolio	Balance*		Outstanding		Rate			were Outstanding

Emerging Markets Equity	$	3,300,000	$	3,300,000		1.09	%		1
Emerging Markets Core Equity		673,333		1,700,000		1.10			12
Developing Markets Equity		2,630,000		8,100,000		1.12			10
Emerging Markets Equity Blend		7,950,000		8,150,000		1.09			5
Emerging Markets Debt		14,559,091		27,100,000		1.10			22

*	For days borrowings were outstanding.

Management believes that the fair value of the liabilities under the line of credit is equivalent to the recorded amount based on its short term maturity and interest rate, which

fluctuates with LIBOR. The line of credit outstanding as of December 31, 2014 is categorized as Level 2 (see Note 9).

7. Investment Risks

(b) Fixed-Income and Debt Securities Risk—While fixed-income securities are designed to produce a stable stream of income, their prices move inversely with changes in interest rates (i.e., as interest rates go up, prices go down). Interest rate risk is usually greater for fixed-income securities with longer maturities or durations. The Portfolios’ investments in lower-rated, higher-yielding securities are subject to greater credit risk than its higher rated investments. Credit risk is the risk that the issuer will not make interest or principal payments, or will not make payments on a timely basis. Non-investment grade securities tend to be more volatile, less liquid and are considered speculative. If there is a decline, or perceived decline, in the credit quality of a debt security (or any guarantor of payment on such security), the

Annual Report 91

security’s value could fall, potentially lowering the Portfolios’ share price. Some debt securities may give the issuer the option to call, or redeem, the securities before their maturity. If securities held by the Portfolios are called during a time of declining interest rates (which is typically the case when issuers exercise options to call outstanding securities), the Portfolios may have to reinvest the proceeds in an investment offering a lower yield (and the Portfolios may not fully benefit from any increase in the value of its portfolio holdings as a result of declining interest rates).

8. Contractual Obligations

9. Fair Value Measurements

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)

Changes in valuation technique may result in transfer into or out of the current assigned level within the hierarchy.

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

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2014:

	Unadjusted
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Investments		Inputs		Inputs		Balance as of
Description	(Level 1)		(Level 2)		(Level 3)		December 31, 2014

Emerging Markets Equity Portfolio
Common Stocks*
Brazil	$	385,216,971	$	1,563,409,888	$	—	$	1,948,626,859
China		621,784,693		892,022,617		—		1,513,807,310
Hong Kong		363,419,605		145,402,653		—		508,822,258
Indonesia		317,232,139		582,097,814		—		899,329,953
Russia		114,159,437		826,406,681		—		940,566,118
Other		698,555,858		6,755,272,126		—		7,453,827,984
Short-Term Investment		401,587,979		—		—		401,587,979
Total	$	2,901,956,682	$	10,764,611,779	$	—	$	13,666,568,461

92 Annual Report

	Unadjusted
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Investments		Inputs		Inputs		Balance as of
Description	(Level 1)		(Level 2)		(Level 3)		December 31, 2014

Emerging Markets Core Equity Portfolio
Common Stocks*
Brazil	$	680,395	$	1,514,306	$	—	$	2,194,701
China		2,978,969		5,967,250		—		8,946,219
Hong Kong		658,784		1,352,417		—		2,011,201
South Korea		569,911		3,696,945		—		4,266,856
Taiwan		1,901,564		5,571,717		—		7,473,281
Other		7,825,122		9,874,754		—		17,699,876
Preferred Stocks*		982,932		235,343		—		1,218,275
Right*		18,634		—		—		18,634
Short-Term Investment		258,200		—		—		258,200
Total	$	15,874,511	$	28,212,732	$	—	$	44,087,243

Developing Markets Equity Portfolio
Common Stocks*
Brazil	$	14,765,183	$	19,446,509	$	—	$	34,211,692
China		31,886,708		61,109,108		—		92,995,816
Colombia		10,714,962		3,685,099		—		14,400,061
Hong Kong		3,784,600		22,151,388		—		25,935,988
India		21,565,988		40,675,047		—		62,241,035
Russia		7,546,594		22,704,849		—		30,251,443
Other		38,113,151		125,987,175		—		164,100,326
Preferred Stocks*		7,342,644		5,126,105		—		12,468,749
Short-Term Investment		63,315		—		—		63,315
Total	$	135,783,145	$	300,885,280	$	—	$	436,668,425

Emerging Markets Equity Blend Portfolio
Common Stocks*
Brazil	$	16,295,194	$	39,045,777	$	—	$	55,340,971
China		36,486,117		65,281,828		—		101,767,945
Hong Kong		7,669,834		16,630,397		—		24,300,231
India		13,639,702		37,556,907		—		51,196,609
Indonesia		7,501,396		24,228,610		—		31,730,006
Russia		14,146,890		23,949,926		—		38,096,816
Turkey		15,188,093		26,987,898		—		42,175,991
Other		44,188,549		172,431,397		—		216,619,946
Preferred Stocks*		2,649,283		7,271,974		—		9,921,257
Short-Term Investment		9,275,314		—		—		9,275,314
Total	$	167,040,372	$	413,384,714	$	—	$	580,425,086

Emerging Markets Multi Asset Portfolio
Assets:
Common Stocks*
Brazil	$	2,915,052	$	7,000,733	$	—	$	9,915,785
China		6,462,671		11,407,215		—		17,869,886
Hong Kong		1,342,743		3,033,470		—		4,376,213
India		2,524,620		6,793,813		—		9,318,433
Indonesia		1,331,888		4,542,611		—		5,874,499
Russia		2,500,874		4,383,638		—		6,884,512
Taiwan		2,362,992		8,545,437		—		10,908,429
Turkey		2,525,701		4,858,073		—		7,383,774
Other		7,949,874		20,423,661		—		28,373,535
Preferred Stocks*		462,535		1,315,364		—		1,777,899
Corporate Bonds*		—		16,006,730		—		16,006,730
Foreign Government Obligations*		—		35,736,934		—		35,736,934

Annual Report 93

	Unadjusted
	Quoted Prices in
	Active Markets		Significant Other			Significant
	for Identical		Observable			Unobservable
	Investments		Inputs			Inputs		Balance as of
Description	(Level 1)		(Level 2)			(Level 3)		December 31, 2014

Emerging Markets Multi Asset Portfolio (concluded)
Assets:
Quasi Government Bonds*	$	—	$	2,746,816		$	—	$	2,746,816
US Treasury Securities		—		16,255,583			—		16,255,583
Warrant**		—		—			—		—
Short-Term Investment		24,283,883		—			—		24,283,883
Other Financial Instruments^†
Forward Currency Contracts		—		620,919			—		620,919
Total	$	54,662,833	$	143,670,997		$	—	$	198,333,830

Liabilities:
Other Financial Instruments^†
Credit Default Swap Agreements	$	—	$	(202,248	)	$	—	$	(202,248	)
Forward Currency Contracts		—		(789,445	)		—		(789,445	)
Total	$	—	$	(991,693	)	$	—	$	(991,693	)

Emerging Markets Debt Portfolio
Corporate Bonds*	$	—	$	28,735,128		$	—	$	28,735,128
Foreign Government Obligations*		—		258,712,364			—		258,712,364
Quasi Government Bonds*		—		6,361,544			—		6,361,544
Short-Term Investment		35,443,056		—			—		35,443,056
Total	$	35,443,056	$	293,809,036		$	—	$	329,252,092

Emerging Markets Income Portfolio
Assets:
Foreign Government Obligations*	$	—	$	1,652,765		$	—	$	1,652,765
Supranationals		—		47,776			—		47,776
US Treasury Securities		—		3,162,242			—		3,162,242
Short-Term Investment		754,131		—			—		754,131
Other Financial Instruments^†
Forward Currency Contracts		—		42,011			—		42,011
Total	$	754,131	$	4,904,794		$	—	$	5,658,925

Liabilities:
Other Financial Instruments^†
Forward Currency Contracts	$	—	$	(53,977	)	$	—	$	(53,977	)

Explorer Total Return Portfolio
Assets:
Corporate Bonds*	$	—	$	40,084,650		$	—	$	40,084,650
Foreign Government Obligations*		—		71,528,029			—		71,528,029
Quasi Government Bonds*		—		6,919,702			—		6,919,702
Warrant**		—		—			—		—
Short-Term Investment		19,069,028		—			—		19,069,028
Other Financial Instruments^†
Forward Currency Contracts		—		891,378			—		891,378
Total	$	19,069,028	$	119,423,759		$	—	$	138,492,787

Liabilities:
Other Financial Instruments^†
Credit Default Swap Agreements	$	—	$	(667,365	)	$	—	$	(667,365	)
Forward Currency Contracts		—		(1,052,065	)		—		(1,052,065	)
Total	$	—	$	(1,719,430	)	$	—	$	(1,719,430	)

*	Please refer to Portfolios of Investments (page 20 through 57) and Notes to Portfolios of Investments (page 65 through 66) for portfolio holdings by country and industry.
**	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.

94 Annual Report

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.

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.

At December 31, 2014, securities valued at the following amounts were transferred from Level 1 to Level 2:

Portfolio	Amount

Emerging Markets Equity	$	10,032,011,427
Emerging Markets Core Equity		1,582,038
Developing Markets Equity		308,159,964
Emerging Markets Equity Blend		307,174,206
Emerging Markets Multi Asset		61,508,710

There were no other transfers into or out of Levels 1, 2, or 3 during the year ended December 31, 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 covered call and put options is to realize, through the receipt of premiums and changes in market value, a greater return than would be realized on the underlying securities alone.

Emerging Markets Multi Asset Portfolio

During the year ended December 31, 2014, the notional amounts of purchases and sales of forward currency contracts were $968,050,165 and $990,801,392, respectively, with average notional exposure of approximately $113,300,000.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2014:

	Fair Value

Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts		$	620,919
Liability Derivatives
Credit Risk:
Gross unrealized depreciation on credit default swap agreements		$	202,248
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts		$	789,445

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2014 was:

	Amount

Realized Gain (Loss) on Derivatives Recognized in Income
Credit Risk:
Net realized loss on credit default swaps		$	(731,419	)
Foreign Exchange Risk:
Net realized loss on forward currency contracts		$	(234,544	)
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		$	(14,908	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Credit Risk:
Net change in unrealized depreciation on credit default swap agreements		$	(193,201	)

Annual Report 95

	Amount

Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts		$	(290,787	)
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		$	23,639

Emerging Markets Debt Portfolio

During the year ended December 31, 2014, the notional amounts of purchases and sales of forward currency contracts were $665,545,285 and $704,238,210, respectively, with average notional exposure of approximately $95,000,000.

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2014 was:

	Amount

Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized loss on forward currency contracts		$	(1,336,828	)
Interest Rate Risk:
Net realized loss on interest rate swap agreements		$	(99,364	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts		$	232,420
Interest Rate Risk:
Net change in unrealized appreciation on interest rate swap agreements		$	57,579

Emerging Markets Income Portfolio

During the period ended December 31, 2014, the notional amounts of purchases and sales of forward currency contracts were $42,866,848 and $39,656,853, respectively, with average notional exposure of approximately $5,800,000.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2014:

	Fair Value

Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts		$	42,011
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts		$	53,977

The effect of derivative instruments on its Statement of Operations for the period ended December 31, 2014 was:

	Amount

Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized loss on forward currency contracts		$	(254,516	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts		$	(11,966	)

Explorer Total Return Portfolio

During the year ended December 31, 2014, the notional amounts of purchases and sales of forward currency contracts were $1,195,812,367 and $1,209,362,474, respectively, with average notional exposure of approximately $129,400,000.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2014:

	Fair Value

Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts		$	891,378
Liability Derivatives
Credit Risk:
Gross unrealized depreciation on credit default swap agreements		$	667,365
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts		$	1,052,065

96 Annual Report

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2014 was:

	Amount

Realized Gain (Loss) on Derivatives Recognized in Income
Credit Risk:
Net realized loss on credit default swaps		$	(1,037,591	)
Foreign Exchange Risk:
Net realized gain on forward currency contracts		$	1,729,644
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		$	(6,495	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Credit Risk:
Net change in unrealized depreciation on credit default swap agreements		$	(667,964	)
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts		$	(188,503	)
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		$	14,294

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 year or period ended December 31, 2014.

As of December 31, 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 a single payment in the event of default on, or termination of, any one contract.

Annual Report 97

The required information for the affected Portfolios are presented in the below table, as of December 31, 2014:

Emerging Markets Multi Asset Portfolio

Gross Amounts

Net Amounts of

Offset in the

Assets Presented

Gross Amounts

Statement of

in the Statement

of Recognized

Assets and

of Assets and

Description

Assets

Liabilities

Forward Currency Contracts

620,919

—

620,919

	Gross Amounts Not Offset in the Statement of Assets and Liabilities
	Net Amounts of
	Assets Presented in
	Statement of Assets			Financial			Collateral
Counterparty	and Liabilities			Instruments			Received		Net Amounts


Bank of America NA		$	2,806	$	(2,806	)	$	—	$	—
Barclays Bank PLC			99,964		(99,964	)		—		—
BNP Paribas SA			3,672		(3,672	)		—		—
Citibank NA			97,985		(97,985	)		—		—
HSBC Bank USA NA			255		(255	)		—		—
JPMorgan Chase Bank NA			148,596		(148,596	)		—		—
Standard Chartered Bank			187,818		(187,818	)		—		—
UBS AG			79,823		(23,108	)		—		56,715
Total		$	620,919	$	(564,204	)	$	—	$	56,715


				Gross Amounts		Net Amounts of
				Offset in the		Liabilities Presented
	Gross Amounts			Statement of		in the Statement
	of Recognized			Assets and		of Assets and
Description	Liabilities			Liabilities		Liabilities


Credit Default Swap Agreements		$	202,248	$	—	$	202,248
Forward Currency Contracts			789,445		—		789,445
Total		$	991,693	$	—	$	991,693

	Gross Amounts Not Offset in the Statement of Assets and Liabilities
	Net Amounts of
	Liabilities Presented in
	Statement of Assets			Financial			Collateral
Counterparty	and Liabilities			Instruments			Pledged		Net Amounts


Bank of America NA		$	45,335	$	(2,806	)	$	—	$	42,529
Barclays Bank PLC			272,926		(99,964	)		—		172,962
BNP Paribas SA			11,041		(3,672	)		—		7,369
Citibank NA			129,822		(97,985	)		—		31,837
HSBC Bank USA NA			48,412		(255	)		—		48,157
JPMorgan Chase Bank NA			256,765		(148,596	)		—		108,169
Standard Chartered Bank			204,284		(187,818	)		—		16,466
UBS AG			23,108		(23,108	)		—		—
Total		$	991,693	$	(564,204	)	$	—	$	427,489

98 Annual Report

Emerging Markets Income Portfolio

Gross Amounts

Net Amounts of

Offset in the

Assets Presented

Gross Amounts

Statement of

in the Statement

of Recognized

Assets and

of Assets and

Description

Assets

Liabilities

Forward Currency Contracts

42,011

—

42,011

	Gross Amounts Not Offset in the Statement of Assets and Liabilities
	Net Amounts of
	Assets Presented in
	Statement of Assets			Financial			Collateral
Counterparty	and Liabilities			Instruments			Received		Net Amounts


Barclays Bank PLC		$	606	$	(99	)	$	—	$	507
Citibank NA			10,583		(3,747	)		—		6,836
HSBC Bank USA NA			20		(20	)		—		—
JPMorgan Chase Bank NA			26,526		(26,526	)		—		—
Standard Chartered Bank			2,834		(2,834	)		—		—
UBS AG			1,442		—			—		1,442
Total		$	42,011	$	(33,226	)	$	—	$	8,785

Gross Amounts

Net Amounts of

Offset in the

Liabilities Presented

Gross Amounts

Statement of

in the Statement

of Recognized

Assets and

of Assets and

Description

Liabilities

Forward Currency Contracts

53,977

—

53,977

	Gross Amounts Not Offset in the Statement of Assets and Liabilities
	Net Amounts of
	Liabilities Presented in
	Statement of Assets			Financial			Collateral
Counterparty	and Liabilities			Instruments			Pledged		Net Amounts


Barclays Bank PLC		$	99	$	(99	)	$	—	$	—
Citibank NA			3,747		(3,747	)		—		—
HSBC Bank USA NA			4,555		(20	)		—		4,535
JPMorgan Chase Bank NA			42,170		(26,526	)		—		15,644
Standard Chartered Bank			3,406		(2,834	)		—		572
Total		$	53,977	$	(33,226	)	$	—	$	20,751

Annual Report 99

Explorer Total Return Portfolio

Gross Amounts

Net Amounts of

Offset in the

Assets Presented

Gross Amounts

Statement of

in the Statement

of Recognized

Assets and

of Assets and

Description

Assets

Liabilities

Forward Currency Contracts

891,378

—

891,378

	Gross Amounts Not Offset in the Statement of Assets and Liabilities
	Net Amounts of
	Assets Presented in
	Statement of Assets			Financial			Collateral
Counterparty	and Liabilities			Instruments			Received		Net Amounts


Bank of America NA		$	6,864	$	(6,864	)	$	—	$	—
Barclays Bank PLC			178,447		(178,447	)		—		—
Citibank NA			23,059		(20,632	)		—		2,427
HSBC Bank USA NA			728		(728	)		—		—
JPMorgan Chase Bank NA			27,225		(27,225	)		—		—
Standard Chartered Bank			449,383		(449,383	)		—		—
UBS AG			205,672		(76,460	)		—		129,212
Total		$	891,378	$	(759,739	)	$	—	$	131,639


				Gross Amounts		Net Amounts of
				Offset in the		Liabilities Presented
	Gross Amounts			Statement of		in the Statement
	of Recognized			Assets and		of Assets and
Description	Liabilities			Liabilities		Liabilities


Credit Default Swap Agreements		$	667,365	$	—	$	667,365
Forward Currency Contracts			1,052,065		—		1,052,065
Total		$	1,719,430	$	—	$	1,719,430

	Gross Amounts Not Offset in the Statement of Assets and Liabilities
	Net Amounts of
	Liabilities Presented in
	Statement of Assets			Financial			Collateral
Counterparty	and Liabilities			Instruments			Pledged		Net Amounts


Bank of America NA		$	97,611	$	(6,864	)	$	—	$	90,747
Barclays Bank PLC			853,703		(178,447	)		—		675,256
Citibank NA			20,632		(20,632	)		—		—
HSBC Bank USA NA			49,429		(728	)		—		48,701
JPMorgan Chase Bank NA			168,773		(27,225	)		—		141,548
Standard Chartered Bank			452,822		(449,383	)		—		3,439
UBS AG			76,460		(76,460	)		—		—
Total		$	1,719,430	$	(759,739	)	$	—	$	959,691

100 Annual Report

11. Change of Independent Registered Public Accounting Firm

ments for the year ended December 31, 2013, there were no disagreements between the Fund and the predecessor independent registered public accounting firm on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which such disagreements, if not resolved to the satisfaction of the predecessor independent registered public accounting firm, would have caused them to make reference to the subject matter of the disagreement in connection with their reports on the financial statements for such periods.

12. Subsequent Events

Annual Report 101

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

To the Shareholders and Board of Directors of The Lazard Funds, Inc.:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Lazard Emerging Markets Equity Portfolio, Lazard Emerging Markets Core Equity Portfolio, 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 and Lazard Explorer Total Return Portfolio (collectively, the “Portfolios”), eight of the portfolios constituting The Lazard Funds, Inc. (the “Fund”) as of December 31, 2014, and the related statements of operations and changes in net assets and financial highlights for the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. For those portfolios that commenced operations prior to 2014, the financial statements for the year ended December 31, 2013 were audited by other auditors whose reports, dated February 28, 2014, expressed an unqualified opinion on those statements.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of 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 and Lazard Explorer Total Return Portfolio of The Lazard Funds, Inc. as of December 31, 2014, the results of their operations, changes in their net assets and the financial highlights for the period then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP
New York, New York
February 28, 2015

102 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⁾:

Franci J. Blassberg (61)	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)

Kenneth S. Davidson (69)	Director (August 1995)	Davidson Capital Management Corporation, an investment manager, President (1978 – present)

		Landseer Advisors LLC, an investment manager, Senior Advisor (2012 – 2014)

		Aquiline Holdings LLC, an investment manager, Partner (2006 – 2012)

Nancy A. Eckl (52)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
	Director (April 2007)
		TIAA-CREF Funds (62 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)

Richard Reiss, Jr. (70)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
	Director (May 1991)
		O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)

Robert M. Solmson (67)	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 (54)	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)
	Director (July 2005)
		Lazard Ltd, Vice Chairman and Director (2010 – present)

Annual Report 103

⁽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 January 31, 2015, 38 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 the 1099 Fund.

⁽³⁾	“Independent Directors” are not “interested persons” (as defined in the Act) of the Fund.

⁽⁴⁾	Messrs. Bhutani and Carroll are “interested persons” (as defined in the Act) of the Fund because of their positions with the Investment Manager.

The Fund’s Statement of Additional Information contains further information about the Directors and is available without charge by calling 800-823-6300, or online, at www.LazardNet.com.

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 (42)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager

Stephen St. Clair (56)	Treasurer (May 2003)	Vice President of the Investment Manager

Mark R. Anderson (44)	Chief Compliance Officer (September 2014)	Chief Compliance Officer and Director of the Investment Manager (since September 2014)

		Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014)

Tamar Goldstein (39)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) of the Investment Manager

Cesar A. Trelles (40)	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, except Messrs. St. Clair and Trelles, serves in the same capacity for the other Lazard Funds and the 1099 Fund. Messrs. St. Clair and Trelles serve 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.

104 Annual Report

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

Tax Information

Year Ended December 31, 2014

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2014:

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

Portfolio	Percentage

Lazard Emerging Markets Equity Portfolio		100.00	%
Lazard Emerging Markets Core Equity Portfolio		86.39
Lazard Developing Markets Equity Portfolio		100.00
Lazard Emerging Markets Equity Blend Portfolio		85.20
Lazard Emerging Markets Multi Asset Portfolio		62.23
Lazard Emerging Markets Debt Portfolio		—
Lazard Emerging Markets Income Portfolio		—
Lazard Explorer Total Return Portfolio		—

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

Portfolio	Percentage

Lazard Emerging Markets Equity Portfolio		—	%
Lazard Emerging Markets Core Equity Portfolio		—
Lazard Developing Markets Equity Portfolio		2.16
Lazard Emerging Markets Equity Blend Portfolio		0.37
Lazard Emerging Markets Multi Asset Portfolio		0.24
Lazard Emerging Markets Debt Portfolio		—
Lazard Emerging Markets Income Portfolio		—
Lazard Explorer Total Return Portfolio		—

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

Proxy Voting

Form N-Q

Annual Report 105

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 Annual Report

December 31, 2014

Equity Funds

Lazard US Equity Concentrated Portfolio	Lazard International Equity Concentrated Portfolio

Lazard US Strategic Equity Portfolio	Lazard International Equity Select Portfolio

Lazard US Small Cap Equity Growth Portfolio	Lazard International Strategic Equity Portfolio

Lazard US Mid Cap Equity Portfolio	Lazard International Small Cap Equity Portfolio

Lazard US Small-Mid Cap Equity Portfolio	Lazard Global Equity Select Portfolio

Lazard International Equity Portfolio	Lazard Global Strategic Equity Portfolio

The Lazard Funds, Inc. Table of Contents

2		A Message from Lazard

3		Investment Overviews

9		Performance Overviews

20		Information About Your Portfolio’s Expenses

23		Portfolio Holdings Presented by Sector

24		Portfolios of Investments

24		Lazard US Equity Concentrated Portfolio

25		Lazard US Strategic Equity Portfolio

27		Lazard US Small Cap Equity Growth Portfolio

29		Lazard US Mid Cap Equity Portfolio

30		Lazard US Small-Mid Cap Equity Portfolio

32		Lazard International Equity Portfolio

34		Lazard International Equity Concentrated Portfolio

35		Lazard International Equity Select Portfolio

37		Lazard International Strategic Equity Portfolio

39		Lazard International Small Cap Equity Portfolio

41		Lazard Global Equity Select Portfolio

43		Lazard Global Strategic Equity Portfolio

45		Notes to Portfolios of Investments

48		Statements of Assets and Liabilities

52		Statements of Operations

56		Statements of Changes in Net Assets

61		Financial Highlights

74		Notes to Financial Statements

84		Report of Independent Registered Public Accounting Firm

85		Board of Directors and Officers Information

87		Tax and Other Information

Distributed by Lazard Asset Management Securities LLC.

Annual Report 1

The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

At Lazard Asset Management LLC, we remain focused on active management and are committed to leveraging our strengths in pursuing the Portfolio’s investment objectives so that you, a valued shareholder in Lazard Funds, achieve your financial goals. Over the years, we understand that your investment preferences may change as markets evolve and as asset classes mature. With this in mind, we launched seven new mutual funds in 2014 across the alternatives, equity, and currency asset classes. We believe these funds may offer our clients’ new avenues of return. As always, we appreciate your continued confidence in our investment management capabilities, and feel privileged that you have turned to Lazard for your investment needs.

Sincerely,

Lazard Asset Management LLC

2 Annual Report

The Lazard Funds, Inc. Investment Overviews

US Equities

US markets rose during the year as the underlying foundations of the US economic recovery continued to improve. Deleveraging resumed with debt-to-GDP ratios improved for the private and public sector, and household assets and consumer net-worth continued to rise. Job growth also continued to accelerate, with the amount of non-farm payrolls growing by over 200,000 per month from February to December, which was sufficient to reduce the unemployment rate to 5.6%, below its long-term average. Oil prices fell to multi-year lows, which many speculate will have a net-positive effect on the US economy, as cheaper gasoline prices are expected to drive consumer spending. It is important to note that tapering, which began in January, ended in October with little reaction from the market. The debate has since moved to when tightening will begin, but investors have been encouraged by comments from the US Federal Reserve, which suggested that interest rates will remain low until the economic outlook showed further improvement.

International Equities

International equity markets finished the year modestly higher in local currencies, but, due to continued strength in the dollar versus all major currencies, US-dollar investors experienced moderate declines. Divergence in economic growth and central bank policies between the US and the rest of the world explains the dollar’s strength throughout the year. Economic data was mixed, with broadly encouraging macroeconomic signs from the US prompting the end of quantitative easing (QE) from the US Federal Reserve, while in Europe, China, and Japan the situation was reversed. Weak economic data prompted QE speculation in the euro zone, a cut in interest rates in China, and the delay of consumption-tax increases in Japan. Energy and materials stocks were the worst performers globally, as excess supply drove down commodity prices. Oil prices declined almost 50% during the period, with most declines occurring during the fourth quarter as OPEC members unexpectedly decided against reducing oil output levels despite plentiful supply and weaker demand forecasts. For global consumers, and for major oil-importing countries like India and Turkey, this is an unambiguous positive. The stronger sectors were the more-defensive and high-yielding areas such as health care, and utilities, as well as consumer facing stocks on the perception that the declining price of gasoline would benefit consumers. Emerging market stocks underperformed developed ones during the year in local currencies, as Russia’s

economy shrank in November for the first time in five years due to economic sanctions and the declining price of oil, their largest export. Elsewhere, data out of Brazil showed that their economy fell into recession, another victim of falling oil and commodity prices. Both Russian and Brazilian central banks raised their interest rates in an effort to combat inflation and support their currencies.

Lazard US Equity Concentrated Portfolio

For the year ended December 31, 2014, the Lazard US Equity Concentrated Portfolio’s Institutional Shares posted a total return of 18.88%, while Open Shares posted a total return of 18.28%, as compared with the 13.68% 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 that it had closed its acquisition of General Parts International, and that were more merger synergies than expected. Stock selection in the consumer staples sector also helped returns. Shares of Molson Coors Brewing rose as the company reported broadly strong quarterly earnings, and amid speculation that the company may buy the remaining stake of its MillerCoors joint venture.

In contrast, stock selection in the energy sector detracted from performance. Shares of offshore-drilling contractor Transocean fell amid concerns facing the offshore drilling industry, which were compounded by declining oil prices. We sold our position in December. A lack of exposure to utilities also hurt returns, as the sector was the best performer in the benchmark during the year.

Lazard US Strategic Equity Portfolio

For the year ended December 31, 2014, the Lazard US Strategic Equity Portfolio’s Institutional Shares posted a total return of 15.04%, while Open Shares posted a total return of 14.77%, as compared with the 13.68% return for the S&P 500 Index. The R6 Shares posted a total return of 12.23% for the period since inception on May 19, 2014 through December 31, 2014, compared with the 10.94% return for the S&P 500 Index for the same period.

Annual Report 3

merger synergies than expected. Stock selection and an underweight position in the industrials sector also helped returns. Shares of American Airlines rose following broadly strong quarterly earnings. Additionally, increased demand for business travel and declining oil prices in the latter half of the year boosted shares.

In contrast, stock selection in the energy sector detracted from performance. Shares of offshore-drilling contractor Transocean fell amid concerns facing the offshore-drilling industry, which were compounded by declining oil prices. We sold our position in December. A lack of exposure to utilities also hurt returns, as the sector was the best performer in the benchmark during the year.

Lazard US Mid Cap Equity Portfolio

For the year ended December 31, 2014, the Lazard US Mid Cap Equity Portfolio’s Institutional Shares posted a total return of 14.35%, while Open Shares posted a total return of 13.94%, as compared with the 13.22% return for the Russell Midcap^®Index.

Stock selection in the consumer discretionary sector contributed to performance. Shares of Advance Auto Parts rose after the company announced that it had closed its acquisition of General Parts International, and that were more merger synergies than expected. Stock selection and an underweight position in the consumer staples sector also helped returns. Shares of Molson Coors Brewing rose as the company reported broadly strong quarterly earnings and amid speculation that the company may buy the remaining stake of its MillerCoors joint venture.

In contrast, stock selection in the information technology sector detracted from performance. Shares of data-analytics-services provider CoreLogic fell after the company lowered guidance, as mortgage-market headwinds impacted results. We sold our position in April, as we saw opportunities with better risk-reward profiles elsewhere. A lack of exposure to utilities and telecom services also hurt returns, as the sectors were among the best performers in the benchmark during the year.

Lazard US Small-Mid Cap Equity Portfolio

For the year ended December 31, 2014, the Lazard US Small-Mid Cap Equity Portfolio’s Institutional Shares posted a total return of 11.39%, while Open Shares posted a total return of 11.01%, as compared with the 7.07% return for the Russell 2500^®Index.

Stock selection in the information technology sector contributed to performance. Shares of wireless-telecom-applications provider InterDigital rose after the company reported broadly strong quarterly earnings, and management announced that its largest customer had renewed its mobile-patent agreement after a multi-year negotiation process. Stock selection in the financials sector also helped returns. Shares of consumer finance company Springleaf rose after the company reported strong quarterly earnings and management announced in August that it planned to sell $7.2 billion of real-estate loans.

In contrast, stock selection in the materials sector detracted from performance. Shares of carbon-compound and wood-treatment maker Koppers fell after the company reported third-quarter earnings below expectations, as higher expenses hurt results. Stock selection and an underweight position in the utilities sector also hurt returns. Shares of wind-energy provider Pattern Energy fell as results were impacted by weaker-than-expected realized power prices, lower electricity production, and start-up difficulties in the latter half of the year.

Lazard International Equity Portfolio

For the year ended December 31, 2014, the Lazard International Equity Portfolio’s Institutional Shares posted a total return of -4.29%, while Open Shares posted a total return of -4.57%, as compared with the -4.90% return for the MSCI EAFE^®(Europe, Australasia, Far East) Index (the “EAFE Index”).

Stock selection in the consumer discretionary sector contributed to relative returns as strong results saw shares rise from Japanese shoe-maker Asics and Japanese discount-retailer Don Quijote. In the energy sector, stock selection was beneficial to relative returns as the strategy owns stocks that are less sensitive to moves in the price of oil. For example, shares of Australian fuel-supplier Caltex rose on company guidance that highlighted strong refining margins. Elsewhere, shares of Irish discount-airline Ryanair and British airline International Consolidated Airlines both benefited from the declining price of oil.

In contrast, stock selection in the financials sector detracted from relative returns. Shares of Japanese financial-services firm Sumitomo Mitsui Financial Group declined as Japanese banks experienced margin pressure on loans amid low interest rates. Additionally, shares of Greek bank Piraeus

4 Annual Report

declined along with the broader Greek stock market amid renewed political uncertainty. Within the information technology sector, shares of Japanese LCD manufacturer Japan Display declined on weaker-than-expected demand; we exited the position during the first half of the year. Lastly, stock selection in the materials sector detracted from relative returns as shares of British aluminum-packaging company Rexam declined on comments from management that highlighted rising costs.

Lazard International Equity Concentrated Portfolio

For the period since inception on August 29, 2014 through December 31, 2014, the Lazard International Equity Concentrated Portfolio’s Institutional Shares posted a total return of -4.60%, while Open Shares posted a total return of -4.66%, as compared with the -8.53% return for the MSCI All Country World^®(ACW) ex-US Index.

In the industrials sector, shares of British airline operator International Consolidated Airlines performed well on the declining price of oil, a major input cost for the industry. Within energy, stock selection and low exposure to the underperforming sector was beneficial to relative returns as the strategy owns stocks that are less sensitive to moves in the price of oil. For example, shares of Australian fuel-supplier Caltex rose on company guidance that highlighted strong refining margins. Stock selection within the health care sector was additive to relative returns as shares of Israeli pharmaceutical company Teva performed well on results that highlighted continued success in rolling out a new formulation of their market-leading multiple sclerosis drug.

In contrast, stock selection in the financials and materials sectors detracted from relative returns. In the financials sector, shares of Greek bank Piraeus declined along with the broader Greek stock market amid renewed political uncertainty. Shares of British mining company Anglo American declined primarily on lower iron ore prices due to rising supply and slowing demand growth in China. Lastly, stock selection in the consumer staples sector hurt relative returns as shares of Japan Tobacco declined amid news that the Japanese government might increase taxes applied to some brands the company currently produces.

Lazard International Equity Select Portfolio

For the year ended December 31, 2014, the Lazard International Equity Select Portfolio’s Institutional Shares posted a

total return of -4.29%, while Open Shares posted a total return of -4.76%, as compared with the -3.87% return for the MSCI ACW ex-US Index.

The Portfolio slightly underperformed the MSCI ACW ex-US Index for the year ended December 31, 2014, primarily driven by stock selection in the financials and telecom services sectors. Within financials, shares of Russian financial services firm Sberbank fell amid more economic uncertainty pertaining to sanctions, the decline in the price of oil, and the fall in the ruble. Similarly, within, the telecom services sector, Russian mobile-phone operator Mobile TeleSystems declined on many of the same concerns. Despite being mostly offset by having low exposure to the underperforming sector, stock selection in the materials sector detracted from relative returns as shares of British aluminum-packaging company Rexam declined on comments from management that highlighted rising costs that are impacting profit margins.

In contrast, stock selection and high exposure to the outperforming health-care sector contributed to relative returns. Shares of Swiss pharmaceutical company Novartis rallied following a heart-failure drug study, which revealed that the treatment was more effective than the standard therapy. Danish pharmaceutical company Novo Nordisk also rose on the regulatory approval of a new weight loss drug. Lastly, low exposure to the underperforming energy sector was beneficial to relative returns.

Lazard International Strategic Equity Portfolio

For the year ended December 31, 2014, the Lazard International Strategic Equity Portfolio’s Institutional Shares posted a total return of -1.48%, while Open Shares posted a total return of -1.78%, as compared with the -4.90% return for the EAFE Index.

In the energy sector, the Portfolio benefited from its very low exposure to the companies hurt most by falling oil prices, while Australian fuel-marketer Caltex was a beneficiary of its major restructuring initiatives as well as the oil environment. In materials, Australian packaging company Amcor and German flavor-maker Symrise reported encouraging results. The Portfolio also benefitted from little exposure to falling commodity materials and mining companies. Stock selection in the health care sector was strong, as Swiss pharmaceutical company Novartis reported very encouraging results from an acute heart failure drug, while private-

Annual Report 5

hospital operator Mediclinic International also saw good progress. Elsewhere, 2014 was another strong year for insurance- and investment-provider Prudential, and for Thai bank Kasikornbank, while Associated British Foods benefited from a material rerating of its discount-apparel retailer Primark. In the Philippines, the conglomerate GT Capital rose on the back of very strong sales at its Toyota subsidiary.

Performance in consumer discretionary stocks was mixed. Strong profits and share price rises were seen at Japanese retailers Don Quijote and Ryohin Keikaku, global-sportswear brand Asics, auto-supplier Valeo, and US-jeweler Signet after its takeover of key rival Zales. In contrast, Sands China suffered from continuing weak activity in Macau, Volkswagen struggled to feed its cost savings into profits, and the Portfolio’s media holdings, such as Informa, generally suffered from the weak cyclical rebound in activity.

On the negative side, aerospace manufacturer Airbus gave a very disappointing profit outlook; we exited our position during the year. Greek bank Piraeus fell on political fears, while Brazilian real estate agent Lopes suffered from a weak macroeconomic environment. The Portfolio also suffered from its low exposure to utility stocks, and the lack of rain to supply Sao Paolo water-utility SABESP.

Regarding the Euro, its depreciation is a primary mechanism through which the European Central Bank can further loosen monetary conditions for the euro zone. The Portfolio does not hedge currencies, but would observe that there are two natural hedging effects in place. The first is that many of the euro-denominated shares held in the Portfolio are of companies who derive substantial profits in currencies other than the euro. The second is that the fall in the euro will provide a natural stimulus effect to euro zone economies and companies from increased exports and export margins. The portfolio team will continue to focus on stock selection as the key driver of performance over time.

Lazard International Small Cap Equity Portfolio

For the year ended December 31, 2014, the Lazard International Small Cap Equity Portfolio’s Institutional Shares posted a total return of -2.77%, while Open Shares posted a total return of -3.05%, as compared with the -4.95% return for the MSCI EAFE Small Cap^®Index.

Stock selection in consumer discretionary, materials, energy, and health care contributed to the outperformance while poor stock selection in financials detracted from performance. On a regional basis, stock picking in continental Europe, the United Kingdom, and Asia ex-Japan contributed to performance while stock picking in Japan detracted.

One of the contributors to portfolio performance was UK-based Synergy Health, a supplier of outsourced support services to the health care markets in Europe, South Africa, and Asia. Activities include sterilization of medical devices, infection control, and other environmental management services. In October, the New York Stock Exchange-listed company, Steris, made an attractive offer to buy Synergy at a substantial premium to the then-current share price. The two companies would appear to be a strong fit in terms of having similar services, but as they are geographically distinct, we believe there is little likelihood of antitrust issues blocking the proposed purchase. In terms of the ongoing business, Synergy announced in November a strong set of interim results with good growth in sterilization and continued margin gains.

Belgian-based Kinepolis was a key contributor to the Portfolio’s annual performance. The company operates cinemas in its home market as well as France, Spain, the Netherlands, Switzerland, and Poland. During the year, Kinepolis made an important acquisition in the Netherlands which included several greenfield development projects. It also took advantage of tough economic conditions in Spain to add several key cinemas to its existing portfolio at a very low price. The group continues to show strong growth in in-theatre sales (food, beverages, and retail), in addition to enjoying an increasing number of visitors. Kinepolis remains strongly cash-generative and continues to execute a share buyback program, even as it assesses additional opportunities to purchase reasonably priced European cinemas.

Topcon, a Japanese manufacturer of optical devices including surveying equipment and ophthalmological equipment, contributed to positive Portfolio performance for the year. The company revised and extended its mid-term plan when it posted results in the second quarter of the calendar year in support of continuing strong operating profit growth. Topcon is benefitting from new product introductions and, based on the company’s successful restructuring, we are of the belief that management will execute on its expansion plans.

6 Annual Report

APR Energy, a London-listed provider of temporary power, was a detractor to the Portfolio during the year, as one of the company’s key contracts in Libya faces renewal risk. With large contracts and with limited visibility, the market has derated the stock during the year. Political as well as operational risks are weighing on the valuation. The portfolio team continues to monitor these developments and is actively assessing the risk/reward trade-off reflected in the current market price.

A detractor of performance during the year was UK-based Foxtons Group, which serves as a real estate broker in the greater London area. The shares traded lower as the company issued a subdued outlook statement and investors grew concerned that prices in London may be unsustainable, which would hinder Foxtons revenues going forward. The portfolio team, after recent meetings with management, has concluded that the company’s blended model of both estate agency and rental services, along with its store expansion program, offers long-term value.

Ship Healthcare Holdings detracted from quarterly performance in Japan. The company is a manufacturer and distributor of healthcare products to hospitals and also provides hospital engineering/consulting services. Ship Healthcare is expanding overseas. To fund this expansion and other projects, the company announced plans for a secondary share offering in October, which contributed to a 16% dilution. Longer term we expect Ship Healthcare to benefit from ongoing demand in Japan and overseas for its services and expertise.

Lazard Global Equity Select Portfolio

For the year ended December 31, 2014, the Lazard Global Equity Select Portfolio’s Institutional Shares posted a total return of 3.84%, while Open Shares posted a total return of 3.54%, as compared with the 4.16% return for the MSCI ACW Index.

Stock selection and an overweight position in the information technology sector contributed to performance. Shares of chipmaker NXP Semiconductors rose after the company reported quarterly earnings above expectations, driven by broadly strong performance across its businesses. Stock selection and an overweight position in the health care sector also helped returns. Shares of pharmaceuticals maker Vertex rose after the company released successful phase-3

trial results for one of its main value-driving cystic fibrosis treatments.

In contrast, stock selection in the financials sector detracted from performance. Shares of Greek bank Piraeus fell amid a selloff in Greek stocks, as uncertainty surrounding the country’s presidential election weighed on shares. Stock selection in the consumer discretionary sector also hurt returns. Shares of media company Viacom fell amid investor concerns about the television advertising pricing environment.

Lazard Global Strategic Equity Portfolio

For the period since inception on August 29, 2014 through December 31, 2014, the Lazard Global Strategic Equity Portfolio’s Institutional Shares posted a total return of -0.36%, while Open Shares posted a total return of -0.46%, as compared with the -2.84% return for the MSCI ACW Index.

The Portfolio outperformed the broader market during the year. In the energy sector, the Portfolio benefited from its very-low exposure to the companies hurt most by the falling oil price, while Australian fuel-marketer Caltex was a beneficiary. The Portfolio also gained from the lower fuel price as its holdings in airlines International Consolidated Airlines Group and American rose. In the health care sector, medical supplier Carefusion saw a bid from rival Becton Dickinson, while private hospital-operators Spire Healthcare and Mediclinic reported strong results. Visa and MasterCard had lagged the market earlier in the year, but strong results reaffirming the business model resulted in gains in the fourth quarter.

The consumer discretionary sector was mixed. Strong results from Japanese retailer Don Quijote, global sportswear brand Asics, and Advanced Auto Parts in the United States were offset by disappointing progress at J.C. Penney, and a slowdown in enrollment growth at Brazilian education-provider Estacio.

On the negative side, SoftBank suffered from lower profit guidance at its US subsidiary Sprint, where the new management is rightly looking to build scale before rebuilding margins, while Piraeus Bank in Greece and the Russian hypermarket-operator Lenta suffered from macro and political headwinds. We exited our position in Lenta during the year.

Annual Report 7

Notes to Investment Overviews:

8 Annual Report

The Lazard Funds, Inc. Performance Overviews

Lazard US Equity Concentrated Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2014

	One Year	Five Years	Since Inception	†
Institutional Shares**	18.88%	14.71%	7.91%
Open Shares**	18.28%	14.32%	7.59%
S&P 500 Index	13.68%	15.45%	8.00%
Russell 1000 Value/S&P 500 Linked Index	13.69%	14.73%	6.92%

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

	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.

	The 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.

Annual Report 9

Lazard US Strategic Equity Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2014

	One Year	Five Years	Ten Years	Since Inception	†
Institutional Shares**	15.04%	14.24%	7.13%	7.13%
Open Shares**	14.77%	13.91%	6.82%	6.82%
R6 Shares**	N/A	N/A	N/A	12.23%
S&P 500 Index	13.68%	15.45%	7.67%	7.65%
				(Institutional and Open Shares)
				10.94% (R6 Shares)

*	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 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.

10 Annual Report

Lazard US Mid Cap Equity Portfolio

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

Average Annual Total Returns*

Years Ended December 31, 2014

	One Year	Five Years	Ten Years
Institutional Shares**	14.35%	13.38%	6.87%
Open Shares**	13.94%	13.04%	6.57%
Russell Midcap Index	13.22%	17.19%	9.56%

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

Annual Report 11

Lazard US Small-Mid Cap Equity Portfolio

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

Average Annual Total Returns*

Years Ended December 31, 2014

	One Year	Five Years	Ten Years
Institutional Shares**	11.39%	14.26%	8.54%
Open Shares**	11.01%	13.91%	8.20%
Russell 2500 Index	7.07%	16.36%	8.72%
Russell 2000/2500 Linked Index	7.07%	16.36%	8.46%

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

	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.

	The Portfolio was previously known as Lazard U.S. 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.

12 Annual Report

Lazard International Equity Portfolio

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

Average Annual Total Returns*

Years Ended December 31, 2014

	One Year	Five Years	Ten Years
Institutional Shares**	–4.29%	7.31%	5.34%
Open Shares**	–4.57%	7.00%	5.03%
EAFE Index	–4.90%	5.33%	4.43%

*	All returns reflect reinvestment of all dividends and distributions, if any.

	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.

	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The EAFE Index is a broadly diversified international index comprised of equity securities of approximately 1,000 companies located in developed countries outside the United States. The index is unmanaged, has no fees or costs and is not available for investment.

**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report 13

Lazard International Equity Concentrated Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Equity Concentrated Portfolio and MSCI ACW^®ex-US Index

Total Returns*

Period Ended December 31, 2014

	Since Inception	†
Institutional Shares**	–4.60%
Open Shares**	–4.66%
MSCI ACW ex-US Index	–8.53%

*	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 MSCI ACW 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 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 August 29, 2014.

14 Annual Report

Lazard International Equity Select Portfolio

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

Average Annual Total Returns*

Years Ended December 31, 2014

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	–4.29%	6.15%	3.86%
Open Shares**	–4.76%	5.79%	3.51%
MSCI ACW ex-US Index	–3.87%	4.43%	5.13%
MSCI EAFE/ACW ex-US Linked Index	–3.87%	3.91%	3.73%

*	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 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 ACW 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/ACW 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 ACW ex-US Index for all periods thereafter. The EAFE Index is a broadly diversified international index comprised of equity securities of approximately 1,000 companies located in developed countries outside the United States. The indices are unmanaged, have no fees or costs and are not available for investment.

**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report 15

Lazard International Strategic Equity Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2014

Institutional Shares

Open Shares

One

Five

Since

One

Five

Since

Year

Years

Inception

†

Year

Years

Inception

†

International Strategic Equity Portfolio**

–1.48%

9.73%

7.10%

–1.78%

9.43%

5.30%

EAFE Index

–4.90%

5.33%

4.19%

–4.90%

5.33%

2.81%

*	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; 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.

16 Annual Report

Lazard International Small Cap Equity Portfolio

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

Average Annual Total Returns*

Years Ended December 31, 2014

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	–2.77%	10.44%	4.72%
Open Shares**	–3.05%	10.08%	4.41%
MSCI EAFE Small Cap Index	–4.95%	8.63%	6.04%

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

	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.

	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The MSCI EAFE Small Cap Index is an arithmetic, market value-weighted average of the performance of securities of small cap companies listed on the stock exchanges of EAFE Index countries. The index is unmanaged, has no fees or costs and is not available for investment.

**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report 17

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 ACW Index*

Average Annual Total Returns*

Periods Ended December 31, 2014

	One	Since
	Year	Inception	†
Institutional Shares**	3.84%	3.83%
Open Shares**	3.54%	3.53%
MSCI ACW Index	4.16%	4.16%

*	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 MSCI ACW 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.

18 Annual Report

Lazard Global Strategic Equity Portfolio

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

Total Returns*

Period Ended December 31, 2014

	Since
	Inception	†
Institutional Shares**	–0.36%
Open Shares**	–0.46%
MSCI ACW Index	–2.84%

*	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 ACW 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 August 29, 2014.

Annual Report 19

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

Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Portfolio	Beginning Account Value 7/1/14		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 - 12/31/14		Annualized Expense Ratio During Period 7/1/14 - 12/31/14

US Equity Concentrated
Institutional Shares
Actual	$	1,000.00	$	1,090.10		$4.21		0.80	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.17		$4.08		0.80	%
Open Shares
Actual	$	1,000.00	$	1,087.60		$6.58		1.25	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.90		$6.36		1.25	%

US Strategic Equity
Institutional Shares
Actual	$	1,000.00	$	1,069.10		$3.91		0.75	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.42		$3.82		0.75	%
Open Shares
Actual	$	1,000.00	$	1,067.60		$5.47		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91		$5.35		1.05	%
R6 Shares
Actual	$	1,000.00	$	1,069.60		$3.65		0.70	%
Hypothetical	$	1,000.00	$	1,028.73		$3.57		0.70	%

20 Annual Report

Portfolio	Beginning Account Value 7/1/14		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 - 12/31/14		Annualized Expense Ratio During Period 7/1/14 - 12/31/14

US Mid Cap Equity
Institutional Shares
Actual	$	1,000.00	$	1,082.80		$5.51		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91		$5.35		1.05	%
Open Shares
Actual	$	1,000.00	$	1,080.50		$7.08		1.35	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.40		$6.87		1.35	%

US Small-Mid Cap Equity
Institutional Shares
Actual	$	1,000.00	$	1,025.90		$4.44		0.87	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.82		$4.43		0.87	%
Open Shares
Actual	$	1,000.00	$	1,024.40		$6.17		1.21	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.11		$6.16		1.21	%

International Equity
Institutional Shares
Actual	$	1,000.00	$	914.10		$4.29		0.89	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.72		$4.53		0.89	%
Open Shares
Actual	$	1,000.00	$	912.70		$5.64		1.17	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.31		$5.96		1.17	%

International Equity Concentrated**
Institutional Shares
Actual	$	1,000.00	$	954.00		$3.72		1.15	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,012.76		$3.84		1.15	%
Open Shares
Actual	$	1,000.00	$	953.40		$4.69		1.45	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,011.77		$4.84		1.45	%

International Equity Select
Institutional Shares
Actual	$	1,000.00	$	898.20		$5.50		1.15	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.41		$5.85		1.15	%
Open Shares
Actual	$	1,000.00	$	896.50		$6.93		1.45	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.90		$7.38		1.45	%

International Strategic Equity
Institutional Shares
Actual	$	1,000.00	$	927.40		$4.08		0.84	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.97		$4.28		0.84	%
Open Shares
Actual	$	1,000.00	$	925.60		$5.34		1.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.66		$5.60		1.10	%

Annual Report 21

Portfolio	Beginning Account Value 7/1/14		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 - 12/31/14		Annualized Expense Ratio During Period 7/1/14 - 12/31/14

International Small Cap Equity
Institutional Shares
Actual	$	1,000.00	$	918.30		$5.46		1.13	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.51		$5.75		1.13	%
Open Shares
Actual	$	1,000.00	$	916.60		$6.96		1.44	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.95		$7.32		1.44	%

Global Equity Select
Institutional Shares
Actual	$	1,000.00	$	1,001.40		$5.55		1.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.66		$5.60		1.10	%
Open Shares
Actual	$	1,000.00	$	998.50		$7.05		1.40	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.15		$7.12		1.40	%

Global Strategic Equity**
Institutional Shares
Actual	$	1,000.00	$	996.40		$3.67		1.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,012.90		$3.70		1.10	%
Open Shares
Actual	$	1,000.00	$	995.40		$4.63		1.40	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,011.93		$4.67		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 184/365 (to reflect one-half year period).

**	The Portfolio commenced operations on August 29, 2014.

22 Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2014

Sector*	Lazard US Equity Concentrated Portfolio			Lazard US Strategic Equity Portfolio			Lazard US Small Cap Equity Growth Portfolio			Lazard US Mid Cap Equity Portfolio			Lazard US Small-Mid Cap Equity Portfolio

Consumer Discretionary		32.5	%		17.7	%		21.1	%		36.6	%		18.6	%
Consumer Staples		8.6			4.3			4.7			7.3			—
Energy		—			7.6			1.8			4.0			2.8
Financials		1.9			18.4			2.5			15.0			25.2
Health Care		17.5			13.3			34.3			5.3			8.2
Industrials		—			6.8			11.7			10.9			19.0
Information Technology		22.3			25.8			22.6			12.9			15.2
Materials		—			3.5			1.3			3.9			5.5
Utilities		—			—			—			—			2.6
Repurchase Agreement		—			—			—			—			2.9
Short-Term Investments		17.2			2.6			—			4.1			—
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Sector*	Lazard International Equity Portfolio			Lazard International Equity Concentrated Portfolio			Lazard International Equity Select Portfolio			Lazard International Strategic Equity Portfolio			Lazard International Small Cap Equity Portfolio

Consumer Discretionary		16.6	%		11.5	%		11.2	%		19.8	%		25.7	%
Consumer Staples		9.5			5.5			10.9			8.6			4.4
Energy		4.1			2.3			3.8			3.2			2.7
Financials		21.6			26.0			18.2			22.3			22.3
Health Care		13.0			11.7			14.0			15.4			7.6
Industrials		14.1			21.4			14.8			9.3			17.0
Information Technology		4.5			4.9			7.9			1.1			12.5
Materials		5.2			5.0			3.9			9.2			5.9
Telecommunication Services		8.0			8.2			7.8			5.3			—
Utilities		1.0			—			1.7			1.9			0.3
Repurchase Agreement		2.4			—			—			—			—
Short-Term Investments		—			3.5			5.8			3.9			1.6
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Sector*	Lazard Global Equity Select Portfolio			Lazard Global Strategic Equity Portfolio

Consumer Discretionary		8.1	%		17.6	%
Consumer Staples		7.2			12.3
Energy		2.9			3.0
Financials		22.4			14.2
Health Care		14.3			18.0
Industrials		11.5			9.8
Information Technology		25.6			11.7
Materials		3.5			3.9
Telecommunication Services		0.3			4.7
Short-Term Investments		4.2			4.8
Total Investments		100.0	%		100.0	%

*	Represents percentage of total investments.

Annual Report 23

The Lazard Funds, Inc. Portfolios of Investments December 31, 2014

Description	Shares		Value

Lazard US Equity Concentrated Portfolio

Common Stocks \| 82.3%

Alcohol & Tobacco \| 3.7%
Molson Coors Brewing Co., Class B		170,012	$	12,669,294

Commercial Services \| 3.2%
Blackhawk Network Holdings, Inc. (a)		217,260		8,429,688
NeuStar, Inc., Class A (a)		81,705		2,271,399
				10,701,087
Financial Services \| 1.9%
Janus Capital Group, Inc.		392,370		6,328,928

Food & Beverages \| 4.8%
Sysco Corp.		413,110		16,396,336

Leisure & Entertainment \| 22.5%
Houghton Mifflin Harcourt Co. (a)		1,002,572		20,763,266
Norwegian Cruise Line Holdings, Ltd. (a)		334,920		15,660,859
Orbitz Worldwide, Inc. (a)		2,083,850		17,150,085
The Madison Square Garden Co., Class A (a)		127,895		9,625,378
Viacom, Inc., Class B		173,455		13,052,489
				76,252,077
Medical Products \| 5.5%
Baxter International, Inc.		234,310		17,172,580
Bruker Corp. (a)		67,370		1,321,799
				18,494,379

Description	Shares		Value

Pharmaceutical & Biotechnology \| 11.9%
Pfizer, Inc.		690,227	$	21,500,571
Zoetis, Inc.		438,521		18,869,559
				40,370,130
Retail \| 9.8%
Advance Auto Parts, Inc.		195,237		31,097,350
J.C. Penney Co., Inc. (a)		350,590		2,271,823
				33,369,173
Semiconductors & Components \| 4.6%
Xerox Corp.		1,130,945		15,674,898

Technology Hardware \| 14.4%
Apple, Inc.		127,482		14,071,463
Cisco Systems, Inc.		674,785		18,769,145
EMC Corp.		537,210		15,976,625
				48,817,233
Total Common Stocks (Identified cost $229,881,238)				279,073,535

Short-Term Investment \| 17.1%
State Street Institutional Treasury Money Market Fund (Identified cost $57,956,904)		57,956,904		57,956,904

Total Investments \| 99.4% (Identified cost $287,838,142) (b)			$	337,030,439

Cash and Other Assets in Excess of Liabilities \| 0.6%				2,055,250

Net Assets \| 100.0%			$	339,085,689

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

24 Annual Report

Description	Shares		Value

Lazard US Strategic Equity Portfolio

Common Stocks \| 97.4%

Alcohol & Tobacco \| 1.9%
Molson Coors Brewing Co., Class B		37,085	$	2,763,574

Banking \| 1.6%
Regions Financial Corp.		209,625		2,213,640

Cable Television \| 1.0%
Comcast Corp., Class A		25,450		1,465,029

Chemicals \| 1.3%
Eastman Chemical Co.		24,930		1,891,190

Commercial Services \| 4.1%
Corrections Corp. of America		68,610		2,493,287
ServiceMaster Global Holdings, Inc.		37,475		1,003,206
The ADT Corp.		20,600		746,338
Tyco International PLC		34,800		1,526,328
				5,769,159
Computer Software \| 1.0%
Microsoft Corp.		30,425		1,413,242

Consumer Products \| 0.0%
Hasbro, Inc.		600		32,994

Energy Exploration & Production \| 5.0%
Anadarko Petroleum Corp.		19,400		1,600,500
Apache Corp.		28,675		1,797,062
Devon Energy Corp.		36,850		2,255,589
EOG Resources, Inc.		16,200		1,491,534
				7,144,685
Energy Integrated \| 0.9%
Consol Energy, Inc.		38,200		1,291,542

Energy Services \| 1.7%
Dril-Quip, Inc. (a)		11,400		874,722
HollyFrontier Corp.		39,425		1,477,649
				2,352,371

Description	Shares		Value

Financial Services \| 13.1%
Ally Financial, Inc. (a)		93,975	$	2,219,690
American Express Co.		34,500		3,209,880
CBOE Holdings, Inc.		31,600		2,004,072
Citigroup, Inc.		57,525		3,112,678
Intercontinental Exchange, Inc.		13,425		2,943,968
Morgan Stanley		53,600		2,079,680
Visa, Inc., Class A		11,450		3,002,190
				18,572,158
Food & Beverages \| 2.4%
Sysco Corp.		84,815		3,366,307

Forest & Paper Products \| 1.4%
International Paper Co.		36,400		1,950,312

Insurance \| 4.1%
Aon PLC		19,200		1,820,736
The Hartford Financial Services Group, Inc.		59,125		2,464,921
Voya Financial, Inc.		35,300		1,496,014
				5,781,671
Leisure & Entertainment \| 9.7%
Bloomin’ Brands, Inc. (a)		40,325		998,447
Houghton Mifflin Harcourt Co. (a)		72,100		1,493,191
McDonald’s Corp.		17,600		1,649,120
Norwegian Cruise Line Holdings, Ltd. (a)		74,425		3,480,113
The Madison Square Garden Co., Class A (a)		19,225		1,446,874
Viacom, Inc., Class B		61,750		4,646,687
				13,714,432
Manufacturing \| 5.0%
Carpenter Technology Corp.		22,370		1,101,722
Honeywell International, Inc.		32,693		3,266,685
Parker Hannifin Corp.		13,100		1,689,245
Rockwell Automation, Inc.		9,100		1,011,920
				7,069,572
Medical Products \| 3.4%
Baxter International, Inc.		65,400		4,793,166

Pharmaceutical & Biotechnology \| 9.9%
Eli Lilly & Co.		34,500		2,380,155
Mylan, Inc. (a)		36,875		2,078,644
Pfizer, Inc.		157,114		4,894,101
Zoetis, Inc.		108,519		4,669,572
				14,022,472

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

Annual Report 25

Description	Shares		Value

Lazard US Strategic Equity Portfolio (concluded)

Retail \| 6.3%
Advance Auto Parts, Inc.		46,783	$	7,451,596
Dick’s Sporting Goods, Inc.		16,655		826,921
J.C. Penney Co., Inc. (a)		92,825		601,506
				8,880,023
Semiconductors & Components \| 4.8%
Maxim Integrated Products, Inc.		30,925		985,580
NXP Semiconductors NV (a)		22,575		1,724,730
Xerox Corp.		296,200		4,105,332
				6,815,642
Technology \| 3.2%
Citrix Systems, Inc. (a)		16,650		1,062,270
Google, Inc., Class A (a)		2,770		1,469,928
Google, Inc., Class C (a)		1,125		592,200
Vantiv, Inc., Class A (a)		42,800		1,451,776
				4,576,174
Technology Hardware \| 14.6%
Apple, Inc.		45,362		5,007,058
Cisco Systems, Inc.		238,730		6,640,275
EMC Corp.		115,075		3,422,330
Hewlett-Packard Co.		50,275		2,017,536
Qualcomm, Inc.		18,150		1,349,090
Teradyne, Inc.		116,875		2,312,956
				20,749,245

Description	Shares		Value

Transportation \| 1.0%
American Airlines Group, Inc.		25,975	$	1,393,039

Total Common Stocks (Identified cost $117,308,263)				138,021,639

Short-Term Investment \| 2.6%
State Street Institutional Treasury Money Market Fund (Identified cost $3,714,437)		3,714,437		3,714,437

Total Investments \| 100.0% (Identified cost $121,022,700) (b)			$	141,736,076

Liabilities in Excess of Cash and Other Assets \| 0.0%				(10,247	)

Net Assets \| 100.0%			$	141,725,829

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

26 Annual Report

Description	Shares		Value

Lazard US Small Cap Equity Growth Portfolio

Common Stocks \| 98.6%

Alcohol & Tobacco \| 1.9%
The Boston Beer Co., Inc. Class A (a)		65	$	18,820

Banking \| 1.2%
Hanmi Financial Corp.		560		12,214

Commercial Services \| 9.2%
Cardtronics, Inc. (a)		280		10,802
Heartland Payment Systems, Inc.		315		16,994
Huron Consulting Group, Inc. (a)		420		28,724
On Assignment, Inc. (a)		560		18,586
Tyler Technologies, Inc. (a)		156		17,073
				92,179
Computer Software \| 3.1%
Callidus Software, Inc. (a)		755		12,329
Manhattan Associates, Inc. (a)		465		18,935
				31,264
Energy Exploration & Production \| 1.7%
Bonanza Creek Energy, Inc. (a)		150		3,600
Diamondback Energy, Inc. (a)		100		5,978
Synergy Resources Corp. (a)		625		7,838
				17,416
Financial Services \| 1.3%
Springleaf Holdings, Inc. (a)		345		12,479

Food & Beverages \| 2.8%
B&G Foods, Inc.		315		9,419
United Natural Foods, Inc. (a)		235		18,171
				27,590
Forest & Paper Products \| 0.4%
Graphic Packaging Holding Co. (a)		320		4,358

Health Services \| 10.9%
Acadia Healthcare Co., Inc. (a)		300		18,363
Air Methods Corp. (a)		350		15,411
AmSurg Corp. (a)		425		23,260
IPC The Hospitalist Co., Inc. (a)		305		13,996
LifePoint Hospitals, Inc. (a)		315		22,652
Team Health Holdings, Inc. (a)		270		15,533
				109,215

Description	Shares		Value

Leisure & Entertainment \| 8.9%
Buffalo Wild Wings, Inc. (a)		130	$	23,450
Cracker Barrel Old Country Store, Inc.		85		11,965
DineEquity, Inc.		105		10,882
Gray Television, Inc. (a)		780		8,736
IMAX Corp. (a)		290		8,961
Media General, Inc. (a)		450		7,528
Red Robin Gourmet Burgers, Inc. (a)		225		17,319
				88,841
Manufacturing \| 9.6%
Canadian Solar, Inc. (a)		465		11,248
CIRCOR International, Inc.		200		12,056
HEICO Corp.		375		22,650
LSB Industries, Inc. (a)		260		8,174
NN, Inc.		550		11,308
SunPower Corp. (a)		440		11,365
The Middleby Corp. (a)		195		19,325
				96,126
Medical Products \| 4.3%
Akorn, Inc. (a)		425		15,385
Cardiovascular Systems, Inc. (a)		335		10,077
DexCom, Inc. (a)		90		4,954
Globus Medical, Inc. Class A (a)		545		12,955
				43,371
Pharmaceutical & Biotechnology \| 18.6%
AMAG Pharmaceuticals, Inc. (a)		715		30,473
Anacor Pharmaceuticals, Inc. (a)		485		15,641
Avalanche Biotechnologies, Inc.		105		5,670
BioDelivery Sciences International, Inc. (a)		1,325		15,927
Bluebird Bio, Inc. (a)		210		19,261
Enanta Pharmaceuticals, Inc. (a)		395		20,086
Esperion Therapeutics, Inc. (a)		200		8,088
Flamel Technologies SA Sponsored ADR (a)		1,040		17,815
IGI Laboratories, Inc. (a)		1,755		15,444
Kite Pharma, Inc.		205		11,823
Receptos, Inc. (a)		210		25,727
				185,955
Retail \| 9.1%
ANN, Inc. (a)		175		6,384
Asbury Automotive Group, Inc. (a)		140		10,629
Deckers Outdoor Corp. (a)		165		15,022
G-III Apparel Group, Ltd. (a)		120		12,121
Lithia Motors, Inc. Class A		215		18,638
Murphy USA, Inc. (a)		195		13,428
Vitamin Shoppe, Inc. (a)		295		14,331
				90,553

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

Annual Report 27

Description	Shares		Value

Lazard US Small Cap Equity Growth Portfolio (concluded)

Semiconductors & Components \| 5.4%
Ambarella, Inc. (a)		115	$	5,833
Integrated Device Technology, Inc. (a)		470		9,212
Monolithic Power Systems, Inc.		245		12,186
RF Micro Devices, Inc. (a)		840		13,935
Spansion, Inc. Class A (a)		385		13,175
				54,341
Technology \| 6.7%
Imperva, Inc. (a)		410		20,266
Proofpoint, Inc. (a)		285		13,746
VeriFone Holdings, Inc. (a)		880		32,736
				66,748
Technology Hardware \| 1.5%
Electronics For Imaging, Inc. (a)		340		14,562

Description	Shares		Value

Transportation \| 2.0%
Knight Transportation, Inc.		295	$	9,930
Swift Transportation Co. (a)		345		9,877
				19,807
Total Common Stocks (Identified cost $986,100)				985,839

Total Investments \| 98.6% (Identified cost $986,100) (b)			$	985,839

Cash and Other Assets in Excess of Liabilities \| 1.4%				13,869

Net Assets \| 100.0%			$	999,708

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

28 Annual Report

Description	Shares		Value

Lazard US Mid Cap Equity Portfolio

Common Stocks \| 95.9%

Alcohol & Tobacco \| 4.7%
Molson Coors Brewing Co., Class B		25,730	$	1,917,400

Banking \| 3.1%
Fifth Third Bancorp		61,300		1,248,988

Chemicals \| 3.9%
Eastman Chemical Co.		20,725		1,572,198

Commercial Services \| 10.9%
MDC Partners, Inc., Class A		103,800		2,358,336
NeuStar, Inc., Class A (a)		11,750		326,650
ServiceMaster Global Holdings, Inc.		64,660		1,730,948
				4,415,934
Energy Services \| 4.0%
HollyFrontier Corp.		42,600		1,596,648

Financial Services \| 7.1%
Intercontinental Exchange, Inc.		8,385		1,838,747
TAL International Group, Inc.		23,450		1,021,716
				2,860,463
Food & Beverages \| 2.5%
Sysco Corp.		25,460		1,010,507

Insurance \| 7.4%
The Hartford Financial Services Group, Inc.		29,325		1,222,559
Voya Financial, Inc.		41,200		1,746,056
				2,968,615
Leisure & Entertainment \| 8.3%
Houghton Mifflin Harcourt Co. (a)		78,475		1,625,217
Orbitz Worldwide, Inc. (a)		208,800		1,718,424
				3,343,641
Manufacturing \| 4.0%
Joy Global, Inc.		34,900		1,623,548

Description	Shares		Value

Medical Products \| 2.1%
Natus Medical, Inc. (a)		23,500	$	846,940

Pharmaceutical & Biotechnology \| 3.2%
Zoetis, Inc.		29,975		1,289,824

Retail \| 18.2%
Advance Auto Parts, Inc.		19,984		3,183,052
Dick’s Sporting Goods, Inc.		46,400		2,303,760
Kohl’s Corp.		30,675		1,872,402
				7,359,214
Semiconductors & Components \| 9.9%
NXP Semiconductors NV (a)		30,875		2,358,850
Xerox Corp.		119,650		1,658,349
				4,017,199
Technology \| 2.2%
Citrix Systems, Inc. (a)		13,650		870,870

Transportation \| 4.4%
American Airlines Group, Inc.		19,925		1,068,578
XPO Logistics, Inc. (a)		17,175		702,114
				1,770,692
Total Common Stocks
(Identified cost $35,085,018)				38,712,681

Short-Term Investment \| 4.1%
State Street Institutional Treasury Money Market Fund (Identified cost $1,671,038)		1,671,038		1,671,038

Total Investments \| 100.0%
(Identified cost $36,756,056) (b)			$	40,383,719

Cash and Other Assets in Excess of Liabilities \| 0.0%				7,745

Net Assets \| 100.0%			$	40,391,464

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

Annual Report 29

Description	Shares		Value

Lazard US Small-Mid Cap Equity Portfolio

Common Stocks \| 95.1%

Aerospace & Defense \| 0.8%
B/E Aerospace, Inc. (a)		25,185	$	1,461,234

Automotive \| 2.2%
Modine Manufacturing Co. (a)		153,211		2,083,670
Tenneco, Inc. (a)		29,135		1,649,332
				3,733,002
Banking \| 11.2%
East West Bancorp, Inc.		76,865		2,975,444
Great Western Bancorp, Inc.		78,755		1,794,826
IBERIABANK Corp.		44,140		2,862,479
PacWest Bancorp		71,166		3,235,206
Signature Bank (a)		23,750		2,991,550
United Bankshares, Inc.		84,900		3,179,505
Wintrust Financial Corp.		50,768		2,373,912
				19,412,922
Chemicals \| 2.2%
Koppers Holdings, Inc.		64,980		1,688,180
Tronox, Ltd., Class A		91,220		2,178,334
				3,866,514
Commercial Services \| 7.7%
Applied Industrial Technologies, Inc.		37,905		1,728,089
Blackhawk Network Holdings, Inc. (a)		89,010		3,453,588
LifeLock, Inc. (a)		78,915		1,460,717
MDC Partners, Inc., Class A		110,045		2,500,222
On Assignment, Inc. (a)		69,920		2,320,645
ServiceMaster Global Holdings, Inc.		70,025		1,874,569
				13,337,830
Computer Software \| 5.1%
Informatica Corp. (a)		69,135		2,636,463
j2 Global, Inc.		39,270		2,434,740
Red Hat, Inc. (a)		37,220		2,573,391
Rovi Corp. (a)		56,605		1,278,707
				8,923,301
Construction & Engineering \| 2.3%
EMCOR Group, Inc.		51,045		2,270,992
Quanta Services, Inc. (a)		57,415		1,630,012
				3,901,004

Description	Shares		Value

Consumer Products \| 0.9%
Fox Factory Holding Corp. (a)		87,200	$	1,415,256
Hasbro, Inc.		3,100		170,469
				1,585,725
Electric \| 0.8%
Pattern Energy Group, Inc.		58,075		1,432,129

Energy Exploration & Production \| 1.2%
Memorial Resource Development Corp.		112,435		2,027,203

Energy Services \| 0.9%
HollyFrontier Corp.		39,595		1,484,021

Financial Services \| 6.1%
Air Lease Corp.		75,445		2,588,518
CBOE Holdings, Inc.		39,820		2,525,384
Cohen & Steers, Inc.		50,175		2,111,364
Springleaf Holdings, Inc. (a)		51,205		1,852,085
TAL International Group, Inc.		34,665		1,510,354
				10,587,705
Forest & Paper Products \| 2.3%
KapStone Paper and Packaging Corp.		55,335		1,621,869
Schweitzer-Mauduit International, Inc.		55,335		2,340,670
				3,962,539
Gas Utilities \| 1.7%
New Jersey Resources Corp.		49,390		3,022,668

Health Services \| 3.7%
Brookdale Senior Living, Inc. (a)		78,635		2,883,545
Quintiles Transnational Holdings, Inc. (a)		59,815		3,521,309
				6,404,854
Housing \| 0.7%
FMSA Holdings, Inc.		180,755		1,250,825

Insurance \| 1.8%
Arch Capital Group, Ltd. (a)		52,015		3,074,086

Leisure & Entertainment \| 4.8%
Bloomin’ Brands, Inc. (a)		70,085		1,735,305
Houghton Mifflin Harcourt Co. (a)		95,480		1,977,391
Hyatt Hotels Corp., Class A (a)		43,425		2,614,619
Orbitz Worldwide, Inc. (a)		250,870		2,064,660
				8,391,975

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

30 Annual Report

Description	Shares		Value

Lazard US Small-Mid Cap Equity Portfolio (concluded)

Manufacturing \| 12.0%
ACCO Brands Corp. (a)		41,445	$	373,419
Actuant Corp., Class A		73,580		2,004,319
Advanced Drainage Systems, Inc.		78,850		1,811,973
Altra Industrial Motion Corp.		71,230		2,022,220
CIRCOR International, Inc.		18,045		1,087,753
Drew Industries, Inc. (a)		21,600		1,103,112
FLIR Systems, Inc.		80,320		2,595,139
Joy Global, Inc.		25,130		1,169,048
KLX, Inc. (a)		12,645		521,606
Littelfuse, Inc.		19,710		1,905,366
The Toro Co.		30,500		1,946,205
TriMas Corp. (a)		70,156		2,195,181
Woodward, Inc.		40,880		2,012,522
				20,747,863
Medical Products \| 0.9%
Sirona Dental Systems, Inc. (a)		18,730		1,636,440

Metals & Glass Containers \| 0.9%
Owens-Illinois, Inc. (a)		60,600		1,635,594

Pharmaceutical & Biotechnology \| 3.4%
Aratana Therapeutics, Inc. (a)		80,821		1,440,230
Phibro Animal Health Corp., Class A		72,890		2,299,680
United Therapeutics Corp. (a)		16,520		2,139,175
				5,879,085
Real Estate \| 7.9%
DCT Industrial Trust, Inc. REIT		65,928		2,350,992
Extra Space Storage, Inc. REIT		56,195		3,295,275
Jones Lang LaSalle, Inc.		17,675		2,650,013
Kilroy Realty Corp. REIT		42,485		2,934,439
LaSalle Hotel Properties REIT		63,280		2,560,942
				13,791,661
Retail \| 6.3%
Advance Auto Parts, Inc.		15,995		2,547,684
Carter’s, Inc.		24,755		2,161,359
Chico’s FAS, Inc.		136,465		2,212,098
Dick’s Sporting Goods, Inc.		17,700		878,805
Iconix Brand Group, Inc. (a)		40,695		1,375,084
Steven Madden, Ltd. (a)		56,775		1,807,148
				10,982,178

Description	Shares		Value

Semiconductors & Components \| 1.2%
Microsemi Corp. (a)		75,450	$	2,141,271

Technology \| 2.7%
BroadSoft, Inc. (a)		80,260		2,329,145
Vantiv, Inc., Class A (a)		67,335		2,284,003
				4,613,148
Technology Hardware \| 1.3%
InterDigital, Inc.		41,910		2,217,039

Transportation \| 2.1%
Alaska Air Group, Inc.		31,645		1,891,105
Echo Global Logistics, Inc. (a)		57,763		1,686,680
				3,577,785
Total Common Stocks
(Identified cost $143,820,568)				165,081,601

Description	Principal Amount (000)		Value

Repurchase Agreement \| 2.8%
State Street Bank and Trust Co., 0.00%, 01/02/15 (Dated 12/31/14, collateralized by $3,545,000 United States Treasury Note, 8.00%, 11/15/21, with a value of $4,963,032) Proceeds of $4,859,000 (Identified cost $4,859,000)	$	4,859	$	4,859,000

Total Investments \| 97.9%
(Identified cost $148,679,568) (b)			$	169,940,601

Cash and Other Assets in Excess of Liabilities \| 2.1%				3,652,004

Net Assets \| 100.0%			$	173,592,605

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

Annual Report 31

Description	Shares		Value

Lazard International Equity Portfolio

Common Stocks \| 96.9%

Australia \| 2.7%
Ansell, Ltd.		211,764	$	3,865,828
Caltex Australia, Ltd.		156,969		4,343,722
James Hardie Industries PLC		334,886		3,565,801
				11,775,351
Austria \| 0.7%
UNIQA Insurance Group AG		318,413		2,980,839

Belgium \| 2.8%
Anheuser-Busch InBev NV		107,771		12,127,870

Brazil \| 0.7%
Estacio Participacoes SA		324,300		2,869,952

Canada \| 2.8%
MacDonald Dettwiler & Associates, Ltd.		74,200		6,064,116
Rogers Communications, Inc., Class B		161,500		6,279,011
				12,343,127
Denmark \| 0.7%
Carlsberg A/S, Class B		41,254		3,203,605

Finland \| 1.8%
Sampo Oyj, A Shares		170,835		8,010,384

France \| 7.1%
Airbus Group NV		100,675		5,000,247
BNP Paribas SA		138,599		8,144,671
Cap Gemini SA		95,149		6,777,272
Valeo SA		52,209		6,503,010
Vinci SA		79,068		4,326,655
				30,751,855
Germany \| 4.4%
Bayer AG		92,021		12,580,138
Bayerische Motoren Werke AG		35,552		3,861,083
RTL Group SA		28,136		2,673,743
				19,114,964
Greece \| 0.8%
Hellenic Telecommunications
Organization SA (a)		109,028		1,189,805
Piraeus Bank SA (a)		2,107,757		2,318,853
				3,508,658

Description	Shares		Value

Ireland \| 1.2%
Ryanair Holdings PLC Sponsored ADR (a)		73,300	$	5,224,091

Israel \| 3.0%
Teva Pharmaceutical Industries, Ltd.
Sponsored ADR		229,000		13,169,790

Italy \| 2.2%
Atlantia SpA		268,524		6,236,895
Azimut Holding SpA		162,468		3,504,962
				9,741,857
Japan \| 17.5%
AEON Financial Service Co., Ltd.		116,700		2,281,381
Asics Corp.		99,790		2,384,761
Daikin Industries, Ltd.		127,900		8,249,206
Daiwa House Industry Co., Ltd.		485,700		9,197,081
Don Quijote Holdings Co., Ltd.		138,100		9,432,785
Japan Tobacco, Inc.		166,800		4,580,008
KDDI Corp.		184,200		11,525,436
Makita Corp.		68,100		3,081,091
Seven & I Holdings Co., Ltd.		175,400		6,326,804
SoftBank Corp.		121,200		7,212,883
Sumitomo Mitsui Financial Group, Inc.		247,800		8,953,634
United Arrows, Ltd.		114,100		3,190,905
				76,415,975
Netherlands \| 3.7%
Koninklijke KPN NV		1,285,228		4,052,043
NXP Semiconductors NV (a)		74,923		5,630,374
Wolters Kluwer NV		209,963		6,411,359
				16,093,776
Philippines \| 1.1%
Alliance Global Group, Inc.		9,871,700		4,927,049

Spain \| 2.2%
Mediaset Espana Comunicacion SA (a)		385,583		4,815,488
Red Electrica Corporacion SA		51,495		4,520,593
				9,336,081
Sweden \| 3.8%
Assa Abloy AB, Class B		144,330		7,627,393
Swedbank AB, A Shares		366,293		9,114,450
				16,741,843
Switzerland \| 7.7%
GAM Holding AG		177,578		3,193,777
Glencore PLC		1,397,251		6,431,193
Novartis AG		212,620		19,554,126
Swatch Group AG		9,538		4,235,229
				33,414,325

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

32 Annual Report

Description	Shares		Value

Lazard International Equity Portfolio (concluded)

Taiwan \| 1.7%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		321,900	$	7,204,122

Thailand \| 0.8%
Krung Thai Bank Public Co. Ltd. (c)		5,243,800		3,618,063

Turkey \| 1.0%
Turkcell Iletisim Hizmetleri AS (a)		693,092		4,232,561

United Kingdom \| 26.5%
Anglo American PLC		228,316		4,224,291
British American Tobacco PLC		176,368		9,582,756
Direct Line Insurance Group PLC		1,087,008		4,902,754
Informa PLC		940,475		6,862,549
International Consolidated Airlines Group SA (a)		910,951		6,807,698
Lloyds Banking Group PLC (a)		9,023,055		10,655,021
Provident Financial PLC		116,969		4,452,022
Prudential PLC		534,324		12,295,948
Reed Elsevier PLC		493,083		8,389,020
Rexam PLC		1,162,646		8,173,744
Rolls-Royce Holdings PLC		241,567		3,254,165
Royal Dutch Shell PLC, A Shares		405,169		13,429,932
Shire PLC		98,216		6,949,102
Taylor Wimpey PLC		2,935,853		6,256,597
Unilever PLC		125,814		5,110,661
William Hill PLC		726,494		4,085,499
				115,431,759
Total Common Stocks
(Identified cost $407,238,157)				422,237,897

Description	Principal Amount (000)		Value

Repurchase Agreement \| 2.4%
State Street Bank and Trust Co., 0.00%, 01/02/15 (Dated 12/31/14, collateralized by $7,640,000 United States Treasury Note, 8.00%, 11/15/21, with a value of $10,696,069) Proceeds of $10,483,000 (Identified cost $10,483,000)	$	10,483	$	10,483,000

Total Investments \| 99.3%
(Identified cost $417,721,157) (b)			$	432,720,897

Cash and Other Assets in Excess of Liabilities \| 0.7%				3,116,862

Net Assets \| 100.0%			$	435,837,759

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

Annual Report 33

Description	Shares		Value

Lazard International Equity Concentrated Portfolio

Common Stocks \| 95.6%

Belgium \| 5.4%
Anheuser-Busch InBev NV		4,641	$	522,269

Brazil \| 6.7%
BB Seguridade Participacoes SA		22,400		268,889
Estacio Participacoes SA		42,500		376,112
				645,001
Canada \| 3.8%
MacDonald Dettwiler & Associates, Ltd.		4,543		371,284

China \| 5.2%
China Construction Bank Corp., Class H		347,000		281,529
China Shenhua Energy Co., Ltd., Class H		73,500		215,984
				497,513
France \| 7.8%
BNP Paribas SA		5,852		343,889
Valeo SA		3,326		414,277
				758,166
Germany \| 2.9%
Bayer AG		2,076		283,809

Greece \| 1.8%
Piraeus Bank SA (a)		158,483		174,355

Israel \| 5.3%
Teva Pharmaceutical Industries, Ltd. Sponsored ADR		8,943		514,312

Japan \| 10.2%
Daikin Industries, Ltd.		3,100		199,942
KDDI Corp.		7,100		444,248
SoftBank Corp.		5,800		345,171
				989,361
Netherlands \| 3.2%
Wolters Kluwer NV		10,193		311,250

Description	Shares		Value

Philippines \| 3.2%
Alliance Global Group, Inc.		612,000	$	305,454

Sweden \| 4.3%
Swedbank AB, A Shares		16,590		412,808

Switzerland \| 6.0%
Glencore PLC		55,967		257,602
Novartis AG		3,453		317,564
				575,166
Taiwan \| 4.9%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		21,152		473,382

Turkey \| 4.0%
Turkiye Garanti Bankasi AS		96,796		387,856

United Kingdom \| 20.9%
Anglo American PLC		12,084		223,578
Ashtead Group PLC		20,849		368,594
International Consolidated Airlines Group SA (a)		66,694		498,416
Provident Financial PLC		8,696		330,983
Prudential PLC		12,563		289,102
Travis Perkins PLC		10,626		305,923
				2,016,596
Total Common Stocks
(Identified cost $9,321,701)				9,238,582

Short-Term Investment \| 3.5%
State Street Institutional Treasury Money Market Fund (Identified cost $336,383)		336,383		336,383

Total Investments \| 99.1%
(Identified cost $9,658,084) (b)			$	9,574,965

Cash and Other Assets in Excess of Liabilities \| 0.9%				87,163

Net Assets \| 100.0%			$	9,662,128

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

34 Annual Report

Description	Shares		Value

Lazard International Equity Select Portfolio

Common Stocks \| 94.4%

Australia \| 1.1%
BHP Billiton, Ltd.		7,227	$	171,486

Belgium \| 2.7%
Anheuser-Busch InBev NV		3,846		432,805

Bermuda \| 1.1%
Signet Jewelers, Ltd.		1,332		172,451

Brazil \| 5.3%
Ambev SA		25,200		156,643
BB Seguridade Participacoes SA		18,400		220,873
Cia de Saneamento Basico do Estado de Sao Paulo		20,300		127,733
Cielo SA		9,936		155,704
Estacio Participacoes SA		19,500		172,569
				833,522
China \| 2.7%
Baidu, Inc. Sponsored ADR (a)		970		221,131
China Shenhua Energy Co., Ltd., Class H		72,000		211,576
				432,707
Denmark \| 1.7%
Novo Nordisk A/S, Class B		6,250		264,448

Finland \| 1.5%
Sampo Oyj, A Shares		4,971		233,088

France \| 4.3%
Airbus Group NV		2,795		138,820
BNP Paribas SA		5,339		313,742
Valeo SA		1,843		229,559
				682,121
Germany \| 3.4%
Bayer AG		2,966		405,480
Bayerische Motoren Werke AG		1,235		134,126
				539,606
Greece \| 0.6%
Piraeus Bank SA (a)		86,050		94,668

Description	Shares		Value

Indonesia \| 1.4%
PT Telekomunikasi Indonesia (Persero) Tbk
Sponsored ADR		5,019	$	227,009

Ireland \| 1.5%
Ryanair Holdings PLC Sponsored ADR (a)		3,400		242,318

Israel \| 2.5%
Teva Pharmaceutical Industries, Ltd. Sponsored ADR		6,730		387,042

Italy \| 2.1%
Atlantia SpA		7,508		174,385
Mediolanum SpA		24,328		154,333
				328,718
Japan \| 15.4%
Daikin Industries, Ltd.		4,100		264,439
Daiwa House Industry Co., Ltd.		15,000		284,036
Japan Tobacco, Inc.		5,300		145,528
KDDI Corp.		5,200		325,365
Komatsu, Ltd.		6,400		141,885
Makita Corp.		4,300		194,548
Ryohin Keikaku Co., Ltd.		1,200		148,276
Seven & I Holdings Co., Ltd.		7,717		278,358
SoftBank Corp.		5,100		303,512
Sumitomo Mitsui Financial Group, Inc.		7,076		255,674
Sumitomo Mitsui Trust Holdings, Inc.		24,000		91,593
				2,433,214
Macau \| 0.9%
Sands China, Ltd.		30,800		150,001

Netherlands \| 1.8%
NXP Semiconductors NV (a)		1,901		142,858
Wolters Kluwer NV		4,585		140,006
				282,864
Philippines \| 1.2%
Alliance Global Group, Inc.		364,500		181,925

Russia \| 1.0%
Lenta, Ltd. GDR		7,483		50,578
Mobile TeleSystems OJSC Sponsored ADR		8,761		62,904
Sberbank of Russia (a)		57,430		51,994
				165,476

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

Annual Report 35

Description	Shares		Value

Lazard International Equity Select Portfolio (concluded)

South Africa \| 3.1%
Mediclinic International, Ltd.		22,917	$	198,093
Mr Price Group, Ltd.		6,925		139,895
Nampak, Ltd.		39,239		147,645
				485,633
South Korea \| 1.4%
Samsung Electronics Co., Ltd.		190		228,390

Spain \| 0.9%
Red Electrica Corporacion SA		1,636		143,620

Sweden \| 3.6%
Assa Abloy AB, Class B		5,139		271,580
Swedbank AB, A Shares		11,916		296,505
				568,085
Switzerland \| 6.5%
Actelion, Ltd.		995		114,472
Cie Financiere Richemont SA		1,945		172,283
Novartis AG		6,828		627,954
Swatch Group AG		250		111,009
				1,025,718
Taiwan \| 3.2%
Taiwan Semiconductor Manufacturing Co., Ltd.		113,341		500,143

Thailand \| 1.0%
Kasikornbank Public Co. Ltd.		21,700		150,782

Turkey \| 2.8%
Koc Holding AS		23,630		124,814
Turkcell Iletisim Hizmetleri AS (a)		52,034		317,760
				442,574

Description	Shares		Value

United Kingdom \| 19.7%
Anglo American PLC		5,264	$	97,394
Ashtead Group PLC		11,178		197,618
Associated British Foods PLC		3,508		170,439
BG Group PLC		7,987		106,313
British American Tobacco PLC		6,094		331,111
Informa PLC		28,980		211,464
Lloyds Banking Group PLC (a)		260,305		307,386
Prudential PLC		18,777		432,099
Rexam PLC		28,769		202,255
Rolls-Royce Holdings PLC		15,270		205,703
Royal Dutch Shell PLC, A Shares		8,381		280,321
Shire PLC		3,015		213,321
Unilever PLC		3,873		157,324
Wolseley PLC		3,556		202,437
				3,115,185
Total Common Stocks
(Identified cost $15,361,698)				14,915,599

Short-Term Investment \| 5.8%
State Street Institutional Treasury Money Market Fund (Identified cost $915,202)		915,202		915,202

Total Investments \| 100.2%
(Identified cost $16,276,900) (b)			$	15,830,801

Liabilities in Excess of Cash and Other Assets \| (0.2)%				(34,272	)

Net Assets \| 100.0%			$	15,796,529

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

36 Annual Report

Description	Shares		Value

Lazard International Strategic Equity Portfolio

Common Stocks \| 95.6%

Australia \| 8.5%
Amcor, Ltd.		12,992,570	$	142,976,758
Ansell, Ltd.		5,159,528		94,189,033
Caltex Australia, Ltd.		4,023,850		111,349,915
Insurance Australia Group, Ltd.		7,769,904		39,392,707
James Hardie Industries PLC		5,981,285		63,687,567
				451,595,980
Austria \| 1.0%
UNIQA Insurance Group AG		5,560,364		52,053,624

Belgium \| 2.2%
Anheuser-Busch InBev NV		1,059,637		119,244,884

Bermuda \| 1.1%
Signet Jewelers, Ltd.		447,083		57,882,954

Brazil \| 2.0%
Cia de Saneamento Basico do Estado de Sao Paulo		5,739,400		36,113,835
Estacio Participacoes SA		6,998,700		61,936,276
LPS Brasil Consultoria de Imoveis SA		3,947,300		9,541,082
				107,591,193
Canada \| 0.9%
Home Capital Group, Inc.		1,194,302		49,332,547

Denmark \| 1.2%
Topdanmark A/S (a)		1,987,506		64,644,501

Finland \| 3.5%
Sampo Oyj, A Shares		3,985,244		186,866,477

France \| 1.9%
Valeo SA		809,632		100,845,542

Germany \| 6.1%
Bayer AG		1,166,514		159,473,451
Fresenius SE & Co. KGaA		1,301,683		67,974,117
Symrise AG		1,551,238		94,073,156
				321,520,724

Description	Shares		Value

Greece \| 1.8%
Hellenic Telecommunications Organization SA (a)		1,137,670	$	12,415,208
OPAP SA		1,804,016		19,277,452
Piraeus Bank SA (a)		55,899,165		61,497,591
				93,190,251
Indonesia \| 0.4%
PT Media Nusantara Citra Tbk		99,964,300		20,515,299

Ireland \| 1.6%
Kerry Group PLC, Class A		1,247,121		86,046,488

Israel \| 2.6%
Teva Pharmaceutical Industries, Ltd. Sponsored ADR		2,433,800		139,967,838

Italy \| 1.3%
Azimut Holding SpA		3,198,743		69,007,264

Japan \| 18.5%
AEON Financial Service Co., Ltd.		3,658,900		71,528,230
Asics Corp.		5,577,250		133,283,963
Daikin Industries, Ltd.		1,661,700		107,175,183
Daiwa House Industry Co., Ltd.		4,974,200		94,190,075
Don Quijote Holdings Co., Ltd.		2,504,900		171,094,734
Japan Tobacco, Inc.		1,801,600		49,468,484
KDDI Corp.		1,160,100		72,587,718
Makita Corp.		2,075,500		93,903,147
Ryohin Keikaku Co., Ltd.		558,900		69,059,643
SoftBank Corp.		1,964,600		116,917,738
				979,208,915
Macau \| 0.9%
Sands China, Ltd.		9,987,200		48,639,416

Malaysia \| 1.2%
Tenaga Nasional Berhad		15,813,900		62,320,615

Netherlands \| 1.5%
Koninklijke KPN NV		24,738,648		77,995,538

Philippines \| 2.3%
Alliance Global Group, Inc.		113,435,300		56,616,522
GT Capital Holdings, Inc.		2,797,325		64,268,954
				120,885,476

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

Annual Report 37

Description	Shares		Value

Lazard International Strategic Equity Portfolio (concluded)

South Africa \| 3.0%
Mediclinic International, Ltd.		8,352,135	$	72,195,213
Nampak, Ltd.		22,822,341		85,873,672
				158,068,885
Spain \| 1.4%
Mediaset Espana Comunicacion SA (a)		5,929,686		74,054,948

Sweden \| 1.9%
Assa Abloy AB, Class B		1,885,547		99,645,313

Switzerland \| 7.7%
Cie Financiere Richemont SA		834,706		73,936,028
GAM Holding AG		3,020,820		54,330,077
Novartis AG		2,085,088		191,760,296
Panalpina Welttransport Holding AG		365,119		49,020,050
Swatch Group AG		91,293		40,537,504
				409,583,955
Taiwan \| 1.1%
Taiwan Semiconductor Manufacturing Co., Ltd.		12,934,000		57,074,259

Thailand \| 0.5%
Kasikornbank Public Co. Ltd.		4,099,600		28,485,958

Turkey \| 0.6%
Turkiye Halk Bankasi AS		5,569,887		32,901,993

Description	Shares		Value

United Kingdom \| 18.9%
Amec Foster Wheeler PLC		4,421,242	$	57,865,092
Associated British Foods PLC		1,091,278		53,020,460
British American Tobacco PLC		2,696,576		146,515,409
Informa PLC		16,586,317		121,028,636
International Consolidated Airlines Group SA (a)		11,136,294		83,223,499
Lloyds Banking Group PLC (a)		138,357,796		163,382,059
Prudential PLC		5,795,973		133,377,841
Rexam PLC		13,947,489		98,054,956
Shire PLC		1,258,567		89,047,723
William Hill PLC		9,732,831		54,733,376
				1,000,249,051
Total Common Stocks
(Identified cost $4,803,372,383)				5,069,419,888

Short-Term Investment \| 3.9%
State Street Institutional Treasury Money Market Fund (Identified cost $207,610,411)		207,610,411		207,610,411

Total Investments \| 99.5%
(Identified cost $5,010,982,794) (b)			$	5,277,030,299

Cash and Other Assets in Excess of Liabilities \| 0.5%				24,466,203

Net Assets \| 100.0%			$	5,301,496,502

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

38 Annual Report

Description	Shares		Value

Lazard International Small Cap Equity Portfolio

Common Stocks \| 97.2%

Australia \| 5.5%
Ansell, Ltd.		41,360	$	755,042
iSelect, Ltd. (a)		539,187		562,621
James Hardie Industries PLC		37,867		403,200
Macquarie Atlas Roads Group		287,722		746,474
Pact Group Holdings, Ltd.		215,985		763,954
Super Retail Group, Ltd.		67,140		388,934
				3,620,225
Austria \| 0.7%
UNIQA Insurance Group AG		49,832		466,505

Belgium \| 3.2%
Arseus NV		17,768		746,538
Kinepolis Group NV		33,798		1,368,294
				2,114,832
Brazil \| 0.8%
Grendene SA		93,500		537,775

Canada \| 6.8%
Alaris Royalty Corp.		28,100		855,239
Altus Group, Ltd.		52,800		945,746
Entertainment One, Ltd.		155,049		775,069
Genworth MI Canada, Inc.		20,300		646,147
MacDonald Dettwiler & Associates, Ltd.		9,100		743,712
Sandvine Corp. (a)		198,100		557,572
				4,523,485
China \| 0.7%
Greatview Aseptic Packaging Co., Ltd.		941,000		484,403

Denmark \| 1.2%
Topdanmark A/S (a)		25,038		814,372

France \| 4.0%
Gaztransport Et Technigaz SA		13,682		808,041
Ingenico Group SA		9,862		1,036,209
Plastic Omnium SA		29,537		802,162
				2,646,412

Description	Shares		Value

Germany \| 8.1%
Aurelius AG		23,019	$	876,415
CompuGroup Medical AG		36,072		868,568
CTS Eventim AG & Co. KGaA		31,153		925,913
Norma Group SE		18,166		866,848
SHW AG		18,891		842,932
Wirecard AG		21,915		966,671
				5,347,347
Hong Kong \| 0.9%
Pacific Textiles Holdings, Ltd.		473,000		625,654

Ireland \| 1.6%
Greencore Group PLC		233,508		1,033,476

Italy \| 2.6%
Azimut Holding SpA		42,221		910,844
EI Towers SpA (a)		15,937		797,747
				1,708,591
Japan \| 24.3%
Ai Holdings Corp.		35,400		625,021
Ain Pharmaciez, Inc.		34,200		976,946
Anritsu Corp.		97,100		675,961
Ariake Japan Co., Ltd.		36,300		884,119
Asics Corp.		34,400		822,084
Don Quijote Holdings Co., Ltd.		14,100		963,087
Doshisha Co., Ltd.		50,100		710,237
Iriso Electronics Co., Ltd.		12,500		665,782
JAFCO Co., Ltd.		22,200		759,618
Misumi Group, Inc.		28,200		926,296
Rinnai Corp.		9,300		626,236
Santen Pharmaceutical Co., Ltd.		15,990		855,719
Sawai Pharmaceutical Co., Ltd.		11,600		668,284
Ship Healthcare Holdings, Inc.		25,800		586,226
Suruga Bank, Ltd.		55,600		1,018,721
Temp Holdings Co., Ltd.		31,160		968,404
Topcon Corp.		30,800		656,643
United Arrows, Ltd.		18,700		522,962
USS Co., Ltd.		69,900		1,075,690
Yumeshin Holdings Co., Ltd.		77,100		465,918
Zuiko Corp.		15,600		675,209
				16,129,163
Malaysia \| 0.7%
Berjaya Auto Berhad		465,000		437,969

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

Annual Report 39

Description	Shares		Value

Lazard International Small Cap Equity Portfolio (concluded)

Mexico \| 0.9%
Credito Real SAB de CV		277,660	$	594,324

Netherlands \| 3.4%
Aalberts Industries NV		31,624		934,304
Frank’s International NV		34,500		573,735
IMCD Group NV		22,804		777,206
				2,285,245
Norway \| 0.7%
SpareBank 1 SR Bank ASA		70,936		499,676

Singapore \| 0.9%
XP Power, Ltd.		28,010		609,819

South Africa \| 0.8%
Sun International, Ltd.		48,123		534,814

Sweden \| 3.0%
Indutrade AB		14,269		567,073
Intrum Justitia AB		28,673		848,123
Inwido AB		65,628		567,633
				1,982,829
Switzerland \| 2.1%
Cembra Money Bank AG		12,445		685,664
Kardex AG		14,646		681,230
				1,366,894
Taiwan \| 3.4%
Chicony Electronics Co., Ltd.		202,000		561,105
Radiant Opto-Electronics Corp.		163,920		519,906
Sinmag Equipment Corp.		102,660		618,787
Zeng Hsing Industrial Co., Ltd.		111,000		555,779
				2,255,577
Turkey \| 0.9%
Turkiye Sinai Kalkinma Bankasi AS		659,438		568,082

United Kingdom \| 19.0%
Abcam PLC		73,780		534,291
APR Energy PLC		64,102		185,670

Description	Shares		Value

Ashtead Group PLC		56,910	$	1,006,124
Card Factory PLC		163,981		718,389
Dignity PLC		30,066		894,325
Elementis PLC		197,736		800,231
Foxtons Group PLC		236,535		584,714
Hansteen Holdings PLC REIT		426,343		715,025
Hunting PLC		54,507		445,255
IG Group Holdings PLC		126,901		1,414,442
Markit, Ltd.		30,200		798,186
Provident Financial PLC		18,712		712,208
Rightmove PLC		23,544		819,685
RPC Group PLC		103,800		674,184
Telit Communications PLC (a)		211,001		788,363
Workspace Group PLC REIT		89,148		1,054,036
Zoopla Property Group PLC		141,992		431,567
				12,576,695
United States \| 1.0%
Samsonite International SA		235,500		697,143

Total Common Stocks (Identified cost $55,256,407)				64,461,307

Preferred Stock \| 1.0%

Brazil \| 1.0%
Banco ABC Brasil SA (Identified cost $738,290)		131,251		666,483

Short-Term Investment \| 1.6%
State Street Institutional Treasury Money Market Fund (Identified cost $1,077,218)		1,077,218		1,077,218


Total Investments \| 99.8% (Identified cost $57,071,915) (b)			$	66,205,008

Cash and Other Assets in Excess of Liabilities \| 0.2%				118,000

Net Assets \| 100.0%			$	66,323,008

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

40 Annual Report

Description	Shares		Value

Lazard Global Equity Select Portfolio

Common Stocks \| 95.4%

Belgium \| 2.8%
Anheuser-Busch InBev NV		3,157	$	355,269

Brazil \| 1.7%
Banco do Brasil SA		12,500		110,585
Cia Hering		6,869		52,305
Estacio Participacoes SA		5,900		52,213
				215,103
Canada \| 0.5%
MacDonald Dettwiler & Associates, Ltd.		700		57,209

China \| 1.0%
Baidu, Inc. Sponsored ADR (a)		575		131,083

Denmark \| 2.0%
Novo Nordisk A/S, Class B		2,719		115,045
Topdanmark A/S (a)		4,233		137,680
				252,725
Finland \| 1.1%
Sampo Oyj, A Shares		2,930		137,386

Germany \| 3.9%
Continental AG		1,403		297,931
Symrise AG		3,016		182,902
				480,833
Greece \| 0.6%
Piraeus Bank SA (a)		68,033		74,847

Israel \| 0.7%
Teva Pharmaceutical Industries, Ltd.
Sponsored ADR		1,505		86,553

Japan \| 6.3%
Daiwa House Industry Co., Ltd.		12,550		237,643
Mitsubishi Estate Co., Ltd.		6,035		127,727
Sumitomo Mitsui Financial Group, Inc.		8,300		299,900
Sumitomo Mitsui Trust Holdings, Inc.		30,145		115,045
				780,315
Netherlands \| 2.1%
NXP Semiconductors NV (a)		3,490		266,636

Description	Shares		Value

Peru \| 1.1%
Credicorp, Ltd.		853	$	136,634

Philippines \| 0.4%
Alliance Global Group, Inc.		94,411		47,121

Russia \| 1.5%
Magnit OJSC Sponsored GDR		1,775		80,043
Mobile TeleSystems OJSC Sponsored ADR		5,431		38,994
Yandex NV Class A (a)		3,775		67,799
				186,836
Sweden \| 2.1%
Assa Abloy AB, Class B		4,977		263,019

Switzerland \| 3.5%
Novartis AG		3,297		303,217
Panalpina Welttransport Holding AG		1,016		136,406
				439,623
Taiwan \| 1.8%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		10,045		224,807

Thailand \| 1.0%
Kasikornbank Public Co. Ltd.		17,340		120,486

United Kingdom \| 5.6%
International Consolidated Airlines
Group SA (a)		10,386		77,616
Lloyds Banking Group PLC (a)		89,117		105,235
Shire PLC		3,255		230,302
UBM PLC		8,380		62,545
Unilever PLC		5,590		227,070
				702,768
United States \| 55.7%
American Express Co.		3,461		322,011
Apple, Inc.		4,611		508,962
AutoZone, Inc. (a)		209		129,394
Bristol-Myers Squibb Co.		2,660		157,020
Cisco Systems, Inc.		6,255		173,983
Citigroup, Inc.		7,074		382,774
CVS Health Corp.		1,540		148,317
Eastman Chemical Co.		1,393		105,673
Eaton Corp. PLC		1,969		133,813
EMC Corp.		3,987		118,573
EOG Resources, Inc.		1,195		110,024

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

Annual Report 41

Description	Shares		Value

Lazard Global Equity Select Portfolio (concluded)

Google, Inc., Class A (a)		417	$	221,285
Google, Inc., Class C (a)		227		119,493
Halliburton Co.		1,510		59,388
Hasbro, Inc.		40		2,200
Honeywell International, Inc.		2,903		290,068
Intel Corp.		1,992		72,290
Intercontinental Exchange, Inc.		781		171,266
Joy Global, Inc.		2,049		95,320
MasterCard, Inc., Class A		2,615		225,308
McKesson Corp.		673		139,701
Microsoft Corp.		8,190		380,426
Molson Coors Brewing Co., Class B		1,129		84,133
Monsanto Co.		1,245		148,740
Qualcomm, Inc.		1,482		110,157
Quintiles Transnational Holdings, Inc. (a)		2,240		131,869
Red Hat, Inc. (a)		3,200		221,248
Rockwell Automation, Inc.		400		44,480
Ross Stores, Inc.		1,877		176,926
Schlumberger, Ltd.		2,236		190,977
The Charles Schwab Corp.		3,140		94,797
The Hartford Financial Services Group, Inc.		4,999		208,408
Thermo Fisher Scientific, Inc.		965		120,905

Description	Shares		Value

Tyco International PLC		3,365	$	147,589
United Technologies Corp.		1,129		129,835
UnitedHealth Group, Inc.		1,737		175,593
Vertex Pharmaceuticals, Inc. (a)		1,355		160,974
Viacom, Inc., Class B		3,164		238,091
Visa, Inc., Class A		727		190,619
Xerox Corp.		10,615		147,124
Zoetis, Inc.		3,532		151,982
				6,941,736

Total Common Stocks (Identified cost $11,321,102)				11,900,989

Short-Term Investment \| 4.2%
State Street Institutional Treasury Money Market Fund (Identified cost $518,234)		518,234		518,234


Total Investments \| 99.6% (Identified cost $11,839,336) (b)			$	12,419,223

Cash and Other Assets in Excess of Liabilities \| 0.4%				48,478

Net Assets \| 100.0%			$	12,467,701

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

42 Annual Report

Description	Shares		Value

Lazard Global Strategic Equity Portfolio

Common Stocks \| 95.7%

Australia \| 3.0%
Ansell, Ltd.		3,835	$	70,009
Caltex Australia, Ltd.		5,323		147,301
				217,310
Belgium \| 1.8%
Anheuser-Busch InBev NV		1,155		129,976

Brazil \| 2.3%
Ambev SA		18,400		114,374
Estacio Participacoes SA		5,900		52,213
				166,587
Canada \| 1.3%
MacDonald Dettwiler & Associates, Ltd.		1,185		96,846

Denmark \| 1.4%
Topdanmark A/S (a)		3,134		101,935

Finland \| 2.8%
Sampo Oyj, A Shares		4,373		205,048
Greece \| 1.4%
Hellenic Telecommunications Organization SA (a)		1,893		20,658
Piraeus Bank SA (a)		75,011		82,524
				103,182
Indonesia \| 0.8%
PT Media Nusantara Citra Tbk		295,700		60,685

Israel \| 2.1%
Teva Pharmaceutical Industries, Ltd. Sponsored ADR		2,688		154,587

Japan \| 7.4%
Asics Corp.		4,400		105,150
Daiwa House Industry Co., Ltd.		5,700		107,934
Don Quijote Holdings Co., Ltd.		1,146		78,276
Makita Corp.		2,350		106,323
SoftBank Corp.		2,380		141,639
				539,322

Description	Shares		Value

Macau \| 0.6%
Sands China, Ltd.		8,600	$	41,883

Netherlands \| 1.0%
Koninklijke KPN NV		22,628		71,341

Philippines \| 1.5%
Alliance Global Group, Inc.		218,800		109,205

South Africa \| 6.0%
Mediclinic International, Ltd.		23,503		203,158
Nampak, Ltd.		36,796		138,453
Sun International, Ltd.		8,531		94,809
				436,420
Spain \| 1.1%
Mediaset Espana Comunicacion SA (a)		6,147		76,769

Switzerland \| 4.0%
Cie Financiere Richemont SA		1,048		92,829
Novartis AG		2,133		196,167
				288,996
Taiwan \| 1.6%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		5,034		112,661

Turkey \| 2.5%
Turkcell Iletisim Hizmetleri AS (a)		17,659		107,840
Turkiye Halk Bankasi AS		11,956		70,625
				178,465
United Kingdom \| 12.9%
British American Tobacco PLC		2,691		146,213
Informa PLC		19,587		142,924
International Consolidated Airlines Group SA (a)		11,221		83,857
Lloyds Banking Group PLC (a)		105,041		124,039
Prudential PLC		5,299		121,942
Rexam PLC		10,411		73,192
Shire PLC		1,722		121,837
Spire Healthcare Group PLC		20,012		117,727
				931,731

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

Annual Report 43

Description	Shares		Value

Lazard Global Strategic Equity Portfolio (concluded)

United States \| 40.2%
Advance Auto Parts, Inc.		1,919	$	305,658
American Airlines Group, Inc.		1,342		71,971
American Express Co.		1,551		144,305
Ameriprise Financial, Inc.		571		75,515
Baxter International, Inc.		1,463		107,223
CareFusion Corp. (a)		1,264		75,006
Eastman Chemical Co.		921		69,867
EOG Resources, Inc.		764		70,341
Google, Inc., Class A (a)		464		246,226
Hasbro, Inc.		908		49,931
J.C. Penney Co., Inc. (a)		4,870		31,558
Kellogg Co.		1,417		92,729
MasterCard, Inc., Class A		2,250		193,860
McKesson Corp.		693		143,853
Molson Coors Brewing Co., Class B		2,057		153,288
Parker Hannifin Corp.		1,086		140,040
Sysco Corp.		3,804		150,981
The J.M. Smucker Co.		1,081		109,159

Description	Shares		Value

Tyco International PLC		2,456	$	107,720
United Therapeutics Corp. (a)		932		120,685
Viacom, Inc., Class B		1,973		148,468
Visa, Inc., Class A		589		154,436
Xerox Corp.		10,670		147,886
				2,910,706

Total Common Stocks (Identified cost $6,902,416)				6,933,655

Short-Term Investment \| 4.9%
State Street Institutional Treasury Money Market Fund (Identified cost $353,375)		353,375		353,375

Total Investments \| 100.6% (Identified cost $7,255,791) (b)			$	7,287,030

Liabilities in Excess of Cash and Other Assets \| (0.6)%				(40,144	)

Net Assets \| 100.0%			$	7,246,886

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

44 Annual Report

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2014

(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) were as follows:

Portfolio	Aggregate Cost		Aggregate Gross Unrealized Appreciation		Aggregate Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)

US Equity Concentrated	$	287,838,342	$	50,631,836	$	1,439,739	$	49,192,097
US Strategic Equity		121,293,224		22,026,110		1,583,258		20,442,852
US Small Cap Equity Growth		986,100		—		261		(261	)
US Mid Cap Equity		36,801,744		4,353,263		771,288		3,581,975
US Small-Mid Cap Equity		148,719,247		25,235,975		4,014,621		21,221,354
International Equity		418,534,350		32,357,825		18,171,278		14,186,547
International Equity Concentrated		9,693,460		262,326		380,821		(118,495	)
International Equity Select		16,547,903		754,189		1,471,291		(717,102	)
International Strategic Equity		5,012,112,565		535,747,938		270,830,204		264,917,734
International Small Cap Equity		58,383,088		12,779,801		4,957,881		7,821,920
Global Equity Select Portfolio		11,851,016		1,067,022		498,815		568,207
Global Strategic Equity Portfolio		7,266,453		266,619		246,042		20,577

(c)

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
OJSC	—	Open Joint Stock Company
REIT	—	Real Estate Investment Trust

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

Annual Report 45

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 Concentrated Portfolio			Lazard International Equity Select Portfolio			Lazard International Strategic Equity Portfolio			Lazard International Small Cap Equity Portfolio			Lazard Global Equity Select Portfolio			Lazard Global Strategic Equity Portfolio

Agriculture		—	%		—	%		—	%		—	%		—	%		1.2	%		—	%
Alcohol & Tobacco		6.8			5.4			6.7			5.9			—			3.5			7.5
Apparel & Textiles		—			—			—			—			0.9			—			—
Automotive		2.4			4.3			2.3			1.9			2.5			2.4			—
Banking		7.4			16.6			7.9			3.2			3.3			6.9			2.1
Chemicals		—			—			—			1.8			2.4			2.3			1.0
Commercial Services		—			3.2			2.3			0.2			13.3			1.2			1.5
Computer Software		—			—			1.4			—			0.7			6.4			—
Construction & Engineering		1.0			—			—			—			1.9			—			—
Consumer Products		1.7			—			3.0			3.9			2.0			—			3.4
Diversified		1.1			3.2			1.9			1.1			—			0.4			1.5
Electric		1.0			—			0.9			1.2			0.3			—			—
Energy Exploration & Production		—			—			—			—			—			0.9			1.0
Energy Integrated		4.1			2.2			3.8			2.1			0.7			—			2.0
Energy Services		—			—			—			1.1			0.9			2.0			—
Financial Services		5.5			7.2			3.2			6.8			12.6			12.0			9.6
Food & Beverages		—			—			1.1			2.6			2.9			—			4.9
Forest & Paper Products		1.9			—			2.2			6.2			2.9			—			2.9
Health Services		—			—			1.3			2.6			3.5			2.5			4.4
Household & Personal Products		1.2			—			1.0			—			0.8			1.8			—
Housing		4.4			—			1.8			3.0			0.6			1.9			1.5
Insurance		6.5			5.8			6.6			9.0			3.8			3.9			5.9
Leisure & Entertainment		8.2			7.1			4.3			7.5			2.9			2.8			8.5
Manufacturing		6.4			2.1			6.5			6.9			9.0			7.7			2.9
Medical Products		—			—			—			—			2.1			2.1			4.5
Metals & Mining		2.4			5.0			1.7			—			—			—			—
Pharmaceutical & Biotechnology		12.0			11.4			12.8			10.9			3.1			9.6			8.1
Real Estate		—			—			—			—			3.6			1.0			—
Retail		4.9			—			5.0			8.1			8.9			4.7			7.2
Semiconductors & Components		2.9			4.9			5.5			1.1			6.3			5.7			3.6
Technology		3.2			3.6			1.9			2.2			—			2.7			5.4
Technology Hardware		1.4			3.8			—			—			5.2			7.8			1.3
Telecommunications		6.3			4.6			5.9			3.1			—			0.3			2.8
Transportation		4.2			5.2			2.6			2.5			1.1			1.7			2.2
Water		—			—			0.8			0.7			—			—			—
Subtotal		96.9			95.6			94.4			95.6			98.2			95.4			95.7
Short-Term Investments		—			3.5			5.8			3.9			1.6			4.2			4.9
Repurchase Agreement		2.4			—			—			—			—			—			—
Total Investments		99.3	%		99.1	%		100.2	%		99.5	%		99.8	%		99.6	%		100.6	%

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

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

46 Annual Report

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Annual Report 47

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2014	Lazard US Equity Concentrated Portfolio				Lazard US Strategic Equity Portfolio

ASSETS
Investments in securities, at value		$	337,030,439		$	141,736,076
Cash			—			—
Foreign currency			—			—
Receivables for:
Capital stock sold			2,317,763			125,380
Dividends and interest			447,436			188,073
Investments sold			—			189,253
Amount due from Investment Manager (Note 3)			—			—
Deferred offering costs (Note 2(g))			—			2,786
Total assets			339,795,638			142,241,568

LIABILITIES
Payables for:
Management fees			197,788			50,131
Accrued distribution fees			1,666			1,478
Accrued directors’ fees			34			17
Capital stock redeemed			64,103			220,743
Investments purchased			397,547			199,200
Other accrued expenses and payables			48,811			44,170
Total liabilities			709,949			515,739
Net assets		$	339,085,689		$	141,725,829

NET ASSETS
Paid in capital		$	290,152,199		$	121,215,561
Undistributed (distributions in excess of) net investment income (loss)			(9,957	)		12,725
Accumulated net realized gain (loss)			(248,850	)		(215,833	)
Net unrealized appreciation (depreciation) on:
Investments			49,192,297			20,713,376
Foreign currency			—			—
Net assets		$	339,085,689		$	141,725,829

Institutional Shares
Net assets		$	331,074,296		$	119,941,313
Shares of capital stock outstanding*			24,685,845			9,645,978
Net asset value, offering and redemption price per share		$	13.41		$	12.43

Open Shares
Net assets		$	8,011,393		$	6,833,047
Shares of capital stock outstanding*			593,582			547,671
Net asset value, offering and redemption price per share		$	13.50		$	12.48

R6 Shares
Net assets			—		$	14,951,469
Shares of capital stock outstanding*			—			1,202,892
Net asset value, offering and redemption price per share			—		$	12.43
Cost of investments in securities		$	287,838,142		$	121,022,700
Cost of foreign currency		$	—		$	—

* $0.001 par value, 6,450,000,000 shares authorized for the Portfolios in total.

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

48 Annual Report

Lazard US Small Cap Equity Growth Portfolio			Lazard US Mid Cap Equity Portfolio			Lazard US Small-Mid Cap Equity Portfolio		Lazard International Equity Portfolio			Lazard International Equity Concentrated Portfolio

$	985,839		$	40,383,719		$	169,940,601	$	432,720,897		$	9,574,965
	—			—			302		829			—
	—			—			—		10			876

	1,000,000			31,486			435,135		2,654,718			74,999
	—			37,877			304,668		438,541			623
	—			—			4,039,989		2,764,991			—
	19,676			—			—		—			8,457
	73,129			—			—		—			48,889
	2,078,644			40,453,082			174,720,695		438,579,986			9,708,809

	—			16,870			180,872		281,386			—
	—			7,367			3,178		12,382			104
	—			5			43		34			—
	—			271			9,565		1,459,249			—
	996,307			—			882,658		900,851			—
	82,629			37,105			51,774		88,325			46,577
	1,078,936			61,618			1,128,090		2,742,227			46,681
$	999,708		$	40,391,464		$	173,592,605	$	435,837,759		$	9,662,128

$	999,969		$	78,107,819		$	148,580,888	$	433,962,630		$	9,903,481
	—			39,003			98,446		4,194,963			(16,036	)
	—			(41,383,021	)		3,652,238		(17,288,349	)		(142,168	)
	(261	)		3,627,663			21,261,033		14,999,740			(83,119	)
	—			—			—		(31,225	)		(30	)
$	999,708		$	40,391,464		$	173,592,605	$	435,837,759		$	9,662,128

$	949,718		$	7,541,651		$	157,742,083	$	378,488,083		$	9,102,845
	95,000			399,731			11,226,207		22,354,987			955,107
$	10.00		$	18.87		$	14.05	$	16.93		$	9.53

$	49,990		$	32,849,813		$	15,850,522	$	57,349,676		$	559,283
	5,000			1,770,896			1,185,030		3,359,468			58,704
$	10.00		$	18.55		$	13.38	$	17.07		$	9.53

	—			—			—		—			—
	—			—			—		—			—
	—			—			—		—			—
$	986,100		$	36,756,056		$	148,679,568	$	417,721,157		$	9,658,084
$	—		$	—		$	—	$	10		$	873

Annual Report 49

December 31, 2014	Lazard International Equity Select Portfolio				Lazard International Strategic Equity Portfolio

ASSETS
Investments in securities, at value		$	15,830,801		$	5,277,030,299
Foreign currency			35			848,396
Receivables for:
Capital stock sold			159,123			26,870,847
Dividends and interest			23,941			6,814,615
Investments sold			1,981			5,663,042
Amount due from Investment Manager (Note 3)			956			—
Deferred offering costs (Note 2(g))			—			—
Total assets			16,016,837			5,317,227,199

LIABILITIES
Payables for:
Management fees			—			3,399,215
Accrued distribution fees			658			334,421
Accrued directors’ fees			3			560
Capital stock redeemed			21,392			11,277,306
Investments purchased			154,243			225,978
Other accrued expenses and payables			44,012			493,217
Total liabilities			220,308			15,730,697
Net assets		$	15,796,529		$	5,301,496,502

NET ASSETS
Paid in capital		$	17,525,142		$	5,055,830,600
Undistributed (distributions in excess of) net investment income (loss)			269,267			(884,376	)
Accumulated net realized loss			(1,549,336	)		(19,139,830	)
Net unrealized appreciation (depreciation) on:
Investments			(446,099	)		266,047,505
Foreign currency			(2,445	)		(357,397	)
Net assets		$	15,796,529		$	5,301,496,502

Institutional Shares
Net assets		$	12,748,736		$	3,727,390,793
Shares of capital stock outstanding*			1,379,602			271,757,135
Net asset value, offering and redemption price per share		$	9.24		$	13.72

Open Shares
Net assets		$	3,047,793		$	1,574,105,709
Shares of capital stock outstanding*			329,390			113,872,041
Net asset value, offering and redemption price per share		$	9.25		$	13.82

Cost of investments in securities		$	16,276,900		$	5,010,982,794
Cost of foreign currency		$	35		$	847,915

* $0.001 par value, 6,450,000,000 shares authorized for the Portfolios in total.

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

50 Annual Report

Lazard			Lazard			Lazard
International Small Cap			Global Equity Select			Global Strategic
Equity Portfolio			Portfolio			Equity Portfolio

$	66,205,008		$	12,419,223		$	7,287,030
	397			—			545

	226,739			48,863			—
	99,881			9,055			5,160
	—			27,833			11,112
	—			29,198			12,711
	—			284			46,783
	66,532,025			12,534,456			7,363,341

	38,766			—			—
	4,219			62			22
	10			2			—
	117,077			16,826			—
	199			11,239			68,198
	48,746			38,626			48,235
	209,017			66,755			116,455
$	66,323,008		$	12,467,701		$	7,246,886

$	121,570,675		$	11,937,788		$	7,255,904
	(38,414	)		(21,451	)		(14,706	)
	(64,335,022	)		(28,237	)		(25,523	)

	9,133,093			579,887			31,239
	(7,324	)		(286	)		(28	)
$	66,323,008		$	12,467,701		$	7,246,886

$	46,328,917		$	12,266,416		$	7,111,579
	4,628,708			1,188,968			715,249
$	10.01		$	10.32		$	9.94

$	19,994,091		$	201,285		$	135,307
	1,993,264			19,499			13,609
$	10.03		$	10.32		$	9.94

$	57,071,915		$	11,839,336		$	7,255,791
$	408		$	—		$	546

Annual Report 51

The Lazard Funds, Inc. Statements of Operations

	Lazard				Lazard
	US Equity				US Strategic Equity
For the Period Ended December 31, 2014	Concentrated Portfolio				Portfolio

Investment Income (Loss)
Income
Dividends		$	4,410,105		$	2,341,111
Interest			753			46
Total investment income*			4,410,858			2,341,157

Expenses
Management fees (Note 3)			1,929,719			908,862
Distribution fees (Open Shares)			8,224			19,060
Custodian fees			60,208			74,153
Shareholders’ services			27,003			37,805
Administration fees			105,136			75,961
Shareholders’ reports			10,427			12,046
Registration fees			54,431			33,884
Directors’ fees and expenses			7,609			3,612
Professional services			40,521			38,766
Amortization of offering costs (Note 2(g))			—			4,583
Organization expenses			—			1,138
Other†			9,087			7,029
Total gross expenses			2,252,365			1,216,899
Management fees waived and expenses reimbursed			(6,710	)		(218,777	)
Administration and shareholders’ services fees waived			—			(6,132	)
Total net expenses			2,245,655			991,990
Net investment income (loss)			2,165,203			1,349,167

Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency
Net realized gain (loss) on:
Investments			22,982,399			16,092,029
Foreign currency			—			—
Total net realized gain (loss) on investments and foreign currency			22,982,399			16,092,029
Net change in unrealized appreciation (depreciation) on:
Investments			24,622,937			1,285,334
Foreign currency			—			—
Total net change in unrealized appreciation (depreciation) on investments and foreign currency			24,622,937			1,285,334
Net realized and unrealized gain (loss) on investments and foreign currency			47,605,336			17,377,363
Net increase (decrease) in net assets resulting from operations		$	49,770,539		$	18,726,530
* Net of foreign withholding taxes of		$	6,335		$	—
† Includes interest on line of credit of		$	—		$	193

(a)	As the Portfolio commenced operations on December 31, 2014, it did not earn any income, nor incur any expense other than professional services during the period presented.

(b)	From the Portfolio’s commencement of operations on August 29, 2014.

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

52 Annual Report

Lazard			Lazard			Lazard			Lazard			Lazard
US Small Cap Equity			US Mid Cap Equity			US Small-Mid Cap			International Equity			International Equity
Growth Portfolio (a)			Portfolio			Equity Portfolio			Portfolio			Concentrated Portfolio (b)

$	—		$	547,080		$	3,215,423		$	7,236,945		$	12,744
	—			16			—			58			17
	—			547,096			3,215,423			7,237,003			12,761

	—			295,105			2,337,362			2,247,320			15,315
	—			78,894			37,110			133,773			390
	—			51,546			101,209			165,640			24,215
	—			27,250			29,282			35,172			11,353
	—			57,871			112,331			109,930			17,841
	—			20,410			13,951			19,797			20
	—			32,620			37,244			61,868			609
	—			938			8,778			8,164			47
	9,500			39,090			41,033			44,835			35,163
	—			—			—			—			24,244
	—			—			—			—			4,033
	—			5,901			11,572			8,915			458
	9,500			609,625			2,729,872			2,835,414			133,688
	(9,469	)		(101,552	)		—			—			(99,256	)
	—			—			—			—			(14,395	)
	31			508,073			2,729,872			2,835,414			20,037
	(31	)		39,023			485,551			4,401,589			(7,276	)

	—			2,328,882			76,194,228			8,617,777			(138,054	)
	—			—			—			(207,461	)		(3,719	)
	—			2,328,882			76,194,228			8,410,316			(141,773	)

	(261	)		2,659,937			(42,407,373	)		(30,624,442	)		(83,119	)
	—			—			—			(39,011	)		(30	)
	(261	)		2,659,937			(42,407,373	)		(30,663,453	)		(83,149	)
	(261	)		4,988,819			33,786,855			(22,253,137	)		(224,922	)
$	(292	)	$	5,027,842		$	34,272,406		$	(17,851,548	)	$	(232,198	)
$	—		$	2,958		$	14,718		$	771,149		$	1,628
$	—		$	194		$	1,090		$	—		$	—

Annual Report 53

	Lazard				Lazard
	International Equity				International Strategic
For the Period Ended December 31, 2014	Select Portfolio				Equity Portfolio

Investment Income (Loss)
Income
Dividends		$	536,690		$	95,547,731
Interest			15			2,977
Total investment income*			536,705			95,550,708

Expenses
Management fees (Note 3)			170,785			33,672,636
Distribution fees (Open Shares)			8,075			3,291,969
Custodian fees			98,995			1,344,355
Shareholders’ services			26,886			976,677
Administration fees			54,020			598,970
Shareholders’ reports			7,925			424,528
Registration fees			29,615			221,728
Directors’ fees and expenses			567			123,710
Professional services			37,876			106,397
Amortization of offering costs (Note 2(g))			—			—
Organization expenses			—			—
Other†			6,579			71,272
Total gross expenses			441,323			40,832,242
Management fees waived and expenses reimbursed			(200,497	)		—
Administration and shareholders’ services fees waived			—			—
Total net expenses			240,826			40,832,242
Net investment income (loss)			295,879			54,718,466

Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency
Net realized gain (loss) on:
Investments			2,610,228			75,518,864
Foreign currency			(26,634	)		(2,237,667	)
Total net realized gain (loss) on investments and foreign currency			2,583,594			73,281,197
Net change in unrealized appreciation (depreciation) on:
Investments			(3,570,760	)		(241,847,138	)
Foreign currency			(2,966	)		(446,857	)
Total net change in unrealized appreciation (depreciation) on investments and foreign currency			(3,573,726	)		(242,293,995	)
Net realized and unrealized gain (loss) on investments and foreign currency			(990,132	)		(169,012,798	)
Net increase (decrease) in net assets resulting from operations		$	(694,253	)	$	(114,294,332	)
* Net of foreign withholding taxes of		$	57,516		$	8,110,178
† Includes interest on line of credit of		$	1,455		$	—

(a)

From the Portfolio’s commencement of operations on August 29, 2014.

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

54 Annual Report

Lazard			Lazard			Lazard
International Small Cap			Global Equity Select			Global Strategic
Equity Portfolio			Portfolio			Equity Portfolio (a)

$	1,607,519		$	157,384		$	18,511
	28			9			17
	1,607,547			157,393			18,528

	531,695			76,803			15,393
	51,276			457			83
	109,900			93,491			24,870
	28,581			29,040			11,359
	64,180			51,808			17,863
	11,113			4,340			1,385
	30,491			24,217			610
	1,988			244			65
	38,667			42,478			35,163
	—			106,343			23,199
	—			—			4,034
	6,264			4,346			458
	874,155			433,567			134,482
	(11,562	)		(302,655	)		(100,063	)
	—			(30,971	)		(14,400	)
	862,593			99,941			20,019
	744,954			57,452			(1,491	)

	5,515,318			(31,408	)		(25,522	)
	(23,547	)		(1,935	)		(230	)
	5,491,771			(33,343	)		(25,752	)

	(8,121,736	)		576,744			31,239
	(6,579	)		(410	)		(28	)
	(8,128,315	)		576,334			31,211
	(2,636,544	)		542,991			5,459
$	(1,891,590	)	$	600,443		$	3,968
$	159,379		$	8,971		$	1,288
$	281		$	172		$	—

Annual Report 55

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

	Lazard US Equity Concentrated Portfolio							Lazard US Strategic Equity Portfolio
	Year Ended				Year Ended			Year Ended			Year Ended
	December 31,				December 31,			December 31,			December 31,
	2014				2013			2014			2013

Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	2,165,203		$	2,345,216		$	1,349,167		$	1,275,781
Net realized gain on investments			22,982,399			29,171,119			16,092,029			15,343,960
Net change in unrealized appreciation (depreciation) on investments			24,622,937			17,668,016			1,285,334			9,731,533
Net increase (decrease) in net assets resulting from operations			49,770,539			49,184,351			18,726,530			26,351,274
Distributions to shareholders
From net investment income
Institutional Shares			(2,101,268	)		(2,284,658	)		(1,136,357	)		(1,407,263	)
Open Shares			(18,669	)		(13,057	)		(46,822	)		(74,902	)
R6 Shares			—			—			(146,879	)		—
From net realized gains
Institutional Shares			(31,353,490	)		(19,125,253	)		(15,206,664	)		(2,929,967	)
Open Shares			(631,686	)		(181,139	)		(902,421	)		(192,042	)
R6 Shares			—			—			(1,895,325	)		—
Net decrease in net assets resulting from distributions			(34,105,113	)		(21,604,107	)		(19,334,468	)		(4,604,174	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			87,575,985			119,589,275			21,887,406			31,619,015
Open Shares			9,687,222			4,308,999			2,073,196			5,948,214
R6 Shares			—			—			16,841,957			—
Net proceeds from reinvestment of distributions
Institutional Shares			25,161,207			15,230,240			16,322,102			4,326,965
Open Shares			638,951			180,317			722,266			214,293
R6 Shares			—			—			2,042,204			—
Cost of shares redeemed
Institutional Shares			(25,786,587	)		(55,107,495	)		(34,132,392	)		(15,093,331	)
Open Shares			(4,516,085	)		(3,193,058	)		(3,791,036	)		(8,517,223	)
R6 Shares			—			—			(3,605,237	)		—
Net increase (decrease) in net assets from capital stock transactions			92,760,693			81,008,278			18,360,466			18,497,933
Redemption fees (Note 2(i))
Institutional Shares			592			459			87			142
Open Shares			14			—			—			—
Net increase in net assets from redemption fees			606			459			87			142
Total increase (decrease) in net assets			108,426,725			108,588,981			17,752,615			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*		$	339,085,689		$	230,658,964		$	141,725,829		$	123,973,214
* Includes undistributed (distributions in excess of) net investment income (loss) of		$	(9,957	)	$	(11,715	)	$	12,725		$	—
(a) The Portfolio commenced operations on December 31, 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			6,636,759			9,739,154			1,701,553			2,789,363
Shares issued to shareholders from reinvestment of distributions			1,879,748			1,227,254			1,296,958			351,870
Shares redeemed			(1,972,465	)		(4,162,955	)		(2,665,227	)		(1,280,448	)
Net increase (decrease)			6,544,042			6,803,453			333,284			1,860,785
Shares outstanding at end of period			24,685,845			18,141,803			9,645,978			9,312,694
Open Shares
Shares outstanding at beginning of period			172,050			64,143			610,440			828,181
Shares sold			703,552			345,072			162,079			488,099
Shares issued to shareholders from reinvestment of distributions			47,190			14,437			57,177			17,379
Shares redeemed			(329,210	)		(251,602	)		(282,025	)		(723,219	)
Net increase (decrease)			421,532			107,907			(62,769	)		(217,741	)
Shares outstanding at end of period			593,582			172,050			547,671			610,440
R6 Shares*
Shares outstanding at beginning of period									—
Shares sold									1,310,124
Shares issued to shareholders from reinvestment of distributions									162,340
Shares redeemed									(269,572	)
Net increase									1,202,892
Shares outstanding at end of period									1,202,892

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

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

56 Annual Report

Lazard US Small Cap
Equity Growth Portfolio			Lazard US Mid Cap Equity Portfolio						Lazard US Small-Mid Cap Equity Portfolio
Period Ended			Year Ended			Year Ended			Year Ended			Year Ended
December 31,			December 31,			December 31,			December 31,			December 31,
2014 (a)			2014			2013			2014			2013

$	(31	)	$	39,023		$	166,862		$	485,551		$	159,503
	—			2,328,882			16,729,461			76,194,228			52,614,411

	(261	)		2,659,937			(136,345	)		(42,407,373	)		48,010,929
	(292	)		5,027,842			16,759,978			34,272,406			100,784,843

	—			(36,779	)		(71,565	)		(179,683	)		(240,294	)
	—			(69,931	)		(107,406	)		—			(11,612	)
	—			—			—			—			—

	—			—			—			(60,580,450	)		(39,984,635	)
	—			—			—			(3,449,911	)		(1,743,640	)
	—			—			—			—			—
	—			(106,710	)		(178,971	)		(64,210,044	)		(41,980,181	)

	950,000			1,371,752			1,958,798			13,693,718			10,080,594
	50,000			8,080,253			4,834,306			4,685,761			3,168,805
	—			—			—			—			—

	—			34,113			61,917			58,099,903			39,918,663
	—			67,500			103,233			3,395,032			1,720,581
	—			—			—			—			—

	—			(6,347,573	)		(27,902,776	)		(239,569,890	)		(42,186,235	)
	—			(13,112,821	)		(22,564,119	)		(5,004,869	)		(9,116,783	)
	—			—			—			—			—

	1,000,000			(9,906,776	)		(43,508,641	)		(164,700,345	)		3,585,625

	—			2,980			5,813			309			155
	—			472			651			50			842
	—			3,452			6,464			359			997
	999,708			(4,982,192	)		(26,921,170	)		(194,637,624	)		62,391,284
	—			45,373,656			72,294,826			368,230,229			305,838,945
$	999,708		$	40,391,464		$	45,373,656		$	173,592,605		$	368,230,229

$	—		$	39,003		$	106,690		$	98,446		$	—

	—			705,811			2,461,019			22,132,447			21,804,765
	95,000			74,618			139,534			881,663			644,554
	—			2,028			4,230			4,033,281			2,532,936
	—			(382,726	)		(1,898,972	)		(15,821,184	)		(2,849,808	)
	95,000			(306,080	)		(1,755,208	)		(10,906,240	)		327,682
	95,000			399,731			705,811			11,226,207			22,132,447

	—			2,063,556			3,358,349			951,721			1,237,189
	5,000			468,958			340,607			304,719			212,424
	—			4,076			7,159			247,429			113,139
	—			(765,694	)		(1,642,559	)		(318,839	)		(611,031	)
	5,000			(292,660	)		(1,294,793	)		233,309			(285,468	)
	5,000			1,770,896			2,063,556			1,185,030			951,721

Annual Report 57

								Lazard International
	Lazard International Equity Portfolio							Equity Concentrated Portfolio
	Year Ended				Year Ended				Period Ended
	December 31,				December 31,				December 31,
	2014				2013				2014 (a)

Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	4,401,589		$	2,453,644			$	(7,276	)
Net realized gain (loss) on investments and foreign currency			8,410,316			7,599,559				(141,773	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency			(30,663,453	)		24,751,149				(83,149	)
Net increase (decrease) in net assets resulting from operations			(17,851,548	)		34,804,352				(232,198	)

Distributions to shareholders
From net investment income
Institutional Shares			(1,974,980	)		(85,440	)			(5,298	)
Open Shares			(327,493			(19,238	)			—
From net realized gains
Institutional Shares			—			—				(3,894	)
Open Shares			—			—				(228	)
Net decrease in net assets resulting from distributions			(2,302,473	)		(104,678	)			(9,420	)

Capital stock transactions
Net proceeds from sales
Institutional Shares			263,655,606			68,935,302				9,454,619
Open Shares			38,101,824			19,759,582				584,263
Net proceeds from reinvestment of distributions
Institutional Shares			1,545,639			65,632				9,193
Open Shares			198,061			10,642				227
Cost of shares redeemed
Institutional Shares			(54,451,378	)		(21,128,631	)			(144,556	)
Open Shares			(20,632,372	)		(9,472,789	)			—
Net increase (decrease) in net assets from capital stock transactions			228,417,380			58,169,738				9,903,746

Redemption fees (Note 2(i))
Institutional Shares			3,106			1,593				—
Open Shares			2,479			360				—
Net increase in net assets from redemption fees			5,585			1,953				—
Total increase (decrease) in net assets			208,268,944			92,871,365				9,662,128
Net assets at beginning of period			227,568,815			134,697,450				—
Net assets at end of period*		$	435,837,759		$	227,568,815			$	9,662,128
* Includes undistributed (distributions in excess of) net investment income (loss) of		$	4,194,963		$	2,303,307			$	(16,036	)
(a) The Portfolio commenced operations on August 29, 2014.

Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			10,372,906			7,380,561				—
Shares sold			14,965,499			4,296,937				968,720
Shares issued to shareholders from reinvestment of distributions			87,671			4,074				950
Shares redeemed			(3,071,089	)		(1,308,666	)			(14,563	)
Net increase (decrease)			11,982,081			2,992,345				955,107
Shares outstanding at end of period			22,354,987			10,372,906				955,107

Open Shares
Shares outstanding at beginning of period			2,353,781			1,713,621				—
Shares sold			2,139,525			1,218,460				58,680
Shares issued to shareholders from reinvestment of distributions			11,133			654				24
Shares redeemed			(1,144,971	)		(578,954	)			—
Net increase (decrease)			1,005,687			640,160				58,704
Shares outstanding at end of period			3,359,468			2,353,781				58,704

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

58 Annual Report

Lazard International Equity Select Portfolio						Lazard International Strategic Equity Portfolio						Lazard International Small Cap Equity Portfolio
Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
2014			2013			2014			2013			2014			2013

$	295,879		$	211,954		$	54,718,466		$	19,943,838		$	744,954		$	652,354
	2,583,594			262,423			73,281,197			129,960,469			5,491,771			11,845,709

	(3,573,726	)		1,893,907			(242,293,995	)		323,682,385			(8,128,315	)		3,644,151
	(694,253	)		2,368,284			(114,294,332	)		473,586,692			(1,891,590	)		16,142,214

	(171,714	)		(29,819	)		(40,821,246	)		(15,225,169	)		(1,173,296	)		(124,377	)
	(26,153	)		(6,781	)		(13,234,085	)		(3,665,191	)		(424,610	)		(53,950	)

	—			—			(96,231,718	)		(12,783,804	)		—			—
	—			—			(40,179,844	)		(4,645,191	)		—			—
	(197,867	)		(36,600	)		(190,466,893	)		(36,319,355	)		(1,597,906	)		(178,327	)

	12,551,546			10,476,940			1,871,953,512			1,297,418,651			5,512,283			11,104,859
	281,695			580,812			1,073,366,684			559,094,341			5,540,791			2,656,728

	152,169			26,558			121,459,960			23,504,798			1,167,228			123,461
	25,938			6,511			47,953,478			7,112,344			402,060			52,095

	(18,482,909	)		(765,224	)		(405,784,975	)		(185,860,486	)		(9,423,018	)		(16,302,054	)
	(530,943	)		(460,659	)		(325,547,714	)		(125,201,877	)		(4,537,263	)		(5,480,910	)

	(6,002,504	)		9,864,938			2,383,400,945			1,576,067,771			(1,337,919	)		(7,845,821	)

	35,028			499			30,455			32,289			2,318			—
	7			—			28,268			10,305			1,263			266
	35,035			499			58,723			42,594			3,581			266
	(6,859,589	)		12,197,121			2,078,698,443			2,013,377,702			(4,823,834	)		8,118,332
	22,656,118			10,458,997			3,222,798,059			1,209,420,357			71,146,842			63,028,510
$	15,796,529		$	22,656,118		$	5,301,496,502		$	3,222,798,059		$	66,323,008		$	71,146,842

$	269,267		$	197,889		$	(884,376	)	$	(94,562	)	$	(38,414	)	$	649,765

	1,969,195			889,319			162,756,915			76,287,527			4,886,987			5,583,338
	1,296,315			1,161,787			128,369,831			98,516,379			520,710			1,135,839
	15,448			2,971			8,639,512			1,652,995			110,743			13,204
	(1,901,356	)		(84,882	)		(28,009,123	)		(13,699,986	)		(889,732	)		(1,845,394	)
	(589,593	)		1,079,876			109,000,220			86,469,388			(258,279	)		(696,351	)
	1,379,602			1,969,195			271,757,135			162,756,915			4,628,708			4,886,987

	351,946			337,112			59,609,458			26,753,257			1,859,232			2,163,219
	28,856			64,670			73,161,164			41,717,662			528,968			292,353
	2,628			725			3,380,097			496,337			38,038			5,554
	(54,040	)		(50,561	)		(22,278,678	)		(9,357,798	)		(432,974	)		(601,894	)
	(22,556	)		14,834			54,262,583			32,856,201			134,032			(303,987	)
	329,390			351,946			113,872,041			59,609,458			1,993,264			1,859,232

Annual Report 59

	Lazard Global Equity Select Portfolio						Lazard Global Strategic Equity Portfolio
	Year Ended				Period Ended			Period Ended
	December 31,				December 31,			December 31,
	2014				2013 (a)			2014 (b)

Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	57,452		$	—		$	(1,491	)
Net realized loss on investments and foreign currency			(33,343	)		—			(25,752	)
Net change in unrealized appreciation on investments and foreign currency			576,334			3,267			31,211
Net increase in net assets resulting from operations			600,443			3,267			3,968

Distributions to shareholders
From net investment income
Institutional Shares			(75,719	)		—			(12,804	)
Open Shares			(668	)		—			(241	)
From return of capital
Institutional Shares			—			—			(2,628	)
Open Shares			—			—			(49	)
Net decrease in net assets resulting from distributions			(76,387	)		—			(15,722	)

Capital stock transactions
Net proceeds from sales
Institutional Shares			11,974,387			1,900,000			7,114,369
Open Shares			189,852			100,000			136,100
Net proceeds from reinvestment of distributions
Institutional Shares			75,719			—			15,585
Open Shares			633			—			137
Cost of shares redeemed
Institutional Shares			(2,197,235	)		—			(7,551	)
Open Shares			(103,100	)		—			—
Net increase in net assets from capital stock transactions			9,940,256			2,000,000			7,258,640

Redemption fees (Note 2(i))
Institutional Shares			122			—			—
Net increase in net assets from redemption fees			122			—			—
Total increase in net assets			10,464,434			2,003,267			7,246,886
Net assets at beginning of period			2,003,267			—			—
Net assets at end of period*		$	12,467,701		$	2,003,267		$	7,246,886
* Includes undistributed (distributions in excess of) net investment income (loss) of		$	(21,451	)	$	—		$	(14,706	)
(a) The Portfolio commenced operations on December 31, 2013.
(b) The Portfolio commenced operations on August 29, 2014.

Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			190,000			—			—
Shares sold			1,204,388			190,000			714,476
Shares issued to shareholders from reinvestment of distributions			7,246			—			1,554
Shares redeemed			(212,666	)		—			(781	)
Net increase			998,968			190,000			715,249
Shares outstanding at end of period			1,188,968			190,000			715,249

Open Shares
Shares outstanding at beginning of period			10,000			—			—
Shares sold			19,438			10,000			13,596
Shares issued to shareholders from reinvestment of distributions			61			—			13
Shares redeemed			(10,000	)		—			—
Net increase			9,499			10,000			13,609
Shares outstanding at end of period			19,499			10,000			13,609

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

60 Annual Report

The Lazard Funds, Inc. Financial Highlights

LAZARD US EQUITY CONCENTRATED PORTFOLIO
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Institutional Shares
Net asset value, beginning of year	$	12.59		$	10.71		$	9.24		$	9.56		$	8.62
Income (loss) from investment operations:
Net investment income (a)		0.11			0.14			0.20			0.15			0.10
Net realized and unrealized gain (loss)		2.23			3.02			1.37			(0.30	)		0.93

Total from investment operations		2.34			3.16			1.57			(0.15	)		1.03
Less distributions from:
Net investment income		(0.09	)		(0.14	)		(0.10	)		(0.17	)		(0.09	)
Net realized gains		(1.43	)		(1.14	)		—			—			—

Total distributions		(1.52	)		(1.28	)		(0.10	)		(0.17	)		(0.09	)

Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)

Net asset value, end of year	$	13.41		$	12.59		$	10.71		$	9.24		$	9.56

Total Return (c)		18.88	%		29.59	%		16.83	%		-1.47	%		12.00	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	331,074		$	228,478		$	121,379		$	11,108		$	13,066
Ratios to average net assets:
Net expenses		0.81	%		0.85	%		0.93	%		0.75	%		0.97	%
Gross expenses		0.81	%		0.85	%		1.28	%		2.27	%		2.76	%
Net investment income		0.79	%		1.16	%		1.94	%		1.59	%		1.19	%
Portfolio turnover rate		63	%		108	%		116	%		53	%		53	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Open Shares
Net asset value, beginning of year	$	12.68		$	10.77		$	9.30		$	9.61		$	8.67
Income (loss) from investment operations:
Net investment income (a)		0.05			0.09			0.15			0.12			0.08
Net realized and unrealized gain (loss)		2.23			3.04			1.39			(0.29	)		0.93

Total from investment operations		2.28			3.13			1.54			(0.17	)		1.01
Less distributions from:
Net investment income		(0.03	)		(0.08	)		(0.07	)		(0.14	)		(0.07	)
Net realized gains		(1.43	)		(1.14	)		—			—			—

Total distributions		(1.46	)		(1.22	)		(0.07	)		(0.14	)		(0.07	)

Redemption fees		—	(b)		—			—	(b)		—	(b)		—

Net asset value, end of year	$	13.50		$	12.68		$	10.77		$	9.30		$	9.61

Total Return (c)		18.28	%		29.21	%		16.51	%		-1.77	%		11.62	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	8,011		$	2,181		$	691		$	312		$	294
Ratios to average net assets:
Net expenses		1.25	%		1.25	%		1.19	%		1.05	%		1.27	%
Gross expenses		1.46	%		1.87	%		4.84	%		6.49	%		7.28	%
Net investment income		0.37	%		0.74	%		1.51	%		1.30	%		0.88	%
Portfolio turnover rate		63	%		108	%		116	%		53	%		53	%


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

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

Annual Report 61

LAZARD US STRATEGIC EQUITY PORTFOLIO
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Institutional Shares
Net asset value, beginning of year	$	12.49		$	10.11		$	9.03		$	8.97		$	8.02
Income from investment operations:
Net investment income (a)		0.14			0.14			0.14			0.12			0.07
Net realized and unrealized gain		1.73			2.72			1.17			0.02			0.97

Total from investment operations		1.87			2.86			1.31			0.14			1.04
Less distributions from:
Net investment income		(0.13	)		(0.15	)		(0.23	)		(0.08	)		(0.09	)
Net realized gains		(1.80	)		(0.33	)		—			—			—

Total distributions		(1.93	)		(0.48	)		(0.23	)		(0.08	)		(0.09	)

Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)

Net asset value, end of year	$	12.43		$	12.49		$	10.11		$	9.03		$	8.97

Total Return (c)		15.04	%		28.38	%		14.56	%		1.65	%		13.13	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	119,941		$	116,323		$	75,327		$	64,239		$	71,207
Ratios to average net assets:
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		1.01	%
Gross expenses		0.90	%		0.93	%		0.99	%		1.00	%		1.06	%
Net investment income		1.05	%		1.21	%		1.40	%		1.29	%		0.88	%
Portfolio turnover rate		69	%		71	%		60	%		48	%		49	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Open Shares
Net asset value, beginning of year	$	12.53		$	10.14		$	9.04		$	8.97		$	8.02
Income from investment operations:
Net investment income (a)		0.10			0.11			0.11			0.09			0.05
Net realized and unrealized gain		1.74			2.73			1.16			0.03			0.97

Total from investment operations		1.84			2.84			1.27			0.12			1.02
Less distributions from:
Net investment income		(0.09	)		(0.12	)		(0.17	)		(0.05	)		(0.07	)
Net realized gains		(1.80	)		(0.33	)		—			—			—

Total distributions		(1.89	)		(0.45	)		(0.17	)		(0.05	)		(0.07	)

Redemption fees		—			—			—			—			—	(b)

Net asset value, end of year	$	12.48		$	12.53		$	10.14		$	9.04		$	8.97

Total Return (c)		14.77	%		28.04	%		14.10	%		1.42	%		12.79	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	6,833		$	7,650		$	8,401		$	8,478		$	10,024
Ratios to average net assets:
Net expenses		1.05	%		1.05	%		1.05	%		1.05	%		1.31	%
Gross expenses		1.31	%		1.33	%		1.37	%		1.36	%		1.44	%
Net investment income		0.75	%		0.95	%		1.10	%		0.99	%		0.59	%
Portfolio turnover rate		69	%		71	%		60	%		48	%		49	%

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

62 Annual Report

	For the
Selected data for a share of capital	Period 5/19/14*
stock outstanding throughout the period	to 12/31/14

R6 Shares
Net asset value, beginning of period	$	12.81
Income from investment operations:
Net investment income (a)		0.09
Net realized and unrealized gain		1.47

Total from investment operations		1.56
Less distributions from:
Net investment income		(0.14	)
Net realized gains		(1.80	)

Total distributions		(1.94	)

Net asset value, end of period	$	12.43

Total Return (c)		12.23	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	14,951
Ratios to average assets (d):
Net expenses		0.70	%
Gross expenses		1.06	%
Net investment income		1.14	%
Portfolio turnover rate		69	%


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

Annual Report 63

LAZARD US SMALL CAP EQUITY GROWTH PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	Period ended 12/31/14*

Institutional Shares
Net asset value, beginning of period	$	10.00
Income from investment operations:
Net investment loss		—	(a)
Net realized and unrealized loss		—	(a)

Total from investment operations		—	(a)

Net asset value, end of period	$	10.00

Total Return (b)		0.00	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	950
Ratios to average net assets (c):
Net expenses		1.10	%
Gross expenses		346.85	%(d)
Net investment loss		-1.10	%
Portfolio turnover rate		0	%

Selected data for a share of capital stock outstanding throughout the period	Period ended 12/31/14*

Open Shares
Net asset value, beginning of period	$	10.00
Income from investment operations:
Net investment loss		—	(a)
Net realized and unrealized loss		—	(a)

Total from investment operations		—	(a)

Net asset value, end of period	$	10.00

Total Return (b)		0.00	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	50
Ratios to average net assets (c):
Net expenses		1.40	%
Gross expenses		346.82	%(d)
Net investment loss		-1.40	%
Portfolio turnover rate		0	%

*	The Portfolio commenced operations on December 31, 2014.
(a)	Amount is less than $0.01 per share.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
(c)	Annualized for a period of less than one year.
(d)	Gross expense ratio was the result of the Portfolio being in existence for one day during the period ended December 31, 2014.

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

64 Annual Report

LAZARD US MID CAP EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Institutional Shares
Net asset value, beginning of year	$	16.58		$	12.52		$	11.87		$	12.61		$	10.31
Income (loss) from investment operations:
Net investment income (a)		0.05			0.07			0.05			0.05			0.10
Net realized and unrealized gain (loss)		2.33			4.04			0.63			(0.75	)		2.31

Total from investment operations		2.38			4.11			0.68			(0.70	)		2.41
Less distributions from:
Net investment income		(0.09	)		(0.05	)		(0.03	)		(0.04	)		(0.11	)

Total distributions		(0.09	)		(0.05	)		(0.03	)		(0.04	)		(0.11	)

Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)

Net asset value, end of year	$	18.87		$	16.58		$	12.52		$	11.87		$	12.61

Total Return (c)		14.35	%		32.95	%		5.76	%		-5.58	%		23.43	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	7,542		$	11,706		$	30,803		$	91,740		$	126,626
Ratios to average net assets:
Net expenses		1.05	%		1.05	%		0.98	%		0.93	%		0.91	%
Gross expenses		1.45	%		1.19	%		0.98	%		0.93	%		0.91	%
Net investment income		0.29	%		0.46	%		0.40	%		0.37	%		0.90	%
Portfolio turnover rate		95	%		133	%		102	%		83	%		75	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Open Shares
Net asset value, beginning of year	$	16.32		$	12.35		$	11.72		$	12.45		$	10.18
Income (loss) from investment operations:
Net investment income (a)		0.01			0.02			0.03			0.01			0.07
Net realized and unrealized gain (loss)		2.26			4.00			0.61			(0.74	)		2.28

Total from investment operations		2.27			4.02			0.64			(0.73	)		2.35
Less distributions from:
Net investment income		(0.04	)		(0.05	)		(0.01	)		—	(b)		(0.08	)

Total distributions		(0.04	)		(0.05	)		(0.01	)		—	(b)		(0.08	)

Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)

Net asset value, end of year	$	18.55		$	16.32		$	12.35		$	11.72		$	12.45

Total Return (c)		13.94	%		32.59	%		5.44	%		-5.84	%		23.09	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	32,850		$	33,668		$	41,492		$	52,048		$	69,551
Ratios to average net assets:
Net expenses		1.35	%		1.35	%		1.26	%		1.19	%		1.17	%
Gross expenses		1.57	%		1.43	%		1.26	%		1.19	%		1.17	%
Net investment income		0.05	%		0.16	%		0.21	%		0.11	%		0.66	%
Portfolio turnover rate		95	%		133	%		102	%		83	%		75	%

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

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

Annual Report 65

LAZARD US SMALL-MID CAP EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Institutional Shares
Net asset value, beginning of year	$	15.97		$	13.29		$	11.82		$	14.55		$	11.80
Income (loss) from investment operations:
Net investment income (a)		0.03			0.01			0.05			0.01			0.09
Net realized and unrealized gain (loss)		1.74			4.70			1.77			(1.45	)		2.70

Total from investment operations		1.77			4.71			1.82			(1.44	)		2.79
Less distributions from:
Net investment income		(0.01	)		(0.01	)		(0.02	)		—			(0.04	)
Net realized gains		(3.68	)		(2.02	)		(0.33	)		(1.29	)		—

Total distributions		(3.69	)		(2.03	)		(0.35	)		(1.29	)		(0.04	)

Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)

Net asset value, end of year	$	14.05		$	15.97		$	13.29		$	11.82		$	14.55

Total Return (c)		11.39	%		35.81	%		15.45	%		-9.83	%		23.67	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	157,742		$	353,565		$	289,855		$	167,042		$	238,901
Ratios to average net assets:
Net expenses		0.86	%		0.86	%		0.88	%		0.90	%		1.00	%
Gross expenses		0.86	%		0.86	%		0.88	%		0.90	%		1.00	%
Net investment income		0.17	%		0.06	%		0.41	%		0.08	%		0.68	%
Portfolio turnover rate		91	%		101	%		92	%		110	%		114	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Open Shares
Net asset value, beginning of year	$	15.41		$	12.92		$	11.52		$	14.26		$	11.56
Income (loss) from investment operations:
Net investment income (loss) (a)		(0.02	)		(0.04	)		—	(b)		(0.03	)		0.03
Net realized and unrealized gain (loss)		1.67			4.56			1.73			(1.42	)		2.67

Total from investment operations		1.65			4.52			1.73			(1.45	)		2.70
Less distributions from:
Net investment income		—			(0.01	)		—			—			—
Net realized gains		(3.68	)		(2.02	)		(0.33	)		(1.29	)		—

Total distributions		(3.68	)		(2.03	)		(0.33	)		(1.29	)		—

Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)

Net asset value, end of year	$	13.38		$	15.41		$	12.92		$	11.52		$	14.26

Total Return (c)		11.01	%		35.47	%		14.97	%		-10.09	%		23.36	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	15,851		$	14,665		$	15,984		$	20,039		$	21,620
Ratios to average net assets:
Net expenses		1.20	%		1.20	%		1.21	%		1.21	%		1.34	%
Gross expenses		1.20	%		1.20	%		1.21	%		1.21	%		1.34	%
Net investment income (loss)		-0.15	%		-0.27	%		0.01	%		-0.23	%		0.21	%
Portfolio turnover rate		91	%		101	%		92	%		110	%		114	%

(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.

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

66 Annual Report

LAZARD INTERNATIONAL EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Institutional Shares
Net asset value, beginning of year	$	17.85		$	14.78		$	12.49		$	13.81		$	13.14
Income (loss) from investment operations:
Net investment income (a)		0.26			0.23			0.25			0.27			0.21
Net realized and unrealized gain (loss)		(1.02	)		2.85			2.56			(1.25	)		0.82

Total from investment operations		(0.76	)		3.08			2.81			(0.98	)		1.03
Less distributions from:
Net investment income		(0.16	)		(0.01	)		(0.52	)		(0.34	)		(0.36	)

Total distributions		(0.16	)		(0.01	)		(0.52	)		(0.34	)		(0.36	)

Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)

Net asset value, end of year	$	16.93		$	17.85		$	14.78		$	12.49		$	13.81

Total Return (c)		-4.29	%		20.84	%		22.70	%		-7.17	%		8.04	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	378,488		$	185,199		$	109,088		$	86,880		$	127,485
Ratios to average net assets:
Net expenses		0.90	%		0.95	%		1.02	%		1.03	%		0.98	%
Gross expenses		0.90	%		0.95	%		1.02	%		1.03	%		0.98	%
Net investment income		1.46	%		1.42	%		1.85	%		1.99	%		1.63	%
Portfolio turnover rate		36	%		43	%		48	%		39	%		53	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Open Shares
Net asset value, beginning of year	$	18.00		$	14.94		$	12.59		$	13.91		$	13.24
Income (loss) from investment operations:
Net investment income (a)		0.27			0.19			0.21			0.24			0.16
Net realized and unrealized gain (loss)		(1.09	)		2.88			2.57			(1.26	)		0.83

Total from investment operations		(0.82	)		3.07			2.78			(1.02	)		0.99
Less distributions from:
Net investment income		(0.11	)		(0.01	)		(0.43	)		(0.30	)		(0.32	)

Total distributions		(0.11	)		(0.01	)		(0.43	)		(0.30	)		(0.32	)

Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)

Net asset value, end of year	$	17.07		$	18.00		$	14.94		$	12.59		$	13.91

Total Return (c)		-4.57	%		20.55	%		22.30	%		-7.42	%		7.65	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	57,350		$	42,370		$	25,610		$	18,699		$	28,670
Ratios to average net assets:
Net expenses		1.17	%		1.23	%		1.32	%		1.33	%		1.29	%
Gross expenses		1.17	%		1.23	%		1.32	%		1.33	%		1.29	%
Net investment income		1.49	%		1.18	%		1.49	%		1.78	%		1.25	%
Portfolio turnover rate		36	%		43	%		48	%		39	%		53	%

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

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

Annual Report 67

LAZARD INTERNATIONAL EQUITY CONCENTRATED PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	For the Period 8/29/14* to 12/31/14

Institutional Shares
Net asset value, beginning of period	$	10.00
Loss from investment operations:
Net investment loss (a)		(0.01	)
Net realized and unrealized loss		(0.45	)

Total from investment operations		(0.46	)
Less distributions from:
Net investment income		(0.01	)
Net realized gains		—	(b)

Total distributions		(0.01	)

Net asset value, end of period	$	9.53

Total Return (c)		-4.60	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	9,103
Ratios to average net assets (d):
Net expenses		1.15	%
Gross expenses		7.40	%
Net investment loss		-0.41	%
Portfolio turnover rate		45	%

Selected data for a share of capital stock outstanding throughout the period	For the Period 8/29/14* to 12/31/14

Open Shares
Net asset value, beginning of period	$	10.00
Loss from investment operations:
Net investment loss (a)		(0.02	)
Net realized and unrealized loss		(0.45	)

Total from investment operations		(0.47	)
Less distributions from:
Net realized gains		—	(b)

Total distributions		—	(b)

Net asset value, end of period	$	9.53

Total Return (c)		-4.66	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	559
Ratios to average net assets (d):
Net expenses		1.45	%
Gross expenses		12.39	%
Net investment loss		-0.55	%
Portfolio turnover rate		45	%

*	The Portfolio commenced operations on August 29, 2014.
(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.

68 Annual Report

LAZARD INTERNATIONAL EQUITY SELECT PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Institutional Shares
Net asset value, beginning of year	$	9.76		$	8.51		$	7.18		$	7.99		$	7.70
Income (loss) from investment operations:
Net investment income (a)		0.15			0.12			0.12			0.13			0.14
Net realized and unrealized gain (loss)		(0.58	)		1.15			1.43			(0.70	)		0.49

Total from investment operations		(0.43	)		1.27			1.55			(0.57	)		0.63
Less distributions from:
Net investment income		(0.11	)		(0.02	)		(0.22	)		(0.24	)		(0.34	)

Total distributions		(0.11	)		(0.02	)		(0.22	)		(0.24	)		(0.34	)

Redemption fees		0.02			—	(b)		—	(b)		—	(b)		—

Net asset value, end of year	$	9.24		$	9.76		$	8.51		$	7.18		$	7.99

Total Return (c)		-4.29	%		14.93	%		21.59	%		-7.14	%		8.49	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	12,749		$	19,212		$	7,571		$	4,519		$	3,614
Ratios to average net assets:
Net expenses		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Gross expenses		2.10	%		2.45	%		4.17	%		4.66	%		5.08	%
Net investment income		1.54	%		1.33	%		1.55	%		1.72	%		1.80	%
Portfolio turnover rate		80	%		36	%		46	%		55	%		75	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Open Shares
Net asset value, beginning of year	$	9.79		$	8.57		$	7.20		$	8.02		$	7.72
Income (loss) from investment operations:
Net investment income (a)		0.11			0.10			0.12			0.11			0.12
Net realized and unrealized gain (loss)		(0.57	)		1.14			1.42			(0.72	)		0.49

Total from investment operations		(0.46	)		1.24			1.54			(0.61	)		0.61
Less distributions from:
Net investment income		(0.08	)		(0.02	)		(0.17	)		(0.21	)		(0.31	)

Total distributions		(0.08	)		(0.02	)		(0.17	)		(0.21	)		(0.31	)

Redemption fees		—	(b)		—			—	(b)		—			—	(b)

Net asset value, end of year	$	9.25		$	9.79		$	8.57		$	7.20		$	8.02

Total Return (c)		-4.76	%		14.48	%		21.23	%		-7.41	%		8.29	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	3,048		$	3,444		$	2,888		$	2,463		$	3,056
Ratios to average net assets:
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Gross expenses		2.70	%		3.03	%		4.77	%		5.12	%		5.31	%
Net investment income		1.11	%		1.08	%		1.55	%		1.43	%		1.56	%
Portfolio turnover rate		80	%		36	%		46	%		55	%		75	%

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

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

Annual Report 69

LAZARD INTERNATIONAL STRATEGIC EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Institutional Shares
Net asset value, beginning of year	$	14.46		$	11.71		$	9.46		$	10.63		$	9.41
Income (loss) from investment operations:
Net investment income (a)		0.19			0.14			0.15			0.16			0.13
Net realized and unrealized gain (loss)		(0.39	)		2.79			2.21			(1.19	)		1.22

Total from investment operations		(0.20	)		2.93			2.36			(1.03	)		1.35
Less distributions from:
Net investment income		(0.16	)		(0.10	)		(0.11	)		(0.14	)		(0.13	)
Net realized gains		(0.38	)		(0.08	)		—			—			—

Total distributions		(0.54	)		(0.18	)		(0.11	)		(0.14	)		(0.13	)

Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)

Net asset value, end of year	$	13.72		$	14.46		$	11.71		$	9.46		$	10.63

Total Return (c)		-1.48	%		25.02	%		25.00	%		-9.70	%		14.43	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	3,727,391		$	2,354,068		$	893,610		$	435,411		$	356,098
Ratios to average net assets:
Net expenses		0.84	%		0.86	%		0.86	%		0.88	%		0.90	%
Gross expenses		0.84	%		0.86	%		0.86	%		0.88	%		0.90	%
Net investment income		1.28	%		1.02	%		1.45	%		1.53	%		1.30	%
Portfolio turnover rate		33	%		42	%		52	%		53	%		55	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Open Shares
Net asset value, beginning of year	$	14.57		$	11.80		$	9.53		$	10.68		$	9.43
Income (loss) from investment operations:
Net investment income (a)		0.16			0.10			0.09			0.13			0.09
Net realized and unrealized gain (loss)		(0.41	)		2.82			2.26			(1.20	)		1.24

Total from investment operations		(0.25	)		2.92			2.35			(1.07	)		1.33
Less distributions from:
Net investment income		(0.12	)		(0.07	)		(0.08	)		(0.08	)		(0.08	)
Net realized gains		(0.38	)		(0.08	)		—			—			—

Total distributions		(0.50	)		(0.15	)		(0.08	)		(0.08	)		(0.08	)

Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)

Net asset value, end of year	$	13.82		$	14.57		$	11.80		$	9.53		$	10.68

Total Return (c)		-1.78	%		24.73	%		24.74	%		-10.01	%		14.09	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	1,574,106		$	868,730		$	315,811		$	63,280		$	46,051
Ratios to average net assets:
Net expenses		1.09	%		1.10	%		1.13	%		1.16	%		1.20	%
Gross expenses		1.09	%		1.10	%		1.13	%		1.16	%		1.20	%
Net investment income		1.06	%		0.78	%		0.87	%		1.26	%		0.89	%
Portfolio turnover rate		33	%		42	%		52	%		53	%		55	%

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

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

70 Annual Report

LAZARD INTERNATIONAL SMALL CAP EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Institutional Shares
Net asset value, beginning of year	$	10.54		$	8.12		$	6.84		$	8.12		$	6.68
Income (loss) from investment operations:
Net investment income (a)		0.12			0.11			0.11			0.13			0.10
Net realized and unrealized gain (loss)		(0.40	)		2.34			1.40			(1.27	)		1.45

Total from investment operations		(0.28	)		2.45			1.51			(1.14	)		1.55
Less distributions from:
Net investment income		(0.25	)		(0.03	)		(0.23	)		(0.14	)		(0.11	)

Total distributions		(0.25	)		(0.03	)		(0.23	)		(0.14	)		(0.11	)

Redemption fees		—	(b)		—			—	(b)		—	(b)		—	(b)

Net asset value, end of year	$	10.01		$	10.54		$	8.12		$	6.84		$	8.12

Total Return (c)		-2.77	%		30.20	%		22.28	%		-14.11	%		23.55	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	46,329		$	51,508		$	45,360		$	38,879		$	47,134
Ratios to average net assets:
Net expenses		1.13	%		1.13	%		1.13	%		1.13	%		1.13	%
Gross expenses		1.15	%		1.19	%		1.18	%		1.17	%		1.21	%
Net investment income		1.13	%		1.15	%		1.40	%		1.65	%		1.39	%
Portfolio turnover rate		48	%		58	%		48	%		28	%		41	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Open Shares
Net asset value, beginning of year	$	10.56		$	8.17		$	6.86		$	8.14		$	6.70
Income (loss) from investment operations:
Net investment income (a)		0.09			0.08			0.08			0.10			0.08
Net realized and unrealized gain (loss)		(0.40	)		2.34			1.41			(1.26	)		1.45

Total from investment operations		(0.31	)		2.42			1.49			(1.16	)		1.53
Less distributions from:
Net investment income		(0.22	)		(0.03	)		(0.18	)		(0.12	)		(0.09	)

Total distributions		(0.22	)		(0.03	)		(0.18	)		(0.12	)		(0.09	)

Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)

Net asset value, end of year	$	10.03		$	10.56		$	8.17		$	6.86		$	8.14

Total Return (c)		-3.05	%		29.65	%		21.96	%		-14.36	%		23.13	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	19,994		$	19,639		$	17,669		$	17,744		$	24,984
Ratios to average net assets:
Net expenses		1.43	%		1.43	%		1.43	%		1.43	%		1.43	%
Gross expenses		1.44	%		1.48	%		1.48	%		1.46	%		1.49	%
Net investment income		0.85	%		0.85	%		1.08	%		1.34	%		1.09	%
Portfolio turnover rate		48	%		58	%		48	%		28	%		41	%

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

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

Annual Report 71

LAZARD GLOBAL EQUITY SELECT PORTFOLIO

Selected data for a share of capital	Year Ended			Period Ended
stock outstanding throughout each period	12/31/14			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		0.29			0.02

Total from investment operations		0.36			0.02
Less distributions from:
Net investment income		(0.06	)		—

Total distributions		(0.06	)		—

Redemption fees		—	(b)		—

Net asset value, end of period	$	10.32		$	10.02

Total Return (c)		3.84	%		0.00	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	12,266		$	1,903
Ratios to average net assets (d):
Net expenses		1.10	%		0.00	%
Gross expenses		4.62	%		91.25	%(e)
Net investment income		0.64	%		0.00	%
Portfolio turnover rate		64	%		0	%

Selected data for a share of capital	Year Ended			Period Ended
stock outstanding throughout each period	12/31/14			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		0.30			0.01

Total from investment operations		0.34			0.01
Less distributions from:
Net investment income		(0.03	)		—

Total distributions		(0.03	)		—

Net asset value, end of period	$	10.32		$	10.01

Total Return (c)		3.54	%		0.00	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	201		$	100
Ratios to average net assets (d):
Net expenses		1.40	%		0.00	%
Gross expenses		13.34	%		91.25	%(e)
Net investment income		0.35	%		0.00	%
Portfolio turnover rate		64	%		0	%

*	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.
(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.

72 Annual Report

LAZARD GLOBAL STRATEGIC EQUITY PORTFOLIO

	For the
Selected data for a share of capital	Period 8/29/14*
stock outstanding throughout the period	to 12/31/14

Institutional Shares
Net asset value, beginning of period	$	10.00
Loss from investment operations:
Net investment loss (a)		—	(b)
Net realized and unrealized loss		(0.04	)

Total from investment operations		(0.04	)
Less distributions from:
Net investment income		(0.02	)
Return of capital		—	(b)

Total distributions		(0.02	)

Net asset value, end of period	$	9.94

Total Return (c)		-0.36	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	7,112
Ratios to average net assets (d):
Net expenses		1.10	%
Gross expenses		7.11	%
Net investment loss		-0.08	%
Portfolio turnover rate		24	%

	For the
Selected data for a share of capital	Period 8/29/14*
stock outstanding throughout the period	to 12/31/14

Open Shares
Net asset value, beginning of period	$	10.00
Loss from investment operations:
Net investment loss (a)		(0.01	)
Net realized and unrealized loss		(0.04	)

Total from investment operations		(0.05	)
Less distributions from:
Net investment income		(0.01	)
Return of capital		—	(b)

Total distributions		(0.01	)

Net asset value, end of period	$	9.94

Total Return (c)		-0.46	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	135
Ratios to average net assets (d):
Net expenses		1.40	%
Gross expenses		24.52	%
Net investment loss		-0.32	%
Portfolio turnover rate		24	%

*	The Portfolio commenced operations on August 29, 2014.
(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.

Annual Report 73

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2014

1. Organization

cludes only the financial statements of US Equity Concentrated, US Strategic Equity, US Small Cap Equity Growth, US Mid Cap Equity, US Small-Mid Cap Equity, International Equity, International Equity Concentrated, International Equity Select, International Strategic Equity, International Small Cap Equity, Global Equity Select and Global Strategic Equity Portfolios. The financial statements of other Portfolios are presented separately.

2. Significant Accounting Policies

74 Annual Report

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 earned or capital gains (realized and unrealized) from the applicable portfolio securities.

(c) Repurchase Agreements—In connection with transactions in repurchase agreements under the terms of a Master Repurchase Agreement, the Fund’s custodian takes possession of the underlying collateral securities, the fair value of which, at all times, is required to be at least equal to the principal amount, plus accrued interest, of the repurchase transaction. Upon an event of default under the Master Repurchase Agreement, if the seller defaults, the affected Portfolio may retain the collateral in lieu of repayment. If the seller defaults, and the fair value of the collateral declines, realization of the collateral by the affected Portfolio may be delayed or limited.

At December 31, 2014, US Small-Mid Cap Equity and International Equity Portfolios had investments in repurchase agreements with a value of $4,859,000 and $10,483,000, respectively, as shown on the Portfolios of Investments. The value of the related collateral exceeded the value of the repurchase agreements at year end.

Annual Report 75

currency reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.

At December 31, 2014, the following Portfolios had unused realized capital loss carryovers 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	$	—	$	40,134,489
International Equity		—		10,129,297
International Equity Select		—		38,626
International Small Cap Equity		8,509,165		50,821,243

Portfolio	Amount		Expiring Year

International Equity	$	5,103,235		2018
International Equity Select		1,173,332		2018
International Small Cap Equity		4,306,477		2018
Global Equity Select		16,557		N/A*
Global Strategic Equity		14,861		N/A**

* Non-Expiring; Long-Term

** Non-Expiring; Short-Term

Portfolio	Post October Capital Loss Deferral			Late Year Ordinary Loss Deferral

US Equity Concentrated	$	(248,652	)	$	—
US Mid Cap Equity		(1,202,845	)		—
International Equity		(1,708,827	)		—
International Equity Concentrated		(135,093	)		—
International Equity Select		(66,373	)		—
International Strategic Equity		(18,010,059	)		(889,975	)
Global Equity Select		—			(2,560	)

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 (2011-2013), or expected to be taken in the Portfolios’ 2014 tax returns.

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, redemptions in-kind, certain redemptions treated as distributions, passive foreign investment companies and distributions from real estate investment trusts and partnerships. The book/tax differences relating to shareholder distributions resulted in reclassifications among certain capital accounts as follows:

Portfolio	Paid in Capital			Undistributed (Distributions in Excess of) Net Investment Income			Accumulated Net Realized Gain (Loss)

US Equity Concentrated	$	189		$	(43,508	)	$	43,319
US Strategic Equity		—			(6,384	)		6,384
US Small Cap Equity Growth		(31	)		31			—
US Small-Mid Cap Equity		22,403,485			(207,422	)		(22,196,063	)
International Equity		—			(207,460	)		207,460

76 Annual Report

Portfolio	Paid in Capital			Undistributed (Distributions in Excess of) Net Investment Income			Accumulated Net Realized Gain (Loss)

International Equity Concentrated	$	(265	)	$	(3,462	)	$	3,727
International Equity Select		—			(26,634	)		26,634
International Strategic Equity		—			(1,452,949	)		1,452,949
International Small Cap Equity		—			164,773			(164,773	)
Global Equity Select		(2,590	)		(2,516	)		5,106
Global Strategic Equity		(2,736	)		2,507			229

During the year ended December 31, 2014, US Small-Mid Cap Equity Portfolio processed in-kind redemptions to shareholders which resulted in $16,598,280 of net capital gain, which is attributable to the redeeming shareholders and not to the Portfolio, for tax purposes, and is included in realized gain (loss) on investments on its Statement of Changes in Net Assets.

The tax character of dividends and distributions paid during the years or periods ended December 31 were as follows:

	Ordinary Income				Long-Term Capital Gain
Portfolio	2014		2013		2014		2013

US Equity Concentrated
Institutional	$	16,978,231	$	19,345,344	$	16,723,801	$	2,077,289
Open		203,062		163,877		200,019		17,597
US Strategic Equity
Institutional		3,273,439		1,329,294		12,839,701		2,921,741
Open		220,944		110,427		866,628		242,714
R6		433,480		N/A		1,700,276		N/A
US Mid Cap Equity
Institutional		20,898		74,720		—		—
Open		85,812		104,251		—		—
US Small-Mid Cap Equity
Institutional		19,797,580		17,518,115		41,352,923		22,505,790
Open		990,532		856,245		2,069,009		1,100,031
International Equity
Institutional		1,892,023		85,040		—		—
Open		410,450		19,638		—		—

	Ordinary Income				Long-Term Capital Gain
Portfolio	2014		2013		2014		2013

International Equity Concentrated
Institutional	$	8,554	$	N/A	$	—	$	N/A
Open		866		N/A		—		N/A
International Equity Select
Institutional		165,812		29,686		—		—
Open		32,055		6,914		—		—
International Strategic Equity
Institutional		37,713,092		13,963,754		97,128,519		12,883,513
Open		15,557,522		4,926,606		40,067,760		4,545,482
International Small Cap Equity
Institutional		1,135,805		124,472		—		—
Open		462,101		53,855		—		—
Global Equity Select
Institutional		74,840		—		—		—
Open		1,547		—		—		—
Global Strategic Equity*
Institutional		12,804		N/A		—		N/A
Open		241		N/A		—		N/A

* Global Strategic Equity Portfolio had return of capital distributions of $2,677 in 2014.

At December 31, 2014, the components of distributable earnings, on a tax basis, were as follows:

Portfolio	Undistributed Ordinary Income/ Deferred Ordinary Losses			Undistributed Long-Term Capital Gain/ Deferred Capital Losses			Net Unrealized Appreciation (Depreciation) including Foreign Currency

US Equity Concentrated	$	—		$	(248,652	)	$	49,182,142
US Strategic Equity		67,416			—			20,442,852
US Small Cap Equity Growth		—			—			(261	)
US Mid Cap Equity		39,003			(41,337,334	)		3,581,976
US Small-Mid Cap Equity		880,671			2,909,693			21,221,353
International Equity		4,655,324			(16,941,359	)		14,161,164
International Equity Concentrated		15,825			(135,093	)		(122,085	)
International Equity Select		269,040			(1,278,331	)		(719,322	)
International Strategic Equity		(889,975	)		(18,010,059	)		264,565,936

Annual Report 77

Portfolio	Undistributed Ordinary Income/ Deferred Ordinary Losses				Undistributed Long-Term Capital Gain/ Deferred Capital Losses				Net Unrealized Appreciation (Depreciation) including Foreign Currency

International Small Cap Equity		$	574,421			$	(63,636,885	)		$	7,814,797
Global Equity Select			(2,560	)			(16,557	)			549,030
Global Strategic Equity			—				(14,861	)			5,843

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

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 Small Cap Equity Growth		0.90
US Mid Cap Equity		0.75
US Small-Mid Cap Equity		0.75
International Equity		0.75
International Equity Concentrated		0.90
International Equity Select		0.85
International Strategic Equity		0.75
International Small Cap Equity		0.75
Global Equity Select		0.85
Global Strategic Equity		0.85

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 Small Cap Equity Growth		1.10			1.40			N/A			2016	(b)
US Mid Cap Equity		1.05			1.35			N/A			2015
US Small-Mid Cap Equity		1.15			1.45			N/A			2015
International Equity		1.05			1.35			N/A			2015
International Equity Concentrated		1.15			1.45			N/A			2016	(c)
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	(d)
Global Strategic Equity		1.10			1.40			N/A			2016	(c)

78 Annual Report

(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, 2016.
(c)	Agreement is through August 29, 2016.
(d)	Agreement is through December 31, 2015.

During the year or period ended December 31, 2014, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:

	Institutional Shares				Open Shares
Portfolio	Management Fees Waived		Expenses Reimbursed		Management Fees Waived		Expenses Reimbursed

US Equity Concentrated	$	—	$	—	$	6,710	$	—
US Strategic Equity		171,697		—		20,049		—
US Small Cap Equity Growth		—		8,996		—		473
US Mid Cap Equity		30,458		—		71,094		—
International Equity Concentrated		13,913		72,933		1,402		11,008
International Equity Select		143,117		16,538		27,668		13,174
International Small Cap Equity		9,228		—		2,334		—
Global Equity Select		75,248		212,040		1,555		13,812
Global Strategic Equity		15,112		81,505		281		3,165

	R6 Shares
Portfolio	Management Fees Waived		Expenses Reimbursed

US Strategic Equity	$	27,031	$	—

Portfolio	Amount

International Equity Concentrated	$	6,250
Global Equity Select		18,750
Global Strategic Equity		6,250

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.

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 or share class has commenced operations. During the year or period ended December 31, 2014, BFDS waived its fees as follows:

Portfolio	Amount

US Strategic Equity	$	6,132
International Equity Concentrated		8,145
Global Equity Select		12,221
Global Strategic Equity		8,150

4. Directors’ Compensation

Annual Report 79

meeting of the Board. Such Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings. Compensation is, generally, divided among the Lazard Funds based on relative net assets. Effective January 1, 2015, the compensation for Independent Directors is comprised of: (1) an annual retainer of $190,000, (2) an additional annual fee of $20,000 to the lead Independent Director, and (3) an additional annual fee of $10,000 to the Audit Committee Chair. The Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings, although per-meeting attendance fees will no longer be paid. Compensation is, generally, divided among the Lazard Funds and Lazard Alternative Emerging Markets 1099 Fund, a closed-end registered management investment company advised by an affiliate of the Investment Manager (the “1099 Fund”), based on relative net assets. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. The Statements of Operations show the Directors’ fees and expenses paid by each Portfolio.

5. Securities Transactions and Transactions with Affiliates

Purchases and sales of portfolio securities (excluding short-term investments) for the year or period ended December 31, 2014 were as follows:

Portfolio	Purchases		Sales

US Equity Concentrated	$	182,056,250	$	157,379,216
US Strategic Equity		87,546,489		89,360,765
US Small Cap Equity Growth		986,100		—
US Mid Cap Equity		35,067,939		41,797,397
US Small-Mid Cap Equity		269,603,218		493,944,475
International Equity		331,197,867		103,038,234
International Equity Concentrated		11,704,598		2,244,844
International Equity Select		15,777,232		21,744,012
International Strategic Equity		3,551,700,779		1,399,977,714
International Small Cap Equity		33,565,794		34,521,427
Global Equity Select		15,333,220		5,490,820
Global Strategic Equity		8,207,891		1,279,952

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 is payable at the higher of the Federal Funds rate or Overnight LIBOR rate plus 1.00%, on an annualized basis. Under the Agreement, the Fund has also agreed to pay a 0.10% per annum fee on the unused portion of the commitment, payable quarterly in arrears. During the year ended December 31, 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		2,400,646		3,678,964		1.09			20
International Small Cap Equity		614,333		1,160,000		1.10			15
Global Equity Select		148,000		1,100,000		1.10			38

* 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. 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

80 Annual Report

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

9. Fair Value Measurements

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)

Changes in valuation technique may result in transfer into or out of the current assigned level within the hierarchy.

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

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 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 December 31, 2014

US Equity Concentrated Portfolio
Common Stocks*		$	279,073,535	$	—	$	—	$	279,073,535
Short-Term Investment			57,956,904		—		—		57,956,904
Total		$	337,030,439	$	—	$	—	$	337,030,439
US Strategic Equity Portfolio
Common Stocks*		$	138,021,639	$	—	$	—	$	138,021,639
Short-Term Investment			3,714,437		—		—		3,714,437
Total		$	141,736,076	$	—	$	—	$	141,736,076
US Small Cap Equity Growth Portfolio
Common Stocks*		$	985,839	$	—	$	—	$	985,839
Total		$	985,839	$	—	$	—	$	985,839

Annual Report 81

Description	Unadjusted Quoted Prices in Active Markets for Identical Investments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2014

US Mid Cap Equity Portfolio
Common Stocks*	$	38,712,681	$	—	$	—	$	38,712,681
Short-Term Investment		1,671,038		—		—		1,671,038
Total	$	40,383,719	$	—	$	—	$	40,383,719
US Small-Mid Cap Equity Portfolio
Common Stocks*	$	165,081,601	$	—	$	—	$	165,081,601
Repurchase Agreement		—		4,859,000		—		4,859,000
Total	$	165,081,601	$	4,859,000	$	—	$	169,940,601
International Equity Portfolio
Common Stocks*	$	37,941,130	$	384,296,767	$	—	$	422,237,897
Repurchase Agreement		—		10,483,000		—		10,483,000
Total	$	37,941,130	$	394,779,767	$	—	$	432,720,897
International Equity Concentrated Portfolio
Common Stocks*	$	1,358,978	$	7,879,604	$	—	$	9,238,582
Short-Term Investment		336,383		—		—		336,383
Total	$	1,695,361	$	7,879,604	$	—	$	9,574,965
International Equity Select Portfolio
Common Stocks*
China	$	221,131	$	211,576	$	—	$	432,707
Russia		62,904		102,572		—		165,476
Other		856,369		13,461,047		—		14,317,416
Short-Term Investment		915,202		—		—		915,202
Total	$	2,055,606	$	13,775,195	$	—	$	15,830,801
International Strategic Equity Portfolio
Common Stocks*	$	189,300,385	$	4,880,119,503	$	—	$	5,069,419,888
Short-Term Investment		207,610,411		—		—		207,610,411
Total	$	396,910,796	$	4,880,119,503	$	—	$	5,277,030,299
International Small Cap Equity Portfolio
Common Stocks*
Canada	$	3,748,416	$	775,069	$	—	$	4,523,485
Netherlands		573,735		1,711,510		—		2,285,245
United Kingdom		798,186		11,778,509		—		12,576,695
Other		594,324		44,481,558		—		45,075,882
Preferred Stock*		—		666,483		—		666,483
Short-Term Investment		1,077,218		—		—		1,077,218
Total	$	6,791,879	$	59,413,129	$	—	$	66,205,008
Global Equity Select Portfolio
Common Stocks*
Russia	$	106,793	$	80,043	$	—	$	186,836
Other		7,844,658		3,869,495		—		11,714,153
Short-Term Investment		518,234		—		—		518,234
Total	$	8,469,685	$	3,949,538	$	—	$	12,419,223
Global Strategic Equity Portfolio
Common Stocks*	$	3,274,800	$	3,658,855	$	—	$	6,933,655
Short-Term Investment		353,375		—		—		353,375
Total	$	3,628,175	$	3,658,855	$	—	$	7,287,030

* Please refer to Portfolios of Investments (page 24 through 44) and Notes to Portfolios of Investments (page 46) for portfolio holdings by country and industry.

82 Annual Report

The common stock (see footnote (c) in the Notes to Portfolios of Investments) included in Level 2 was valued based on reference to a similar security from the same issuer which was trading on an active market.

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 the security described in footnote (c) in the Notes to Portfolios of Investments) in the International Equity, International Equity Concentrated, International Equity Select, International Strategic Equity, International Small Cap Equity, Global Equity Select and Global Strategic 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.

At December 31, 2014, securities valued at the following amounts were transferred from Level 1 to Level 2:

Portfolio	Amount

International Equity	$	159,496,053
International Equity Select		15,532,083
International Strategic Equity		2,344,421,660
International Small Cap Equity		43,580,700
Global Equity Select		92,675

There were no other transfers into or out of Levels 1, 2 or 3 during the year or period ended December 31, 2014.

For further information regarding security characteristics see Portfolios of Investments.

10. Change of Independent Registered Public Accounting Firm

Audit Committee and approved by a majority of the Fund’s Board, including a majority of the Independent Directors. The predecessor independent registered public accounting firm’s reports on the Fund’s financial statements for each of the years ended December 31, 2013 and 2012 contained no adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. During such fiscal periods and through February 28, 2014, the date of the predecessor independent registered public accounting firm’s report on the Fund’s financial statements for the year ended December 31, 2013, there were no disagreements between the Fund and the predecessor independent registered public accounting firm on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which such disagreements, if not resolved to the satisfaction of the predecessor independent registered public accounting firm, would have caused them to make reference to the subject matter of the disagreement in connection with their reports on the financial statements for such periods.

11. Accounting Standards Update

In June 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-11 Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. This ASU requires repurchase-to-maturity transactions to be accounted as secured borrowings, as if the transferor retains effective control of the transferred assets, and new disclosure requirements. This ASU is effective for interim and annual periods in the fiscal years that begin after December 15, 2014. The Investment Manager does not expect that the adoption of this standard will have a material impact on the financial statements.

12. Subsequent Events

Annual Report 83

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

To the Shareholders and Board of Directors of The Lazard Funds, Inc.:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Small Cap Equity Growth Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard International Equity Portfolio, Lazard International Equity Concentrated Portfolio, Lazard International Equity Select Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Small Cap Equity Portfolio, Lazard Global Equity Select Portfolio and Lazard Global Strategic Equity Portfolio (collectively the “Portfolios”), twelve of the portfolios constituting The Lazard Funds, Inc. (the “Fund”) as of December 31, 2014, and the related statements of operations and changes in net assets and financial highlights for period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. For those portfolios that commenced operations prior to 2014, the financial statements for the year ended December 31, 2013 were audited by other auditors whose reports, dated February 28, 2014, expressed an unqualified opinion on those statements.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Small Cap Equity Growth Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard International Equity Portfolio, Lazard International Equity Concentrated Portfolio, Lazard International Equity Select Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Small Cap Equity Portfolio, Lazard Global Equity Select Portfolio and Lazard Global Strategic Equity Portfolio of The Lazard Funds, Inc. as of December 31, 2014, the results of their operations, changes in their net assets and the financial highlights for the period then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

New York, New York

February 28, 2015

84 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⁾:

Franci J. Blassberg (61)	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)

Kenneth S. Davidson (69)	Director (August 1995)	Davidson Capital Management Corporation, an investment manager, President (1978 – present) Landseer Advisors LLC, an investment manager, Senior Advisor (2012 – 2014) Aquiline Holdings LLC, an investment manager, Partner (2006 – 2012)

Nancy A. Eckl (52)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present) TIAA-CREF Funds (62 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)

Richard Reiss, Jr. (70)	Director	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
	(May 1991)
		O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)

Robert M. Solmson (67)	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 (54)	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)

Annual Report 85

⁽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 January 31, 2015, 38 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 the 1099 Fund.

⁽³⁾	“Independent Directors” are not “interested persons” (as defined in the Act) of the Fund.

⁽⁴⁾	Messrs. Bhutani and Carroll are “interested persons” (as defined in the Act) of the Fund because of their positions with the Investment Manager.

The Fund’s Statement of Additional Information contains further information about the Directors and is available without charge by calling 800-823-6300, or online, at www.LazardNet.com.

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 (42)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager

Stephen St. Clair (56)	Treasurer (May 2003)	Vice President of the Investment Manager

Mark R. Anderson (44)	Chief Compliance Officer (September 2014)	Chief Compliance Officer and Director of the Investment Manager (since September 2014) Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014)

Tamar Goldstein (39)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) of the Investment Manager

Cesar A. Trelles (40)	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, except Messrs. St. Clair and Trelles, serves in the same capacity for the other Lazard Funds and the 1099 Fund. Messrs. St. Clair and Trelles serve 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.

86 Annual Report

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

Tax Information

Year Ended December 31, 2014

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2014:

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

Portfolio	Percentage

Lazard US Equity Concentrated		25.48	%
Lazard US Strategic Equity		100.00
Lazard US Small Cap Equity Growth		—
Lazard US Mid Cap Equity		100.00
Lazard US Small-Mid Cap Equity		11.97
Lazard International Equity		100.00
Lazard International Equity Concentrated		100.00
Lazard International Equity Select		100.00
Lazard International Strategic Equity		100.00
Lazard International Small Cap Equity		73.68
Lazard Global Equity Select		100.00
Lazard Global Strategic Equity		100.00

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

Portfolio	Percentage

Lazard US Equity Concentrated		22.55	%
Lazard US Strategic Equity		49.37
Lazard US Small Cap Equity Growth		—
Lazard US Mid Cap Equity		100.00
Lazard US Small-Mid Cap Equity		10.54
Lazard International Equity		—
Lazard International Equity Concentrated		—
Lazard International Equity Select		—
Lazard International Strategic Equity		—
Lazard International Small Cap Equity		—
Lazard Global Equity Select		89.25
Lazard Global Strategic Equity		67.56

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

Proxy Voting

A description of the policies and procedures used to determine how proxies relating to Fund portfolio securities are voted is available (1) without charge, upon request, by call-

ing (800) 823-6300 or (2) on the Securities and Exchange Commission (the “SEC”) website at http://www.sec.gov.

Form N-Q

Board Consideration of Management Agreement

Lazard US Small Cap Equity Growth Portfolio

At a meeting of the Board held on August 6, 2014, the Board considered the approval of the Management Agreement between the Fund, on behalf of Lazard US Small Cap Equity Growth Portfolio (the “New Portfolio”), and the Investment Manager (the “New Portfolio Management Agreement”). 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

The Board previously had received and discussed information 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 34 active funds comprised approximately $28 billion of the approximately $205 billion of total assets under the management of the Investment Manager and its global affiliates as of June 30, 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 Portfolio from a member of the New Portfolio’s proposed portfolio management team, including the

Annual Report 87

strategies 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 $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, an independent provider of investment company data.

Management Fee and Expense Ratios. Representatives of the Investment Manager reviewed the proposed management fee and anticipated expense ratios for the New Portfolio and the comparisons provided by Strategic Insight, which compared the management fee and expense ratios for the New Portfolio to groups¹of comparison funds (“Groups”) and broader Morningstar categories (“Categories”), 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 for the New Portfolio was approximately at or slightly below the Group medians and slightly above the Category medians. The estimated expense ratios for the New Portfolio were at the Group medians and slightly above the Category medians. There were no client accounts managed by the Investment Manager with investment objectives, policies and strategies similar to those of the New Portfolio.

Performance. Since the New Portfolio had not yet commenced operations and, since there were no client accounts managed by the Investment Manager with investment objectives, policies and strategies similar to those of the New Portfolio, there was no performance presented for the Directors to consider.

Investment Manager Profitability and Economies of Scale

Representatives of the Investment Manager noted that because the New Portfolio is newly formed, has not commenced operations and the eventual aggregate amount of the New Portfolio’s assets was 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 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 New Portfolio 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 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 Portfolio would not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the 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

1	The New Portfolio has two comparison groups, corresponding to Open and Institutional Shares.

88 Annual Report

decision with respect to the approval of the New Portfolio Management Agreement. Based on its discussions and considerations as described above, the Board made the following conclusions and determinations with regard to the New Portfolio 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 $205 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 to approve the New Portfolio Management Agreement.

Annual Report 89

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
LZDPS020

Lazard Funds Annual Report

December 31, 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

16		Lazard US Short Duration Fixed Income Portfolio

19		Lazard Global Fixed Income Portfolio

24		Notes to Portfolios of Investments

26		Statements of Assets and Liabilities

27		Statements of Operations

28		Statements of Changes in Net Assets

30		Financial Highlights

33		Notes to Financial Statements

42		Report of Independent Registered Public Accounting Firm

43		Board of Directors and Officers Information

45		Tax and Other Information

Distributed by Lazard Asset Management Securities LLC.

Annual Report 1

The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

Sincerely,

Lazard Asset Management LLC

2 Annual Report

The Lazard Funds, Inc. Investment Overviews

US Corporate Income

After a fairly strong start to the first half of the year, high-yield market returns lagged other US fixed-income sectors such as investment grade corporates and Treasury bonds, for 2014. This occurred despite the growing US economy, lower intermediate Treasury bond yields, and strong equity market returns. Although high yield returns were modestly positive, for the first time in three years the high-yield sector failed to earn its coupon. The BofA Merrill Lynch BB-B US Cash Pay Non-Distressed High Yield^®Index (the “Cash Pay Index”) returned 3.7% for the year, underperforming the Barclays US Aggregate Bond^®Index that returned 5.8%, and the investment-grade corporate sector that returned about 7.5%. Equities materially outperformed, with the S&P 500^®Index returning 13.7%.

High yield market spreads widened by about 100 basis points (bps) during the year to 492 bps. The BB sector widened 55 bps to 332 bps and the CCC sector widened materially by 204 bps to 935 bps. Intermediate Treasury yields (5 to 7 year) decreased slightly during the year ending at 1.82%. For the year, high-yield mutual fund market flows were negative, and totaled about $20.6 billion. This compares to negative $4.7 billion for 2013. New high yield bond issuance in the US market was $356 billion for the year versus $399 billion in 2013, which was a record high. The domestic high yield market capitalization is now approximately $1.34 trillion, an all-time high. The Standard & Poor’s US speculative-grade trailing 12-month issuer default rate was 1.5% as of December 31, 2014, down from 2.1% in December 2013.

US Short Duration Fixed Income

We believe that the unresolved issues we have been highlighting throughout 2014, namely US Federal Reserve policy, geopolitical forces, and liquidity constraints, will be the primary drivers of US fixed income market returns in 2015. While the last quarter of 2014 gave us a glimpse of the potential effects of these drivers, we believe that the full force of these unresolved issues has yet to be materially experienced.

We believe the market is underestimating the Fed’s resolve to raise short-term rates away from its current zero-interest-rate policy. As we concluded last year with the end of quantitative easing (QE) in the United States, it is our viewpoint that the current short-rate environment has become unsustainable without increasing the risks of material financial dislocations. As such, we believe that the Fed has already begun to prepare for a rise in short rates and will face that

rise in the coming year with the same resolve that it applied to ending QE. As with the end of QE, we do not view a rise in short rates as a tightening in policy—we view it as a natural return to normalcy after a prolonged period of emergency measures—and we believe that the rise to normalcy in short-term rates will be a gradual one.

The need for a change in current policy is compelling as short-term interest rates are at levels not experienced since the Great Depression, while today’s economic conditions are radically different. We view the current economic environment in the United States as sufficiently positive to lead to a revival of “animal spirits.” The history of trying to run an extended zero-rate policy has serious consequences when animal spirits return to the economy, which are two-fold. First, low interest rates can lead to irrational asset lending under exuberant conditions and subsequent price bubbles. Second, the size of the monetary base represents a latent inflation risk if credit conditions ease and lending accelerates to pre-crisis levels. Of the two, the risk of asset-price bubbles is the most worrisome in our opinion. In the event of a future bubble burst, the Fed would likely need to respond with standard accommodative policy given the size of its balance sheet. However, in our view, with policy still near to zero-interest-rate levels, the Fed is out of weapons to counteract such an event.

We believe that geopolitical risks will continue to accrue to the benefit of the US consumer and US—centric industries further decoupling the US economy from the rest of the world. Thus, we expect the globally induced demand for long-dated US government bonds to be transient given the continued decoupling. We believe that US macroeconomic growth combined with a rise in short rates will lead to higher US long-term rates. Based on both relative security-specific valuations and the divergence in global growth, we remained materially concentrated in US-centric issuers and underweight Treasuries during 2014.

Liquidity in the market has been compromised by the regulatory-induced elimination of proprietary trading desks. Without their participation, we believe that the securities that have been oversubscribed by investors on a tactical basis (namely, short to intermediate US government securities for interest rate safety, and extremely high yielding US dollar-denominated securities for income) are subject to large price dislocations, as valuations have drifted far from where strategic end-buyers of those securities have historically been willing to absorb them. This re-pricing risk is

Annual Report 3

most acute in areas of the market where both interest rate safety and income concerns converge, such as short duration funds and floating-rate levered loans. Based on our observations of market liquidity, we continue to avoid securities that we find to be tactically over-subscribed. We remain focused on securities that we believe have natural liquidity and sponsorship from traditional strategic end buyers.

Global Fixed Income

Interest rates in many core countries trended modestly lower for most of 2014, leading to a fairly broad-based year-end rally. The continued sell-off in oil prices drove inflation expectations lower, as did weaker economic data outside of the United States. The outcome of the Federal Open Market Committee meeting on October 29 not only confirmed a highly anticipated end to QE in the United States, but was also more hawkish than many spectators anticipated as central bankers cited improvement in job markets. Furthermore, third-quarter US GDP expanded at a better-than-expected annualized rate of 5% as a result of big gains in consumer spending and business investment. Nevertheless, the yield on the bellwether 10-year US Treasury note closed out the year at 2.17%, near recent lows. Similar in terms of direction, although for different reasons, the yield on the 10-year Japanese government bond ended the year at a new low of 0.32%, which was driven by a disappointing 0.5% contraction in Japan’s third-quarter GDP. Overall, a significant portion of the total 2014 bond rally for core markets globally took place in the fourth quarter, with pronounced yield curve flattening as longer-maturity bond movements reflected the potential disinflationary impact of lower energy costs, especially as Organization of Petroleum Exporting Companies decided not to cut oil production at its meeting on November 27, 2014.

Additional rhetoric from European Central Bank (ECB) President Mario Draghi continued to add to market expectations that sovereign bond purchases will be part of future efforts to expand Europe’s balance sheet. Yields on German 10-year bunds traded as low as 0.54%, and were clearly part of the “sub-1% club,” but we believe may represent better value than shorter-maturity German bonds and bills that trade at negative rates. We remain skeptical about the benefit of potential ECB sovereign bond purchases and are concerned about contentious elections in Greece and Italy in early 2015. In terms of emerging markets, significant capital outflows combined with deteriorating fundamentals have punished bonds of countries such as Russia and Brazil, while

bonds of other higher-quality developing countries, such as Poland and Mexico, have performed better.

Investment-grade credit sectors registered strong returns for the year, while the energy sector was under significant pressure, which had negative implications for the high yield market, which includes approximately 16% of energy-related issues. As a result, global investment-grade bond indices outperformed high yield indices by over 500 bps in 2014 (granted the mismatch in duration also explains some of the index performance differential). Overall, high yield issuance since the end of the credit crisis in 2009 has been robust, and companies have had little problem meeting their obligations as they refinanced debt and pushed out maturities by issuing over $2.3 trillion worth of junk bonds cumulatively on a global basis. Some investors, however, fear a pickup in defaults for higher-risk companies (1) in areas of slow growth, (2) in situations where companies may have asset/liability mismatches related to currency exposure, or (3) if interest rates rise further than anticipated in the years ahead. Technical and liquidity factors are a key consideration across various sectors, and we are directly engaged with these market dynamics as we make ongoing adjustments to the Portfolio.

In contrast to generic US dollar weakness in the first half of the year, the main currency theme throughout the second half was a stronger US dollar, which we believe was a reflection of better US growth prospects compared to weaker domestic fundamentals in other countries. By year-end, the euro and Japanese yen both weakened by 12% relative to the US dollar, with the Russian ruble off by a massive 46%.

Lazard US Corporate Income Portfolio

For the year ended December 31, 2014, the Lazard US Corporate Income Portfolio’s Institutional Shares posted a total return of 3.31%, while Open Shares posted a total return of 3.01%, as compared with the 3.69% return for the Cash Pay Index.

The Portfolio underperformed in 2014 primarily due to its shorter maturity structure relative to the Cash Pay Index. Longer maturity assets posted the best returns. When interest rates fall, longer maturity securities generally move the most in price and outperform. The Portfolio’s effective duration is approximately 4.1 years as compared to the Cash Pay Index duration of 4.7 years. The Portfolio is shorter in maturity by design in an effort to protect against rising interest rates. Performance was helped by an underweight position in

4 Annual Report

energy. To a lesser extent, overweight positions in the media, consumer goods, and transportation sectors also aided performance. Performance was hurt by underweight holdings in the banking and telecommunications sectors. Overweight positions in the leisure and automotive sectors also detracted from performance. Throughout the market volatility of the past several years, we have sought to maintain our credit discipline. As of December 31, 2014, approximately 69% of the holdings by market value were rated BB- or better by Standard & Poor’s and 85% were rated B+ or better.

Lazard US Short Duration Fixed Income Portfolio

For the year ended December 31, 2014, the Lazard US Short Duration Fixed Income Portfolio’s Institutional Shares posted a total return of 0.49%, while Open Shares posted a total return of 0.38%, as compared with the 0.62% return for the BofA Merrill Lynch 1-3 Year US Treasury^®Index.

The Portfolio lagged the BofA Merrill Lynch 1-3 Year US Treasury Index for the year. Performance was helped by the outperformance of US Agency hybrid mortgage-backed securities (MBS) and US financial corporates. In contrast, overweight exposure to underperforming shorter-maturity US Treasuries detracted from performance for the period.

At the end of 2014, the Portfolio’s duration positioning was shorter based on valuations. We believe that accommodative Fed policy warrants continued bias toward curve steepening. The Portfolio was also overweight US municipals and US corporates, and as a result, we have pared our exposure to US

Agency MBS and are significantly underweight in US Treasury and Agency debt. We continue to find opportunities we believe will allow the Portfolio to capture excess yield premiums relative to convexity in the pricing of specific MBS and municipal securities.

Lazard Global Fixed Income Portfolio

For the year ended December 31, 2014, the Lazard Global Fixed Income Portfolio’s Institutional Shares posted a total return of 0.08%, while Open Shares posted a total return of -0.22%, as compared with the 0.59% return for the Barclays Capital Global Aggregate Bond^®Index.

The Portfolio’s performance was helped by positive country allocations, notably through overweight exposures to a variety of government bond markets, including those of the United Kingdom, Ireland, Mexico, the Czech Republic, Poland, and Israel. Sector selection was also additive as a result of overweight positions in high quality sovereign external debt and emerging markets external debt. Additionally, returns were helped by active currency positioning, primarily by overweighting the US dollar relative to the euro and Japanese yen. The Portfolio’s defensive duration in the United States, core Europe, and Japan detracted from performance, along with its avoidance of Spanish and Italian government bonds.

The portfolio management team utilizes forward currency contracts, both opportunistically and defensively, for hedging purposes. For the full year 2014, the use of forward currency contracts did not have a material impact on the Portfolio.

Notes to Investment Overviews:

Annual Report 5

The Lazard Funds, Inc. Performance Overviews

Lazard US Corporate Income Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Corporate Income Portfolio and Cash Pay Index*

Average Annual Total Returns*

Years Ended December 31, 2014

	One			Five			Ten
	Year			Years			Years
Institutional Shares**		3.31	%		7.63	%		6.29	%
Open Shares**		3.01	%		7.27	%		6.00	%
Cash Pay Index		3.69	%		8.68	%		6.54	%


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

	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.

	The 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 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 Cash Pay 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 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.

6 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 and BofA Merrill Lynch 1-3 Year US Treasury^®Index*

Average Annual Total Returns*

Periods Ended December 31, 2014

	One			Since
	Year			Inception†
Institutional Shares**		0.49	%		1.56	%
Open Shares**		0.38	%		1.31	%
BofA Merrill Lynch 1-3 Year US Treasury Index		0.62	%		0.75	%


*	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 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 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 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 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 February 28, 2011.

Annual Report 7

Lazard Global Fixed Income Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2014

	One			Since
	Year			Inception†
Institutional Shares**		0.08	%		-0.32	%
Open Shares**		-0.22	%		-0.62	%
Barclays Capital Global Aggregate Bond Index		0.59	%		0.48	%


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

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

Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Portfolio	Beginning Account Value 7/1/14		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 - 12/31/14		Annualized Expense Ratio During Period 7/1/14 - 12/31/14

US Corporate Income
Institutional Shares
Actual	$	1,000.00	$	993.80	$	2.76		0.55	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,022.43	$	2.80		0.55	%
Open Shares
Actual	$	1,000.00	$	990.50	$	4.26		0.85	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.92	$	4.33		0.85	%

US Short Duration Fixed Income
Institutional Shares
Actual	$	1,000.00	$	1,001.10	$	2.02		0.40	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,023.19	$	2.04		0.40	%
Open Shares
Actual	$	1,000.00	$	999.60	$	3.53		0.70	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.68	$	3.57		0.70	%

Annual Report 9

Portfolio	Beginning Account Value 7/1/14		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 - 12/31/14		Annualized Expense Ratio During Period 7/1/14 - 12/31/14

Global Fixed Income
Institutional Shares
Actual	$	1,000.00	$	955.40	$	3.94		0.80	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.17	$	4.08		0.80	%
Open Shares
Actual	$	1,000.00	$	954.00	$	5.42		1.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.66	$	5.60		1.10	%


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

10 Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Credit Rating December 31, 2014

S&P Credit Rating*	Lazard US Corporate Income Portfolio			Lazard US Short Duration Fixed Income Portfolio			Lazard Global Fixed Income Portfolio

AAA		—	%		0.5	%		17.3	%
AA+		—			55.1			6.6
AA		—			—			3.7
AA-		—			0.9			9.7
A+		—			5.8			4.7
A		—			4.3			9.4
A-		—			14.5			11.5
BBB+		—			2.8			3.1
BBB		2.2			7.4			6.3
BBB-		3.7			4.0			2.4
BB+		10.1			—			1.5
BB		21.3			—			0.5
BB-		28.3			—			1.9
B+		15.4			—			—
B		8.3			—			—
B-		5.3			—			—
CCC+		0.7			—			—
NR		—			—			2.9
NA		0.8			—			17.4
Short-Term Investments		3.9			4.7			1.1
Total Investments		100.0	%		100.0	%		100.0	%


*	Represents percentage of total investments.

Annual Report 11

The Lazard Funds, Inc. Portfolios of Investments December 31, 2014

Description	Principal Amount (000)		Value

Lazard US Corporate Income Portfolio

Corporate Bonds \| 94.8%

Aerospace & Defense \| 2.4%
Bombardier, Inc.,
7.750%, 03/15/20 (a)	$	1,600	$	1,736,000
KLX, Inc.,
5.875%, 12/01/22 (a)		1,400		1,414,000
Triumph Group, Inc.,
4.875%, 04/01/21		1,400		1,382,500
				4,532,500
Apparel & Textiles \| 0.7%
Levi Strauss & Co.,
7.625%, 05/15/20		1,300		1,365,000

Automotive \| 2.5%
Chrysler Group LLC,
8.250%, 06/15/21		1,400		1,550,500
Schaeffler Finance BV:
7.750%, 02/15/17 (a)		250		273,750
4.750%, 05/15/21 (a)		1,000		1,000,000
The Goodyear Tire & Rubber Co.,
8.250%, 08/15/20		1,775		1,881,500
				4,705,750
Building Materials \| 1.4%
Masco Corp.,
6.125%, 10/03/16		1,500		1,590,750
USG Corp.,
9.750%, 01/15/18		675		769,500
Vulcan Materials Co.,
6.500%, 12/01/16		215		228,975
				2,589,225
Cable Television \| 5.6%
Cablevision Systems Corp.,
7.750%, 04/15/18		1,500		1,650,000
CCO Holdings LLC,
5.250%, 03/15/21		1,950		1,964,625
Cequel Communications Holdings I LLC,
6.375%, 09/15/20 (a)		1,800		1,863,000
DISH DBS Corp.,
5.125%, 05/01/20		1,600		1,612,000
Unitymedia Hessen GmbH & Co. KG,
7.500%, 03/15/19 (a)		1,400		1,470,000
Virgin Media Secured Finance PLC,
5.375%, 04/15/21 (a)		1,810		1,868,825
				10,428,450

Description	Principal Amount (000)		Value

Chemicals \| 4.3%
Chemtura Corp.,
5.750%, 07/15/21	$	1,400	$	1,365,000
Eagle Spinco, Inc.,
4.625%, 02/15/21		1,400		1,326,500
Huntsman International LLC,
4.875%, 11/15/20		1,600		1,588,000
Ineos Finance PLC,
7.500%, 05/01/20 (a)		1,400		1,470,000
Mosaic Global Holdings, Inc.,
7.300%, 01/15/28		775		927,277
Tronox Finance LLC,
6.375%, 08/15/20		1,400		1,403,500
				8,080,277
Communications Equipment \| 0.8%
CommScope, Inc.,
5.000%, 06/15/21 (a)		1,500		1,477,500

Computer Services \| 2.9%
Activision Blizzard, Inc.,
5.625%, 09/15/21 (a)		1,400		1,470,000
First Data Corp.:
8.875%, 08/15/20 (a)		850		911,625
6.750%, 11/01/20 (a)		260		277,550
iGATE Corp.,
4.750%, 04/15/19		1,500		1,500,000
Nuance Communications, Inc.,
5.375%, 08/15/20 (a)		1,373		1,376,433
				5,535,608
Consumer Products \| 0.7%
First Quality Finance Co., Inc.,
4.625%, 05/15/21 (a)		1,500		1,372,500

Diversified \| 1.6%
Amsted Industries, Inc.,
5.000%, 03/15/22 (a)		1,700		1,670,250
Griffon Corp.,
5.250%, 03/01/22		1,400		1,310,750
				2,981,000
Electric Generation \| 1.6%
AES Corp.:
8.000%, 10/15/17		180		202,050
7.375%, 07/01/21		1,095		1,237,350
Calpine Corp.,
6.000%, 01/15/22 (a)		1,500		1,597,500
				3,036,900

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

12 Annual Report

Description	Principal Amount (000)		Value

Lazard US Corporate Income Portfolio (continued)

Electronics \| 0.7%
Amkor Technologies, Inc.,
6.625%, 06/01/21	$	1,400	$	1,386,000

Energy Exploration & Production \| 2.9%
California Resources Corp.,
5.500%, 09/15/21 (a)		1,500		1,282,500
Chesapeake Energy Corp.,
5.375%, 06/15/21		1,450		1,449,094
Denbury Resources, Inc.,
5.500%, 05/01/22		1,400		1,281,000
Linn Energy LLC,
6.500%, 05/15/19		1,750		1,496,250
				5,508,844
Energy Services \| 1.5%
Cie Generale de Geophysique-Veritas,
7.750%, 05/15/17		596		512,560
Hornbeck Offshore Services, Inc.,
5.000%, 03/01/21		1,600		1,312,000
PBF Holding Co. LLC,
8.250%, 02/15/20		900		904,500
				2,729,060
Environmental \| 0.9%
Clean Harbors, Inc.,
5.250%, 08/01/20		1,750		1,758,750

Financial Services \| 2.5%
Aircastle, Ltd.,
5.125%, 03/15/21		1,500		1,500,000
Icahn Enterprises LP,
6.000%, 08/01/20		1,500		1,545,300
International Lease Finance Corp.:
8.625%, 09/15/15		500		521,250
5.750%, 05/15/16		500		518,750
8.750%, 03/15/17		500		553,750
				4,639,050
Food & Beverages \| 3.9%
B&G Foods, Inc.,
4.625%, 06/01/21		1,500		1,464,150
Constellation Brands, Inc.,
7.250%, 05/15/17		950		1,049,750
HJ Heinz Co.,
4.250%, 10/15/20		1,600		1,616,000

Description	Principal Amount (000)		Value

Post Holdings, Inc.,
7.375%, 02/15/22	$	1,650	$	1,650,000
TreeHouse Foods, Inc.,
4.875%, 03/15/22		1,500		1,518,750
				7,298,650
Forest & Paper Products \| 1.8%
Cascades, Inc.,
5.500%, 07/15/22 (a)		1,500		1,492,500
Smurfit Kappa Acquisitions,
4.875%, 09/15/18 (a)		1,050		1,086,750
Smurfit Kappa Treasury Funding, Ltd.,
7.500%, 11/20/25		750		879,375
				3,458,625
Gaming \| 3.8%
Boyd Gaming Corp.,
9.125%, 12/01/18		1,350		1,383,750
GLP Capital LP,
4.875%, 11/01/20		1,500		1,518,750
MGM Resorts International,
6.625%, 12/15/21		1,000		1,050,000
Pinnacle Entertainment, Inc.,
6.375%, 08/01/21		1,250		1,287,500
Scientific Games Corp.,
8.125%, 09/15/18		350		297,500
Scientific Games International, Inc.,
6.250%, 09/01/20		750		525,000
Wynn Las Vegas LLC,
7.750%, 08/15/20		1,050		1,118,491
				7,180,991
Gas Distribution \| 5.7%
AmeriGas Finance LLC,
6.750%, 05/20/20		1,525		1,570,750
Energy Transfer Equity LP,
7.500%, 10/15/20		1,250		1,387,500
Ferrellgas Partners LP:
8.625%, 06/15/20		520		521,300
6.500%, 05/01/21		500		487,500
Kinder Morgan, Inc.:
7.000%, 06/15/17		650		716,625
5.000%, 02/15/21 (a)		1,275		1,326,451
Regency Energy Partners LP,
5.750%, 09/01/20		1,300		1,303,250
Rockies Express Pipeline LLC,
6.850%, 07/15/18 (a)		1,450		1,493,500
Suburban Propane Partners LP,
7.375%, 08/01/21		1,531		1,603,723

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

Annual Report 13

Description	Principal Amount (000)		Value

Lazard US Corporate Income Portfolio (continued)

Tesoro Logistics LP,
6.125%, 10/15/21	$	370	$	369,075
				10,779,674
Health Services \| 6.3%
Biomet, Inc.,
6.500%, 08/01/20		1,750		1,872,500
Community Health Systems, Inc.,
8.000%, 11/15/19		1,400		1,494,500
Fresenius Medical Care US Finance II, Inc.,
5.625%, 07/31/19 (a)		1,097		1,171,048
Fresenius US Finance II, Inc.,
9.000%, 07/15/15 (a)		525		540,750
Grifols Worldwide Operations, Ltd.,
5.250%, 04/01/22 (a)		1,475		1,508,482
HCA, Inc.,
6.500%, 02/15/20		1,600		1,792,800
LifePoint Hospitals, Inc.,
5.500%, 12/01/21		1,400		1,431,500
Tenet Healthcare Corp.:
4.750%, 06/01/20		700		710,500
4.375%, 10/01/21		1,250		1,240,625
				11,762,705
Leisure & Entertainment \| 3.4%
ACCO Brands Corp.,
6.750%, 04/30/20		1,750		1,831,375
Cedar Fair LP,
5.250%, 03/15/21		1,675		1,683,375
Regal Entertainment Group,
5.750%, 03/15/22		1,450		1,384,750
Six Flags Entertainment Corp.,
5.250%, 01/15/21 (a)		1,400		1,400,000
				6,299,500
Machinery \| 1.5%
Terex Corp.,
6.500%, 04/01/20		1,600		1,656,000
The Manitowoc Co., Inc.,
8.500%, 11/01/20		1,000		1,080,000
				2,736,000
Media \| 8.3%
AMC Networks, Inc.,
4.750%, 12/15/22		1,500		1,455,000
CBS Outdoor Americas Capital, Inc.,
5.250%, 02/15/22 (a)		1,500		1,511,250
Clear Channel Worldwide Holdings, Inc.,
6.500%, 11/15/22		1,750		1,802,500

Description	Principal Amount (000)		Value

Lamar Media Corp.,
5.875%, 02/01/22	$	1,685	$	1,748,187
LIN Television Corp.,
8.375%, 04/15/18		1,400		1,459,500
Nielsen Finance LLC,
5.000%, 04/15/22 (a)		1,800		1,809,000
Sinclair Television Group, Inc.,
5.375%, 04/01/21		1,900		1,885,750
Sirius XM Radio, Inc.,
5.750%, 08/01/21 (a)		1,500		1,533,750
Starz LLC,
5.000%, 09/15/19		725		730,438
WMG Acquisition Corp.,
6.000%, 01/15/21 (a)		1,620		1,620,000
				15,555,375
Metals & Mining \| 1.1%
Calcipar SA,
6.875%, 05/01/18 (a)		1,350		1,356,750
First Quantum Minerals, Ltd.,
6.750%, 02/15/20 (a)		862		780,110
				2,136,860
Packaging \| 2.5%
Reynolds Group Issuer, Inc.,
5.750%, 10/15/20		1,500		1,537,500
Sealed Air Corp.,
4.875%, 12/01/22 (a)		1,700		1,687,250
Silgan Holdings, Inc.,
5.000%, 04/01/20		1,475		1,497,125
				4,721,875
Pharmaceutical & Biotechnology \| 1.2%
Mylan, Inc.,
7.875%, 07/15/20 (a)		650		692,377
Valeant Pharmaceuticals International,
6.375%, 10/15/20 (a)		1,500		1,567,500
				2,259,877
Printing & Publishing \| 2.9%
Gannett Co., Inc.,
7.125%, 09/01/18		1,676		1,730,470
R.R. Donnelley & Sons Co.,
7.250%, 05/15/18		1,016		1,122,680
The McClatchy Co.,
9.000%, 12/15/22		1,100		1,197,625
Time, Inc.,
5.750%, 04/15/22 (a)		1,425		1,378,688
				5,429,463

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

14 Annual Report

Description	Principal Amount (000)		Value

Lazard US Corporate Income Portfolio (concluded)

Real Estate \| 1.6%
CNL Lifestyle Properties, Inc.,
7.250%, 04/15/19	$	1,600	$	1,624,000
DuPont Fabros Technology LP,
5.875%, 09/15/21		1,400		1,426,250
				3,050,250
Retail \| 0.8%
Netflix, Inc.,
5.375%, 02/01/21		1,450		1,508,000

Steel-Producers \| 2.6%
ArcelorMittal SA,
6.000%, 03/01/21		1,400		1,456,000
Steel Dynamics, Inc.,
6.125%, 08/15/19		1,800		1,890,000
United States Steel Corp.,
6.050%, 06/01/17		1,475		1,534,000
				4,880,000
Support Services \| 3.5%
Algeco Scotsman Global Finance PLC,
8.500%, 10/15/18 (a)		1,250		1,206,250
Audatex North America, Inc.,
6.000%, 06/15/21 (a)		1,400		1,442,000
Avis Budget Car Finance, Inc.,
5.125%, 06/01/22 (a)		1,600		1,616,000
The ADT Corp.,
6.250%, 10/15/21		1,400		1,438,500
United Rentals North America, Inc.,
7.375%, 05/15/20		750		810,000
				6,512,750
Technology Hardware \| 1.6%
Denali Borrower Finance Corp.,
5.625%, 10/15/20 (a)		1,400		1,456,700
NCR Corp.,
4.625%, 02/15/21		1,568		1,520,960
				2,977,660
Telecommunications \| 7.7%
CenturyLink, Inc.,
5.625%, 04/01/20		1,800		1,867,500

Description	Principal Amount (000)		Value

Equinix, Inc.,
4.875%, 04/01/20	$	1,872	$	1,862,640
Frontier Communications Corp.,
8.125%, 10/01/18		1,500		1,683,750
GCI, Inc.,
8.625%, 11/15/19		1,000		1,048,750
Intelsat Jackson Holdings, Ltd.,
7.250%, 04/01/19		1,300		1,356,875
SBA Telecommunications, Inc.,
5.750%, 07/15/20		1,500		1,526,700
Sprint Capital Corp.,
6.900%, 05/01/19		1,475		1,504,500
T-Mobile USA, Inc.,
6.250%, 04/01/21		1,850		1,893,475
Windstream Corp.,
8.125%, 09/01/18		1,575		1,634,062
				14,378,252
Transportation \| 1.6%
Hapag-Lloyd AG,
9.750%, 10/15/17 (a)		1,075		1,091,125
Teekay Corp.,
8.500%, 01/15/20		1,725		1,918,545
				3,009,670
Total Corporate Bonds
(Identified cost $176,736,284)				178,062,591

Description	Shares		Value

Short-Term Investment \| 3.8%
State Street Institutional Treasury Money Market Fund
(Identified cost $7,136,427)		7,136,427	$	7,136,427

Total Investments \| 98.6%
(Identified cost $183,872,711) (b)			$	185,199,018

Cash and Other Assets in Excess of Liabilities \| 1.4%				2,571,193

Net Assets \| 100.0%			$	187,770,211

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

Annual Report 15

Description	Principal Amount (000)		Value

Lazard US Short Duration Fixed Income Portfolio

Corporate Bonds \| 34.1%

Banking \| 5.2%
Bank of America Corp.:
3.700%, 09/01/15	$	2,310	$	2,350,309
1.500%, 10/09/15		825		828,383
3.625%, 03/17/16		700		719,667
Wells Fargo & Co.,
1.500%, 07/01/15		2,075		2,086,141
				5,984,500
Cable Television \| 2.4%
DIRECTV Holdings LLC,
3.500%, 03/01/16		2,700		2,770,427

Chemicals \| 2.0%
Albemarle Corp.,
5.100%, 02/01/15		2,300		2,307,176

Financial Services \| 19.1%
Bear Stearns Cos., LLC,
5.300%, 10/30/15		225		233,247
Citigroup, Inc.:
4.750%, 05/19/15		1,568		1,591,114
2.250%, 08/07/15		1,600		1,613,675
4.587%, 12/15/15		625		645,824
Ford Motor Credit Co. LLC,
8.000%, 12/15/16		2,030		2,271,878
JPMorgan Chase & Co.:
3.400%, 06/24/15		2,666		2,700,506
1.100%, 10/15/15		975		976,753
2.600%, 01/15/16		400		406,856
Morgan Stanley:
6.000%, 04/28/15		3,645		3,703,991
5.375%, 10/15/15		1,100		1,137,774
The Goldman Sachs Group, Inc.:
3.300%, 05/03/15		2,045		2,061,603
3.700%, 08/01/15		1,760		1,788,405
1.600%, 11/23/15		50		50,262
Western Union Co.,
5.930%, 10/01/16		2,526		2,712,131
				21,894,019

Description	Principal Amount (000)		Value

Media \| 1.9%
Viacom, Inc.,
1.250%, 02/27/15	$	2,200	$	2,201,951

Retail \| 3.1%
CVS Health Corp.,
3.250%, 05/18/15		2,736		2,762,356
Kroger Co.,
4.950%, 01/15/15		775		775,911
				3,538,267
Transportation \| 0.4%
CSX Corp.,
6.250%, 04/01/15		444		449,984

Total Corporate Bonds (Identified cost $39,205,924)				39,146,324

Municipal Bonds \| 7.1%

California \| 1.6%
California State Taxable Various Purpose:
1.050%, 02/01/16		1,175		1,181,039
5.500%, 03/01/16		575		607,350
				1,788,389
District Of Columbia \| 0.4%
District of Columbia Revenue National Public Radio Series A,
5.000%, 04/01/43 (Pre-Refunded to 04/01/15 @ $100) (c)		500		505,735

Illinois \| 0.5%
Railsplitter Illinois Tobacco Settlement Authority,
4.125%, 06/01/16		500		523,500

Kentucky \| 2.4%
Kentucky State Asset Liability Commission General Funding Revenue,
3.165%, 04/01/18		2,668		2,744,966

Maryland \| 0.4%
Washington Maryland Suburban Sanitary District Sewer Disposal,
5.000%, 06/01/20 (Pre-Refunded to 06/01/15 @ $100) (c)		500		509,820

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

16 Annual Report

Description	Principal Amount (000)		Value

Lazard US Short Duration Fixed Income Portfolio (continued)

Massachusetts \| 0.9%
Massachusetts State Construction Loan Series A,
5.000%, 03/01/17 (Pre-Refunded to 03/01/15 @ $100) (c)	$	500	$	503,710
Massachusetts State School Building Authority Sales Tax Revenue Series A,
5.000%, 08/15/17 (Pre-Refunded to 08/15/15 @ $100) (c)		500		514,675
				1,018,385
Michigan \| 0.5%
Michigan State Hospital Finance Authority Series A Trinity Health,
5.250%, 12/01/15		500		522,855

Virginia \| 0.4%
Richmond VA Public Improvement Series A,
5.000%, 07/15/17 (Pre-Refunded to 07/15/15 @ $100) (c)		500		512,665

Total Municipal Bonds (Identified cost $8,123,824)				8,126,315

US Government Securities \| 46.0%
Federal Home Loan Mortgage Corp.:
Pool# 1B4676, 3.785%, 05/01/40		990		1,048,564
Pool# 1B8709, 1.992%, 08/01/34		2,319		2,441,137
Pool# 1H2577, 2.375%, 09/01/35		1,505		1,611,578
Pool# 1Q1531, 2.329%, 04/01/38		1,178		1,256,413
Pool# 848138, 2.421%, 07/01/38		1,239		1,330,286
Pool# 848514, 2.516%, 03/01/32		2,513		2,695,729
Pool# 848517, 2.384%, 12/01/34		1,874		1,996,259
Pool# 849414, 2.385%, 07/01/35		2,404		2,568,130
Pool# G11720, 4.500%, 08/01/20		470		501,676
Pool# G13867, 5.000%, 06/01/25		577		630,479
Series 2628, Class QN, 3.750%, 06/15/32		1,353		1,402,251
Series 2976, Class LF, 0.501%, 05/15/35		1,601		1,607,769
Series 3153, Class FJ, 0.541%, 05/15/36		1,056		1,061,166
Series 3725, Class A, 3.500%, 09/15/24		452		468,463

Description	Principal Amount (000)		Value

Federal National Mortgage Association:
Pool# 725296, 2.231%, 03/01/34	$	1,065	$	1,128,783
Pool# 725429, 5.000%, 05/01/19		678		728,003
Pool# 834928, 1.940%, 07/01/35		1,627		1,722,304
Pool# 889735, 5.500%, 07/01/23		576		633,020
Pool# 889828, 5.000%, 10/01/19		450		483,532
Pool# 963058, 4.894%, 05/01/38		1,023		1,092,793
Pool# 995609, 2.363%, 04/01/35		1,236		1,323,334
Pool# AD0278, 4.269%, 09/01/39		342		366,765
Pool# AD0701, 2.137%, 02/01/37		1,451		1,546,794
Pool# AE0149, 2.326%, 12/01/36		1,219		1,300,315
Pool# AE0315, 4.500%, 02/01/21		175		184,190
Pool# AE0887, 3.260%, 09/01/40		559		595,778
Pool# AL0345, 2.351%, 11/01/35		1,176		1,251,596
Pool# AL3232, 2.820%, 02/01/40		566		598,200
Pool# AL3260, 2.239%, 07/01/38		734		784,771
Pool# AL3739, 2.299%, 07/01/38		412		438,147
Pool# AL3746, 2.318%, 01/01/37		1,375		1,469,524
Pool# AL3941, 6.000%, 03/01/24		875		946,728
Pool# AL4118, 2.274%, 05/01/35		912		978,657
Pool# AL4545, 2.313%, 05/01/39		1,197		1,276,359
Pool# AL4660, 3.230%, 11/01/41		1,226		1,301,259
Pool# AL5574, 2.317%, 12/01/40		1,807		1,931,097
Pool# AL5642, 2.344%, 05/01/39		2,514		2,684,680
Series 2005-45, Class XA,
0.510%, 06/25/35		1,840		1,849,321
Series 2006-101, Class FA,
0.590%, 10/25/36		2,148		2,162,233
Series 2007-85, Class FL,
0.710%, 09/25/37		1,054		1,065,255
Series 2009-70, Class NL,
3.000%, 08/25/19		2,186		2,248,993

Total US Government Securities (Identified cost $52,487,992)				52,712,331

US Treasury Securities \| 7.3%
US Treasury Notes:
1.375%, 11/30/15		1,780		1,797,800
2.125%, 12/31/15		6,500		6,618,319

Total US Treasury Securities (Identified cost $8,423,161)				8,416,119

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

Annual Report 17

Description	Shares		Value

Lazard US Short Duration Fixed Income Portfolio (concluded)

Short-Term Investment \| 4.7%
State Street Institutional Treasury Money Market Fund (Identified cost $5,404,589)		5,404,589	$	5,404,589

Description	Value

Total Investments \| 99.2% (Identified cost $113,645,490) (b)	$	113,805,678

Cash and Other Assets in Excess of Liabilities \| 0.8%		935,739

Net Assets \| 100.0%	$	114,741,417

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

18 Annual Report

Description	Security Currency	Principal Amount (000)		Value

Lazard Global Fixed Income Portfolio

Corporate Bonds \| 34.1%

Australia \| 2.3%
Mercedes-Benz Australia/Pacific Property, Ltd.,
4.500%, 05/18/15	AUD		80	$	65,608
Telstra Corp., Ltd.,
4.000%, 11/15/17	AUD		70		58,860
Toyota Finance Australia, Ltd.,
4.250%, 05/15/19	AUD		35		29,779
					154,247
Canada \| 4.3%
Shaw Communications, Inc.,
5.650%, 10/01/19	CAD		65		63,311
Suncor Energy, Inc.,
6.100%, 06/01/18	USD		40		44,868
The Bank of Nova Scotia,
2.125%, 09/11/19	USD		80		80,173
The Toronto-Dominion Bank:
1.824%, 04/03/17	CAD		65		56,048
2.250%, 11/05/19	USD		35		35,070
					279,470
Chile \| 1.6%
Codelco, Inc.,
3.750%, 11/04/20	USD		100		102,332

France \| 0.8%
Orange SA,
5.375%, 07/08/19	USD		50		56,136

Italy \| 1.2%
Atlantia SpA,
4.375%, 09/16/25	EUR		50		77,137

Luxembourg \| 1.1%
ArcelorMittal SA,
5.000%, 02/25/17	USD		30		31,200
HeidelbergCement Finance Luxembourg SA,
3.250%, 10/21/21	EUR		30		39,750
					70,950

Description	Security Currency	Principal Amount (000)		Value

Netherlands \| 3.7%
BMW Finance NV,
3.375%, 12/14/18	GBP		50	$	83,467
Volkswagen International Finance NV,
2.150%, 05/23/16	CNY		1,000		157,838
					241,305
United Kingdom \| 9.2%
Abbey National Treasury Services PLC,
5.125%, 04/14/21	GBP		100		185,141
BG Energy Capital PLC,
5.125%, 12/01/25	GBP		50		92,013
Centrica PLC,
7.000%, 09/19/18	GBP		50		92,488
GKN Holdings PLC,
6.750%, 10/28/19	GBP		30		55,609
Rolls-Royce PLC,
6.750%, 04/30/19	GBP		50		93,871
SSE PLC,
5.000%, 10/01/18	GBP		50		87,207
					606,329
United States \| 9.9%
AES Corp.,
7.750%, 10/15/15	USD		9		9,383
Constellation Brands, Inc.,
7.250%, 05/15/17	USD		40		44,200
Fresenius US Finance II, Inc.,
9.000%, 07/15/15	USD		20		20,600
General Electric Capital Corp.,
5.500%, 02/01/17	NZD		75		59,983
HCA, Inc.,
6.500%, 02/15/20	USD		30		33,615
JPMorgan Chase & Co.,
3.875%, 09/10/24	USD		100		100,085
Morgan Stanley,
2.500%, 01/24/19	USD		75		75,068
Nestle Holdings, Inc.:
2.500%, 07/10/17	NOK		200		27,679
2.750%, 04/15/20	NOK		340		48,403
The Goldman Sachs Group, Inc.:
5.200%, 12/17/19	NZD		75		58,728
3.625%, 01/22/23	USD		45		45,568
Valero Energy Corp.,
6.125%, 02/01/20	USD		45		51,035
Wynn Las Vegas LLC,
7.750%, 08/15/20	USD		35		37,283

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

Annual Report 19

Description	Security Currency	Principal Amount (000)		Value

Lazard Global Fixed Income Portfolio (continued)

Yum! Brands, Inc.,
3.750%, 11/01/21	USD		35	$	35,863
					647,493
Total Corporate Bonds (Identified cost $2,297,739)					2,235,399

Foreign Government Obligations \| 50.0%

Australia \| 3.6%
Queensland Treasury Corp.,
5.500%, 06/21/21	AUD		125		118,610
Western Australian Treasury Corp.,
3.000%, 06/08/16	AUD		145		119,316
					237,926
Bahamas \| 0.6%
Commonwealth of Bahamas,
6.950%, 11/20/29	USD		35		41,037

Belgium \| 3.0%
Belgium Kingdom,
4.250%, 09/28/22	EUR		125		193,535

Bermuda \| 1.7%
Government of Bermuda,
5.603%, 07/20/20	USD		100		109,500

Canada \| 6.8%
Province of Alberta,
4.000%, 12/01/19	CAD		70		66,706
Province of British Columbia,
3.700%, 12/18/20	CAD		65		61,593
Province of Ontario:
6.250%, 06/16/15	NZD		75		59,074
2.850%, 06/02/23	CAD		150		132,903
Province of Quebec,
3.500%, 07/29/20	USD		120		128,413
					448,689
Colombia \| 2.1%
Republic of Colombia:
12.000%, 10/22/15	COP		68,000		30,117
7.375%, 01/27/17	USD		100		110,750
					140,867

Description	Security Currency	Principal Amount (000)		Value

Czech Republic \| 1.0%
Czech Republic,
2.500%, 08/25/28	CZK		1,340	$	68,117

France \| 2.9%
Government of France,
4.250%, 10/25/23	EUR		120		190,214

Ireland \| 3.6%
Irish Treasury:
3.400%, 03/18/24	EUR		90		129,034
2.400%, 05/15/30	EUR		80		104,155
					233,189
Malaysia \| 2.5%
Malaysia Government Bonds:
3.394%, 03/15/17	MYR		380		108,083
3.654%, 10/31/19	MYR		190		53,919
					162,002
Mexico \| 3.6%
Mexican Bonos:
4.750%, 06/14/18	MXN		1,550		104,824
6.500%, 06/09/22	MXN		860		61,116
United Mexican States,
6.750%, 02/06/24	GBP		35		67,098
					233,038
New Zealand \| 2.2%
Auckland Council,
4.620%, 03/29/16	NZD		100		78,571
New Zealand Government Bond,
3.000%, 04/15/20	NZD		90		68,190
					146,761
Norway \| 3.5%
Norwegian Government Bond,
4.500%, 05/22/19	NOK		530		81,773
Oslo Kommune,
3.550%, 02/12/21	NOK		1,000		148,514
					230,287
Peru \| 2.0%
Peru Government International Bond,
5.700%, 08/12/24	PEN		393		131,593
Philippines \| 2.1%
Republic of Philippines,
4.950%, 01/15/21	PHP		6,000		139,161

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

20 Annual Report

Description	Security Currency	Principal Amount (000)		Value

Lazard Global Fixed Income Portfolio (continued)

Poland \| 1.3%
Republic of Poland,
3.000%, 03/17/23	USD		83	$	82,656

Qatar \| 1.7%
State of Qatar,
5.250%, 01/20/20	USD		100		112,250

Sweden \| 1.0%
Svensk Exportkredit AB,
1.875%, 12/21/18	GBP		40		63,750

United Kingdom \| 3.1%
United Kingdom Gilt,
2.250%, 09/07/23	GBP		55		89,821
United Kingdom Treasury,
1.750%, 07/22/19	GBP		70		111,900
					201,721
Vietnam \| 1.7%
Socialist Republic of Vietnam,
6.750%, 01/29/20	USD		100		112,255

Total Foreign Government Obligations (Identified cost $3,417,516)					3,278,548

Quasi Government Bonds \| 5.4%


Canada \| 3.9%
Canada Housing Trust No. 1,
1.950%, 06/15/19	CAD		115		100,560
Hydro-Quebec,
9.625%, 07/15/22	CAD		70		90,269
Ontario Electricity Financial Corp.,
10.125%, 10/15/21	CAD		50		64,386
					255,215
Germany \| 1.5%
KfW,
2.875%, 10/12/16	NOK		560		77,446
Landeskreditbank Baden-Wuerttemberg Foerderbank,
3.000%, 05/22/17	NOK		130		18,147
					95,593
Total Quasi Government Bonds (Identified cost $393,222)					350,808

Description	Security Currency	Principal Amount (000)		Value

Supranationals \| 4.5%

Corporacion Andina de Fomento,
4.375%, 06/15/22	USD		85	$	91,363
Inter-American Development Bank,
6.000%, 12/15/17	NZD		45		37,040
International Bank for Reconstruction & Development:
2.375%, 09/26/16	CNY		700		111,993
1.375%, 06/23/19	SEK		420		55,834

Total Supranationals (Identified cost $304,962)					296,230

US Municipal Bonds \| 3.5%

Alaska \| 1.4%
Alaska State Qualified School Construction Bond,
5.342%, 08/01/27	USD		75		90,062

Texas \| 2.1%
Texas State Build America Bond Series A,
4.123%, 04/01/25	USD		50		55,074
University of Texas Build America Bond Series B,
6.276%, 08/15/41	USD		70		80,959
					136,033
Total US Municipal Bonds (Identified cost $223,935)					226,095

Description	Shares		Value

Short-Term Investment \| 1.1%
State Street Institutional Treasury Money Market Fund (Identified cost $73,901)		73,901	$	73,901

Total Investments \| 98.6% (Identified cost $6,711,275) (b), (d)			$	6,460,981

Cash and Other Assets in Excess of Liabilities \| 1.4%				92,183

Net Assets \| 100.0%			$	6,553,164

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

Annual Report 21

Lazard Global Fixed Income Portfolio (continued)

Forward Currency Contracts open at December 31, 2014:

Currency	Counterparty	Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date			US $ Current Value			Unrealized Appreciation			Unrealized Depreciation

Forward Currency Purchase Contracts
CAD	RBC	02/23/15		76,300		$	65,425		$	65,598		$	173		$	—
COP	CIT	01/30/15		4,818,316			1,988			2,026			38			—
DKK	CSF	02/23/15		99,403			16,676			16,159			—			517
EUR	CIT	02/23/15		59,085			73,254			71,530			—			1,724
EUR	CIT	02/23/15		95,462			120,000			115,568			—			4,432
EUR	CIT	02/23/15		680,301			846,047			823,589			—			22,458
GBP	CIT	02/23/15		49,248			77,203			76,727			—			476
GBP	HSB	02/23/15		34,302			54,000			53,442			—			558
ILS	BNP	02/23/15		171,985			43,845			44,097			252			—
INR	HSB	01/20/15		1,543,360			24,761			24,373			—			388
INR	JPM	01/20/15		2,012,304			32,285			31,779			—			506
JPY	CIT	02/23/15		12,469,798			103,000			104,148			1,148			—
JPY	CIT	02/23/15		14,007,428			117,400			116,991			—			409
JPY	CIT	02/23/15		101,010,487			873,679			843,644			—			30,035
JPY	HSB	02/23/15		9,665,670			83,573			80,729			—			2,844
JPY	HSB	02/23/15		20,342,023			169,000			169,898			898			—
KRW	HSB	03/03/15		34,889,150			31,470			31,655			185			—
SGD	SSB	02/23/15		10,697			8,285			8,068			—			217
Total Forward Currency Purchase Contracts						$	2,741,891		$	2,680,021		$	2,694		$	64,564
Forward Currency Sale Contracts
AUD	CAN	02/23/15		43,047		$	37,295		$	35,018		$	2,277		$	—
AUD	CAN	02/23/15		87,574			75,874			71,241			4,633			—
AUD	CAN	02/23/15		212,460			184,075			172,835			11,240			—
CAD	CIT	02/23/15		258,138			226,695			221,933			4,762			—
CAD	RBC	02/23/15		354,021			310,830			304,368			6,462			—
COP	CIT	01/30/15		78,533,132			37,558			33,028			4,530			—
CZK	CIT	02/23/15		553,357			24,893			24,187			706			—
CZK	HSB	02/23/15		623,434			28,026			27,251			775			—
CZK	JPM	02/23/15		11,550			519			505			14			—
EUR	CIT	02/23/15		33,103			41,000			40,075			925			—
EUR	CIT	02/23/15		85,018			105,218			102,925			2,293			—
GBP	CIT	02/23/15		8,416			13,200			13,113			87			—
GBP	CIT	02/23/15		182,514			287,035			284,357			2,678			—
GBP	HSB	02/23/15		272,380			428,366			424,366			4,000			—
ILS	BNP	02/23/15		171,985			45,027			44,097			930			—
INR	HSB	01/20/15		1,543,360			24,183			24,373			—			190
INR	JPM	01/20/15		2,012,304			31,550			31,778			—			228
JPY	CIT	02/23/15		5,360,463			45,000			44,771			229			—
JPY	CIT	02/23/15		14,028,493			117,300			117,167			133			—
JPY	HSB	02/23/15		17,403,648			146,200			145,356			844			—
MXN	HSB	02/23/15		2,039,540			150,009			137,814			12,195			—
MXN	JPM	02/23/15		217,248			15,976			14,680			1,296			—
MYR	SCB	03/09/15		350,386			99,442			99,686			—			244
NOK	HSB	02/23/15		2,905,426			426,204			389,287			36,917			—

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

22 Annual Report

Lazard Global Fixed Income Portfolio (concluded)

Forward Currency Contracts open at December 31, 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)
NZD	BRC	02/23/15	89,801		$	70,338		$	69,721		$	617		$	—
NZD	CAN	02/23/15	74,894			58,174			58,147			27			—
NZD	CAN	02/23/15	252,200			197,571			195,804			1,767			—
PEN	CIT	01/30/15	60,581			20,432			20,204			228			—
PEN	CIT	01/30/15	162,186			55,053			54,090			963			—
PHP	HSB	03/23/15	6,167,685			137,273			137,392			—			119
SEK	CIT	02/23/15	159,504			21,497			20,464			1,033			—
Total Forward Currency Sale Contracts					$	3,461,813		$	3,360,033			102,561			781
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts											$	105,255		$	65,345

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

Annual Report 23

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2014

(a)	Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers”. At December 31, 2014, these securities amounted to 28.4% of net assets of US Corporate Income Portfolio, and are considered to be liquid.

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

Portfolio	Aggregate Cost		Aggregate Gross Unrealized Appreciation		Aggregate Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)

US Corporate Income		$183,872,711		$4,090,531		$2,764,224		$1,326,307
US Short Duration Fixed Income		113,645,490		300,965		140,777		160,188
Global Fixed Income		6,713,024		25,267		277,310		(252,043	)

(c)	Security collateralized by an amount sufficient to pay principal and interest.

(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	KRW	— South Korean Won
CAD	— Canadian Dollar	MXN	— Mexican New Peso
CNY	— Chinese Renminbi	MYR	— Malaysian Ringgit
COP	— Colombian Peso	NOK	— Norwegian Krone
CZK	— Czech Koruna	NZD	— New Zealand Dollar
DKK	— Danish Krone	PEN	— Peruvian Nuevo Sol
EUR	— Euro	PHP	— Philippine Peso
GBP	— British Pound Sterling	SEK	— Swedish Krona
ILS	— Israeli Shekel	SGD	— Singapore Dollar
INR	— Indian Rupee	USD	— United States Dollar
JPY	— Japanese Yen

Counterparty Abbreviations:
BNP	— BNP Paribas SA	HSB	— HSBC Bank USA NA
BRC	— Barclays Bank PLC	JPM	— JPMorgan Chase Bank NA
CAN	— Canadian Imperial Bank of Commerce	RBC	— Royal Bank of Canada
CIT	— Citibank NA	SCB	— Standard Chartered Bank
CSF	— Credit Suisse International	SSB	— State Street Bank and Trust Co.

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

24 Annual Report

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

Industry*	Lazard Global Fixed Income Portfolio

Aerospace & Defense		1.4	%
Automotive		6.0
Banking		6.9
Building Materials		0.6
Cable Television		1.0
Electric		3.8
Energy Exploration & Production		1.4
Energy Integrated		0.8
Energy Services		0.7
Financial Services		6.7
Food & Beverages		1.8
Gaming		0.6
Gas Utilities		1.4
Health Services		0.8
Leisure & Entertainment		0.6
Metals & Mining		2.0
Telecommunications		1.8
Transportation		1.2
Subtotal		39.5
Foreign Government Obligations		50.0
Supranationals		4.5
US Municipal Bonds		3.5
Short-Term Investment		1.1
Total Investments		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.

Annual Report 25

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2014	Lazard US Corporate Income Portfolio				Lazard US Short Duration Fixed Income Portfolio			Lazard Global Fixed Income Portfolio

ASSETS
Investments in securities, at value		$	185,199,018		$	113,805,678		$	6,460,981
Foreign currency			—			—			1,661
Receivables for:
Interest			2,824,518			705,705			81,537
Capital stock sold			19,154			324,999			—
Amount due from Investment Manager (Note 3)			—			—			11,099
Gross unrealized appreciation on forward currency contracts			—			—			105,255
Total assets			188,042,690			114,836,382			6,660,533

LIABILITIES
Payables for:
Management fees			59,547			14,011			—
Accrued distribution fees			417			13			16
Accrued directors’ fees			25			10			1
Capital stock redeemed			121,054			21,156			4,943
Dividends			30,973			14,784			4
Gross unrealized depreciation on forward currency contracts			—			—			65,345
Other accrued expenses and payables			60,463			44,991			37,060
Total liabilities			272,479			94,965			107,369
Net assets		$	187,770,211		$	114,741,417		$	6,553,164

NET ASSETS
Paid in capital		$	189,750,795		$	114,815,932		$	6,816,904
Distributions in excess of net investment income			(30,973	)		(130,213	)		(47,398	)
Accumulated net realized loss			(3,275,918	)		(104,490	)		(3,131	)
Net unrealized appreciation (depreciation) on:
Investments			1,326,307			160,188			(250,294	)
Foreign currency and forward currency contracts			—			—			37,083
Net assets		$	187,770,211		$	114,741,417		$	6,553,164

Institutional Shares
Net assets		$	185,959,465		$	114,705,022		$	6,496,889
Shares of capital stock outstanding*			37,885,592			11,477,378			698,777
Net asset value, offering and redemption price per share		$	4.91		$	9.99		$	9.30

Open Shares
Net assets		$	1,810,746		$	36,395		$	56,275
Shares of capital stock outstanding*			367,106			3,637			6,051
Net asset value, offering and redemption price per share		$	4.93		$	10.01		$	9.30

Cost of investments in securities		$	183,872,711		$	113,645,490		$	6,711,275
Cost of foreign currency		$	—		$	—		$	1,686

* $0.001 par value, 6,450,000,000 shares authorized for the Portfolios in total.

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

26 Annual Report

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2014	Lazard US Corporate Income Portfolio				Lazard US Short Duration Fixed Income Portfolio			Lazard Global Fixed Income Portfolio

Investment Income
Income
Interest*		$	11,124,248		$	1,181,920		$	185,497

Expenses
Management fees (Note 3)			1,049,293			232,170			30,108
Administration fees			88,158			68,575			52,206
Custodian fees			76,187			53,839			65,037
Professional services			44,038			48,605			40,140
Registration fees			34,534			40,271			30,347
Shareholders’ services			27,395			26,869			26,290
Shareholders’ reports			41,977			15,244			11,489
Directors’ fees and expenses			5,345			2,557			168
Distribution fees (Open Shares)			5,536			195			195
Other†			8,429			6,004			4,915
Total gross expenses			1,380,892			494,329			260,895
Management fees waived and expenses reimbursed			(324,936	)		(122,625	)		(193,739	)
Administration fees waived			—			—			(18,750	)
Total net expenses			1,055,956			371,704			48,406
Net investment income			10,068,292			810,216			137,091

Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Forward Currency Contracts
Net realized gain (loss) on:
Investments			2,785,980			(373,550	)		66,365
Foreign currency and forward currency contracts			—			—			(122,285	)
Total net realized gain (loss) on investments, foreign currency and forward currency contracts			2,785,980			(373,550	)		(55,920	)
Net change in unrealized appreciation (depreciation) on:
Investments			(6,840,555	)		(5,086	)		(188,547	)
Foreign currency and forward currency contracts			—			—			69,279
Total net change in unrealized depreciation on investments, foreign currency and forward currency contracts			(6,840,555	)		(5,086	)		(119,268	)
Net realized and unrealized loss on investments, foreign currency and forward currency contracts			(4,054,575	)		(378,636	)		(175,188	)
Net increase (decrease) in net assets resulting from operations		$	6,013,717		$	431,580		$	(38,097	)
* Net of foreign withholding taxes of		$	—		$	—		$	1,567
† Includes interest on line of credit of		$	500		$	—		$	81

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

Annual Report 27

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

	Lazard US Corporate Income Portfolio
	Year Ended December 31, 2014			Year Ended December 31, 2013


Increase (Decrease) in Net Assets
Operations
Net investment income	$	10,068,292		$	10,969,988
Net realized gain (loss) on investments, foreign currency and forward currency contracts		2,785,980			1,542,878
Net change in unrealized depreciation on investments, foreign currency and forward currency contracts		(6,840,555	)		(1,920,858	)
Net increase (decrease) in net assets resulting from operations		6,013,717			10,592,008

Distributions to shareholders
From net investment income
Institutional Shares		(9,957,360	)		(10,798,604	)
Open Shares		(110,932	)		(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		(10,068,292	)		(10,969,988	)

Capital stock transactions
Net proceeds from sales
Institutional Shares		43,782,111			34,204,684
Open Shares		893,566			703,233
Net proceeds from reinvestment of distributions
Institutional Shares		9,590,665			9,819,017
Open Shares		83,595			137,208
Cost of shares redeemed
Institutional Shares		(38,550,105	)		(51,250,191	)
Open Shares		(1,749,305	)		(2,459,966	)
Net increase (decrease) in net assets from capital stock transactions		14,050,527			(8,846,015	)

Redemption fees (Note 2(g))
Institutional Shares		230			732
Open Shares		—			—
Net increase in net assets from redemption fees		230			732
Total increase (decrease) in net assets		9,996,182			(9,223,263	)
Net assets at beginning of year		177,774,029			186,997,292
Net assets at end of year*	$	187,770,211		$	177,774,029
* Includes distributions in excess of net investment income of	$	(30,973	)	$	(33,853	)

Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		34,990,674			36,441,591
Shares sold		8,712,871			6,823,132
Shares issued to shareholders from reinvestment of distributions		1,914,270			1,961,687
Shares redeemed		(7,732,223	)		(10,235,736	)
Net increase (decrease)		2,894,918			(1,450,917	)
Shares outstanding at end of year		37,885,592			34,990,674

Open Shares
Shares outstanding at beginning of year		520,621			842,613
Shares sold		176,995			139,453
Shares issued to shareholders from reinvestment of distributions		16,577			27,243
Shares redeemed		(347,087	)		(488,688	)
Net increase (decrease)		(153,515	)		(321,992	)
Shares outstanding at end of year		367,106			520,621

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

28 Annual Report

Lazard US Short Duration Fixed Income Portfolio								Lazard Global Fixed Income Portfolio
Year Ended December 31, 2014				Year Ended December 31, 2013				Year Ended December 31, 2014				Year Ended December 31, 2013

	$	810,216			$	364,660			$	137,091			$	129,697
		(373,550	)			(247,754	)			(55,920	)			(221,082	)

		(5,086	)			(58,328	)			(119,268	)			(145,526	)
		431,580				58,578				(38,097	)			(236,911	)

		(444,786	)			(363,417	)			(103,110	)			—
		(373	)			(1,243	)			(1,346	)			—

		—				(145,399	)			—				(6,049	)
		—				(1,132	)			—				(54	)

		(365,461	)			—				(32,214	)			(122,444	)
		(307	)			—				(421	)			(1,085	)
		(810,927	)			(511,191	)			(137,091	)			(129,632	)

		58,139,157				60,022,280				3,151,289				2,134,814
		9,999				526,200				22,418				3,658

		684,703				409,379				135,496				127,668
		421				2,368				1,530				1,139

		(11,824,848	)			(11,620,537	)			(2,138,901	)			(1,190,893	)
		(302,038	)			(204,084	)			(22,096	)			—
		46,707,394				49,135,606				1,149,736				1,076,386

		—				3				—				2
		—				—				30				—
		—				3				30				2
		46,328,047				48,682,996				974,578				709,845
		68,413,370				19,730,374				5,578,586				4,868,741
	$	114,741,417			$	68,413,370			$	6,553,164			$	5,578,586
	$	(130,213	)		$	(96,446	)		$	(47,398	)		$	(22,169	)

		6,787,754				1,913,691				580,570				473,673
		5,801,329				5,968,576				326,904				216,183
		68,339				40,621				14,115				13,253
		(1,180,044	)			(1,135,134	)			(222,812	)			(122,539	)
		4,689,624				4,874,063				118,207				106,897
		11,477,378				6,787,754				698,777				580,570

		32,684				405				5,931				5,426
		996				52,360				2,345				387
		42				236				159				118
		(30,085	)			(20,317	)			(2,384	)			—
		(29,047	)			32,279				120				505
		3,637				32,684				6,051				5,931

Semi-Annual Report 29

The Lazard Funds, Inc. Financial Highlights

LAZARD US CORPORATE INCOME PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Institutional Shares
Net asset value, beginning of year	$	5.01		$	5.01		$	4.78		$	4.88		$	4.70
Income (loss) from investment operations:
Net investment income (a)		0.26			0.30			0.33			0.35			0.35
Net realized and unrealized gain (loss)		(0.09	)		—	(b)		0.23			(0.10	)		0.18

Total from investment operations		0.17			0.30			0.56			0.25			0.53
Less distributions from:
Net investment income		(0.27	)		(0.30	)		(0.33	)		(0.35	)		(0.35	)

Total distributions		(0.27	)		(0.30	)		(0.33	)		(0.35	)		(0.35	)

Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)

Net asset value, end of year	$	4.91		$	5.01		$	5.01		$	4.78		$	4.88

Total Return (c)		3.31	%		6.17	%		12.02	%		5.17	%		11.78	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	185,959		$	175,154		$	182,749		$	151,278		$	112,427
Ratios to average net assets:
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Gross expenses		0.71	%		0.73	%		0.71	%		0.73	%		0.80	%
Net investment income		5.28	%		6.00	%		6.67	%		7.13	%		7.38	%
Portfolio turnover rate		28	%		22	%		26	%		27	%		25	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Open Shares
Net asset value, beginning of year	$	5.03		$	5.04		$	4.80		$	4.90		$	4.73
Income (loss) from investment operations:
Net investment income (a)		0.25			0.29			0.32			0.33			0.34
Net realized and unrealized gain (loss)		(0.10	)		(0.01	)		0.24			(0.10	)		0.17

Total from investment operations		0.15			0.28			0.56			0.23			0.51
Less distributions from:
Net investment income		(0.25	)		(0.29	)		(0.32	)		(0.33	)		(0.34	)

Total distributions		(0.25	)		(0.29	)		(0.32	)		(0.33	)		(0.34	)

Redemption fees		—			—			—	(b)		—	(b)		—	(b)

Net asset value, end of year	$	4.93		$	5.03		$	5.04		$	4.80		$	4.90

Total Return (c)		3.01	%		5.64	%		11.89	%		4.89	%		11.19	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	1,811		$	2,620		$	4,249		$	11,602		$	26,266
Ratios to average net assets:
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Gross expenses		1.55	%		1.41	%		1.24	%		1.08	%		1.13	%
Net investment income		5.00	%		5.69	%		6.37	%		6.72	%		7.05	%
Portfolio turnover rate		28	%		22	%		26	%		27	%		25	%

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

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

30 Annual Report

LAZARD US SHORT DURATION FIXED INCOME PORTFOLIO

										For the Period
Selected data for a share of capital	Year Ended									2/28/11* to
stock outstanding throughout each period	12/31/14			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)		0.09			0.11			0.14			0.17
Net realized and unrealized gain (loss)		(0.04	)		(0.25	)		0.12			0.27

Total from investment operations		0.05			(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	)
Return of capital		(0.04	)		—			—			—

Total distributions		(0.09	)		(0.14	)		(0.18	)		(0.21	)

Redemption fees		—			—	(b)		—	(b)		—	(b)

Net asset value, end of period	$	9.99		$	10.03		$	10.31		$	10.23

Total Return (c)		0.49	%		-1.39	%		2.54	%		4.46	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	114,705		$	68,086		$	19,726		$	11,594
Ratios to average net assets (d):
Net expenses		0.40	%		0.40	%		0.40	%		0.40	%
Gross expenses		0.52	%		0.90	%		1.41	%		3.09	%
Net investment income		0.87	%		1.06	%		1.34	%		1.97	%
Portfolio turnover rate		46	%		161	%		77	%		60	%

										For the Period
Selected data for a share of capital	Year Ended									2/28/11* to
stock outstanding throughout each period	12/31/14			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)		0.06			0.06			0.14			0.14
Net realized and unrealized gain (loss)		(0.02	)		(0.23	)		0.09			0.28

Total from investment operations		0.04			(0.17	)		0.23			0.42
Less distributions from:
Net investment income		(0.02	)		(0.08	)		(0.11	)		(0.15	)
Net realized gains		—			(0.03	)		(0.04	)		(0.04	)
Return of capital		(0.04	)		—			—			—

Total distributions		(0.06	)		(0.11	)		(0.15	)		(0.19	)

Net asset value, end of period	$	10.01		$	10.03		$	10.31		$	10.23

Total Return (c)		0.38	%		-1.70	%		2.24	%		4.20	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	36		$	328		$	4		$	103
Ratios to average net assets (d):
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%
Gross expenses		17.62	%		8.10	%		38.11	%		18.49	%
Net investment income		0.60	%		0.65	%		1.32	%		1.69	%
Portfolio turnover rate		46	%		161	%		77	%		60	%

*	The Portfolio commenced operations on February 28, 2011.
(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	A period of less than one year is not annualized.
(d)	Annualized for a period of less than one year.

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

Annual Report 31

LAZARD GLOBAL FIXED INCOME PORTFOLIO

							For the Period
Selected data for a share of capital	Year Ended						3/30/12* to
stock outstanding throughout each period	12/31/14			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)		0.22			0.23			0.17
Net realized and unrealized gain (loss)		(0.21	)		(0.65	)		0.16

Total from investment operations		0.01			(0.42	)		0.33
Less distributions from:
Net investment income		(0.17	)		—			(0.07	)
Net realized gains		—			(0.01	)		—
Return of capital		(0.05	)		(0.22	)		(0.10	)

Total distributions		(0.22	)		(0.23	)		(0.17	)

Redemption fees		—			—	(b)		—

Net asset value, end of period	$	9.30		$	9.51		$	10.16

Total Return (c)		0.08	%		-4.13	%		3.30	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	6,497		$	5,522		$	4,814
Ratios to average net assets (d):
Net expenses		0.80	%		0.80	%		0.80	%
Gross expenses		4.12	%		4.94	%		8.81	%
Net investment income		2.28	%		2.38	%		2.24	%
Portfolio turnover rate		78	%		66	%		47	%

							For the Period
Selected data for a share of capital	Year Ended						3/30/12* to
stock outstanding throughout each period	12/31/14			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)		0.19			0.20			0.15
Net realized and unrealized gain (loss)		(0.21	)		(0.65	)		0.16

Total from investment operations		(0.02	)		(0.45	)		0.31
Less distributions from:
Net investment income		(0.14	)		—			(0.06	)
Net realized gains		—			(0.01	)		—
Return of capital		(0.05	)		(0.19	)		(0.09	)

Total distributions		(0.19	)		(0.20	)		(0.15	)

Redemption fees		—	(b)		—			—

Net asset value, end of period	$	9.30		$	9.51		$	10.16

Total Return (c)		-0.22	%		-4.41	%		3.08	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	56		$	56		$	55
Ratios to average net assets (d):
Net expenses		1.10	%		1.10	%		1.10	%
Gross expenses		20.84	%		28.86	%		26.46	%
Net investment income		2.01	%		2.09	%		2.02	%
Portfolio turnover rate		78	%		66	%		47	%

*	The Portfolio commenced operations on March 30, 2012.
(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	A period of less than one year is not annualized.
(d)	Annualized for a period of less than one year.

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

32 Annual Report

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2014

1. Organization

operations as of December 31, 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.

2. Significant Accounting Policies

(a) Valuation of Investments—Net asset value (“NAV”) per share for each class of each Portfolio is determined 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.

Annual Report 33

(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.

gains concurrent with the recognition of income earned 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.

34 Annual Report

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

At December 31, 2014, the following Portfolios had unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains as follows:

Portfolio	Amount		Expiring Year

US Corporate Income		$3,275,918		2017
US Short Duration Fixed Income		104,490		N/A*

*	Non-Expiring; Short-Term

Portfolio	Past October Capital Loss Deferral		Late Year Ordinary Loss Deferral

US Short Duration Fixed Income	$	—	$	79,919
Global Fixed Income		1,384		—

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 (2011-2013), or expected to be taken in the Portfolios’ 2014 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 and fixed income transactions, wash sales, consent fee income and paydown gain/loss. The book/tax differences relating to shareholder distributions resulted in reclassifications among certain capital accounts as follows:

Portfolio	Paid in Capital				Undistributed (Distributions in Excess of) Net Investment Income				Accumulated Net Realized Loss

US Corporate Income		$	(15,380	)		$	2,880			$	12,500
US Short Duration Fixed Income			(365,768	)			(33,056	)			398,824
Global Fixed Income			(32,635	)			(25,229	)			57,864

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2014		2013		2014		2013

US Corporate Income
Institutional	$	9,951,098	$	10,790,080	$	—	$	—
Open		117,194		179,908		—		—
US Short Duration Fixed Income*
Institutional		444,786		443,969		—		64,409
Open		373		2,455		—		358
Global Fixed Income**
Institutional		72,111		—		30,998		6,043
Open		942		—		405		60

*	US Short Duration Fixed Income Portfolio had return of capital distributions of $365,768 in 2014.
**	Global Fixed Income Portfolio had return of capital distributions of $32,635 and $123,529 in 2014 and 2013, respectively.

Annual Report 35

At December 31, 2014, the components of distributable earnings, on a tax basis, were as follows:

Portfolio	Undistributed Ordinary Income/ Deferred Ordinary Losses				Undistributed Long-Term Capital Gain/ Deferred Capital Losses				Net Unrealized Appreciation (Depreciation) including Foreign Currency

US Corporate Income		$	—			$	(3,275,918	)		$	1,295,334
US Short Duration Fixed Income			(79,919	)			(104,490	)			109,894
Global Fixed Income			—				(1,384	)			(262,356	)

(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. The 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) Redemption Fee—The Portfolios, other than 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.

(h) Estimates—The preparation of financial statements in conformity with GAAP requires management 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

tive 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 year ended December 31, 2014, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:

	Institutional Shares				Open Shares
Portfolio	Management Fees Waived		Expenses Reimbursed		Management Fees Waived		Expenses Reimbursed

US Corporate Income		$309,402	$	—		$12,214	$	3,320
US Short Duration Fixed Income		109,451		—		195		12,979
Global Fixed Income		29,720		148,938		388		14,693

36 Annual Report

4. Directors’ Compensation

assets. Effective January 1, 2015, the compensation for Independent Directors is comprised of: (1) an annual retainer of $190,000, (2) an additional annual fee of $20,000 to the lead Independent Director, and (3) an additional annual fee of $10,000 to the Audit Committee Chair. The Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings, although permeeting attendance fees will no longer be paid. Compensation is, generally, divided among the Lazard Funds and Lazard Alternative Emerging Markets 1099 Fund, a closed-end registered management investment company advised by an affiliate of the Investment Manager (the “1099 Fund”), based on relative net assets. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. The Statements of Operations show the Directors’ fees and expenses paid by each Portfolio.

5. Securities Transactions and Transactions with Affiliates

Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2014 were as follows:

Portfolio	Purchases		Sales

US Corporate Income	$	65,717,105	$	50,955,836
US Short Duration Fixed Income		32,374,955		7,709,196
Global Fixed Income		5,751,558		4,569,513

	US Government Securities
Portfolio	Purchases		Sales

US Short Duration Fixed Income	$	32,039,821	$	20,842,168

6. Line of Credit

Annual Report 37

Portfolio	Average Daily Loan Balance*		Maximum Daily Loan Outstanding		Weighted Average Interest Rate			Number of Days Borrowings were Outstanding

US Corporate Income		$1,816,667		$2,600,000		1.10	%		9
Global Fixed Income		116,565		320,000		1.09			23

*	For days borrowings were outstanding.

7. Investment Risks

maturities or effective durations. Other risk factors could have an effect on the Portfolios’ performance, including: if an issuer fails to make timely interest or principal payments (known as credit risk); if there is a decline, or a perceived decline, in the credit quality of a fixed-income security (or any guarantor of payment on such security) the security’s value could fall, potentially lowering the Portfolios’ share price; during unusual market conditions, the Portfolios may not be able to sell certain securities at the time and price it would like. Any investments in lower-rated, higher-yielding securities are subject to greater credit risk than its higher rated investments. Non-investment grade securities tend to be more volatile, less liquid and are considered speculative.

(c) Mortgage-Related Securities Risk—US Short Duration Fixed Income Portfolio’s assets may invest in mortgage-related securities. Mortgage-related securities are complex instruments, subject to both credit and prepayment risk, and may be more volatile and less liquid, and more difficult to price accurately, than more traditional debt securities. Although certain mortgage-related securities are guaranteed by a third party (such as a US Government agency or instrumentality with respect to government-related mortgage-backed securities) or otherwise similarly secured, the market value of the security, which may fluctuate, is not secured. Mortgage-related securities generally are subject to credit risks associated with the performance of the underlying mortgage properties. Prepayment risk can lead to fluctuations in value of the mortgage-related security which may be pronounced. As with other interest-bearing securities, the prices of certain mortgage-related securities are inversely affected by changes in interest rates. However, although the value of a mortgage-related security may decline when interest rates rise, the converse is not necessarily true, since during periods of declining interest rates the mortgages underlying the security are more likely to be prepaid.

8. Contractual Obligations

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

38 Annual Report

date of measurement. The Fair Value Measurements and Disclosures provisions of GAAP also establish a framework for measuring fair value, and a three-level hierarchy for fair value measurement that is based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer, broadly, to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. Each investment’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the overall fair value measurement. The three-level hierarchy of inputs is summarized below:

•	Level 1 – unadjusted quoted prices in active markets for identical investments
•	Level 2 – other significant observable inputs (including unadjusted quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
•	Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

Changes in valuation technique may result in transfer into or out of the current assigned level within the hierarchy.

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

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 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 December 31, 2014

US Corporate Income Portfolio
Corporate Bonds*	$	—	$	178,062,591		$	—	$	178,062,591
Short-Term Investment		7,136,427		—			—		7,136,427
Total	$	7,136,427	$	178,062,591		$	—	$	185,199,018

US Short Duration Fixed Income Portfolio
Corporate Bonds*	$	—	$	39,146,324		$	—	$	39,146,324
Municipal Bonds		—		8,126,315			—		8,126,315
US Government Securities		—		52,712,331			—		52,712,331
US Treasury Securities		—		8,416,119			—		8,416,119
Short-Term Investment		5,404,589		—			—		5,404,589
Total	$	5,404,589	$	108,401,089		$	—	$	113,805,678

Global Fixed Income Portfolio
Assets:
Corporate Bonds*	$	—	$	2,235,399		$	—	$	2,235,399
Foreign Government Obligations*		—		3,278,548			—		3,278,548
Quasi Government Bonds*		—		350,808			—		350,808
Supranationals		—		296,230			—		296,230
US Municipal Bonds		—		226,095			—		226,095
Short-Term Investment		73,901		—			—		73,901
Other Financial Instruments**
Forward Currency Contracts		—		105,255			—		105,255
Total	$	73,901	$	6,492,335		$	—	$	6,566,236

Liabilities:
Other Financial Instruments**
Forward Currency Contracts	$	—	$	(65,345	)	$	—	$	(65,345	)

*	Please refer to Portfolios of Investments (page 12 through 21) and Notes to Portfolios of Investments (page 25) for portfolio holdings by country and industry.
**	Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation/depreciation.

Annual Report 39

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 year ended December 31, 2014.

For further information regarding security characteristics see Portfolios of Investments.

10. Derivative Instruments

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

Forward currency contracts may be used for hedging purposes or to seek to increase returns.

Global Fixed Income Portfolio

During the year ended December 31, 2014, the notional amounts of purchases and sales of forward currency contracts were $21,847,448 and $22,102,902, respectively, with average notional exposure of approximately $5,100,000.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2014:

	Fair Value

Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	105,255
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	65,345

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2014 was:

	Amount

Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized loss on forward currency contracts	$	(117,579	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts	$	73,350

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

During the year ended December 31, 2014, US Corporate income and US Short Duration Fixed Income Portfolios did not trade in derivatives.

As of December 31, 2014, 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 a single payment in the event of default on, or termination of, any one contract.

The required information for the affected Portfolio is presented in the below table, as of December 31, 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	$105,255	$ —	$105,255

40 Annual Report

				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		$	617	$	—		$	—	$	617
BNP Paribas SA			1,182		—			—		1,182
Canadian Imperial Bank of Commerce			19,943		—			—		19,943
Citibank NA			19,753		(19,753	)		—		—
HSBC Bank USA NA			55,815		(4,099	)		—		51,716
JPMorgan Chase Bank NA			1,310		(734	)		—		576
Royal Bank of Canada			6,635		—			—		6,635
Total		$	105,255	$	(24,586	)	$	—	$	80,669

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	$	65,345	$	—	$	65,345

				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

Citibank NA		$	59,533	$	(19,753	)	$	—	$	39,780
Credit Suisse International			517		—			—		517
HSBC Bank USA NA			4,099		(4,099	)		—		—
JPMorgan Chase Bank NA			734		(734	)		—		—
Standard Chartered Bank			244		—			—		244
State Street Bank and Trust Co.			218		—			—		218
Total		$	65,345	$	(24,586	)	$	—	$	40,759

11. Change of Independent Registered Public Accounting Firm

12. Subsequent Events

Annual Report 41

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

To the Shareholders and Board of Directors of The Lazard Funds, Inc.:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Lazard US Corporate Income Portfolio, Lazard US Short Duration Fixed Income Portfolio and Lazard Global Fixed Income Portfolio (collectively the “Portfolios”), three of the portfolios constituting The Lazard Funds, Inc. (the “Fund”) as of December 31, 2014, and the related statements of operations and changes in net assets and the financial highlights for the year then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial statements of the Portfolios for the year ended December 31, 2013 were audited by other auditors whose report, dated February 28, 2014, expressed an unqualified opinion on those statements.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Lazard US Corporate Income Portfolio, Lazard US Short Duration Fixed Income Portfolio and Lazard Global Fixed Income Portfolio of The Lazard Funds, Inc. as of December 31, 2014, the results of their operations, changes in their net assets and the financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP
New York, New York
February 28, 2015

42 Annual Report

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

Name (Age) Address⁽¹⁾	Position(s) with the Fund (Since) and Term⁽²⁾	Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years⁽²⁾

Independent Directors⁽³⁾:

Franci J. Blassberg (61)	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)

Kenneth S. Davidson (69)	Director (August 1995)	Davidson Capital Management Corporation, an investment manager, President (1978 – present)

		Landseer Advisors LLC, an investment manager, Senior Advisor (2012 – 2014)

		Aquiline Holdings LLC, an investment manager, Partner (2006 – 2012)

Nancy A. Eckl (52)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)

		TIAA-CREF Funds (62 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)

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 (67)	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 (54)	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)

Annual Report 43

⁽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 January 31, 2015, 38 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 the 1099 Fund.

⁽³⁾	“Independent Directors” are not “interested persons” (as defined in the Act) of the Fund.

⁽⁴⁾	Messrs. Bhutani and Carroll are “interested persons” (as defined in the Act) of the Fund because of their positions with the Investment Manager.

The Fund’s Statement of Additional Information contains further information about the Directors and is available without charge by calling 800-823-6300, or online, at www.LazardNet.com.

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 (42)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager

Stephen St. Clair (56)	Treasurer (May 2003)	Vice President of the Investment Manager

Mark R. Anderson (44)	Chief Compliance Officer (September 2014)	Chief Compliance Officer and Director of the Investment Manager (since September 2014)

		Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014)

Tamar Goldstein (39)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) of the Investment Manager

Cesar A. Trelles (40)	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, except Messrs. St. Clair and Trelles, serves in the same capacity for the other Lazard Funds and the 1099 Fund. Messrs. St. Clair and Trelles serve in the capacity for the other Lazard Funds.

⁽³⁾	In addition to Charles L. Carroll, President, whose information is included in the Interested Directors section.

44 Annual Report

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

Tax Information
Year Ended December 31, 2014

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2014:

Of the dividends paid by the Portfolios, none are qualified dividend income.

Of the dividends paid by the Portfolios, no dividends qualify for the dividends received deduction available to corporate shareholders.

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

Proxy Voting

Form N-Q

Annual Report 45

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 Annual Report

December 31, 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

7		Performance Overviews

11		Information About Your Portfolio’s Expenses

13		Portfolio Holdings Presented by Sector

14		Portfolios of Investments

14		Lazard Global Listed Infrastructure Portfolio

16		Lazard US Realty Income Portfolio

17		Lazard US Realty Equity Portfolio

18		Lazard Global Realty Equity Portfolio

20		Notes to Portfolios of Investments

22		Statements of Assets and Liabilities

24		Statements of Operations

26		Statements of Changes in Net Assets

28		Financial Highlights

32		Notes to Financial Statements

43		Report of Independent Registered Public Accounting Firm

44		Board of Directors and Officers Information

46		Tax and Other Information

Distributed by Lazard Asset Management Securities LLC.

Annual Report 1

The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

Sincerely,

Lazard Asset Management LLC

2 Annual Report

The Lazard Funds, Inc. Investment Overviews

Global Listed Infrastructure

Low interest rates and falling bond yields supported equity markets in 2014, but gains were tempered by concerns over global growth. The US market gained ground steadily higher over the year and generally volatility remained low. The US Federal Reserve progressively reduced its asset purchases and ended the program in October. Low interest rates and modestly improving economic outlook has traditionally proven to be a positive environment for infrastructure stocks and 2014 proved no different.

The European Central Bank (ECB) cut interest rates twice, leaving the official deposit facility in negative territory as the central bank sought to fend off the threat of deflation. In November, ECB President Mario Draghi reinforced the bank’s intention to bring inflation up towards its target level and to expand the bank’s balance sheet by embarking on a program to buy asset-backed securities. Japanese Prime Minister Shinzo Abe raised the sales tax rate from 5% to 8% in April and secured a supermajority of the lower house following a snap general election.

Real Estate Securities

Global property stocks (represented by the FTSE EPRA/NAREIT Global^®Index) returned 13.91% during 2014, outperforming global equities (represented by the MSCI All Country World^®Index). The year was also marked by meaningful performance differences among regions due to varying outlooks for economic growth, interest rates, and real estate fundamentals. Developed markets outperformed emerging markets during the year due to investor concerns around a rise in interest rates and a decline in the price of oil impacting the latter. Among major countries representing at least 3% of the FTSE EPRA/NAREIT Global Index, property companies in the United States and Australia were leading performers. Using the same size criteria, property companies in Japan and China were the worst relative performers.

On a country basis, in 2014 we remained most positive on and overweight in the United States. We believe the country presents a scenario of attractive company valuations supported by healthy underlying real estate fundamentals, an improving economic outlook, and a strong bid for real estate in the private markets. While we expect limited new supply and modestly rising interest rates, we expect continually improving user demand to drive favorable levels of rental,

earnings, and dividend growth in the region. We are cautious about Canada and Australia due to the effect of declining commodity prices on their economies, and currently stretched valuations for property companies.

Due to supply constraints and compelling valuations, during 2014, the Portfolio was overweight in Hong Kong; however we remain wary of the potential geopolitical risks and a slowdown in Chinese consumer spending. The Portfolio was underweight in China as we believe the elevated levels of supply across a majority of the sub markets warrants a significant level of valuation correction in that part of the world. We have a neutral view of Japan, where we see positive earnings growth in Japanese developers and the positive macro benefit from the Bank of Japan’s policy, which are offset by premium valuations relative to underlying net asset value.

In Europe the Portfolio was modestly underweight in 2014 due to deflation risks and a slowdown in growth across a majority of the markets there. Within the region the Portfolio maintained preferred overweight positions in London-centric UK property companies, and regional French retail real estate investment trusts (REITs) due to compelling valuations and a stronger growth outlook.

Our view of emerging markets is “opportunistically” positive for 2015. We maintain significant overweights across Mexico, Brazil, and the United Arab Emirates. While a sustained decline in the price of oil poses a significant risk to the economies of all three countries, our bottom-up analysis of the regions’ property companies reveals stocks (that we have invested in) trading at compelling long-term discounted valuations. We have reduced our exposure to South East Asia property and expect to remain underweight the region due to what we perceive as the clear divergence in future growth prospects, heightened fiscal and monetary risks, currency weakness, and political uncertainty.

Lazard Global Listed Infrastructure Portfolio

For the year ended December 31, 2014, the Lazard Global Listed Infrastructure Portfolio’s Institutional Shares posted a total return of 17.95%, while Open Shares posted a total return of 17.61%, as compared with the 20.55% return for the UBS Global 50/50 Infrastructure & Utilities^®Index (Hedged) and 4.94% return for the MSCI World^®Index.

Annual Report 3

The three biggest contributors to performance for the year were a US railroad, CSX; a Japanese gas company, Tokyo Gas; and an Italian toll road company, Atlantia.

CSX had strong share price performance over the past twelve months. However, CSX started 2014 with very poor operational performance, due to one of the harshest winters on record (first-quarter operating metrics were very poor and costs rose significantly). Since then, CSX consistently benefited from strong freight volumes and the effects of operating leverage and cost control. Looking ahead, CSX intends to significantly improve the productivity and efficiency of its network, improving customer service levels and driving its cost base structurally lower. The US Class I railroads enjoy high barriers to entry and retain a high proportion of captive customers.

Tokyo Gas and Osaka Gas are the tale of two contrasting strategic choices with the former a top contributor during the year and the latter a top detractor. Over the last twelve months, the market appreciation of the Tokyo Gas share price confirms our view that the ability of the company to tap latent demand for natural gas should enable it to reinvest at attractive returns. Besides, we think that its strong balance sheet leaves plenty of room for management to both invest in the business and align shareholder remuneration to international peers, from the current circa 25% dividend payout ratio. Further, the company benefited from the overall rebound in Japanese equities as a result of an even more aggressive monetary policy announced by the Bank of Japan. The Osaka Gas share price suffered from the strategic diversification that led management to invest in the water purification business and take excessive exploration risk in US shale gas, offsetting a strong underlying industry trend in the Japanese energy market. Osaka Gas was sold during the year.

Atlantia performed well in 2014, as Italy normalized as an investment destination, and the fundamentals of operations improved. Indeed, traffic is now growing slightly, despite Italy moving back into recession over the summer. Our holding of Atlantia shares is based on highly conservative prospects of traffic increase, where we do not expect the 2007 peak to be reached within the concession period ending 2038. We think that the group should exhibit a meaningful free cash flow turnaround in the motorway business while the Rome airports’ prospects for expansion invest-

ment and retail performance alignment to European peers remain undiscovered by the market.

Transurban (TCL) performed strongly over the year following numerous positive company announcements including the acquisition of Queensland Motorways, progressing through the final planning approval stage on the NorthConnex project in Sydney, the completion of M5 West widening project in Sydney, the opening of 95 Express Lanes Project in Northern Virginia and the completion of the M2 upgrade project in Sydney. Reinforcement of the strategy was demonstrated by the headline financial results for the 2014 financial year, which included increases across key earnings metrics for the business. In particular, average daily traffic across the Australian networks increased 6%, proportional toll revenue rose 12.6% to $1.1 billion and proportional earnings before interest, taxes, depreciation and amortization increased 12.8% to A$934 million. This contributed to growth in free cash, which rose 29% to A$572 million compared to the previous financial year. Intra-urban toll roads are considered highly defensive investments because they are largely monopoly-like assets that individuals regularly use despite their financial circumstances, and toll increases of inflation or greater across all of TCL’s seventeen toll road assets. A focus on infrastructure by Australian governments at the national and state level means there should be plenty of new business opportunities and we believe TCL has demonstrated an ability to add value to their existing toll road concessions through both expansion projects and new projects most notably the upcoming NorthConnex project in northwestern Sydney. We believe dividends per share growth will continue at varying levels for the remainder of the decade.

Vinci performed poorly in 2014 despite a strong first half. The company’s services operations suffered from the lack of economic reform and recovery in France. Moreover, the main reason for the share price decline was the emergence of regulatory risk, as French Environment Minister Segolene Royal continued public declarations hostile to the motorway sector. In addition, the motorway companies have just been given the go-ahead by the European Union to join the French government’s large investment programs as part of the stimulus plan, of which Vinci’s share is approximately €3.6 billion. These investments are now at risk, as we believe the company would only deploy such capital in a more conducive political environment. The government decided ultimately not to exercise its option to buy back the conces-

4 Annual Report

sion contracts at the end of 2015 (a period of notice of one year is required) and have set up a working group to consult on potential measures to help the purchasing power of drivers. Given the contractual nature of the concessions, we believe that any change will be bilateral and net present value neutral.

The Portfolio is passively hedged to the US dollar (using currency forward contracts) in an effort to minimize the impact of currency movements of a stock against the investor’s local currency. Currency forward contracts contributed positively to performance.

Lazard US Realty Income Portfolio

For the year ended December 31, 2014, the Lazard US Realty Income Portfolio’s Institutional Shares posted a total return of 21.54%, while Open Shares posted a total return of 21.35% as compared with the 24.31% blended index return for the 50% FTSE NAREIT All Equity REITs^®Index/50% Wells Fargo Hybrid and Preferred Securities REIT^®Index (the “Hybrid Index”).

On average during the year, the Portfolio was invested as follows: 70.2% in common securities and 26.1% in preferred securities, with the remainder in cash and bonds.

With REIT common stocks outperforming preferred stocks for the year, the Portfolio’s investment allocation benefited performance relative to the benchmark. However, stock selection detracted from relative performance. On a weighted average basis, the Portfolio’s preferred stock holdings outperformed their benchmark but its common stock holdings lagged their index.

In terms of relative performance, the Portfolio was helped by an overweight position in Sun Communities, a manufactured-home REIT, which completed a large, accretive acquisition during the year. Also helping the Portfolio was an overweight position in Digital Realty Trust, a data center REIT, which restored management’s credibility with investors, and produced solid leasing results and earnings guidance; and an overweight position in Glimcher Realty Trust, a mall REIT, which was acquired for a substantial premium. Through a proposed merger with Washington Prime Group (WPG), Glimcher Realty Trust was able to close the large discount to underlying asset value embedded in its share price. We exited the position in the second half of the year.

An overweight position in Campus Crest Communities, a student housing REIT, detracted value as the company’s management team was removed in the midst of poorly advised acquisitions and weak operational infrastructure. Other detractors from relative performance included an overweight position in American Realty Capital Properties (ARCP), a triple-net REIT, which hurt performance as it was mired in accounting and management turmoil during the fourth quarter. We remain overweight ARCP due to its high quality asset base, attractive valuation, and potential for a near-term catalyst to realize value. An overweight position in Mack-Cali Realty, an office REIT, hurt performance as it reduced its dividend amid deteriorating earnings resulting from weak conditions in its core markets.

Lazard US Realty Equity Portfolio

For the year ended December 31, 2014, the Lazard US Realty Equity Portfolio’s Institutional Shares posted a total return of 25.70%, while Open Shares posted a total return of 25.33%, as compared with the 28.03% return for the FTSE NAREIT All Equity REITs Index.

Stock selection contributed positively to relative performance but was overshadowed by negative attribution from subsector allocation.

In terms of relative performance, the Portfolio benefited from an overweight position in Glimcher Realty Trust, a mall REIT, which was acquired at a substantial premium. Through a proposed merger with WPG, Glimcher Realty Trust was able to close the large discount to underlying asset value embedded in its share price. We exited our position in Glimcher Realty Trust in the second half of the year. Also helping the Portfolio was an overweight position in Apartment Investment & Management (Aimco), an apartment REIT, which benefited from very strong apartment supply-demand fundamentals which allowed the company to deliver better-than-expected organic growth; and an overweight position in Essex Property Trust, another apartment REIT, which benefited from even stronger apartment fundamentals within its West Coast markets.

An overweight position in ARCP, a triple-net REIT, hurt performance, as the company was mired in accounting and management turmoil during the fourth quarter. However, we remain overweight ARCP due to its high quality asset base, attractive valuation, and potential for a near-term cata-

Annual Report 5

lyst to realize value. Other detractors from performance included an underweight position in Health Care REIT, which outperformed the broader REIT market along with many of its health care peers; and an overweight position in Realogy Holdings, a residential housing brokerage, which underperformed as the velocity of the US housing recovery fell short of market expectations.

When specific market conditions exist that we feel make the strategy particularly susceptible to loss of principal, we will attempt to hedge the Portfolio using derivatives. In the overwhelming number of cases, such derivatives will be put options on an exchange-traded fund that closely tracks our benchmark. During the first half of 2014, we purchased one put position to protect the Portfolio from losses and also employed a straddle when increased volatility appeared imminent. The Portfolio benefited modestly from the positions.

Lazard Global Realty Equity Portfolio

For the year ended December 31, 2014, the Lazard Global Realty Equity Portfolio’s Institutional Shares posted a total return of 10.35%, while Open Shares posted a total return of 10.05%, as compared with the 13.91% return for the FTSE EPRA/NAREIT Global Index.

Country allocation and stock selection were detractors from relative performance, outweighing positive attribution from currency.

In terms of relative performance, an overweight position in Glimcher Realty Trust, a US mall REIT, helped performance, as it was acquired at a substantial premium. Through a proposed merger with WPG, Glimcher Realty Trust was able to close the large discount to underlying asset value embedded in its share price. We exited our position in Glim-cher Realty Trust during the second half of the year. Also helping the Portfolio was an overweight position in Aimco, an apartment REIT, which benefited from very strong apartment supply-demand fundamentals which allowed the company to deliver better-than-expected organic growth; and an overweight position to Hulic REIT, a diversified Japanese REIT with a strong sponsor and a unique portfolio of office, retail, and nursing homes, the company listed at a discount to the J-REIT market.

An overweight position in ARCP, a triple-net REIT, hurt performance, as the company was mired in accounting and management turmoil during the fourth quarter. Other detractors from performance included an overweight position in NTT Urban Development, a Japanese developer, which underperformed owning to a downward revision of its medium-term profit outlook due to lower asset and condominium sales; and an overweight position in Sumitomo Realty & Development, a Japanese developer, which despite meeting earning targets, underperformed as condominium development margins are expected to come under pressure from the consumption tax and rising construction costs. We exited our position in the company during the second half of the year.

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, such Portfolio’s returns would have been lower. Past performance is not indicative, or a guarantee, of future results.

6 Annual Report

The Lazard Funds, Inc. Performance Overviews

Lazard Global Listed Infrastructure Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Listed Infrastructure Portfolio, UBS Global 50/50 Infrastructure & Utilities^®Index (Hedged) and MSCI World^®Index*

Average Annual Total Returns*

Periods Ended December 31, 2014

	One			Five			Since
	Year			Years			Inception		†
Institutional Shares**		17.95	%		13.09	%		13.08%
Open Shares**		17.61	%		12.71	%		12.70%
UBS Global 50/50 Infrastructure & Utilities Index (Hedged)		20.55	%		10.91	%		10.91%
MSCI World Index		4.94	%		10.20	%		10.20%


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

Annual Report 7

Lazard US Realty Income Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2014

	Institutional Shares						Open Shares
	One			Since			One			Five			Since
	Year			Inception		†	Year			Years			Inception		†
US Realty Income Portfolio**		21.54	%		17.29%			21.35	%		15.14	%		13.10%
FTSE NAREIT All Equity REITs Index		28.03	%		19.46%			28.03	%		16.91	%		8.82%
Wells Fargo Hybrid and Preferred Securities REIT Index		20.37	%		8.83%			20.37	%		11.32	%		12.84%
Hybrid Index		24.31	%		14.27%			24.31	%		14.36	%		11.44%
S&P 500 Index		13.68	%		22.56%			13.68	%		15.45	%		10.02%


*	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.

8 Annual Report

Lazard US Realty Equity Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2014

	Institutional Shares						Open Shares
	One			Since			One			Five			Since
	Year			Inception		†	Year			Years			Inception		†
US Realty Equity Portfolio**		25.70	%		21.08%			25.33	%		17.99	%		24.06%
FTSE NAREIT All Equity REITs Index		28.03	%		19.50%			28.03	%		16.91	%		18.69%


*	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 FTSE NAREIT All Equity REITs Index is a free-float adjusted market capitalization index that is designed to measure the performance of equity REITs across all industries. The index is unmanaged, has no fees or costs and is not available for investment.

**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, primarily based on the differences in fees borne by shareholders investing in different classes.

†	The inception date for the Institutional Shares was September 26, 2011 and for Open Shares was December 31, 2008.

Annual Report 9

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

Average Annual Total Returns*

Periods Ended December 31, 2014

	Institutional Shares						Open Shares
	One			Since			One			Five			Since
	Year			Inception		†	Year			Years			Inception		†
Global Realty Equity Portfolio**		10.35	%		15.86%			10.05	%		7.31	%		17.93%
FTSE EPRA/NAREIT Global Index		13.91	%		15.12%			13.91	%		10.20	%		14.71%
Global Realty Linked Index		13.92	%		15.91%			13.92	%		8.83	%		14.66%


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

	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. 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. 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 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.

10 Annual Report

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

Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Portfolio	Beginning Account Value 7/1/14		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 - 12/31/14		Annualized Expense Ratio During Period 7/1/14 - 12/31/14

Global Listed Infrastructure
Institutional Shares
Actual	$	1,000.00	$	1,034.60		$5.03		0.98	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.27		$4.99		0.98	%
Open Shares
Actual	$	1,000.00	$	1,033.20		$6.71		1.31	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.60		$6.67		1.31	%

US Realty Income
Institutional Shares
Actual	$	1,000.00	$	1,044.50		$4.90		0.95	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.42		$4.84		0.95	%
Open Shares
Actual	$	1,000.00	$	1,043.90		$6.34		1.23	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.00		$6.26		1.23	%

Annual Report 11

Portfolio	Beginning Account Value 7/1/14		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 - 12/31/14		Annualized Expense Ratio During Period 7/1/14 - 12/31/14

US Realty Equity
Institutional Shares
Actual	$	1,000.00	$	1,084.10		$5.52		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91		$5.35		1.05	%
Open Shares
Actual	$	1,000.00	$	1,082.60		$7.09		1.35	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.40		$6.87		1.35	%

Global Realty Equity
Institutional Shares
Actual	$	1,000.00	$	995.00		$5.53		1.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.66		$5.60		1.10	%
Open Shares
Actual	$	1,000.00	$	994.00		$7.04		1.40	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.15		$7.12		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 184/365 (to reflect one-half year period).

12 Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2014

Sector*	Lazard Global Listed Infrastructure Portfolio			Lazard US Realty Income Portfolio			Lazard US Realty Equity Portfolio			Lazard Global Realty Equity Portfolio

Consumer Discretionary		9.6	%		—	%		3.6	%		3.2	%
Financials		0.6			97.4			95.2			96.6
Industrials		42.0			—			—			—
Materials		—			0.7			—			—
Utilities		44.1			—			—			—
Short-Term Investments		3.7			1.9			1.2			0.2
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%


*	Represents percentage of total investments.

Annual Report 13

The Lazard Funds, Inc. Portfolios of Investments December 31, 2014

Description	Shares		Value

Lazard Global Listed Infrastructure Portfolio

Common Stocks \| 93.9%

Australia \| 14.7%
AusNet Services		27,624,975	$	29,843,561
DUET Group		32,661,548		64,127,069
Macquarie Atlas Roads Group		7,693,472		19,960,154
Spark Infrastructure Group		22,668,409		39,236,451
Transurban Group		10,081,081		70,472,270
				223,639,505
Austria \| 0.5%
Flughafen Wien AG		84,870		7,991,732

France \| 15.0%
Aeroports de Paris		292,868		35,497,713
Eutelsat Communications SA		2,204,927		71,279,527
Vinci SA		2,211,019		120,988,472
				227,765,712
Germany \| 2.4%
Fraport AG		624,700		36,190,449

Italy \| 23.0%
ASTM SpA		834,619		9,634,084
Atlantia SpA		5,055,672		117,425,992
Hera SpA		13,687,503		32,208,708
Snam SpA		20,616,947		101,705,984
Societa Iniziative Autostradali e Servizi SpA		1,980,147		19,066,133
Terna SpA		15,283,675		69,236,521
				349,277,422
Japan \| 6.5%
Toho Gas Co., Ltd.		5,296,350		25,955,432
Tokyo Gas Co., Ltd.		13,487,700		72,781,826
				98,737,258
Luxembourg \| 4.7%
SES SA		1,979,763		71,016,206

South Korea \| 0.6%
Macquarie Korea Infrastructure Fund		1,435,773		8,951,461

Description	Shares		Value

Spain \| 0.3%
Abertis Infraestructuras SA		194,283	$	3,838,257

Switzerland \| 2.0%
Flughafen Zuerich AG		46,403		31,106,160

United Kingdom \| 4.1%
Pennon Group PLC		4,330,911		62,034,101

United States \| 20.1%
Ameren Corp.		1,095,000		50,512,350
California Water Service Group		567,072		13,955,642
CSX Corp.		2,015,059		73,005,588
Great Plains Energy, Inc.		660,000		18,750,600
Norfolk Southern Corp.		699,837		76,709,133
PG&E Corp.		1,243,099		66,182,591
SJW Corp.		175,269		5,629,640
				304,745,544
Total Common Stocks (Identified cost $1,404,125,460)				1,425,293,807

Short-Term Investment \| 3.6%
State Street Institutional Treasury Money Market Fund (Identified cost $54,796,965)		54,796,965		54,796,965

Total Investments \| 97.5% (Identified cost $1,458,922,425) (a), (b)			$	1,480,090,772

Cash and Other Assets in Excess of Liabilities \| 2.5%				38,025,926

Net Assets \| 100.0%			$	1,518,116,698

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

14 Annual Report

Lazard Global Listed Infrastructure Portfolio (concluded)

Forward Currency Contracts open at December 31, 2014:

Currency	Counterparty	Expiration Date	Foreign Currency Amount		US $ Cost on Origination Date			US $ Current Value			Unrealized Appreciation		Unrealized Depreciation

Forward Currency Purchase Contract
KRW	HSB	03/27/15		562,512,130		$	510,864		$	509,870	$	—	$	994

Forward Currency Sale Contracts
AUD	BNP	03/27/15		36,061,821		$	29,202,214		$	29,268,573	$	—	$	66,359
AUD	CAN	03/27/15		21,544,869			17,444,880			17,486,293		—		41,413
AUD	CIT	03/27/15		45,187,929			36,600,324			36,675,524		—		75,200
AUD	CSF	03/27/15		70,997,329			57,482,278			57,623,006		—		140,728
AUD	HSB	03/27/15		46,567,933			37,719,094			37,795,566		—		76,472
AUD	RBC	03/27/15		34,687,532			28,095,341			28,153,170		—		57,829
AUD	SSB	03/27/15		24,704,672			19,962,264			20,050,859		—		88,595
CHF	BNP	03/27/15		2,734,147			2,829,293			2,754,307		74,986		—
CHF	BRC	03/27/15		2,543,814			2,632,312			2,562,570		69,742		—
CHF	CAN	03/27/15		4,572,020			4,731,960			4,605,731		126,229		—
CHF	CSF	03/27/15		17,122,906			17,718,239			17,249,159		469,080		—
CHF	RBC	03/27/15		2,723,357			2,817,810			2,743,437		74,373		—
EUR	BNP	03/27/15		54,247,374			67,337,265			65,690,324		1,646,941		—
EUR	CAN	03/27/15		127,183,421			158,012,682			154,011,514		4,001,168		—
EUR	CIT	03/27/15		52,980,050			65,751,951			64,155,671		1,596,280		—
EUR	CSF	03/27/15		35,190,736			43,667,129			42,613,876		1,053,253		—
EUR	HSB	03/27/15		60,328,808			74,886,149			73,054,577		1,831,572		—
EUR	MEL	03/27/15		110,910,038			136,302,891			134,305,420		1,997,471		—
EUR	RBC	03/27/15		132,158,023			164,193,129			160,035,460		4,157,669		—
GBP	BRC	03/27/15		19,092,455			29,858,308			29,738,109		120,199		—
GBP	CAN	03/27/15		1,290,583			2,018,214			2,010,192		8,022		—
GBP	CIT	03/27/15		4,486,232			7,002,685			6,987,685		15,000		—
GBP	HSB	03/27/15		4,564,871			7,138,134			7,110,171		27,963		—
GBP	JPM	03/27/15		1,929,593			2,995,519			3,005,503		—		9,984
GBP	RBC	03/27/15		8,318,831			13,013,979			12,957,281		56,698		—
JPY	BNP	03/27/15		1,103,534,767			9,269,429			9,219,862		49,567		—
JPY	BNP	03/27/15		1,511,347,322			12,694,957			12,627,073		67,884		—
JPY	CAN	03/27/15		1,154,149,268			9,693,846			9,642,739		51,107		—
JPY	CIT	03/27/15		1,029,992,274			8,595,733			8,605,426		—		9,693
JPY	CIT	03/27/15		1,251,043,402			10,513,853			10,452,274		61,579		—
JPY	CSF	03/27/15		2,341,438,594			19,668,352			19,562,357		105,995		—
JPY	HSB	03/27/15		1,839,420,513			15,451,992			15,368,074		83,918		—
JPY	MEL	03/27/15		1,817,432,020			15,267,342			15,184,363		82,979		—
KRW	CAN	03/27/15		1,321,089,591			1,200,991			1,197,456		3,535		—
KRW	CAN	03/27/15		3,661,199,722			3,328,363			3,318,568		9,795		—
KRW	CSF	03/27/15		665,285,396			605,080			603,025		2,055		—
KRW	HSB	03/27/15		967,659,087			879,051			877,101		1,950		—
KRW	HSB	03/27/15		2,487,267,081			2,259,508			2,254,497		5,011		—
KRW	RBC	03/27/15		1,410,623,131			1,280,860			1,278,611		2,249		—
Total Forward Currency Sale Contracts						$	1,140,123,401		$	1,122,835,404		17,854,270		566,273
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts											$	17,854,270	$	567,267

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

Annual Report 15

Description	Shares		Value

Lazard US Realty Income Portfolio

Common Stocks \| 8.8%

Real Estate \| 8.8%
Colony Financial, Inc.		279,943	$	6,668,243
Starwood Property Trust, Inc.		300,300		6,978,972

Total Common Stocks (Identified cost $12,942,739)				13,647,215

Preferred Stocks \| 19.6%

Real Estate \| 19.6%
CBL & Associates Properties, Inc.,
Series E, 6.625%		59,627		1,497,830
DDR Corp.:
Series K, 6.250%		66,000		1,651,320
Series J, 6.500%		47,900		1,220,013
EPR Properties,
Series F, 6.625%		13,769		346,979
General Growth Properties, Inc.,
Series A, 6.375%		237,138		5,942,678
Kilroy Realty Corp.,
Series H, 6.375%		17,700		442,500
Kimco Realty Corp.:
Series J, 5.500%		69,900		1,670,610
Series K, 5.625%		30,700		741,405
LaSalle Hotel Properties,
Series I, 6.375%		91,700		2,315,333
National Retail Properties, Inc.,
Series E, 5.700%		30,800		746,900
Pebblebrook Hotel Trust,
Series C, 6.500%		177,339		4,486,677
PS Business Parks, Inc.,
Series U, 5.750%		90,900		2,157,057
Public Storage,
Series X, 5.200%		32,700		755,370
Regency Centers Corp.,
Series 7, 6.000%		31,481		779,470
Taubman Centers, Inc.,
Series K, 6.250%		109,771		2,743,177
Vornado Realty Trust,
Series K, 5.700%		102,064		2,455,660

Description	Shares		Value

Weingarten Realty Investors,
Series F, 6.500%		14,052	$	356,499

Total Preferred Stocks (Identified cost $30,231,419)				30,309,478

Real Estate Investment Trusts \| 69.8%
American Realty Capital Properties, Inc.		747,713		7,475,571
Apollo Commercial Real Estate Finance, Inc.		233,271		3,816,314
BioMed Realty Trust, Inc.		262,830		5,661,358
Blackstone Mortgage Trust, Inc., Class A		122,000		3,555,080
Campus Crest Communities, Inc.		839,590		6,137,403
CBL & Associates Properties, Inc.		201,000		3,903,420
Columbia Property Trust, Inc.		153,600		3,893,760
Digital Realty Trust, Inc., Series G		147,200		7,578,048
Dynex Capital, Inc.		514,020		4,240,665
EPR Properties		105,262		6,066,249
Excel Trust, Inc.		218,500		2,925,715
First Potomac Realty Trust		361,526		4,468,461
HCP, Inc.		159,500		7,022,785
Home Properties, Inc.		27,000		1,771,200
Mack-Cali Realty Corp.		299,314		5,704,925
Medical Properties Trust, Inc.		418,700		5,769,686
Plum Creek Timber Co., Inc.		49,500		2,118,105
Spirit Realty Capital, Inc.		132,200		1,571,858
STAG Industrial, Inc.		211,000		5,169,500
Sun Communities, Inc.		72,283		4,370,230
Ventas, Inc.		22,400		1,606,080
Washington Prime Group, Inc.		449,165		7,734,621
WP Carey, Inc.		77,369		5,423,567

Total Real Estate Investment Trusts (Identified cost $110,830,596)				107,984,601

Short-Term Investment \| 1.9%
State Street Institutional Treasury Money Market Fund (Identified cost $2,904,095)		2,904,095		2,904,095

Total Investments \| 100.1% (Identified cost $156,908,849) (a)			$	154,845,389

Liabilities in Excess of Cash and Other Assets \| (0.1)%				(121,133	)

Net Assets \| 100.0%			$	154,724,256

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

16 Annual Report

Description	Shares		Value

Lazard US Realty Equity Portfolio

Common Stocks \| 8.2%

Commercial Services \| 2.8%
Realogy Holdings Corp. (c)		68,513	$	3,048,143

Leisure & Entertainment \| 3.5%
Starwood Hotels & Resorts Worldwide, Inc.		48,477		3,930,031

Real Estate \| 1.9%
CBRE Group, Inc., Class A (c)		31,700		1,085,725
Farmland Partners, Inc.		98,472		1,025,094

Total Common Stocks (Identified cost $8,793,387)				9,088,993

Real Estate Investment Trusts \| 89.8%
Acadia Realty Trust		51,525		1,650,346
American Homes 4 Rent, Class A		237,585		4,046,073
American Realty Capital Properties, Inc.		436,504		3,950,361
American Tower Corp.		60,289		5,959,568
Apartment Investment & Management Co., Class A		126,500		4,699,475
AvalonBay Communities, Inc.		28,795		4,704,815
Boston Properties, Inc.		19,925		2,564,148
Crown Castle International Corp.		39,722		3,126,121
DDR Corp.		233,342		4,284,159
Digital Realty Trust, Inc.		17,984		1,192,339
Education Realty Trust, Inc.		34,398		1,258,623
Equity Lifestyle Properties, Inc.		32,547		1,677,798
Essex Property Trust, Inc.		22,046		4,554,704
Extra Space Storage, Inc.		31,194		1,829,216
First Potomac Realty Trust		180,356		2,229,200

Description	Shares		Value

HCP, Inc.		94,400	$	4,156,432
Kilroy Realty Corp.		31,270		2,159,819
Parkway Properties, Inc.		111,032		2,041,879
Pebblebrook Hotel Trust		33,043		1,507,752
Prologis, Inc.		78,868		3,393,690
Public Storage		22,031		4,072,430
Retail Opportunity Investments Corp.		161,106		2,704,970
Rexford Industrial Realty, Inc.		194,199		3,050,866
Simon Property Group, Inc.		53,735		9,785,681
SL Green Realty Corp.		13,737		1,634,978
Sovran Self Storage, Inc.		14,400		1,255,968
Strategic Hotels & Resorts, Inc. (c)		82,200		1,087,506
Sunstone Hotel Investors, Inc.		120,996		1,997,644
Ventas, Inc.		55,952		4,011,758
Vornado Realty Trust		12,158		1,431,118
Washington Prime Group, Inc.		228,900		3,941,658
Weyerhaeuser Co.		97,834		3,511,262

Total Real Estate Investment Trusts (Identified cost $87,245,206)				99,472,357

Short-Term Investment \| 1.2%
State Street Institutional Treasury Money Market Fund (Identified cost $1,282,479)		1,282,479		1,282,479

Total Investments \| 99.2% (Identified cost $97,321,072) (a)			$	109,843,829

Cash and Other Assets in Excess of Liabilities \| 0.8%				859,067

Net Assets \| 100.0%			$	110,702,896

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

Annual Report 17

Description	Shares		Value

Lazard Global Realty Equity Portfolio

Common Stocks \| 33.0%

Australia \| 2.4%
Charter Hall Group		17,393	$	63,803
Goodman Group		21,543		99,312
				163,115
Brazil \| 2.3%
Aliansce Shopping Centers SA		9,700		59,274
BR Properties SA		11,600		44,260
Sonae Sierra Brasil SA		8,900		54,923
				158,457
Germany \| 1.6%
Deutsche Annington Immobilien SE		3,129		106,434

Hong Kong \| 6.5%
Cheung Kong Holdings, Ltd.		6,000		100,271
Hang Lung Properties, Ltd.		10,000		27,869
Hongkong Land Holdings, Ltd.		15,000		100,960
Hysan Development Co., Ltd.		10,000		44,434
The Wharf Holdings, Ltd.		23,825		171,093
				444,627
India \| 0.8%
DLF, Ltd.		24,522		52,807

Japan \| 6.0%
Hulic Co., Ltd.		7,400		73,566
Mitsubishi Estate Co., Ltd.		5,000		105,822
Mitsui Fudosan Co., Ltd.		6,000		161,373
NTT Urban Development Corp.		6,600		66,207
				406,968
Mexico \| 1.0%
Corp Inmobiliaria Vesta SAB de CV		34,500		68,515

Philippines \| 3.1%
Ayala Land, Inc.		110,065		82,464
SM Prime Holdings, Inc.		344,400		130,576
				213,040
United Arab Emirates \| 1.7%
Emaar Properties PJSC		60,100		115,306

United Kingdom \| 1.7%
Capital & Counties Properties PLC		19,908		112,297

Description	Shares		Value

United States \| 5.9%
CBRE Group, Inc., Class A (c)		1,976	$	67,678
Realogy Holdings Corp. (c)		2,682		119,322
Starwood Hotels & Resorts Worldwide, Inc.		2,620		212,404
				399,404
Total Common Stocks (Identified cost $2,419,576)				2,240,970

Real Estate Investment Trusts \| 66.4%

Australia \| 2.0%
Westfield Corp.		18,563		135,718

Canada \| 1.6%
Allied Properties Real Estate Investment Trust		1,450		46,727
Boardwalk Real Estate Investment Trust		1,196		63,352
				110,079
France \| 4.4%
Gecina SA		680		85,108
Klepierre		2,440		105,099
Unibail-Rodamco SE		431		110,158
				300,365
Hong Kong \| 3.0%
The Link REIT		32,019		199,667

Italy \| 1.1%
Beni Stabili SpA		103,021		72,348

Japan \| 4.2%
Hulic Reit, Inc.		63		95,259
Japan Logistics Fund, Inc.		17		38,103
Japan Real Estate Investment Corp.		10		48,126
Nippon Accommodations Fund, Inc.		12		47,350
Premier Investment Corp.		12		58,964
				287,802
Mexico \| 0.5%
Fibra Uno Administracion SA de CV		10,800		31,843

Singapore \| 1.9%
Ascendas Real Estate Investment Trust		39,000		70,007
Frasers Centrepoint Trust		43,925		62,801
				132,808
United Kingdom \| 4.9%
Big Yellow Group PLC		13,526		127,567
Great Portland Estates PLC		9,991		114,184
Workspace Group PLC		7,514		88,841
				330,592

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

18 Annual Report

Description	Shares		Value

Lazard Global Realty Equity Portfolio (concluded)

United States \| 42.8%
American Homes 4 Rent, Class A		12,058	$	205,348
American Realty Capital Properties, Inc.		20,771		187,978
American Tower Corp.		682		67,416
Apartment Investment & Management Co., Class A		3,996		148,451
Boston Properties, Inc.		797		102,566
DDR Corp.		8,493		155,931
Digital Realty Trust, Inc.		1,675		111,053
Equity Lifestyle Properties, Inc.		2,264		116,709
Essex Property Trust, Inc.		852		176,023
Kilroy Realty Corp.		1,626		112,308
Pebblebrook Hotel Trust		2,061		94,043
Prologis, Inc.		3,171		136,448
Public Storage		1,158		214,056
Retail Opportunity Investments Corp.		6,477		108,749
Rexford Industrial Realty, Inc.		9,557		150,140
Simon Property Group, Inc.		2,042		371,869

Description	Shares		Value

SL Green Realty Corp.		703	$	83,671
Strategic Hotels & Resorts, Inc. (c)		5,138		67,976
Ventas, Inc.		1,433		102,746
Washington Prime Group, Inc.		11,376		195,895
				2,909,376
Total Real Estate Investment Trusts (Identified cost $4,129,241)				4,510,598

Short-Term Investment \| 0.2%
State Street Institutional Treasury Money Market Fund (Identified cost $16,508)		16,508		16,508

Total Investments \| 99.6% (Identified cost $6,565,325) (a)			$	6,768,076

Cash and Other Assets in Excess of Liabilities \| 0.4%				26,736

Net Assets \| 100.0%			$	6,794,812

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

Annual Report 19

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2014

(a)

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

			Aggregate Gross		Aggregate Gross		Net Unrealized
	Aggregate		Unrealized		Unrealized		Appreciation
Portfolio	Cost		Appreciation		Depreciation		(Depreciation)

Global Listed Infrastructure	$	1,466,128,255	$	75,983,433	$	62,020,916	$	13,962,517
US Realty Income		156,908,849		5,685,517		7,748,977		(2,063,460	)
US Realty Equity		97,565,749		14,196,052		1,917,972		12,278,080
Global Realty Equity		6,659,741		427,704		319,369		108,335

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

(c)	Non-income producing security.

Security Abbreviations:
REIT	— Real Estate Investment Trust	PJSC	— Public Joint Stock Company

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

Counterparty Abbreviations:
BNP	— BNP Paribas SA	HSB	— HSBC Bank USA NA
BRC	— Barclays Bank PLC	JPM	— JPMorgan Chase Bank NA
CAN	— Canadian Imperial Bank of Commerce	MEL	— The Bank of New York Mellon Corp.
CIT	— Citibank NA	RBC	— Royal Bank of Canada
CSF	— Credit Suisse International	SSB	— State Street Bank and Trust Co.

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

20 Annual Report

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

	Lazard			Lazard
	Global Listed			Global Realty
	Infrastructure			Equity
Industry*	Portfolio			Portfolio

Cable Television		9.4	%		—	%
Commercial Services		—			1.8
Construction & Engineering		8.0			—
Electric		24.4			—
Gas Utilities		13.2			—
Leisure & Entertainment		—			3.1
Real Estate		—			94.5
Transportation		33.5			—
Water		5.4			—
Subtotal		93.9			99.4
Short-Term Investments		3.6			0.2
Total Investments		97.5	%		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.

Annual Report 21

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2014	Lazard Global Listed Infrastructure Portfolio			Lazard US Realty Income Portfolio

ASSETS
Investments in securities, at value		$	1,480,090,772		$	154,845,389
Foreign currency			9			—
Receivables for:
Capital stock sold			12,871,136			1,070,359
Investments sold			8,782,433			—
Dividends and interest			3,417,293			1,458,022
Amount due from Investment Manager (Note 3)			—			—
Gross unrealized appreciation on forward currency contracts			17,854,270			—
Total assets			1,523,015,913			157,373,770

LIABILITIES
Payables for:
Management fees			1,193,678			98,453
Accrued distribution fees			29,798			18,630
Accrued directors’ fees			148			18
Investments purchased			1,489,128			2,345,877
Capital stock redeemed			1,412,144			130,481
Gross unrealized depreciation on forward currency contracts			567,267			—
Line of credit outstanding			—			—
Other accrued expenses and payables			207,052			56,055
Total liabilities			4,899,215			2,649,514
Net assets		$	1,518,116,698		$	154,724,256

NET ASSETS
Paid in capital		$	1,448,826,847		$	154,387,708
Undistributed net investment income			22,762,213			—
Accumulated net realized gain (loss)			8,128,953			2,400,008
Net unrealized appreciation (depreciation) on:
Investments			21,168,347			(2,063,460	)
Foreign currency and forward currency contracts			17,230,338			—
Net assets		$	1,518,116,698		$	154,724,256

Institutional Shares
Net assets		$	1,372,215,643		$	66,942,277
Shares of capital stock outstanding*			99,989,007			7,953,633
Net asset value, offering and redemption price per share		$	13.72		$	8.42

Open Shares
Net assets		$	145,901,055		$	87,781,979
Shares of capital stock outstanding*			10,615,342			10,454,927
Net asset value, offering and redemption price per share		$	13.74		$	8.40

Cost of investments in securities		$	1,458,922,425		$	156,908,849
Cost of foreign currency		$	9		$	—

* $0.001 par value, 6,450,000,000 shares authorized for the Portfolios in total.

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

22 Annual Report

Lazard US Realty Equity Portfolio		Lazard Global Realty Equity Portfolio

$	109,843,829	$	6,768,076
	—		504

	665,755		—
	—		62,482
	382,184		22,489
	—		13,446
	—		—
	110,891,768		6,866,997

	59,737		—
	18,751		441
	10		1
	—		—
	57,910		874
	—		—
	—		30,000
	52,464		40,869
	188,872		72,185
$	110,702,896	$	6,794,812

$	97,783,556	$	6,578,776
	44,105		20,639
	352,478		(7,064	)

	12,522,757		202,751
	—		(290	)
$	110,702,896	$	6,794,812

$	21,806,209	$	4,778,711
	1,106,356		314,965
$	19.71	$	15.17


$	88,896,687	$	2,016,101
	4,494,866		133,021
$	19.78	$	15.16

$	97,321,072	$	6,565,325
$	—	$	502

Annual Report 23

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2014	Lazard Global Listed Infrastructure Portfolio				Lazard US Realty Income Portfolio

Investment Income
Income
Dividends		$	40,324,562			$	6,181,651
Interest			1,317				25
Total investment income*			40,325,879				6,181,676

Expenses
Management fees (Note 3)			10,905,295				1,041,790
Custodian fees			292,096				47,206
Administration fees			267,108				77,782
Distribution fees (Open Shares)			238,649				204,833
Registration fees			175,893				46,211
Shareholders’ services			73,547				58,968
Shareholders’ reports			73,458				36,192
Professional services			62,270				38,186
Directors’ fees and expenses			33,121				3,861
Other†			21,035				8,921
Total gross expenses			12,142,472				1,563,950
Management fees waived and expenses reimbursed			—				—
Administration fees waived			—				—
Total net expenses			12,142,472				1,563,950
Net investment income			28,183,407				4,617,726

Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Forward Currency Contracts and Options
Net realized gain (loss) on:
Investments**			89,518,065				7,759,876
Foreign currency and forward currency contracts			90,548,334				—
Purchased options			—				—
Total net realized gain on investments, foreign currency, forward currency contracts and options			180,066,399				7,759,876
Net change in unrealized appreciation (depreciation) on:
Investments			(44,074,689	)			12,661,157
Foreign currency and forward currency contracts			19,577,653				—
Purchased options			—				—
Total net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts and options			(24,497,036	)			12,661,157
Net realized and unrealized gain on investments, foreign currency, forward currency contracts and options			155,569,363				20,421,033
Net increase in net assets resulting from operations		$	183,752,770			$	25,038,759
* Net of foreign withholding taxes of		$	5,217,552			$	—
**Net of foreign capital gains taxes of		$	—			$	—
† Includes interest on line of credit of		$	—			$	1,207

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

24 Annual Report

Lazard US Realty Equity Portfolio			Lazard Global Realty Equity Portfolio

$	2,017,742		$	262,814
	31			1
	2,017,773			262,815

	676,430			72,574
	47,643			70,655
	66,912			52,656
	180,242			7,785
	41,046			30,673
	83,006			28,954
	28,726			23,414
	37,333			36,184
	2,330			232
	6,837			5,018
	1,170,505			328,145
	(66,720	)		(206,771	)
	—			(18,750	)
	1,103,785			102,624
	913,988			160,191

	2,272,434			734,176
	—			(2,054	)
	39,164			—
	2,311,598			732,122

	15,361,762			59,499
	—			(526	)
	29,595			—

	15,391,357			58,973

	17,702,955			791,095
$	18,616,943		$	951,286
$	—		$	13,386
$	—		$	71
$	245		$	116

Annual Report 25

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

	Lazard Global Listed Infrastructure Portfolio							Lazard US Realty Income Portfolio
	Year Ended December 31, 2014				Year Ended December 31, 2013			Year Ended December 31, 2014			Year Ended December 31, 2013

Increase (Decrease) in Net Assets
Operations
Net investment income		$	28,183,407		$	12,304,735		$	4,617,726		$	7,701,746
Net realized gain on investments, foreign currency, forward currency contracts and options			180,066,399			22,632,285			7,759,876			13,703,073
Net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts and options			(24,497,036	)		57,478,248			12,661,157			(21,754,968	)
Net increase (decrease) in net assets resulting from operations			183,752,770			92,415,268			25,038,759			(350,149	)

Distributions to shareholders
From net investment income
Institutional Shares			(93,499,882	)		(11,132,365	)		(2,171,258	)		(2,107,432	)
Open Shares			(8,651,001	)		(618,857	)		(3,053,369	)		(3,536,093	)
From net realized gains
Institutional Shares			(68,480,736	)		(17,822,542	)		(2,229,967	)		(6,465,318	)
Open Shares			(6,840,627	)		(1,133,716	)		(2,904,898	)		(8,465,688	)
From return of capital
Institutional Shares			—			—			—			—
Open Shares			—			—			—			—
Net decrease in net assets resulting from distributions			(177,472,246	)		(30,707,480	)		(10,359,492	)		(20,574,531	)

Capital stock transactions
Net proceeds from sales
Institutional Shares			823,544,885			634,839,540			30,642,647			42,701,987
Open Shares			139,281,785			29,997,173			54,138,803			121,300,948
Net proceeds from reinvestment of distributions
Institutional Shares			124,923,577			19,887,096			3,985,440			7,944,138
Open Shares			14,800,994			1,649,076			5,696,540			11,491,478
Cost of shares redeemed
Institutional Shares			(226,235,857	)		(196,894,697	)		(21,092,217	)		(47,910,867	)
Open Shares			(46,719,020	)		(6,801,074	)		(47,389,819	)		(107,986,190	)
Net increase (decrease) in net assets from capital stock transactions			829,596,364			482,677,114			25,981,394			27,541,494

Redemption fees (Note 2(h))
Institutional Shares			3,195			6,934			2,416			2,700
Open Shares			14,627			2,938			5,771			18,372
Net increase in net assets from redemption fees			17,822			9,872			8,187			21,072
Total increase (decrease) in net assets			835,894,710			544,394,774			40,668,848			6,637,886
Net assets at beginning of year			682,221,988			137,827,214			114,055,408			107,417,522
Net assets at end of year*		$	1,518,116,698		$	682,221,988		$	154,724,256		$	114,055,408
* Includes undistributed (distributions in excess of) net investment income of		$	22,762,213		$	4,893,045		$	—		$	—

Shares issued and redeemed Institutional Shares
Shares outstanding at beginning of year			48,827,881			11,419,125			6,343,004			6,073,485
Shares sold			58,107,173			51,937,910			3,713,599			4,657,361
Shares issued to shareholders from reinvestment of distributions			9,008,859			1,546,421			479,580			1,022,521
Shares redeemed			(15,954,906	)		(16,075,575	)		(2,582,550	)		(5,410,363	)
Net increase (decrease)			51,161,126			37,408,756			1,610,629			269,519
Shares outstanding at end of year			99,989,007			48,827,881			7,953,633			6,343,004

Open Shares
Shares outstanding at beginning of year			3,125,100			1,159,035			8,991,883			6,474,598
Shares sold			9,679,786			2,376,299			6,536,633			13,171,196
Shares issued to shareholders from reinvestment of distributions			1,066,135			128,456			686,872			1,467,505
Shares redeemed			(3,255,679	)		(538,690	)		(5,760,461	)		(12,121,416	)
Net increase (decrease)			7,490,242			1,966,065			1,463,044			2,517,285
Shares outstanding at end of year			10,615,342			3,125,100			10,454,927			8,991,883

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

26 Annual Report

Lazard US Realty Equity Portfolio						Lazard Global Realty Equity Portfolio
Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2014			Year Ended December 31, 2013

$	913,988		$	1,628,515		$	160,191		$	100,990

	2,311,598			4,359,190			732,122			793,854

	15,391,357			(5,477,119	)		58,973			(769,313	)
	18,616,943			510,586			951,286			125,531

	(216,488	)		(112,274	)		(170,402	)		(111,909	)
	(653,395	)		(739,462	)		(68,132	)		(61,907	)

	(281,022	)		(633,914	)		(375,865	)		(199,993	)
	(1,162,212	)		(5,041,557	)		(163,613	)		(135,853	)

	—			—			—			(32,900	)
	—			—			—			(22,116	)
	(2,313,117	)		(6,527,207	)		(778,012	)		(564,678	)

	14,479,016			6,127,319			1,487,809			4,925,553
	48,165,637			48,927,295			1,461,456			1,086,728

	496,372			744,504			546,267			344,801
	1,678,762			5,519,188			218,688			209,328

	(3,168,079	)		(957,742	)		(2,563,689	)		(2,530,692	)
	(35,924,926	)		(53,866,480	)		(2,213,583	)		(918,254	)

	25,726,782			6,494,084			(1,063,052	)		3,117,464

	11			—			—			—
	4,818			8,612			—			31
	4,829			8,612			—			31
	42,035,437			486,075			(889,778	)		2,678,348
	68,667,459			68,181,384			7,684,590			5,006,242
$	110,702,896		$	68,667,459		$	6,794,812		$	7,684,590

$	44,105		$	—		$	20,639		$	(95,276	)

	488,840			160,617			343,325			164,688
	769,862			335,532			85,002			303,046
	24,881			46,396			35,657			22,413
	(177,227	)		(53,705	)		(149,019	)		(146,822	)
	617,516			328,223			(28,360	)		178,637
	1,106,356			488,840			314,965			343,325

	3,776,638			3,747,565			152,733			130,199
	2,599,349			2,682,699			94,693			63,297
	83,854			342,619			14,293			13,430
	(1,964,975	)		(2,996,245	)		(128,698	)		(54,193	)
	718,228			29,073			(19,712	)		22,534
	4,494,866			3,776,638			133,021			152,733

Annual Report 27

The Lazard Funds, Inc. Financial Highlights

LAZARD GLOBAL LISTED INFRASTRUCTURE PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Institutional Shares
Net asset value, beginning of year	$	13.13		$	10.96		$	9.78		$	10.31		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.34			0.35			0.31			0.33			0.30
Net realized and unrealized gain (loss)		2.01			2.53			1.43			(0.48	)		0.34

Total from investment operations		2.35			2.88			1.74			(0.15	)		0.64
Less distributions from:
Net investment income		(1.04	)		(0.33	)		(0.35	)		(0.15	)		(0.23	)
Net realized gains		(0.72	)		(0.38	)		(0.21	)		(0.23	)		(0.10	)

Total distributions		(1.76	)		(0.71	)		(0.56	)		(0.38	)		(0.33	)

Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)

Net asset value, end of year	$	13.72		$	13.13		$	10.96		$	9.78		$	10.31

Total Return (c)		17.95	%		26.56	%		18.05	%		-1.55	%		6.63	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	1,372,216		$	641,127		$	125,112		$	104,439		$	115,680
Ratios to average net assets:
Net expenses		0.98	%		1.01	%		1.14	%		1.09	%		1.30	%
Gross expenses		0.98	%		1.01	%		1.14	%		1.09	%		1.35	%
Net investment income		2.35	%		2.80	%		3.01	%		3.15	%		3.01	%
Portfolio turnover rate		41	%		35	%		26	%		135	%		46	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/14			12/31/13			12/31/12			12/31/11			12/31/10

Open Shares
Net asset value, beginning of year	$	13.15		$	10.97		$	9.78		$	10.34		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.29			0.30			0.28			0.28			0.24
Net realized and unrealized gain (loss)		2.02			2.55			1.42			(0.49	)		0.38

Total from investment operations		2.31			2.85			1.70			(0.21	)		0.62
Less distributions from:
Net investment income		(1.00	)		(0.29	)		(0.30	)		(0.12	)		(0.18	)
Net realized gains		(0.72	)		(0.38	)		(0.21	)		(0.23	)		(0.10	)

Total distributions		(1.72	)		(0.67	)		(0.51	)		(0.35	)		(0.28	)

Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—

Net asset value, end of year	$	13.74		$	13.15		$	10.97		$	9.78		$	10.34

Total Return (c)		17.61	%		26.24	%		17.54	%		-1.95	%		6.28	%

Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	145,901		$	41,095		$	12,715		$	8,359		$	118
Ratios to average net assets:
Net expenses		1.29	%		1.32	%		1.50	%		1.60	%		1.60	%
Gross expenses		1.29	%		1.32	%		1.50	%		1.67	%		18.06	%
Net investment income		2.04	%		2.42	%		2.66	%		2.81	%		2.37	%
Portfolio turnover rate		41	%		35	%		26	%		135	%		46	%


(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.

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

28 Annual Report

LAZARD US REALTY INCOME PORTFOLIO

										For the Period
Selected data for a share of capital	Year Ended									9/26/11* to
stock outstanding throughout each period	12/31/14			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)		0.29			0.47			0.49				0.16
Net realized and unrealized gain (loss)		1.30			(0.27	)		1.23				0.55

Total from investment operations		1.59			0.20			1.72				0.71
Less distributions from:
Net investment income		(0.32	)		(0.34	)		(0.37	)			(0.24	)
Net realized gains		(0.29	)		(0.99	)		(0.24	)			(2.74	)

Total distributions		(0.61	)		(1.33	)		(0.61	)			(2.98	)

Redemption fees		—	(b)		—	(b)		—	(b)			—

Net asset value, end of period	$	8.42		$	7.44		$	8.57			$	7.46

Total Return (c)		21.54	%		2.37	%		23.32	%			9.71	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	66,942		$	47,222		$	52,024			$	19,849
Ratios to average net assets (d):
Net expenses		0.96	%		0.95	%		1.15	%			1.15	%
Gross expenses		0.96	%		0.98	%		1.16	%			2.31	%
Net investment income		3.52	%		5.29	%		5.94	%			8.26	%
Portfolio turnover rate		53	%		104	%		42	%			89	%

										For the Period
Selected data for a share of capital	Year Ended									6/1/11 to				Year Ended
stock outstanding throughout each period	12/31/14			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)		0.26			0.44			0.51				0.44			0.32			0.48
Net realized and unrealized gain (loss)		1.30			(0.26	)		1.19				(1.21	)		2.05			4.10

Total from investment operations		1.56			0.18			1.70				(0.77	)		2.37			4.58
Less distributions from:
Net investment income		(0.30	)		(0.32	)		(0.35	)			(0.38	)		(0.64	)		(0.59	)
Net realized gains		(0.29	)		(0.99	)		(0.24	)			(2.74	)		(1.17	)		—

Total distributions		(0.59	)		(1.31	)		(0.59	)			(3.12	)		(1.81	)		(0.59	)

Redemption fees		—	(b)		—	(b)		—	(b)			—	(b)		—	(b)		—	(b)

Net asset value, end of period	$	8.40		$	7.43		$	8.56			$	7.45		$	11.34		$	10.78

Total Return (c)		21.35	%		1.99	%		23.00	%			-4.82	%		23.27	%		69.50	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	87,782		$	66,834		$	55,393			$	6,007		$	15,830		$	9,864
Ratios to average net assets (d):
Net expenses		1.24	%		1.22	%		1.45	%			1.47	%		1.48	%		1.48	%
Gross expenses		1.24	%		1.24	%		1.47	%			3.05	%		2.42	%		4.20	%
Net investment income		3.19	%		4.86	%		6.18	%			7.49	%		2.81	%		5.14	%
Portfolio turnover rate		53	%		104	%		42	%			89	%		77	%		116	%


*	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.

Annual Report 29

LAZARD US REALTY EQUITY PORTFOLIO

										For the Period
Selected data for a share of capital	Year Ended									9/26/11* to
stock outstanding throughout each period	12/31/14			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)		0.28			0.41			0.31				0.10
Net realized and unrealized gain (loss)		3.85			(0.10	)		2.79				2.91

Total from investment operations		4.13			0.31			3.10				3.01
Less distributions from:
Net investment income		(0.20	)		(0.25	)		(0.17	)			(0.12	)
Net realized gains		(0.27	)		(1.41	)		(0.42	)			(3.76	)

Total distributions		(0.47	)		(1.66	)		(0.59	)			(3.88	)

Redemption fees		—	(b)		—			—	(b)			—

Net asset value, end of period	$	19.71		$	16.05		$	17.40			$	14.89

Total Return (c)		25.70	%		1.77	%		20.83	%			20.84	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	21,806		$	7,844		$	2,794			$	1,525
Ratios to average net assets (d):
Net expenses		1.05	%		1.13	%		1.20	%			1.20	%
Gross expenses		1.18	%		1.27	%		2.34	%			13.07	%
Net investment income		1.50	%		2.28	%		1.86	%			2.32	%
Portfolio turnover rate		43	%		98	%		52	%			63	%

										For the Period
Selected data for a share of capital	Year Ended									6/1/11 to				Year Ended
stock outstanding throughout each period	12/31/14			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)		0.19			0.33			0.30				0.14			(0.07	)		0.05
Net realized and unrealized gain (loss)		3.90			(0.06	)		2.76				(0.90	)		5.17			7.26

Total from investment operations		4.09			0.27			3.06				(0.76	)		5.10			7.31
Less distributions from:
Net investment income		(0.15	)		(0.20	)		(0.12	)			(0.06	)		(0.04	)		(0.17	)
Net realized gains		(0.27	)		(1.41	)		(0.42	)			(3.76	)		(2.23	)		(1.24	)

Total distributions		(0.42	)		(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	$	19.78		$	16.11		$	17.45			$	14.92		$	19.49		$	16.66

Total Return (c)		25.33	%		1.58	%		20.58	%			-2.44	%		33.01	%		70.16	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	88,897		$	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		1.42	%		1.41	%		1.78	%			7.48	%		5.66	%		17.23	%
Net investment income (loss)		1.01	%		1.83	%		1.74	%			1.36	%		-0.41	%		0.32	%
Portfolio turnover rate		43	%		98	%		52	%			63	%		91	%		138	%


*	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.

30 Annual Report

LAZARD GLOBAL REALTY EQUITY PORTFOLIO

										For the Period
Selected data for a share of capital	Year Ended									9/26/11* to
stock outstanding throughout each period	12/31/14			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)		0.34			0.30			0.22				0.03
Net realized and unrealized gain (loss)		1.29			(0.18	)		5.27				0.05

Total from investment operations		1.63			0.12			5.49				0.08
Less distributions from:
Net investment income		(0.61	)		(0.50	)		(0.57	)			(0.75	)
Net realized gains		(1.34	)		(0.96	)		(0.12	)			(0.23	)
Return of capital		—			(0.15	)		—				—

Total distributions		(1.95	)		(1.61	)		(0.69	)			(0.98	)

Redemption fees		—			—			—	(b)			—

Net asset value, end of period	$	15.17		$	15.49		$	16.98			$	12.18

Total Return (c)		10.35	%		0.89	%		45.14	%			0.09	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	4,779		$	5,320		$	2,797			$	1,914
Ratios to average net assets (d):
Net expenses		1.13	%		1.22	%		1.30	%			1.30	%
Gross expenses		3.79	%		5.46	%		5.84	%			17.38	%
Net investment income		2.04	%		1.79	%		1.50	%			0.83	%
Portfolio turnover rate		84	%		81	%		42	%			41	%


										For the Period
Selected data for a share of capital	Year Ended									6/1/11 to				Year Ended
stock outstanding throughout each period	12/31/14			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)		0.29			0.25			0.19				0.06			0.16			0.28
Net realized and unrealized gain (loss)		1.29			(0.18	)		5.25				(3.89	)		3.99			1.40

Total from investment operations		1.58			0.07			5.44				(3.83	)		4.15			1.68
Less distributions from:
Net investment income		(0.56	)		(0.45	)		(0.52	)			(0.75	)		(0.55	)		(1.51	)
Net realized gains		(1.34	)		(0.96	)		(0.12	)			(0.23	)		(1.16	)		(1.05	)
Return of capital		—			(0.15	)		—				—			—			—

Total distributions		(1.90	)		(1.56	)		(0.64	)			(0.98	)		(1.71	)		(2.56	)

Redemption fees		—			—	(b)		—	(b)			—			—	(b)		0.03

Net asset value, end of period	$	15.16		$	15.48		$	16.97			$	12.17		$	16.98		$	14.54

Total Return (c)		10.05	%		0.60	%		44.81	%			-22.98	%		29.13	%		9.65	%

Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,016		$	2,365		$	2,209			$	667		$	1,716		$	1,427
Ratios to average net assets (d):
Net expenses		1.43	%		1.54	%		1.60	%			1.84	%		1.96	%		2.00	%
Gross expenses		4.26	%		5.81	%		6.13	%			16.46	%		14.35	%		25.27	%
Net investment income		1.76	%		1.45	%		1.25	%			0.66	%		0.98	%		1.71	%
Portfolio turnover rate		84	%		81	%		42	%			41	%		54	%		81	%

*	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.

Annual Report 31

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2014

1. Organization

cludes 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.

2. Significant Accounting Policies

(a) Valuation of Investments—Net asset value (“NAV”) per share for each class of each Portfolio is determined 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

32 Annual Report

traded. Investments in money market funds are valued at the fund’s NAV.

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 Depositary Receipts or futures contracts. Non-US securities may trade on days when a Portfolio is not open for business, thus affecting the value of the Portfolio’s assets on days when Portfolio shareholders may not be able to buy or sell Portfolio shares.

(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 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.

Annual Report 33

During the year ended December 31, 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 on over-the-counter markets.

During the year ended December 31, 2014, transactions in options purchased were as follows:

US Realty Equity Portfolio

Purchased Options	Number of Contracts			Cost

Options outstanding at beginning of year		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 year		—		$	—

During the year ended December 31, 2014, only US Realty Equity Portfolio traded in options.

At December 31, 2014, the Portfolios had no unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains.

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 (2011-2013), or expected to be taken in the Portfolios’ 2014 tax returns.

(f) Dividends and Distributions—Dividends from net investment income, if any, 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.

34 Annual Report

REIT distributions received by a Portfolio are generally comprised of ordinary income, long-term capital gains and a return of REIT capital. However, as the actual character of such distributions received are not known until after the calendar year end, distributions made by a Portfolio during the year are subject to re-characterization that may result in some portion of the distributions being reclassified as a return of capital distribution to Portfolio shareholders.

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. The book/tax differences relating to shareholder distributions resulted in reclassifications among certain capital accounts as follows:

Portfolio	Paid in Capital			Undistributed Net Investment Income		Accumulated Net Realized Gain (Loss)

Global Listed Infrastructure	$	—			$91,836,644	$	(91,836,644	)
US Realty Income		—			606,901		(606,901	)
US Realty Equity		—			—		—
Global Realty Equity		(38,958	)		140,824		(101,866	)

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2014		2013		2014		2013

Global Listed Infrastructure
Institutional	$	106,361,555	$	19,700,194	$	57,235,637	$	9,217,039
Open		9,020,768		1,219,626		4,854,286		570,621
US Realty Income
Institutional		3,475,559		5,631,865		780,786		1,949,332
Open		4,983,582		9,657,803		1,119,565		3,353,531
US Realty Equity
Institutional		318,655		237,517		25,038		270,300
Open		1,825,951		2,815,400		143,473		3,203,990
Global Realty Equity*
Institutional		415,983		163,195		68,499		141,583
Open		252,029		109,706		41,501		95,178

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

At December 31, 2014, the components of distributable earnings, on a tax basis, were as follows:

Portfolio	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation (Depreciation) including Foreign Currency

Global Listed Infrastructure	$	49,587,328	$	5,782,409		$13,920,114
US Realty Income		592,586		1,807,421		(2,063,458	)
US Realty Equity		61,248		580,011		12,278,081
Global Realty Equity		106,201		1,814		108,021

(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. The 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.

(h) Redemption Fee—The Portfolios 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 management 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

Annual Report 35

Portfolio	Annual Rate

Global Listed Infrastructure		0.90	%
US Realty Income		0.75
US Realty Equity		0.80
Global Realty Equity*		0.85

* From January 1, 2014 to June 30, 2014, the annual rate was 0.90%.

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*		1.10			1.40			2016

* From January 1, 2014 to June 30, 2014, percentages were 1.15% and 1.45%, respectively.

During the year ended December 31, 2014, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:

	Institutional Shares				Open Shares
Portfolio	Management Fees Waived		Expenses Reimbursed		Management Fees Waived		Expenses Reimbursed

US Realty Equity	$	16,930	$	—	$	49,790	$	—
Global Realty Equity		45,164		80,415		27,410		53,782

4. Directors’ Compensation

36 Annual Report

Effective January 1, 2015, the compensation for Independent Directors is comprised of: (1) an annual retainer of $190,000, (2) an additional annual fee of $20,000 to the lead Independent Director, and (3) an additional annual fee of $10,000 to the Audit Committee Chair. The Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings, although permeeting attendance fees will no longer be paid. Compensation is, generally, divided among the Lazard Funds and Lazard Alternative Emerging Markets 1099 Fund, a closed-end registered management investment company advised by an affiliate of the Investment Manager (the “1099 Fund”), based on relative net assets. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. The Statements of Operations show the Directors’ fees and expenses paid by each Portfolio.

5. Securities Transactions and Transactions with Affiliates

Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2014 were as follows:

Portfolio	Purchases		Sales

Global Listed Infrastructure	$	1,176,327,190	$	465,543,153
US Realty Income		92,160,416		70,477,188
US Realty Equity		59,559,030		35,361,264
Global Realty Equity		6,812,453		8,323,923

6. Line of Credit

Portfolio	Average Daily Loan Balance*		Maximum Daily Loan Outstanding		Weighted Average Interest Rate			Number of Days Borrowings were Outstanding

US Realty Income	$	3,046,154	$	6,350,000		1.10	%		13
US Realty Equity		365,909		825,000		1.10			22
Global Realty Equity		146,077		361,000		1.10			26

*	For days borrowings were outstanding.

Management believes that the fair value of the liabilities under the line of credit is equivalent to the recorded amount based on its short term maturity and interest rate, which fluctuates with LIBOR. The line of credit outstanding as of December 31, 2014 is categorized as Level 2 (see Note 9).

7. Investment Risks

Annual Report 37

(b) Infrastructure Companies Risk—Global Listed Infrastructure Portfolio’s assets are invested primarily in securities of companies related to infrastructure industries. Securities and instruments of infrastructure companies are more susceptible to adverse economic or regulatory occurrences affecting their industries. Infrastructure companies may be subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors. Infrastructure companies also may be affected by or subject to: regulation by various government authorities, including rate regulation; service interruption due to environmental, operational or other mishaps; the imposition of special tariffs and changes in tax laws, regulatory policies and accounting standards; and general changes in market sentiment towards infrastructure and utilities assets.

(c) Realty Companies Risk—Since US Realty Income, US Realty Equity and Global Realty Equity Portfolios focus their investments in realty companies, the Portfolios could lose money due to the performance of real estate-related securities even if securities markets generally are experiencing positive results. The performance of investments made by the Portfolios may be determined to a great extent by the current status of the real estate industry in general, or by other factors (such as interest rates and the availability of loan capital) that may affect the real estate industry, even if other industries would not be so affected. Consequently, the investment strategies of the Portfolios could lead to securities investment results that may be significantly different from investments in securities of other industries or sectors or in a more broad-based portfolio generally. The risks related to investments in realty companies include, but are not limited to: adverse changes in general economic and local market conditions; adverse developments in employment; changes in supply or demand for similar or competing properties; unfavorable changes in applicable taxes, governmental regulations and interest rates; operating or development expenses; and lack of available financing. Due to certain special considerations that apply to REITs, investments in REITs may carry additional risks not necessarily present in investments in other securities. REIT securities (including

those trading on national exchanges) typically have trading volumes that are less than those of common stocks of non-realty companies traded on national exchanges, which may affect the Portfolios’ ability to trade or liquidate those securities. An investment in REITs may be adversely affected or lost if the REIT fails to comply with applicable laws and regulations, including failing to qualify as a REIT under the Code. Failure to qualify with any of these requirements could jeopardize a company’s status as a REIT. The Portfolios generally will have no control over the operations and policies of the REITs, and the Portfolios generally will have no ability to cause a REIT to take the actions necessary to qualify as a REIT.

8. Contractual Obligations

9. Fair Value Measurements

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

38 Annual Report

•	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)

Changes in valuation technique may result in transfer into or out of the current assigned level within the hierarchy.

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

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 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 December 31, 2014

Global Listed Infrastructure Portfolio
Assets:
Common Stocks*		$	304,745,544		$	1,120,548,263		$	—	$	1,425,293,807
Short-Term Investment			54,796,965			—			—		54,796,965
Other Financial Instruments**
Forward Currency Contracts			—			17,854,270			—		17,854,270
Total		$	359,542,509		$	1,138,402,533		$	—	$	1,497,945,042
Liabilities:
Other Financial Instruments**
Forward Currency Contracts		$	—		$	(567,267	)	$	—	$	(567,267	)
US Realty Income Portfolio
Common Stocks*		$	13,647,215		$	—		$	—	$	13,647,215
Preferred Stocks*			30,309,478			—			—		30,309,478
Real Estate Investment Trusts			107,984,601			—			—		107,984,601
Short-Term Investment			2,904,095			—			—		2,904,095
Total		$	154,845,389		$	—		$	—	$	154,845,389
US Realty Equity Portfolio
Common Stocks*		$	9,088,993		$	—		$	—	$	9,088,993
Real Estate Investment Trusts			99,472,357			—			—		99,472,357
Short-Term Investment			1,282,479			—			—		1,282,479
Total		$	109,843,829		$	—		$	—	$	109,843,829
Global Realty Equity Portfolio
Common Stocks*		$	467,919		$	1,773,051		$	—	$	2,240,970
Real Estate Investment Trusts*			3,051,298			1,459,300			—		4,510,598
Short-Term Investment			16,508			—			—		16,508
Total		$	3,535,725		$	3,232,351		$	—	$	6,768,076

*	Please refer to Portfolios of Investments (page 14 through 19) and Notes to Portfolios of Investments (page 21) for portfolio holdings by country and industry.

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

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.

Annual Report 39

At December 31, 2014, securities valued at the following amounts were transferred from Level 1 to Level 2:

Portfolio	Amount

Global Listed Infrastructure	$	497,242,590
Global Realty Equity		2,518,973

There were no other transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 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.

Global Listed Infrastructure Portfolio

During the year ended December 31, 2014, the notional amounts of purchases and sales of forward currency contracts were $4,059,299,016 and $4,701,759,762, respectively, with average notional exposure of approximately $942,900,000.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2014:

	Fair Value

Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	17,854,270
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	567,267

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2014 was:

	Amount

Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	90,871,561
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts	$	19,651,259

US Realty Equity Portfolio

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 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 year ended December 31, 2014, US Realty Income and Global Realty Equity Portfolios did not trade in derivatives.

As of December 31, 2014, 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 a single payment in the event of default on, or termination of, any one contract.

40 Annual Report

The required information for the affected Portfolio is presented in the below table, as of December 31, 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	$17,854,270	$ —	$17,854,270

				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		$	189,941	$	—		$	—	$	189,941
BNP Paribas SA			1,839,378		(66,359	)		—		1,773,019
Canadian Imperial Bank of Commerce			4,199,856		(41,413	)		—		4,158,443
Citibank NA			1,672,859		(84,893	)		—		1,587,966
Credit Suisse International			1,630,383		(140,728	)		—		1,489,655
HSBC Bank USA NA			1,950,414		(77,466	)		—		1,872,948
The Bank of New York Mellon Corp.			2,080,450		—			—		2,080,450
Royal Bank of Canada			4,290,989		(57,829	)		—		4,233,160
Total		$	17,854,270	$	(468,688	)	$	—	$	17,385,582

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	$567,267	$ —	$567,267

				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

BNP Paribas SA		$	66,359	$	(66,359	)	$	—	$	—
Canadian Imperial Bank of Commerce			41,413		(41,413	)		—		—
Citibank NA			84,893		(84,893	)		—		—
Credit Suisse International			140,728		(140,728	)		—		—
HSBC Bank USA NA			77,466		(77,466	)		—		—
JPMorgan Chase Bank NA			9,984		—			—		9,984
Royal Bank of Canada			57,829		(57,829	)		—		—
State Street Bank and Trust Co.			88,595		—			—		88,595
Total		$	567,267	$	(468,688	)	$	—	$	98,579

Annual Report 41

11. Change of Independent Registered Public Accounting Firm

12. Subsequent Events

42 Annual Report

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

To the Shareholders and Board of Directors of The Lazard Funds, Inc.:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Lazard Global Listed Infrastructure Portfolio, Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio and Lazard Global Realty Equity Portfolio (collectively the “Portfolios”), four of the portfolios constituting The Lazard Funds, Inc. (the “Fund”) as of December 31, 2014, and the related statements of operations and changes in net assets and the financial highlights for year then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial statements of the Portfolios for the year ended December 31, 2013 were audited by other auditors whose reports, dated February 28, 2014, expressed an unqualified opinion on those statements.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Lazard Global Listed Infrastructure Portfolio, Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio and Lazard Global Realty Equity Portfolio of The Lazard Funds, Inc. as of December 31, 2014, the results of their operations, changes in their net assets and the financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP
New York, New York
February 28, 2015

Annual Report 43

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⁾:

Franci J. Blassberg (61)	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)

Kenneth S. Davidson (69)	Director (August 1995)	Davidson Capital Management Corporation, an investment manager, President (1978 – present)

		Landseer Advisors LLC, an investment manager, Senior Advisor (2012 – 2014)

		Aquiline Holdings LLC, an investment manager, Partner (2006 – 2012)

Nancy A. Eckl (52)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)

		TIAA-CREF Funds (62 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)

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 (67)	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 (54)	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)

44 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 January 31, 2015, 38 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 the 1099 Fund.

⁽³⁾	“Independent Directors” are not “interested persons” (as defined in the Act) of the Fund.

⁽⁴⁾	Messrs. Bhutani and Carroll are “interested persons” (as defined in the Act) of the Fund because of their positions with the Investment Manager.

The Fund’s Statement of Additional Information contains further information about the Directors and is available without charge by calling 800-823-6300, or online, at www.LazardNet.com.

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 (42)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager

Stephen St. Clair (56)	Treasurer (May 2003)	Vice President of the Investment Manager

Mark R. Anderson (44)	Chief Compliance Officer (September 2014)	Chief Compliance Officer and Director of the Investment Manager (since September 2014)

		Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014)

Tamar Goldstein (39)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) of the Investment Manager

Cesar A. Trelles (40)	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, except Messrs. St. Clair and Trelles, serves in the same capacity for the other Lazard Funds and the 1099 Fund. Messrs. St. Clair and Trelles serve in the same capacity for the other Lazard Funds.

⁽³⁾	In addition to Charles L. Carroll, President, whose information is included in the Interested Directors section.

Annual Report 45

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

Tax Information
Year Ended December 31, 2014

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2014:

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

Portfolio	Percentage

Global Listed Infrastructure		35.24	%
US Realty Income		—
US Realty Equity		7.03
Global Realty Equity		2.57

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

Portfolio	Percentage

Global Listed Infrastructure		3.98	%
US Realty Income		—
US Realty Equity		6.97
Global Realty Equity		1.02

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

Proxy Voting

Form N-Q

46 Annual Report

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

ITEM 2. CODE OF ETHICS.

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

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

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

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The Registrant’s principal accountants were Anchin, Block & Anchin LLP (AB&A) for year 2013 and Deloitte & Touche LLP (D&T) for year 2014.

(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $877,800 in 2013 (AB&A) and $890,000 in 2014 (D&T).

(b) Audit-Related Fees. There were no fees billed in the Reporting Periods by the Auditor to the Registrant for assurance and related services that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item 4.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods by the Auditor to the Registrant for professional services rendered by the Auditor for tax compliance, tax advice and tax planning (“Tax Services”) were $193,600 in 2013 (AB&A) and $203,900 in 2014 (D&T). These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held. There were no fees billed in the Reporting Periods for Tax Services by the Auditor to Lazard Asset Management LLC, the Registrant’s investment manager (‘Lazard”), and any entity controlling, controlled by or under common control with Lazard that provides ongoing services to the Registrant (“Service Affiliates”).

(d) All Other Fees. There were no fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant, other than the services reported in paragraphs (a) through (c) above. There were no fees billed in the Reporting Periods for non-audit services by the Auditor to Service Affiliates, other than the serviced reported in paragraphs (a) through (c) above.

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

(f) None.

(g) Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant and Service Affiliates for the Reporting Periods were $193,600 in 2013 (AB&A) and $1,290,951 in 2014 (D&T).

(h) Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. INVESTMENTS

Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

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

ITEM 11. CONTROLS AND PROCEDURES.

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

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

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

ITEM 12. EXHIBITS.

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

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

(a)(3) Not applicable.

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

SIGNATURES

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

The Lazard Funds, Inc.

By	/s/ Charles L. Carroll
	Charles L. Carroll
	Chief Executive Officer

Date	March 10, 2015

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

By	/s/ Charles L. Carroll
	Charles L. Carroll
	Chief Executive Officer

Date	March 10, 2015

By	/s/ Stephen St. Clair
	Stephen St. Clair
	Chief Financial Officer

Date	March 10, 2015