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:	12/31/15

ITEM 1. REPORTS TO STOCKHOLDERS.

Lazard Funds Annual Report

December 31, 2015

Alternative Funds

Lazard Enhanced Opportunities Portfolio

Lazard Fundamental Long/Short Portfolio

Lazard Master Alternatives Portfolio

PRIVACY NOTICE Revised September 30, 2015

FACTS	What does Lazard do with your personal information?
Why?	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?	The types of personal information we collect and share depend on the product or service you have with us. This information can include:
	• Social Security number
	• Assets and income
	• Account transactions
	• Credit history
	• Transaction history
	When you are no longer our customer, we continue to share your information as described in this notice.
How?	All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Lazard chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does Lazard share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	No	We do not share
For joint marketing with other financial companies	No	We do not share
For our affiliates’ everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates’ everyday business purposes — information about your creditworthiness	No	We do not share
For nonaffiliates to market to you	No	We do not share

Questions? Call 800-823-6300 or go to http://www.LazardNet.com

Who we are
Who is providing this notice?	Lazard Asset Management LLC, Lazard Alternatives, LLC, Lazard Asset Management (Canada), Inc., Lazard Asset Management Securities LLC on their own behalf and on behalf of the funds they manage.
What we do
How does Lazard protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We believe the measures also comply with applicable state laws.
How does Lazard collect my personal information?	We collect your personal information, for example, when you:
	• Open an account
	• Seek advice about your investments
	• Direct us to buy securities
	• Direct us to sell your securities
	• Enter into an investment advisory contract
	We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?	Federal law gives you the right to limit only:
	• Sharing for affiliates’ everyday business purposes—information about your creditworthiness
	• Affiliates from using your information to market to you
	• Sharing for nonaffiliates to market to you
	State laws and individual companies may give you additional rights to limit sharing.
Definitions
Affiliates	Companies related by common ownership or control. They can be financial and nonfinancial companies.
	Our affiliates include financial companies whose names include “Lazard.”
Nonaffiliates	Companies not related by common ownership or control. They can be financial and nonfinancial companies.
	Lazard does not share information with nonaffiliates so they can market to you.
Joint marketing	A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
	Lazard does not jointly market.

Other important information

Lazard Asset Management (Canada), Inc. does not disclose any non-public personal information about its customers or former customers to any third party, except as permitted by or required by any applicable law, including the laws of the United States and Canada.

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 Sector
12	Portfolios of Investments
12	Lazard Enhanced Opportunities Portfolio
19	Lazard Fundamental Long/Short Portfolio
22	Lazard Master Alternatives Portfolio
38	Notes to Portfolios of Investments
40	Statements of Assets and Liabilities
41	Statements of Operations
42	Statements of Changes in Net Assets
44	Financial Highlights
47	Notes to Financial Statements
62	Report of Independent Registered Public Accounting Firm
63	Board of Directors and Officers Information
66	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 2015, global equity market volatility increased due to the prospect of a debt default by Greece, uncertain global monetary policy, and oil price instability. In the US, markets rose modestly as the labor market improved and corporate earnings generally exceeded expectations. Japanese equities extended their impressive streak as Abenomics reforms began to pay dividends. In Europe, the economic recovery continued, but investor enthusiasm remained tepid as countries in the region made mixed progress. Meanwhile, emerging markets assets recorded another difficult year due to economic and political challenges and uncertainty about the possibility of interest rate increases in the US.

Interest rates diverged around the world after the US Federal Reserve announced its highly anticipated rate hike on December 16, and the US yield curve flattened as shorter-maturity yields rose slightly more than those with longer maturities. Currencies were volatile in 2015 and the US dollar strengthened against most of its global counterparts. Investor enthusiasm for European bonds with very low or negative yields waned as the effects of European Central Bank bond repurchases began to fade.

At Lazard Asset Management, we remain focused on active management and are committed to responsibly pursuing the Portfolios’ investment objectives so that you, a valued shareholder in Lazard Funds, achieve your financial goals.

We appreciate your continued confidence in our investment management capabilities, and feel privileged that you have turned to Lazard for your investment needs.

Sincerely,

Lazard Asset Management LLC

2  Annual Report

The Lazard Funds, Inc. Investment Overviews

Lazard Alternatives

The large cap S&P 500^® Index was up modestly in the first quarter of 2015 and the European Central Bank’s formal announcement of quantitative easing (QE) met or exceeded the market’s expectations, lifting equities on the European Continent in both US dollar and euro currency terms. Furthermore, continued QE in Japan and easing of monetary policy in China caused flows into the major markets in those two countries. Credit spreads generally stabilized and in some cases tightened throughout the quarter. Many energy credits which were under pressure actually stabilized amid the de-risking experienced in the 4th quarter of 2014. Among non-investment grade names, higher-rated names tended to do better than lower-rated names. Equity volatility, as measured by the Chicago Board Options Exchange Volatility^® Index (VIX), was in a range and subsided from January’s elevated levels. Nonetheless, the “volatility of volatility”, which may be a more important measure, was subdued allowing for the capture of equity moves underlying convertibles. The shape of the US yield curve was dictated by expectations on the timing of the US Federal Reserve’s (the “Fed”) expected rate hikes. Longer term yields dropped to all time or multi-year lows to start the first quarter, but moved off the lows during the quarter.

US equities finished the second quarter up slightly, but limped into quarter end in light of the worsening debt crisis in Greece. Japanese equities continued to perform well as aggressive QE continues, and pension funds are on balance shifting from Japanese government bonds to equities. European stocks generally continued their outperformance versus US stocks until the Continent gave up most of its gains during the quarter because of uncertainty regarding Greece. Chinese equities showed evidence of a bubble as a highly leveraged retail presence, encouraged by an accommodative central government, has emerged in the world’s second largest stock market. Credit was stable during the quarter, but, similar to equities, stumbled at the end of the quarter. Higher quality high yield outperformed the lowest-rated debt and continued its lead over investment grade debt that has been hampered by potential interest rate increases. The US yield curve steepened during the quarter,

though the long end of the curve rallied in response to building Greek turmoil at quarter’s end. Equity volatility (as measured by the VIX) was mostly subdued during the second quarter however, volatility picked up materially by June’s end in light of Greece.

Global equities came under pressure in the third quarter of 2015 and many indices had their worst quarter since 2011. Worries over a Greek exit from the euro currency were quickly followed by increasing concerns over a slowing China and the timing of interest rate hikes by the Fed. Commodities were weaker due to global oversupply and lower demand from China. Front month contracts, the shortest duration contract that can be purchased in the futures market for West Texas Intermediate crude oil, fell 24% and made new multiyear lows of $38.24 per barrel. Copper, a gauge of global economic health due to its ubiquitous presence in many sectors of the economy, fell 10% and also made new multiyear lows. Credit spreads moved wider and proved to be a leading indicator of the volatile price action in equities and other risk assets experienced in the quarter. Bond yield on the US 10-year treasury fell from 2.35% to 2.04% and the yield curve flattened. Investors looked for a safe haven in the long end of the curve and prepared for the inevitability of a rate hike in the short end. Equity volatility (as measured by the VIX) made 4-year highs amid the prospects of a slowing China, stop loss selling, and uncertainty around Fed liftoff.

Global equities bounced strongly in the first several days of October and by the end of the month, in a solid upward trajectory, claimed much of what was lost in August and September. Lowered earnings expectations were largely beaten as positive earnings surprises came in stronger than negative surprises, as has been the trademark of resilient markets over the past several years. Commodities rallied for the first two weeks of October and crude oil moved back above $50. By the end of quarter, however, crude oil came close to touching $35, which was near the low of the year. Other commodities followed suit, bottoming in the third week of September at 76.25 according to the Bloomberg Commodity Index, before finishing the year slightly higher. Credit spreads initially tightened, with the BofA ML HY Master II Index opening

Annual Report  3

the quarter at +665 over LIBOR and then tightening to inside +600 by the end of October. Spreads then resumed widening, peaking at +745 over LIBOR on December 14th and closing out the year at LIBOR +700. Yield on the US 10 year Treasury Bond bottomed below 2% in early October before rising to close out the month at 2.16%. On November 9th, it made a high for the quarter at 2.375% and closed out the year at 2.27%. The VIX dropped from its close of 24.5% at the end of September to a low of 13.5% on October 23rd. It then resumed its northward trajectory, moving above 26% on December 14th and closing out the year at 18.2%.

Lazard Enhanced Opportunities Portfolio

For the year ended December 31, 2015, the Lazard Enhanced Opportunities Portfolio’s Institutional Shares posted a total return of -2.32%, while Open Shares posted a total return of -2.57%, as compared with the -2.75% return for the BofA Merrill Lynch U.S. Convertible ex Mandatory^® Index and -3.49% return for the HFRX Global Hedge Fund^® Index.

Portfolio level hedges, such as macro equity hedges and interest rate hedges, positively offset periodic risk-off in the market throughout 2015. In addition, hedged positions in real estate investment trusts performed well as equity volatility increased. Although a relatively small exposure in the Portfolio, commodity and natural resource related exposure was a head-wind to the Portfolio in 2015. While this exposure continues to be reduced, the Portfolio was subject to the volatility associated with residual energy related names. Additionally, and generally speaking, performance in 2015 was impacted by a widening of spreads and an overall reduction in risk appetite that affected the credit component of many convertibles. Convertibles cheapened relative to fair value as the market was slow to incorporate the full value of increased equity volatility. Derivatives (short positions on stocks and options) represented approximately -11% of the Portfolio’s net exposure at the end of 2015. The primary use of derivatives in the Portfolio is to mitigate macro equity, credit, and interest rate risk.

Lazard Fundamental Long/Short Portfolio

For the year ended December 31, 2015, the Lazard Fundamental Long/Short Portfolio’s Institutional Shares posted a total return of 5.97%, while Open Shares posted a total return of 5.62%, as compared with the -2.35% return for the HFRX Equity Hedge^® Index and 1.38% return for the S&P 500 Index.

A long position in medical device maker Natus Medical helped returns, as shares rose after the company reported quarterly earnings above expectations and management raised its earnings guidance for the year, driven by stronger revenues. A short position in watchmaker Fossil contributed to performance, as shares fell after management lowered its earnings guidance for the year, citing slower sales and foreign exchange headwinds. We covered our position after the announcement in November, as the stock approached our target valuation. The Portfolio also benefitted from a short position in renal disease treatment maker Keryx, as shares fell amid concerns about disappointing prescription trends. We covered our position in September, as the stock approached our target valuation.

In contrast, a long position in American Airlines detracted from performance, as shares fell amid increasing oil prices and capacity concerns in the industry, with competitor Southwest’s expansion in the Dallas area directly impacting American’s market share. We sold our position in July, as we saw opportunities with better risk-reward profiles. A long position in Brookdale Senior Living also detracted from performance, as shares fell after the company reported quarterly earnings below expectations and management reduced its earnings guidance for the year, citing weaker-than-expected occupancy rates. We sold our position after the announcement in August, as we saw opportunities with better risk-reward profiles. The Portfolio was also hurt by its long position in media company Viacom, as shares fell amid speculation that Dish Network may drop some of Viacom’s channels, as well as concerns about declining advertising revenues. We sold our position in July, as we saw opportunities with better risk-reward profiles.

4  Annual Report

The Portfolio had a 55% weight in derivatives (short equity positions) as of December 31, 2015. Short positions contributed positively to performance in 2015.

Lazard Master Alternatives Portfolio

For the year ended December 31, 2015, the Lazard Master Alternatives Portfolio’s Institutional Shares posted a total return of 0.30%, while Open Shares posted a total return of 0.00%, as compared with the -3.49% return for the HFRX Global Hedge Fund Index and -0.87% return for the MSCI World^® Index.

The Portfolio invests in various alternative investment strategies. Currently, the Portfolio has exposure to five underlying strategies: Global Hexagon, Emerging Markets Alpha Advantage, Fundamental Long/Short, European Long/Short Equity, and Japan Vela. The Portfolio allocation to each sub-strategy is determined by the portfolio management team.

As of December 31, 2015, the Portfolio allocation was as follows:

Investment Strategy	Sub-strategy	Allocation
Global Equity Long/Short	Global Hexagon	18	%
Emerging Markets Equity Long/Short	Emerging Markets Alpha Advantage	27	%
US Equity Long/Short	Fundamental Long/Short	20	%
European Equity Long/Short	European Long/Short Equity	26	%
Japanese Equity Long/Short	Japan Vela	9	%

With the exception of Japan Vela, each of the sub-strategies in the Portfolio contributed positively to performance on a gross basis in 2015, led by Fundamental Long/Short, and followed by Emerging Markets Alpha Advantage, Global Hexagon, and European Long/Short Equity. Derivatives (short positions on stocks, futures and forward contracts) represented about 15% of the gross exposure of the portfolio and were broadly additive to performance during 2015.

As of December 31, 2015, the Portfolio had its greatest market capitalization exposure to mid-cap ($2-10 billion) securities at 34% of gross exposure, with 33% in large cap ($10-50 billion), 18% in small cap (less than $2 billion), and 18% in mega-cap (over $50 billion) securities. In terms of sector weightings, financials (27%), industrials (14%), and consumer discretionary (13%) represented the top three exposures. Almost three fourths of the Portfolio was invested in securities based outside North America, and was allocated across roughly 45 countries.

The Portfolio ended the year with gross exposure of 125% and net exposure of 39%.

Notes to Investment Overviews:

Total 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, 2015; these views and portfolio holdings may have changed subsequent to this date. Nothing herein should be construed as a recommendation to buy, sell, or hold a particular security. There is no assurance that the securities discussed herein will remain in a Portfolio at the time you receive this report, or that securities sold will not have been repurchased. The specific securities discussed may, in aggregate, represent only a small percentage of a Portfolio’s holdings. It should not be assumed that securities identified and discussed were, or will be, profitable, or that the investment decisions made in the future will be profitable, or equal the investment performance of the securities discussed herein.

The views and opinions expressed are provided for general information only, and do not constitute specific tax, legal, or investment advice to, or recommendations for, any person. There can be no guarantee as to the accuracy of any outlooks for markets, sectors and securities as discussed herein. You should read the Fund’s prospectus or each Portfolio’s summary prospectus for a more detailed discussion of each Portfolio’s investment objectives, strategies, risks and fees.

Annual Report  5

The Lazard Funds, Inc. Performance Overviews

Lazard Enhanced Opportunities Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Enhanced Opportunities Portfolio, BofA Merrill Lynch U.S. Convertible ex Mandatory^® Index and HFRX Global Hedge Fund^® Index*

Average Annual Total Returns*

Periods Ended December 31, 2015

		Since
	One Year	Inception	†
Institutional Shares**	-2.32%	-2.32%
Open Shares**	-2.57%	-2.57%
BofA Merrill Lynch U.S. Convertible ex Mandatory Index	-2.75%	-2.75%
HFRX Global Hedge Fund Index	-3.49%	-3.49%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and may differ from amounts reported in the financial highlights.
	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 BofA Merrill Lynch U.S. Convertible ex Mandatory Index measures the performance of convertible securities of all corporate sectors with a par amount of $25 million or more and a maturity of at least one year and excludes preferred equity redemption stocks and converted securities. The HFRX Global Hedge Fund Index is designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies; including but not limited to convertible arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage, and relative value arbitrage. The strategies are asset weighted based on the distribution of assets in the hedge industry. The indices are unmanaged, have no fees or costs and are not available for investment.
**	The performance of Institutional Shares and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was December 31, 2014.

6  Annual Report

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*

Average Annual Total Returns*

Periods Ended December 31, 2015

		Since
	One Year	Inception	†
Institutional Shares**	5.97%	12.04%
Open Shares**	5.62%	11.76%
S&P 500 Index	1.38%	7.26%
HFRX Equity Hedge Index	-2.35%	-0.47%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, 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  7

Lazard Master Alternatives Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Master Alternatives Portfolio, MSCI World^® Index and HFRX Global Hedge Fund Index*

Average Annual Total Returns*

Periods Ended December 31, 2015

		Since
	One Year	Inception	†
Institutional Shares**	0.30%	0.30%
Open Shares**	0.00%	0.00%
MSCI World Index	-0.87%	-0.87%
HFRX Global Hedge Fund Index	-3.49%	-3.49%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 HFRX Global Hedge Fund Index is designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies; including but not limited to convertible arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage, and relative value arbitrage. The strategies are asset weighted based on the distribution of assets in the hedge industry. The indices are unmanaged, have no fees or costs and are not available for investment.
**	The performance of Institutional Shares and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was December 31, 2014.

8  Annual Report

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

Expense Example

As a shareholder in a Portfolio of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from July 1, 2015 through December 31, 2015 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 shareholder reports of other mutual 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.

Annual Report  9

Portfolio	Beginning Account Value 7/1/15		Ending Account Value 12/31/15		Expenses Paid During Period* 7/1/15 - 12/31/15		Annualized Expense Ratio During Period 7/1/15 - 12/31/15
Enhanced Opportunities
Institutional Shares
Actual	$	1,000.00	$	968.00		$  8.43		1.70	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,016.64		$  8.64		1.70	%
Open Shares
Actual	$	1,000.00	$	966.50		$  9.67		1.95	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,015.38		$  9.91		1.95	%
Fundamental Long/Short†
Institutional Shares
Actual	$	1,000.00	$	1,035.80		$18.47		3.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,007.06		$18.21		3.60	%
Open Shares
Actual	$	1,000.00	$	1,034.10		$19.74		3.85	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,005.80		$19.46		3.85	%
Master Alternatives†
Institutional Shares
Actual	$	1,000.00	$	982.40		$12.69		2.54	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,012.40		$12.88		2.54	%
Open Shares
Actual	$	1,000.00	$	980.40		$15.47		3.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,009.58		$15.70		3.10	%

*	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).
†	The expense ratios include broker expense and dividend expense on securities sold short.

10  Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2015

	Lazard Enhanced Opportunities			Lazard Fundamental Long/Short Portfolio						Lazard Master Alternatives Portfolio
Sector	Portfolio*			Long**			Short†			Long**			Short†
Consumer Discretionary		2.8	%		10.7	%		-19.7	%		10.0	%		-16.5	%
Consumer Staples		2.5			5.4			-3.7			7.5			-7.2
Energy		1.2			—			—			2.0			-1.1
Financials		10.1			12.5			-28.6			18.0			-18.7
Health Care		5.5			12.3			-20.1			9.1			-19.9
Industrials		2.8			4.4			-14.0			11.4			-16.7
Information Technology		3.4			7.5			-10.4			7.1			-8.3
Materials		0.4			1.2			-3.5			4.4			-6.1
Telecommunications Services		—			—			—			2.1			—
Utilities		—			—			—			2.0			—
Exchange-Traded Funds		—			—			—			1.1			-5.5
Short-Term Investments		71.3			46.0			—			25.3			—
Total Investments		100.0	%		100.0	%		-100.0	%		100.0	%		-100.0	%

*	Represents percentage of total investments.
**	Represents percentage of total investments excluding securities sold short.
†	Represents percentage of total securities sold short.

Annual Report  11

The Lazard Funds, Inc. Portfolios of Investments December 31, 2015

Description	Shares		Value
Lazard Enhanced Opportunities Portfolio
Common Stocks | 2.9%
Canada | 0.2%
Air Canada (a)		1,340	$	9,887
Israel | 0.1%
Teva Pharmaceutical Industries, Ltd. Sponsored ADR		82		5,382
United States | 2.6%
AmTrust Financial Services, Inc.		47		2,894
ANI Pharmaceuticals, Inc. (a)		146		6,588
Bank of America Corp.		689		11,596
Chesapeake Energy Corp.		297		1,336
Cobalt International Energy, Inc. (a)		87		470
CVS Health Corp.		76		7,431
Exelixis, Inc. (a)		8,405		47,404
Forest City Enterprises, Inc. Class A (a)		100		2,193
Gramercy Property Trust REIT		22		172
Hovnanian Enterprises, Inc. Class A (a)		709		1,283
Iconix Brand Group, Inc. (a)		18		123
JAKKS Pacific, Inc. (a)		193		1,536
MGIC Investment Corp. (a)		240		2,119
Nuance Communications, Inc. (a)		50		995
RAIT Financial Trust REIT		611		1,650
Renewable Energy Group, Inc. (a)		154		1,431
Sequenom, Inc. (a)		697		1,143
SolarCity Corp. (a)		78		3,980
Solazyme, Inc. (a)		2,312		5,734
SunEdison, Inc. (a)		589		2,998
Theravance, Inc.		1,311		13,818
Trinity Industries, Inc.		117		2,810
Violin Memory, Inc. (a)		7,070		6,364
Voya Financial, Inc.		91		3,359
				129,427
Total Common Stocks
(Identified cost $142,219)				144,696

Description	Principal Amount (000) (b)		Value
Corporate Bonds | 20.2%
Marshall Island | 0.7%
Aegean Marine Petroleum Network, Inc., 4.000%, 11/01/18		36	$	31,253
United States | 19.5%
Aceto Corp., 2.000%, 11/01/20 (c)		27		27,354
Alpha Natural Resources, Inc., 4.875%, 12/15/20 (d)		158		198
AMAG Pharmaceuticals, Inc., 7.875%, 09/01/23 (c)		25		22,000
Apollo Commercial Real Estate Finance, Inc., 5.500%, 03/15/19		15		15,028
Ascent Capital Group, Inc., 4.000%, 07/15/20		55		35,647
Atlas Air Worldwide Holdings, Inc., 2.250%, 06/01/22		30		24,825
Broadsoft, Inc., 1.000%, 09/01/22 (c)		31		33,461
Cenveo Corp., 7.000%, 05/15/17		20		14,737
Chesapeake Energy Corp., 2.500%, 05/15/37		15		7,050
CHS/Community Health Systems, Inc., 7.125%, 07/15/20		40		39,850
Dycom Industries, Inc., 0.750%, 09/15/21 (c)		1		983
Empire State Realty OP LP, 2.625%, 08/15/19 (c)		56		58,590
FXCM, Inc., 2.250%, 06/15/18		55		38,225
Harmonic, Inc., 4.000%, 12/01/20 (c)		25		23,750
IAS Operating Partnership LP, 5.000%, 03/15/18 (c)		28		26,355

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

12  Annual Report

Description	Principal Amount (000) (b)		Value
Lazard Enhanced Opportunities Portfolio (continued)
Iconix Brand Group, Inc.:
2.500%, 06/01/16		24	$	21,360
1.500%, 03/15/18		2		985
Integrated Device Technology, Inc., 0.875%, 11/15/22 (c)		44		45,292
Ironwood Pharmaceuticals, Inc., 2.250%, 06/15/22 (c)		31		28,869
JAKKS Pacific, Inc., 4.875%, 06/01/20 (c)		25		24,187
MGIC Investment Corp., 9.000%, 04/01/63 (c)		29		33,785
Navistar International Corp., 4.750%, 04/15/19		1		478
Northstar Realty Europe Corp., 4.625%, 12/15/16 (c)		105		102,907
Nuance Communications, Inc., 1.000%, 12/15/35 (c)		17		16,352
PRA Group, Inc., 3.000%, 08/01/20		2		1,690
RAIT Financial Trust, 4.000%, 10/01/33		50		39,531
Renewable Energy Group, Inc., 2.750%, 06/15/19		25		21,109
SolarCity Corp., 1.625%, 11/01/19		1		808
Solazyme, Inc., 5.000%, 10/01/19		5		2,434
Spirit Realty Capital, Inc., 2.875%, 05/15/19		39		37,269
Starwood Property Trust, Inc., 4.550%, 03/01/18		2		2,025
Starwood Waypoint Residential Trust, 3.000%, 07/01/19		41		37,874
Trinity Industries, Inc., 3.875%, 06/01/36		67		80,191
Violin Memory, Inc., 4.250%, 10/01/19		40		23,600
Vitamin Shoppe, Inc., 2.250%, 12/01/20 (c)		23		23,474
Wright Medical Group, Inc., 2.000%, 02/15/20 (c)		49		50,684
				962,957
Total Corporate Bonds
(Identified cost $1,095,632)				994,210

Description	Shares		Value
Preferred Stocks | 2.8%
United States | 2.8%
Bunge, Ltd.		406	$	37,774
Chesapeake Energy Corp.		24		4,560
Cowen Group, Inc. Series A		40		29,778
Universal Corp.		57		64,125
Total Preferred Stocks
(Identified cost $157,296)				136,237
Short-Term Investment | 64.2%
State Street Institutional Treasury
Money Market Fund
(Identified cost $3,167,192)		3,167,192		3,167,192

Description	Number of Contracts		Value
Purchased Options | 0.0%
Freeport-McMoRan, Inc. 12 Call,
Expires 01/15/16		17	$	17
Micron Technology, Inc. 20 Call,
Expires 01/15/16		5		5
Ocwen Financial Corp. 10 Call,
Expires 01/15/16		9		36
Photronics, Inc. 12.5 Call,
Expires 03/18/16		1		80
Teck Resources, Ltd. 4 Put,
Expires 02/19/16		7		371
Tivo, Inc. 12 Call,
Expires 01/15/16		6		6
Total Purchased Options
(Identified cost $2,938)				515
Total Investments | 90.1%
(Identified cost $4,565,277) (e), (h)			$	4,442,850
Cash and Other Assets in Excess of Liabilities | 9.9%				489,466
Net Assets | 100.0%			$	4,932,316

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

Annual Report  13

Lazard Enhanced Opportunities Portfolio (continued)

Written Options open at December 31, 2015:

Description	Number of Contracts	Strike Price	Expiration Date	Premium	Value
Freeport-McMoRan, Inc. 10 Put	7	$10.00	01/15/16	$    279	$	(2,310	)
Micron Technology, Inc. 17 Put	5	17.00	01/15/16	403		(1,420	)
Tivo, Inc. 10 Put	6	10.00	01/15/16	459		(822	)
Total Written Options				$1,141	$	(4,552	)

Total Return Swap Agreements open at December 31, 2015:

Pay	Currency	Counterparty	Notional Amount (000)	Expiration Date	Receive	Unrealized Appreciation	Unrealized Depreciation
1 Month EUR LIBOR plus 0.50%	EUR	DUB	6	02/09/16	Bank of Ireland	$     236	$       —
1 Month EUR LIBOR plus 1.00%	EUR	DUB	1	01/03/17	SRP Groupe SA	117	—
1 Month USD LIBOR plus 1.00%	USD	DUB	65	09/28/16	AAR Corp.	—	2,916
1 Month USD LIBOR plus 1.00%	USD	DUB	4	09/28/16	Aceto Corp.	99	—
1 Month USD LIBOR plus 1.00%	USD	DUB	9	09/28/16	Aegean Marine Petroleum Network, Inc.	—	1,885
1 Month USD LIBOR plus 1.00%	USD	DUB	26	09/28/16	Alere, Inc.	—	756
1 Month USD LIBOR plus 1.00%	USD	DUB	26	09/28/16	Allscripts Healthcare Solutions, Inc.	42	—
1 Month USD LIBOR plus 1.00%	USD	DUB	63	09/28/16	Alon USA Energy, Inc.	—	3,911
1 Month USD LIBOR plus 1.00%	USD	DUB	94	09/28/16	Altra Industrial Motion Corp.	—	3,000
1 Month USD LIBOR plus 1.00%	USD	DUB	58	09/28/16	American Residential Properties OP LP	—	1,445
1 Month USD LIBOR plus 1.00%	USD	DUB	55	09/28/16	AmTrust Financial Services, Inc.	4,204	—
1 Month USD LIBOR plus 1.00%	USD	DUB	47	09/28/16	ANI Pharmaceuticals, Inc.	—	4,318
1 Month USD LIBOR plus 1.00%	USD	DUB	20	09/28/16	Apollo Commercial Real Estate Finance, Inc.	—	75
1 Month USD LIBOR plus 1.00%	USD	DUB	12	09/28/16	Ascent Capital Group, Inc.	—	3,128
1 Month USD LIBOR plus 1.00%	USD	DUB	11	09/28/16	Atlas Air Worldwide Holdings, Inc.	—	549
1 Month USD LIBOR plus 1.00%	USD	DUB	43	09/28/16	Blucora, Inc.	—	5,338
1 Month USD LIBOR plus 1.00%	USD	DUB	34	09/28/16	Bottomline Technologies de, Inc.	586	—
1 Month USD LIBOR plus 1.00%	USD	DUB	5	09/28/16	BroadSoft, Inc.	238	—
1 Month USD LIBOR plus 1.00%	USD	DUB	68	09/28/16	Carriage Services, Inc.	—	811
1 Month USD LIBOR plus 1.00%	USD	DUB	23	09/28/16	Cemex SAB de CV	—	8,245
1 Month USD LIBOR plus 1.00%	USD	DUB	13	09/28/16	Chesapeake Energy Corp.	—	6,230
1 Month USD LIBOR plus 1.00%	USD	DUB	10	09/28/16	Chesapeake Energy Corp.	—	3,548
1 Month USD LIBOR plus 1.00%	USD	DUB	38	09/28/16	Clovis Oncology, Inc.	1,587	—
1 Month USD LIBOR plus 1.00%	USD	DUB	19	09/28/16	Cobalt International Energy, Inc.	—	3,741
1 Month USD LIBOR plus 1.00%	USD	DUB	69	09/28/16	Cowen Group, Inc.	—	6,500
1 Month USD LIBOR plus 1.00%	USD	DUB	21	09/28/16	Dycom Industries, Inc.	—	770
1 Month USD LIBOR plus 1.00%	USD	DUB	5	09/28/16	Empire State Realty OP LP	—	19
1 Month USD LIBOR plus 1.00%	USD	DUB	57	09/28/16	Encore Capital Group, Inc.	—	11,313
1 Month USD LIBOR plus 1.00%	USD	DUB	63	09/28/16	Exelixis, Inc.	—	1,285
1 Month USD LIBOR plus 1.00%	USD	DUB	57	09/28/16	Forest City Enterprises, Inc.	—	4,550

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

14  Annual Report 

Lazard Enhanced Opportunities Portfolio (continued)

Total Return Swap Agreements open at December 31, 2015 (continued):

Pay	Currency	Counterparty	Notional Amount (000)	Expiration Date	Receive	Unrealized Appreciation	Unrealized Depreciation
1 Month USD LIBOR plus 1.00%	USD	DUB	65	09/28/16	GPT Property Trust LP	$       —	$   6,650
1 Month USD LIBOR plus 1.00%	USD	DUB	68	09/28/16	Green Plains, Inc.	—	8,975
1 Month USD LIBOR plus 1.00%	USD	DUB	4	09/28/16	Griffon Corp.	6	—
1 Month USD LIBOR plus 1.00%	USD	DUB	66	09/28/16	Hologic, Inc.	3,445	—
1 Month USD LIBOR plus 1.00%	USD	DUB	9	09/28/16	Iconix Brand Group, Inc.	—	250
1 Month USD LIBOR plus 1.00%	USD	DUB	13	09/28/16	Iconix Brand Group, Inc.	—	3,382
1 Month USD LIBOR plus 1.00%	USD	DUB	2	09/28/16	Integrated Device Technology, Inc.	—	40
1 Month USD LIBOR plus 1.00%	USD	DUB	38	09/28/16	Intel Corp.	2,446	—
1 Month USD LIBOR plus 1.00%	USD	DUB	15	09/28/16	JAKKS Pacific, Inc.	—	571
1 Month USD LIBOR plus 1.00%	USD	DUB	44	09/28/16	K Hovnanian Enterprises, Inc.	—	11,148
1 Month USD LIBOR plus 1.00%	USD	DUB	44	09/28/16	LGI Homes, Inc.	5,575	—
1 Month USD LIBOR plus 1.00%	USD	DUB	15	09/28/16	Liberty Media Corp.	—	788
1 Month USD LIBOR plus 1.00%	USD	DUB	32	09/28/16	MercadoLibre, Inc.	1,785	—
1 Month USD LIBOR plus 1.00%	USD	DUB	20	09/28/16	MGIC Investment Corp.	—	2,125
1 Month USD LIBOR plus 1.00%	USD	DUB	37	09/28/16	Molina Healthcare, Inc.	109	—
1 Month USD LIBOR plus 1.00%	USD	DUB	20	09/28/16	Navistar International Corp.	—	9,824
1 Month USD LIBOR plus 1.00%	USD	DUB	56	09/28/16	Netsuite, Inc.	—	3,050
1 Month USD LIBOR plus 1.00%	USD	DUB	35	09/28/16	Nuance Communications, Inc.	—	648
1 Month USD LIBOR plus 1.00%	USD	DUB	59	09/28/16	NXP Semiconductors NV	—	333
1 Month USD LIBOR plus 1.00%	USD	DUB	40	09/28/16	PDL Biopharma, Inc.	—	7,090
1 Month USD LIBOR plus 1.00%	USD	DUB	35	09/28/16	Photronics, Inc.	6,725	—
1 Month USD LIBOR plus 1.00%	USD	DUB	34	09/28/16	Photronics, Inc.	9,160	—
1 Month USD LIBOR plus 1.00%	USD	DUB	47	09/28/16	PRA Group, Inc.	—	7,247
1 Month USD LIBOR plus 1.00%	USD	DUB	13	09/28/16	PTC Therapeutics, Inc.	—	25
1 Month USD LIBOR plus 1.00%	USD	DUB	62	09/28/16	Quidel Corp.	—	5,125
1 Month USD LIBOR plus 1.00%	USD	DUB	4	09/28/16	RAIT Financial Trust	—	341
1 Month USD LIBOR plus 1.00%	USD	DUB	15	09/28/16	Redwood Trust, Inc.	—	769
1 Month USD LIBOR plus 1.00%	USD	DUB	29	09/28/16	Renewable Energy Group, Inc.	—	2,419
1 Month USD LIBOR plus 1.00%	USD	DUB	14	09/28/16	Restoration Hardware Holdings, Inc.	—	1,192
1 Month USD LIBOR plus 1.00%	USD	DUB	24	09/28/16	Restoration Hardware Holdings, Inc.	—	1,380
1 Month USD LIBOR plus 1.00%	USD	DUB	22	09/28/16	RWT Holdings, Inc.	—	414
1 Month USD LIBOR plus 1.00%	USD	DUB	23	09/28/16	Sequenom, Inc.	—	2,570
1 Month USD LIBOR plus 1.00%	USD	DUB	30	09/28/16	SolarCity Corp.	1,742	—
1 Month USD LIBOR plus 1.00%	USD	DUB	26	09/28/16	SolarCity Corp.	—	2,948
1 Month USD LIBOR plus 1.00%	USD	DUB	69	09/28/16	Solazyme, Inc.	—	6,965
1 Month USD LIBOR plus 1.00%	USD	DUB	73	09/28/16	Starwood Property Trust, Inc.	—	4,419
1 Month USD LIBOR plus 1.00%	USD	DUB	15	09/28/16	Starwood Property Trust, Inc.	—	95
1 Month USD LIBOR plus 1.00%	USD	DUB	20	09/28/16	Starwood Waypoint Residential Trust	—	1,209
1 Month USD LIBOR plus 1.00%	USD	DUB	6	09/28/16	SunEdison, Inc.	—	603
1 Month USD LIBOR plus 1.00%	USD	DUB	66	09/28/16	SunEdison, Inc.	—	31,320
1 Month USD LIBOR plus 1.00%	USD	DUB	34	09/28/16	SunEdison, Inc.	—	252
1 Month USD LIBOR plus 1.00%	USD	DUB	36	09/28/16	Theravance, Inc.	—	4,806

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

Annual Report  15

Lazard Enhanced Opportunities Portfolio (continued)

Total Return Swap Agreements open at December 31, 2015 (continued):

Pay	Currency	Counterparty	Notional Amount (000)	Expiration Date	Receive	Unrealized Appreciation	Unrealized Depreciation
1 Month USD LIBOR plus 1.00%	USD	DUB	44	09/28/16	TIVO, Inc.	$          —	$     1,057
1 Month USD LIBOR plus 1.00%	USD	DUB	82	09/28/16	Trinity Industries, Inc.	—	9,008
1 Month USD LIBOR plus 1.00%	USD	DUB	69	09/28/16	Vector Group, Ltd.	4,311	—
1 Month USD LIBOR plus 1.00%	USD	DUB	29	09/28/16	Violin Memory, Inc.	—	11,557
1 Month USD LIBOR plus 1.00%	USD	DUB	30	09/28/16	Wabash National Corp.	1,210	—
1 Month USD LIBOR plus 1.00%	USD	DUB	38	09/28/16	WebMD Health Corp.	687	—
1 Month USD LIBOR plus 1.00%	USD	DUB	48	09/28/16	Workday, Inc.	—	1,975
1 Month USD LIBOR plus 1.00%	USD	DUB	2	09/28/16	Wright Medical Group, Inc.	45	—
USD FED OPEN less 0.30%	USD	DUB	18	09/29/16	Gramercy Property Trust REIT	—	951
						44,355	227,854
Receive	Currency	Counterparty	Notional Amount (000)	Expiration Date	Pay	Unrealized Appreciation	Unrealized Depreciation
USD FED OPEN less 0.30%	USD	DUB	15	09/29/16	Aceto Corp.	$        —	$       711
USD FED OPEN less 0.30%	USD	DUB	12	09/29/16	Aegean Marine Petroleum Network, Inc.	—	156
USD FED OPEN less 0.30%	USD	DUB	8	09/29/16	Alere, Inc.	406	—
USD FED OPEN less 0.30%	USD	DUB	13	09/29/16	Allscripts Healthcare Solutions, Inc.	—	181
USD FED OPEN less 0.30%	USD	DUB	45	09/29/16	Alon USA Energy, Inc.	6,145	—
USD FED OPEN less 0.30%	USD	DUB	54	09/29/16	Altra Industrial Motion Corp.	2,080	—
USD FED OPEN less 0.30%	USD	DUB	17	09/29/16	American Residential Properties, Inc.	—	794
USD FED OPEN less 0.30%	USD	DUB	25	09/29/16	ANI Pharmaceuticals, Inc.	1,309	—
USD FED OPEN less 0.30%	USD	DUB	2	09/29/16	Apollo Commercial Real Estate Finance, Inc.	30	—
USD FED OPEN less 0.30%	USD	DUB	15	09/29/16	Atlas Air Worldwide Holdings, Inc.	989	—
USD FED OPEN less 0.30%	USD	DUB	9	09/29/16	Blucora, Inc.	1,778	—
USD FED OPEN less 0.30%	USD	DUB	17	09/29/16	Bottomline Technologies de, Inc.	—	1,354
USD FED OPEN less 0.30%	USD	DUB	19	09/29/16	Bunge, Ltd.	3,792	—
USD FED OPEN less 0.30%	USD	DUB	46	09/29/16	Carriage Services, Inc.	—	997
USD FED OPEN less 0.30%	USD	DUB	3	09/29/16	Cenveo, Inc.	1,781	—
USD FED OPEN less 0.30%	USD	DUB	16	09/29/16	Clovis Oncology, Inc.	—	1,922
USD FED OPEN less 0.30%	USD	DUB	3	09/29/16	Cobalt International Energy, Inc.	558	—
USD FED OPEN less 0.30%	USD	DUB	7	09/29/16	Cobalt International Energy, Inc.	2,497	—
USD FED OPEN less 0.30%	USD	DUB	40	09/29/16	Cowen Group, Inc.	17,678	—
USD FED OPEN less 0.30%	USD	DUB	12	09/29/16	Dycom Industries, Inc.	1,700	—
USD FED OPEN less 0.30%	USD	DUB	11	09/29/16	Encore Capital Group, Inc.	2,479	—
USD FED OPEN less 0.30%	USD	DUB	29	09/29/16	Forest City Enterprises, Inc.	1,519	—
USD FED OPEN less 0.30%	USD	DUB	1	09/29/16	Freeport-McMoRan, Inc.	83	—
USD FED OPEN less 0.30%	USD	DUB	1	09/29/16	Gramercy Property Trust REIT	4	—

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

16  Annual Report

Lazard Enhanced Opportunities Portfolio (continued)

Total Return Swap Agreements open at December 31, 2015 (continued):

Receive	Currency	Counterparty	Notional Amount (000)	Expiration Date	Pay	Unrealized Appreciation	Unrealized Depreciation
USD FED OPEN less 0.30%	USD	DUB	28	09/29/16	Green Plains, Inc.	$        —	$    1,853
USD FED OPEN less 0.30%	USD	DUB	3	09/29/16	Griffon Corp.	—	19
USD FED OPEN less 0.30%	USD	DUB	6	09/29/16	Harmonic, Inc.	129	—
USD FED OPEN less 0.30%	USD	DUB	10	09/29/16	Hologic, Inc.	98	—
USD FED OPEN less 0.30%	USD	DUB	12	09/29/16	Hovnanian Enterprises, Inc.	4,261	—
USD FED OPEN less 0.30%	USD	DUB	3	09/29/16	Iconix Brand Group, Inc.	—	34
USD FED OPEN less 0.30%	USD	DUB	24	09/29/16	Integrated Device Technology, Inc.	—	1,303
USD FED OPEN less 0.30%	USD	DUB	20	09/29/16	Intel Corp.	—	1,461
USD FED OPEN less 0.30%	USD	DUB	16	09/29/16	Ironwood Pharmaceuticals, Inc.	52	—
USD FED OPEN less 0.30%	USD	DUB	29	09/29/16	LGI Homes, Inc.	—	5,500
USD FED OPEN less 0.30%	USD	DUB	5	09/29/16	Liberty Media Corp.	244	—
USD FED OPEN less 0.30%	USD	DUB	17	09/29/16	MercadoLibre, Inc.	—	635
USD FED OPEN less 0.30%	USD	DUB	15	09/29/16	MGIC Investment Corp.	3,517	—
USD FED OPEN less 0.30%	USD	DUB	7	09/29/16	Micron Technology, Inc.	811	—
USD FED OPEN less 0.30%	USD	DUB	23	09/29/16	Molina Healthcare, Inc.	—	128
USD FED OPEN less 0.30%	USD	DUB	2	09/29/16	Navistar International Corp.	911	—
USD FED OPEN less 0.30%	USD	DUB	17	09/29/16	NetSuite, Inc.	1,354	—
USD FED OPEN less 0.30%	USD	DUB	14	09/29/16	Nuance Communications, Inc.	880	—
USD FED OPEN less 0.30%	USD	DUB	25	09/29/16	NXP Semiconductors NV	—	1,006
USD FED OPEN less 0.30%	USD	DUB	61	09/29/16	Photronics, Inc.	—	8,585
USD FED OPEN less 0.30%	USD	DUB	11	09/29/16	PRA Group, Inc.	2,873	—
USD FED OPEN less 0.30%	USD	DUB	6	09/29/16	PTC Therapeutics, Inc.	—	296
USD FED OPEN less 0.30%	USD	DUB	17	09/29/16	Quidel Corp.	2,109	—
USD FED OPEN less 0.30%	USD	DUB	3	09/29/16	Redwood Trust, Inc.	66	—
USD FED OPEN less 0.30%	USD	DUB	36	09/29/16	Renewable Energy Group, Inc.	526	—
USD FED OPEN less 0.30%	USD	DUB	15	09/29/16	Restoration Hardware Holdings, Inc.	1,519	—
USD FED OPEN less 0.30%	USD	DUB	7	09/29/16	Starwood Waypoint Residential Trust	458	—
USD FED OPEN less 0.30%	USD	DUB	4	09/29/16	TiVo, Inc.	170	—
USD FED OPEN less 0.30%	USD	DUB	89	09/29/16	Trinity Industries, Inc.	10,256	—
USD FED OPEN less 0.30%	USD	DUB	15	09/29/16	United States Treasury Note,
					2.25% 11/15/25	14	—
USD FED OPEN less 0.30%	USD	DUB	48	09/29/16	Universal Corp./VA	—	4,375
USD FED OPEN less 0.30%	USD	DUB	22	09/29/16	Violin Memory, Inc.	17,283	—
USD FED OPEN less 0.30%	USD	DUB	12	09/29/16	Vitamin Shoppe, Inc.	—	729
USD FED OPEN less 0.30%	USD	DUB	18	09/29/16	Wabash National Corp.	—	944
USD FED OPEN less 0.30%	USD	DUB	19	09/29/16	WebMD Health Corp.	—	1,458
USD FED OPEN less 0.30%	USD	DUB	23	09/29/16	Workday, Inc.	—	490
USD FED OPEN less 0.30%	USD	DUB	22	09/29/16	Wright Medical Group NV	460	—
USD FED OPEN less 0.38%	USD	DUB	35	09/29/16	Vector Group, Ltd.	587	—

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

Annual Report  17

Lazard Enhanced Opportunities Portfolio (concluded)

Total Return Swap Agreements open at December 31, 2015 (concluded):

Receive	Currency	Counterparty	Notional Amount (000)	Expiration Date	Pay	Unrealized Appreciation		Unrealized Depreciation
USD FED OPEN less 0.85%	USD	DUB	20	09/29/16	BroadSoft, Inc.	$	—	$	1,575
USD FED OPEN less 2.50%	USD	DUB	2	09/29/16	PDL BioPharma, Inc.		690		—
USD FED OPEN less 3.00%	USD	DUB	39	09/29/16	AmTrust Financial Services, Inc.		1,219		—
USD FED OPEN less 3.00%	USD	DUB	70	09/29/16	Exelixis, Inc.		—		18,045
USD FED OPEN less 3.18%	USD	DUB	30	09/29/16	SunEdison, Inc.		—		4,324
USD FED OPEN less 4.00%	USD	DUB	5	09/29/16	Sequenom, Inc.		1,323		—
USD FED OPEN less 4.50%	USD	DUB	26	09/29/16	JAKKS Pacific, Inc.		54		—
USD FED OPEN less 8.25%	USD	DUB	40	09/29/16	Theravance, Inc.		18,048		—
USD FED OPEN less 15.15%	USD	DUB	7	09/29/16	Chesapeake Energy Corp.		2,290		—
USD FED OPEN less 18.50%	USD	DUB	25	09/29/16	SolarCity Corp.		—		5,036
USD FED OPEN less 44.00%	USD	DUB	33	09/29/16	Solazyme, Inc.		10,021		—
							127,051		63,911
Gross unrealized appreciation/depreciation on Total Return Swap Agreements						$	171,406	$	291,765

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

18  Annual Report

Description	Shares		Value
Lazard Fundamental Long/Short Portfolio
Common Stocks | 82.6%
Alcohol & Tobacco | 2.7%
Reynolds American, Inc. (f)		131,360	$	6,062,264
Automotive | 2.5%
Delphi Automotive PLC (f)		65,015		5,573,736
Banking | 7.9%
Bank of America Corp. (f)		415,511		6,993,050
Signature Bank (a), (f)		56,169		8,614,640
SVB Financial Group (a), (f)		16,140		1,919,046
				17,526,736
Chemicals | 1.8%
Eastman Chemical Co. (f)		59,943		4,046,752
Commercial Services | 10.3%
Fidelity National Information Services, Inc. (f)		69,870		4,234,122
H&R Block, Inc. (f)		231,611		7,714,962
MDC Partners, Inc., Class A (f)		210,850		4,579,662
United Rentals, Inc. (a), (f)		86,573		6,280,006
				22,808,752
Computer Software & Services | 2.8%
Check Point Software Technologies, Ltd. (a), (f)		76,013		6,185,938
Financial Services | 10.8%
Intercontinental Exchange, Inc. (f)		23,472		6,014,935
MasterCard, Inc., Class A (f)		50,060		4,873,842
OneMain Holdings, Inc. (a), (f)		95,406		3,963,165
The Charles Schwab Corp. (f)		122,841		4,045,154
Visa, Inc., Class A (f)		64,739		5,020,509
				23,917,605
Food & Beverages | 3.0%
Kellogg Co. (f)		91,443		6,608,586
Health Services | 4.8%
Aetna, Inc. (f)		27,800		3,005,736
McKesson Corp. (f)		16,854		3,324,114
Quintiles Transnational Holdings, Inc. (a), (f)		61,562		4,226,847
				10,556,697
Internet Software & Services | 1.1%
Alphabet, Inc., Class C (a)		3,176		2,410,203

Description	Shares		Value
Insurance | 4.9%
Aon PLC (f)		45,856	$	4,228,382
The Hartford Financial Services, Inc. (f)		151,723		6,593,881
				10,822,263
Leisure & Entertainment | 3.9%
Norwegian Cruise Line Holdings, Ltd. (a), (f)		76,069		4,457,643
The Madison Square Garden Co. Class A (a), (f)		26,205		4,239,969
				8,697,612
Manufacturing | 3.1%
Honeywell International, Inc. (f)		66,564		6,894,033
Medical Products | 2.4%
Natus Medical, Inc. (a), (f)		108,877		5,231,540
Pharmaceutical & Biotechnology | 10.5%
Bristol-Myers Squibb Co. (f)		66,620		4,582,790
Pfizer, Inc. (f)		266,260		8,594,873
Teva Pharmaceutical Industries, Ltd. Sponsored ADR (f)		78,755		5,169,478
Zoetis, Inc. (f)		102,074		4,891,386
				23,238,527
Retail | 6.9%
Advance Auto Parts, Inc. (f)		65,098		9,797,900
CVS Health Corp. (f)		56,273		5,501,811
				15,299,711
Semiconductors & Componentsl | 2.4%
Bruker Corp. (a), (f)		109,325		2,653,318
Maxim Integrated Products, Inc. (f)		70,322		2,672,236
				5,325,554
Transportation | 0.8%
Union Pacific Corp.		22,094		1,727,751
Total Common Stocks (Identified cost $179,663,272)				182,934,260
Short-Term Investment | 70.4%
State Street Institutional Treasury
Money Market Fund
(Identified cost $155,798,309)		155,798,309		155,798,309
Total Investments excluding
Securities Sold Short | 153.0%
(Identified cost $335,461,581)				338,732,569

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

Annual Report  19

Description	Shares			Value
Lazard Fundamental Long/Short Portfolio (continued)
Securities Sold Short | (54.0)%
Automotive | (0.8)%
Harley-Davidson, Inc.		(38,760	)	$	(1,759,316	)
Banking | (6.7)%
BofI Holding, Inc. (a)		(58,200	)		(1,225,110	)
BOK Financial Corp.		(18,260	)		(1,091,766	)
Cullen/Frost Bankers, Inc.		(34,387	)		(2,063,220	)
Hancock Holding Co.		(87,500	)		(2,202,375	)
Texas Capital Bancshares, Inc. (a)		(44,008	)		(2,174,875	)
US Bancorp		(82,417	)		(3,516,733	)
Valley National Bancorp		(163,600	)		(1,611,460	)
Zions BanCorp.		(37,700	)		(1,029,210	)
					(14,914,749	)
Commercial Services | (4.0)%
Fastenal Co.		(85,699	)		(3,498,233	)
MSC Industrial Direct Co., Inc., Class A		(47,309	)		(2,662,078	)
WW Grainger, Inc.		(13,763	)		(2,788,246	)
					(8,948,557	)
Construction & Engineering | (0.6)%
KBR, Inc.		(75,469	)		(1,276,935	)
Financial Services | (6.3)%
Capital One Financial Corp.		(35,787	)		(2,583,106	)
Eaton Vance Corp.		(48,034	)		(1,557,743	)
Janus Capital Group, Inc.		(133,599	)		(1,882,410	)
Prudential Financial, Inc.		(26,503	)		(2,157,609	)
T Rowe Price Group, Inc.		(30,642	)		(2,190,596	)
The Goldman Sachs Group, Inc.		(12,033	)		(2,168,708	)
Waddell & Reed Financial, Inc., Class A		(51,544	)		(1,477,251	)
					(14,017,423	)
Food & Beverages | (2.0)%
B&G Foods, Inc.		(48,401	)		(1,695,003	)
The Hain Celestial Group, Inc. (a)		(67,687	)		(2,733,878	)
					(4,428,881	)
Forest & Paper Products | (1.9)%
Bemis Co., Inc.		(49,146	)		(2,196,335	)
Louisiana-Pacific Corp. (a)		(107,595	)		(1,937,786	)
					(4,134,121	)
Health Services | (2.7)%
Air Methods Corp. (a)		(52,035	)		(2,181,828	)
Owens & Minor, Inc.		(74,174	)		(2,668,780	)
Zeltiq Aesthetics, Inc. (a)		(38,820	)		(1,107,535	)
					(5,958,143	)

Description	Shares			Value
Insurance | (2.4)%
Genworth Financial, Inc., Class A (a)		(194,082	)	$	(723,926	)
Lincoln National Corp.		(34,204	)		(1,719,093	)
The Travelers Cos., Inc.		(25,163	)		(2,839,896	)
					(5,282,915	)
Leisure & Entertainment | (2.4)%
Brinker International, Inc.		(49,945	)		(2,394,863	)
Chipotle Mexican Grill, Inc. (a)		(2,150	)		(1,031,677	)
Jack in the Box, Inc.		(23,430	)		(1,797,315	)
					(5,223,855	)
Manufacturing | (4.0)%
Caterpillar, Inc.		(27,761	)		(1,886,638	)
Corning, Inc.		(124,747	)		(2,280,375	)
Dover Corp.		(26,737	)		(1,639,246	)
Generac Holdings, Inc. (a)		(35,595	)		(1,059,663	)
Terex Corp.		(104,736	)		(1,935,521	)
					(8,801,443	)
Medical Products | (1.0)%
Varian Medical Systems, Inc. (a)		(28,547	)		(2,306,597	)
Pharmaceutical & Biotechnology | (7.1)%
AbbVie, Inc.		(39,035	)		(2,312,433	)
Amgen, Inc.		(22,205	)		(3,604,538	)
Exact Sciences Corp. (a)		(142,720	)		(1,317,306	)
Illumina, Inc. (a)		(13,112	)		(2,516,783	)
Intrexon Corp. (a)		(37,660	)		(1,135,449	)
Novo Nordisk A/S Sponsored ADR		(42,680	)		(2,478,854	)
Zimmer Biomet Holdings, Inc.		(24,119	)		(2,474,368	)
					(15,839,731	)
Retail | (7.5)%
Bed Bath & Beyond, Inc. (a)		(29,300	)		(1,413,725	)
Big Lots, Inc.		(72,261	)		(2,784,939	)
CarMax, Inc. (a)		(18,715	)		(1,010,048	)
Monro Muffler Brake, Inc.		(15,740	)		(1,042,303	)
Nordstrom, Inc.		(42,970	)		(2,140,335	)
PVH Corp.		(22,755	)		(1,675,906	)
Skechers U.S.A., Inc. Class A (a)		(44,685	)		(1,349,934	)
The Children’s Place, Inc.		(31,145	)		(1,719,204	)
The Gap, Inc.		(141,357	)		(3,491,518	)
					(16,627,912	)
Semiconductors & Components | (1.5)%
Cavium, Inc. (a)		(28,409	)		(1,866,756	)
Linear Technology Corp.		(33,405	)		(1,418,710	)
					(3,285,466	)

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

20  Annual Report

Description	Shares			Value
Lazard Fundamental Long/Short Portfolio (concluded)
Technology | (2.1)%
Amdocs, Ltd.		(43,271	)	$	(2,361,298	)
Demandware, Inc. (a)		(21,210	)		(1,144,704	)
Paylocity Holding Corp. (a)		(27,325	)		(1,108,029	)
					(4,614,031	)
Technology Hardware | (1.0)%
Cognex Corp.		(31,255	)		(1,055,481	)
Super Micro Computer, Inc. (a)		(47,050	)		(1,153,197	)
					(2,208,678	)
Total Securities Sold Short
(Proceeds $125,941,673)					(119,628,753	)

Description	Value
Total Investments | 99.0%
(Identified cost and short proceeds $209,519,908) (e)	$	219,103,816
Cash and Other Assets in Excess of Liabilities | 1.0%		2,263,351
Net Assets | 100.0%	$	221,367,167

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

Annual Report  21

Description	Shares		Value
Lazard Master Alternatives Portfolio
Common Stocks | 70.6%
Australia | 0.2%
Ainsworth Game Technology, Ltd.		9,160		$	15,241
Spotless Group Holdings, Ltd.		31,229			24,395
					39,636
Belgium | 2.4%
Anheuser-Busch InBev SA/NV (f)		621			76,709
Delhaize Group		912			88,836
KBC Groep NV (f)		2,177			136,119
Mobistar SA (a)		1,908			46,267
Solvay SA		661			70,243
					418,174
Brazil | 1.6%
Ambev SA		10,000			44,777
BB Seguridade Participacoes SA		8,100			49,535
BM&FBovespa SA		7,200			19,698
Braskem SA A Shares		5,800			39,392
CETIP SA - Mercados Organizados		1,800			16,999
Grupo BTG Pactual SA		1,900			7,166
Itausa - Investimentos Itau SA		26,500			45,959
JBS SA		5,000			15,603
Lojas Renner SA		10,000			43,031
					282,160
Canada | 0.2%
Encana Corp.		3,414			17,377
Freehold Royalties, Ltd.		1,700			13,343
					30,720
Chile | 0.4%
Cia Cervecerias Unidas SA Sponsored ADR		1,700			36,822
Enersis SA Sponsored ADR		2,900			35,235
					72,057
China | 2.5%
Boer Power Holdings, Ltd.		11,000			19,783
China Construction Bank Corp., Class H		24,000			16,293
China Lesso Group Holdings, Ltd.		25,000			17,330
China Lodging Group, Ltd. Sponsored ADR (f)		900			28,134
China Overseas Land & Investment, Ltd. (f)		10,000			34,593
China Telecom Corp., Ltd. Class H		42,000			19,561
Chongqing Rural Commercial Bank Co., Ltd., Class H		19,000			11,441
CNOOC, Ltd.		15,000			15,418

Description	Shares		Value
Great Wall Motor Co., Ltd. Class H		14,500		$	16,821
Huadian Power International Corp., Ltd. Class H		22,000			14,292
Huaneng Power International, Inc. Class H		18,000			15,456
Longfor Properties Co., Ltd.		8,500			12,608
Mindray Medical International, Ltd. ADR		500			13,560
New China Life Insurance Co., Ltd. Class H		3,000			12,583
New Oriental Education & Technology Group, Inc. Sponsored ADR		300			9,411
PICC Property & Casualty Co., Ltd., Class H		12,000			23,653
Shenzhou International Group Holdings, Ltd.		2,000			11,441
Sunny Optical Technology Group Co., Ltd. (f)		11,000			25,132
TAL Education Group ADR (a)		300			13,941
The People’s Insurance Co. Group of China, Ltd., Class H		24,000			11,658
Tianneng Power International, Ltd. (a)		18,000			15,059
Tong Ren Tang Technologies Co., Ltd. Class H		8,000			13,009
TravelSky Technology, Ltd. Class H		14,000			22,974
Xinjiang Goldwind Science & Technology Co., Ltd., Class H		9,600			18,313
Zhejiang Expressway Co., Ltd., Class H		14,000			16,780
Zhuzhou CSR Times Electric Co., Ltd., Class H		1,500			8,652
					437,896
Colombia | 0.1%
Almacenes Exito SA		3,858			16,409
Denmark | 1.4%
Carlsberg A/S, Class B (f)		1,388			122,720
Pandora A/S (f)		940			118,613
					241,333
Egypt | 0.2%
Commercial International Bank Egypt SAE GDR		5,890			25,335
Finland | 1.5%
Nokia Oyj		12,746			90,739
Nokian Renkaat Oyj (f)		1,252			44,471
Sampo Oyj, A Shares (f)		1,285			65,132
Stora Enso Oyj, R Shares		7,323			65,856
					266,198

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

22  Annual Report

Description	Shares		Value
Lazard Master Alternatives Portfolio (continued)
France | 5.9%
Alstom SA (a), (f)		1,592		$	48,653
Amundi SA (a)		1,375			64,523
Cap Gemini SA (f)		1,246			115,290
Dassault Aviation SA		40			49,762
Edenred		2,387			44,974
Eiffage SA (f)		1,460			94,155
Elior		3,255			68,167
Peugeot SA (a)		2,590			45,413
Sanofi (f)		1,088			92,835
Societe Television Francaise 1 (f)		10,947			121,739
Veolia Environnement SA		3,733			88,484
Vinci SA (f)		1,761			112,931
Zodiac Aerospace		3,054			72,793
					1,019,719
Germany | 3.1%
Covestro AG (a)		1,820			66,079
Deutsche Telekom AG		5,078			91,880
Fresenius SE & Co. KGaA		653			46,695
GEA Group AG		2,190			88,249
LEG Immobilien AG (f)		608			49,903
Metro AG		2,220			70,856
RTL Group SA		359			30,006
Talanx AG (f)		1,529			47,271
Zalando SE (a)		1,183			46,733
					537,672
Greece | 0.1%
Motor Oil (Hellas) Corinth Refineries SA		967			10,442
Tsakos Energy Navigation, Ltd.		1,300			10,296
					20,738
Hong Kong | 0.9%
China Everbright, Ltd. (f)		10,000			22,803
China High Speed Transmission Equipment Group Co., Ltd. (a)		23,000			18,383
China Mobile, Ltd.		1,000			11,207
China Power International Development, Ltd.		18,000			10,365
China Resources Land, Ltd.		4,000			11,537
China Resources Power Holdings Co., Ltd.		6,000			11,534
China Unicom Hong Kong, Ltd.		24,000			29,134
Shimao Property Holdings, Ltd.		7,000			12,350
Sino Biopharmaceutical, Ltd.		24,000			21,634
Tongda Group Holdings, Ltd.		60,000			10,527
					159,474

Description	Shares		Value
Hungary | 0.4%
MOL Hungarian Oil & Gas Nyrt.		722		$	35,454
Richter Gedeon Nyrt.		1,826			34,567
					70,021
India | 0.3%
Dr Reddy’s Laboratories, Ltd. ADR		500			23,145
Infosys, Ltd. Sponsored ADR		1,300			21,775
					44,920
Ireland | 1.6%
Bank of Ireland (a)		361,879			132,900
CRH PLC (f)		2,693			77,842
Kerry Group PLC, Class A		419			34,925
Permanent TSB Group Holdings PLC (a)		5,929			29,608
					275,275
Israel | 1.5%
Check Point Software Technologies, Ltd. (a), (f)		1,245			101,318
Teva Pharmaceutical Industries, Ltd. Sponsored ADR		2,313			151,825
					253,143
Italy | 1.5%
Atlantia SpA (f)		3,490			92,437
Azimut Holding SpA (f)		1,873			46,239
Banca Popolare di Milano Scarl		17,117			16,860
Banco Popolare SC (a)		1,127			15,454
Davide Campari-Milano SpA (f)		5,162			44,447
Snam SpA		8,975			46,936
					262,373
Japan | 7.3%
Asahi Kasei Corp.		4,000			27,072
Daiwa House Industry Co., Ltd. (f)		3,500			100,347
FANUC Corp.		200			34,478
Gulliver International Co., Ltd. (f)		3,300			32,738
Hitachi, Ltd.		2,000			11,315
Hulic Co., Ltd.		3,400			29,822
JAFCO Co., Ltd. (f)		1,300			50,705
Keyence Corp. (f)		100			54,885
LIXIL Group Corp. (f)		1,100			24,413
Makita Corp. (f)		600			34,482
Mitsubishi Corp.		700			11,629
Mitsubishi UFJ Financial Group, Inc. (f)		8,000			49,511
Mizuho Financial Group, Inc.		29,300			58,490
Nidec Corp. (f)		400			28,953
Nintendo Co., Ltd. (f)		100			13,766
Nippon Steel & Sumitomo Metal Corp.		600			11,881
Nippon Yusen Kabushiki Kaisha		5,000			12,119

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

Annual Report  23

Description	Shares		Value
Lazard Master Alternatives Portfolio (continued)
Nissan Chemical Industries, Ltd. (f)		1,500		$	34,058
Nitto Denko Corp. (f)		600			43,767
Nomura Holdings, Inc. (f)		8,700			48,352
ORIX Corp. (f)		3,600			50,501
Rinnai Corp.		200			17,707
SCREEN Holdings Co., Ltd. (f)		5,000			36,848
Shin-Etsu Chemical Co., Ltd. (f)		500			27,158
Sony Corp. (f)		1,800			44,097
Sumitomo Mitsui Financial Group, Inc. (f)		1,300			49,039
Sumitomo Mitsui Trust Holdings, Inc. (f)		13,000			49,079
Taisei Corp. (f)		10,000			65,882
Takashimaya Co., Ltd. (f)		3,000			26,995
The Dai-ichi Life Insurance Co., Ltd. (f)		2,600			43,141
The Kansai Electric Power Co., Inc. (a), (f)		2,200			26,323
Tokyo Tatemono Co., Ltd. (f)		3,000			32,618
Tokyu Fudosan Holdings Corp. (f)		6,300			39,421
Toshiba Corp. (a)		8,000			16,417
Ube Industries, Ltd.		9,000			18,995
					1,257,004
Malaysia | 2.2%
Astro Malaysia Holdings Berhad		14,600			9,374
Berjaya Auto Berhad		22,120			11,027
Inari Amertron Berhad		28,500			30,395
KLCCP Stapled Group		6,300			10,345
Kossan Rubber Industries Berhad		10,700			23,168
MISC Berhad		10,200			22,222
My EG Services Berhad		50,700			50,992
Petronas Dagangan Berhad		2,000			11,579
Sunway Construction Group Berhad (a)		77,800			25,336
Tenaga Nasional Berhad		19,300			59,756
Top Glove Corp. Berhad		21,800			68,933
VS Industry Berhad		63,100			23,051
Westports Holdings Berhad		34,400			32,987
					379,165
Mexico | 1.7%
Controladora Vuela Cia de Aviacion SAB de CV ADR (a)		2,901			49,781
Gentera SAB de CV		26,400			50,780
Gruma SAB de CV, Class B		1,300			18,290
Grupo Aeromexico SAB de CV (a)		6,500			14,977
Grupo Aeroportuario del Pacifico SAB de CV, B Shares		1,300			11,483

Description	Shares		Value
Grupo Aeroportuario del Sureste SAB de CV, B Shares		1,085		$	15,371
Grupo Lala SAB de CV		8,600			19,900
Industrias Bachoco SAB de CV, Series B		4,600			18,697
Kimberly-Clark de Mexico SAB de CV, Series A		4,600			10,732
Nemak SAB de CV		16,100			21,776
Promotora y Operadora de Infraestructura SAB de CV (a)		5,500			64,757
					296,544
Netherlands | 2.2%
ABN AMRO Group NV		6,501			146,033
Euronext NV		302			15,444
GrandVision NV		2,401			72,048
ING Groep NV		4,607			62,015
Wolters Kluwer NV (f)		2,721			91,169
					386,709
Norway | 0.1%
Europris ASA		2,767			13,393
Philippines | 0.6%
Cebu Air, Inc.		6,030			10,545
Globe Telecom, Inc.		880			34,574
JG Summit Holdings, Inc.		14,610			22,664
Megaworld Corp.		313,000			28,195
					95,978
Poland | 0.4%
Enea SA		4,608			13,237
Energa SA		3,748			12,056
Polski Koncern Naftowy Orlen SA		942			16,185
Polskie Gornictwo Naftowe i Gazownictwo SA		18,211			23,816
					65,294
Russia | 0.4%
Lukoil PJSC Sponsored ADR		438			14,033
Magnitogorsk Iron & Steel Works OJSC Sponsored GDR		2,385			7,927
Novolipetsk Steel OJSC GDR		1,221			10,391
Severstal PAO GDR		1,830			15,276
Tatneft PAO Sponsored ADR		517			13,582
					61,209
Singapore | 0.3%
DBS Group Holdings, Ltd.		4,200			49,171

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

24  Annual Report

Description	Shares		Value
Lazard Master Alternatives Portfolio (continued)
South Africa | 3.2%
AECI, Ltd.		2,464		$	14,060
Astral Foods, Ltd.		2,508			18,786
AVI, Ltd.		8,344			41,726
Barclays Africa Group, Ltd.		2,013			18,632
Capitec Bank Holdings, Ltd.		1,108			38,538
Clicks Group, Ltd.		8,053			46,278
Exxaro Resources, Ltd.		4,787			13,536
FirstRand, Ltd.		18,518			50,519
Gold Fields, Ltd. Sponsored ADR		5,000			13,850
JSE, Ltd.		2,204			18,198
Liberty Holdings, Ltd.		6,137			45,682
Life Healthcare Group Holdings, Ltd.		5,306			11,980
Mr. Price Group, Ltd.		2,913			37,560
Nampak, Ltd.		19,447			31,180
Pioneer Foods Group, Ltd.		982			10,083
Santam, Ltd.		1,088			13,346
Sasol, Ltd.		2,063			55,573
The SPAR Group, Ltd.		939			11,158
Truworths International, Ltd.		4,047			23,804
Vodacom Group, Ltd.		2,457			24,183
Wilson Bayly Holmes-Ovcon, Ltd.		2,430			17,821
					556,493
Spain | 0.4%
Telefonica SA		6,080			67,109
Sweden | 0.8%
Assa Abloy AB, Class B		3,225			67,547
Swedbank AB, A Shares		2,829			62,131
					129,678
Switzerland | 1.6%
Actelion, Ltd. (f)		227			31,235
Adecco SA (f)		693			47,584
Dufry AG (a)		380			45,071
Novartis AG (f)		1,781			152,233
					276,123
Taiwan | 0.5%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		3,900			88,725
Turkey | 0.7%
Eregli Demir ve Celik Fabrikalari TAS		15,087			15,708
Soda Sanayii AS		15,682			22,742

Description	Shares		Value
TAV Havalimanlari Holding AS		5,834		$	36,384
Turk Hava Yollari AO (a)		4,403			11,150
Turk Telekomunikasyon AS		15,943			29,822
					115,806
United Kingdom | 5.2%
Aon PLC (f)		752			69,342
ARM Holdings PLC		4,405			66,518
Ashtead Group PLC		4,016			66,082
Associated British Foods PLC (f)		605			29,780
AstraZeneca PLC (f)		482			32,588
British American Tobacco PLC (f)		2,016			111,967
Compass Group PLC		2,580			44,654
Delphi Automotive PLC (f)		1,066			91,388
International Consolidated Airlines Group SA		5,125			45,740
Premier Oil PLC (a)		12,117			8,642
Prudential PLC (f)		5,697			127,544
Rio Tinto PLC		1,630			47,503
Royal Dutch Shell PLC, A Shares		1,531			35,073
Shire PLC (f)		908			62,229
Spire Healthcare Group PLC		2,800			12,902
Wolseley PLC		815			44,302
					896,254
United States | 17.2%
Advance Auto Parts, Inc. (f)		1,067			160,594
Aetna, Inc. (f)		455			49,195
Alphabet, Inc., Class C (a), (f)		52			39,462
Bank of America Corp. (f)		6,800			114,444
Bristol-Myers Squibb Co. (f)		1,093			75,188
Bruker Corp. (a), (f)		1,786			43,346
CVS Health Corp. (f)		923			90,242
Eastman Chemical Co. (f)		984			66,430
eBay, Inc. (a), (f)		944			25,941
Fidelity National Information Services, Inc. (f)		1,142			69,205
Greatbatch, Inc. (a), (f)		262			13,755
H&R Block, Inc. (f)		3,795			126,411
Halliburton Co.		847			28,832
Honeywell International, Inc. (f)		1,090			112,891
Intercontinental Exchange, Inc. (f)		385			98,660
Kellogg Co. (f)		1,920			138,758
MasterCard, Inc., Class A (f)		1,447			140,880
Maxim Integrated Products, Inc. (f)		1,151			43,738
McKesson Corp. (f)		276			54,436
MDC Partners, Inc., Class A (f)		3,446			74,847
Natus Medical, Inc. (a), (f)		1,780			85,529

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

Annual Report  25

Description	Shares		Value
Lazard Master Alternatives Portfolio (continued)
Norwegian Cruise Line Holdings, Ltd. (a), (f)		1,244		$	72,898
OneMain Holdings, Inc. (a), (f)		1,561			64,844
Pfizer, Inc. (f)		4,366			140,935
Quintiles Transnational Holdings, Inc. (a), (f)		1,010			69,347
Reynolds American, Inc. (f)		2,148			99,130
Signature Bank (a), (f)		919			140,947
SVB Financial Group (a), (f)		263			31,271
The Charles Schwab Corp. (f)		2,017			66,420
The Hartford Financial Services Group, Inc. (f)		2,482			107,868
The J.M. Smucker Co. (f)		280			34,535
The Madison Square Garden Co. Class A (a), (f)		429			69,412
Union Pacific Corp. (f)		597			46,685
United Rentals, Inc. (a), (f)		1,418			102,862
United Therapeutics Corp. (a), (f)		262			41,032
Visa, Inc., Class A (f)		1,059			82,125
Zoetis, Inc. (f)		2,945			141,124
					2,964,219
Total Common Stocks (Identified cost $12,404,239)					12,172,127
Exchange-Traded Funds | 1.0%
France | 0.3%
Lyxor ETF STOXX Europe 600 Basic Resources		1,951			57,051
United States | 0.7%
iShares MSCI Brazil Capped ETF		5,758			119,076
Total Exchange-Traded Funds (Identified cost $190,434)					176,127
Warrant | 0.0%
Malaysia | 0.0%
VS Industry Berhad Expires 06/01/19 (g) (Identified cost $0)		15,775			0

Description	Shares			Value
Short-Term Investment | 24.2%
State Street Institutional Treasury Money Market Fund (Identified cost $4,172,131)		4,172,131			$	4,172,131
Total Investments excluding Securities Sold Short | 95.8% (Identified cost $16,766,804)						16,520,385
Securities Sold Short | (22.6)%
Common Stocks | (21.0)%
Australia | (0.3)%
Commonwealth Bank of Australia		(427	)			(26,381	)
Insurance Australia Group, Ltd.		(6,205	)			(24,929	)
						(51,310	)
Denmark | (0.4)%
Coloplast AS, Class B		(275	)			(22,197	)
Novo Nordisk A/S Sponsored ADR		(699	)			(40,598	)
						(62,795	)
Finland | (0.3)%
Metso Oyj		(625	)			(13,917	)
Wartsila Oyj Abp		(994	)			(45,074	)
						(58,991	)
France | (1.1)%
Airbus Group SE		(1,398	)			(93,867	)
Metropole Television SA		(2,634	)			(45,286	)
Technip SA		(875	)			(43,221	)
						(182,374	)
Germany | (1.1)%
BASF SE		(878	)			(67,123	)
Deutsche Lufthansa AG (a)		(1,716	)			(27,099	)
Deutsche Post AG		(2,100	)			(59,139	)
Hannover Rueck SE		(306	)			(35,073	)
						(188,434	)
Japan | (2.0)%
Eisai Co., Ltd.		(300	)			(19,831	)
Ezaki Glico Co., Ltd.		(300	)			(16,198	)
Hirose Electric Co., Ltd.		(100	)			(12,086	)
Hitachi Construction Machinery Co., Ltd.		(1,300	)			(20,240	)
House Foods Group, Inc.		(600	)			(11,829	)
Ibiden Co., Ltd.		(700	)			(10,025	)
Japan Display, Inc. (a)		(6,000	)			(17,347	)

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

26  Annual Report

Description	Shares			Value
Lazard Master Alternatives Portfolio (continued)
Kaneka Corp.		(3,000	)		$	(31,193	)
Kewpie Corp.		(700	)			(17,245	)
Kikkoman Corp.		(1,000	)			(34,610	)
Kuraray Co., Ltd.		(400	)			(4,837	)
Kyocera Corp.		(100	)			(4,635	)
MEIJI Holdings Co., Ltd.		(200	)			(16,491	)
Ono Pharmaceutical Co., Ltd.		(200	)			(35,547	)
Ryosan Co., Ltd.		(200	)			(5,130	)
Shionogi & Co., Ltd.		(700	)			(31,646	)
Sysmex Corp.		(400	)			(25,582	)
Taiyo Yuden Co., Ltd.		(1,100	)			(15,204	)
Yakult Honsha Co., Ltd.		(200	)			(9,782	)
Yaskawa Electric Corp.		(700	)			(9,527	)
						(348,985	)
Spain | (0.3)%
Distribuidora Internacional de Alimentacion SA		(9,502	)			(55,825	)
Sweden | (0.8)%
Atlas Copco AB, A Shares		(1,831	)			(44,606	)
Elekta AB, B Shares		(5,187	)			(44,155	)
Getinge AB, B Shares		(936	)			(24,359	)
Hexagon AB, B Shares		(628	)			(23,266	)
						(136,386	)
Switzerland | (0.6)%
ABB, Ltd.		(2,499	)			(44,357	)
LafargeHolcim, Ltd.		(1,334	)			(66,844	)
						(111,201	)
United Kingdom | (1.1)%
Barratt Developments PLC		(3,316	)			(30,387	)
Berkeley Group Holdings PLC		(313	)			(17,008	)
Burberry Group PLC		(1,149	)			(20,210	)
Sky PLC		(4,030	)			(65,935	)
Taylor Wimpey PLC		(5,102	)			(15,235	)
William Hill PLC		(5,479	)			(31,973	)
						(180,748	)
United States | (13.0)%
AbbVie, Inc.		(1,158	)			(68,600	)
Air Methods Corp. (a)		(855	)			(35,850	)
Amdocs, Ltd.		(706	)			(38,526	)
Amgen, Inc.		(582	)			(94,476	)
B&G Foods, Inc.		(2,047	)			(71,686	)
Bed Bath & Beyond, Inc. (a)		(478	)			(23,063	)

Description	Shares			Value
Bemis Co., Inc.		(807	)		$	(36,065	)
Big Lots, Inc.		(1,183	)			(45,593	)
BofI Holding, Inc. (a)		(950	)			(19,997	)
BOK Financial Corp.		(610	)			(36,472	)
Brinker International, Inc.		(821	)			(39,367	)
Capital One Financial Corp.		(587	)			(42,370	)
CarMax, Inc. (a)		(305	)			(16,461	)
Caterpillar, Inc.		(453	)			(30,786	)
Cavium, Inc. (a)		(465	)			(30,555	)
Chipotle Mexican Grill, Inc. (a)		(35	)			(16,795	)
Cognex Corp.		(510	)			(17,223	)
Corning, Inc.		(2,046	)			(37,401	)
Cullen/Frost Bankers, Inc.		(910	)			(54,600	)
Demandware, Inc. (a)		(350	)			(18,889	)
Dover Corp.		(677	)			(41,507	)
Eaton Vance Corp.		(787	)			(25,522	)
Exact Sciences Corp. (a)		(2,353	)			(21,718	)
Fastenal Co.		(1,404	)			(57,311	)
Generac Holdings, Inc. (a)		(580	)			(17,267	)
Genworth Financial, Inc., Class A (a)		(3,198	)			(11,929	)
Hancock Holding Co.		(1,433	)			(36,069	)
Harley-Davidson, Inc.		(631	)			(28,641	)
Illumina, Inc. (a)		(380	)			(72,939	)
Intrexon Corp. (a)		(614	)			(18,512	)
Jack in the Box, Inc.		(384	)			(29,457	)
Janus Capital Group, Inc.		(2,198	)			(30,970	)
KBR, Inc.		(1,245	)			(21,065	)
Lincoln National Corp.		(557	)			(27,995	)
Linear Technology Corp.		(545	)			(23,146	)
Louisiana-Pacific Corp. (a)		(1,770	)			(31,878	)
Monro Muffler Brake, Inc.		(260	)			(17,217	)
MSC Industrial Direct Co., Inc., Class A		(772	)			(43,440	)
NETGEAR, Inc. (a)		(515	)			(21,584	)
Nordstrom, Inc.		(705	)			(35,116	)
Owens & Minor, Inc.		(1,213	)			(43,644	)
Paylocity Holding Corp. (a)		(450	)			(18,247	)
Prudential Financial, Inc.		(436	)			(35,495	)
PVH Corp.		(381	)			(28,061	)
Skechers U.S.A., Inc. Class A (a)		(732	)			(22,114	)
Super Micro Computer, Inc. (a)		(775	)			(18,995	)
T Rowe Price Group, Inc.		(504	)			(36,031	)
Terex Corp.		(2,435	)			(44,999	)
Texas Capital Bancshares, Inc. (a)		(1,166	)			(57,624	)
The Children’s Place, Inc.		(512	)			(28,262	)
The Gap, Inc.		(2,313	)			(57,131	)
The Goldman Sachs Group, Inc.		(198	)			(35,686	)

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

Annual Report  27

Description	Shares			Value
Lazard Master Alternatives Portfolio (continued)
The Hain Celestial Group, Inc. (a)		(1,111	)	$	(44,873	)
The Travelers Cos., Inc.		(413	)		(46,611	)
Under Armour, Inc., Class A (a)		(352	)		(28,375	)
US Bancorp		(1,348	)		(57,519	)
Valley National Bancorp		(2,671	)		(26,309	)
Varian Medical Systems, Inc. (a)		(655	)		(52,924	)
Waddell & Reed Financial, Inc., Class A		(848	)		(24,304	)
WW Grainger, Inc.		(225	)		(45,583	)
Zeltiq Aesthetics, Inc. (a)		(640	)		(18,259	)
Zimmer Biomet Holdings, Inc.		(394	)		(40,420	)
Zions BanCorp.		(1,275	)		(34,807	)
					(2,234,331	)
Total Common Stocks (Proceeds $3,686,146)					(3,611,380	)

Description	Shares			Value
Exchange-Traded Funds | (1.6)%
United States | (1.6)%
iShares Nasdaq Biotechnology ETF		(188	)	$	(63,606	)
SPDR S&P 500 ETF Trust		(1,061	)		(216,327	)
Total Exchange-Traded Funds (Proceeds $273,233)					(279,933	)
Total Securities Sold Short (Proceeds $3,959,379)					(3,891,313	)
Total Investments | 73.2%
(Identified cost and short proceeds $12,807,425) (e), (h)				$	12,629,072
Cash and Other Assets in Excess of Liabilities | 26.8%					4,617,264
Net Assets | 100.0%				$	17,246,336

Forward Currency Contracts open at December 31, 2015:
							Cost
			Settlement				on Origination		Unrealized			Unrealized
Currency	Counterparty		Date		Quantity		Date^		Appreciation			Depreciation
Forward Currency Purchase Contracts
AUD		SSB		02/18/16		6,258		4,564		$	—	$	14
AUD		SSB		02/18/16		8,648		6,209			79		—
AUD		SSB		02/18/16		37,723		27,095			334		—
AUD		SSB		02/18/16		55,420		39,778			519		—
AUD		SSB		02/18/16		114,638		83,794			—		438
CAD		SSB		02/18/16		16,921		12,647			—		416
CAD		SSB		02/18/16		31,675		23,346			—		452
DKK		SSB		02/18/16		83,643		12,096			100		—
DKK		SSB		02/18/16		240,680		35,338			—		245
EUR		SSB		02/18/16		1,847		2,014			—		5
EUR		SSB		02/18/16		12,775		13,984			—		86
EUR		SSB		02/18/16		45,533		49,857			—		320
EUR		SSB		02/18/16		55,359		60,697			—		470
EUR		SSB		02/18/16		63,103		66,807			1,845		—
EUR		SSB		02/18/16		140,706		154,738			—		1,659
EUR		SSB		02/18/16		212,942		226,102			5,564		—
GBP		SSB		02/18/16		16,555		25,000			—		592
HKD		SSB		02/18/16		61,900		7,990			—		—
HKD		SSB		02/18/16		277,608		35,831			3		—

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

28   Annual Report

Lazard Master Alternatives Portfolio (continued)

Forward Currency Contracts open at December 31, 2015 (continued):

Currency	Counterparty		Settlement Date	Quantity	Cost on Origination Date^		Unrealized Appreciation			Unrealized Depreciation
Forward Currency Purchase Contracts (concluded)
JPY		SSB	02/18/16	195,241		1,595		$	31	$	—
JPY		SSB	02/18/16	552,875		4,545			59		—
JPY		SSB	02/18/16	1,577,005		12,903			229		—
JPY		SSB	02/18/16	4,166,727		33,917			781		—
JPY		SSB	02/18/16	4,805,052		39,741			272		—
JPY		SSB	02/18/16	6,608,552		55,000			32		—
JPY		SSB	02/18/16	8,153,727		66,381			1,518		—
NOK		SSB	02/18/16	18,282		2,146			—		82
NOK		SSB	02/18/16	64,267		7,314			—		57
NOK		SSB	02/18/16	326,011		37,398			—		584
SEK		SSB	02/18/16	80,073		9,459			39		—
SEK		SSB	02/18/16	206,189		24,434			23		—
SGD		SSB	02/18/16	19,516		13,954			—		210
Total Forward Currency Purchase Contracts								$	11,428	$	5,630
Forward Currency Sale Contracts
AUD		SSB	02/18/16	206,174		145,715		$	—	$	4,198
CAD		SSB	02/18/16	69,356		52,063			1,934		—
CHF		SSB	02/18/16	2,984		2,989			4		—
CHF		SSB	02/18/16	12,796		12,841			42		—
CHF		SSB	02/18/16	59,450		60,281			816		—
CHF		SSB	02/18/16	62,556		63,069			496		—
DKK		SSB	02/18/16	174,483		25,574			133		—
DKK		SSB	02/18/16	208,693		30,648			219		—
EUR		SSB	02/18/16	19,999		21,374			—		384
EUR		SSB	02/18/16	34,660		37,979			271		—
EUR		SSB	02/18/16	44,847		49,219			428		—
EUR		SSB	02/18/16	69,290		75,817			434		—
EUR		SSB	02/18/16	97,962		106,662			86		—
EUR		SSB	02/18/16	129,673		140,960			—		115
EUR		SSB	02/18/16	141,970		150,555			—		3,899
EUR		SSB	02/18/16	945,155		1,018,622			—		9,642
EUR		SSB	02/18/16	4,262,811		4,537,029			—		100,619
GBP		SSB	02/18/16	8,180		12,297			237		—
GBP		SSB	02/18/16	66,520		101,130			3,057		—
HKD		SSB	02/18/16	339,508		43,821			—		2
JPY		SSB	02/18/16	824,970		6,741			—		129
JPY		SSB	02/18/16	1,524,959		12,682			—		17
JPY		SSB	02/18/16	2,299,116		19,110			—		36
JPY		SSB	02/18/16	12,824,812		104,404			—		2,393
JPY		SSB	02/18/16	26,307,305		214,506			—		4,565

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

Annual Report  29

Lazard Master Alternatives Portfolio (continued)

Forward Currency Contracts open at December 31, 2015 (concluded):

Currency	Counterparty		Settlement Date		Quantity		Cost on Origination Date^		Unrealized Appreciation			Unrealized Depreciation
Forward Currency Sale Contracts (concluded)
JPY		SSB		02/18/16		182,017,712		1,483,861		$	—	$	31,866
NOK		SSB		02/18/16		131,006		15,069			275		—
NOK		SSB		02/18/16		396,639		45,545			755		—
PHP		SSB		02/18/16		139,949		2,955			—		15
PHP		SSB		02/18/16		1,312,000		27,691			—		149
SEK		SSB		02/18/16		412,285		47,816			—		1,087
SGD		SSB		02/18/16		89,550		62,860			—		204
ZAR		SSB		02/18/16		521,180		35,694			2,263		—
Total Forward Currency Sale Contracts											11,450		159,320
Gross unrealized appreciation/depreciation on Forward Currency
Purchase and Sale Contracts										$	22,878	$	164,950

^{^} In USD unless otherwise indicated.

Total Return Swap Agreements open at December 31, 2015:

Pay	Currency	Counterparty	Notional Amount (000)		Expiration Date		Receive	Unrealized Appreciation		Unrealized Depreciation
1 Month USD LIBOR plus 1.00%	AED	DUB		29		04/06/16	Abu Dhabi Commercial Bank PJSC	$	—	$	4,013
1 Month USD LIBOR plus 1.00%	IDR	DUB		14		04/05/16	Gudang Garam Tbk PT		1,979		—
1 Month USD LIBOR plus 1.00%	IDR	DUB		30		04/05/16	Pakuwon Jati Tbk PT		5,621		—
1 Month USD LIBOR plus 1.00%	IDR	DUB		34		04/05/16	Telekomunikasi Indonesia Persero Tbk PT		5,404		—
1 Month USD LIBOR plus 1.00%	IDR	DUB		25		04/05/16	United Tractors Tbk PT		599		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		12		04/06/16	Amorepacific Corp.		1,812		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		16		04/06/16	BGF Retail Co., Ltd.		6,994		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		10		04/06/16	BNK Financial Group, Inc.		—		4,032
1 Month USD LIBOR plus 1.00%	KRW	DUB		17		04/06/16	CJ CGV Co., Ltd.		12,462		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		20		04/06/16	Com2uSCorp.		—		3,389
1 Month USD LIBOR plus 1.00%	KRW	DUB		23		04/06/16	Daishin Securities Co., Ltd.		1,151		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		34		04/06/16	Dongbu Insurance Co., Ltd.		10,707		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		25		04/06/16	GS Retail Co., Ltd.		—		2,469
1 Month USD LIBOR plus 1.00%	KRW	DUB		9		04/06/16	Hancom, Inc.		1,756		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		16		04/06/16	Hanjin Transportation Co., Ltd.		—		3,701
1 Month USD LIBOR plus 1.00%	KRW	DUB		15		04/06/16	Hansol Chemical Co., Ltd.		1,614		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		16		04/06/16	Huons Co., Ltd.		—		1,742
1 Month USD LIBOR plus 1.00%	KRW	DUB		26		04/06/16	Hyosung Corp.		—		2,676
1 Month USD LIBOR plus 1.00%	KRW	DUB		17		04/06/16	Hyundai Elevator Co., Ltd.		—		5,035
1 Month USD LIBOR plus 1.00%	KRW	DUB		17		04/06/16	IS Dongseo Co., Ltd.		—		2,480

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

30   Annual Report

Lazard Master Alternatives Portfolio (continued)

Total Return Swap Agreements open at December 31, 2015 (continued):

Pay	Currency	Counterparty	Notional Amount (000)		Expiration Date	Receive	Unrealized Appreciation		Unrealized Depreciation
1 Month USD LIBOR plus 1.00%	KRW	DUB		23	04/06/16	KEPCO Plant Service & Engineering Co., Ltd.	$	—	$	3,317
1 Month USD LIBOR plus 1.00%	KRW	DUB		25	04/06/16	KIWOOM Securities Co., Ltd.		1,811		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		17	04/06/16	Korea Aerospace Industries, Ltd.		4,534		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		73	04/06/16	Korea Electric Power Corp.		2,306		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		16	04/06/16	Korea Petrochemical Ind. Co., Ltd.		6,541		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		11	04/06/16	KT Skylife Co., Ltd.		19		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		24	04/06/16	KT&G Corp.		—		535
1 Month USD LIBOR plus 1.00%	KRW	DUB		35	04/06/16	Kwang Dong Pharmaceutical Co., Ltd.		—		9,270
1 Month USD LIBOR plus 1.00%	KRW	DUB		14	04/06/16	LG Display Co., Ltd.		—		3,712
1 Month USD LIBOR plus 1.00%	KRW	DUB		18	04/06/16	LG Innotek Co., Ltd.		—		3,660
1 Month USD LIBOR plus 1.00%	KRW	DUB		11	04/06/16	LG Life Sciences Ltd.		—		911
1 Month USD LIBOR plus 1.00%	KRW	DUB		13	04/06/16	LG Uplus Corp.		—		1,443
1 Month USD LIBOR plus 1.00%	KRW	DUB		21	04/06/16	Lotte Chemical Corp.		—		60
1 Month USD LIBOR plus 1.00%	KRW	DUB		12	04/06/16	Medy-tox, Inc.		3,290		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		11	04/06/16	Pulmuone Co., Ltd.		936		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		10	04/06/16	Samsung Fire & Marine Insurance Co., Ltd.		1,586		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		12	04/06/16	SK Telecom Co., Ltd.		—		3,211
1 Month USD LIBOR plus 1.00%	KRW	DUB		11	04/06/16	Soulbrain Co., Ltd.		844		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		16	04/06/16	Tongyang Life Insurance Co., Ltd.		—		2,679
1 Month USD LIBOR plus 1.00%	KRW	DUB		16	04/06/16	Wonik IPS Co., Ltd.		446		—
1 Month USD LIBOR plus 1.00%	KRW	DUB		20	04/06/16	Woori Bank		—		1,752
1 Month USD LIBOR plus 1.00%	THB	DUB		14	04/05/16	Airports of Thailand PCL		—		947
1 Month USD LIBOR plus 1.00%	THB	DUB		42	04/05/16	Bumrungrad Hospital PCL		6,690		—
1 Month USD LIBOR plus 1.00%	THB	DUB		33	04/05/16	Delta Electronics Thailand PCL		—		4,016
1 Month USD LIBOR plus 1.00%	THB	DUB		18	04/05/16	KCE Electronics PCL		3,755		—
1 Month USD LIBOR plus 1.00%	THB	DUB		20	04/05/16	Major Cineplex Group PCL		—		941
1 Month USD LIBOR plus 1.00%	THB	DUB		24	04/05/16	Pruksa Real Estate PCL		—		2,868
1 Month USD LIBOR plus 1.00%	THB	DUB		24	04/05/16	Srisawad Power 1979 PCL		—		222
1 Month USD LIBOR plus 1.00%	THB	DUB		54	04/05/16	The Siam Cement PCL		—		2,988
1 Month USD LIBOR plus 1.00%	THB	DUB		29	04/05/16	Tipco Asphalt PCL		18,464		—
1 Month USD LIBOR plus 1.00%	TWD	DUB		15	04/06/16	Advanced Ceramic X Corp.		—		1,713
1 Month USD LIBOR plus 1.00%	TWD	DUB		39	04/06/16	Catcher Technology Co., Ltd.		—		5,205
1 Month USD LIBOR plus 1.00%	TWD	DUB		22	04/06/16	Chlitina Holding, Ltd.		—		1,031
1 Month USD LIBOR plus 1.00%	TWD	DUB		22	04/06/16	Cleanaway Co., Ltd.		—		710
1 Month USD LIBOR plus 1.00%	TWD	DUB		18	04/06/16	Compeq Manufacturing Co., Ltd.		420		—
1 Month USD LIBOR plus 1.00%	TWD	DUB		13	04/06/16	Eclat Textile Co., Ltd.		505		—
1 Month USD LIBOR plus 1.00%	TWD	DUB		12	04/06/16	Elite Advanced Laser Corp.		—		3,072
1 Month USD LIBOR plus 1.00%	TWD	DUB		68	04/06/16	Elite Material Co., Ltd.		—		10,287
1 Month USD LIBOR plus 1.00%	TWD	DUB		17	04/06/16	Eva Airways Corp.		150		—
1 Month USD LIBOR plus 1.00%	TWD	DUB		55	04/06/16	Feng Tay Enterprise Co., Ltd.		—		6,653

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

Annual Report 31

Lazard Master Alternatives Portfolio (continued)

Total Return Swap Agreements open at December 31, 2015 (continued):

Pay	Currency	Counterparty		Notional Amount (000)		Expiration Date	Receive	Unrealized Appreciation		Unrealized Depreciation
1 Month USD LIBOR plus 1.00%	TWD		DUB		30	04/06/16	FLEXium Interconnect, Inc.	$	—	$	12,434
1 Month USD LIBOR plus 1.00%	TWD		DUB		20	04/06/16	Gourmet Master Co., Ltd.		1,530		—
1 Month USD LIBOR plus 1.00%	TWD		DUB		38	04/06/16	Grape King Bio, Ltd.		687		—
1 Month USD LIBOR plus 1.00%	TWD		DUB		34	04/06/16	Highwealth Construction Corp.		—		12,707
1 Month USD LIBOR plus 1.00%	TWD		DUB		13	04/06/16	Hotai Motor Co., Ltd.		—		1,578
1 Month USD LIBOR plus 1.00%	TWD		DUB		11	04/06/16	Huaku Development Co., Ltd.		—		562
1 Month USD LIBOR plus 1.00%	TWD		DUB		51	04/06/16	Makalot Industrial Co., Ltd.		555		—
1 Month USD LIBOR plus 1.00%	TWD		DUB		13	04/06/16	Micro-Star International Co., Ltd.		948		—
1 Month USD LIBOR plus 1.00%	TWD		DUB		13	04/06/16	PChome Online, Inc.		—		2,254
1 Month USD LIBOR plus 1.00%	TWD		DUB		16	04/06/16	Pegatron Corp.		—		3,011
1 Month USD LIBOR plus 1.00%	TWD		DUB		11	04/06/16	Pharmally International Holding Co., Ltd.		307		—
1 Month USD LIBOR plus 1.00%	TWD		DUB		10	04/06/16	Poya International Co., Ltd.		—		1,105
1 Month USD LIBOR plus 1.00%	TWD		DUB		23	04/06/16	Ruentex Development Co., Ltd.		211		—
1 Month USD LIBOR plus 1.00%	TWD		DUB		36	04/06/16	Shin Zu Shing Co., Ltd.		5,934		—
1 Month USD LIBOR plus 1.00%	TWD		DUB		33	04/06/16	Siliconware Precision Industries Co., Ltd.		—		1,362
1 Month USD LIBOR plus 1.00%	TWD		DUB		19	04/06/16	St Shine Optical Co., Ltd.		724		—
1 Month USD LIBOR plus 1.00%	TWD		DUB		14	04/06/16	Taiwan Paiho, Ltd.		—		766
1 Month USD LIBOR plus 1.00%	TWD		DUB		15	04/06/16	Transcend Information, Inc.		—		4,176
1 Month USD LIBOR plus 1.00%	TWD		DUB		10	04/06/16	Uni-President Enterprises Corp.		—		390
1 Month USD LIBOR plus 1.00%	TWD		DUB		28	04/06/16	United Microelectronics Corp.		—		7,031
1 Month USD LIBOR plus 1.00%	TWD		DUB		43	04/06/16	Voltronic Power Technology Corp.		19,411		—
1 Month USD LIBOR plus 1.00%	TWD		DUB		12	04/06/16	Win Semiconductors Corp.		360		—
1 Month USD LIBOR plus 1.00%	TWD		DUB		14	04/06/16	Wistron Neweb Corp.		2,484		—
1 Month USD LIBOR plus 1.00%	TWD		DUB		38	04/06/16	Zhen Ding Technology Holding, Ltd.		—		10,615
									135,547		158,731

Receive	Currency	Counterparty		Notional Amount (000)		Expiration Date	Pay	Unrealized Appreciation		Unrealized Depreciation
1 Month USD LIBOR less 0.50%	USD		DUB		81	04/05/16	Malayan Banking Berhad	$	18,172	$	—
1 Month USD LIBOR less 0.50%	USD		DUB		54	04/05/16	Telekom Malaysia Berhad		—		438
1 Month USD LIBOR less 0.50%	USD		DUB		16	04/06/16	China Everbright International, Ltd.		3,090		—
1 Month USD LIBOR less 0.50%	USD		DUB		16	04/06/16	China Merchants Holdings International Co., Ltd.		3,361		—
1 Month USD LIBOR less 0.50%	USD		DUB		32	04/06/16	CITIC, Ltd.		206		—
1 Month USD LIBOR less 0.50%	USD		DUB		20	04/06/16	Dah Chong Hong Holdings, Ltd.		468		—
1 Month USD LIBOR less 0.50%	USD		DUB		9	04/06/16	Dongjiang Environmental Co., Ltd.		1,899		—
1 Month USD LIBOR less 0.50%	USD		DUB		57	04/06/16	Hua Nan Financial Holdings Co., Ltd.		4,578		—
1 Month USD LIBOR less 0.50%	USD		DUB		27	04/06/16	Kingboard Chemical Holdings, Ltd.		35		—

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

32 Annual Report

Lazard Master Alternatives Portfolio (continued)

Total Return Swap Agreements open at December 31, 2015 (continued):

Receive

Currency

Counterparty

Notional Amount (000)

Expiration Date

Pay

Unrealized Appreciation

Unrealized Depreciation

1 Month USD LIBOR less 0.50%

USD

DUB

11

04/06/16

Lenovo Group, Ltd.

$

—

$

1,576

1 Month USD LIBOR less 0.50%

USD

DUB

28

04/06/16

Shanghai Fosun Pharmaceutical Group Co., Ltd.

6,598

—

1 Month USD LIBOR less 0.50%

USD

DUB

56

04/06/16

Shanghai Industrial Holdings, Ltd.

3,828

—

1 Month USD LIBOR less 0.50%

USD

DUB

43

04/06/16

Tingyi Cayman Islands Holding Corp.

14,056

—

1 Month USD LIBOR less 0.50%

USD

DUB

27

04/06/16

Yuexiu Property Co., Ltd.

—

3,690

1 Month USD LIBOR less 0.55%

USD

DUB

10

04/06/16

China Petrochemical

Development Corp.

2,334

—

1 Month USD LIBOR less 0.55%

USD

DUB

29

04/06/16

Clevo Co

5,160

—

1 Month USD LIBOR less 0.55%

USD

DUB

16

04/06/16

Elan Microelectronics Corp.

—

2,592

1 Month USD LIBOR less 0.55%

USD

DUB

17

04/06/16

Hyundai Heavy Industries Co., Ltd.

4,643

—

1 Month USD LIBOR less 0.55%

USD

DUB

40

04/06/16

POSCO

13,827

—

1 Month USD LIBOR less 0.60%

USD

DUB

16

04/05/16

Cencosud SA

1,622

—

1 Month USD LIBOR less 0.60%

USD

DUB

15

04/05/16

Colbun SA

1,830

—

1 Month USD LIBOR less 0.60%

USD

DUB

19

04/05/16

SACI Falabella

3,388

—

1 Month USD LIBOR less 0.60%

USD

DUB

14

04/05/16

SONDA SA

—

1,299

1 Month USD LIBOR less 0.60%

USD

DUB

21

04/06/16

Cemex SAB de CV

3,574

—

1 Month USD LIBOR less 0.60%

USD

DUB

27

04/06/16

Controladora Comercial Mexicana

SAB de CV

4,236

—

1 Month USD LIBOR less 0.60%

USD

DUB

29

04/06/16

Grupo Aval Acciones y Valores SA

4,889

—

1 Month USD LIBOR less 0.60%

USD

DUB

15

04/06/16

Grupo Bimbo SAB de CV

—

1,168

1 Month USD LIBOR less 0.60%

USD

DUB

35

04/06/16

Grupo Financiero Banorte

SAB de CV

2,067

—

1 Month USD LIBOR less 0.60%

USD

DUB

14

04/06/16

Grupo Financiero Interacciones

SA de CV

352

—

1 Month USD LIBOR less 0.60%

USD

DUB

66

04/06/16

Grupo Mexico SAB de CV

8,239

—

1 Month USD LIBOR less 0.60%

USD

DUB

58

04/06/16

Infraestructura Energetica Nova

SAB de CV

11,682

—

1 Month USD LIBOR less 0.60%

USD

DUB

18

04/06/16

Linx SA

976

—

1 Month USD LIBOR less 0.60%

USD

DUB

36

04/06/16

PLA Administradora Industrial

S de RL de CV

5,788

—

1 Month USD LIBOR less 0.60%

USD

DUB

28

04/06/16

Telefonica Brasil SA

2,248

—

1 Month USD LIBOR less 0.75%

USD

DUB

18

04/06/16

Lite-On Technology Corp.

4,386

—

1 Month USD LIBOR less 0.75%

USD

DUB

16

04/06/16

MediaTek, Inc.

512

—

1 Month USD LIBOR less 0.80%

USD

DUB

27

04/07/16

Alexander Forbes Group

Holdings, Ltd.

12,916

—

1 Month USD LIBOR less 0.80%

USD

DUB

54

04/07/16

Aspen Pharmacare Holdings, Ltd.

18,211

—

1 Month USD LIBOR less 0.80%

USD

DUB

33

04/07/16

Attacq, Ltd.

9,180

—

1 Month USD LIBOR less 0.80%

USD

DUB

15

04/07/16

Brait SE

—

624

1 Month USD LIBOR less 0.80%

USD

DUB

53

04/07/16

DataTec, Ltd.

9,654

—

1 Month USD LIBOR less 0.80%

USD

DUB

30

04/07/16

Grindrod, Ltd.

11,552

—

1 Month USD LIBOR less 0.80%

USD

DUB

40

04/07/16

Hyprop Investments, Ltd.

9,064

—

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

Annual Report   33

Lazard Master Alternatives Portfolio (continued)

Total Return Swap Agreements open at December 31, 2015 (continued):

			Notional
			Amount	Expiration		Unrealized		Unrealized
Receive	Currency	Counterparty	(000)	Date	Pay	Appreciation		Depreciation
1 Month USD LIBOR less 0.80%	USD	DUB	18	04/07/16	Massmart Holdings, Ltd.	$	6,102	$	—
1 Month USD LIBOR less 0.80%	USD	DUB	101	04/07/16	MMI Holdings, Ltd.		32,792		—
1 Month USD LIBOR less 0.80%	USD	DUB	82	04/07/16	Rand Merchant Insurance Holdings, Ltd.		20,986		—
1 Month USD LIBOR less 0.80%	USD	DUB	20	04/07/16	Reunert, Ltd.		2,224		—
1 Month USD LIBOR less 0.80%	USD	DUB	36	04/07/16	Steinhoff International Holdings, Ltd.		7,015		—
1 Month USD LIBOR less 0.80%	USD	DUB	16	04/07/16	Trencor, Ltd.		7,110		—
1 Month USD LIBOR less 0.80%	USD	DUB	29	04/07/16	Zeder Investments, Ltd.		7,504		—
1 Month USD LIBOR less 0.83%	USD	DUB	20	04/06/16	China Oil & Gas Group, Ltd.		7,395		—
1 Month USD LIBOR less 0.85%	USD	DUB	23	04/05/16	Komercni Banka AS		1,883		—
1 Month USD LIBOR less 0.88%	USD	DUB	60	04/06/16	Yuanta Financial Holding Co., Ltd.		2,665		—
1 Month USD LIBOR less 1.00%	USD	DUB	18	04/05/16	Hong Leong Financial Group Berhad		5,299		—
1 Month USD LIBOR less 1.00%	USD	DUB	27	04/06/16	Cathay Financial Holding Co., Ltd.		2,863		—
1 Month USD LIBOR less 1.00%	USD	DUB	55	04/06/16	Chang Hwa Commercial Bank, Ltd.		1,751		—
1 Month USD LIBOR less 1.00%	USD	DUB	9	04/06/16	China Shipping Development Co., Ltd.		2,477		—
1 Month USD LIBOR less 1.00%	USD	DUB	18	04/06/16	Dalian Port PDA Co., Ltd.		—		4,303
1 Month USD LIBOR less 1.00%	USD	DUB	24	04/06/16	Digital China Holdings, Ltd.		—		5,571
1 Month USD LIBOR less 1.00%	USD	DUB	39	04/06/16	Lotte Confectionery Co., Ltd.		—		8,025
1 Month USD LIBOR less 1.00%	USD	DUB	11	04/06/16	Mega Financial Holding Co., Ltd.		921		—
1 Month USD LIBOR less 1.00%	USD	DUB	74	04/06/16	Quanta Computer, Inc.		22,092		—
1 Month USD LIBOR less 1.00%	USD	DUB	39	04/06/16	Shin Kong Financial Holding Co., Ltd.		—		3,057
1 Month USD LIBOR less 1.25%	USD	DUB	17	04/06/16	SSY Group, Ltd.		1,665		—
1 Month USD LIBOR less 1.25%	USD	DUB	16	04/06/16	Taishin Financial Holding Co., Ltd.		1,288		—
1 Month USD LIBOR less 1.38%	USD	DUB	48	04/06/16	China Agri-Industries Holdings, Ltd.		1,790		—
1 Month USD LIBOR less 1.50%	USD	DUB	19	04/06/16	CITIC Resources Holdings, Ltd.		6,710		—
1 Month USD LIBOR less 1.50%	USD	DUB	17	04/06/16	Dalian Wanda Commercial Properties Co., Ltd.		—		616
1 Month USD LIBOR less 1.50%	USD	DUB	16	04/06/16	Guangzhou Baiyunshan
					Pharmaceutical Holdings Co., Ltd.		—		1,330
1 Month USD LIBOR less 1.50%	USD	DUB	32	04/06/16	Hite Jinro Co., Ltd.		—		2
1 Month USD LIBOR less 1.50%	USD	DUB	15	04/06/16	Shougang Fushan Resources Group, Ltd.		3,792		—
1 Month USD LIBOR less 1.75%	USD	DUB	26	04/06/16	SinoPac Financial Holdings Co., Ltd.		3,210		—
1 Month USD LIBOR less 1.75%	USD	DUB	24	04/06/16	Epistar Corp.		5,649		—
1 Month USD LIBOR less 1.75%	USD	DUB	35	04/06/16	Far Eastern Department Stores, Ltd.		3,743		—
1 Month USD LIBOR less 1.75%	USD	DUB	17	04/06/16	Unimicron Technology Corp.		3,478		—
1 Month USD LIBOR less 2.00%	USD	DUB	19	04/05/16	Indorama Ventures PCL		3,911		—
1 Month USD LIBOR less 2.00%	USD	DUB	35	04/06/16	China Steel Corp.		—		2,425

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

34  Annual Report

Lazard Master Alternatives Portfolio (continued)

Total Return Swap Agreements open at December 31, 2015 (continued):

			Notional
			Amount	Expiration		Unrealized		Unrealized
Receive	Currency	Counterparty	(000)	Date	Pay	Appreciation		Depreciation
1 Month USD LIBOR less 2.00%	USD	DUB	11	04/06/16	Green Cross Corp.	$	834	$	—
1 Month USD LIBOR less 2.00%	USD	DUB	15	04/06/16	Shanghai Jin Jiang International Hotels Group Co., Ltd.		—		423
1 Month USD LIBOR less 2.00%	USD	DUB	15	04/06/16	Taiwan Fertilizer Co., Ltd.		—		642
1 Month USD LIBOR less 2.00%	USD	DUB	19	04/07/16	Adcock Ingram Holdings, Ltd.		3,847		—
1 Month USD LIBOR less 2.25%	USD	DUB	81	04/05/16	BTS Group Holdings PCL		8,806		—
1 Month USD LIBOR less 2.25%	USD	DUB	30	04/06/16	Kolon Industries, Inc.		2,737		—
1 Month USD LIBOR less 2.25%	USD	DUB	11	04/06/16	LS Corp.		—		882
1 Month USD LIBOR less 2.25%	USD	DUB	44	04/06/16	SK Chemicals Co., Ltd.		2,637		—
1 Month USD LIBOR less 2.25%	USD	DUB	50	04/06/16	Synnex Technology International Corp.		13,651		—
1 Month USD LIBOR less 2.25%	USD	DUB	48	04/06/16	Yulon Motor Co., Ltd.		13,506		—
1 Month USD LIBOR less 2.50%	USD	DUB	29	04/05/16	Anadolu Efes Biracilik Ve Malt Sanayii AS		6,174		—
1 Month USD LIBOR less 2.50%	USD	DUB	19	04/05/16	Bank Handlowy w Warszawie SA		5,850		—
1 Month USD LIBOR less 2.50%	USD	DUB	20	04/05/16	Bank Pekao SA		2,797		—
1 Month USD LIBOR less 2.50%	USD	DUB	15	04/05/16	Charoen Pokphand Indonesia Tbk PT		1,614		—
1 Month USD LIBOR less 2.50%	USD	DUB	17	04/05/16	Powszechny Zaklad Ubezpieczen SA		1,453		—
1 Month USD LIBOR less 2.50%	USD	DUB	28	04/05/16	TTW PCL		454		—
1 Month USD LIBOR less 2.50%	USD	DUB	19	04/06/16	Cheng Uei Precision Industry Co., Ltd.		2,845		—
1 Month USD LIBOR less 2.50%	USD	DUB	44	04/06/16	CPFL Energia SA		17,183		—
1 Month USD LIBOR less 2.50%	USD	DUB	12	04/06/16	Mitac Holdings Corp.		308		—
1 Month USD LIBOR less 2.50%	USD	DUB	36	04/06/16	Multiplan Empreendimentos Imobiliarios SA		11,976		—
1 Month USD LIBOR less 2.50%	USD	DUB	27	04/06/16	Samsung Heavy Industries Co., Ltd.		—		1,543
1 Month USD LIBOR less 2.50%	USD	DUB	27	04/19/16	Global Telecom Holding SAE		11,841		—
1 Month USD LIBOR less 2.66%	USD	DUB	18	04/06/16	Zoomlion Heavy Industry Science and Technology Co., Ltd.		8,369		—
1 Month USD LIBOR less 2.75%	USD	DUB	76	04/05/16	Axiata Group Berhad		16,397		—
1 Month USD LIBOR less 2.75%	USD	DUB	13	04/05/16	Ratchaburi Electricity Generating Holding PCL		616		—
1 Month USD LIBOR less 2.75%	USD	DUB	14	04/06/16	Cosan SA Industria e Comercio		3,237		—
1 Month USD LIBOR less 3.00%	USD	DUB	15	04/05/16	Arcelik AS		700		—
1 Month USD LIBOR less 3.00%	USD	DUB	15	04/05/16	IJM Corp. Berhad		1,843		—
1 Month USD LIBOR less 3.00%	USD	DUB	11	04/06/16	Li Ning Co., Ltd.		418		—
1 Month USD LIBOR less 3.00%	USD	DUB	11	04/06/16	Oriental Union Chemical Corp.		2,375		—
1 Month USD LIBOR less 3.00%	USD	DUB	19	04/06/16	Realtek Semiconductor Corp.		—		2,833
1 Month USD LIBOR less 3.00%	USD	DUB	23	04/06/16	U-Ming Marine Transport Corp.		9,071		—
1 Month USD LIBOR less 3.19%	USD	DUB	22	04/06/16	China Yurun Food Group, Ltd.		8,358		—
1 Month USD LIBOR less 3.25%	USD	DUB	10	04/06/16	Cia de Transmissao de Energia Eletrica Paulista		—		377

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

Annual Report  35

Lazard Master Alternatives Portfolio (continued)

Total Return Swap Agreements open at December 31, 2015 (continued):

			Notional
			Amount	Expiration		Unrealized		Unrealized
Receive	Currency	Counterparty	(000)	Date	Pay	Appreciation		Depreciation
1 Month USD LIBOR less 3.25%	USD	DUB	29	04/06/16	Fila Korea, Ltd.	$	4,132	$	—
1 Month USD LIBOR less 3.25%	USD	DUB	24	04/06/16	Sino-American Silicon Products, Inc.		1,185		—
1 Month USD LIBOR less 3.25%	USD	DUB	18	04/06/16	Yang Ming Marine Transport Corp.		—		1,019
1 Month USD LIBOR less 3.50%	USD	DUB	58	04/05/16	Banpu PCL		—		6,766
1 Month USD LIBOR less 3.50%	USD	DUB	33	04/05/16	Jasa Marga Persero Tbk PT		377		—
1 Month USD LIBOR less 3.50%	USD	DUB	16	04/05/16	Perusahaan Gas Negara Persero Tbk PT		4,436		—
1 Month USD LIBOR less 3.50%	USD	DUB	11	04/06/16	HTC Corp.		—		3,246
1 Month USD LIBOR less 3.50%	USD	DUB	20	04/06/16	WT Microelectronics Co., Ltd.		4,094		—
1 Month USD LIBOR less 3.75%	USD	DUB	34	04/06/16	China Steel Chemical Corp.		1,489		—
1 Month USD LIBOR less 3.75%	USD	DUB	18	04/06/16	Dongwon Industries Co., Ltd.		1,899		—
1 Month USD LIBOR less 4.00%	USD	DUB	22	04/05/16	Tower Bersama Infrastructure Tbk PT		5,013		—
1 Month USD LIBOR less 4.00%	USD	DUB	14	04/06/16	Chipbond Technology Corp.		2,728		—
1 Month USD LIBOR less 4.00%	USD	DUB	21	04/06/16	Chong Kun Dang Pharmaceutical Corp.		—		5,010
1 Month USD LIBOR less 4.00%	USD	DUB	16	04/06/16	Paradise Co., Ltd.		4,876		—
1 Month USD LIBOR less 4.00%	USD	DUB	15	07/07/16	Ooredoo QSC		—		14
1 Month USD LIBOR less 4.00%	USD	DUB	11	07/07/16	Qatar Electricity & Water Co. QSC		—		773
1 Month USD LIBOR less 4.25%	USD	DUB	18	04/05/16	International Container Terminal Services, Inc.		274		—
1 Month USD LIBOR less 4.25%	USD	DUB	14	04/05/16	UMW Holdings Berhad		154		—
1 Month USD LIBOR less 4.25%	USD	DUB	18	04/06/16	Yanzhou Coal Mining Co., Ltd.		7,132		—
1 Month USD LIBOR less 4.50%	USD	DUB	18	04/05/16	IOI Corp. Berhad		2,273		—
1 Month USD LIBOR less 4.75%	USD	DUB	21	04/06/16	Aliansce Shopping Centers SA		10,846		—
1 Month USD LIBOR less 4.75%	USD	DUB	14	04/06/16	Kingsoft Corp., Ltd.		1,660		—
1 Month USD LIBOR less 5.00%	USD	DUB	15	04/05/16	Coca-Cola Icecek AS		1,524		—
1 Month USD LIBOR less 5.00%	USD	DUB	27	04/05/16	DiGi.Com Berhad		—		719
1 Month USD LIBOR less 5.00%	USD	DUB	21	04/06/16	Arabtech Holding Co.		3,734		—
1 Month USD LIBOR less 5.00%	USD	DUB	25	04/06/16	China Coal Energy Co., Ltd.		9,877		—
1 Month USD LIBOR less 5.00%	USD	DUB	12	04/06/16	Doosan Infracore Co., Ltd.		2,036		—
1 Month USD LIBOR less 5.00%	USD	DUB	16	04/06/16	Dubai Financial Market PJSC		3,005		—
1 Month USD LIBOR less 5.00%	USD	DUB	18	04/06/16	Hanjin Kal Corp.		6,246		—
1 Month USD LIBOR less 5.00%	USD	DUB	54	04/06/16	Hyundai Rotem Co., Ltd.		11,070		—
1 Month USD LIBOR less 5.00%	USD	DUB	25	04/06/16	Iguatemi Empresa de Shopping Centers SA		7,781		—
1 Month USD LIBOR less 5.00%	USD	DUB	15	04/06/16	Kinsus Interconnect Technology Corp.		—		1,197
1 Month USD LIBOR less 5.00%	USD	DUB	18	04/06/16	Kumho Tire Co., Inc.		—		336
1 Month USD LIBOR less 5.00%	USD	DUB	21	04/06/16	SFA Engineering Corp.		364		—
1 Month USD LIBOR less 5.17%	USD	DUB	25	04/05/16	AMMB Holdings Berhad		—		237
1 Month USD LIBOR less 5.50%	USD	DUB	13	04/06/16	Lung Yen Life Service Corp.		4,901		—

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

36  Annual Report

Lazard Master Alternatives Portfolio (concluded)

Total Return Swap Agreements open at December 31, 2015 (concluded):

			Notional
			Amount	Expiration		Unrealized			Unrealized
Receive	Currency	Counterparty	(000)	Date	Pay	Appreciation			Depreciation
1 Month USD LIBOR less 5.50%	USD	DUB	11	04/06/16	Maanshan Iron & Steel Co., Ltd.		$	—		$	595
1 Month USD LIBOR less 5.75%	USD	DUB	36	04/06/16	Korean Air Lines Co., Ltd.			2,342			—
1 Month USD LIBOR less 6.00%	USD	DUB	64	04/06/16	Cia Brasileira de Distribuicao			20,130			—
1 Month USD LIBOR less 6.00%	USD	DUB	13	04/06/16	NHN Entertainment Corp.			2,168			—
1 Month USD LIBOR less 6.00%	USD	DUB	17	04/06/16	Posco ICT Co., Ltd.			—			1,422
1 Month USD LIBOR less 6.75%	USD	DUB	10	04/05/16	Thoresen Thai Agencies PCL			2,652			—
1 Month USD LIBOR less 7.00%	USD	DUB	13	04/05/16	LPP SA			3,188			—
1 Month USD LIBOR less 7.50%	USD	DUB	55	04/06/16	Acer, Inc.			22,791			—
1 Month USD LIBOR less 7.75%	USD	DUB	15	04/06/16	Hyundai Merchant Marine Co., Ltd.			4,250			—
1 Month USD LIBOR less 15.00%	USD	DUB	24	04/06/16	Lojas Americanas SA			1,538			—
USD FED OPEN less 0.60%	USD	DUB	14	04/06/16	Grupo Televisa SAB			432			—
USD FED OPEN less 0.60%	USD	DUB	14	04/06/16	JD.com, Inc.			650			—
USD FED OPEN less 0.60%	USD	DUB	10	04/06/16	Southern Copper Corp.			—			352
								698,080			65,102
Gross unrealized appreciation/depreciation on Total Return Swap Agreements							$	833,627		$	223,833

Futures Contracts open at December 31, 2015:
	Number of	Expiration		Unrealized			Unrealized
Short	Contracts	Date	Value	Appreciation			Depreciation
CAC 40 Index	40	01/15/16	$201,636		$	4,186		$	—
Euro Stoxx 50 Index	150	03/18/16	535,007			4,369			—
Swiss Market Index	30	03/18/16	261,961			—			2,583
Gross unrealized appreciation/depreciation on Futures Contracts					$	8,555		$	2,583

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

Annual Report   37

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2015

(a)	Non-income producing security.
(b)	Principal amount denominated in USD.
(c)	Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2015, the percentage of net assets for the following Portfolio was as follows:

	Percentage of
Portfolio	Net Assets
Enhanced Opportunities		10.5	%

(d)	Issue in default.
(e)	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		Aggregate Gross		Aggregate Gross		Net Unrealized
	Cost and Short		Unrealized		Unrealized		Appreciation
Portfolio	Proceeds		Appreciation		Depreciation		(Depreciation)
Enhanced Opportunities	$	4,577,839	$	15,642	$	150,631	$	(134,989	)
Fundamental Long/Short		210,259,110		14,296,634		5,451,928		8,844,706
Master Alternatives		16,900,162		435,460		815,237		(379,777	)

(f)	Some or all of this security position has been pledged to cover collateral requirements on securities sold short.
(g)	Security valued using Level 2 inputs, based on reference to a similar security which was trading on an active market, under GAAP hierarchy – see Note 9.
(h)	The Portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts and swap agreements.

Security Abbreviations:
ADR	—	American Depositary Receipt	LIBOR	—	London Interbank Offered Rate
ETF	—	Exchange-Traded Fund	OJSC	—	Open Joint Stock Company
FED OPEN	—	Federal Funds Effective Rate	PJSC	—	Public Joint Stock Company
GDR	—	Global Depositary Receipt	REIT	—	Real Estate Investment Trust

Currency Abbreviations:
AED	—	United Arab Emirates Dirham	KRW	—	South Korean Won
AUD	—	Australian Dollar	NOK	—	Norwegian Krone
CAD	—	Canadian Dollar	PHP	—	Philippine Peso
CHF	—	Swiss Franc	SEK	—	Swedish Krona
DKK	—	Danish Krone	SGD	—	Singapore Dollar
EUR	—	Euro	THB	—	Thai Baht
GBP	—	British Pound Sterling	TWD	—	Taiwan Dollar
HKD	—	Hong Kong Dollar	USD	—	United States Dollar
IDR	—	Indonesian Rupiah	ZAR	—	South African Rand
JPY	—	Japanese Yen
Counterparty Abbreviations:
DUB	—	Deutsche Bank AG	SSB	—	State Street Bank and Trust Co.

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

38  Annual Report

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

	Lazard		Lazard
	Enhanced		Master Alternatives
	Opportunities		Portfolio
Industry*	Portfolio			Long		Short
Agriculture	0.8	%		0.4	%	—	%
Alcohol & Tobacco	1.3			3.1		—
Automotive	—			1.4		-0.2
Banking	0.3			6.9		-2.0
Building Products	—			0.4		—
Cable Television	—			—		-0.4
Chemicals	0.6			2.3		-0.6
Commercial Services	1.1			4.4		-0.8
Computer Software & Services	1.0			0.6		—
Construction & Engineering	—			2.2		-0.1
Construction Materials	—			0.1		—
Consumer Products	0.5			0.2		—
Electric	—			1.2		—
Energy Exploration & Production	0.3			0.7		—
Energy Integrated	—			1.1		—
Energy Services	0.2			0.2		-0.3
Financial Services	2.6			5.7		-1.3
Food & Beverages	—			1.8		-1.3
Forest & Paper Products	—			0.6		-0.4
Gas Utilities	—			0.3		—
Health Services	0.8			1.4		-0.7
Household & Personal Products	—			0.4		—
Housing	—			0.6		-0.8
Insurance	0.1			3.6		-0.8
Leisure & Entertainment	—			1.9		-1.0
Manufacturing	1.7			4.3		-2.7
Media	—			1.4		—
Medical Products	1.0			1.0		-0.7
Metals & Mining	—			0.7		—
Pharmaceutical & Biotechnology	3.1			5.9		-2.7
Real Estate Management & Development	6.0			2.1		—
Retail	1.1			5.6		-2.2
Semiconductors & Components	1.0			1.7		-0.7
Technology	—			0.7		-0.4
Technology Hardware	1.1			0.7		-0.4
Telecommunications	—			2.0		—
Transportation	1.3			2.5		-0.5
Water	—			0.5		—
Subtotal	25.9			70.6		-21.0
Exchange-Traded Funds	—			1.0		-1.6
Short-Term Investments	64.2			24.2		—
Total Investments	90.1	%		95.8	%	-22.6	%

* 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   39

The Lazard Funds, Inc. Statements of Assets and Liabilities

	Lazard				Lazard				Lazard
	Enhanced				Fundamental				Master
	Opportunities				Long/Short				Alternatives
December 31, 2015	Portfolio				Portfolio				Portfolio
ASSETS
Investments in securities, at value		$	4,442,850			$	338,732,569			$	16,520,385
Cash			—				—				76
Cash collateral due from broker			682,575				—				1,182,158
Foreign currency			—				—				3,103,219
Receivables for:
Capital stock sold			—				4,862,763				—
Investments sold			14,856				3,049,027				76,775
Dividends and interest			8,705				166,472				8,104
Amount due from Investment Manager (Note 3)			138,458				—				106,818
Variation margin on open futures contracts			—				—				1,346
Gross unrealized appreciation on:
Forward currency contracts			—				—				22,878
Swap agreements			171,406				—				833,627
Total assets			5,458,850				346,810,831				21,855,386
LIABILITIES
Securities sold short, at value			—				119,628,753				3,891,313
Due to custodian			—				40,130				—
Foreign currency due to custodian			288				—				—
Payables for:
Management fees			—				212,173				—
Accrued distribution fees			23				9,545				123
Accrued custodian fees			201,914				25,710				202,411
Investments purchased			1,628				4,991,069				66,731
Capital stock redeemed			—				285,389				—
Dividends on securities sold short			—				93,703				3,912
Gross unrealized depreciation on:
Forward currency contracts			—				—				164,950
Swap agreements			291,765				—				223,833
Written options, at value			4,552				—				—
Other accrued expenses and payables			26,364				157,192				55,777
Total liabilities			526,534				125,443,664				4,609,050
Net assets		$	4,932,316			$	221,367,167			$	17,246,336
NET ASSETS
Paid in capital		$	5,272,608			$	212,719,390			$	17,190,970
Undistributed (distributions in excess of) net investment income (loss)			(78,108	)			(94,560	)			97,084
Accumulated net realized loss			(16,039	)			(841,571	)			(337,144	)
Net unrealized appreciation (depreciation) on:
Investments			(122,427	)			3,270,988				(246,419	)
Securities sold short			—				6,312,920				68,066
Foreign currency and forward currency contracts			52				—				(141,987	)
Futures contracts			—				—				5,972
Written options			(3,411	)			—				—
Swap agreements			(120,359	)			—				609,794
Net assets		$	4,932,316			$	221,367,167			$	17,246,336
Institutional Shares
Net assets		$	4,822,708			$	174,601,161			$	16,692,552
Shares of capital stock outstanding*			542,467				14,687,573				1,664,680
Net asset value, offering and redemption price per share		$	8.89			$	11.89			$	10.03
Open Shares
Net assets		$	109,608			$	46,766,006			$	553,784
Shares of capital stock outstanding*			12,328				3,948,574				55,355
Net asset value, offering and redemption price per share		$	8.89			$	11.84			$	10.00
Cost of investments in securities		$	4,565,277			$	335,461,581			$	16,766,804
Proceeds received from securities sold short		$	—			$	125,941,673			$	3,959,379
Proceeds received from written options		$	1,141			$	—			$	—
Cost of foreign currency		$	—			$	—			$	3,100,007

* $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total.

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

40  Annual Report

The Lazard Funds, Inc. Statements of Operations

	Lazard				Lazard				Lazard
	Enhanced				Fundamental				Master
	Opportunities				Long/Short				Alternatives
For the Year Ended December 31, 2015	Portfolio				Portfolio				Portfolio
Investment Income (Loss)
Income
Dividends		$	20,194			$	1,112,414			$	200,713
Interest			54,617				—				37,712
Total investment income*			74,811				1,112,414				238,425
Expenses
Management fees (Note 3)			70,640				1,691,292				236,341
Custodian fees			384,640				107,297				462,319
Administration fees			51,010				74,163				53,378
Shareholders’ reports			6,404				70,630				14,943
Distribution fees (Open Shares)			279				66,004				1,356
Professional services			44,631				44,979				70,971
Registration fees			24,069				43,415				35,199
Shareholders’ services			28,946				28,763				28,960
Amortization of offering costs (Note 2(j))			72,894				27,045				157,158
Directors’ fees and expenses			3,939				7,682				4,395
Organization expenses			4,097				—				4,430
Other			1,713				7,210				2,062
Total gross expenses before expenses on securities sold short			693,262				2,168,480				1,071,512
Broker expense on securities sold short			—				888,954				61,756
Dividend expense on securities sold short			—				1,361,469				90,836
Total gross expenses			693,262				4,418,903				1,224,104
Management fees waived and expenses reimbursed			(576,230	)			(49,540	)			(752,158	)
Administration and shareholders’ services fees waived			(30,978	)			—				(30,984	)
Total net expenses			86,054				4,369,363				440,962
Net investment loss			(11,243	)			(3,256,949	)			(202,537	)
Net Realized and Unrealized Gain (Loss) on Investments, Securities Sold Short, Foreign Currency, Forward Currency Contracts, Futures Contracts, Options and Swap Agreements
Net realized gain (loss) on:
Investments			9,518				8,524,868				(210,656	)
Securities sold short			—				(6,836,142	)			112,222
Foreign currency and forward currency contracts			(1,372	)			—				215,345
Futures contracts			(25	)			—				24,519
Purchased options			(18,600	)			—				6,702
Written options			1,015				—				967
Swap agreements			149,600				—				(189,300	)
Total net realized gain (loss) on investments, securities sold short, foreign currency, forward currency contacts, futures contracts, options and swap agreements			140,136				1,688,726				(40,201	)
Net change in unrealized appreciation (depreciation) on:
Investments			(119,432	)			1,441,868				(173,569	)
Securities sold short			—				6,710,033				29,217
Foreign currency and forward currency contracts			52				—				(141,873	)
Futures contracts			—				—				5,972
Purchased options			(2,423	)			—				—
Written options			(3,411	)			—				—
Swap agreements			(120,359	)			—				609,794
Total net change in unrealized appreciation (depreciation) on investments, securities sold short, foreign currency, forward currency contracts, futures contracts, options and swap agreements			(245,573	)			8,151,901				329,541
Net realized and unrealized gain (loss) on investments, securities sold short, foreign currency, forward currency contracts, futures contracts, options and swap agreements			(105,437	)			9,840,627				289,340
Net increase (decrease) in net assets resulting from operations		$	(116,680	)		$	6,583,678			$	86,803
* Net of foreign withholding taxes of		$	194			$	13,141			$	14,810

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

Annual Report  41

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

	Lazard
	Enhanced Opportunities Portfolio
	Year Ended				Period Ended
	December 31,				December 31,
	2015				2014 (a)
Increase (Decrease) in Net Assets
Operations
Net investment loss		$	(11,243	)		$	(234	)
Net realized gain (loss) on investments, securities sold short, foreign currency, forward currency contracts, futures contracts, options and swap agreements			140,136				(63	)
Net change in unrealized appreciation (depreciation) on investments, securities sold short, foreign currency, forward currency contracts, futures contracts, options and swap agreements			(245,573	)			(572	)
Net increase (decrease) in net assets resulting from operations			(116,680	)			(869	)
Distributions to shareholders
From net investment income
Institutional Shares			(67,248	)			—
Open Shares			(1,254	)			—
From net realized gains
Institutional Shares			(174,626	)			—
Open Shares			(4,044	)			—
Return of capital
Institutional Shares			(191,531	)			—
Open Shares			(4,325	)			—
Net decrease in net assets resulting from distributions			(443,028	)			—
Capital stock transactions
Net proceeds from sales
Institutional Shares			41,301				4,900,000
Open Shares			12,500				100,000
Net proceeds from reinvestment of distributions
Institutional Shares			433,405				—
Open Shares			9,623				—
Cost of shares redeemed
Institutional Shares			(3,936	)			—
Open Shares			—				—
Net increase in net assets from capital stock transactions			492,893				5,000,000
Redemption fees (Note 2(l))
Institutional Shares			—				—
Open Shares			—				—
Net increase in net assets from redemption fees			—				—
Total increase (decrease) in net assets			(66,815	)			4,999,131
Net assets at beginning of period			4,999,131				—
Net assets at end of period*		$	4,932,316			$	4,999,131
*Includes undistributed (distributions in excess of) net investment income (loss) of		$	(78,108	)		$	—
(a) The Portfolio commenced operations on December 31, 2014.
(b) The Portfolio commenced operations on April 30, 2014.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			490,000				—
Shares sold			4,279				490,000
Shares issued to shareholders from reinvestment of distributions			48,588				—
Shares redeemed			(400	)			—
Net increase			52,467				490,000
Shares outstanding at end of period			542,467				490,000
Open Shares
Shares outstanding at beginning of period			10,000				—
Shares sold			1,249				10,000
Shares issued to shareholders from reinvestment of distributions			1,079				—
Shares redeemed			—				—
Net increase			2,328				10,000
Shares outstanding at end of period			12,328				10,000

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

42  Annual Report

Lazard								Lazard
Fundamental Long/Short Portfolio								Master Alternatives Portfolio
Year Ended				Period Ended				Year Ended				Period Ended
December 31,				December 31,				December 31,				December 31,
2015				2014 (b)				2015				2014 (a)
	$	(3,256,949	)		$	(168,162	)		$	(202,537	)		$	(789	)
		1,688,726				1,070,618				(40,201	)			(64	)
		8,151,901				1,432,007				329,541				(34,115	)
		6,583,678				2,334,463				86,803				(34,968	)
		—				—				—				—
		—				—				—				—
		(372,248	)			(419,620	)			—				—
		(102,327	)			(131,039	)			—				—
		(67	)			—				—				—
		(19	)			—				—				—
		(474,661	)			(550,659	)			—				—
		151,822,500				38,830,731				4,110,819				16,366,000
		43,859,478				10,626,369				104,433				500,000
		189,065				129,090				—				—
		102,106				130,605				—				—
		(22,552,262	)			(383,317	)			(3,837,782	)			—
		(9,245,054	)			(36,299	)			(48,969	)			—
		164,175,833				49,297,179				328,501				16,866,000
		86				—				—				—
		1,242				6				—				—
		1,328				6				—				—
		170,286,178				51,080,989				415,304				16,831,032
		51,080,989				—				16,831,032				—
	$	221,367,167			$	51,080,989			$	17,246,336			$	16,831,032
	$	(94,560	)		$	(201	)		$	97,084			$	582
		3,576,865				—				1,636,600				—
		13,030,458				3,599,400				406,206				1,636,600
		16,643				11,454				—				—
		(1,936,393	)			(33,989	)			(378,126	)			—
		11,110,708				3,576,865				28,080				1,636,600
		14,687,573				3,576,865				1,664,680				1,636,600
		961,228				—				50,000				—
		3,778,921				952,892				10,267				50,000
		9,012				11,599				—				—
		(800,587	)			(3,263	)			(4,912	)			—
		2,987,346				961,228				5,355				50,000
		3,948,574				961,228				55,355				50,000

Annual Report  43

The Lazard Funds, Inc. Financial Highlights

LAZARD ENHANCED OPPORTUNITIES PORTFOLIO

	Year
Selected data for a share of capital	Ended				Period Ended
stock outstanding throughout each period	12/31/15				12/31/14*
Institutional Shares
Net asset value, beginning of period		$	10.00			$	10.00
Loss from investment operations:
Net investment loss (a)			(0.02	)			—	(b)
Net realized and unrealized loss			(0.21	)			—	(b)
Total from investment operations			(0.23	)			—	(b)
Less distributions from:
Net investment income			(0.14	)			—
Net realized gains			(0.35	)			—
Return of capital			(0.39	)			—
Total distributions			(0.88	)			—
Net asset value, end of period		$	8.89			$	10.00
Total Return (c)			-2.32	%			0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	4,823			$	4,899
Ratios to average net assets (d):
Net expenses			1.70	%			1.70	%
Gross expenses			13.45	%			69.35	%(e)
Net investment loss			-0.22	%			-1.70	%
Portfolio turnover rate			639	%			37	%

	Year
Selected data for a share of capital	Ended				Period Ended
stock outstanding throughout each period	12/31/15				12/31/14*
Open Shares
Net asset value, beginning of period		$	10.00			$	10.00
Loss from investment operations:
Net investment loss (a)			(0.05	)			—	(b)
Net realized and unrealized loss			(0.21	)			—	(b)
Total from investment operations			(0.26	)			—	(b)
Less distributions from:
Net investment income			(0.11	)			—
Net realized gains			(0.35	)			—
Return of capital			(0.39	)			—
Total distributions			(0.85	)			—
Net asset value, end of period		$	8.89			$	10.00
Total Return (c)			-2.57	%			0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	110			$	100
Ratios to average net assets (d):
Net expenses			1.95	%			1.95	%
Gross expenses			26.46	%			69.36	%(e)
Net investment loss			-0.46	%			-1.95	%
Portfolio turnover rate			639	%			37	%

*	The Portfolio commenced operations on December 31, 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.
(e)	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.

44  Annual Report

LAZARD FUNDAMENTAL LONG/SHORT PORTFOLIO

	Year				For the Period
Selected data for a share of capital	Ended				4/30/14* to
stock outstanding throughout each period	12/31/15				12/31/14
Institutional Shares
Net asset value, beginning of period		$	11.26			$	10.00
Income (loss) from investment operations:
Net investment loss (a)			(0.31	)			(0.14	)
Net realized and unrealized gain			0.98				1.55
Total from investment operations			0.67				1.41
Less distributions from:
Net realized gains			(0.04	)			(0.15	)
Return of capital			—	(b)			—
Total distributions			(0.04	)			(0.15	)
Redemption fees			—	(b)			—
Net asset value, end of period		$	11.89			$	11.26
Total Return (c)			5.97	%			14.15	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	174,601			$	40,273
Ratios to average net assets (d):
Net expenses			3.56	%			3.20	%
Gross expenses			3.59	%			5.51	%
Gross expenses, excluding expenses on securities sold short			1.73	%			4.01	%
Net investment loss			-2.64	%			-1.94	%
Portfolio turnover rate:
Excluding securities sold short			183	%			132	%
Including securities sold short			263	%			277	%

	Year				For the Period
Selected data for a share of capital	Ended				4/30/14* to
stock outstanding throughout each period	12/31/15				12/31/14
Open Shares
Net asset value, beginning of period		$	11.24			$	10.00
Income (loss) from investment operations:
Net investment loss (a)			(0.33	)			(0.17	)
Net realized and unrealized gain			0.97				1.56
Total from investment operations			0.64				1.39
Less distributions from:
Net realized gains			(0.04	)			(0.15	)
Return of capital			—	(b)			—
Total distributions			(0.04	)			(0.15	)
Redemption fees			—	(b)			—	(b)
Net asset value, end of period		$	11.84			$	11.24
Total Return (c)			5.71	%			14.05	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	46,766			$	10,808
Ratios to average net assets (d):
Net expenses			3.81	%			3.41	%
Gross expenses			3.89	%			6.28	%
Gross expenses, excluding expenses on securities sold short			2.02	%			4.82	%
Net investment loss			-2.89	%			-2.34	%
Portfolio turnover rate:
Excluding securities sold short			183	%			132	%
Including securities sold short			263	%			277	%

*	The Portfolio commenced operations on April 30, 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  45

LAZARD MASTER ALTERNATIVES PORTFOLIO

	Year
Selected data for a share of capital	Ended				Period Ended
stock outstanding throughout each period	12/31/15				12/31/14*
Institutional Shares
Net asset value, beginning of period		$	9.98			$	10.00
Income (loss) from investment operations:
Net investment loss (a)			(0.12	)			—	(b)
Net realized and unrealized gain (loss)			0.17				(0.02	)
Total from investment operations			0.05				(0.02	)
Net asset value, end of period		$	10.03			$	9.98
Total Return (c)			0.50	%			-0.20	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	16,693			$	16,332
Ratios to average net assets (d):
Net expenses			2.60	%			1.70	%
Gross expenses			7.15	%			20.60	%(e)
Gross expenses, excluding expenses on securities sold short			6.25	%			20.60	%(e)
Net investment loss			-1.19	%			-1.70	%
Portfolio turnover rate:
Excluding securities sold short			304	%			0	%(f)
Including securities sold short			317	%			36	%

	Year
Selected data for a share of capital	Ended				Period Ended
stock outstanding throughout each period	12/31/15				12/31/14*
Open Shares
Net asset value, beginning of period		$	9.98			$	10.00
Income (loss) from investment operations:
Net investment loss (a)			(0.16	)			—	(b)
Net realized and unrealized gain (loss)			0.18				(0.02	)
Total from investment operations			0.02				(0.02	)
Net asset value, end of period		$	10.00			$	9.98
Total Return (c)			0.20	%			-0.20	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	554			$	499
Ratios to average net assets (d):
Net expenses			3.01	%			1.95	%
Gross expenses			10.23	%			20.60	%(e)
Gross expenses, excluding expenses on securities sold short			9.17	%			20.60	%(e)
Net investment loss			-1.62	%			-1.95	%
Portfolio turnover rate:
Excluding securities sold short			304	%			0	%(f)
Including securities sold short			317	%			36	%

*	The Portfolio commenced operations on December 31, 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.
(e)	Gross expense ratio was the result of the Portfolio being in existence for one day during the period ended December 31, 2014.
(f)	Amount is less than 1%.

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

46  Annual Report

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2015

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 “1940 Act”), as an open-end management investment company. The Fund is comprised of thirty-five no-load portfolios (each referred to as a “Portfolio”), as follows: Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard US Small Cap Equity Growth Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Equity Concentrated Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Equity Advantage Portfolio (commenced investment operations on May 29, 2015), Lazard International Small Cap Equity Portfolio, Lazard Global Equity Select Portfolio, Lazard Global Strategic Equity Portfolio, Lazard Managed Equity Volatility Portfolio (commenced investment operations on May 29, 2015), Lazard Emerging Markets Equity Portfolio, Lazard Emerging Markets Core Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Advantage Portfolio (commenced investment operations on May 29, 2015), Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi Asset Portfolio, Lazard Emerging Markets Debt Portfolio, Lazard Explorer Total Return Portfolio, Lazard Emerging Markets Income Portfolio, Lazard US Corporate Income Portfolio, Lazard US Short Duration Fixed Income Portfolio, Lazard Global Fixed Income Portfolio, Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard Capital Allocator Opportunistic Strategies Portfolio, Lazard Global Dynamic Multi Asset Portfolio, Lazard Enhanced Opportunities Portfolio, Lazard Fundamental Long/Short Portfolio, and Lazard Master Alternatives Portfolio. All Portfolios, other than US Equity Concentrated, International Equity Concentrated, Emerging Markets Debt, Explorer Total Return, Emerging Markets Income, US Realty Equity, Global Realty Equity, Enhanced Opportunities and Fundamental Long/Short Portfolios, are operated as “diversified” funds, as defined in the 1940 Act. Global Dynamic Multi Asset Portfolio had not commenced

operations as of December 31, 2015. This report includes only the financial statements of Enhanced Opportunities, Fundamental Long/Short and Master Alternatives Portfolios. The financial statements of other Portfolios are presented separately.

Effective November 29, 2013, an R6 Share class was classified for each Portfolio. 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, 2015, 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 US Strategic Equity, International Equity, International Strategic Equity and Emerging Markets Equity Portfolios had issued R6 Shares.

2. Significant Accounting Policies

The accompanying financial statements are presented in conformity with GAAP. The Fund is an investment company and therefore applies specialized accounting guidance in Accounting Standards Codification Topic 946. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements:

(a) Valuation of Investments—Net asset value (“NAV”) per share for each class of each Portfolio is determined on each day the New York Stock Exchange (“NYSE”) is open for business, generally as of the close of regular session trading on the NYSE (normally 4:00 p.m. Eastern time, the “Regular Closing Time”). When trading on the NYSE is unexpectedly closed prior to the Regular Closing Time, or an earlier scheduled close (such as on certain days around holidays when the NYSE is scheduled to close before 4:00 p.m.), and remains closed through the time of the Regular Closing Time (or an earlier scheduled close), the NAV of each class of each Portfolio may nonetheless be calculated as of the Regular Closing Time (or

Annual Report 47

an earlier scheduled close) if, in the judgment of the Investment Manager, there is sufficient trading in other markets between the unexpected close and the Regular Closing Time (or an earlier scheduled close) for securities for which the NYSE is usually considered the primary market. NAV per share is determined by dividing the value of the total assets of the Portfolio represented by such class, less all liabilities, by the total number of Portfolio shares of such class outstanding.

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 on each valuation date; securities not traded on the valuation date are valued at the most recent quoted bid price. The Fund values NASDAQ-traded securities at the NASDAQ Official Closing Price, which may not be the last reported sales price in certain instances. Exchange-traded options and futures contracts are valued at the last reported sales price on the exchange on which the contract is principally traded. Swap agreements, such as credit default and interest rate swap agreements and swap agreements with respect to equity securities, generally are valued by an independent pricing service. Forward currency contracts generally are valued using quotations from 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 on, among other things, trading in securities with similar characteristics, brokers’ quotations and/or a matrix system which considers such factors as other security prices, yields and maturities.

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.

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 and expense are recorded on the ex-dividend date except for certain dividends from foreign securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Portfolio. Interest income is accrued daily. The Portfo-

48 Annual Report

lios amortize premiums and accrete discounts on fixed-income securities using the effective yield method.

A Portfolio may be subject to taxes imposed by foreign countries in which it invests. Such taxes are generally based upon income earned or capital gains (realized or unrealized). An affected Portfolio accrues and applies such taxes to net investment income, net realized gains and net unrealized gains concurrent with the recognition of income 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.

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 ended December 31, 2015, only Master Alternatives Portfolio traded in forward currency contracts.

(d) Futures Transactions—For hedging and investment purposes, certain Portfolios may enter into futures contracts in US domestic markets, or exchanges located outside the United States.

Foreign markets may offer advantages such as trading opportunities or arbitrage possibilities not available in the United States. Foreign markets, however, may have greater risk potential than domestic markets. For example, some foreign exchanges are principal markets so that no common clearing facility exists and an investor may look only to the broker for performance of the contract. In addition, any profits a Portfolio might realize in trading could be eliminated by adverse changes in the currency exchange rate, or the Portfolio could incur losses as a result of those changes. Transactions on foreign exchanges may include both commodities which are traded on domestic exchanges and those which are not. Unlike trading on domestic commodity exchanges, trading on foreign commodity exchanges is not regulated by the Commodity Futures Trading Commission.

Engaging in these transactions involves risk of loss to the Portfolio which could adversely affect the value of the Portfolio’s net assets. Although each of these Portfolios intends to purchase or sell futures contracts only if there is an active market for such contracts, no

Annual Report 49

assurance can be given that a liquid market will exist for any particular contact at any particular time. Many futures exchanges and boards of trade limit the amount of fluctuation permitted in futures contract prices during a single trading day. Once the daily limit has been reached in a particular contract, no trades may be made that day at a price beyond that limit or trading may be suspended for specified periods during the trading day. Futures contract prices could move to the limit for several consecutive trading days with little or no trading, thereby preventing prompt liquidation of futures positions and potentially subjecting the Portfolio to substantial losses.

During the year ended December 31, 2015, Enhanced Opportunities and Master Alternatives Portfolios traded in futures contracts with Master Alternatives Portfolio having an average monthly value of approximately $900,000 and Enhanced Opportunities Portfolio having an immaterial amount.

(e) 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, 2015, transactions in options purchased and written were as follows:

Enhanced Opportunities Portfolio

Purchased Options	Number of Contracts			Cost
Options outstanding at beginning of year		—		$	—
Options purchased		821			65,247
Options sold		(498	)		(41,604	)
Options expired		(278	)		(20,705	)
Options outstanding at end of year		45		$	2,938

Written Options	Number of Contracts			Premiums
Options outstanding at beginning of year		—		$	—
Options written		315			38,443
Options exercised		(275	)		(36,081	)
Options expired		(22	)		(1,221	)
Options outstanding at end of year		18		$	1,141

Master Alternatives Portfolio

Purchased Options	Number of Contracts			Cost
Options outstanding at beginning of year		—		$	—
Options purchased		728			81,611
Options sold		(455	)		(41,461	)
Options expired		(273	)		(40,150	)
Options outstanding at end of year		—		$	—

Written Options	Number of Contracts			Premiums
Options outstanding at beginning of year		—		$	—
Options written		215			25,765
Options exercised		(195	)		(24,756	)
Options expired		(20	)		(1,009	)
Options outstanding at end of year		—		$	—

During the year ended December 31, 2015, Fundamental Long/Short Portfolio did not trade in options.

(f) Swap Agreements—Swap agreements on equity securities involve commitments to pay interest in exchange for a market linked return based on a notional amount. The counterparty pays out the total return of the equity security or 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 security or basket of securities 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.

50 Annual Report

Swap agreements generally 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. Once the interim payments are settled in cash, the net amount is recorded as realized gain (loss) on swap agreements in a Portfolio’s accompanying Statement of Operations, in addition to any realized gain (loss) recorded upon the termination of swap agreements.

During the year ended December 31, 2015, Enhanced Opportunities and Master Alternatives Portfolios traded in swap agreements with average monthly notional exposure of approximately $4,500,000 and $8,400,000, respectively.

(g) 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, 2015 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), 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, 2015, Fundamental Long/Short and Master Alternatives Portfolios had pledged $146,084,146 and $4,892,142, respectively, of long securities as collateral under such arrangement.

For the year ended December 31, 2015, the Portfolios received proceeds from securities sold short and purchased to cover short positions as follows:

Portfolio	Proceeds from Securities Sold Short		Purchased to Cover Short Positions
Fundamental Long/Short	$	273,895,333	$	176,194,121
Master Alternatives		16,354,625		16,542,028

(h) 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, 2015, the following Portfolio 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
Master Alternatives	$205,905

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, 2015, the following Portfolios elected to defer such losses as follows:

Annual Report 51

Portfolio	Post October Capital Loss Deferral		Late Year Ordinary Loss Deferral
Enhanced Opportunities	$	3,478	$	—
Fundamental Long/Short		102,368		—

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 the open tax year (2014), or expected to be taken in the Portfolios’ 2015 tax returns.

(i) 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. Differences in per share distributions, by class, are generally due to differences in class specific expenses.

Income 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:

Portfolio	Paid in Capital			Undistributed (Distributions in Excess of) Net Investment Income		Accumulated Net Realized Gain (Loss)
Enhanced Opportunities	$	(220,051	)	$	1,637	$	218,414
Fundamental Long/Short		(753,531	)		3,162,590		(2,409,059	)
Master Alternatives		(2,160	)		299,039		(296,879	)

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2015		2014			2015	2014
Enhanced Opportunities*	$	247,080	$	—		$92	$	—
Fundamental Long/Short*		474,575		550,659		—		—

* Enhanced Opportunities and Fundamental Long/Short Portfolios had return of capital distributions of $195,856 and $86 in year 2015, respectively.

At December 31, 2015, the components of distributable earnings, on a tax basis, were as follows:

Portfolio	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain/ Deferred Capital Losses			Net Unrealized Appreciation (Depreciation) Including Foreign Currency
Enhanced Opportunities	$	—	$	(3,478	)	$	(336,814	)
Fundamental Long/Short		—		(102,368	)		8,750,145
Master Alternatives		106,354		(205,905	)		154,917

(j) 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.

(k) 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.

(l) 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.

52 Annual Report

(m) 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 a 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 objectives 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
Enhanced Opportunities		1.40	%
Fundamental Long/Short		1.40
Master Alternatives		1.40

The Investment Manager has voluntarily agreed, through May 1 of the year shown below, to reduce its fees and, if necessary, reimburse the Portfolios if annualized operating expenses (exclusive of taxes, brokerage, interest on borrowings, dividend and interest expenses on securities sold short, fees and expenses of “Acquired Funds” and extraordinary expenses, and excluding shareholder redemption fees or other transaction fees) exceed the following percentages of average daily net assets for the respective shares:

Portfolio	Institutional Shares			Open Shares			Year
Enhanced Opportunities		1.70	%		1.95	%	2016	(a)
Fundamental Long/Short		1.70			1.95		2016
Master Alternatives		1.70			1.95		2016	(a)

(a) Agreement is through December 31, 2016.

During the year ended December 31, 2015, 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
Enhanced Opportunities	$	69,080	$	486,364	$	1,560	$	19,226
Fundamental Long/Short		30,240		—		19,300		—
Master Alternatives		228,769		491,070		7,572		24,747

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 year ended December 31, 2015, State Street waived its fees as follows:

Portfolio	Amount
Enhanced Opportunities	$	18,750
Master Alternatives		18,750

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

Annual Report 53

Under a distribution and servicing plan adopted pursuant to Rule 12b-1 under the 1940 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 year ended December 31, 2015, BFDS waived its fees as follows:

Portfolio	Amount
Enhanced Opportunities	$	12,228
Master Alternatives		12,234

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2015, each Director who is not an affiliated person of the Investment Manager or any of its affiliates was 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 Fund Complex”), each a registered management investment company advised by the Investment Manager, and Lazard Alternative Emerging Markets 1099 Fund, a closed-end registered management investment company advised by an affiliate of the Investment Manager: (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. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Directors’ fees were allocated among the funds in the Lazard Fund Complex and Lazard Alternative Emerging Markets

1099 Fund at a rate of $5,000 per fund with the remainder allocated based upon each fund’s proportionate share of combined net assets. 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 and short sales) for the year ended December 31, 2015 were as follows:

Portfolio	Purchases		Sales
Enhanced Opportunities	$	12,183,130	$	10,864,824
Fundamental Long/Short		332,722,994		193,200,169
Master Alternatives		39,051,318		33,962,466

For the year ended December 31, 2015, 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.

At December 31, 2015, the Investment Manager owned 99.01% and 98.14% of the outstanding shares of Enhanced Opportunities Portfolio and Master Alternatives Portfolio, respectively.

6. Line of Credit

The Fund has a $50 million Line of Credit Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings was payable: from January 1, 2015 to June 28, 2015, at the higher of the Federal Funds rate or Overnight LIBOR rate plus 1.00%, and from June 29, 2015 to December 31, 2015, at the higher of the Federal Funds rate or One-Month LIBOR rate plus 1.00%, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.10% per annum fee from January 1, 2015 to June 28, 2015 and 0.20% per annum from June 29, 2015 to December 31, 2015 on the unused portion of the commitment, payable quarterly in arrears. The Fund has also agreed to pay an upfront fee of 0.05% of the committed line amount. During the year ended December 31, 2015, the Portfolios had no borrowings under the Agreement.

54 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. The Portfolios’ investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies. 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 economies of countries with emerging markets may be based predominantly on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme debt burdens or volatile inflation rates. The securities markets of emerging market countries have historically been extremely volatile. These market conditions may continue or worsen. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies. 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.

(b) Fixed-Income and Debt Securities Risk—The market value of a debt security may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the outlook

for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The debt securities market can be susceptible to increases in volatility and decreases in liquidity. Prices of bonds and other debt securities tend to move inversely with changes in interest rates. Increases in volatility and decreases in liquidity may be caused by a rise in interest rates (or the expectation of a rise in interest rates). Interest rate risk is usually greater for fixed-income securities with longer maturities or durations.

The Portfolios’ investments in lower-rated, higher-yielding securities (“junk bonds”) 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 security’s value could fall, potentially lowering the Portfolios’ share price. The prices of non-investment grade securities, unlike investment grade debt securities, may fluctuate unpredictably and not necessarily inversely with changes in interest rates. The market for these securities may be less liquid and therefore these securities may be harder to value or sell at an acceptable price, especially during times of market volatility or decline. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening.

(c) Short Position Risk—Short positions 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.

(d) Swap Agreements and Other Derivatives Risk—Swap agreements and other derivatives transactions,

Annual Report 55

including those entered into for hedging purposes, may reduce returns or increase volatility, perhaps substantially. Over-the-counter swap agreements, forward currency contracts, over-the-counter options on securities (including options on ETFs), indexes and currencies and other over-the-counter derivatives transactions are subject to the risk of default by the counterparty and can be illiquid. These derivatives transactions, as well as the exchange-traded futures and options in which the Portfolios may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related security, interest rate, index, commodity, currency or other reference asset. As such, a small investment could have a potentially large impact on the Portfolios’ performance. Use of derivatives transactions, even when entered into for hedging purposes, may cause the Portfolios to experience losses greater than if the Portfolios had not engaged in such transactions.

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.

56 Annual Report

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2015:

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, 2015
Enhanced Opportunities Portfolio
Assets:
Common Stocks*	$	144,696		$	—		$	—	$	144,696
Corporate Bonds*		—			994,210			—		994,210
Preferred Stocks*		72,112			64,125			—		136,237
Purchased Options*		515			—			—		515
Short-Term Investment		3,167,192			—			—		3,167,192
Other Financial Instruments**
Total Return Swap Agreements		—			171,406			—		171,406
Total	$	3,384,515		$	1,229,741		$	—	$	4,614,256
Liabilities:
Other Financial Instruments**
Total Return Swap Agreements	$	—		$	(291,765	)	$	—	$	(291,765	)
Written Options		(4,552	)		—			—		(4,552	)
Total	$	(4,552	)	$	(291,765	)	$	—	$	(296,317	)
Fundamental Long/Short Portfolio
Assets:
Common Stocks*	$	182,934,260		$	—		$	—	$	182,934,260
Short-Term Investment		155,798,309			—			—		155,798,309
Total	$	338,732,569		$	—		$	—	$	338,732,569
Liabilities:
Securities Sold Short*	$	(119,628,753	)	$	—		$	—	$	(119,628,753	)
Master Alternatives Portfolio
Assets:
Common Stocks*
China	$	65,046		$	372,850		$	—	$	437,896
France		64,523			955,196			—		1,019,719
Greece		10,296			10,442			—		20,738
Netherlands		146,033			240,676			—		386,709
Russia		16,799			44,410			—		61,209
South Africa		13,850			542,643			—		556,493
United Kingdom		160,730			735,524			—		896,254
Other		3,750,328			5,042,781			—		8,793,109
Exchange-Traded Funds*		119,076			57,051			—		176,127
Warrant***		—			—			—		—
Short-Term Investment		4,172,131			—			—		4,172,131
Other Financial Instruments**
Forward Currency Contracts		—			22,878			—		22,878
Futures Contracts		—			8,555			—		8,555
Total Return Swap Agreements		—			833,627			—		833,627
Total	$	8,518,812		$	8,866,633		$	—	$	17,385,445
Liabilities:
Securities Sold Short*	$	(2,554,862	)	$	(1,336,451	)	$	—	$	(3,891,313	)
Other Financial Instruments**
Forward Currency Contracts		—			(164,950	)		—		(164,950	)
Futures Contracts		—			(2,583	)		—		(2,583	)
Total Return Swap Agreements		—			(223,833	)		—		(223,833	)
Total	$	(2,554,862	)	$	(1,727,817	)	$	—	$	(4,282,679	)

*	Please refer to Portfolios of Investments (page 12 through 37) and Notes to Portfolios of Investments (page 39) for portfolio holdings by country and industry.
**	Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation/depreciation.
***	The warrant was reported in the Portfolios of Investments at zero market value.

Annual Report 57

The security to which footnote (g) in the Notes to Portfolios of Investments applies is included in Level 2 and was valued based on reference to a similar security 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 (g) in the Notes to Portfolios of Investments) 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. Accordingly, a significant portion of the Portfolios’ investments are categorized as Level 2 investments. A Portfolio recognizes all transfers between levels as though they were transferred at the beginning of the reporting period.

At December 31, 2015, a security valued at the following amount was transferred from Level 2 to Level 1:

Portfolio	Amount
Master Alternatives	$	193,537

There were no other transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 2015.

For further information regarding security characteristics see Portfolios of Investments.

10. Derivative Instruments

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

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

A Portfolio may enter into futures transactions to hedge against changes in interest rates, securities prices, and/or currency exchange rates, to increase total return, or to otherwise gain access or attain exposure to certain markets or other underliers.

A Portfolio may write or purchase call or put options to seek to realize, through the receipt of premiums and changes in market value, a greater return than would be realized on the underlying securities alone, or to seek to protect the Portfolio from losses.

A Portfolio enters into swap agreements in an attempt to obtain a particular exposure 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 exposure.

Enhanced Opportunities Portfolio

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2015:

	Fair Value
Asset Derivatives
Equity Risk:
Gross unrealized appreciation on total return swap agreements	$	171,406
Liability Derivatives
Equity Risk:
Gross unrealized depreciation on purchased options	$	2,423
Gross unrealized depreciation on written options	$	3,411
Gross unrealized depreciation on total return swap agreements	$	291,765

58 Annual Report

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2015 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Equity Risk:
Net realized loss on futures contracts	$	(25	)
Net realized loss on purchased options	$	(18,600	)
Net realized gain on written options	$	1,015
Net realized gain on total return swap agreements	$	149,600
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	216
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Equity Risk:
Net change in unrealized depreciation on purchased options	$	(2,423	)
Net change in unrealized depreciation on written options	$	(3,411	)
Net change in unrealized depreciation on total return swap agreements	$	(120,359	)

Master Alternatives Portfolio

During the year ended December 31, 2015, the notional amounts of purchases and sales of forward currency contracts were $25,105,787 and $32,602,276, respectively, with average monthly notional exposure of approximately $6,500,000.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2015:

	Fair Value
Asset Derivatives
Equity Risk:
Gross unrealized appreciation on futures contracts	$	8,555
Gross unrealized appreciation on total return swap agreements	$	833,627
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	22,878
Liability Derivatives
Equity Risk:
Gross unrealized depreciation on futures contracts	$	2,583
Gross unrealized depreciation on total return swap agreements	$	223,833
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	164,950

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2015 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Equity Risk:
Net realized gain on futures contracts	$	24,519
Net realized gain on purchased options	$	6,702
Net realized gain on written options	$	967
Net realized loss on total return swap agreements	$	(189,300	)
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	194,457
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Equity Risk:
Net change in unrealized appreciation on futures contracts	$	5,972
Net change in unrealized appreciation on total return swap agreements	$	609,794
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(142,072	)

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

During the year ended December 31, 2015, Fundamental Long/Short Portfolio did not trade in derivative instruments.

As of December 31, 2015, the Enhanced Opportunities and Master Alternatives 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  59

The required information for the affected Portfolios are presented in the below table, as of December 31, 2015:

Enhanced Opportunities 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
Total Return Swap Agreements		$	171,406	$	—	$	171,406

				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 (a)		Net Amounts
Deutsche Bank AG		$	171,406	$	(171,406	)	$	—	$	—

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
Total Return Swap Agreements		$	291,765	$	—	$	291,765

				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 (a)			Net Amounts
Deutsche Bank AG		$	291,765	$	(171,406	)	$	(120,359	)	$	—

Master Alternatives 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		$	22,878	$	—		$	22,878
Total Return Swap Agreements			833,627		—			833,627
Total		$	856,505	$	—		$	856,505

				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 (a)		Net Amounts
Deutsche Bank AG		$	833,627	$	(223,833	)	$	—	$	609,794
State Street Bank and Trust Co.			22,878		(22,878	)		—		—
Total		$	856,505	$	(246,711	)	$	—	$	609,794

60  Annual Report

Description	Gross Amounts of Recognized Liabilities			Gross Amounts Offset in the Statement of Assets and Liabilities		Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities
Forward Currency Contracts		$	164,950	$	—	$	164,950
Total Return Swap Agreements			223,833		—		223,833
Total		$	388,783	$	—	$	388,783

				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 (a)			Net Amounts
Deutsche Bank AG		$	223,833	$	(223,833	)	$	—		$	—
State Street Bank and Trust Co.			164,950		(22,878	)		(82,158	)		59,914
Total		$	388,783	$	(246,711	)	$	(82,158	)	$	59,914

(a) Collateral amounts disclosed in the table above may be adjusted due to the requirement to limit collateral amounts to avoid the effect of over-collateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein.

11. Subsequent Events

Management has evaluated subsequent events affecting the Fund through the issuance of the financial statements and has determined that except for the following that there were no subsequent events that required adjustment or disclosure.

Subsequent to December 31, 2015, the Board of the Fund approved the liquidation of Master Alternatives Portfolio. A liquidation payment of Master Alternatives Portfolio’s net assets is expected to be paid to all remaining shareholders on or around March 1, 2016.

Annual Report  61

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

To the Board of Directors of The Lazard Funds, Inc. and the Shareholders of Lazard Enhanced Opportunities Portfolio, Lazard Fundamental Long/Short Portfolio, and Lazard Master Alternatives Portfolio:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Lazard Enhanced Opportunities Portfolio, Lazard Fundamental Long/Short Portfolio, and Lazard Master Alternatives Portfolio (collectively the “Portfolios”), three of the portfolios constituting The Lazard Funds, Inc. (the “Funds”) as of December 31, 2015, and the related statements of operations for the year then ended, and the statements of changes in net assets and the financial highlights for the year then ended and the period ended December 31, 2014. These financial statements and financial highlights are the responsibility of the Funds’ 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 Portfolios are not required to have, nor were we engaged to perform, an audit of their 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 Portfolios’ 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, 2015, 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 Enhanced Opportunities Portfolio, Lazard Fundamental Long/Short Portfolio, and Lazard Master Alternatives Portfolio of The Lazard Funds, Inc. as of December 31, 2015, the results of their operations for the year then ended, and the changes in their net assets and the financial highlights for the year then ended and the period ended December 31, 2014, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP
New York, New York
February 29, 2016

62  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 (62)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012)
		Cornell Law School, Visiting Professor of Practice (2015 – present); previously, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)
Kenneth S. Davidson (70)	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 (53)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
		TIAA-CREF Funds (65 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 (44)	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)
Richard Reiss, Jr. (71)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		Resource Americas, Inc., a real estate management company, Director (2016 – present)
		O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (68)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

Annual Report  63

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)
Interested Directors(4):
Charles L. Carroll (55)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (55)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present) Lazard Ltd, Vice Chairman and Director (2010 – present)

(1)	The address of each Director of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each Director serves as a Director for each of the funds in the Lazard Fund Complex (comprised of, as of January 31, 2016, 41 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 funds in the Lazard Fund Complex.
(3)	“Independent Directors” are not “interested persons” (as defined in the 1940 Act) of the Fund.
(4)	Messrs. Bhutani and Carroll are “interested persons” (as defined in the 1940 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.

64  Annual Report

Name (Age) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) During the Past Five Years
Officers(3):
Nathan A. Paul (43)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Stephen St. Clair (57)	Treasurer (May 2003)	Vice President of the Investment Manager
Mark R. Anderson (45)	Chief Compliance Officer (September 2014)	Director and Chief Compliance Officer 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 (40)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) and Director of Legal Affairs (since July 2015) of the Investment Manager
Shari L. Soloway (34)	Assistant Secretary (November 2015)	Senior Vice President, Legal and Compliance, of the Investment Manager (since September 2015)
		Vice President and Associate General Counsel of GE Asset Management (July 2011 – September 2015)
		Associate at Clifford Chance US LLP (2006 – July 2011)
Cesar A. Trelles (41)	Assistant Treasurer (December 2004)	Vice President of the Investment Manager

(1)	The address of each officer of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each officer serves for an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation or removal. Each officer serves in the same capacity for the other funds in the Lazard Fund Complex.
(3)	In addition to Charles L. Carroll, President, whose information is included in the Interested Directors section.

Annual Report  65

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

Tax Information

Year Ended December 31, 2015

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2015:

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

Portfolio	Percentage
Enhanced Opportunities		2.28	%
Fundamental Long/Short		0.02
Master Alternatives		—

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

Portfolio	Percentage
Enhanced Opportunities		2.85	%
Fundamental Long/Short		7.99
Master Alternatives		—

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

Proxy Voting

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

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

Form N-Q

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

66  Annual Report

The Lazard Funds, Inc.

30 Rockefeller Plaza

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

Investment Manager

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

Distributor

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

Custodian

State Street Bank and Trust Company
One 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
LZDPS031

Lazard Funds Annual Report

December 31, 2015

Asset Allocation Fund

Lazard Capital Allocator Opportunistic Strategies Portfolio

PRIVACY NOTICE Revised September 30, 2015

FACTS	What does Lazard do with your personal information?
Why?	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?	The types of personal information we collect and share depend on the product or service you have with us. This information can include:
	• Social Security number
	• Assets and income
	• Account transactions
	• Credit history
	• Transaction history
	When you are no longer our customer, we continue to share your information as described in this notice.
How?	All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Lazard chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does Lazard share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	No	We do not share
For joint marketing with other financial companies	No	We do not share
For our affiliates’ everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates’ everyday business purposes — information about your creditworthiness	No	We do not share
For nonaffiliates to market to you	No	We do not share

Questions? Call 800-823-6300 or go to http://www.LazardNet.com

Who we are
Who is providing this notice?	Lazard Asset Management LLC, Lazard Alternatives, LLC, Lazard Asset Management (Canada), Inc., Lazard Asset Management Securities LLC on their own behalf and on behalf of the funds they manage.
What we do
How does Lazard protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We believe the measures also comply with applicable state laws.
How does Lazard collect my personal information?	We collect your personal information, for example, when you:
	• Open an account
	• Seek advice about your investments
	• Direct us to buy securities
	• Direct us to sell your securities
	• Enter into an investment advisory contract
	We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?	Federal law gives you the right to limit only:
	• Sharing for affiliates’ everyday business purposes—information about your creditworthiness
	• Affiliates from using your information to market to you
	• Sharing for nonaffiliates to market to you
	State laws and individual companies may give you additional rights to limit sharing.
Definitions
Affiliates	Companies related by common ownership or control. They can be financial and nonfinancial companies.
	Our affiliates include financial companies whose names include “Lazard.”
Nonaffiliates	Companies not related by common ownership or control. They can be financial and nonfinancial companies.
	Lazard does not share information with nonaffiliates so they can market to you.
Joint marketing	A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
	Lazard does not jointly market.

Other important information

Lazard Asset Management (Canada), Inc. does not disclose any non-public personal information about its customers or former customers to any third party, except as permitted by or required by any applicable law, including the laws of the United States and Canada.

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
23	Report of Independent Registered Public Accounting Firm
24	Board of Directors and Officers Information
27	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 2015, global equity market volatility increased due to the prospect of a debt default by Greece, uncertain global monetary policy, and oil price instability. In the US, markets rose modestly as the labor market improved and corporate earnings generally exceeded expectations. Japanese equities extended their impressive streak as Abenomics reforms began to pay dividends. In Europe, the economic recovery continued, but investor enthusiasm remained tepid as countries in the region made mixed progress. Meanwhile, emerging markets assets recorded another difficult year due to economic and political challenges and uncertainty about the possibility of interest rate increases in the US.

Interest rates diverged around the world after the US Federal Reserve announced its highly anticipated rate hike on December 16, and the US yield curve flattened as shorter-maturity yields rose slightly more than those with longer maturities. Currencies were volatile in 2015 and the US dollar strengthened against most of its global counterparts. Investor enthusiasm for European bonds with very low or negative yields waned as the effects of European Central Bank bond repurchases began to fade.

At Lazard Asset Management, we remain focused on active management and are committed to responsibly pursuing the Portfolios’ investment objectives so that you, a valued shareholder in Lazard Funds, achieve your financial goals.

We appreciate your continued confidence in our investment management capabilities, and feel privileged that you have turned to Lazard for your investment needs.

Sincerely,

Lazard Asset Management LLC

2  Annual Report

The Lazard Funds, Inc. Investment Overview

Capital Allocator

Global capital markets provided few sources of return in 2015, as investors remained unsettled about global growth. The only major region with positive equity returns for the year was Japan. Emerging markets equity were the worst performing part of the market and most other asset classes produced returns slightly above and below zero. US small- and mid-cap equities materially underperformed their large-cap peers. The US fixed income market was slightly positive for the year, while the global bond market was negative. Market volatility has increased and the positive feelings for the first half of 2015 were largely erased in the fourth quarter due to concerns about global growth rates, weakness in commodity prices and the pace and timing of the looming US Federal Reserve (the “Fed”) interest rate hike cycle.

Japanese equities were the market leaders in 2015 as the current program of “Abenomics” continues to bear fruit. Corporate profits and share prices have reached near term highs and, while economic growth is not strong, it remains positive.

In the US, equity markets were affected by continued concerns regarding global growth, valuations that are not cheap, and the beginning of the Fed rate hike cycle. Economic data in the US is largely mixed, and investors have become fearful as the Fed may no longer be as supportive. The smaller cap stocks have felt the impact most severely as they are more tied to the domestic economy and the oil and gas exploration & production industry that is most associated with fracking and most vulnerable to the low price of oil.

The European equity market finished the year in negative territory. Economic recovery continues in the region, but investor enthusiasm remains tepid given the mixed progress among individual countries. We are optimistic about the longer-term prospects for economic repair, though we recognize it is still likely to be a drawn out process. Elections that have produced uncertain leadership do not help the situation, particularly in Spain, where a new coalition government will struggle to implement a pro-growth policy. There are also additional strains associated with the Syrian refugee crisis that are adding to the uncertainty.

Emerging markets equities posted the worst returns of any major asset class. Lower commodity prices and uncertainty in China continue to be a drag on capital markets. Countries in the Middle East and Latin America continued to struggle most, mired in domestic turmoil and commodity woes. We maintain our cautious view on emerging markets, particularly given the persistent weakness in commodity prices. At this time we do not observe any near-term catalysts for performance, but we remain watchful for developments that suggest the environment may be changing.

While markets underwent a further decline in the fourth quarter, we believe that global economic growth will continue, though at a muted pace. Accommodative central bank policies and the ongoing economic recovery in the developed economies will be the driver and lower oil prices will ultimately be stimulative to consumption in energy-importing countries.

The US bond market ended the year with slight gains but modestly declined in December with rates rising across the curve. The much anticipated “lift-off” from the zero interest policy was the main catalyst. The US dollar ended the year higher, despite selling off from near-term highs toward year-end.

Lazard Capital Allocator Opportunistic Strategies Portfolio

For the year ended December 31, 2015, the Lazard Capital Allocator Opportunistic Strategies Portfolio’s Institutional Shares posted a total return of -3.80%, while Open Shares posted a total return of -4.61%, as compared with the -0.87% return for the MSCI World^® Index and -0.14% return for the Global Asset Allocation Blended Index.¹

Thematic investments, which represented 52% of the Portfolio as of December 31, 2015, underperformed both the Global Asset Allocation Blended Index and the MSCI World Index during the period. Broad European equity exposure, and specifically to Spain and Italy, were sources of underperformance. Large-cap Japanese equity was also a detractor, though Japanese small-cap investments helped mitigate some of the downside. Investments in US consumer services, technology, and aerospace & defense were the main con-

Annual Report  3

tributors to return. During the period, derivatives exposure included three custom baskets of securities. One basket is focused on US large-cap equities that have historically outperformed the market during periods of low energy prices, and this investment produced a positive return in the period and a neutral impact to the overall Portfolio performance. Another basket, which provided exposure to stocks that historically tend to outperform in low growth and low inflation environments, had a negative impact on the Portfolio’s performance due to a smaller cap bias. The third custom basket, which provided exposure to European export companies, also underperformed in the period as European shares were generally weak. These investments represent unique opportunity sets based on a top-down macroeconomic investment thesis. These custom baskets of specific securities exposure 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.

Diversifying investments, which represented 35% of the Portfolio at the end of December, underperformed the benchmarks over the period. Investments in US credit markets, particularly high yield bonds, were the major source of underperformance for the category. Cash and short-term bonds were positives contributors. Currency hedges (executed through the use of forward currency contracts), were relatively flat for

the period and we retained a short euro position while we exited the short yen position.

Contrarian investments, which represented 8% of the Portfolio at the end of the period, underperformed the MSCI World Index and the Global Asset Allocation Blended Index for the year. Exposure to regional banking and the broad financial sector were the largest detractors to returns. Emerging markets exposures were also a detractor. Tactical trading activity in volatility securities was accretive to the Portfolio. We have owned exchange-traded notes (senior, unsecured, unsubordinated debt securities issued by an underwriting bank) that are both positively and negatively correlated with the CBOE Short Term Volatility^® Index (VIX), and the VIX Medium Term^® Index. All financial and emerging markets equity positions in this investment theme were exited in the period.

Discounted investments, which represented 5% of the Portfolio as of December 31, 2015, underperformed both benchmarks during the period. Our short-term positions in energy closed-end funds were the main detractor from performance as these securities declined significantly during the selloff in oil prices. An Indian equity closed-end fund contributed to returns during the period. The Indian equity closed-end fund position and the energy closed-end fund positions were exited during the period.

Notes to Investment Overview:

Total 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, 2015; these views and portfolio holdings may have changed subsequent to this date. Nothing herein should be construed as a recommendation to buy, sell, or hold a particular security. There is no assurance that the securities discussed herein will remain in a Portfolio at the time you receive this report, or that securities sold will not have been repurchased. The specific securities discussed may, in aggregate, represent only a small percentage of a Portfolio’s holdings. It should not be assumed that securities identified and discussed were, or will be, profitable, or that the investment decisions made in the future will be profitable, or equal the investment performance of the securities discussed herein.

The views and opinions expressed are provided for general information only, and do not constitute specific tax, legal, or investment advice to, or recommendations for, any person. There can be no guarantee as to the accuracy of any outlooks for markets, sectors and securities as discussed herein. You should read the Fund’s prospectus or each Portfolio’s summary prospectus for a more detailed discussion of each Portfolio’s investment objectives, strategies, risks and fees.

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

4  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, 2015

	Institutional Shares									Open Shares
	One			Five			Since			One			Five			Since
	Year			Years			Inception†			Year			Years			Inception†
Capital Allocator Opportunistic Strategies Portfolio**		-3.80	%		3.54	%		3.04	%		-4.61	%		3.09	%		2.71	%
MSCI World Index		-0.87	%		7.59	%		4.03	%		-0.87	%		7.59	%		4.10	%
Global Asset Allocation Blended Index		-0.14	%		6.11	%		4.59	%		-0.14	%		6.11	%		4.63	%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Institutional Shares was March 26, 2008 and for Open Shares was March 31, 2008.

Annual Report  5

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

Expense Example

As a shareholder in a Portfolio of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from July 1, 2015 through December 31, 2015 and held for the entire period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

For each Share class of the Portfolio, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual 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 7/1/15		Ending Account Value 12/31/15		Expenses Paid During Period* 7/1/15 - 12/31/15		Annualized Expense Ratio During Period 7/1/15 - 12/31/15
Capital Allocator Opportunistic Strategies
Institutional Shares
Actual	$	1,000.00	$	967.80		$5.06		1.02	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.06		$5.19		1.02	%
Open Shares
Actual	$	1,000.00	$	961.60		$6.53		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, 2015

Asset Class/Sector*	Lazard Capital Allocator Opportunistic Strategies Portfolio
Equity**
Consumer Discretionary		13.8	%
Consumer Staples		3.1
Energy		1.0
Financials		4.9
Health Care		2.8
Industrials		9.0
Information Technology		11.4
Materials		2.2
Telecommunication Services		0.6
Utilities		0.6
Fixed Income and Other***		26.0
Short-Term Investment		24.6
Total Investments		100.0	%

*	Represents percentage of total investments.
**	Equity sector breakdown is based upon the exchange-traded funds underlying holdings.
***	Other is representative of structured notes.

Annual Report  7

The Lazard Funds, Inc. Portfolio of Investments December 31, 2015

Description	Shares		Value
Lazard Capital Allocator Opportunistic Strategies Portfolio
Exchange-Traded Note | 2.0%
VelocityShares Daily Inverse VIX Short-Term ETN (a) (Identified cost $3,651,124)		135,500	$	3,495,900
Exchange-Traded Funds | 68.2%
Equity Funds | 49.4%
First Trust NASDAQ Global Auto Index Fund		173,000		6,266,060
iShares Currency Hedged MSCI Eurozone ETF		300,100		7,748,582
iShares MSCI Europe Small-Cap ETF		144,400		6,538,432
iShares MSCI Eurozone ETF		207,600		7,274,304
iShares MSCI Japan ETF		580,600		7,036,872
iShares MSCI Japan Small-Cap ETF		159,600		9,328,620
iShares North American Tech ETF		158,547		17,533,713
iShares U.S. Consumer Services ETF		64,200		9,289,098
PowerShares Aerospace & Defense Portfolio		254,300		9,063,252
SPDR Barclays Convertible Securities ETF		106,600		4,613,648
				84,692,581

Description	Shares		Value
Fixed-Income Funds | 18.8%
PowerShares Fundamental High Yield Corporate Bond Portfolio		1,050,700	$	18,324,208
Vanguard Short-Term Corporate Bond ETF		175,700		13,878,543
				32,202,751
Total Exchange-Traded Funds (Identified cost $119,290,486)				116,895,332
Closed-End Management Investment Company | 5.1%
Eaton Vance Limited Duration Income Fund (Identified cost $8,962,846)		682,900		8,713,804
Short-Term Investment | 24.6%
State Street Institutional Treasury Money Market Fund (Identified cost $42,077,189)		42,077,189		42,077,189
Total Investments | 99.9%
(Identified cost $173,981,645) (b), (c)			$	171,182,225
Cash and Other Assets in Excess of Liabilities | 0.1%				168,318
Net Assets | 100.0%			$	171,350,543

Forward Currency Sale Contracts open at December 31, 2015:

					Cost
		Settlement			on Origination		Unrealized
Currency	Counterparty	Date	Quantity		Date^		Depreciation
EUR	SSB	02/18/16		5,589,973		5,949,000		$	132,510
EUR	SSB	02/18/16		8,422,043		8,994,952			167,657
Total Forward Currency Sale Contracts								$	300,167

^ In USD unless otherwise indicated.

Total Return Swap Agreements open at December 31, 2015:

			Notional
			Amount		Expiration		Unrealized
Pay	Currency	Counterparty	(000)		Date	Receive	Depreciation
1 Month USD LIBOR plus 0.40%	USD	GSC		9,594	06/27/16	Appreciation, and dividends paid, on securities in a basket of domestic equity securities		$	74,078
1 Month USD LIBOR plus 0.40%	EUR	GSC		6,140	11/25/16	Appreciation, and dividends paid, on securities in a basket of European equity securities			82,260
Gross unrealized depreciation on Total Return Swap Agreements								$	156,338

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, 2015

(a)	Non-income producing security.
(b)	For federal income tax purposes, the aggregate cost was $174,032,909, aggregate gross unrealized appreciation was $1,446,634, aggregate gross unrealized depreciation was $4,297,318, and the net unrealized depreciation was $2,850,684.
(c)	The Portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts and swap agreements.

Abbreviations:

ETF	—	Exchange-Traded Fund
ETN	—	Exchange-Traded Note
EUR	—	Euro
GSC	—	Goldman Sachs International
LIBOR	—	London Interbank Offered Rate
SSB	—	State Street Bank and Trust Co.
USD	—	United States Dollar

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

Annual Report  9

The Lazard Funds, Inc. Statement of Assets and Liabilities

December 31, 2015	Lazard Capital Allocator Opportunistic Strategies Portfolio
ASSETS
Investments in securities, at value		$	171,182,225
Cash collateral due from broker			870,000
Receivables for:
Dividends			241,231
Investments sold			2,127
Total assets			172,295,583
LIABILITIES
Due to custodian			261,380
Payables for:
Management fees			138,184
Accrued distribution fees			161
Capital stock redeemed			20,114
Gross unrealized depreciation on:
Forward currency contracts			300,167
Swap agreements			156,338
Other accrued expenses and payables			68,696
Total liabilities			945,040
Net assets		$	171,350,543
NET ASSETS
Paid in capital		$	175,357,296
Distributions in excess of net investment income			(309,347	)
Accumulated net realized loss			(441,481	)
Net unrealized depreciation on:
Investments			(2,799,420	)
Forward currency contracts			(300,167	)
Swap agreements			(156,338	)
Net assets		$	171,350,543
Institutional Shares
Net assets		$	170,625,965
Shares of capital stock outstanding*			18,234,761
Net asset value, offering and redemption price per share		$	9.36
Open Shares
Net assets		$	724,578
Shares of capital stock outstanding*			77,778
Net asset value, offering and redemption price per share		$	9.32
Cost of investments in securities		$	173,981,645

* $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total.

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

10  Annual Report

The Lazard Funds, Inc. Statement of Operations

For the Year Ended December 31, 2015	Lazard Capital Allocator Opportunistic Strategies Portfolio
Investment Income
Income
Dividends		$	2,920,529
Expenses
Management fees (Note 3)			1,748,920
Administration fees			84,980
Professional services			77,636
Custodian fees			52,304
Registration fees			36,100
Shareholders’ reports			28,561
Shareholders’ services			27,489
Distribution fees (Open Shares)			14,884
Directors’ fees and expenses			10,121
Other			13,360
Total gross expenses			2,094,355
Management fees waived			(292,442	)
Total net expenses			1,801,913
Net investment income			1,118,616
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Forward Currency Contracts and Swap Agreements
Net realized gain on:
Investments			3,265,615
Foreign currency and forward currency contracts			25,483
Swap agreements			76,832
Total net realized gain on investments, foreign currency, forward currency contracts and swap agreements			3,367,930
Net change in unrealized depreciation on:
Investments			(9,984,780	)
Forward currency contracts			(300,167	)
Swap agreements			(566,090	)
Total net change in unrealized depreciation on investments, forward currency contracts and swap agreements			(10,851,037	)
Net realized and unrealized loss on investments, foreign currency, forward currency contracts and swap agreements			(7,483,107	)
Net decrease in net assets resulting from operations		$	(6,364,491	)

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 December 31, 2015			Year Ended December 31, 2014
Increase (Decrease) in Net Assets
Operations
Net investment income	$	1,118,616		$	729,169
Net realized gain on investments, foreign currency, forward currency contracts, options and swap agreements		3,367,930			14,990,239
Net change in unrealized depreciation on investments, foreign currency, forward currency contracts and swap agreements		(10,851,037	)		(7,053,884	)
Net increase (decrease) in net assets resulting from operations		(6,364,491	)		8,665,524
Distributions to shareholders
From net investment income
Institutional Shares		(537,708	)		(5,125,559	)
Open Shares		(287	)		(92,244	)
From net realized gains
Institutional Shares		(4,106,775	)		(7,156,671	)
Open Shares		(107,847	)		(144,846	)
Return of capital
Institutional Shares		(80,408	)		—
Open Shares		(43	)		—
Net decrease in net assets resulting from distributions		(4,833,068	)		(12,519,320	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		54,140,485			43,633,391
Open Shares		7,617,272			2,263,638
Net proceeds from reinvestment of distributions
Institutional Shares		4,523,591			11,844,026
Open Shares		107,963			229,550
Cost of shares redeemed
Institutional Shares		(62,815,108	)		(80,417,261	)
Open Shares		(10,467,007	)		(1,037,731	)
Net decrease in net assets from capital stock transactions		(6,892,804	)		(23,484,387	)
Redemption fees (Note 2(h))
Institutional Shares		1,433			558
Open Shares		—			5
Net increase in net assets from redemption fees		1,433			563
Total decrease in net assets		(18,088,930	)		(27,337,620	)
Net assets at beginning of year		189,439,473			216,777,093
Net assets at end of year*	$	171,350,543		$	189,439,473
*Includes distributions in excess of net investment income of	$	(309,347	)	$	(691,342	)
Shares issued and redeemed Institutional Shares
Shares outstanding at beginning of year		18,509,479			20,912,934
Shares sold		5,591,303			4,201,701
Shares issued to shareholders from reinvestment of distributions		486,397			1,173,839
Shares redeemed		(6,352,418	)		(7,778,995	)
Net decrease		(274,718	)		(2,403,455	)
Shares outstanding at end of year		18,234,761			18,509,479
Open Shares
Shares outstanding at beginning of year		394,279			255,504
Shares sold		752,866			217,360
Shares issued to shareholders from reinvestment of distributions		11,594			22,773
Shares redeemed		(1,080,961	)		(101,358	)
Net increase (decrease)		(316,501	)		138,775
Shares outstanding at end of year		77,778			394,279

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	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of year	$	10.02		$	10.24		$	10.03		$	9.26		$	9.96
Income (loss) from investment operations:
Net investment income (a)		0.07			0.04			0.09			0.11			0.12
Net realized and unrealized gain (loss)		(0.46	)		0.41			1.12			0.74			(0.45	)
Total from investment operations		(0.39	)		0.45			1.21			0.85			(0.33	)
Less distributions from:
Net investment income		(0.03	)		(0.28	)		(0.48	)		(0.08	)		(0.13	)
Net realized gains		(0.24	)		(0.39	)		(0.52	)		—			(0.24	)
Return of capital		—	(b)		—			—			—			—
Total distributions		(0.27	)		(0.67	)		(1.00	)		(0.08	)		(0.37	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	9.36		$	10.02		$	10.24		$	10.03		$	9.26
Total Return (c)		–3.80	%		4.40	%		12.22	%		9.16	%		–3.28	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	170,626		$	185,489		$	214,161		$	224,982		$	258,832
Ratios to average net assets:
Net expenses		1.02	%		1.02	%		1.02	%		1.02	%		1.02	%
Gross expenses		1.18	%		1.15	%		1.13	%		1.12	%		1.13	%
Net investment income		0.66	%		0.35	%		0.89	%		1.13	%		1.25	%
Portfolio turnover rate		255	%		265	%		193	%		139	%		155	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of year	$	10.02		$	10.24		$	10.03		$	9.26		$	9.97
Income (loss) from investment operations:
Net investment income (a)		0.01			0.01			0.06			0.07			0.08
Net realized and unrealized gain (loss)		(0.47	)		0.41			1.12			0.75			(0.45	)
Total from investment operations		(0.46	)		0.42			1.18			0.82			(0.37	)
Less distributions from:
Net investment income		—	(b)		(0.25	)		(0.45	)		(0.05	)		(0.10	)
Net realized gains		(0.24	)		(0.39	)		(0.52	)		—			(0.24	)
Return of capital		—	(b)		—			—			—			—
Total distributions		(0.24	)		(0.64	)		(0.97	)		(0.05	)		(0.34	)
Redemption fees		—			—	(b)		—			—			—	(b)
Net asset value, end of year	$	9.32		$	10.02		$	10.24		$	10.03		$	9.26
Total Return (c)		–4.51	%		4.10	%		11.90	%		8.84	%		–3.72	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	725		$	3,950		$	2,616		$	3,099		$	6,111
Ratios to average net assets:
Net expenses		1.32	%		1.32	%		1.32	%		1.32	%		1.32	%
Gross expenses		1.66	%		1.81	%		1.84	%		1.67	%		1.57	%
Net investment income		0.15	%		0.14	%		0.60	%		0.69	%		0.77	%
Portfolio turnover rate		255	%		265	%		193	%		139	%		155	%

(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, 2015

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 “1940 Act”), as an open-end management investment company. The Fund is comprised of thirty-five no-load portfolios (each referred to as a “Portfolio”), as follows: Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard US Small Cap Equity Growth Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Equity Concentrated Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Equity Advantage Portfolio (commenced investment operations on May 29, 2015), Lazard International Small Cap Equity Portfolio, Lazard Global Equity Select Portfolio, Lazard Global Strategic Equity Portfolio, Lazard Managed Equity Volatility Portfolio (commenced investment operations on May 29, 2015), Lazard Emerging Markets Equity Portfolio, Lazard Emerging Markets Core Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Advantage Portfolio (commenced investment operations on May 29, 2015), Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi Asset Portfolio, Lazard Emerging Markets Debt Portfolio, Lazard Explorer Total Return Portfolio, Lazard Emerging Markets Income Portfolio, Lazard US Corporate Income Portfolio, Lazard US Short Duration Fixed Income Portfolio, Lazard Global Fixed Income Portfolio, Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard Capital Allocator Opportunistic Strategies Portfolio, Lazard Global Dynamic Multi Asset Portfolio, Lazard Enhanced Opportunities Portfolio, Lazard Fundamental Long/Short Portfolio, and Lazard Master Alternatives Portfolio. All Portfolios, other than US Equity Concentrated, International Equity Concentrated, Emerging Markets Debt, Explorer Total Return, Emerging Markets Income, US Realty Equity, Global Realty Equity, Enhanced Opportunities and Fundamental Long/Short Portfolios, are operated as “diversified” funds, as defined in the 1940 Act. Global Dynamic Multi Asset Portfolio had not commenced operations as of December 31, 2015. This

report includes only the financial statements of Capital Allocator Opportunistic Strategies Portfolio. The financial statements of other Portfolios are presented separately.

Effective November 29, 2013, an R6 Share class was classified for each Portfolio. 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, 2015, 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 US Strategic Equity, International Equity, International Strategic Equity and Emerging Markets Equity Portfolios had issued R6 Shares.

2. Significant Accounting Policies

The accompanying financial statements are presented in conformity with GAAP. The Fund is an investment company and therefore applies specialized accounting guidance in Accounting Standards Codification Topic 946. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements:

(a) Valuation of Investments—Net asset value (“NAV”) per share for each class of each Portfolio is determined on each day the New York Stock Exchange (“NYSE”) is open for business, generally as of the close of regular session trading on the NYSE (normally 4:00 p.m. Eastern time, the “Regular Closing Time”). When trading on the NYSE is unexpectedly closed prior to the Regular Closing Time, or an earlier scheduled close (such as on certain days around holidays when the NYSE is scheduled to close before 4:00 p.m.), and remains closed through the time of the Regular Closing Time (or an earlier scheduled close), the NAV of each class of each Portfolio may nonetheless be calculated as of the Regular Closing Time (or an earlier scheduled close) if, in the judgment of the Investment Manager, there is sufficient trading in other markets between the unexpected close

14  Annual Report 

and the Regular Closing Time (or an earlier scheduled close) for securities for which the NYSE is usually considered the primary market. NAV per share is determined by dividing the value of the total assets of the Portfolio represented by such class, less all liabilities, by the total number of Portfolio shares of such class outstanding.

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 on each valuation date; securities not traded on the valuation date are valued at the most recent quoted bid price. The Fund values NASDAQ-traded securities at the NASDAQ Official Closing Price, which may not be the last reported sales price in certain instances. Exchange-traded options are valued at the last reported sales price on the exchange on which the contract is principally traded. Swap agreements, such as credit default and interest rate swap agreements and swap agreements with respect to equity securities, are valued by an independent pricing service. Forward currency contracts generally are valued using quotations from an independent pricing service. Investments in money market funds are valued at the fund’s NAV.

The Valuation Committee of the Investment Manager, which meets periodically 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.

If a significant event materially affecting the value of securities occurs between the close of the exchange or market on which the security is principally traded and the time when a Portfolio’s NAV is calculated, or when current market quotations otherwise are determined not to be readily available or reliable (including restricted or other illiquid securities such as certain

derivative instruments), such securities will be valued at their fair value as determined by, or in accordance with procedures approved by, the Board. Non-US securities may trade on days when a Portfolio is not open for business, thus affecting the value of 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 except for certain dividends from foreign securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Portfolio. 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.

Annual Report  15

The Portfolios do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in their market prices. Such fluctuations are included in net realized and unrealized gain (loss) on investments. Net realized gain (loss) on foreign currency and forward currency contracts represents net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.

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

The US dollar value of forward currency contracts is determined using quotations provided by an independent pricing service. Daily fluctuations in the value of such contracts are recorded as unrealized appreciation (depreciation) on forward currency contracts. When the contract is closed, a Portfolio records a realized gain (loss) equal to the difference between the value at the time it was opened and the value at the time it was closed.

(d) Swap Agreements—Swap agreements on equity securities involve commitments to pay interest in exchange for a market linked return based on a notional amount. The counterparty pays out the total return of the equity security or 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 security or basket of securities 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 generally 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. Once the interim payments are settled in cash, the net amount is recorded as realized gain (loss) on swap agreements in a Portfolio’s accompanying Statement of Operations, in addition to any realized gain (loss) recorded upon the termination of swap agreements.

During the year ended December 31, 2015, the average monthly notional exposure of swap agreements was approximately $13,000,000.

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

At December 31, 2015, the Portfolio had no unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains.

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, 2015, the Portfolio elected to defer such losses as follows:

Post October Capital Loss Deferral	Late Year Ordinary Loss Deferral
$390,218	$742,769

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 (2012-2014), or expected to be taken in the Portfolio’s 2015 tax returns.

16  Annual Report

(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 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. Differences in per share distributions, by class, are generally due to differences in class specific expenses.

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

Paid in Capital	Undistributed Net Investment Income	Accumulated Net Realized Loss
$(80,451)	$(118,175)	$198,626

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

Ordinary Income		Long-Term Capital Gain
2015	2014	2015	2014
$1,373,879	$8,673,781	$3,378,738	$3,845,539

In 2015, the Portfolio had return of capital distributions of $80,451.

At December 31, 2015, 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 Depreciation Including Foreign Currency and Derivatives
$(742,769)	$(390,218)	$(2,873,766)

(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 Portfolio may impose a 1.00% redemption fee (short-term trading fee) on Portfolio shares redeemed less than 30 days after such shares were acquired. The fees are retained by the Portfolio and are included as paid in capital on the Statement 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

The Fund, on behalf of the Portfolios, has entered into a 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 objectives 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 May 1, 2016 if annualized operating

Annual Report  17

expenses (exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Funds” and extraordinary expenses, and excluding shareholder redemption fees or other transaction fees) exceed 1.02% and 1.32% of average daily net assets for the Institutional Shares and Open Shares, respectively.

During the year ended December 31, 2015, the Investment Manager waived a portion of its management fees of $272,054 and $20,388 for the Institutional Shares and Open Shares, respectively.

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

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

Under a distribution and servicing plan adopted pursuant to Rule 12b-1 under the 1940 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.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2015, each Director who is not an affiliated person of the Investment Manager or any of its affiliates was 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 Fund Complex”), each a registered management investment company advised by the Investment Manager, and Lazard Alternative Emerging Markets 1099 Fund, a closed-end registered management investment company advised by an affiliate of the Investment Manager: (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. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Directors’ fees were allocated among the funds in the Lazard Fund Complex and Lazard Alternative Emerging Markets 1099 Fund at a rate of $5,000 per fund with the remainder allocated based upon each fund’s proportionate share of combined net assets. The Statement of Operations shows the Directors’ fee and expenses paid by the Portfolio.

5. Securities Transactions and Transactions with Affiliates

Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2015 were $339,618,957 and $335,945,618, respectively.

For the year ended December 31, 2015, 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

18  Annual Report

of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings was payable: from January 1, 2015 to June 28, 2015, at the higher of the Federal Funds rate or Overnight LIBOR rate plus 1.00%, and from June 29, 2015 to December 31, 2015, at the higher of the Federal Funds rate or One-Month LIBOR rate plus 1.00%, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.10% per annum fee from January 1, 2015 to June 28, 2015 and 0.20% per annum from June 29, 2015 to December 31, 2015 on the unused portion of the commitment, payable quarterly in arrears. The Fund has also agreed to pay an upfront fee of 0.05% of the committed line amount. During the year ended December 31, 2015, the Portfolio 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. The Portfolios’ investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies. 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 economies of countries with emerging markets may be based predominantly on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme debt burdens or volatile inflation rates. The securities markets of emerging market countries have historically been extremely volatile. These market conditions may continue or worsen. Significant devalua-

tion of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies. 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.

(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 market indexes. However, unlike ETFs and closed-end funds, ETNs are not registered investment companies and thus are not registered under the 1940 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 1940 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.

Annual Report  19

(c) Swap Agreements and Other Derivatives Risk—Swap agreements and other derivatives transactions, including those entered into for hedging purposes, may reduce returns or increase volatility, perhaps substantially. Over-the-counter swap agreements, forward currency contracts, over-the-counter options on securities (including options on ETFs and ETNs), indexes and currencies and other over-the-counter derivatives transactions are subject to the risk of default by the counterparty and can be illiquid. These derivatives transactions, as well as the exchange-traded futures and options in which the Portfolio may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related security, interest rate, index, commodity, currency or other reference asset. As such, a small investment could have a potentially large impact on the Portfolio’s performance. Use of derivatives transactions, even when entered into for hedging purposes, may cause the Portfolio to experience losses greater than if the Portfolio had not engaged in such transactions.

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.

20  Annual Report

The following table summarizes the valuation of the Portfolio’s investments by each fair value hierarchy level as of December 31, 2015:

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, 2015
Assets
Exchange-Traded Note	$	3,495,900	$	—		$	—	$	3,495,900
Exchange-Traded Funds		116,895,332		—			—		116,895,332
Closed-End Management Investment Company		8,713,804		—			—		8,713,804
Short-Term Investment		42,077,189		—			—		42,077,189
Total	$	171,182,225	$	—		$	—	$	171,182,225
Liabilities:
Other Financial Instruments*
Forward Currency Contracts	$	—	$	(300,167	)	$	—	$	(300,167	)
Total Return Swap Agreements		—		(156,338	)		—		(156,338	)
Total	$	—	$	(456,505	)	$	—	$	(456,505	)

* 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, 2015.

For further information regarding security characteristics see Portfolio of Investments.

10. Derivative Instruments

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

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

A Portfolio enters into swap agreements in an attempt to obtain a particular exposure 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 exposure.

During the year ended December 31, 2015, the notional amounts of purchases and sales of forward currency contracts were $32,091,167 and $56,035,553, respectively, with average monthly notional exposure of approximately $27,200,000.

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2015:

	Fair Value
Liability Derivatives
Equity Risk:
Gross unrealized depreciation on total return swap agreements	$	156,338
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	300,167

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2015 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Equity Risk:
Net realized gain on total return swap agreements	$	76,832
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	42,328
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Equity Risk:
Net change in unrealized depreciation on total return swap agreements	$	(566,090	)
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(300,167	)

Annual Report  21

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

As of December 31, 2015, the Portfolio holds derivative instruments that are eligible for offset in the Statement of Assets and Liabilities and are subject to master net-

ting 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, 2015:

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		$	300,167	$	—		$	300,167
Total Return Swap Agreements			156,338		—			156,338
Total		$	456,505	$	—		$	456,505

				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 (a)			Net Amounts
Goldman Sachs International		$	156,338	$	—	$	(156,338	)	$	—
State Street Bank and Trust Co.			300,167		—		—			300,167
Total		$	456,505	$	—	$	(156,338	)	$	300,167

(a) Collateral amounts disclosed in the table above may be adjusted due to the requirement to limit collateral amounts to avoid the effect of over-collateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein.

11. Subsequent Events

Management has evaluated subsequent events affecting the Fund through the issuance of the financial state-

ments and has determined that there were no subsequent events that required adjustment or disclosure.

22  Annual Report

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

To the Board of Directors of The Lazard Funds, Inc. and Shareholders of Lazard Capital Allocator Opportunistic Strategies Portfolio:

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 “Funds”) as of December 31, 2015, and the related statement of operations for the year then ended and the statements of changes in net assets and the financial highlights for each of the two years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for each of the three years in the period ended December 31, 2013 were audited by other auditors whose report, dated February 28, 2014, expressed an unqualified opinion on those financial highlights.

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 Portfolio 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 Portfolio’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, 2015, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits 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, 2015, the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for each of the two years in 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 29, 2016

Annual Report  23

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 (62)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012)
		Cornell Law School, Visiting Professor of Practice (2015 – present); previously, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)
Kenneth S. Davidson (70)	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 (53)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
		TIAA-CREF Funds (65 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 (44)	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)
Richard Reiss, Jr. (71)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		Resource Americas, Inc., a real estate management company, Director (2016 – present)
		O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (68)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

24  Annual Report

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)
Interested Directors(4):
Charles L. Carroll (55)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (55)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present)
		Lazard Ltd, Vice Chairman and Director (2010 – present)

(1)	The address of each Director of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each Director serves as a Director for each of the funds in the Lazard Fund Complex (comprised of, as of January 31, 2016, 41 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 funds in the Lazard Fund Complex.
(3)	“Independent Directors” are not “interested persons” (as defined in the 1940 Act) of the Fund.
(4)	Messrs. Bhutani and Carroll are “interested persons” (as defined in the 1940 Act) of the Fund because of their positions with the Investment Manager.

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

Annual Report  25

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 (43)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Stephen St. Clair (57)	Treasurer (May 2003)	Vice President of the Investment Manager
Mark R. Anderson (45)	Chief Compliance Officer (September 2014)	Director and Chief Compliance Officer 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 (40)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) and Director of Legal Affairs (since July 2015) of the Investment Manager
Shari L. Soloway (34)	Assistant Secretary (November 2015)	Senior Vice President, Legal and Compliance, of the Investment Manager (since September 2015)
		Vice President and Associate General Counsel of GE Asset Management (July 2011 – September 2015)
		Associate at Clifford Chance US LLP (2006 – July 2011)
Cesar A. Trelles (41)	Assistant Treasurer (December 2004)	Vice President of the Investment Manager

(1)	The address of each officer of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each officer serves for an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation or removal. Each officer serves in the same capacity for the other funds in the Lazard Fund Complex.
(3)	In addition to Charles L. Carroll, President, whose information is included in the Interested Directors section.

26  Annual Report

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

Tax Information

Year Ended December 31, 2015

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2015:

Of the dividends paid by the Portfolio, none are qualified dividend income.

Of the dividends paid by the Portfolio, 2.90% of the dividends qualify for the dividends received deduction available to corporate shareholders.

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

Proxy Voting

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

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

Form N-Q

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

Annual Report  27

NOTES

NOTES

NOTES

The Lazard Funds, Inc.

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

Investment Manager

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

Distributor

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

Custodian

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

Transfer Agent and Dividend Disbursing Agent

Boston Financial Data Services, Inc.
P.O. Box 8514
Boston, Massachusetts 02266-8514
Telephone: 800-986-3455

Independent Registered Public Accounting Firm

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

Legal Counsel

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

 

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

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

LZDPS030  

Lazard Funds Annual Report

December 31, 2015

Emerging Market Funds

Lazard Emerging Markets Equity Portfolio

Lazard Emerging Markets Core Equity Portfolio

Lazard Developing Markets Equity Portfolio

Lazard Emerging Markets Equity Advantage Portfolio

Lazard Emerging Markets Equity Blend Portfolio

Lazard Emerging Markets Multi Asset Portfolio

Lazard Emerging Markets Debt Portfolio

Lazard Explorer Total Return Portfolio

Lazard Emerging Markets Income Portfolio

PRIVACY NOTICE Revised September 30, 2015

FACTS	What does Lazard do with your personal information?
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Questions? Call 800-823-6300 or go to http://www.LazardNet.com  

Who we are
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Other important information
Lazard Asset Management (Canada), Inc. does not disclose any non-public personal information about its customers or former customers to any third party, except as permitted by or required by any applicable law, including the laws of the United States and Canada.

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
9	Performance Overviews
18	Information About Your Portfolio’s Expenses
21	Portfolio Holdings Presented by Sector and Region
22	Portfolios of Investments
22	Lazard Emerging Markets Equity Portfolio
24	Lazard Emerging Markets Core Equity Portfolio
26	Lazard Developing Markets Equity Portfolio
28	Lazard Emerging Markets Equity Advantage Portfolio
32	Lazard Emerging Markets Equity Blend Portfolio
35	Lazard Emerging Markets Multi Asset Portfolio
46	Lazard Emerging Markets Debt Portfolio
52	Lazard Explorer Total Return Portfolio
58	Lazard Emerging Markets Income Portfolio
61	Notes to Portfolios of Investments
66	Statements of Assets and Liabilities
68	Statements of Operations
70	Statements of Changes in Net Assets
74	Financial Highlights
84	Notes to Financial Statements
106	Report of Independent Registered Public Accounting Firm
107	Board of Directors and Officers Information
110	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 2015, global equity market volatility increased due to the prospect of a debt default by Greece, uncertain global monetary policy, and oil price instability. In the US, markets rose modestly as the labor market improved and corporate earnings generally exceeded expectations. Japanese equities extended their impressive streak as Abenomics reforms began to pay dividends. In Europe, the economic recovery continued, but investor enthusiasm remained tepid as countries in the region made mixed progress. Meanwhile, emerging markets assets recorded another difficult year due to economic and political challenges and uncertainty about the possibility of interest rate increases in the US.

Interest rates diverged around the world after the US Federal Reserve announced its highly anticipated rate hike on December 16, and the US yield curve flattened as shorter-maturity yields rose slightly more than those with longer maturities. Currencies were volatile in 2015 and the US dollar strengthened against most of its global counterparts. Investor enthusiasm for European bonds with very low or negative yields waned as the effects of European Central Bank bond repurchases began to fade.

At Lazard Asset Management, we remain focused on active management and are committed to responsibly pursuing the Portfolios’ investment objectives so that you, a valued shareholder in Lazard Funds, achieve your financial goals. As the investment landscape changes, we endeavor to provide suitable portfolio solutions for investors. With this in mind, we launched three new quantitative mutual funds in 2015, namely the Lazard International Equity Advantage Portfolio, the Lazard Managed Equity Volatility Portfolio, and the Lazard Emerging Markets Equity Advantage Portfolio.

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

Emerging Markets Equities, Debt, and Currency

With high economic uncertainty and worries about the possibility of interest rate increases in the US, shares in the emerging markets experienced another very difficult year in 2015. This resulted in a third consecutive year of significant underperformance compared with developed markets. The MSCI Emerging Markets^® Index (the “EM Index”) fell by 14.9%, as measured in US dollar terms. Latin America was by far the worst-performing region, declining by over 30% in 2015. Asian and European emerging markets performed less poorly, all but two countries recorded negative returns. In general, markets performed reasonably well in the first half of the year and then plummeted in the third quarter and, to a lesser degree, in the fourth quarter. Because of the concerns over global economic growth and commodity price declines, economically sensitive shares tended to considerably underperform more defensive areas. Also noteworthy, the US Federal Reserve decided to begin raising short-term US interest rates at the end of the year, the first increase in nearly a decade.

The severe weakness in commodity and, particularly, oil prices throughout the year resulted in large declines in share prices in Colombia, Brazil, and Peru. Brazil’s very public investigation into fraud at the state-controlled oil company Petrobras caused impeachment procedures against President Dilma Roussef, and undermined support for Finance Minister Joaquim Levy, thereby dramatically pressuring the real. Weakness in the relatively more stable and less oil-dependent economies of Chile and Mexico was considerably less severe.

South African equities were hit by weak commodity prices, as well as President Zuma’s decision, in December to replace Finance Minister Nhlanhla Nene with the significantly less experienced David van Rooyen. Although he ultimately selected Pravin Gordhan, a previous Finance Minister, it illustrated political miscalculations throughout the year in the asset class. These miscalculations also occurred in Turkey, a market which should have benefited from lower oil prices. However, President RecepTayip Erdogan’s very public comments at the beginning of the year on interest rates undermined the central bank and the currency.

Political issues over elections and Kurdish groups further unsettled markets over the course of the year. Greece continued to be highly volatile throughout the year as the newly-elected Syriza party negotiated its financial situation with the European Union. As a result of this uncertainty, it was the worst-performing country over the year. Russian shares were relatively good performers following a very weak year in 2014, mainly because of a cease-fire with Ukraine and despite weak oil prices.

China continued to be a very critical market in 2015, with China A-shares as well as Hong Kong-listed H-shares, rising significantly through the first half of the year. When MSCI decided not to immediately include China A-shares in the EM Index, Chinese shares tumbled. The authorities tried, somewhat in vain, to stabilize the declines through interest rate and bank reserve requirement declines as well as by raising minimum equity levels for pension plans. The economic slowdown and political disagreements in Indonesia depressed that market, with a particular decline in the rupiah in the third quarter. The collapse in oil prices and scandal concerning Prime Minister Najib Razak over the 1MDB investment fund in Malaysia, had the effect of significantly reducing share prices there. Thai stock prices were pressured by a slowing economy and worsening asset quality in the banking system.

While performance of all sectors was negative for the year, by sector, the materials, utilities, telecom services, energy, and financials sectors performed especially poorly. Consumer staples, information technology, and health care were relatively better performing sectors.

Lazard Emerging Markets Equity Portfolio

For the year ended December 31, 2015, the Lazard Emerging Markets Equity Portfolio’s Institutional Shares posted a total return of -20.16%, while Open Shares posted a total return of -20.33%, as compared with the -14.92% return for the EM Index. The R6 Shares posted a total return of -20.50% for the period since inception on January 19, 2015 through December 31, 2015, compared with the -15.04% return for the EM Index for the same period.

Annual Report  3

Shares of NetEase, a Chinese online gaming and internet portal company, experienced continued strength with its hit mobile games. The company also has a strong pipeline of new games. Sberbank, a Russian bank, rose after reporting better-than-expected earnings and positive guidance for credit costs. OTP Bank, a Hungarian bank, benefited from improving returns in Hungary and Bulgaria, as well as news of a reduction of the special banking tax in 2016. KT&G, a South Korean tobacco company, reported better-than-expected results with gains on tobacco sales and higher-than-expected average-selling-prices. Kimberly-Clark de Mexico, a Mexican distributor of sanitary products, posted better-than-expected results driven by improved pricing. In addition, stock selection in the telecom sector helped performance.

In contrast, Banco do Brasil, BB Seguridade, and Cielo, respectively a Brazilian bank, insurance company, and credit card processing company respectively, all experienced share price weakness on the back of macroeconomic concerns, with declines in consensus GDP growth and a weakening real. Punjab National Bank, an Indian bank, declined on the back of continued pressure on asset quality and lower levels of growth. SK Hynix, a South Korean semiconductor manufacturer, has been hurt by weaker dynamic access random memory pricing due to a sluggish personal computer market. Stock selection in the energy, financials, industrials, and consumer discretionary sectors, and in India hurt performance. In addition, a higher-than-index exposure to Brazil detracted from performance.

Lazard Emerging Markets Core Equity Portfolio

For the year ended December 31, 2015, the Lazard Emerging Markets Core Equity Portfolio’s Institutional Shares posted a total return of -10.36%, while Open Shares posted a total return of -10.81%, as compared with the -14.92% return for the EM Index.

Security selection was positive in the industrials, consumer staples, financials, and telecom services sectors, as well as in China, Mexico, and Taiwan. NetEase, a Chinese developer of online games and services, climbed on better-than-expected earnings driven by continued success in its mobile game launches and inclusion of its shares in the EM Index. Eclat Textile, a

fabric and garment original equipment manufacturer/original design manufacturer in Taiwan, outperformed due their strong second-quarter results as well as optimism on future order outlook from its key customers, such as Nike and Under Armour. HDFC Bank, India’s second-largest private sector lender by assets, outperformed as it continues to post strong current account and savings account growth, even as growth at its peers moderated. Gruma SAB, a Mexican producer of corn, wheat flour, and tortillas, outperformed as more than 70% of its second-quarter revenue came from outside Mexico, where the peso has fallen to a record low. China Railway Construction Corporation, China’s largest rail manufacturing company which was formed out of a merger in 2015, rose as it began to expand internationally, opening a new plant in the US that will assemble new cars for Boston’s subway system.

In contrast,Tencent Holdings, China’s largest and most used internet service portal, rose after announcing better results for the third quarter, driven by outperformance in gaming and advertising revenue. However, an underweight to Tencent detracted slightly from performance. SK Hynix, a South Korean semiconductor and memory component manufacturer, declined amid concerns over slowing growth globally and its impact on technology export markets. ICICI Bank, India’s largest private sector bank by assets, declined on concerns over competition as the central bank granted the approval of licenses for applicants seeking to open new banks. Kasikornbank, a Thailand-based provider of commercial and investment banking services, declined due to slowing loan growth and weaker asset quality. Ita’u Unibanco, a Brazilian private sector bank, detracted due to economic contraction, a weaker currency, and political uncertainty in the country. Security selection was negative in the health care and energy sectors, as well as in South Korea and India.

Lazard Developing Markets Equity Portfolio

For the year ended December 31, 2015, the Lazard Developing Markets Equity Portfolio’s Institutional Shares posted a total return of -12.84%, while Open Shares posted a total return of -13.11%, as compared with the -14.92% return for the EM Index.

4  Annual Report

Stock selection in the industrials, consumer staples, financials, health care, and consumer discretionary sectors, as well as in China, Russia,Turkey, India, and South Korea helped performance. Additionally, a lower-than-index exposure to the telecommunication services sector, and to South Africa and Malaysia, as well as a higher-than-index exposure to the health care and consumer discretionary sectors, and to Russia, China, and India, added value. Korea Aerospace Industries, a Korean defense company, outperformed due to strong new order flows and solid execution of existing projects. X5 Retail Group, a Russian food retailer, moved higher on the back of strong results showing organic growth momentum across formats. New Oriental Education & Technology, a Chinese company that develops and offers English learning services, outperformed on continued improvement in enrollment growth. Aurobindo Pharma, an Indian generics manufacturer, did well on the back of strong earnings growth. China State Construction International Holdings, a Chinese building and engineering services firm, rose on strong order growth.

Freeport-McMoRan, a global copper mining company, sold off on the correction in copper prices. Credicorp, a Peruvian bank, did poorly after MSCI proposed reclassifying Peru as a frontier market. Estacio Participacoes, a Brazilian private school operator, underperformed on the back of changes to a government-funded education program. Bancolombia, one of the largest banks in Colombia, was weaker after management said loan growth would be subdued over the next year. Gerdau, a Brazilian steel producer, continued to suffer from a challenging economic environment in Brazil. Stock selection in the materials and energy sectors as well as in Brazil detracted value. Lastly, a lower-than-index exposure to South Korea and a higher-than-index exposure to Turkey hurt performance.

New Fund Launched: Lazard Emerging Markets Equity Advantage Portfolio

For the period since inception on May 29, 2015 through December 31, 2015, the Lazard Emerging Markets Equity Advantage Portfolio’s Institutional Shares posted a total return of -17.97%, while Open Shares posted a total return of -18.13%, as compared with the -19.50% return for the EM Index.

In the difficult environment for emerging market equities, the Portfolio has defended against the large draw-down in equity prices. Favorable stock selection has provided an incremental return above the EM Index, helped largely by the holdings in the industrials and financial sectors. Stocks in the consumer discretionary sector were the only notable relative weakness. Taiwan Semiconductor, the largest single holding in the Portfolio during the period, declined only 3.8% during the period and provided the largest contribution to relative return. The declining growth in smartphone sales directly impacted this major supplier offset by the growth in the lower-end cell phones where they also manufacture components. Tipco Asphalt soared over 60% in the period as the company benefited from lower commodity prices and an escalation in infrastructure spending in Asia. The company forecasts that their sales will double in the next three years. Gentera, the Mexican regional bank, has reported solid loan growth benefiting from the improving Mexican economy. The company expects to increase their net interest income by nearly 20% in 2016, giving a boost to the stock during the period. Relative detractors from the Portfolio’s return during the period were all commodity based businesses that are suffering from the worldwide plunge in prices. Compañía de Minas Buenaventura, the Peruvian mining concern, fell sharply as production continues to fall. The company is struggling to remain profitable since present market prices are below production costs. China Hongqiao, the aluminum producer, has been aggressively curtailing capacity and has incurred a loss as they respond to declining prices. PTT Exploration and Production, based in Thailand, has declined due to the weak oil market as well as the challenges in the local market.

Lazard Emerging Markets Equity Blend Portfolio

For the year ended December 31, 2015, the Lazard Emerging Markets Equity Blend Portfolio’s Institutional Shares posted a total return of -12.74%, while Open Shares posted a total return of -12.77%, as compared with the -14.92% return for the EM Index.

The Portfolio is managed using various emerging markets equity strategies and considers various economic and other factors through quantitative and qualitative analysis.

Annual Report  5

Changes made to the market forecast during 2015 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 US, the euro zone, and Japan; fiscal policy in developed and emerging markets; geopolitical events and risks; and equity and fixed income valuations, along with other data.

For 2015, stock selection in the information technology, financials, consumer staples and telecom services sectors and a higher-than-index exposure to information technology added value, as did stock selection in China, Russia,Taiwan, India, and Thailand, higher-than-index exposures to Russia, China, and India and lower-than-index exposure to Thailand. Our exposure to small caps over the period also added value. In contrast, stock selection in the energy, consumer discretionary, and materials sectors detracted from performance, as did stock selection in Brazil and South Korea, higher-than-index exposure to Brazil, lower-than-index exposure to South Korea and out-of-index exposures to Argentina and Macau.

Lazard Emerging Markets Multi Asset Portfolio

For the year ended December 31, 2015, the Lazard Emerging Markets Multi Asset Portfolio’s Institutional Shares posted a total return of -11.69%, while Open Shares posted a total return of -11.96%, as compared with the -14.92% return for the EM Index.

The Portfolio is managed using a combination of emerging markets equity and fixed income strategies and considers various economic and other factors through quantitative and qualitative factors.

Changes made to the market forecast during 2015 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 US, the euro zone, and Japan; fiscal policy in developed and emerging markets; geopolitical events and risks; and equity and fixed income valuations, along with other data.

In 2015, stock selection in the financials, information technology, consumer staples, and telecom services sectors and higher-than-index exposure to the information technology sector added value, as did stock selection in China,Taiwan, Russia, and India, higher-than-index exposures to Chinese, Russian, and Indian equities and lower-than-index exposure to South African equities. Exposure to the local debt of Serbia and the local currencies of Egypt, Dominican Republic, and Hungary-these implemented via derivative instruments-also contributed, as did exposures to the external debt of Argentina and Ukraine. Our exposure to small cap equities also added value. In contrast, stock selection in the energy and consumer discretionary sectors detracted from performance, as did stock selection in South Korea and Brazil, lower-than-index exposures to South Korean equities, higher-than-index exposures to Brazilian and Turkish equities, out-of-index exposures to Macau and Argentinean equities, exposure to the local currencies of Russia, Mexico, Kazakhstan, Uganda, Colombia, and Malaysia-implemented via derivative instruments-external debt positions in Venezuela and Ecuador and hard currency corporate debt positions.

Lazard Emerging Markets Debt Portfolio

For the year ended December 31, 2015, the Lazard Emerging Markets Debt Portfolio’s Institutional Shares posted a total return of -8.55%, while Open Shares posted a total return of -8.64%, as compared with the -6.10% return for the blended 50% JPMorgan EMBI Global Diversified^® Index/50% JPMorgan GBI-EM Global Diversified^® Index (the “Global Diversified Index”).

From a top-down perspective, asset allocation within the Portfolio contributed to relative performance during the year. Throughout the first half of the year, the Portfolio was overweight external debt which significantly outperformed local debt. The Portfolio briefly held a tactical overweight to local currency debt in the third quarter based on our view that valuations already reflected significant negative news and that improving current accounts in certain emerging markets would help set the stage for local currency outperformance. However, these considerations were overwhelmed by concerns about a number of China-related issues, including the country’s slowing econ-

6   Annual Report

omy, the intent behind the People’s Bank of China’s renminbi devaluation, and the potential for a policy error by Chinese authorities. We subsequently returned the Portfolio to an overweight position in external debt as it became clear that none of the necessary near-term triggers to set off a local currency rally were in place. Local currency debt continued to underperform for the remainder of the year, which contributed to returns in the fourth quarter.

Overweight positions in African countries, including Côte d’Ivoire, Ghana, and Kenya detracted from performance. These countries underperformed amid the general risk-off environment and decline in commodity prices. The primary detractors from the Portfolio’s local currency allocation were overweight positions in the Mexican peso and the South African rand, which underperformed due to their high beta characteristics and high correlation to commodity prices. In local rates, the Portfolio’s overweight duration position in Brazil also weighed on performance. Brazilian rates underperformed due to the increasingly bleak political and economic situation in the country, including impeachment proceedings against the president, the ongoing Operación Lava Jato (Operation Car Wash) corruption investigation, and the most severe recession in decades.

Conversely, an overweight position in Argentina contributed to returns in the latter half of the year. Argentina was one of the best-performing countries in the index during this period due to positive sentiment surrounding the election of Mauricio Macri as president and hopes of significant economic reform.

The portfolio management team uses forward currency contracts, both opportunistically, for direct currency exposure, and defensively, for hedging purposes. For the year, the use of derivatives contributed positively to the Portfolio’s relative performance.

Lazard Explorer Total Return Portfolio

For the year ended December 31, 2015, the Lazard Explorer Total Return Portfolio’s Institutional Shares posted a total return of -5.13%, while Open Shares posted a total return of -5.42%, as compared with the -6.10% return for the Global Diversified Index.

Throughout the year, we were highly tactical in adjusting the Portfolio’s net exposure, which ranged from roughly 25% to 95% long. In general, the Portfolio’s net long exposure was focused on hard currency debt, which contributed positively to performance both on an absolute basis and relative to the blended index. However, a tactical move into local currency debt during the summer months detracted from absolute returns. Our decision to establish a modest net long local currency position was based on the view that valuations already reflected significant negative news, and improving current accounts in certain emerging markets would help set the stage for local currency outperformance. However, these considerations were overwhelmed by China-related concerns, including the country’s slowing economy, the intent behind the People’s Bank of China’s renminbi devaluation, and the potential for a policy error by Chinese authorities. We subsequently eliminated nearly all of the Portfolio’s local currency exposure due to a lack of near-term triggers to set off a local rally. The Portfolio’s net long position in emerging markets corporates also weighed on performance, especially early in the year. The Portfolio began the year with a number of high yield and commodity-sensitive corporates, whose poor performance in late 2014 continued into early 2015. Due to a negative outlook on commodities, we rotated the Portfolio into higher quality credits in more defensive sectors, including utilities and telecom services.

Meanwhile, the Portfolio’s absolute performance benefited from positions in dollar-denominated European sovereign debt. We maintained exposure to a number of countries, including Portugal, Slovenia, and Hungary, as we believed the European Central Bank would announce a larger-than-expected quantitative easing program early in the year. Longer term, we favored these countries due to their relatively lower risk compared to other emerging markets and our belief that the credit spreads of European Union members should converge over time. Also contributing to performance were the Portfolio’s positions in countries such as Argentina and Ukraine, which benefited from favorable outcomes from the presidential election in Argentina and the restructuring of Ukraine’s debt.

Annual Report  7

The portfolio management team uses forward currency contracts 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 contributed positively to the Portfolio’s relative performance.

Lazard Emerging Markets Income Portfolio

For the year ended December 31, 2015, the Lazard Emerging Markets Income Portfolio’s Institutional Shares posted a total return of -8.04 %, while Open Shares posted a total return of -8.31%, as compared with the -7.61% return for the JPMorgan Emerging Local Markets^® Index Plus.

The Portfolio’s best relative performance for the period was earned in Central Emerging Europe (Romania, Poland, Hungary, and the Czech Republic). We were predominantly underweight in all four countries through most of the year due to linkages with the euro and Eurozone, where monetary easing by the European Central Bank pressured the euro and euro-aligned currencies weaker throughout the year. Tactical security

selection in Hungarian and Romanian local debt also added incremental basis points. Underweights in Asia (Malaysia, Thailand, Taiwan, and Singapore) contributed 45 basis points (bps) as each of these currencies weakened during the period. Nearly half of the contribution was earned in Malaysia which has been one of the largest underweights since June due to the detrimental impact of lower oil on its current account.

Conversely, overweight Russia cost 83 bps of relative performance. The ruble weakened during the year as oil tumbled by 35%. We were positioned in Russia against underweights in other energy exporters such as Colombia and Malaysia, due to attractive yield and improving capital and current accounts. Overweight exposure to Mexico detracted 26 bps. Falling crude prices dampened investment in the energy sector, while the peso’s low yield and ample liquidity meant the peso was utilized as a proxy to hedge emerging market risk. Finally, overweight China detracted 23 bps. This position was a positive contributor until its surprise currency devaluation in August.

Notes to Investment Overviews:

Total 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. A period of less than one year is not annualized.

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

The views of the Investment Manager and the securities described in this report are as of December 31, 2015; these views and portfolio holdings may have changed subsequent to this date. Nothing herein should be construed as a recommendation to buy, sell, or hold a particular security. There is no assurance that the securities discussed herein will remain in a Portfolio at the time you receive this report, or that securities sold will not have been repurchased. The specific securities discussed may, in aggregate, represent only a small percentage of a Portfolio’s holdings. It should not be assumed that securities identified and discussed were, or will be, profitable, or that the investment decisions made in the future will be profitable, or equal the investment performance of the securities discussed herein.

The views and opinions expressed are provided for general information only, and do not constitute specific tax, legal, or investment advice to, or recommendations for, any person. There can be no guarantee as to the accuracy of any outlooks for markets, sectors and securities as discussed herein. You should read the Fund’s prospectus or each Portfolio’s summary prospectus for a more detailed discussion of each Portfolio’s investment objectives, strategies, risks and fees.

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*

Periods Ended December 31, 2015

	One	Five	Ten	Since
	Year	Years	Years	Inception†
Institutional Shares**	-20.16%	-5.24%	3.71%	5.94%
Open Shares**	-20.33%	-5.51%	3.39%	5.58%
R6 Shares**	N/A	N/A	N/A	-20.50%
EM Index	-14.92%	-4.81%	3.61%	4.57%
				(Institutional Shares)
				5.09%
				(Open Shares)
				-15.04%
				(R6 Shares)

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived by BFDS; without such waiver of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
	Performance results do not include adjustments made for financial reporting purposes in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and may differ from amounts reported in the financial highlights.
	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, Open Shares and R6 Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Institutional Shares was July 15, 1994, for the Open Shares was January 8, 1997 and for the R6 Shares was January 19, 2015.

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, 2015

	One	Since
	Year	Inception		†
Institutional Shares**	-10.36%		-6.21%
Open Shares**	-10.81%		-6.56%
EM Index	-14.92%		-9.36%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, 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, 2015

	One	Five	Since
	Year	Years	Inception		†
Institutional Shares**	-12.84%	-8.25%		1.85%
Open Shares**	-13.11%	-8.52%		1.54%
EM Index	-14.92%	-4.81%		2.56%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, 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 Advantage Portfolio

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

 

Total Returns*

Period Ended December 31, 2015

	Since
	Inception	†
Institutional Shares**	-17.97%
Open Shares**	-18.13%
EM Index	-19.50%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was May 29, 2015.

12   Annual Report

Lazard Emerging Markets Equity Blend Portfolio

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

 

Average Annual Total Returns*

Periods Ended December 31, 2015

	One	Five	Since
	Year	Years	Inception	†
Institutional Shares**	-12.74%	-5.82%	-1.41%
Open Shares**	-12.77%	-6.06%	-1.66%
EM Index	-14.92%	-4.81%	-0.31%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was May 28, 2010.

Annual Report   13

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, 2015

	One	Since
	Year	Inception	†
Institutional Shares**	-11.69%	-4.58%
Open Shares**	-11.96%	-4.89%
EM Index	-14.92%	-5.46%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was March 31, 2011.

14   Annual Report

Lazard Emerging Markets Debt Portfolio

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

 

Average Annual Total Returns*

Periods Ended December 31, 2015

	One	Since
	Year	Inception	†
Institutional Shares**	-8.55%	0.11%
Open Shares**	-8.64%	-0.16%
JPMorgan EMBI Global Diversified Index	1.18%	5.62%
JPMorgan GBI-EM Global Diversified Index	-14.92%	-3.58%
Global Diversified Index	-6.10%	1.22%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, 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   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, 2015

	One	Since
	Year	Inception	†
Institutional Shares**	-5.13%	-2.01%
Open Shares**	-5.42%	-2.29%
JPMorgan EMBI Global Diversified Index	1.18%	4.51%
JPMorgan GBI-EM Global Diversified Index	-14.92%	-9.16%
Global Diversified Index	-6.10%	-2.07%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, 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

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*

Average Annual Total Returns*

Periods Ended December 31, 2015

	One	Since
	Year	Inception	†
Institutional Shares**	-8.04%	-9.68%
Open Shares**	-8.31%	-9.96%
JPMorgan Emerging Local Markets Index Plus	-7.61%	-9.13%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, 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   17

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, 2015 through December 31, 2015 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 shareholder reports of other mutual 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.

18   Annual Report

Portfolio	Beginning Account Value 7/1/15		Ending Account Value 12/31/15		Expenses Paid During Period* 7/1/15 - 12/31/15		Annualized Expense Ratio During Period 7/1/15 - 12/31/15
Emerging Markets Equity
Institutional Shares
Actual	$	1,000.00	$	806.90		$5.01		1.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.66		$5.60		1.10	%
Open Shares
Actual	$	1,000.00	$	806.30		$6.15		1.35	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.40		$6.87		1.35	%
R6 Shares
Actual	$	1,000.00	$	807.20		$5.10		1.12	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.56		$5.70		1.12	%
Emerging Markets Core Equity
Institutional Shares
Actual	$	1,000.00	$	853.00		$6.07		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.65		$6.61		1.30	%
Open Shares
Actual	$	1,000.00	$	852.00		$7.47		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.14		$8.13		1.60	%
Developing Markets Equity
Institutional Shares
Actual	$	1,000.00	$	856.00		$5.61		1.20	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.16		$6.11		1.20	%
Open Shares
Actual	$	1,000.00	$	855.00		$7.34		1.57	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.29		$7.98		1.57	%
Emerging Markets Equity Advantage
Institutional Shares
Actual	$	1,000.00	$	844.70		$5.11		1.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.66		$5.60		1.10	%
Open Shares
Actual	$	1,000.00	$	843.20		$6.50		1.40	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.15		$7.12		1.40	%
Emerging Markets Equity Blend
Institutional Shares
Actual	$	1,000.00	$	857.20		$5.62		1.20	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.16		$6.11		1.20	%
Open Shares
Actual	$	1,000.00	$	858.60		$6.61		1.41	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.10		$7.17		1.41	%
Emerging Markets Multi Asset
Institutional Shares
Actual	$	1,000.00	$	885.20		$6.18		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.65		$6.61		1.30	%
Open Shares
Actual	$	1,000.00	$	883.40		$7.60		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.14		$8.13		1.60	%

Annual Report  19

Portfolio	Beginning Account Value 7/1/15		Ending Account Value 12/31/15		Expenses Paid During Period* 7/1/15 - 12/31/15		Annualized Expense Ratio During Period 7/1/15 - 12/31/15
Emerging Markets Debt
Institutional Shares
Actual	$	1,000.00	$	935.10		$4.88		1.00	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.16		$5.09		1.00	%
Open Shares
Actual	$	1,000.00	$	934.60		$6.34		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.65		$6.61		1.30	%
Explorer Total Return
Institutional Shares
Actual	$	1,000.00	$	965.80		$5.75		1.16	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.36		$5.90		1.16	%
Open Shares
Actual	$	1,000.00	$	964.40		$7.43		1.50	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.64		$7.63		1.50	%
Emerging Markets Income
Institutional Shares
Actual	$	1,000.00	$	928.40		$4.37		0.90	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.67		$4.58		0.90	%
Open Shares
Actual	$	1,000.00	$	927.10		$5.83		1.20	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.16		$6.11		1.20	%

* 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).

20  Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector and Region December 31, 2015

Sector*	Lazard Emerging Markets Equity Portfolio			Lazard Emerging Markets Core Equity Portfolio			Lazard Developing Markets Equity Portfolio			Lazard Emerging Markets Equity Advantage Portfolio			Lazard Emerging Markets Equity Blend Portfolio			Lazard Emerging Markets Multi Asset Portfolio
Consumer Discretionary		8.9	%		15.2	%		15.2	%		8.6	%		12.7	%		10.1	%
Consumer Staples		8.0			6.9			4.2			6.9			4.5			3.2
Energy		7.1			—			6.5			7.4			6.4			3.4
Financials		28.5			25.9			30.4			25.5			28.8			20.3
Health Care		—			3.9			7.1			3.0			3.1			2.0
Industrials		5.8			8.4			9.8			7.1			10.3			6.1
Information Technology		24.4			21.9			18.0			21.8			25.2			16.3
Materials		4.4			5.1			6.6			6.3			3.2			2.3
Telecommunication Services		11.4			5.0			—			6.6			5.4			4.0
Utilities		0.2			2.5			—			4.2			0.4			0.6
Sovereign Debt		—			—			—			—			—			16.3
US Treasury Securities		—			—			—			—			—			7.7
Short-Term Investments		1.3			5.2			2.2			2.6			—			7.7
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Region*	Lazard Emerging Markets Debt Portfolio			Lazard Explorer Total Return Portfolio			Lazard Emerging Markets Income Portfolio
Africa		11.4	%		13.6	%		—	%
Asia		20.7			9.0			0.4
Europe		33.2			30.6			9.6
North America		14.9			22.8			81.2
South America		18.6			13.9			3.8
Short-Term Investments		1.2			10.1			5.0
Total Investments		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

Annual Report  21

The Lazard Funds, Inc. Portfolios of Investments December 31, 2015

Description	Shares		Value
Lazard Emerging Markets Equity Portfolio
Common Stocks | 97.7%
Argentina | 0.7%
YPF SA Sponsored ADR		4,347,081	$	68,336,113
Brazil | 8.9%
Ambev SA ADR		29,576,540		131,911,368
Banco do Brasil SA		39,934,134		147,731,515
BB Seguridade Participacoes SA		20,242,100		123,788,624
CCR SA		32,446,134		102,220,966
CEMIG SA Sponsored ADR		12,115,346		18,173,019
Cielo SA		19,539,805		165,380,608
Localiza Rent a Car SA		8,173,507		51,053,887
Natura Cosmeticos SA		6,922,600		40,824,551
Vale SA Sponsored ADR		9,414,100		30,972,389
Via Varejo SA		11,287,600		9,208,741
				821,265,668
China | 14.0%
AAC Technologies Holdings, Inc.		11,347,500		73,481,779
Baidu, Inc. Sponsored ADR (a)		1,678,200		317,246,928
China Construction Bank Corp., Class H		536,801,220		364,420,707
China Shenhua Energy Co., Ltd., Class H		43,573,110		67,804,832
CNOOC, Ltd.		102,966,000		105,835,092
NetEase, Inc. ADR		1,656,604		300,242,909
Weichai Power Co., Ltd., Class H		57,549,000		63,238,042
				1,292,270,289
Egypt | 1.1%
Commercial International Bank Egypt SAE GDR		24,456,038		105,192,927
Hong Kong | 3.4%
China Mobile, Ltd. Sponsored ADR		4,800,704		270,423,657
Huabao International Holdings, Ltd.		127,346,000		46,274,132
				316,697,789
Hungary | 1.7%
OTP Bank Nyrt.		7,557,495		155,843,148

Description	Shares		Value
India | 10.7%
Axis Bank, Ltd.		26,963,374	$	182,162,551
Bajaj Auto, Ltd.		2,438,990		93,268,365
Bharat Heavy Electricals, Ltd.		23,730,934		60,427,603
HCL Technologies, Ltd.		10,701,674		138,488,390
Hero MotoCorp, Ltd.		3,378,411		136,791,926
Punjab National Bank		57,724,394		100,520,633
Tata Consultancy Services, Ltd.		7,364,315		269,512,974
				981,172,442
Indonesia | 7.4%
PT Astra International Tbk		234,526,500		100,786,373
PT Bank Mandiri (Persero) Tbk		230,255,130		152,849,782
PT Semen Indonesia (Persero) Tbk		107,647,400		87,806,824
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		5,704,255		253,268,922
PT United Tractors Tbk		71,102,084		86,401,419
				681,113,320
Macau | 0.6%
Wynn Macau, Ltd.		48,370,800		56,064,766
Malaysia | 0.7%
British American Tobacco Malaysia Berhad		4,623,500		60,346,788
Mexico | 2.7%
America Movil SAB de CV, Class L Sponsored ADR		4,509,400		63,402,164
Grupo Mexico SAB de CV, Series B		40,099,747		85,599,796
Kimberly-Clark de Mexico SAB de CV, Series A		42,350,795		98,809,102
				247,811,062
Pakistan | 2.1%
Habib Bank, Ltd.		40,908,300		78,091,634
Oil & Gas Development Co., Ltd.		37,613,749		42,081,975
Pakistan Petroleum, Ltd.		58,903,102		68,219,971
				188,393,580
Philippines | 1.4%
Philippine Long Distance Telephone Co. Sponsored ADR		3,102,750		132,642,562

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

22  Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Portfolio (concluded)
Russia | 8.2%
ALROSA PAO (a)		63,152,611	$	48,489,080
Gazprom PAO Sponsored ADR		32,869,932		121,848,345
Lukoil PJSC Sponsored ADR		4,206,448		134,962,723
Magnit PJSC Sponsored GDR		532,300		21,294,546
Magnit PJSC Sponsored GDR (b), (c)		1,211,865		48,741,210
MegaFon OAO GDR		825,494		9,599,761
MegaFon OAO GDR (b), (c)		4,619,460		53,816,709
Mobile TeleSystems PJSC Sponsored ADR		13,728,043		84,839,306
Sberbank of Russia PJSC (a)		169,417,851		235,630,074
				759,221,754
South Africa | 7.2%
Imperial Holdings, Ltd.		6,217,994		47,561,269
Nedbank Group, Ltd.		5,511,453		67,042,442
PPC, Ltd.		33,848,906		33,681,154
Sanlam, Ltd.		17,772,742		68,951,653
Shoprite Holdings, Ltd.		12,211,501		112,871,559
Standard Bank Group, Ltd.		9,875,608		72,168,389
The Bidvest Group, Ltd.		3,974,408		84,276,722
Vodacom Group, Ltd.		8,036,959		79,103,474
Woolworths Holdings, Ltd.		15,398,138		99,504,111
				665,160,773
South Korea | 14.4%
Coway Co., Ltd.		1,474,402		105,164,078
Hanwha Life Insurance Co., Ltd.		24,404,119		153,032,002
Hyundai Mobis Co., Ltd.		785,515		163,937,452
KB Financial Group, Inc.		4,778,603		134,259,932
KT&G Corp.		1,370,437		121,618,350
Samsung Electronics Co., Ltd.		271,726		290,157,609
Shinhan Financial Group Co., Ltd.		6,440,002		216,753,631
SK Hynix, Inc. (a)		5,504,868		142,117,548
				1,327,040,602

Description	Shares		Value
Taiwan | 5.8%
Hon Hai Precision Industry Co., Ltd.		41,045,120	$	100,388,741
Taiwan Semiconductor Manufacturing Co., Ltd.		99,393,284		428,889,601
				529,278,342
Thailand | 2.6%
CP All Public Co. Ltd. (b)		82,819,700		90,334,117
Kasikornbank Public Co. Ltd.		9,102,200		37,630,443
PTT Exploration & Production Public Co. Ltd. (b)		26,767,570		42,585,616
The Siam Cement Public Co. Ltd.		5,384,900		68,634,737
				239,184,913
Turkey | 4.1%
Akbank TAS		45,677,621		104,918,507
KOC Holding AS		22,646,033		84,860,860
Turkcell Iletisim Hizmetleri AS		27,822,366		94,368,717
Turkiye Is Bankasi AS, C Shares		60,153,963		94,865,444
				379,013,528
Total Common Stocks
(Identified cost $11,566,900,522)				9,006,050,366
Short-Term Investment | 1.3%
State Street Institutional Treasury Money Market Fund (Identified cost $116,040,061)		116,040,061		116,040,061
Total Investments | 99.0%
(Identified cost $11,682,940,583) (d)			$	9,122,090,427
Cash and Other Assets in Excess of Liabilities | 1.0%				93,879,699
Net Assets | 100.0%			$	9,215,970,126

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

Annual Report  23

Description	Shares		Value
Lazard Emerging Markets Core Equity Portfolio
Common Stocks | 93.8%
Brazil | 3.1%
Embraer SA Sponsored ADR		31,200	$	921,648
Klabin SA		219,960		1,297,851
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA		97,265		1,041,752
				3,261,251
China | 23.2%
Alibaba Group Holding, Ltd. Sponsored ADR (a)		21,000		1,706,670
Anhui Conch Cement Co., Ltd., Class H		307,500		818,837
Baidu, Inc. Sponsored ADR (a)		7,254		1,371,296
China Lesso Group Holdings, Ltd.		1,895,000		1,313,615
CT Environmental Group, Ltd.		4,322,000		1,428,838
ENN Energy Holdings, Ltd.		218,000		1,150,025
Industrial & Commercial Bank of China, Ltd., Class H		7,253,000		4,344,125
Lenovo Group, Ltd.		1,118,000		1,126,589
NetEase, Inc. ADR		15,400		2,791,096
PICC Property & Casualty Co., Ltd., Class H		955,180		1,882,741
Ping An Insurance (Group) Co. of China, Ltd., Class H		5 12,500		2,809,286
Sinotrans, Ltd., Class H		1,602,000		852,387
Tencent Holdings, Ltd.		63,800		1,246,246
Vipshop Holdings, Ltd. ADR (a)		98,205		1,499,590
				24,341,341
Hong Kong | 5.7%
China Mobile, Ltd. Sponsored ADR		58,600		3,300,938
Haier Electronics Group Co., Ltd.		669,000		1,347,106
Techtronic Industries Co., Ltd.		313,000		1,271,490
				5,919,534
India | 11.3%
Dr Reddy’s Laboratories, Ltd. ADR		36,433		1,686,483
HDFC Bank, Ltd. ADR		43,569		2,683,850
ICICI Bank, Ltd. Sponsored ADR		280,800		2,198,664
Motherson Sumi Systems, Ltd.		202,568		893,414
Sun Pharmaceutical Industries, Ltd.		108,309		1,333,318
Tata Motors, Ltd. Sponsored ADR (a)		62,757		1,849,449
UPL, Ltd.		177,825		1,165,714
				11,810,892

Description	Shares		Value
Indonesia | 1.1%
PT Bank Mandiri (Persero) Tbk		1,805,600	$	1,198,608
Mexico | 10.6%
Alsea SAB de CV		297,000		1,033,800
Arca Continental SAB de CV		220,800		1,341,237
Fibra Uno Administracion SA de CV REIT		453,800		1,000,311
Gruma SAB de CV, Class B		179,200		2,521,246
Grupo Aeroportuario del Pacifico SAB de CV ADR		18,000		1,589,040
Grupo Bimbo SAB de CV, Series A (a)		500,402		1,328,928
Grupo Financiero Banorte SAB de CV, Class O		239,300		1,316,292
Grupo Televisa SAB Sponsored ADR		34,800		946,908
				11,077,762
Peru | 0.8%
Credicorp, Ltd.		9,150		890,478
Philippines | 3.1%
BDO Unibank, Inc.		753,730		1,676,357
GT Capital Holdings, Inc.		55,335		1,551,014
				3,227,371
Russia | 0.6%
Magnit PJSC Sponsored GDR		14,981		600,198
South Africa | 3.6%
Mondi PLC		107,090		2,088,504
Naspers, Ltd., N Shares		12,460		1,703,597
				3,792,101
South Korea | 10.2%
Amorepacific Corp. (a)		4,181		1,468,370
Cuckoo Electronics Co., Ltd. (a)		4,587		891,102
Hotel Shilla Co., Ltd. (a)		18,950		1,239,903
KEPCO Plant Service & Engineering Co., Ltd. (a)		15,555		1,175,575
Samsung Electronics Co., Ltd.		2,823		3,014,489
SK Hynix, Inc. (a)		67,658		1,746,707
SK Telecom Co., Ltd. Sponsored ADR		55,000		1,108,250
				10,644,396

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

24  Annual Report

Description	Shares		Value
Lazard Emerging Markets Core Equity Portfolio (concluded)
Taiwan | 14.9%
Advanced Semiconductor Engineering, Inc. ADR		305,900	$	1,734,453
Delta Electronics, Inc.		172,669		810,381
Eclat Textile Co., Ltd.		148,156		2,040,323
Far EasTone Telecommunications Co., Ltd.		424,000		870,834
Hermes Microvision, Inc.		15,000		542,765
Hon Hai Precision Industry Co., Ltd.		686,000		1,677,828
Largan Precision Co., Ltd.		16,000		1,093,195
Mega Financial Holding Co., Ltd.		2,539,186		1,634,074
Merida Industry Co., Ltd.		223,800		1,202,508
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		177,849		4,046,065
				15,652,426
Thailand | 3.0%
Bangkok Bank Public Co. Ltd.		149,500		628,978
Bangkok Dusit Medical Services Public Co. Ltd., Class F (b)		1,669,989		1,034,897
Kasikornbank Public Co. Ltd.		349,100		1,443,254
				3,107,129
Turkey | 1.8%
TAV Havalimanlari Holding AS		176,770		1,102,419
Turk Traktor ve Ziraat Makineleri AS		32,674		779,222
				1,881,641

Description	Shares		Value
United Arab Emirates | 0.8%
Emaar Properties PJSC		559,636	$	862,421
Total Common Stocks
(Identified cost $105,874,381)				98,267,549
Preferred Stock | 0.9%
Brazil | 0.9%
Itau Unibanco Holding SA Sponsored ADR (Identified cost $1,184,191)		144,561		941,092
Short-Term Investment | 5.2%
State Street Institutional Treasury Money Market Fund (Identified cost $5,484,060)		5,484,060		5,484,060
Total Investments | 99.9%
(Identified cost $112,542,632) (d)			$	104,692,701
Cash and Other Assets in Excess of Liabilities | 0.1%				71,881
Net Assets | 100.0%			$	104,764,582

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

Annual Report  25

Description	Shares		Value
Lazard Developing Markets Equity Portfolio
Common Stocks | 97.1%
Argentina | 0.7%
YPF SA Sponsored ADR		158,020	$	2,484,074
Brazil | 3.7%
Cosan SA Industria e Comercio		346,200		2,192,971
Estacio Participacoes SA		1,096,500		3,836,870
Gerdau SA Sponsored ADR		2,458,350		2,950,020
Lojas Renner SA		446,000		1,919,164
Petroleo Brasileiro SA Sponsored ADR (a)		672,600		2,286,840
				13,185,865
Canada | 0.8%
First Quantum Minerals, Ltd.		781,530		2,925,725
China | 22.8%
AAC Technologies Holdings, Inc.		656,200		4,249,283
Agricultural Bank of China, Ltd., Class H		20,260,500		8,222,372
Anhui Conch Cement Co., Ltd., Class H		3,188,500		8,490,602
Baidu, Inc. Sponsored ADR (a)		39,050		7,382,012
China Construction Bank Corp., Class H		4,768,184		3,236,999
China Medical System Holdings, Ltd.		4,547,000		6,624,719
China Merchants Bank Co., Ltd., Class H		2,578,711		6,038,023
New Oriental Education & Technology Group, Inc. Sponsored ADR		266,614		8,363,681
Ping An Insurance (Group) Co. of China, Ltd., Class H		2,023,500		11,091,882
Tencent Holdings, Ltd.		410,300		8,014,649
Vipshop Holdings, Ltd. ADR (a)		251,034		3,833,289
Zhuzhou CSR Times Electric Co., Ltd., Class H		897,931		5,179,159
				80,726,670
Colombia | 2.5%
Bancolombia SA Sponsored ADR		217,042		5,805,874
Cemex Latam Holdings SA (a)		947,440		3,075,292
				8,881,166

Description	Shares		Value
Hong Kong | 8.1%
Brilliance China Automotive Holdings, Ltd.		1,955,395	$	2,448,902
China State Construction International Holdings, Ltd.		7,715,340		13,322,299
Melco Crown Entertainment, Ltd. ADR		151,200		2,540,160
SMI Holdings Group, Ltd.		8,892,000		1,052,823
Techtronic Industries Co., Ltd.		2,336,000		9,489,463
				28,853,647
India | 13.9%
Adani Ports & Special Economic Zone, Ltd.		893,968		3,499,326
Aurobindo Pharma, Ltd.		1,066,844		14,041,033
Glenmark Pharmaceuticals, Ltd.		336,105		4,647,580
HDFC Bank, Ltd. ADR		135,355		8,337,868
ICICI Bank, Ltd. Sponsored ADR		926,175		7,251,950
Reliance Industries, Ltd.		513,187		7,802,530
Shriram Transport Finance Co., Ltd.		294,680		3,817,106
				49,397,393
Indonesia | 2.0%
PT Bank Rakyat Indonesia (Persero) Tbk		8,792,900		7,187,113
Mexico | 3.0%
Grupo Financiero Banorte SAB de CV, Class O		1,942,157		10,683,019
Peru | 2.7%
Credicorp, Ltd.		96,345		9,376,295
Poland | 0.7%
Eurocash SA		207,978		2,562,410
Russia | 10.5%
Novatek OAO Sponsored GDR		76,341		6,261,268
Sberbank of Russia PJSC (a)		8,135,656		11,315,249
TMK OAO GDR		625,487		1,994,238
X5 Retail Group NV GDR (a)		515,176		9,764,772
Yandex NV Class A (a)		493,925		7,764,501
				37,100,028
South Africa | 2.3%
Petra Diamonds, Ltd.		2,082,457		2,692,541
Standard Bank Group, Ltd.		740,148		5,408,810
				8,101,351

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

26  Annual Report

Description	Shares		Value
Lazard Developing Markets Equity Portfolio (concluded)
South Korea | 9.3%
CJ CGV Co., Ltd. (a)		68,756	$	7,296,360
Hansae Co., Ltd. (a)		117,696		5,230,739
Hotel Shilla Co., Ltd. (a)		34,269		2,242,230
Korea Aerospace Industries, Ltd. (a)		64,632		4,270,640
Samlip General Foods Co., Ltd. (a)		11,235		2,628,887
Samsung Electronics Co., Ltd.		10,712		11,438,612
				33,107,468
Taiwan | 8.5%
Advanced Semiconductor Engineering, Inc.		5,092,000		5,820,279
Catcher Technology Co., Ltd.		632,000		5,291,566
Hiwin Technologies Corp.		501,505		1,964,961
Hota Industrial Manufacturing Co., Ltd.		908,817		3,322,407
Largan Precision Co., Ltd.		78,000		5,329,325
Silicon Motion Technology Corp. ADR		149,100		4,675,776
Taiwan Semiconductor Manufacturing Co., Ltd.		882,000		3,805,897
				30,210,211
Turkey | 4.7%
Aselsan Elektronik Sanayi Ve Ticaret AS		1,108,370		6,411,078
Emlak Konut Gayrimenkul Yatirim Ortakligi AS REIT		5,678,514		5,061,703
Ford Otomotiv Sanayi AS		238,131		2,472,122
Turkiye Garanti Bankasi AS		1,083,770		2,645,424
				16,590,327

Description	Shares		Value
United States | 0.9%
Freeport-McMoRan, Inc.		461,520	$	3,124,490
Total Common Stocks (Identified cost $394,495,018)				344,497,252
Preferred Stock | 0.7%
Brazil | 0.7%
Banco Bradesco SA ADR (Identified cost $5,930,978)		468,755		2,254,712
Short-Term Investment | 2.2%
State Street Institutional Treasury Money Market Fund (Identified cost $7,914,712)		7,914,712		7,914,712
Total Investments | 100.0% (Identified cost $408,340,708) (d)			$	354,666,676
Cash and Other Assets in Excess of Liabilities | 0.0%				24,600
Net Assets | 100.0%			$	354,691,276

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

Annual Report  27

Description	Shares		Value
Lazard Emerging Markets Equity Advantage Portfolio
Common Stocks | 94.1%
Brazil | 2.7%
Ambev SA ADR		5,400	$	24,084
BB Seguridade Participacoes SA		2,600		15,900
BM&FBovespa SA		1,700		4,651
Braskem SA Sponsored ADR		900		12,186
Itausa - Investimentos Itau SA		4,200		7,284
JBS SA Sponsored ADR		1,400		8,680
				72,785
Chile | 0.9%
Cia Cervecerias Unidas SA Sponsored ADR		500		10,830
Enersis SA Sponsored ADR		1,149		13,960
				24,790
China | 20.4%
Agricultural Bank of China, Ltd., Class H		32,000		12,987
Alibaba Group Holding, Ltd. Sponsored ADR (a)		400		32,508
Baidu, Inc. Sponsored ADR (a)		55		10,397
Bank of China, Ltd., Class H		27,000		11,950
Bank of Chongqing Co., Ltd., Class H		6,000		5,394
Boer Power Holdings, Ltd.		3,000		5,395
China Construction Bank Corp., Class H		124,000		84,180
China Lesso Group Holdings, Ltd.		10,000		6,932
China Life Insurance Co., Ltd., Class H		6,000		19,341
China Lilang, Ltd.		8,000		5,901
China Lodging Group, Ltd. Sponsored ADR		200		6,252
China Merchants Bank Co., Ltd., Class H		9,500		22,244
China Overseas Land & Investment, Ltd.		10,000		34,593
China Petroleum & Chemical Corp.		18,000		10,826
China Railway Construction Corp., Ltd., Class H		4,000		4,928
China Railway Group, Ltd., Class H		4,000		3,017
China Telecom Corp., Ltd. Class H		18,000		8,384
Chongqing Rural Commercial Bank Co., Ltd., Class H		8,000		4,817
CNOOC, Ltd.		26,000		26,725
Dongfeng Motor Group Co., Ltd., Class H		4,000		5,317
Great Wall Motor Co., Ltd. Class H		7,500		8,701
Huaneng Power International, Inc. Class H		6,000		5,152
Industrial & Commercial Bank of China, Ltd., Class H		45,000		26,952

Description	Shares		Value
Longfor Properties Co., Ltd.		3,000	$	4,450
New China Life Insurance Co., Ltd. Class H		1,600		6,711
New Oriental Education & Technology Group, Inc. Sponsored ADR		200		6,274
PetroChina Co., Ltd., Class H		10,000		6,591
PICC Property & Casualty Co., Ltd., Class H		4,000		7,884
Ping An Insurance (Group) Co. of China, Ltd., Class H		4,500		24,667
Shenzhou International Group Holdings, Ltd.		2,000		11,441
Tencent Holdings, Ltd.		4,300		83,995
The People’s Insurance Co. Group of China, Ltd., Class H		25,000		12,144
Tianneng Power International, Ltd. (a)		10,000		8,366
TravelSky Technology, Ltd. Class H		5,000		8,205
Zhuzhou CSR Times Electric Co., Ltd., Class H		1,000		5,768
Zijin Mining Group Co., Ltd. Class H		18,000		4,743
				554,132
Colombia | 0.6%
Almacenes Exito SA		2,618		11,135
Ecopetrol SA Sponsored ADR		900		6,309
				17,444
Egypt | 0.5%
Commercial International Bank Egypt SAE ADR		3,250		13,731
Greece | 0.4%
JUMBO SA (a)		616		6,487
Motor Oil (Hellas) Corinth Refineries SA		418		4,513
				11,000
Hong Kong | 4.3%
China Everbright, Ltd.		4,000		9,121
China Mobile, Ltd.		6,000		67,245
China Resources Land, Ltd.		4,000		11,537
China Unicom Hong Kong, Ltd.		8,000		9,711
Shimao Property Holdings, Ltd.		4,000		7,057
Sino Biopharmaceutical, Ltd.		6,000		5,409
Tongda Group Holdings, Ltd.		40,000		7,018
				117,098
Hungary | 1.8%
MOL Hungarian Oil & Gas Nyrt.		521		25,584
Richter Gedeon Nyrt.		1,155		21,865
				47,449

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

28  Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Advantage Portfolio (continued)
India | 6.3%
Axis Bank, Ltd. GDR		193	$	6,471
Cipla, Ltd. GDR (a)		668		6,560
Dr Reddy’s Laboratories, Ltd. ADR		400		18,516
HDFC Bank, Ltd. ADR		400		24,640
ICICI Bank, Ltd. Sponsored ADR		800		6,264
Infosys, Ltd. Sponsored ADR		2,600		43,550
Reliance Industries, Ltd. Sponsored GDR (c)		715		21,823
Tata Motors, Ltd. Sponsored ADR (a)		606		17,859
Tata Steel, Ltd. GDR		1,034		4,060
Wipro, Ltd. ADR		500		5,770
WNS Holdings, Ltd. ADR (a)		500		15,595
				171,108
Indonesia | 1.5%
PT Bank Mandiri (Persero) Tbk ADR		1,900		12,422
PT Bank Rakyat Indonesia (Persero) Tbk ADR		421		6,896
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		400		17,760
PT United Tractors Tbk		3,900		4,739
				41,817
Malaysia | 3.9%
Astro Malaysia Holdings Berhad		10,400		6,677
Cahya Mata Sarawak Berhad		4,000		4,775
Dialog Group Berhad		11,900		4,429
Inari Amertron Berhad		5,400		5,759
MISC Berhad		4,800		10,457
My EG Services Berhad		11,200		11,264
Tenaga Nasional Berhad Sponsored ADR		3,297		40,718
Top Glove Corp. Berhad		3,600		11,384
VS Industry Berhad		14,000		5,114
Westports Holdings Berhad		4,800		4,603
				105,180
Mexico | 4.7%
Alfa SAB de CV, Series A		4,500		8,911
America Movil SAB de CV, Series L		16,400		11,514
Controladora Vuela Cia de Aviacion SAB de CV ADR (a)		372		6,384
Fomento Economico Mexicano SAB de CV Sponsored ADR		100		9,235
Gentera SAB de CV		12,600		24,236
Kimberly-Clark de Mexico SAB de CV, Series A		10,100		23,564
Megacable Holdings SAB de CV		1,000		3,713

Description	Shares		Value
Nemak SAB de CV		5,500	$	7,439
Promotora y Operadora de Infraestructura SAB de CV (a)		1,700		20,016
Telesites SAB de CV (a)		820		535
Wal-Mart de Mexico SAB de CV		4,500		11,358
				126,905
Peru | 0.9%
Cia de Minas Buenaventura SAA ADR		1,200		5,136
Credicorp, Ltd.		200		19,464
				24,600
Philippines | 2.6%
Ayala Corp.		460		7,375
BDO Unibank, Inc.		11,110		24,709
DMCI Holdings, Inc.		26,600		7,777
Globe Telecom, Inc.		335		13,162
JG Summit Holdings, Inc.		8,770		13,604
Vista Land & Lifescapes, Inc.		39,400		4,321
				70,948
Poland | 1.9%
Enea SA		1,736		4,987
Energa SA		932		2,998
Polski Koncern Naftowy Orlen SA		533		9,158
Polskie Gornictwo Naftowe i Gazownictwo SA		19,963		26,107
Tauron Polska Energia SA		12,155		8,892
				52,142
Russia | 2.3%
Lukoil PJSC Sponsored ADR		289		9,259
MMC Norilsk Nickel PJSC ADR		603		7,596
Mobile TeleSystems PJSC Sponsored ADR		608		3,758
Rosneft Oil Co. OJSC GDR		1,125		3,900
Sberbank of Russia PJSC Sponsored ADR		2,974		17,347
Severstal PAO GDR		613		5,109
Tatneft PAO Sponsored ADR		536		14,082
				61,051
South Africa | 5.7%
AVI, Ltd.		811		4,056
Capitec Bank Holdings, Ltd.		297		10,330
Clicks Group, Ltd.		2,112		12,137
FirstRand, Ltd.		8,173		22,297
Hyosung Corp.		150		14,814
Mondi, Ltd.		261		5,176
Mr. Price Group, Ltd.		732		9,438
MTN Group, Ltd.		373		3,198
Naspers, Ltd., N Shares		241		32,951

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

Annual Report  29

Description	Shares		Value
Lazard Emerging Markets Equity Advantage Portfolio (continued)
Sasol, Ltd.		1,010	$	27,207
Standard Bank Group, Ltd.		453		3,310
Truworths International, Ltd.		766		4,506
Vodacom Group, Ltd.		489		4,813
				154,233
South Korea | 15.8%
Amorepacific Corp.		61		21,423
BGF Retail Co., Ltd. (a)		66		9,569
BNK Financial Group, Inc.		822		5,857
Coway Co., Ltd.		65		4,636
Dongbu Insurance Co., Ltd.		217		12,987
Hanwha Chemical Corp.		220		5,051
Hyundai Motor Co.		173		21,799
Hyundai Steel Co. Sponsored GDR (c)		300		12,780
IS Dongseo Co., Ltd. (a)		180		6,768
Kangwon Land, Inc.		256		8,333
KB Financial Group, Inc. ADR		400		11,148
KEPCO Plant Service & Engineering Co., Ltd.		112		8,465
Kia Motors Corp.		104		4,633
KIWOOM Securities Co., Ltd.		102		5,338
Korea Aerospace Industries, Ltd.		98		6,476
Korea Electric Power Corp. Sponsored ADR		1,600		33,872
Korea PetroChemical Ind Co., Ltd.		34		4,898
KT&G Corp. GDR (c)		700		31,193
LG Chem, Ltd.		38		10,495
LG Display Co., Ltd. ADR		1,100		11,484
LG Uplus Corp.		508		4,482
Lotte Chemical Corp.		52		10,622
Medy-Tox, Inc.		12		5,167
Samsung C&T Corp. (a)		41		4,842
Samsung Electronics Co., Ltd. GDR		223		118,451
Samsung Fire & Marine Insurance Co., Ltd.		45		11,689
Shinhan Financial Group Co., Ltd. ADR		300		10,077
SK Hynix, Inc. GDR (a)		400		10,490
SK Telecom Co., Ltd. Sponsored ADR		500		10,075
Woori Bank		781		5,847
				428,947
Taiwan | 11.9%
Advanced Semiconductor Engineering, Inc.		5,000		5,715
Catcher Technology Co., Ltd.		3,000		25,118
Chunghwa Telecom Co., Ltd. Sponsored ADR		400		12,012
E.Sun Financial Holding Co., Ltd. GDR		1,630		23,733

Description	Shares		Value
Eclat Textile Co., Ltd.		1,000	$	13,771
Elite Material Co., Ltd.		5,000		8,700
Far Eastern New Century Corp. GDR (b)		1,130		8,858
Feng TAY Enterprise Co., Ltd.		4,120		20,839
FLEXium Interconnect, Inc.		5,207		12,343
Grape King Bio, Ltd.		1,000		5,542
Hon Hai Precision Industry Co., Ltd. GDR		3,359		17,083
Hotai Motor Co., Ltd.		1,000		11,490
Ruentex Development Co., Ltd.		6,000		7,782
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		5,300		120,575
Voltronic Power Technology Corp.		1,050		15,603
Zhen Ding Technology Holding, Ltd.		6,000		13,805
				322,969
Thailand | 3.8%
Airports of Thailand Public Co. Ltd ADR		123		11,827
Bumrungrad Hospital Public Co. Ltd. ADR		172		10,085
Delta Electronics Thailand Public Co. Ltd. (b)		2,100		4,465
Kasikornbank Public Co. Ltd. ADR		332		5,453
Pruksa Real Estate Public Co. Ltd. ADR		543		8,123
PTT Exploration & Production Public Co. Ltd. (b)		2,700		4,296
PTT Global Chemical Public Co. Ltd. ADR (b)		734		5,099
Srisawad Power 1979 Public Co. Ltd. NVDR		3,800		5,008
The Siam Cement Public Co. Ltd.		2,400		30,590
Tipco Asphalt Public Co., Ltd. NVDR		16,200		18,043
				102,989
Turkey | 1.2%
Eregli Demir ve Celik Fabrikalari TAS ADR		1,424		7,415
Koza Altin Isletmeleri ADR		522		2,196
TAV Havalimanlari Holding AS ADR		372		9,319
Turk Hava Yollari AO ADR (a)		152		3,771
Turk Telekomunikasyon ADR		2,817		9,803
				32,504
Total Common Stocks (Identified cost $2,929,991)				2,553,822
Preferred Stocks | 0.9%
Brazil | 0.9%
Banco Bradesco SA ADR		1,634		7,859
Itau Unibanco Holding SA Sponsored ADR		2,600		16,926
Total Preferred Stocks (Identified cost $33,227)				24,785

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

30  Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Advantage Portfolio (concluded)
Warrant | 0.0%
Malaysia | 0.0%
VS Industry Berhad Expires 06/01/19 (b) (Identified cost $0)		3,500	$	0
Short-Term Investment | 2.6%
State Street Institutional Treasury Money Market Fund (Identified cost $69,875)		69,875		69,875

Description	Value
Total Investments | 97.6% (Identified cost $3,033,093) (d)	$	2,648,482
Cash and Other Assets in Excess of Liabilities | 2.4%		64,391
Net Assets | 100.0%	$	2,712,873

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

Annual Report  31

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio
Common Stocks | 98.7%
Argentina | 1.0%
YPF SA Sponsored ADR		187,862	$	2,953,191
Brazil | 5.4%
Ambev SA ADR		475,975		2,122,848
Banco ABC Brasil SA		350,051		768,188
Banco do Brasil SA		475,657		1,759,636
CCR SA		643,200		2,026,390
Cielo SA Sponsored ADR		338,296		2,811,240
Estacio Participacoes SA		528,600		1,849,676
Iochpe Maxion SA		323,300		1,007,097
Localiza Rent a Car SA		279,910		1,748,392
Natura Cosmeticos SA		115,295		679,928
Petroleo Brasileiro SA Sponsored ADR (a)		289,750		985,150
Tegma Gestao Logistica SA		221,845		262,011
				16,020,556
China | 21.4%
AAC Technologies Holdings, Inc.		525,140		3,400,592
Agricultural Bank of China, Ltd., Class H		11,695,000		4,746,212
Anhui Conch Cement Co., Ltd., Class H		1,157,500		3,082,287
Baidu, Inc. Sponsored ADR (a)		50,092		9,469,392
Boer Power Holdings, Ltd.		540,000		971,153
China Animal Healthcare, Ltd. (a)		1,886,000		0
China Construction Bank Corp., Class H		8,259,281		5,607,016
China Lesso Group Holdings, Ltd.		1,758,000		1,218,647
China Medical System Holdings, Ltd.		1,383,000		2,014,952
China Pioneer Pharma Holdings, Ltd.		2,081,000		748,473
China Shenhua Energy Co., Ltd., Class H		1,334,500		2,076,637
CNOOC, Ltd.		2,505,800		2,575,623
Cosmo Lady China Holdings Co., Ltd.		1,137,000		949,612
CT Environmental Group, Ltd.		3,260,801		1,078,010
Greatview Aseptic Packaging Co., Ltd.		2,109,000		955,900
NetEase, Inc. ADR		44,545		8,073,336
New Oriental Education & Technology Group, Inc. Sponsored ADR		107,500		3,372,275
Ping An Insurance (Group) Co. of China, Ltd., Class H		767,000		4,204,336
Tencent Holdings, Ltd.		202,800		3,961,421
Vipshop Holdings, Ltd. ADR (a)		151,870		2,319,055
Zhuzhou CSR Times Electric Co., Ltd., Class H		402,371		2,320,828
				63,145,757

Description	Shares		Value
Colombia | 0.8%
Bancolombia SA Sponsored ADR		90,345	$	2,416,729
Egypt | 0.7%
Commercial International Bank Egypt SAE GDR		493,853		2,124,213
Georgia | 0.5%
BGEO Group PLC		49,420		1,384,712
Hong Kong | 7.6%
Brilliance China Automotive Holdings, Ltd.		1,712,135		2,144,248
China Mobile, Ltd. Sponsored ADR		66,486		3,745,156
China State Construction International Holdings, Ltd.		3,384,504		5,844,120
Man Wah Holdings, Ltd.		1,481,200		1,734,062
Nexteer Automotive Group, Ltd.		979,000		1,081,507
Pacific Textiles Holdings, Ltd.		900,000		1,388,984
PAX Global Technology, Ltd.		1,313,000		1,343,322
Regina Miracle International Holdings, Ltd.		197,113		286,911
Techtronic Industries Co., Ltd.		903,000		3,668,230
Tongda Group Holdings, Ltd.		6,100,000		1,070,290
				22,306,830
Hungary | 1.0%
OTP Bank Nyrt.		138,804		2,862,278
India | 10.8%
Adani Ports & Special Economic Zone, Ltd.		448,097		1,754,020
Aurobindo Pharma, Ltd.		475,118		6,253,161
Axis Bank, Ltd.		978,329		6,609,518
Bajaj Auto, Ltd.		67,769		2,591,525
Balkrishna Industries, Ltd.		129,182		1,260,909
Dewan Housing Finance Corp., Ltd.		485,355		1,725,667
HCL Technologies, Ltd.		216,152		2,797,183
ICICI Bank, Ltd. Sponsored ADR		541,603		4,240,752
Reliance Industries, Ltd.		215,036		3,269,422
UPL, Ltd.		204,468		1,340,369
				31,842,526
Indonesia | 5.7%
PT Bank Mandiri (Persero) Tbk		5,042,800		3,347,551
PT Bank Rakyat Indonesia (Persero) Tbk		6,661,318		5,444,808
PT Pakuwon Jati Tbk		47,862,300		1,700,880
PT Telekomunikasi Indonesia (Persero)
Tbk Sponsored ADR		97,715		4,338,546
PT United Tractors Tbk		1,577,380		1,916,792
				16,748,577

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

32  Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio (continued)
Macau | 0.5%
Wynn Macau, Ltd. (a)		1,203,530	$	1,394,966
Malaysia | 0.3%
Berjaya Auto Berhad		1,962,020		978,043
Mexico | 4.7%
America Movil SAB de CV, Class L Sponsored ADR		85,645		1,204,169
Credito Real SAB de CV (a)		552,015		1,400,016
Grupo Financiero Banorte SAB de CV, Class O		610,100		3,355,913
Grupo Financiero Interacciones SA de CV, Class O		179,771		1,079,179
Grupo Mexico SAB de CV, Series B		657,201		1,402,908
Kimberly-Clark de Mexico SAB de CV, Series A		1,144,200		2,669,545
Nemak SAB de CV		804,700		1,088,373
Unifin Financiera SAPI de CV SOFOM ENR		496,805		1,538,742
				13,738,845
Peru | 1.0%
Credicorp, Ltd.		30,916		3,008,745
Philippines | 0.5%
Philippine Long Distance Telephone Co. Sponsored ADR		38,102		1,628,860
Poland | 0.6%
Eurocash SA		146,630		1,806,567
Russia | 8.3%
Gazprom PAO Sponsored ADR		445,663		1,652,066
Lukoil PJSC Sponsored ADR		61,773		2,006,696
MegaFon OAO GDR		8,709		101,278
MegaFon OAO GDR (b), (c)		102,868		1,198,412
Mobile TeleSystems PJSC Sponsored ADR		245,100		1,514,718
Novatek OAO Sponsored GDR		36,652		3,004,594
Sberbank of Russia PJSC (a)		3,345,136		4,652,489
Sberbank of Russia PJSC Sponsored ADR		575,777		3,333,749
X5 Retail Group NV GDR (a)		206,474		3,913,493
Yandex NV Class A (a)		201,165		3,162,314
				24,539,809

Description	Shares		Value
South Africa | 0.9%
Standard Bank Group, Ltd.		256,151	$	1,871,885
Sun International, Ltd.		126,062		756,170
				2,628,055
South Korea | 9.7%
Eugene Technology Co., Ltd.		115,118		1,265,265
Fila Korea, Ltd. (a)		15,416		1,235,187
Hanwha Life Insurance Co., Ltd. (a)		373,964		2,345,033
Hyundai Mobis Co., Ltd. (a)		17,462		3,644,330
Hyundai Wia Corp. (a)		13,158		1,242,880
Koh Young Technology, Inc. (a)		34,740		1,130,827
KT&G Corp. (a)		22,259		1,975,357
Samsung Electronics Co., Ltd.		8,579		9,160,927
Shinhan Financial Group Co., Ltd. (a)		101,639		3,420,903
SK Hynix, Inc. (a)		118,153		3,050,321
				28,471,030
Taiwan | 10.8%
Actron Technology Corp.		264,000		903,809
Advanced Semiconductor Engineering, Inc.		2,294,000		2,622,097
Catcher Technology Co., Ltd.		185,000		1,548,955
Chailease Holding Co., Ltd.		743,336		1,276,751
Chicony Electronics Co., Ltd.		660,452		1,443,384
Hon Hai Precision Industry Co., Ltd.		856,247		2,094,221
King Slide Works Co., Ltd.		114,000		1,476,733
Largan Precision Co., Ltd.		39,000		2,664,662
Macauto Industrial Co., Ltd.		215,293		1,087,566
Makalot Industrial Co., Ltd.		150,000		1,059,453
Radiant Opto-Electronics Corp.		400,270		908,627
Silergy Corp.		67,427		692,859
Sinmag Equipment Corp.		238,615		753,164
Sporton International, Inc.		249,590		1,523,830
Taiwan Semiconductor Manufacturing Co., Ltd.		2,154,157		9,295,352
Toung Loong Textile Manufacturing Co., Ltd.		377,000		1,082,440
Voltronic Power Technology Corp.		94,903		1,410,236
				31,844,139
Thailand | 0.9%
KCE Electronics Public Co. Ltd. (b)		829,000		1,612,617
Supalai Public Co. Ltd. (b)		1,940,300		981,338
				2,593,955

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

Annual Report  33

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio (concluded)
Turkey | 5.0%
Aselsan Elektronik Sanayi Ve Ticaret AS		479,323	$	2,772,519
Emlak Konut Gayrimenkul Yatirim Ortakligi AS REIT		1,757,421		1,566,526
KOC Holding AS ADR		165,267		3,113,630
Turkcell Iletisim Hizmetleri AS ADR		251,075		2,131,627
Turkiye Garanti Bankasi AS		711,672		1,737,153
Turkiye Is Bankasi AS, C Shares		1,327,435		2,093,423
Turkiye Sinai Kalkinma Bankasi AS		2,513,713		1,310,091
				14,724,969
United States | 0.6%
Freeport-McMoRan, Inc.		282,890		1,915,165
Total Common Stocks (Identified cost $334,038,830)				291,078,517

Description	Shares		Value
Preferred Stock | 0.1%
Brazil | 0.1%
Vale SA Sponsored ADR (Identified cost $2,486,254)		193,515	$	493,463
Short-Term Investment | 0.0%
State Street Institutional Treasury Money Market Fund (Identified cost $218)		218		218
Total Investments | 98.8% (Identified cost $336,525,302) (d)			$	291,572,198
Cash and Other Assets in Excess of Liabilities | 1.2%				3,392,499
Net Assets | 100.0%			$	294,964,697

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

34  Annual Report

Description	Shares		Value
Lazard Emerging Markets Multi Asset Portfolio
Common Stocks | 70.1%
Argentina | 0.6%
YPF SA Sponsored ADR		57,057	$	896,936
Brazil | 3.1%
Ambev SA ADR		159,300		710,478
Banco ABC Brasil SA		125,194		274,739
Banco do Brasil SA		143,745		531,767
CCR SA		191,100		602,057
Cielo SA Sponsored ADR		103,730		861,996
Estacio Participacoes SA		143,740		502,975
Iochpe Maxion SA		111,400		347,017
Localiza Rent a Car SA		94,838		592,383
Natura Cosmeticos SA		37,955		223,831
Petroleo Brasileiro SA Sponsored ADR (a)		78,940		268,396
Tegma Gestao Logistica SA		74,412		87,885
				5,003,524
China | 15.1%
AAC Technologies Holdings, Inc.		143,000		926,010
Agricultural Bank of China, Ltd., Class H		3,293,000		1,336,407
Anhui Conch Cement Co., Ltd., Class H		396,500		1,055,833
Baidu, Inc. Sponsored ADR (a)		18,460		3,489,678
Boer Power Holdings, Ltd.		183,000		329,113
China Animal Healthcare, Ltd. (a)		410,000		0
China Construction Bank Corp., Class H		2,468,065		1,675,507
China Lesso Group Holdings, Ltd.		597,775		414,378
China Medical System Holdings, Ltd.		377,000		549,267
China Pioneer Pharma Holdings, Ltd.		717,000		257,883
China Shenhua Energy Co., Ltd., Class H		440,986		686,226
CNOOC, Ltd.		801,000		823,319
Cosmo Lady China Holdings Co., Ltd.		381,000		318,208
CT Environmental Group, Ltd.		2,813,536		930,145
Greatview Aseptic Packaging Co., Ltd.		685,000		310,475
Industrial & Commercial Bank of China,Ltd., Class H		2,121,000		1,270,356
Lenovo Group, Ltd.		400,000		403,073
NetEase, Inc. ADR		14,155		2,565,452
New Oriental Education & Technology Group, Inc. Sponsored ADR		29,297		919,047
PICC Property & Casualty Co., Ltd., Class H		320,000		630,747
Ping An Insurance (Group) Co. of China, Ltd., Class H		412,350		2,260,310

Description	Shares		Value
Tencent Holdings, Ltd.		86,000	$	1,679,892
Vipshop Holdings, Ltd. ADR (a)		73,225		1,118,146
Zhuzhou CSR Times Electric Co., Ltd., Class H		109,644		632,414
				24,581,886
Colombia | 0.4%
Bancolombia SA Sponsored ADR		24,747		661,982
Egypt | 0.4%
Commercial International Bank Egypt SAE GDR		154,952		666,496
Georgia | 0.3%
BGEO Group PLC		17,098		479,073
Hong Kong | 5.4%
Brilliance China Automotive Holdings, Ltd.		479,445		600,449
China Mobile, Ltd. Sponsored ADR		41,991		2,365,353
China State Construction International Holdings, Ltd.		924,125		1,595,713
Haier Electronics Group Co., Ltd.		241,000		485,280
Man Wah Holdings, Ltd.		496,400		581,143
Nexteer Automotive Group, Ltd.		332,000		366,762
Pacific Textiles Holdings, Ltd.		310,000		478,428
PAX Global Technology, Ltd.		441,000		451,184
Regina Miracle International Holdings, Ltd.		62,844		91,474
Techtronic Industries Co., Ltd.		345,500		1,403,514
Tongda Group Holdings, Ltd.		2,020,000		354,424
				8,773,724
Hungary | 0.5%
OTP Bank Nyrt.		39,892		822,613
India | 8.0%
Adani Ports & Special Economic Zone, Ltd.		123,728		484,318
Aurobindo Pharma, Ltd.		129,481		1,704,136
Axis Bank, Ltd.		297,078		2,007,037
Bajaj Auto, Ltd.		21,596		825,843
Balkrishna Industries, Ltd.		44,416		433,532
Dewan Housing Finance Corp., Ltd.		167,058		593,970
Dr Reddy’s Laboratories, Ltd. ADR		19,141		886,037
HCL Technologies, Ltd.		64,924		840,170
HDFC Bank, Ltd. ADR		33,377		2,056,023
ICICI Bank, Ltd. Sponsored ADR		149,551		1,170,984
Reliance Industries, Ltd.		58,903		895,565
Tata Motors, Ltd. Sponsored ADR (a)		22,257		655,914
UPL, Ltd.		69,275		454,125
				13,007,654

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

Annual Report   35

Description	Shares		Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
Indonesia | 3.3%
PT Bank Mandiri (Persero) Tbk		2,381,923	$	1,581,187
PT Bank Rakyat Indonesia (Persero) Tbk		1,719,300		1,405,316
PT Pakuwon Jati Tbk		15,648,160		556,088
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		31,192		1,384,925
PT United Tractors Tbk		423,015		514,037
				5,441,553
Macau | 0.3%
Wynn Macau, Ltd.		380,000		440,444
Malaysia | 0.2%
Berjaya Auto Berhad		674,660		336,310
Mexico | 4.6%
America Movil SAB de CV, Class L Sponsored ADR		29,620		416,457
Credito Real SAB de CV		208,220		528,086
Fibra Uno Administracion SA de CV REIT		229,304		505,455
Gruma SAB de CV, Class B		58,413		821,839
Grupo Aeroportuario del Pacifico SAB de CV ADR		4,555		402,116
Grupo Financiero Banorte SAB de CV, Class O		307,365		1,690,690
Grupo Financiero Interacciones SA de CV, Class O		62,787		376,915
Grupo Mexico SAB de CV, Series B		209,809		447,873
Grupo Televisa SAB Sponsored ADR		19,910		541,751
Kimberly-Clark de Mexico SAB de CV, Series A		381,435		889,930
Nemak SAB de CV		273,400		369,779
Unifin Financiera SAPI de CV SOFOM ENR		168,320		521,334
				7,512,225
Peru | 0.8%
Credicorp, Ltd.		12,977		1,262,922
Philippines | 0.9%
BDO Unibank, Inc.		389,859		867,078
Philippine Long Distance Telephone Co.Sponsored ADR		12,840		548,910
				1,415,988
Poland | 0.3%
Eurocash SA		37,950		467,566

Description	Shares		Value
Russia | 4.4%
Gazprom PAO Sponsored ADR		142,174	$	527,037
Lukoil PJSC Sponsored ADR		20,758		674,324
MegaFon OAO GDR		9,466		110,081
MegaFon OAO GDR (b), (c)		24,977		290,982
Mobile TeleSystems PJSC Sponsored ADR		80,610		498,170
Novatek OAO Sponsored GDR		9,999		819,663
Sberbank of Russia PJSC (a)		863,894		1,201,523
Sberbank of Russia PJSC Sponsored ADR		178,912		1,035,901
X5 Retail Group NV GDR (a)		59,174		1,121,598
Yandex NV Class A (a)		55,470		871,988
				7,151,267
South Africa | 1.9%
Mondi PLC		43,130		841,135
Naspers, Ltd., N Shares		9,636		1,317,485
Standard Bank Group, Ltd.		83,801		612,396
Sun International, Ltd.		43,344		259,995
				3,031,011
South Korea | 7.1%
Amorepacific Corp.		1,542		541,551
Eugene Technology Co., Ltd.		37,652		413,834
Fila Korea, Ltd.		4,906		393,087
Hanwha Life Insurance Co., Ltd.		125,376		786,201
Hotel Shilla Co., Ltd.		7,086		463,639
Hyundai Mobis Co., Ltd.		5,250		1,095,678
Hyundai Wia Corp.		4,239		400,408
KEPCO Plant Service & Engineering Co., Ltd.		5,159		389,893
Koh Young Technology, Inc.		11,571		376,649
KT&G Corp.		6,366		564,946
Samsung Electronics Co., Ltd.		3,033		3,238,733
Shinhan Financial Group Co., Ltd.		29,244		984,277
SK Hynix, Inc.		56,055		1,447,155
SK Telecom Co., Ltd. Sponsored ADR		22,944		462,322
				11,558,373
Taiwan | 8.4%
Actron Technology Corp.		89,000		304,693
Advanced Semiconductor Engineering, Inc.		626,000		715,533
Catcher Technology Co., Ltd.		51,000		427,009
Chailease Holding Co., Ltd.		252,280		433,315
Chicony Electronics Co., Ltd.		223,702		488,889
Delta Electronics, Inc.		42,100		197,586
Eclat Textile Co., Ltd.		50,796		699,535
Hon Hai Precision Industry Co., Ltd.		264,950		648,019
Hon Hai Precision Industry Co., Ltd. GDR		107,542		546,936
King Slide Works Co., Ltd.		39,000		505,198
Largan Precision Co., Ltd.		11,000		751,571
Macauto Industrial Co., Ltd.		70,865		357,979

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

36   Annual Report

Description	Shares		Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
Makalot Industrial Co., Ltd.		51,000	$	360,214
Merida Industry Co., Ltd.		81,000		435,224
Radiant Opto-Electronics Corp.		136,040		308,816
Silergy Corp.		22,814		234,430
Sinmag Equipment Corp.		82,334		259,879
Sporton International, Inc.		85,930		524,631
Taiwan Semiconductor Manufacturing Co., Ltd.		163,000		703,358
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		168,330		3,829,508
Toung Loong Textile Manufacturing Co., Ltd.		124,820		358,383
Voltronic Power Technology Corp.		32,100		476,998
				13,567,704
Thailand | 0.7%
Kasikornbank Public Co. Ltd.		95,620		395,313
KCE Electronics Public Co. Ltd. (b)		263,900		513,353
Supalai Public Co. Ltd. (b)		608,500		307,759
				1,216,425
Turkey | 2.9%
Aselsan Elektronik Sanayi Ve Ticaret AS		132,252		764,977
Emlak Konut Gayrimenkul Yatirim Ortakligi AS REIT		483,440		430,928
KOC Holding AS ADR		53,104		1,000,479
TAV Havalimanlari Holding AS		56,007		349,286
Turkcell Iletisim Hizmetleri AS ADR		81,727		693,862
Turkiye Garanti Bankasi AS		193,919		473,346
Turkiye Is Bankasi AS, C Shares		399,945		630,731
Turkiye Sinai Kalkinma Bankasi AS		828,993		432,052
				4,775,661
United Arab Emirates | 0.2%
Emaar Properties PJSC		223,230		344,006
United States | 0.3%
Freeport-McMoRan, Inc.		74,005		501,014
Total Common Stocks
(Identified cost $131,332,768)				113,916,357
Preferred Stock | 0.1%
Brazil | 0.1%
Vale SA Sponsored ADR (Identified cost $610,276)		63,610		162,206

Description	Security Currency	Principal Amount (000)		Value
Corporate Bonds | 0.3%
Bulgaria | 0.0%
ContourGlobal Power Holdings SA,
7.125%, 06/01/19 (c)	USD		25	$	23,812
China | 0.2%
BCP Singapore VI Cayman Financing Co., Ltd., 8.000%, 04/15/21	USD		80		64,550
Green Dragon Gas, Ltd., 10.000%, 11/20/17	USD		200		196,000
					260,550
South Africa | 0.1%
Petra Diamonds US Treasury PLC, 8.250%, 05/31/20 (c)	USD		200		167,000
Total Corporate Bonds (Identified cost $505,219)					451,362
Foreign Government Obligations | 16.5%
Angola | 0.5%
Republic of Angola, 9.500%, 11/12/25 (c)	USD		625		581,250
Republic of Angola Northern Lights III BV, 7.000%, 08/16/19	USD		234		227,344
					808,594
Argentina | 1.3%
Republic of Argentina: 8.750%, 06/02/17 (e)	USD		195		223,275
8.280%, 12/31/33 (e)	USD		1,080		1,244,204
2.500%, 12/31/38 (e)	USD		1,030		646,325
					2,113,804
Belize | 0.1%
Republic of Belize, 5.000%, 02/20/38	USD		316		229,100
Brazil | 0.8%
Brazil Letras do Tesouro Nacional, 0.000%, 01/01/19	BRL		1,450		231,414
Brazil NTN-B:
6.000%, 08/15/16	BRL		680		476,264
6.000%, 08/15/18	BRL		270		185,252

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

Annual Report   37

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
6.000%, 08/15/50	BRL		250	$	148,221
Brazil NTN-F, 10.000%, 01/01/18	BRL		1,370		312,272
					1,353,423
Colombia | 0.4%
Republic of Colombia:
2.625%, 03/15/23	USD		65		57,265
4.000%, 02/26/24	USD		150		143,250
4.500%, 01/28/26	USD		200		193,000
6.125%, 01/18/41	USD		155		150,350
5.625%, 02/26/44	USD		130		119,113
					662,978
Congo | 0.3%
Republic of Congo, 4.000%, 06/30/29 (f)	USD		577		463,143
Croatia | 0.4%
Croatia:
6.250%, 04/27/17	USD		50		51,900
6.750%, 11/05/19	USD		150		161,062
6.625%, 07/14/20	USD		50		53,663
5.500%, 04/04/23	USD		200		203,250
6.000%, 01/26/24	USD		210		218,977
					688,852
Dominican Republic | 0.4%
Dominican Republic:
7.500%, 05/06/21	USD		205		220,888
7.450%, 04/30/44	USD		285		288,562
6.850%, 01/27/45 (c)	USD		180		171,450
					680,900
Egypt | 0.3%
Arab Republic of Egypt:
5.875%, 06/11/25	USD		400		347,900
5.875%, 06/11/25 (c)	USD		145		126,114
					474,014
Ghana | 0.2%
Republic of Ghana:
7.875%, 08/07/23	USD		200		159,500
8.125%, 01/18/26	USD		200		157,500
					317,000

Description	Security Currency	Principal Amount (000)		Value
Guatemala | 0.1%
Republic of Guatemala:
5.750%, 06/06/22	USD		59	$	62,098
4.875%, 02/13/28	USD		75		72,000
					134,098
Hungary | 0.4%
Hungary:
6.375%, 03/29/21	USD		180		205,700
5.750%, 11/22/23	USD		250		280,028
5.375%, 03/25/24	USD		70		76,972
7.625%, 03/29/41	USD		100		135,974
					698,674
Indonesia | 0.9%
Indonesia Government Bond, 7.875%, 04/15/19	IDR		9,022,000		638,569
Perusahaan Penerbit SBSN Indonesia III, 4.325%, 05/28/25 (c)	USD		325		310,131
Republic of Indonesia:
8.500%, 10/12/35	USD		100		125,200
6.625%, 02/17/37	USD		125		131,750
7.750%, 01/17/38	USD		100		117,525
5.250%, 01/17/42	USD		130		117,910
					1,441,085
Ivory Coast | 0.5%
Ivory Coast:
6.375%, 03/03/28	USD		300		273,750
6.375%, 03/03/28 (c)	USD		250		228,125
5.750%, 12/31/32	USD		350		312,812
					814,687
Jamaica | 0.1%
Government of Jamaica:
8.000%, 06/24/19	USD		75		80,812
6.750%, 04/28/28	USD		75		74,719
					155,531
Jordan | 0.2%
Kingdom of Jordan, 6.125%, 01/29/26 (c)	USD		265		270,300
Kazakhstan | 0.2%
Republic of Kazakhstan, 6.500%, 07/21/45 (c)	USD		275		271,631

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

38   Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
Lithuania | 0.4%
Republic of Lithuania:
7.375%, 02/11/20	USD		230	$	272,962
6.625%, 02/01/22	USD		300		358,266
					631,228
Mexico | 2.1%
Mexican Bonos:
4.750%, 06/14/18	MXN		2,600		151,581
5.000%, 12/11/19	MXN		4,620		265,775
6.500%, 06/10/21	MXN		5,260		315,739
10.000%, 12/05/24	MXN		11,975		881,944
Mexican Udibonos, 2.500%, 12/10/20	MXN		11,623		656,035
United Mexican States:
5.625%, 01/15/17	USD		60		62,550
4.000%, 10/02/23	USD		280		284,340
3.600%, 01/30/25	USD		150		146,400
6.050%, 01/11/40	USD		238		261,800
4.750%, 03/08/44	USD		204		186,609
5.550%, 01/21/45	USD		163		167,279
					3,380,052
Mozambique | 0.1%
Republic of Mozambique, 6.305%, 09/11/20	USD		182		153,335
Namibia | 0.2%
Republic of Namibia, 5.250%, 10/29/25 (c)	USD		300		280,500
Pakistan | 0.3%
Islamic Republic of Pakistan:
8.250%, 04/15/24	USD		400		413,416
8.250%, 04/15/24 (c)	USD		5		5,168
					418,584
Panama | 0.8%
Republic of Panama:
3.750%, 03/16/25	USD		620		609,925
7.125%, 01/29/26	USD		30		37,462
8.875%, 09/30/27	USD		220		305,800
9.375%, 04/01/29	USD		55		79,475
6.700%, 01/26/36	USD		300		357,750
					1,390,412

Description	Security Currency	Principal Amount (000)		Value
Paraguay | 0.2%
Republic of Paraguay,
6.100%, 08/11/44	USD		275	$	265,375
Poland | 0.2%
Republic of Poland:
6.375%, 07/15/19	USD		60		68,315
5.000%, 03/23/22	USD		190		210,339
					278,654
Portugal | 0.7%
Republic of Portugal,
5.125%, 10/15/24	USD		1,075		1,099,510
Romania | 0.3%
Romania Government Bonds:
6.750%, 02/07/22	USD		110		129,525
4.875%, 01/22/24	USD		180		193,680
6.125%, 01/22/44	USD		180		211,275
					534,480
Russia | 0.4%
Russia Foreign Bond,
4.875%, 09/16/23	USD		400		407,200
Russia Government Bond - OFZ,
7.500%, 02/27/19	RUB		13,429		172,737
					579,937
Rwanda | 0.1%
Republic of Rwanda,
6.625%, 05/02/23	USD		225		216,099
Senegal | 0.1%
Republic of Senegal,
8.750%, 05/13/21	USD		200		210,500
Serbia | 0.1%
Republic of Serbia,
5.875%, 12/03/18	USD		200		211,200
Slovenia | 1.3%
Republic of Slovenia:
5.850%, 05/10/23	USD		930		1,057,279
5.250%, 02/18/24	USD		910		1,005,167
					2,062,446
South Africa | 0.3%
Republic of South Africa:
7.250%, 01/15/20	ZAR		3,820		230,732
6.750%, 03/31/21	ZAR		3,530		203,560
					434,292

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

Annual Report   39

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
Sri Lanka | 0.2%
Republic of Sri Lanka:
6.125%, 06/03/25	USD		150	$	133,875
6.850%, 11/03/25 (c)	USD		140		131,250
					265,125
Turkey | 0.2%
Republic of Turkey:
7.500%, 07/14/17	USD		100		107,200
7.375%, 02/05/25	USD		140		163,975
4.875%, 04/16/43	USD		160		141,280
					412,455
Uganda | 0.1%
Uganda Government Bond,
12.875%, 05/19/16	UGX		519,600		149,314
Ukraine | 0.9%
Ukraine Government Bonds:
7.750%, 09/01/19 (c)	USD		103		96,255
7.750%, 09/01/20 (c)	USD		812		751,116
7.750%, 09/01/21 (c)	USD		104		95,160
7.750%, 09/01/22 (c)	USD		104		94,640
7.750%, 09/01/23 (c)	USD		100		89,750
7.750%, 09/01/24 (c)	USD		100		89,000
7.750%, 09/01/27 (c)	USD		100		87,250
0.000%, 05/31/40	USD		250		100,625
					1,403,796
Uruguay | 0.1%
Republica Orient Uruguay,
5.000%, 09/14/18	UYU		7,401		246,280
Venezuela | 0.1%
Republic of Venezuela:
9.250%, 09/15/27	USD		195		80,925
9.250%, 05/07/28	USD		105		41,475
11.950%, 08/05/31	USD		90		40,275
9.375%, 01/13/34	USD		163		64,793
7.000%, 03/31/38	USD		60		22,650
					250,118
Vietnam | 0.1%
Socialist Republic of Vietnam:
6.750%, 01/29/20	USD		120		131,850
4.800%, 11/19/24	USD		125		120,362
					252,212

Description	Security Currency	Principal Amount (000)		Value
Zambia | 0.1%
Zambia Government Bond,
11.000%, 05/26/20	ZMW		2,010	$	121,523
Total Foreign Government Obligations (Identified cost $28,183,613)					26,825,241
Quasi Government Bonds | 0.5%
Mexico | 0.2%
Petroleos Mexicanos:
8.000%, 05/03/19	USD		120		132,420
6.500%, 06/02/41	USD		79		68,730
5.500%, 06/27/44	USD		44		33,323
5.625%, 01/23/46	USD		46		35,429
					269,902
Tunisia | 0.2%
Banque Centrale de Tunisie SA:
5.750%, 01/30/25	USD		200		174,000
5.750%, 01/30/25 (c)	USD		280		243,600
					417,600
Venezuela | 0.1%
Petroleos de Venezuela SA:
5.375%, 04/12/27	USD		300		109,680
9.750%, 05/17/35	USD		85		35,700
5.500%, 04/12/37	USD		27		9,889
					155,269
Total Quasi Government Bonds (Identified cost $898,586)					842,771
US Treasury Securities | 8.0%
US Treasury Notes:
0.375%, 04/30/16	USD		3,100		3,099,625
1.750%, 05/31/16	USD		2,030		2,040,832
1.500%, 06/30/16	USD		3,800		3,817,909
0.625%, 07/15/16	USD		3,000		3,000,243
1.625%, 11/30/20	USD		500		497,188
2.250%, 11/15/25	USD		500		499,023
Total US Treasury Securities (Identified cost $12,958,937)					12,954,820

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

40   Annual Report

Description	Shares		Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
Warrant | 0.0%
Iraq | 0.0%
Gulf Keystone Petroleum, Ltd. Expires 04/18/17 (Identified cost $0)		64,000	$	0
Short-Term Investment | 8.0%
State Street Institutional Treasury Money Market Fund (Identified cost $12,959,855)		12,959,855		12,959,855

Description	Number of Contracts		Value
Purchased Option | 0.0%
USD vs MXN January 16 17 Put, Expires 01/19/16 (Identified cost $21,425)		21,150	$	6,768
Total Investments | 103.5% (Identified cost $187,470,679) (d), (g)			$	168,119,380
Liabilities in Excess of Cash and Other Assets | (3.5)%				(5,728,878	)
Net Assets | 100.0%			$	162,390,502

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, 2015:

Currency	Counterparty		Settlement Date		Quantity		Cost on Origination Date^			Unrealized Appreciation			Unrealized Depreciation
Forward Currency Purchase Contracts
BRL		BRC		01/05/16		303,554		77,739			$	—		$	1,011
BRL		BRC		01/05/16		339,565		86,961				—			1,131
BRL		BRC		01/05/16		643,119		161,812				746			—
BRL		HSB		01/05/16		303,554		77,739				—			1,011
BRL		JPM		01/05/16		303,554		77,739				—			1,011
BRL		JPM		01/05/16		375,046		96,047				—			1,249
BRL		JPM		01/05/16		678,600		170,760				766			—
BRL		SCB		01/05/16		303,554		77,739				—			1,011
BRL		SCB		01/05/16		339,652		86,983				—			1,131
BRL		SCB		01/05/16		643,206		161,895				685			—
BRL		UBS		01/05/16		303,556		77,739				—			1,011
BRL		UBS		01/05/16		607,110		152,816				640			—
CLP		BNP		01/15/16		266,756,250		375,000				1,030			—
CLP		SCB		01/25/16		381,548,050		533,000				4,211			—
CNH		HSB		04/14/16		2,208,583		344,000				—			12,276
CNY		HSB		01/29/16		855,190		133,000				—			1,499
CNY		SCB		01/15/16		4,061,295		630,000				—			4,972
DOP		CIT		01/07/16		2,200,000		47,857				244			—
DOP		CIT		02/05/16		17,336,000		375,563				1,388			—
DOP		CIT		02/10/16		3,710,610		80,282				328			—
DOP		CIT		03/07/16		2,200,000		47,650				—			84
DOP		CIT		03/10/16		6,501,600		140,121				368			—
DOP		CIT		06/30/16		4,827,240		100,526				1,374			—
EGP		BNP		03/08/16		1,097,470		121,000				3,517			—
EUR		CIT		01/13/16		206,105		25,536,410	RSD			—			4,051
EUR		CIT		01/13/16		322,000		350,272				—			265
EUR		JPM		01/04/16		299,940		331,000				—			5,041
EUR		JPM		01/04/16		1,510,060		1,655,062				—			14,005
EUR		SCB		01/15/16		366,972		1,558,046	PLN			1,799			—
HUF		CIT		04/13/16		162,062,282		597,289				—			39,635
IDR		JPM		03/24/16		1,409,100,000		309				309			—
INR		BRC		01/15/16		11,830,117		175,339				3,192			—
INR		JPM		01/15/16		11,830,117		175,417				3,114			—
INR		JPM		04/25/16		23,997,600		360,000				—			3,982
INR		JPM		07/13/16		22,398,770		331,000				—			3,232
INR		SCB		01/11/16		27,599,575		410,647				6,136			—
INR		SCB		01/15/16		11,830,117		175,404				3,127			—
INR		UBS		01/15/16		11,830,117		175,378				3,153			—
KRW		CIT		01/15/16		444,618,680		374,000				5,084			—
KZT		CIT		01/05/16		68,734,750		217,000				—			15,195
KZT		CIT		06/06/16		33,638,000		121,000				—			32,530
KZT		JPM		01/15/16		53,768,000		188,000				—			34,573
KZT		JPM		03/03/16		32,452,000		122,000				—			33,375

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

42   Annual Report

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at December 31, 2015 (continued):

Currency	Counterparty		Settlement Date		Quantity		Cost on Origination Date^			Unrealized Appreciation			Unrealized Depreciation
Forward Currency Purchase Contracts (concluded)
KZT		JPM		06/06/16		33,638,000		121,000			$	—		$	32,530
MYR		HSB		02/16/16		1,426,347		334,000				—			2,788
NGN		SCB		04/25/16		15,429,760		67,086				7,183			—
PHP		HSB		01/25/16		23,261,760		492,000				1,752			—
PHP		SCB		01/29/16		10,436,220		222,000				—			533
PLN		BRC		01/15/16		2,171,351		499,365	EUR			10,605			—
PLN		CIT		01/04/16		480,609		120,000				2,522			—
PLN		JPM		01/04/16		660,068		155,000	EUR			—			176
PLN		JPM		01/04/16		1,565,285		405,000				—			5,962
PLN		JPM		01/15/16		2,171,351		499,391	EUR			10,577			—
PLN		JPM		01/25/16		2,705,961		699,721				—			10,204
PLN		SCB		01/15/16		2,171,351		499,534	EUR			10,421			—
PLN		UBS		01/15/16		2,171,351		499,362	EUR			10,608			—
RON		CIT		01/08/16		682,959		176,740				—			12,496
RON		JPM		01/08/16		200,710		51,959				—			3,690
RSD		CIT		01/13/16		38,484,690		362,755				—			19,023
RUB		CIT		01/25/16		21,551,040		336,000				—			41,856
RUB		CIT		02/09/16		15,013,635		221,000				—			16,897
RUB		CIT		02/09/16		22,523,050		341,000				—			34,810
RUB		CIT		03/04/16		7,582,025		110,000				—			7,541
RUB		JPM		02/24/16		20,640,960		288,000				—			8,449
UGX		BRC		01/04/16		214,011,000		64,852				—			1,385
UGX		SCB		02/05/16		17,300,000		5,000				83			—
ZAR		CIT		01/25/16		1,626,818		107,473				—			2,658
ZAR		JPM		01/14/16		169,210		11,000				—			76
ZAR		JPM		01/14/16		495,225		31,000				972			—
ZMW		BRC		02/23/16		1,018,820		121,000				—			31,724
ZMW		BRC		02/23/16		1,076,662		101,764				—			7,420
Total Forward Currency Purchase Contracts											$	95,934		$	453,499
Forward Currency Sale Contracts
BRL		BRC		01/05/16		303,554		81,145			$	4,417		$	—
BRL		BRC		01/05/16		339,565		86,979				1,149			—
BRL		BRC		01/05/16		643,119		164,700				2,142			—
BRL		BRC		02/02/16		643,119		160,099				—			860
BRL		CIT		02/18/16		1,308,455		341,820				15,830			—
BRL		CIT		02/18/16		1,937,780		619,000				136,219			—
BRL		CIT		09/21/16		725,517		169,000				786			—
BRL		HSB		01/05/16		303,554		81,245				4,517			—
BRL		JPM		01/05/16		303,554		81,204				4,476			—
BRL		JPM		01/05/16		375,046		96,042				1,244			—
BRL		JPM		01/05/16		678,600		173,786				2,260			—

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

Annual Report   43

Lazard Emerging Markets Multi Asset Portfolio (continued)

Forward Currency Contracts open at December 31, 2015 (continued):

Currency	Counterparty	Settlement Date		Quantity		Cost on Origination Date^		Unrealized Appreciation			Unrealized Depreciation
Forward Currency Sale Contracts (continued)
BRL	JPM		02/02/16		678,600		168,953		$	—		$	886
BRL	SCB		01/05/16		303,554		81,247			4,519			—
BRL	SCB		01/05/16		339,652		86,979			1,127			—
BRL	SCB		01/05/16		643,206		164,722			2,142			—
BRL	SCB		02/02/16		643,206		160,181			—			800
BRL	UBS		01/05/16		303,556		81,201			4,473			—
BRL	UBS		01/05/16		607,110		155,478			2,022			—
BRL	UBS		02/02/16		607,110		151,198			—			749
CNH	SCB		04/14/16		2,208,583		333,673			1,949			—
DOP	CIT		01/07/16		2,200,000		48,140			39			—
EUR	JPM		01/04/16		98,000		104,483			—			2,019
EUR	JPM		01/04/16		319,000		338,585			—			8,088
EUR	JPM		01/04/16		586,000		648,825			11,990			—
EUR	JPM		01/04/16		652,000		699,580			—			8,981
EUR	JPM		02/04/16		1,510,060		1,656,304			14,033			—
HUF	JPM		04/13/16		76,069,832		259,575			—			2,180
HUF	JPM		04/13/16		85,992,450		310,000			14,101			—
IDR	SCB		01/22/16		2,177,440,000		155,000			—			2,355
IDR	SCB		02/29/16		2,552,080,000		184,000			1,334			—
JPY	SCB		01/19/16		51,679,808		422,000			—			8,104
MXN	BRC		01/15/16		4,086,245		239,130			2,207			—
MXN	HSB		01/15/16		4,086,245		239,067			2,144			—
MXN	JPM		01/15/16		4,086,245		239,256			2,333			—
MXN	JPM		01/22/16		1,536,273		90,000			971			—
MXN	SCB		01/15/16		4,086,245		239,207			2,284			—
MXN	UBS		01/15/16		4,086,244		239,213			2,290			—
NGN	BRC		03/09/16		5,260,248		24,696			—			1,308
NGN	HSB		03/09/16		9,672,404		45,304			—			2,512
NGN	SCB		03/09/16		14,910,000		70,000			—			3,709
NGN	SCB		04/25/16		15,429,760		64,695			—			9,574
PHP	SCB		01/25/16		6,098,800		127,617			—			1,836
PLN	JPM		01/04/16		2,705,961		700,119			10,289			—
RON	JPM		01/08/16		757,304		191,937			9,814			—
RSD	CIT		01/13/16		12,948,280		121,182			5,532			—
RUB	CIT		02/09/16		16,587,750		255,000			29,498			—
THB	JPM		01/15/16		10,144,960		280,000			—			1,842
TWD	BRC		01/28/16		2,780,384		84,498			—			158
TWD	JPM		01/28/16		2,588,000		80,000			1,202			—
TWD	JPM		01/28/16		2,780,385		84,485			—			171
TWD	SCB		01/28/16		2,588,800		80,000			1,178			—
UGX	BRC		01/04/16		214,011,000		63,000			—			467
UGX	BRC		02/05/16		214,011,000		63,599			723			—
UGX	SCB		02/05/16		103,277,254		29,332			—			1,011

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

44   Annual Report

Lazard Emerging Markets Multi Asset Portfolio (concluded)

Forward Currency Contracts open at December 31, 2015 (concluded):

Currency	Counterparty	Settlement Date		Quantity		Cost on Origination Date^		Unrealized Appreciation			Unrealized Depreciation
Forward Currency Sale Contracts (concluded)
UGX	SCB		02/05/16		209,100,000		60,433		$	—		$	1,000
UYU	HSB		01/29/16		6,839,360		224,772			—			2,696
ZAR	HSB		01/14/16		4,485,470		306,558			16,973			—
ZAR	JPM		01/14/16		4,483,261		298,000			8,557			—
ZMW	CIT		02/23/16		2,180,000		170,713			—			20,313
Total Forward Currency Sale Contracts										326,764			81,619
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts									$	422,698		$	535,118

^ In USD unless otherwise indicated.

Credit Default Swap Agreements open at December 31, 2015:

Referenced Obligation	Counterparty		Notional Amount		Expiration Date	Buy/ Sell		Receive (Pay) Rate			S&P Credit Rating	Value				Upfront Premiums Paid (Received)				Unrealized Depreciation
CDX EM 24		BRC		490,000	12/20/20		Sell		1.000	%	CCC – AA-		$	(54,425	)		$	(53,155	)		$	1,270
CDX EM 24		JPM		490,000	12/20/20		Sell		1.000		CCC – AA-			(54,425	)			(52,920	)			1,505
Total Credit Default Swap Agreements													$	(108,850	)		$	(106,075	)		$	2,775

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
Corporate Bonds | 1.5%
China | 0.1%
BCP Singapore VI Cayman Financing Co., Ltd.:
8.000%, 04/15/21	USD		165	$	133,134
8.000%, 04/15/21 (c)	USD		112		90,370
					223,504
Malaysia | 0.9%
Petronas Capital, Ltd.,
3.500%, 03/18/25	USD		2,310		2,226,327
South Africa | 0.5%
Transnet SOC, Ltd.,
9.500%, 05/13/21 (c)	ZAR		24,000		1,384,047
Total Corporate Bonds (Identified cost $4,854,201)					3,833,878
Foreign Government Obligations | 92.0%
Angola | 0.6%
Republic of Angola,
9.500%, 11/12/25 (c)	USD		1,510		1,404,300
Republic of Angola Northern Lights III BV,
7.000%, 08/16/19	USD		305		295,547
					1,699,847
Argentina | 4.4%
Republic of Argentina:
8.750%, 06/02/17 (e)	USD		2,060		2,358,700
8.280%, 12/31/33 (e)	USD		5,426		6,237,912
2.500%, 12/31/38 (e)	USD		5,020		3,150,050
					11,746,662
Azerbaijan | 0.5%
Republic of Azerbaijan,
4.750%, 03/18/24	USD		1,330		1,253,525
Belarus | 0.1%
Republic of Belarus,
8.950%, 01/26/18	USD		315		325,710

Description	Security Currency	Principal Amount (000)		Value
Belize | 0.3%
Republic of Belize,
5.000%, 02/20/38 (f)	USD		1,095	$	793,875
Brazil | 5.9%
Brazil Letras do Tesouro Nacional:
0.000%, 01/01/17	BRL		2,150		469,046
0.000%, 01/01/19	BRL		65,090		10,388,076
Brazil NTN-B,
6.000%, 08/15/50	BRL		2,428		1,439,544
Federal Republic of Brazil:
4.875%, 01/22/21	USD		1,050		973,875
2.625%, 01/05/23	USD		1,365		1,040,813
4.250%, 01/07/25	USD		750		605,625
8.250%, 01/20/34	USD		661		639,518
					15,556,497
Chile | 0.1%
Republic of Chile, 5.500%, 08/05/20	CLP		110,000		159,981
Colombia | 3.6%
Colombian Titulos De Tesoreria, 10.000%, 07/24/24	COP		17,685,500		6,144,493
Republic of Colombia:
4.375%, 07/12/21	USD		800		806,000
4.000%, 02/26/24	USD		1,290		1,231,950
4.500%, 01/28/26	USD		770		743,050
7.375%, 09/18/37	USD		565		625,737
6.125%, 01/18/41	USD		60		58,200
					9,609,430
Costa Rica | 0.7%
Republic of Costa Rica:
4.250%, 01/26/23	USD		475		416,516
5.625%, 04/30/43	USD		650		466,375
7.000%, 04/04/44	USD		1,180		988,987
					1,871,878
Croatia | 1.9%
Croatia:
6.750%, 11/05/19	USD		1,485		1,594,519
6.625%, 07/14/20	USD		720		772,740
6.375%, 03/24/21	USD		950		1,011,037
6.000%, 01/26/24	USD		1,600		1,668,400
					5,046,696

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)
Dominican Republic | 1.9%
Dominican Republic:
7.500%, 05/06/21	USD		1,545	$	1,664,737
5.500%, 01/27/25	USD		900		873,000
7.450%, 04/30/44	USD		1,765		1,787,062
6.850%, 01/27/45	USD		745		709,613
					5,034,412
Ecuador | 0.3%
Republic of Ecuador:
10.500%, 03/24/20	USD		150		122,250
10.500%, 03/24/20 (c)	USD		210		171,150
7.950%, 06/20/24 (c)	USD		585		437,287
					730,687
Egypt | 0.6%
Arab Republic of Egypt:
5.875%, 06/11/25	USD		895		778,426
5.875%, 06/11/25 (c)	USD		1,000		869,750
					1,648,176
El Salvador | 0.6%
Republic of El Salvador:
7.375%, 12/01/19	USD		425		425,531
6.375%, 01/18/27	USD		200		169,000
6.375%, 01/18/27 (c)	USD		305		257,725
7.650%, 06/15/35	USD		860		737,450
					1,589,706
Gabon | 0.3%
Gabonese Republic,
6.375%, 12/12/24	USD		840		672,000
Ghana | 0.6%
Republic of Ghana:
7.875%, 08/07/23	USD		1,300		1,036,750
8.125%, 01/18/26	USD		665		523,687
					1,560,437
Guatemala | 0.2%
Republic of Guatemala:
5.750%, 06/06/22	USD		280		294,700
4.875%, 02/13/28	USD		285		273,600
					568,300

Description	Security Currency	Principal Amount (000)		Value
Honduras | 0.2%
Honduras Government Bond,
7.500%, 03/15/24	USD		200	$	211,500
Republic of Honduras,
8.750%, 12/16/20	USD		200		222,000
					433,500
Hungary | 4.5%
Hungary:
6.250%, 01/29/20	USD		200		223,818
6.375%, 03/29/21	USD		999		1,141,637
5.375%, 02/21/23	USD		1,122		1,226,705
5.750%, 11/22/23	USD		1,060		1,187,317
5.375%, 03/25/24	USD		596		655,362
7.625%, 03/29/41	USD		320		435,117
Hungary Government Bonds:
6.500%, 06/24/19	HUF		871,310		3,401,379
3.500%, 06/24/20	HUF		46,750		167,394
5.500%, 06/24/25	HUF		867,000		3,500,816
					11,939,545
Indonesia | 7.7%
Indonesia Government Bonds:
7.875%, 04/15/19	IDR		33,735,000		2,387,733
8.375%, 03/15/24	IDR		26,980,000		1,908,916
8.375%, 09/15/26	IDR		31,285,000		2,219,136
9.000%, 03/15/29	IDR		54,850,000		3,997,405
8.375%, 03/15/34	IDR		36,910,000		2,519,492
Perusahaan Penerbit SBSN Indonesia III,
4.325%, 05/28/25 (c)	USD		1,550		1,479,088
Republic of Indonesia:
5.875%, 03/13/20	USD		675		736,425
3.750%, 04/25/22	USD		450		432,900
3.375%, 04/15/23	USD		975		907,481
4.125%, 01/15/25 (c)	USD		650		618,800
7.750%, 01/17/38	USD		1,690		1,986,173
5.250%, 01/17/42	USD		210		190,470
5.125%, 01/15/45	USD		1,295		1,170,356
					20,554,375
Iraq | 0.3%
Republic of Iraq,
5.800%, 01/15/28	USD		1,050		710,063
Ivory Coast | 2.2%
Ivory Coast,
5.750%, 12/31/32	USD		6,685		5,974,719

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)
Jamaica | 0.4%
Government of Jamaica:
8.000%, 06/24/19	USD		435	$	468,713
6.750%, 04/28/28	USD		440		438,350
8.500%, 02/28/36	USD		115		123,481
					1,030,544
Jordan | 0.3%
Kingdom of Jordan,
6.125%, 01/29/26 (c)	USD		820		836,400
Kazakhstan | 0.7%
Republic of Kazakhstan:
3.875%, 10/14/24	USD		225		212,484
3.875%, 10/14/24 (c)	USD		665		628,010
4.875%, 10/14/44	USD		140		117,425
6.500%, 07/21/45 (c)	USD		1,045		1,032,199
					1,990,118
Lithuania | 1.0%
Republic of Lithuania:
7.375%, 02/11/20	USD		475		563,725
6.625%, 02/01/22	USD		1,670		1,994,348
					2,558,073
Malaysia | 4.2%
Malaysia Government Bonds:
3.654%, 10/31/19	MYR		10,020		2,349,826
4.048%, 09/30/21	MYR		23,050		5,384,681
3.795%, 09/30/22	MYR		7,880		1,807,791
3.955%, 09/15/25	MYR		6,540		1,497,327
					11,039,625
Mexico | 6.7%
Mexican Bonos:
5.000%, 12/11/19	MXN		112,570		6,475,820
10.000%, 12/05/24	MXN		54,017		3,978,287
10.000%, 11/20/36	MXN		37,019		2,882,454
United Mexican States:
5.625%, 01/15/17	USD		480		500,400
6.750%, 09/27/34	USD		490		590,450
6.050%, 01/11/40	USD		1,938		2,131,800
4.750%, 03/08/44	USD		648		592,758
4.600%, 01/23/46	USD		833		742,411
					17,894,380
Morocco | 0.3%
Kingdom of Morocco,
4.250%, 12/11/22	USD		865		858,729

Description	Security Currency	Principal Amount (000)		Value
Namibia | 0.7%
Republic of Namibia,
5.250%, 10/29/25 (c)	USD		2,025	$	1,893,375
Pakistan | 0.7%
Islamic Republic of Pakistan:
7.250%, 04/15/19	USD		580		597,507
8.250%, 04/15/24	USD		555		573,615
8.250%, 09/30/25 (c)	USD		650		668,687
					1,839,809
Panama | 2.3%
Republic of Panama:
5.200%, 01/30/20	USD		725		788,438
4.000%, 09/22/24	USD		150		150,563
3.750%, 03/16/25	USD		525		516,469
7.125%, 01/29/26	USD		710		886,612
8.875%, 09/30/27	USD		465		646,350
9.375%, 04/01/29	USD		645		932,025
6.700%, 01/26/36	USD		1,815		2,164,387
					6,084,844
Paraguay | 0.5%
Republic of Paraguay:
4.625%, 01/25/23	USD		880		858,000
6.100%, 08/11/44 (c)	USD		420		405,300
					1,263,300
Peru | 1.6%
Republic of Peru:
7.350%, 07/21/25	USD		450		564,750
4.125%, 08/25/27	USD		1,700		1,676,200
6.900%, 08/12/37	PEN		5,100		1,351,841
5.625%, 11/18/50	USD		640		654,403
					4,247,194
Philippines | 0.2%
Republic of Philippines,
3.625%, 09/09/25	PHP		29,000		593,093
Poland | 6.1%
Poland Government Bonds:
4.750%, 10/25/16	PLN		810		211,934
2.500%, 07/25/18	PLN		650		168,869
5.500%, 10/25/19	PLN		6,003		1,724,544
1.500%, 04/25/20	PLN		3,520		871,195
5.250%, 10/25/20	PLN		2,590		750,857
5.750%, 09/23/22	PLN		20,130		6,109,844
3.250%, 07/25/25	PLN		6,720		1,757,669

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)
Republic of Poland:
6.375%, 07/15/19	USD		855	$	973,486
5.125%, 04/21/21	USD		650		722,182
5.000%, 03/23/22	USD		1,099		1,216,648
3.000%, 03/17/23	USD		923		913,253
4.000%, 01/22/24	USD		650		681,934
					16,102,415
Romania | 1.5%
Romania Government Bonds:
5.950%, 06/11/21	RON		4,210		1,172,614
6.750%, 02/07/22	USD		1,314		1,547,235
4.375%, 08/22/23	USD		1		1,043
4.875%, 01/22/24	USD		240		258,240
4.750%, 02/24/25	RON		1,330		345,370
6.125%, 01/22/44	USD		530		622,088
					3,946,590
Russia | 5.0%
Russia Foreign Bonds:
5.000%, 04/29/20	USD		900		929,250
4.875%, 09/16/23	USD		1,800		1,832,400
12.750%, 06/24/28	USD		950		1,509,075
7.500%, 03/31/30	USD		684		821,613
5.625%, 04/04/42	USD		2,000		1,902,500
Russia Government Bonds - OFZ:
7.500%, 02/27/19	RUB		197,740		2,543,532
7.600%, 07/20/22	RUB		124,140		1,540,705
7.000%, 01/25/23	RUB		95,220		1,136,653
7.000%, 08/16/23	RUB		38,560		456,910
7.050%, 01/19/28	RUB		63,690		728,260
					13,400,898
Rwanda | 0.5%
Republic of Rwanda,
6.625%, 05/02/23	USD		1,375		1,320,605
Senegal | 0.4%
Republic of Senegal:
8.750%, 05/13/21	USD		525		552,562
6.250%, 07/30/24	USD		525		469,875
					1,022,437
Serbia | 0.8%
Republic of Serbia,
5.875%, 12/03/18	USD		2,085		2,201,760

Description	Security Currency	Principal Amount (000)		Value
Slovenia | 3.0%
Republic of Slovenia:
5.850%, 05/10/23	USD		5,490	$	6,241,357
5.250%, 02/18/24	USD		1,465		1,618,209
					7,859,566
South Africa | 4.1%
Republic of South Africa:
5.500%, 03/09/20	USD		1,945		2,004,809
10.500%, 12/21/26	ZAR		69,840		4,737,402
8.250%, 03/31/32	ZAR		54,860		2,990,735
6.250%, 03/08/41	USD		600		614,325
5.375%, 07/24/44	USD		470		425,467
					10,772,738
Sri Lanka | 1.0%
Republic of Sri Lanka:
6.125%, 06/03/25	USD		500		446,250
6.850%, 11/03/25 (c)	USD		2,450		2,296,875
					2,743,125
Thailand | 2.3%
Thailand Government Bonds:
3.875%, 06/13/19	THB		93,790		2,788,937
3.850%, 12/12/25	THB		109,490		3,399,870
					6,188,807
Turkey | 5.8%
Republic of Turkey:
7.000%, 03/11/19	USD		450		493,087
7.500%, 11/07/19	USD		770		866,442
7.375%, 02/05/25	USD		1,205		1,411,356
4.250%, 04/14/26	USD		1,805		1,698,956
6.000%, 01/14/41	USD		1,065		1,091,359
Turkey Government Bonds:
9.000%, 01/27/16	TRY		5,086		1,743,476
6.300%, 02/14/18	TRY		7,150		2,254,908
8.000%, 03/12/25	TRY		19,460		5,715,091
					15,274,675
Ukraine | 3.0%
Ukraine Government Bonds:
7.750%, 09/01/19 (c)	USD		247		230,818
7.750%, 09/01/20 (c)	USD		848		784,400
7.750%, 09/01/21 (c)	USD		772		706,380
7.750%, 09/01/22 (c)	USD		1,272		1,157,520
7.800%, 11/28/22	USD		280		224,090
7.750%, 09/01/23 (c)	USD		1,272		1,141,620

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

Annual Report   49

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
9.250%, 07/17/24	USD		200	$	159,000
7.750%, 09/01/24 (c)	USD		1,063		946,070
7.750%, 09/01/26 (c)	USD		1,066		932,750
7.750%, 09/01/27 (c)	USD		1,065		929,213
0.000%, 05/31/40	USD		2,150		865,375
					8,077,236
Venezuela | 0.9%
Republic of Venezuela:
5.750%, 02/26/16	USD		1,010		911,525
6.000%, 12/09/20	USD		875		330,313
9.000%, 05/07/23	USD		180		72,450
7.650%, 04/21/25	USD		726		272,250
9.375%, 01/13/34	USD		1,415		562,462
7.000%, 03/31/38	USD		382		144,205
					2,293,205
Vietnam | 0.5%
Socialist Republic of Vietnam:
6.750%, 01/29/20	USD		440		483,450
4.800%, 11/19/24	USD		985		948,454
					1,431,904
Total Foreign Government Obligations
(Identified cost $265,628,364)					244,245,466
Quasi Government Bonds | 3.6%
Colombia | 0.3%
Emgesa SA ESP,
8.750%, 01/25/21	COP		1,000,000		309,148
Empresas Publicas de Medellin ESP,
8.375%, 02/01/21	COP		1,170,000		356,233
					665,381
Ecuador | 0.1%
EP Petroecuador,
6.224%, 09/24/19	USD		454		374,506
Kazakhstan | 0.9%
KazMunayGas National Co. JSC,
9.125%, 07/02/18	USD		2,050		2,260,125

Description	Security Currency	Principal Amount (000)		Value
Mexico | 1.3%
Petroleos Mexicanos:
8.000%, 05/03/19	USD		1,315	$	1,451,102
5.500%, 06/27/44	USD		1,380		1,045,130
5.500%, 06/27/44 (c)	USD		455		344,590
6.375%, 01/23/45	USD		815		694,787
					3,535,609
South Africa | 0.2%
Eskom Holdings SOC, Ltd.,
7.850%, 04/02/26	ZAR		9,000		530,500
Tunisia | 0.1%
Banque Centrale de Tunisie SA,
5.750%, 01/30/25	USD		360		313,200
Venezuela | 0.7%
Petroleos de Venezuela SA:
5.250%, 04/12/17	USD		893		446,679
6.000%, 05/16/24	USD		450		168,300
6.000%, 11/15/26	USD		625		232,813
9.750%, 05/17/35	USD		1,045		438,900
5.500%, 04/12/37	USD		1,570		575,012
					1,861,704
Total Quasi Government Bonds
(Identified cost $11,422,177)					9,541,025
Description		Shares		Value
Short-Term Investment | 1.2%
State Street Institutional Treasury Money Market Fund (Identified cost $3,170,852)			3,170,852	$	3,170,852
Total Investments | 98.3%
(Identified cost $285,075,594) (d), (g)				$	260,791,221
Cash and Other Assets in Excess of Liabilities | 1.7%					4,635,048
Net Assets | 100.0%				$	265,426,269

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

50  Annual Report

Lazard Emerging Markets Debt Portfolio (concluded)

Forward Currency Contracts open at December 31, 2015:

Currency	Counterparty	Settlement Date	Quantity		Cost on Origination Date^		Unrealized Appreciation			Unrealized Depreciation
Forward Currency Purchase Contracts
BRL	BRC	01/05/16		2,349,056		591,032		$	2,726		$	—
BRL	BRC	01/05/16		2,349,056		601,582			—			7,823
HUF	BRC	01/15/16		31,972,503		111,949			—			1,786
INR	BRC	01/15/16		36,182,291		536,272			9,762			—
INR	BRC	01/15/16		45,702,800		680,000			9,710			—
INR	JPM	01/15/16		36,182,291		536,510			9,524			—
INR	SCB	01/15/16		36,182,291		536,471			9,563			—
INR	UBS	01/15/16		36,182,290		536,392			9,643			—
MXN	BRC	01/15/16		7,967,606		461,158			809			—
RON	BRC	02/16/16		3,462,871		837,697			—			4,831
RON	UBS	02/16/16		3,462,870		837,737			—			4,871
TRY	BRC	01/15/16		1,032,440		346,120			6,771			—
TRY	JPM	01/15/16		1,032,440		346,151			6,739			—
TRY	SCB	01/15/16		1,032,440		346,445			6,445			—
ZAR	BRC	01/15/16		3,931,726		256,367			—			2,579
Total Forward Currency Purchase Contracts								$	71,692		$	21,890
Forward Currency Sale Contracts
BRL	BRC	01/05/16		2,349,056		601,581		$	7,823		$	—
BRL	BRC	01/05/16		2,349,056		620,000			26,242			—
BRL	BRC	02/02/16		2,349,056		584,779			—			3,141
HUF	BRC	01/15/16		223,760,378		774,583			3,605			—
HUF	SCB	01/15/16		223,760,378		774,740			3,762			—
HUF	UBS	01/15/16		223,760,379		775,330			4,352			—
IDR	BRC	01/15/16		2,785,602,573		194,322			—			7,363
IDR	BRC	01/15/16		25,875,300,000		1,832,373			—			41,062
IDR	SCB	01/15/16		8,682,397,427		605,678			—			22,949
Total Forward Currency Sale Contracts									45,784			74,515
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts								$	117,476		$	96,405
^ In USD unless otherwise indicated.

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

Annual Report   51

Description	Security Currency	Principal Amount (000)		Value
Lazard Explorer Total Return Portfolio
Corporate Bonds | 1.2%
Bulgaria | 0.1%
ContourGlobal Power Holdings SA,
7.125%, 06/01/19 (c)	USD		250	$	238,125
China | 0.4%
BCP Singapore VI Cayman Financing Co., Ltd.,
8.000%, 04/15/21	USD		640		516,400
Green Dragon Gas, Ltd.,
10.000%, 11/20/17	USD		400		392,000
					908,400
Croatia | 0.2%
Hrvatska Elektroprivreda,
5.875%, 10/23/22 (c)	USD		590		600,325
Iraq | 0.3%
Genel Energy Finance PLC,
7.500%, 05/14/19	USD		1,200		840,000
South Africa | 0.2%
Petra Diamonds US Treasury PLC,
8.250%, 05/31/20 (c)	USD		525		438,375
Total Corporate Bonds (Identified cost $3,513,675)					3,025,225
Foreign Government Obligations | 81.9%
Angola | 2.8%
Republic of Angola,
9.500%, 11/12/25 (c)	USD		6,135		5,705,550
Republic of Angola Northern Lights III BV,
7.000%, 08/16/19	USD		1,336		1,295,859
					7,001,409

Description	Security Currency	Principal Amount (000)		Value
Argentina | 7.5%
Republic of Argentina:
8.750%, 06/02/17 (e)	USD		1,945	$	2,227,025
8.280%, 12/31/33 (e)	USD		9,485		10,931,217
2.500%, 12/31/38 (e)	USD		8,955		5,619,263
					18,777,505
Belize | 0.8%
Republic of Belize,
5.000%, 02/20/38	USD		2,774		2,011,150
Brazil | 1.4%
Brazil Letras do Tesouro Nacional,
0.000%, 01/01/19	BRL		15,740		2,512,035
Brazil NTN-B,
6.000%, 08/15/50	BRL		1,620		960,436
					3,472,471
Colombia | 2.4%
Republic of Colombia:
2.625%, 03/15/23	USD		555		488,955
4.000%, 02/26/24	USD		1,745		1,666,475
4.500%, 01/28/26	USD		1,330		1,283,450
7.375%, 09/18/37	USD		860		952,450
6.125%, 01/18/41	USD		955		926,350
5.625%, 02/26/44	USD		585		536,006
5.000%, 06/15/45	USD		280		234,850
					6,088,536
Congo | 1.5%
Republic of Congo,
4.000%, 06/30/29 (f)	USD		4,557		3,657,113
Croatia | 2.2%
Croatia:
6.250%, 04/27/17	USD		250		259,500
6.750%, 11/05/19	USD		1,720		1,846,850
6.625%, 07/14/20	USD		1,025		1,100,081
5.500%, 04/04/23	USD		950		965,437
6.000%, 01/26/24	USD		1,325		1,381,644
					5,553,512
Dominican Republic | 2.4%
Dominican Republic:
7.500%, 05/06/21	USD		920		991,300
5.500%, 01/27/25	USD		1,200		1,164,000
5.500%, 01/27/25 (c)	USD		600		582,000
7.450%, 04/30/44	USD		575		582,188
6.850%, 01/27/45	USD		1,315		1,252,537
6.850%, 01/27/45 (c)	USD		1,500		1,428,750
					6,000,775

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

52 Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Explorer Total Return Portfolio (continued)
Egypt | 1.5%
Arab Republic of Egypt:
5.875%, 06/11/25	USD		2,870	$	2,496,182
5.875%, 06/11/25 (c)	USD		1,325		1,152,419
					3,648,601
Ghana | 0.9%
Republic of Ghana:
7.875%, 08/07/23	USD		1,575		1,256,062
8.125%, 01/18/26	USD		1,265		996,188
					2,252,250
Guatemala | 0.5%
Republic of Guatemala:
5.750%, 06/06/22	USD		678		713,595
4.875%, 02/13/28	USD		560		537,600
					1,251,195
Honduras | 0.5%
Honduras Government Bond,
7.500%, 03/15/24	USD		810		856,575
Republic of Honduras,
8.750%, 12/16/20	USD		400		444,000
					1,300,575
Hungary | 2.5%
Hungary:
6.375%, 03/29/21	USD		1,170		1,337,053
5.750%, 11/22/23	USD		1,790		2,004,997
5.375%, 03/25/24	USD		680		747,728
7.625%, 03/29/41	USD		1,530		2,080,402
					6,170,180
Indonesia | 2.9%
Perusahaan Penerbit SBSN Indonesia III,
4.325%, 05/28/25 (c)	USD		2,750		2,624,187
Republic of Indonesia:
3.375%, 04/15/23	USD		625		581,719
8.500%, 10/12/35	USD		375		469,500
6.625%, 02/17/37	USD		470		495,380
7.750%, 01/17/38	USD		570		669,893
5.250%, 01/17/42	USD		1,050		952,350
6.750%, 01/15/44	USD		775		832,156
5.125%, 01/15/45	USD		620		560,325
					7,185,510

Description	Security Currency	Principal Amount (000)		Value
Ivory Coast | 2.9%
Ivory Coast:
6.375%, 03/03/28	USD		1,700	$	1,551,250
6.375%, 03/03/28 (c)	USD		1,105		1,008,313
5.750%, 12/31/32	USD		5,270		4,710,062
					7,269,625
Jamaica | 0.5%
Government of Jamaica,
6.750%, 04/28/28	USD		1,285		1,280,181
Jordan | 1.0%
Kingdom of Jordan,
6.125%, 01/29/26 (c)	USD		2,365		2,412,300
Kazakhstan | 1.0%
Republic of Kazakhstan:
3.875%, 10/14/24	USD		300		283,312
4.875%, 10/14/44	USD		225		188,719
6.500%, 07/21/45 (c)	USD		2,075		2,049,581
					2,521,612
Lithuania | 2.4%
Republic of Lithuania:
7.375%, 02/11/20	USD		1,530		1,815,789
6.625%, 02/01/22	USD		3,580		4,275,307
					6,091,096
Mexico | 8.9%
Mexican Bonos:
5.000%, 12/11/19	MXN		94,060		5,410,995
10.000%, 12/05/24	MXN		96,942		7,139,661
United Mexican States:
5.625%, 01/15/17	USD		570		594,225
4.000%, 10/02/23	USD		2,450		2,487,975
3.600%, 01/30/25	USD		1,225		1,195,600
6.050%, 01/11/40	USD		2,074		2,281,400
4.750%, 03/08/44	USD		1,356		1,240,401
5.550%, 01/21/45	USD		1,184		1,215,080
4.600%, 01/23/46	USD		934		832,427
					22,397,764
Mozambique | 0.4%
Republic of Mozambique,
6.305%, 09/11/20	USD		1,160		977,511
Namibia | 1.0%
Republic of Namibia,
5.250%, 10/29/25 (c)	USD		2,630		2,459,050

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)
Pakistan | 1.4%
Islamic Republic of Pakistan:
7.250%, 04/15/19	USD		715	$	736,582
8.250%, 04/15/24	USD		2,780		2,873,241
					3,609,823
Panama | 4.9%
Republic of Panama:
4.000%, 09/22/24	USD		665		667,494
3.750%, 03/16/25	USD		3,555		3,497,231
7.125%, 01/29/26	USD		285		355,894
8.875%, 09/30/27	USD		1,595		2,217,050
9.375%, 04/01/29	USD		500		722,500
6.700%, 01/26/36	USD		4,015		4,787,887
					12,248,056
Paraguay | 1.0%
Republic of Paraguay:
4.625%, 01/25/23	USD		650		633,750
6.100%, 08/11/44	USD		1,410		1,360,650
6.100%, 08/11/44 (c)	USD		550		530,750
					2,525,150
Poland | 1.0%
Republic of Poland:
6.375%, 07/15/19	USD		560		637,605
5.000%, 03/23/22	USD		1,620		1,793,421
					2,431,026
Portugal | 3.9%
Republic of Portugal:
5.125%, 10/15/24	USD		6,770		6,924,356
5.125%, 10/15/24 (c)	USD		2,775		2,838,270
					9,762,626
Romania | 1.9%
Romania Government Bonds:
6.750%, 02/07/22	USD		950		1,118,625
4.875%, 01/22/24	USD		1,560		1,678,560
6.125%, 01/22/44	USD		1,780		2,089,275
					4,886,460
Russia | 1.0%
Russia Foreign Bonds:
4.875%, 09/16/23	USD		1,800		1,832,400
5.625%, 04/04/42	USD		800		761,000
					2,593,400

Description	Security Currency	Principal Amount (000)		Value
Rwanda | 0.7%
Republic of Rwanda,
6.625%, 05/02/23	USD		1,915	$	1,839,243
Senegal | 0.7%
Republic of Senegal:
8.750%, 05/13/21	USD		1,250		1,315,625
6.250%, 07/30/24	USD		550		492,250
					1,807,875
Serbia | 1.0%
Republic of Serbia:
5.875%, 12/03/18	USD		815		860,640
4.875%, 02/25/20	USD		500		513,375
7.250%, 09/28/21	USD		905		1,026,496
					2,400,511
Slovenia | 7.4%
Republic of Slovenia:
5.850%, 05/10/23	USD		9,505		10,805,848
5.250%, 02/18/24	USD		6,915		7,638,166
					18,444,014
Sri Lanka | 0.9%
Republic of Sri Lanka:
5.875%, 07/25/22	USD		350		320,425
6.125%, 06/03/25	USD		900		803,250
6.850%, 11/03/25 (c)	USD		1,300		1,218,750
					2,342,425
Turkey | 1.4%
Republic of Turkey:
7.500%, 07/14/17	USD		910		975,520
7.375%, 02/05/25	USD		1,140		1,335,225
4.875%, 04/16/43	USD		1,450		1,280,350
					3,591,095
Ukraine | 4.9%
Ukraine Government Bonds:
7.750%, 09/01/19 (c)	USD		1,593		1,489,096
7.750%, 09/01/20 (c)	USD		2,271		2,100,675
7.750%, 09/23/20	USD		225		181,125
7.750%, 09/01/21 (c)	USD		1,736		1,588,440
7.750%, 09/01/22 (c)	USD		1,528		1,390,480
7.750%, 09/01/23 (c)	USD		1,405		1,260,988
7.750%, 09/01/24 (c)	USD		1,005		894,450
7.750%, 09/01/25 (c)	USD		1,030		906,400
7.750%, 09/01/26 (c)	USD		1,055		923,125
7.750%, 09/01/27 (c)	USD		1,005		876,863
0.000%, 05/31/40	USD		1,994		802,585
					12,414,227

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)
Venezuela | 0.9%
Republic of Venezuela:
9.250%, 09/15/27	USD		1,680	$	697,200
9.250%, 05/07/28	USD		1,145		452,275
11.950%, 08/05/31	USD		805		360,238
9.375%, 01/13/34	USD		1,175		467,062
7.000%, 03/31/38	USD		565		213,288
					2,190,063
Vietnam | 1.0%
Socialist Republic of Vietnam:
6.750%, 01/29/20	USD		1,155		1,269,056
4.800%, 11/19/24	USD		1,265		1,218,065
					2,487,121
Total Foreign Government Obligations (Identified cost $209,455,918)					205,353,036
Quasi Government Bonds | 3.0%
Mexico | 1.0%
Petroleos Mexicanos:
8.000%, 05/03/19	USD		1,085		1,197,297
6.500%, 06/02/41	USD		697		606,390
5.500%, 06/27/44	USD		388		293,848
5.625%, 01/23/46	USD		405		311,931
					2,409,466
Tunisia | 1.4%
Banque Centrale de Tunisie SA:
5.750%, 01/30/25	USD		1,815		1,579,050
5.750%, 01/30/25 (c)	USD		2,295		1,996,650
					3,575,700
Venezuela | 0.6%
Petroleos de Venezuela SA:
5.375%, 04/12/27	USD		2,925		1,069,380
9.750%, 05/17/35	USD		715		300,300
5.500%, 04/12/37	USD		286		104,748
					1,474,428
Total Quasi Government Bonds (Identified cost $8,029,298)					7,459,594

Description	Security Currency	Principal Amount (000)		Value
US Treasury Securities | 3.1%
US Treasury Notes:
1.625%, 11/30/20	USD		3,900	$	3,878,062
2.250%, 11/15/25	USD		3,900		3,892,383
Total US Treasury Securities (Identified cost $7,767,587)					7,770,445
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 | 10.1%
State Street Institutional Treasury Money Market Fund (Identified cost $25,186,042)			25,186,042		25,186,042
Description		Number of Contracts		Value
Purchased Option | 0.0%
USD vs MXN January 16 17 Put, Expires 01/19/16 (Identified cost $187,506)			185,100	$	59,232
Total Investments | 99.3% (Identified cost $254,140,026) (d), (g)				$	248,853,574
Cash and Other Assets in Excess of Liabilities | 0.7%					1,710,510
Net Assets | 100.0%				$	250,564,084

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

Annual Report 55

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at December 31, 2015:

Currency	Counterparty	Settlement Date	Quantity	Cost on Origination Date^		Unrealized Appreciation			Unrealized Depreciation
Forward Currency Purchase Contracts
BRL	BRC	01/05/16	2,762,810	707,542			$	—		$	9,201
BRL	BRC	01/05/16	3,018,355	772,985				—			10,052
BRL	BRC	01/05/16	5,781,165	1,454,564				6,710			—
BRL	HSB	01/05/16	2,762,810	707,542				—			9,201
BRL	JPM	01/05/16	2,762,810	707,542				—			9,201
BRL	JPM	01/05/16	3,333,744	853,755				—			11,103
BRL	JPM	01/05/16	6,096,554	1,534,110				6,883			—
BRL	SCB	01/05/16	2,762,810	707,542				—			9,201
BRL	SCB	01/05/16	3,019,128	773,184				—			10,055
BRL	SCB	01/05/16	5,781,938	1,455,308				6,161			—
BRL	UBS	01/05/16	2,762,810	707,542				—			9,201
BRL	UBS	01/05/16	5,525,620	1,390,852				5,829			—
EUR	SCB	01/15/16	3,297,859	14,001,639	PLN			16,164			—
INR	BRC	01/15/16	104,626,178	1,550,706				28,229			—
INR	JPM	01/15/16	104,626,178	1,551,396				27,539			—
INR	SCB	01/15/16	104,626,178	1,551,281				27,654			—
INR	UBS	01/15/16	104,626,177	1,551,051				27,884			—
MXN	JPM	01/15/16	7,278,585	421,378				639			—
NGN	SCB	04/25/16	94,782,810	412,099				44,127			—
PLN	BRC	01/15/16	19,119,175	4,397,007	EUR			93,376			—
PLN	JPM	01/15/16	19,119,175	4,397,234	EUR			93,129			—
PLN	SCB	01/15/16	19,119,175	4,398,499	EUR			91,754			—
PLN	UBS	01/15/16	19,119,174	4,396,981	EUR			93,405			—
TWD	JPM	01/28/16	4,273,100	130,266				—			161
Total Forward Currency Purchase Contracts							$	569,483		$	77,376
Forward Currency Sale Contracts:
BRL	BRC	01/05/16	2,762,810	738,542			$	40,201		$	—
BRL	BRC	01/05/16	3,018,355	773,144				10,211			—
BRL	BRC	01/05/16	5,781,165	1,480,528				19,254			—
BRL	BRC	02/02/16	5,781,165	1,439,175				—			7,731
BRL	HSB	01/05/16	2,762,810	739,451				41,110			—
BRL	JPM	01/05/16	2,762,810	739,075				40,734			—
BRL	JPM	01/05/16	3,333,744	853,712				11,059			—
BRL	JPM	01/05/16	6,096,554	1,561,297				20,304			—
BRL	JPM	02/02/16	6,096,554	1,517,877				—			7,964
BRL	SCB	01/05/16	2,762,810	739,471				41,130			—
BRL	SCB	01/05/16	3,019,128	773,144				10,015			—
BRL	SCB	01/05/16	5,781,938	1,480,726				19,256			—
BRL	SCB	02/02/16	5,781,938	1,439,905				—			7,194
BRL	UBS	01/05/16	2,762,810	739,056				40,715			—
BRL	UBS	01/05/16	5,525,620	1,415,084				18,403			—
BRL	UBS	02/02/16	5,525,620	1,376,132				—			6,816

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

56 Annual Report

Lazard Explorer Total Return Portfolio (concluded)

Forward Currency Contracts open at December 31, 2015 (concluded):

Currency	Counterparty	Settlement Date	Quantity	Cost on Origination Date^	Unrealized Appreciation			Unrealized Depreciation
Forward Currency Sale Contracts (concluded)
MXN	BRC	01/15/16	44,510,267	2,604,768		$	24,036		$	—
MXN	HSB	01/15/16	44,510,267	2,604,082			23,350			—
MXN	JPM	01/15/16	44,510,267	2,606,140			25,408			—
MXN	SCB	01/15/16	44,510,267	2,605,606			24,874			—
MXN	UBS	01/15/16	44,510,269	2,605,675			24,943			—
NGN	BRC	03/09/16	46,590,768	218,736			—			11,590
NGN	HSB	03/09/16	85,669,864	401,264			—			22,252
NGN	SCB	03/09/16	132,060,000	620,000			—			32,850
NGN	SCB	04/25/16	94,782,810	397,412			—			58,814
THB	JPM	01/15/16	87,319,120	2,410,000			—			15,854
TWD	BRC	01/28/16	21,752,420	661,067			—			1,238
TWD	JPM	01/28/16	21,752,420	660,967			—			1,338
TWD	JPM	01/28/16	22,321,500	690,000			10,368			—
TWD	SCB	01/28/16	20,710,400	640,000			9,422			—
Total Forward Currency Sale Contracts							454,793			173,641
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts						$	1,024,276		$	251,017

^ In USD unless otherwise indicated.

Credit Default Swap Agreements open at December 31, 2015:

Referenced Obligation	Counterparty	Notional Amount	Expiration Date	Buy/ Sell	Receive (Pay) Rate	S&P Credit Rating	Value			Upfront Premiums Paid (Received)				Unrealized Depreciation
CDX EM 24	BRC	294,000	12/20/20	Sell	1.000%	CCC – AA-	$	(32,655	)		$	(31,893	)		$	762
CDX EM 24	BRC	1,960,000	12/20/20	Sell	1.000	CCC – AA-		(217,700	)			(213,640	)			4,060
CDX EM 24	JPM	2,940,000	12/20/20	Sell	1.000	CCC – AA-		(326,551	)			(318,255	)			8,296
CDX EM 24	JPM	2,450,000	12/20/20	Sell	1.000	CCC – AA-		(272,125	)			(264,600	)			7,525
Total Credit Default Swap Agreements							$	(849,031	)		$	(828,388	)		$	20,643

Interest Rate Swap Agreement open at December 31, 2015:
Currency	Counterparty	Notional Amount	Expiration Date	Receive (Pay) Rate	Variable Rate	Unrealized Depreciation
BRL	JPM	6,370,787	01/02/19	14.67%	Brazil Cetip Interbank Deposit Rate	$88,218

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

Annual Report 57

Description	Security Currency	Principal Amount (000)		Value
Lazard Emerging Markets Income Portfolio
Foreign Government Obligations | 21.9%
Brazil | 3.9%
Brazil Letras do Tesouro Nacional, 0.000%, 04/01/16	BRL		500	$	122,123
Brazil NTN-B, 6.000%, 08/15/16	BRL		220		154,085
Brazil NTN-F, 10.000%, 01/01/17	BRL		940		225,974
					502,182
Indonesia | 0.3%
Indonesia Government Bond, 7.875%, 04/15/19	IDR		650,000		46,006
Mexico | 8.3%
Mexican Bonos:
6.250%, 06/16/16	MXN		5,000		293,746
4.750%, 06/14/18	MXN		6,100		355,633
6.500%, 06/10/21	MXN		2,150		129,057
Mexican Udibonos, 2.500%, 12/10/20	MXN		5,220		294,608
					1,073,044
Russia | 9.4%
Russian Federal Bond – OFZ, 6.000%, 05/11/16	RUB		90,000		1,215,617
Total Foreign Government Obligations (Identified cost $3,120,865)					2,836,849
Supranationals | 0.3%
European Investment Bank, 7.200%, 07/09/19 (c) (Identified cost $51,184)	IDR		600,000		40,386

Description	Security Currency	Principal Amount (000)		Value
US Treasury Securities | 73.9%
US Treasury Notes:
0.375%, 01/15/16	USD		350	$	350,019
0.375%, 01/31/16	USD		250		250,014
2.000%, 01/31/16	USD		200		200,280
0.375%, 02/15/16	USD		250		250,000
2.125%, 02/29/16	USD		400		401,189
2.625%, 02/29/16	USD		450		451,695
0.375%, 03/15/16	USD		650		650,161
0.375%, 03/31/16	USD		650		650,027
2.250%, 03/31/16	USD		700		703,261
0.250%, 04/15/16	USD		500		499,899
0.375%, 04/30/16	USD		500		499,940
2.000%, 04/30/16	USD		500		502,585
2.625%, 04/30/16	USD		500		503,636
0.250%, 05/15/16	USD		625		624,547
1.750%, 05/31/16	USD		625		628,335
3.250%, 05/31/16	USD		600		606,884
0.500%, 06/15/16	USD		600		599,952
1.500%, 06/30/16	USD		600		602,828
0.625%, 07/15/16	USD		600		600,049
Total US Treasury Securities (Identified cost $9,578,730)					9,575,301

Description	Shares		Value
Short-Term Investment | 5.1%
State Street Institutional Treasury Money Market Fund (Identified cost $657,814)		657,814	$	657,814
Total Investments | 101.2% (Identified cost $13,408,593) (d), (g)			$	13,110,350
Liabilities in Excess of Cash and Other Assets | (1.2)%				(155,264	)
Net Assets | 100.0%			$	12,955,086

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

58  Annual Report

Lazard Emerging Markets Income Portfolio (continued)

Forward Currency Contracts open at December 31, 2015:

Currency	Counterparty	Settlement Date	Quantity		Cost on Origination Date^		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts
BRL	CIT	02/18/16		39,240		12,000	$	—	$	2,224
BRL	CIT	02/18/16		66,234		20,000		—		3,498
BRL	CIT	02/18/16		79,855		25,000		—		5,105
BRL	CIT	02/18/16		543,056		162,000		—		26,702
BRL	CIT	02/18/16		584,870		143,000		2,715		—
BRL	JPM	02/18/16		118,524		35,000		—		5,471
BRL	UBS	01/11/16		561,898		143,874		—		2,136
CLP	BNP	01/15/16		79,671,200		112,000		308		—
CLP	SCB	01/25/16		158,918,700		222,000		1,754		—
CNH	HSB	01/29/16		1,375,000		213,694		—		5,168
CNY	CIT	07/13/16		960,840		153,000		—		9,944
CNY	SCB	01/15/16		3,216,804		499,000		—		5,411
CNY	SCB	01/29/16		8,517,870		1,333,000		—		31,712
COP	SCB	03/18/16		438,588,000		131,000		6,047		—
CZK	JPM	01/15/16		11,308,180		460,000		—		5,088
EUR	CIT	01/13/16		185,000		201,243		—		152
EUR	JPM	01/04/16		192,000		210,437		—		1,781
HUF	CIT	04/13/16		19,131,991		70,512		—		4,679
HUF	JPM	04/13/16		152,289,855		549,000		—		24,973
IDR	JPM	03/24/16		715,800,000		50,000		504		—
IDR	JPM	03/24/16		6,467,748,000		458,706		—		2,371
ILS	JPM	02/17/16		550,018		141,222		240		—
ILS	JPM	05/31/16		264,219		67,558		585		—
INR	JPM	04/25/16		52,594,740		789,000		—		8,041
INR	JPM	07/13/16		15,496,430		229,000		—		1,900
INR	SCB	01/11/16		30,725,310		457,154		6,628		—
KRW	CIT	01/15/16		1,566,864,760		1,318,000		14,640		—
MXN	JPM	01/22/16		5,274,537		309,000		—		3,332
MYR	JPM	02/16/16		2,311,865		536,956		—		1,504
PHP	HSB	01/25/16		8,463,120		179,000		1,082		—
PLN	JPM	01/04/16		3,088,055		799,000		—		11,763
PLN	JPM	01/25/16		2,861,891		740,042		—		10,792
RON	CIT	01/08/16		623,050		161,237		—		11,400
RON	CIT	01/08/16		754,930		183,000		—		1,448
RON	JPM	01/08/16		35,419		9,169		—		651
RON	JPM	01/08/16		214,085		54,259		—		2,774
RON	JPM	01/08/16		548,033		133,000		—		1,204
RUB	CIT	01/25/16		13,148,700		205,000		—		25,521
RUB	CIT	03/04/16		102,219,483		1,483,000		—		101,767
RUB	JPM	02/24/16		9,532,110		133,000		—		3,910
SGD	HSB	01/08/16		1,223,285		872,000		—		9,357
THB	SCB	02/23/16		23,169,576		639,514		3,542		—
TRY	CIT	02/03/16		1,282,210		434,000		1,877		—

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

Annual Report  59

Lazard Emerging Markets Income Portfolio (concluded)

Forward Currency Contracts open at December 31, 2015 (concluded):

Currency	Counterparty		Settlement Date	Quantity		Cost on Origination Date^		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts (concluded)
TWD		SCB	01/07/16		8,850,880		272,000	$	—	$	2,830
ZAR		HSB	01/14/16		3,843,089		262,655		—		14,542
ZAR		JPM	01/14/16		1,774,338		112,000		2,553		—
ZAR		JPM	01/14/16		2,396,250		150,000		4,704		—
Total Forward Currency Purchase Contracts								$	47,179	$	349,151
Forward Currency Sale Contracts
BRL		CIT	01/11/16		533,680		140,000	$	5,380	$	—
BRL		CIT	02/18/16		85,618		26,000		4,669		—
BRL		CIT	02/18/16		482,654		118,968		—		1,281
BRL		CIT	02/18/16		534,789		163,140		29,902		—
BRL		UBS	09/30/16		620,542		137,000		—		6,435
CNY		SCB	01/15/16		692,339		106,000		—		233
CNY		SCB	01/15/16		1,354,185		210,000		2,213		—
CNY		SCB	07/13/16		960,840		144,923		1,867		—
CZK		JPM	01/15/16		685,750		28,000		413		—
EUR		JPM	01/04/16		6,000		6,644		123		—
EUR		JPM	01/04/16		186,000		199,573		—		2,562
EUR		JPM	02/04/16		192,000		210,594		1,784		—
HUF		JPM	01/14/16		81,013,800		280,000		855		—
HUF		JPM	01/14/16		82,380,581		286,741		2,886		—
IDR		SCB	01/22/16		744,544,000		53,000		—		610
ILS		JPM	02/17/16		254,392		65,712		283		—
ILS		JPM	02/17/16		559,845		145,000		1,010		—
INR		SCB	01/11/16		7,091,700		105,000		—		2,045
MXN		JPM	01/22/16		5,076,050		295,126		961		—
PHP		SCB	01/25/16		895,890		18,746		—		317
PLN		JPM	01/04/16		226,164		57,000		—		656
PLN		JPM	01/04/16		2,861,891		740,463		10,882		—
RON		JPM	01/08/16		586,394		150,000		8,979		—
RUB		CIT	01/25/16		7,986,720		112,001		2,982		—
RUB		CIT	01/25/16		89,237,700		1,243,298		25,205		—
RUB		CIT	02/09/16		13,270,200		204,000		23,601		—
SGD		JPM	01/08/16		81,781		58,000		330		—
TRY		CIT	02/03/16		453,300		150,000		—		4,096
TRY		JPM	02/03/16		416,134		138,000		—		3,462
ZAR		JPM	01/14/16		2,000,919		133,000		3,819		—
ZAR		JPM	01/14/16		2,199,726		143,000		984		—
Total Forward Currency Sale Contracts									129,128		21,697
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts								$	176,307	$	370,848

^ In USD unless otherwise indicated.

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

60  Annual Report

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2015

(a)	Non-income producing security.
(b)	Security valued using Level 2 inputs, based on reference to a similar security which was trading on an active market, under 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.” At December 31, 2015, the percentage of net assets for each Portfolio was as follows:

Portfolio	Percentage of Net Assets
Emerging Markets Equity		1.1	%
Emerging Markets Equity Advantage		2.4
Emerging Markets Equity Blend		0.4
Emerging Markets Multi Asset		2.7
Emerging Markets Debt		8.2
Explorer Total Return		15.5
Emerging Markets Income		0.3

(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:

Portfolio	Aggregate Cost			Aggregate Gross Unrealized Appreciation			Aggregate Gross Unrealized Depreciation			Net Unrealized Depreciation
Emerging Markets Equity		$	11,738,660,317		$	931,630,652		$	3,548,200,542		$	(2,616,569,890	)
Emerging Markets Core Equity			113,571,240			2,163,604			11,042,143			(8,878,539	)
Developing Markets Equity			428,576,619			25,527,373			99,437,316			(73,909,943	)
Emerging Markets Equity Advantage			3,035,162			59,424			446,104			(386,680	)
Emerging Markets Equity Blend			352,556,564			23,561,567			84,545,933			(60,984,366	)
Emerging Markets Multi Asset			191,370,158			6,081,511			29,332,289			(23,250,778	)
Emerging Markets Debt			289,617,941			2,394,180			31,220,900			(28,826,720	)
Explorer Total Return			254,296,516			3,392,863			8,835,805			(5,442,942	)
Emerging Markets Income			13,530,238			952			420,840			(419,888	)

(e)	Issue in default.
(f)	Step up bonds are securities which increase the interest payment rate at a specified point in time. Rate shown reflects rate in effect at December 31, 2015 which may step up at a future date.
(g)	The Portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts and swap agreements.

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

Annual Report  61

Security Abbreviations:
ADR	— American Depositary Receipt
GDR	— Global Depositary Receipt
JSC	— Joint Stock Company
NTN-B	— Brazil Sovereign “Nota do Tesouro Nacional” Series B
Currency Abbreviations:
BRL	— Brazilian Real
CLP	— Chilean Peso
CNH	— Yuan Renminbi
CNY	— Chinese Renminbi
COP	— Colombian Peso
CZK	— Czech Koruna
DOP	— Dominican Republic Peso
EGP	— Egyptian Pound
EUR	— Euro
HUF	— Hungarian Forint
IDR	— Indonesian Rupiah
ILS	— Israeli Shekel
INR	— Indian Rupee
JPY	— Japanese Yen
KRW	— South Korean Won
KZT	— Kazakhstan Tenge
MXN	— Mexican New Peso
Counterparty Abbreviations:
BNP	— BNP Paribas SA
BRC	— Barclays Bank PLC
CIT	— Citibank NA
HSB	— HSBC Bank USA NA
JPM	— JPMorgan Chase Bank NA
SCB	— Standard Chartered Bank
UBS	— UBS AG

NTN-F	— Brazil Sovereign “Nota do Tesouro Nacional” Series F
OJSC	— Open Joint Stock Company
PJSC	— Public Joint Stock Company
REIT	— Real Estate Investment Trust
MYR	— Malaysian Ringgit
NGN	— Nigerian Naira
PEN	— Peruvian Nuevo Sol
PHP	— Philippine Peso
PLN	— Polish Zloty
RON	— New Romanian Leu
RSD	— Serbian Dinar
RUB	— Russian Ruble
SGD	— Singapore Dollar
THB	— Thai Baht
TRY	— New Turkish Lira
TWD	— Taiwan Dollar
UGX	— Ugandan Shilling
USD	— United States Dollar
UYU	— Uruguayan Peso
ZAR	— South African Rand
ZMW	— Zambian Kwacha

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

62  Annual Report

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

Industry*	Lazard Emerging Markets Equity Portfolio			Lazard Emerging Markets Core Equity Portfolio			Lazard Developing Markets Equity Portfolio			Lazard Emerging Markets Equity Advantage Portfolio			Lazard Emerging Markets Equity Blend Portfolio			Lazard Emerging Markets Multi Asset Portfolio
Agriculture		—	%		1.1	%		—	%		—	%		0.5	%		0.3	%
Alcohol & Tobacco		3.4			—			—			2.4			1.4			0.8
Apparel, Textiles & Luxury Goods		—			1.9			—			1.6			0.8			0.9
Automotive		3.6			2.6			2.3			3.1			3.5			2.4
Banking		22.1			16.5			24.7			15.1			21.2			15.3
Cable Television		—			1.6			—			1.2			—			0.8
Chemicals		0.7			—			—			2.9			—			—
Commercial Services		2.7			2.1			0.7			1.2			2.1			1.4
Computer Software & Services		6.7			5.2			6.5			3.5			8.3			5.3
Construction & Engineering		—			—			3.8			1.2			2.0			1.0
Construction Materials		—			2.0			2.4			0.3			1.5			0.9
Consumer Products		—			3.6			2.7			0.5			2.3			2.1
Diamonds & Precious Stones		—			—			—			—			—			0.1
Diversified		0.9			—			—			—			1.1			0.6
Electric		0.2			—			—			4.1			—			—
Energy Exploration & Production		2.8			—			—			2.6			0.9			0.8
Energy Integrated		4.3			—			5.9			4.6			5.4			3.0
Energy Services		—			—			0.6			0.2			—			—
Financial Services		3.1			1.6			1.1			2.6			3.6			2.2
Food & Beverages		—			5.0			0.8			0.9			—			0.5
Forest & Paper Products		1.1			3.2			—			1.1			1.2			1.3
Gas Utilities		—			1.1			—			—			—			—
Health Services		—			1.0			—			0.4			—			—
Household & Personal Products		2.1			2.3			—			1.0			0.6			0.7
Housing		1.3			—			0.9			1.5			—			—
Insurance		3.0			4.5			3.1			4.1			2.2			2.3
Leisure & Entertainment		0.6			1.9			6.5			1.0			2.5			1.6
Manufacturing		4.1			3.1			6.0			4.3			5.9			3.2
Medical Products		—			—			—			0.4			—			—
Metals & Mining		1.8			—			3.3			1.8			1.3			0.7
Pharmaceutical & Biotechnology		—			2.9			7.1			2.1			3.1			2.1
Real Estate Management & Development		—			1.8			1.4			2.4			1.4			1.3
Retail		4.1			4.8			6.5			4.2			3.6			2.6
Semiconductors & Components		10.1			12.4			10.5			11.1			12.1			8.4
Technology		4.4			—			—			2.2			0.9			0.5
Technology Hardware		1.1			2.7			—			1.2			1.6			1.5
Telecommunications		11.3			5.0			—			6.5			5.4			4.2
Transportation		2.2			3.4			1.0			1.7			2.0			1.6
Water		—			1.4			—			—			0.4			0.6
Subtotal		97.7			94.7			97.8			95.0			98.8			71.0
Foreign Government Obligations		—			—			—			—			—			16.5
US Treasury Securities		—			—			—			—			—			8.0
Short-Term Investments		1.3			5.2			2.2			2.6			—			8.0
Total Investments		99.0	%		99.9	%		100.0	%		97.6	%		98.8	%		103.5	%

* 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  63

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

Industry*	Lazard Emerging Markets Debt Portfolio			Lazard Explorer Total Return Portfolio
Banking		0.1	%		1.4	%
Computer Software & Services		0.1			0.2
Diamonds & Precious Stones		—			0.2
Electric		0.5			0.3
Energy Exploration & Production		2.3			1.1
Energy Integrated		1.6			0.6
Energy Services		—			0.3
Gas Utilities		—			0.1
Transportation		0.5			—
Subtotal		5.1			4.2
Foreign Government Obligations		92.0			81.9
US Treasury Securities		—			3.1
Short-Term Investments		1.2			10.1
Total Investments		98.3	%		99.3	%

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

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

64  Annual Report

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Annual Report  65

The Lazard Funds, Inc. Statements of Assets and Liabilities

	Lazard				Lazard Emerging				Lazard
	Emerging Markets				Markets Core				Developing Markets
December 31, 2015	Equity Portfolio				Equity Portfolio				Equity Portfolio
ASSETS
Investments in securities, at value		$	9,025,171,231			$	104,692,701			$	354,666,676
Non-controlled affiliated issuers, at value (Note 5)			96,919,196				—				—
Cash			—				—				—
Foreign currency			4,597,206				10,555				5,372
Receivables for:
Capital stock sold			118,946,378				2,257,484				3,305,982
Investments sold			33,123,987				—				392,022
Dividends and interest			13,805,206				18,450				180,014
Amount due from Investment Manager (Note 3)			—				—				—
Gross unrealized appreciation on forward currency contracts			—				—				—
Deferred offering costs (Note 2(h))			383				—				—
Total assets			9,292,563,587				106,979,190				358,550,066
LIABILITIES
Due to custodian			—				—				—
Cash collateral due to broker			—				—				—
Payables for:
Management fees			8,216,099				70,134				302,061
Accrued distribution fees			187,421				423				2,123
Accrued custodian fees			1,822,671				41,163				96,418
Capital stock redeemed			59,585,630				493,542				2,917,656
Investments purchased			4,287,756				1,568,628				266,309
Dividends			—				—				—
Gross unrealized depreciation on:
Forward currency contracts			—				—				—
Swap agreements			—				—				—
Line of credit outstanding			—				—				—
Premium for swap agreements sold			—				—				—
Accrued offering costs (Note 2(h))			—				—				—
Other accrued expenses and payables			2,493,884				40,718				274,223
Total liabilities			76,593,461				2,214,608				3,858,790
Net assets		$	9,215,970,126			$	104,764,582			$	354,691,276
NET ASSETS
Paid in capital		$	12,396,585,192			$	115,709,962			$	543,302,411
Undistributed (distributions in excess of) net investment income			64,636,833				(273,866	)			(1,734,548	)
Accumulated net realized loss			(683,114,140	)			(2,821,946	)			(133,012,161	)
Net unrealized appreciation (depreciation) on:
Investments			(2,410,760,065	)			(7,849,931	)			(53,863,441	)
Non-controlled affiliated issuers			(151,227,091	)			—				—
Foreign currency and forward currency contracts			(150,603	)			363				(985	)
Swap agreements			—				—				—
Net assets		$	9,215,970,126			$	104,764,582			$	354,691,276
Institutional Shares
Net assets		$	8,238,637,657			$	102,420,583			$	343,788,099
Shares of capital stock outstanding*			612,915,207				11,913,811				38,037,272
Net asset value, offering and redemption price per share		$	13.44			$	8.60			$	9.04
Open Shares
Net assets		$	832,706,433			$	2,343,999			$	10,903,177
Shares of capital stock outstanding*			60,265,874				273,190				1,205,398
Net asset value, offering and redemption price per share		$	13.82			$	8.58			$	9.05
R6 Shares
Net assets		$	144,626,036				—				—
Shares of capital stock outstanding*			10,761,543				—				—
Net asset value, offering and redemption price per share		$	13.44				—				—
Cost of investments in securities		$	11,434,794,296			$	112,542,632			$	408,340,708
Cost of non-controlled affiliated issuers		$	248,146,287			$	—			$	—
Cost of foreign currency		$	4,572,429			$	10,441			$	5,372

* $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total.

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

66  Annual Report

Lazard				Lazard Emerging				Lazard				Lazard				Lazard Explorer				Lazard
Emerging Markets Equity				Markets Equity				Emerging Markets				Emerging Markets				Total Return				Emerging Markets
Advantage Portfolio				Blend Portfolio				Multi Asset Portfolio				Debt Portfolio				Portfolio				Income Portfolio
	$	2,648,482			$	291,572,198			$	168,119,380			$	260,791,221			$	248,853,574			$	13,110,350
		—				—				—				—				—				—
		—				—				—				192,794				241,912				—
		227				64,173				96,276				209,685				14,130				23,834
		115,175				501,165				273,003				458,547				875,744				—
		—				8,323,977				33,640				234,267				113,437				—
		2,643				295,110				578,244				4,006,141				3,213,080				55,672
		20,986				—				—				—				—				3,069
		—				—				422,698				117,476				1,024,276				176,307
		20,526				—				—				—				—				—
		2,808,039				300,756,623				169,523,241				266,010,131				254,336,153				13,369,232
		33				—				—				—				—				—
		—				—				—				—				130,000				—
		—				271,624				141,946				190,006				209,907				—
		20				1,456				164				1,469				310				33
		22,770				104,685				79,618				59,080				43,056				14,471
		—				836,642				36,129				174,191				1,815,808				—
		—				89,471				6,151,097				—				328,083				—
		—				—				—				8,835				650				—
		—				—				535,118				96,405				251,017				370,848
		—				—				2,775				—				108,861				—
		—				4,230,000				—				—				—				—
		—				—				106,075				—				828,388				—
		46,283				—				—				—				—				—
		26,060				258,048				79,817				53,876				55,989				28,794
		95,166				5,791,926				7,132,739				583,862				3,772,069				414,146
	$	2,712,873			$	294,964,697			$	162,390,502			$	265,426,269			$	250,564,084			$	12,955,086
	$	3,317,615			$	421,144,139			$	206,089,219			$	334,871,029			$	279,869,127			$	13,768,877
		(19,129	)			(2,005,101	)			(1,544,549	)			(5,377,175	)			(2,997,827	)			(200,481	)
		(200,996	)			(79,021,012	)			(22,651,332	)			(39,736,127	)			(21,684,323	)			(118,880	)
		(384,611	)			(45,151,059	)			(19,381,619	)			(24,284,373	)			(5,286,452	)			(298,243	)
		—				—				—				—				—				—
		(6	)			(2,270	)			(118,442	)			(47,085	)			772,420				(196,187	)
		—				—				(2,775	)			—				(108,861	)			—
	$	2,712,873			$	294,964,697			$	162,390,502			$	265,426,269			$	250,564,084			$	12,955,086
	$	2,617,760			$	287,857,210			$	161,629,219			$	258,516,510			$	249,222,008			$	12,799,933
		324,964				33,751,879				21,518,578				33,508,407				29,101,055				1,519,965
	$	8.06			$	8.53			$	7.51			$	7.71			$	8.56			$	8.42
	$	95,113			$	7,107,487			$	761,283			$	6,909,759			$	1,342,076			$	155,153
		11,805				831,641				101,155				887,388				155,824				18,495
	$	8.06			$	8.55			$	7.53			$	7.79			$	8.61			$	8.39
		—				—				—				—				—				—
		—				—				—				—				—				—
		—				—				—				—				—				—
	$	3,033,093			$	336,525,302			$	187,470,679			$	285,075,594			$	254,140,026			$	13,408,593
	$	—			$	—			$	—			$	—			$	—			$	—
	$	227			$	63,910			$	97,300			$	213,957			$	13,900			$	23,885

Annual Report  67

The Lazard Funds, Inc. Statements of Operations

	Lazard				Lazard Emerging				Lazard
	Emerging Markets				Markets Core				Developing Markets
For the Period Ended December 31, 2015	Equity Portfolio				Equity Portfolio				Equity Portfolio
Investment Income
Income
Dividends
Unaffiliated issuers		$	365,768,625			$	1,017,596			$	7,107,246
Non-controlled affiliated issuers (Note 5)			3,613,673				—				—
Interest			—				—				—
Total investment income*			369,382,298				1,017,596				7,107,246
Expenses
Management fees (Note 3)			126,245,785				630,616				4,060,686
Custodian fees			7,933,318				155,794				412,433
Distribution fees (Open Shares)			3,072,190				5,772				28,984
Administration fees			1,412,459				62,614				131,215
Shareholders’ reports			1,162,641				5,390				74,073
Shareholders’ services			757,439				27,196				44,361
Professional services			494,885				38,683				78,806
Directors’ fees and expenses			493,832				5,839				19,175
Registration fees			95,934				39,809				36,081
Amortization of offering costs (Note 2(h))			6,986				—				—
Organization expenses			1,138				—				—
Other†			351,108				7,187				20,074
Total gross expenses			142,027,715				978,900				4,905,888
Management fees waived and expenses reimbursed			—				(152,171	)			—
Administration and shareholders’ services fees waived			(6,114	)			—				—
Total net expenses			142,021,601				826,729				4,905,888
Net investment income			227,360,697				190,867				2,201,358
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Forward Currency Contracts and Swap Agreements
Net realized loss on:
Investments**			(603,564,608	)			(2,451,928	)			(51,505,989	)
Non-controlled affiliated issuers			(26,545,218	)			—				—
Foreign currency and forward currency contracts			(6,379,020	)			(67,859	)			(644,427	)
Swap agreements			—				—				—
Total net realized loss on investments, foreign currency, forward currency contracts and swap agreements			(636,488,846	)			(2,519,787	)			(52,150,416	)
Net change in unrealized appreciation (depreciation) on:
Investments***			(2,161,553,218	)			(6,843,351	)			(6,261,803	)
Non-controlled affiliated issuers			(151,227,091	)			—				—
Foreign currency and forward currency contracts			(154,196	)			411				7,348
Purchased options			—				—				—
Swap agreements			—				—				—
Total net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts, options and swap agreements			(2,312,934,505	)			(6,842,940	)			(6,254,455	)
Net realized and unrealized loss on investments, foreign currency, forward currency contracts, options and swap agreements			(2,949,423,351	)			(9,362,727	)			(58,404,871	)
Net decrease in net assets resulting from operations		$	(2,722,062,654	)		$	(9,171,860	)		$	(56,203,513	)
* Net of foreign withholding taxes of		$	48,559,750			$	155,200			$	780,856
** Net of foreign capital gains taxes of		$	553,020			$	—			$	370,380
*** Includes net change in unrealized foreign capital gains taxes of		$	(1,137,000	)		$	—			$	37,843
† Includes interest on line of credit of		$	6,295			$	474			$	2,411

(a) From the Portfolio’s commencement of operations on May 29, 2015.

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

68  Annual Report

Lazard				Lazard Emerging				Lazard				Lazard				Lazard Explorer				Lazard
Emerging Markets Equity				Markets Equity				Emerging Markets				Emerging Markets				Total Return				Emerging Markets
Advantage Portfolio (a)				Blend Portfolio				Multi Asset Portfolio				Debt Portfolio				Portfolio				Income Portfolio
	$	42,558			$	11,759,736			$	2,752,814			$	—			$	—			$	—
		—				—				—				—				—				—
		—				—				2,309,366				20,608,219				11,063,991				115,150
		42,558				11,759,736				5,062,180				20,608,219				11,063,991				115,150
		13,719				4,769,825				1,796,459				2,919,300				2,560,298				75,715
		54,537				463,774				316,988				240,297				160,788				59,032
		145				201,914				2,341				6,707				13,182				349
		29,074				145,398				85,930				122,984				101,207				52,331
		1,772				67,035				21,847				14,287				9,744				4,126
		17,546				171,481				27,734				27,899				27,772				25,957
		36,850				85,490				75,871				62,014				50,577				41,486
		3,822				22,620				10,506				18,073				13,299				4,178
		1,472				61,609				39,288				74,418				45,560				26,787
		28,901				—				—				—				—				15,249
		4,787				—				—				—				—				—
		1,054				32,547				10,716				25,765				10,537				5,418
		193,679				6,021,693				2,387,680				3,511,744				2,992,964				310,628
		(152,588	)			—				(49,381	)			(12,130	)			(8,378	)			(186,622	)
		(23,164	)			—				—				—				—				(18,750	)
		17,927				6,021,693				2,338,299				3,499,614				2,984,586				105,256
		24,631				5,738,043				2,723,881				17,108,605				8,079,405				9,894
		(200,996	)			(67,246,602	)			(16,005,614	)			(42,762,957	)			(21,994,178	)			(227,292	)
		—				—				—				—				—				—
		(1,080	)			(445,416	)			(512,413	)			(1,008,629	)			(2,439,048	)			(564,229	)
		—				—				(147,116	)			—				(243,692	)			—
		(202,076	)			(67,692,018	)			(16,665,143	)			(43,771,586	)			(24,676,918	)			(791,521	)
		(384,611	)			582,893				(7,382,866	)			(8,078,494	)			478,836				(183,782	)
		—				—				—				—				—				—
		(6	)			(1,953	)			62,490				292,672				946,553				(182,718	)
		—				—				(14,657	)			—				(128,274	)			—
		—				—				199,473				—				558,504				—
		(384,617	)			580,940				(7,135,560	)			(7,785,822	)			1,855,619				(366,500	)
		(586,693	)			(67,111,078	)			(23,800,703	)			(51,557,408	)			(22,821,299	)			(1,158,021	)
	$	(562,062	)		$	(61,373,035	)		$	(21,076,822	)		$	(34,448,803	)		$	(14,741,894	)		$	(1,148,127	)
	$	6,183			$	1,462,190			$	355,830			$	205,588			$	604			$	765
	$	—			$	236,396			$	47,553			$	38,686			$	(2,221	)		$	—
	$	—			$	(105,859	)		$	(7,198	)		$	—			$	—			$	—
	$	2			$	13,623			$	—			$	10,302			$	—			$	170

Annual Report  69

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

	Lazard Emerging Markets								Lazard Emerging Markets
	Equity Portfolio								Core Equity Portfolio
	Year Ended				Year Ended				Year Ended				Year Ended
	December 31, 2015				December 31, 2014				December 31, 2015				December 31, 2014
Increase (Decrease) in Net Assets
Operations
Net investment income		$	227,360,697			$	289,096,793			$	190,867			$	60,252
Net realized gain (loss) on investments, foreign currency and forward currency contracts			(636,488,846	)			204,425,909				(2,519,787	)			(270,609	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency and forward currency contracts			(2,312,934,505	)			(1,138,493,359	)			(6,842,940	)			(974,052	)
Net decrease in net assets resulting from operations			(2,722,062,654	)			(644,970,657	)			(9,171,860	)			(1,184,409	)
Distributions to shareholders
From net investment income
Institutional Shares			(142,503,178	)			(260,208,938	)			(180,297	)			(325,319	)
Open Shares			(11,377,382	)			(26,512,068	)			—				(42,737	)
R6 Shares			(1,330,764	)			—				—				—
From net realized gains
Institutional Shares			(40,346,125	)			(242,338,939	)			—				—
Open Shares			(3,878,486	)			(31,751,273	)			—				—
R6 Shares			(357,845	)			—				—				—
Return of capital
Institutional Shares			—				—				(88,130	)			(17,144	)
Open Shares			—				—				—				(2,252	)
Net decrease in net assets resulting from distributions			(199,793,780	)			(560,811,218	)			(268,427	)			(387,452	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			2,526,892,552				2,785,687,244				85,622,157				41,489,162
Open Shares			335,817,831				291,205,135				1,562,389				6,581,493
R6 Shares			177,286,490				—				—				—
Net proceeds from reinvestment of distributions
Institutional Shares			169,829,270				443,622,509				213,430				166,092
Open Shares			14,707,059				53,741,798				—				34,510
R6 Shares			475,012				—				—				—
Cost of shares redeemed
Institutional Shares			(3,976,707,530	)			(2,660,246,028	)			(14,024,038	)			(4,037,695	)
Open Shares			(732,854,550	)			(975,340,501	)			(4,268,230	)			(1,455,720	)
R6 Shares			(8,971,555	)			—				—				—
Net increase (decrease) in net assets from capital stock transactions			(1,493,525,421	)			(61,329,843	)			69,105,708				42,777,842
Redemption fees (Note 2(j))
Institutional Shares			85,894				67,217				484				—
Open Shares			24,702				27,027				—				282
Net increase in net assets from redemption fees			110,596				94,244				484				282
Total increase (decrease) in net assets			(4,415,271,259	)			(1,267,017,474	)			59,665,905				41,206,263
Net assets at beginning of period			13,631,241,385				14,898,258,859				45,098,677				3,892,414
Net assets at end of period*		$	9,215,970,126			$	13,631,241,385			$	104,764,582			$	45,098,677
*Includes undistributed (distributions in excess of) net investment income of		$	64,636,833			$	(947,337	)		$	(273,866	)		$	(305,533	)
(a) The Portfolio commenced operations on May 29, 2015.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			707,314,715				679,948,606				4,141,159				332,077
Shares sold			155,548,937				145,475,699				9,340,075				4,182,945
Shares issued to shareholders from reinvestment of distributions			12,506,774				24,766,476				24,789				17,247
Shares redeemed			(262,455,219	)			(142,876,066	)			(1,592,212	)			(391,110	)
Net increase (decrease)			(94,399,508	)			27,366,109				7,772,652				3,809,082
Shares outstanding at end of period			612,915,207				707,314,715				11,913,811				4,141,159
Open Shares
Shares outstanding at beginning of period			83,551,356				115,276,325				547,633				63,785
Shares sold			21,125,275				14,950,480				161,890				629,779
Shares issued to shareholders from reinvestment of distributions			1,053,670				2,898,847				—				3,584
Shares redeemed			(45,464,427	)			(49,574,296	)			(436,333	)			(149,515	)
Net increase (decrease)			(23,285,482	)			(31,724,969	)			(274,443	)			483,848
Shares outstanding at end of period			60,265,874				83,551,356				273,190				547,633
R6 Shares*
Shares outstanding at beginning of period			—				—
Shares sold			11,383,985				—
Shares issued to shareholders from reinvestment of distributions			34,735				—
Shares redeemed			(657,177	)			—
Net increase			10,761,543				—
Shares outstanding at end of period			10,761,543				—

* The inception date for R6 Shares was January 19, 2015.

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

70  Annual Report

Lazard Developing Markets								Lazard Emerging Markets				Lazard Emerging Markets
Equity Portfolio								Equity Advantage Portfolio				Equity Blend Portfolio
Year Ended				Year Ended				Period Ended				Year Ended				Year Ended
December 31, 2015				December 31, 2014				December 31, 2015 (a)				December 31, 2015				December 31, 2014
	$	2,201,358			$	4,190,638			$	24,631			$	5,738,043			$	8,278,550
		(52,150,416	)			(10,145,838	)			(202,076	)			(67,692,018	)			4,108,849
		(6,254,455	)			(50,394,682	)			(384,617	)			580,940				(67,688,890	)
		(56,203,513	)			(56,349,882	)			(562,062	)			(61,373,035	)			(55,301,491	)
		(1,924,292	)			(7,086,749	)			(43,330	)			(6,648,716	)			(9,413,910	)
		(13,305	)			(205,797	)			(1,479	)			(117,959	)			(2,397,601	)
		—				—				—				—				—
		—				—				—				—				—
		—				—				—				—				—
		—				—				—				—				—
		—				—				—				(222,431	)			(142,329	)
		—				—				—				(3,946	)			(36,249	)
		(1,937,597	)			(7,292,546	)			(44,809	)			(6,993,052	)			(11,990,089	)
		160,628,933				202,079,783				3,160,000				123,910,759				190,763,944
		4,472,487				9,912,568				114,935				22,146,753				63,704,064
		—				—				—				—				—
		1,804,758				6,212,668				43,330				6,577,069				9,543,351
		13,190				199,401				1,479				120,456				2,136,896
		—				—				—				—				—
		(188,831,386	)			(278,284,304	)			—				(243,837,698	)			(163,324,467	)
		(8,133,436	)			(36,645,367	)			—				(132,387,511	)			(46,084,987	)
		—				—				—				—				—
		(30,045,454	)			(96,525,251	)			3,319,744				(223,470,172	)			56,738,801
		1,622				3,357				—				1,456				2,907
		3				912				—				194				1,263
		1,625				4,269				—				1,650				4,170
		(88,184,939	)			(160,163,410	)			2,712,873				(291,834,609	)			(10,548,609	)
		442,876,215				603,039,625				—				586,799,306				597,347,915
	$	354,691,276			$	442,876,215			$	2,712,873			$	294,964,697			$	586,799,306
	$	(1,734,548	)		$	(1,853,267	)		$	(19,129	)		$	(2,005,101	)		$	(2,487,458	)
		40,927,103				47,319,142				—				46,286,681				42,827,110
		16,044,111				17,759,739				319,608				12,895,558				17,480,521
		202,540				599,100				5,356				766,558				947,701
		(19,136,482	)			(24,750,878	)			—				(26,196,918	)			(14,968,651	)
		(2,889,831	)			(6,392,039	)			324,964				(12,534,802	)			3,459,571
		38,037,272				40,927,103				324,964				33,751,879				46,286,681
		1,536,338				3,753,626				—				12,384,807				10,619,862
		475,961				858,092				11,622				2,271,163				5,700,656
		1,554				19,210				183				14,023				212,415
		(808,455	)			(3,094,590	)			—				(13,838,352	)			(4,148,126	)
		(330,940	)			(2,217,288	)			11,805				(11,553,166	)			1,764,945
		1,205,398				1,536,338				11,805				831,641				12,384,807

Annual Report  71

	Lazard Emerging Markets								Lazard Emerging Markets
	Multi Asset Portfolio								Debt Portfolio
	Year Ended				Year Ended				Year Ended				Year Ended
	December 31, 2015				December 31, 2014				December 31, 2015				December 31, 2014
Increase (Decrease) in Net Assets
Operations
Net investment income		$	2,723,881			$	4,564,030			$	17,108,605			$	16,516,844
Net realized loss on investments, foreign currency, forward currency contracts, options and swap agreements			(16,665,143	)			(5,355,641	)			(43,771,586	)			(33,656,581	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency  contracts, options and swap agreements			(7,135,560	)			(10,460,495	)			(7,785,822	)			4,620,466
Net decrease in net assets resulting from operations			(21,076,822	)			(11,252,106	)			(34,448,803	)			(12,519,271	)
Distributions to shareholders
From net investment income
Institutional Shares			(1,613,919	)			(3,815,304	)			(5,267	)			(4,871,679	)
Open Shares			(5,138	)			(29,024	)			(39	)			(40,972	)
From net realized gains
Institutional Shares			—				—				—				—
Open Shares			—				—				—				—
Return of capital
Institutional Shares			—				(106,077	)			(16,941,958	)			(12,190,985	)
Open Shares			—				(807	)			(126,193	)			(102,530	)
Net decrease in net assets resulting from distributions			(1,619,057	)			(3,951,212	)			(17,073,457	)			(17,206,166	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			14,378,243				96,895,257				177,866,366				168,311,344
Open Shares			229,591				684,542				7,523,204				342,520
Net proceeds from reinvestment of distributions
Institutional Shares			1,456,346				3,520,615				16,649,970				16,698,576
Open Shares			5,138				19,974				121,551				123,828
Cost of shares redeemed
Institutional Shares			(26,085,369	)			(114,168,186	)			(210,940,585	)			(275,457,957	)
Open Shares			(547,125	)			(1,612,316	)			(1,549,327	)			(8,512,593	)
Net increase (decrease) in net assets from capital stock transactions			(10,563,176	)			(14,660,114	)			(10,328,821	)			(98,494,282	)
Redemption fees (Note 2(j))
Institutional Shares			—				127				5,758				713
Open Shares			—				—				389				1
Net increase in net assets from redemption fees			—				127				6,147				714
Total increase (decrease) in net assets			(33,259,055	)			(29,863,305	)			(61,844,934	)			(128,219,005	)
Net assets at beginning of period			195,649,557				225,512,862				327,271,203				455,490,208
Net assets at end of period*		$	162,390,502			$	195,649,557			$	265,426,269			$	327,271,203
*Includes undistributed (distributions in excess of) net investment income of		$	(1,544,549	)		$	(833,010	)		$	(5,377,175	)		$	(7,976,969	)
(a) The Portfolio commenced operations on April 30, 2014.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			22,650,250				24,076,955				36,913,195				46,798,919
Shares sold			1,774,725				10,602,139				20,813,447				17,837,703
Shares issued to shareholders from reinvestment  of distributions			193,149				408,898				2,003,594				1,742,981
Shares redeemed			(3,099,546	)			(12,437,742	)			(26,221,829	)			(29,466,408	)
Net increase (decrease)			(1,131,672	)			(1,426,705	)			(3,404,788	)			(9,885,724	)
Shares outstanding at end of period			21,518,578				22,650,250				33,508,407				36,913,195
Open Shares
Shares outstanding at beginning of period			139,329				235,128				124,131				971,317
Shares sold			28,018				73,889				937,651				35,334
Shares issued to shareholders from reinvestment  of distributions			680				2,317				15,058				12,870
Shares redeemed			(66,872	)			(172,005	)			(189,452	)			(895,390	)
Net increase (decrease)			(38,174	)			(95,799	)			763,257				(847,186	)
Shares outstanding at end of period			101,155				139,329				887,388				124,131

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

72  Annual Report

Lazard Explorer								Lazard Emerging Markets
Total Return Portfolio								Income Portfolio
Year Ended				Year Ended				Year Ended				Period Ended
December 31, 2015				December 31, 2014				December 31, 2015				December 31, 2014 (a)
	$	8,079,405			$	4,843,171			$	9,894			$	3,134
		(24,676,918	)			(1,297,846	)			(791,521	)			(350,292	)
		1,855,619				(6,352,243	)			(366,500	)			(127,930	)
		(14,741,894	)			(2,806,918	)			(1,148,127	)			(475,088	)
		(4,046,291	)			(6,931,869	)			—				—
		(85,810	)			(346,247	)			—				—
		—				(86,593	)			—				—
		—				(4,325	)			—				—
		(3,943,160	)			(233,009	)			(13,481	)			—
		(83,623	)			(11,639	)			—				—
		(8,158,884	)			(7,613,682	)			(13,481	)			—
		244,120,989				165,082,565				11,194,673				5,545,100
		2,615,494				5,800,920				41,513				207,700
		7,992,755				7,234,199				13,479				—
		137,674				304,315				—				—
		(113,908,679	)			(60,293,265	)			(2,243,669	)			(99,405	)
		(8,120,303	)			(1,199,825	)			(6,955	)			(60,654	)
		132,837,930				116,928,909				8,999,041				5,592,741
		—				584				—				—
		3,695				11				—				—
		3,695				595				—				—
		109,940,847				106,508,904				7,837,433				5,117,653
		140,623,237				34,114,333				5,117,653				—
	$	250,564,084			$	140,623,237			$	12,955,086			$	5,117,653
	$	(2,997,827	)		$	(31,503	)		$	(200,481	)		$	(233,396	)
		14,321,463				3,190,427				544,226				—
		26,643,183				16,663,479				1,229,484				554,137
		899,825				751,650				1,492				—
		(12,763,416	)			(6,284,093	)			(255,237	)			(9,911	)
		14,779,592				11,131,036				975,739				544,226
		29,101,055				14,321,463				1,519,965				544,226
		763,194				269,801				14,487				—
		282,705				584,641				4,784				20,680
		15,177				31,480				—				—
		(905,252	)			(122,728	)			(776	)			(6,193	)
		(607,370	)			493,393				4,008				14,487
		155,824				763,194				18,495				14,487

Annual Report  73

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	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of year	$	17.19		$	18.67		$	19.54		$	16.80		$	21.78
Income (loss) from investment operations:
Net investment income (a)		0.30			0.37			0.35			0.35			0.49
Net realized and unrealized gain (loss)		(3.76	)		(1.13	)		(0.51	)		3.39			(4.36	)
Total from investment operations		(3.46	)		(0.76	)		(0.16	)		3.74			(3.87	)
Less distributions from:
Net investment income		(0.23	)		(0.37	)		(0.36	)		(0.36	)		(0.63	)
Net realized gains		(0.06	)		(0.35	)		(0.35	)		(0.64	)		(0.48	)
Total distributions		(0.29	)		(0.72	)		(0.71	)		(1.00	)		(1.11	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	13.44		$	17.19		$	18.67		$	19.54		$	16.80
Total Return (c)		–20.16	%		–4.16	%		–0.80	%		22.36	%		–17.75	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	8,238,638		$	12,156,645		$	12,691,329		$	13,315,172		$	10,902,557
Ratios to average net assets:
Net expenses		1.10	%		1.09	%		1.09	%		1.10	%		1.12	%
Gross expenses		1.10	%		1.09	%		1.09	%		1.10	%		1.12	%
Net investment income		1.83	%		1.97	%		1.80	%		1.85	%		2.44	%
Portfolio turnover rate		14	%		12	%		16	%		23	%		23	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of year	$	17.65		$	19.14		$	20.03		$	17.20		$	22.19
Income (loss) from investment operations:
Net investment income (a)		0.26			0.34			0.30			0.30			0.49
Net realized and unrealized gain (loss)		(3.84	)		(1.16	)		(0.53	)		3.47			(4.50	)
Total from investment operations		(3.58	)		(0.82	)		(0.23	)		3.77			(4.01	)
Less distributions from:
Net investment income		(0.19	)		(0.32	)		(0.31	)		(0.30	)		(0.50	)
Net realized gains		(0.06	)		(0.35	)		(0.35	)		(0.64	)		(0.48	)
Total distributions		(0.25	)		(0.67	)		(0.66	)		(0.94	)		(0.98	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	13.82		$	17.65		$	19.14		$	20.03		$	17.20
Total Return (c)		–20.33	%		–4.39	%		–1.14	%		22.03	%		–18.02	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	832,706		$	1,474,597		$	2,206,930		$	2,625,843		$	2,731,646
Ratios to average net assets:
Net expenses		1.37	%		1.37	%		1.37	%		1.40	%		1.42	%
Gross expenses		1.37	%		1.37	%		1.37	%		1.40	%		1.42	%
Net investment income		1.58	%		1.76	%		1.55	%		1.58	%		2.18	%
Portfolio turnover rate		14	%		12	%		16	%		23	%		23	%

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

74  Annual Report

Selected data for a share of capital stock outstanding throughout the period	For the Period 1/19/15* to 12/31/15
Lazard Emerging Markets Equity Portfolio (concluded)
R6 Shares
Net asset value, beginning of period		$	17.26
Income (loss) from investment operations:
Net investment income (a)			0.27
Net realized and unrealized loss			(3.80	)
Total from investment operations			(3.53	)
Less distributions from:
Net investment income			(0.23	)
Net realized gains			(0.06	)
Total distributions			(0.29	)
Net asset value, end of period		$	13.44
Total Return (c)			–20.50	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	144,626
Ratios to average net assets (d):
Net expenses			1.12	%
Gross expenses			1.13	%
Net investment income			1.79	%
Portfolio turnover rate			14	%

*	The inception date for R6 Shares was January 19, 2015.
(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 by BFDS; without such waiver 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  75

LAZARD EMERGING MARKETS CORE EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended						For the Period 10/31/13* to
stock outstanding throughout each period	12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	9.62		$	9.83			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.03			0.03				(0.01	)
Net realized and unrealized loss		(1.03	)		(0.15	)			(0.16	)
Total from investment operations		(1.00	)		(0.12	)			(0.17	)
Less distributions from:
Net investment income		(0.01	)		(0.08	)			—
Return of capital		(0.01	)		(0.01	)			—
Total distributions		(0.02	)		(0.09	)			—
Redemption fees		—	(b)		—				—
Net asset value, end of period	$	8.60		$	9.62			$	9.83
Total Return (c)		–10.36	%		–1.25	%			–1.70	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	102,421		$	39,832			$	3,265
Ratios to average net assets (d):
Net expenses		1.30	%		1.30	%			1.30	%
Gross expenses		1.52	%		2.28	%			24.66	%
Net investment income (loss)		0.32	%		0.28	%			–0.71	%
Portfolio turnover rate		46	%		45	%			12	%
Selected data for a share of capital	Year Ended						For the Period 10/31/13* to
stock outstanding throughout each period	12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	9.62		$	9.83			$	10.00
Loss from investment operations:
Net investment loss (a)		—	(b)		(0.04	)			(0.01	)
Net realized and unrealized loss		(1.04	)		(0.11	)			(0.16	)
Total from investment operations		(1.04	)		(0.15	)			(0.17	)
Less distributions from:
Net investment income		—			(0.05	)			—
Return of capital		—			(0.01	)			—
Total distributions		—			(0.06	)			—
Redemption fees		—			—	(b)			—
Net asset value, end of period	$	8.58		$	9.62			$	9.83
Total Return (c)		–10.81	%		–1.56	%			–1.70	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,344		$	5,266			$	627
Ratios to average net assets (d):
Net expenses		1.60	%		1.60	%			1.60	%
Gross expenses		2.35	%		2.81	%			30.92	%
Net investment loss		–0.04	%		–0.35	%			–0.90	%
Portfolio turnover rate		46	%		45	%			12	%

*	The Portfolio commenced operations on October 31, 2013.
(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.

76  Annual Report

LAZARD DEVELOPING MARKETS EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of year	$	10.43		$	11.81		$	12.40		$	10.68		$	15.12
Income (loss) from investment operations:
Net investment income (a)		0.06			0.09			0.11			0.09			0.06
Net realized and unrealized gain (loss)		(1.40	)		(1.30	)		(0.60	)		1.74			(4.00	)
Total from investment operations		(1.34	)		(1.21	)		(0.49	)		1.83			(3.94	)
Less distributions from:
Net investment income		(0.05	)		(0.17	)		(0.10	)		(0.11	)		—
Net realized gains		—			—			—			—			(0.50	)
Total distributions		(0.05	)		(0.17	)		(0.10	)		(0.11	)		(0.50	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	9.04		$	10.43		$	11.81		$	12.40		$	10.68
Total Return (c)		–12.84	%		–10.27	%		–3.90	%		17.16	%		–26.15	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	343,788		$	426,847		$	558,716		$	339,771		$	160,441
Ratios to average net assets:
Net expenses		1.20	%		1.19	%		1.17	%		1.21	%		1.30	%
Gross expenses		1.20	%		1.19	%		1.17	%		1.21	%		1.30	%
Net investment income		0.55	%		0.80	%		0.96	%		0.74	%		0.45	%
Portfolio turnover rate		66	%		57	%		48	%		61	%		68	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of year	$	10.43		$	11.81		$	12.40		$	10.68		$	15.16
Income (loss) from investment operations:
Net investment income (a)		0.01			0.08			0.11			0.05			0.01
Net realized and unrealized gain (loss)		(1.38	)		(1.33	)		(0.63	)		1.74			(3.99	)
Total from investment operations		(1.37	)		(1.25	)		(0.52	)		1.79			(3.98	)
Less distributions from:
Net investment income		(0.01	)		(0.13	)		(0.07	)		(0.07	)		—
Net realized gains		—			—			—			—			(0.50	)
Total distributions		(0.01	)		(0.13	)		(0.07	)		(0.07	)		(0.50	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	9.05		$	10.43		$	11.81		$	12.40		$	10.68
Total Return (c)		–13.11	%		–10.57	%		–4.18	%		16.79	%		–26.34	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	10,903		$	16,029		$	44,324		$	93,352		$	63,415
Ratios to average net assets:
Net expenses		1.57	%		1.49	%		1.45	%		1.53	%		1.60	%
Gross expenses		1.57	%		1.49	%		1.45	%		1.53	%		1.62	%
Net investment income		0.13	%		0.70	%		0.90	%		0.43	%		0.10	%
Portfolio turnover rate		66	%		57	%		48	%		61	%		68	%

(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  77

LAZARD EMERGING MARKETS EQUITY ADVANTAGE PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	For the Period 5/29/15* to 12/31/15
Institutional Shares
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.08
Net realized and unrealized loss			(1.88	)
Total from investment operations			(1.80	)
Less distributions from:
Net investment income			(0.14	)
Total distributions			(0.14	)
Net asset value, end of period		$	8.06
Total Return (b)			–17.97	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	2,618
Ratios to average net assets (c):
Net expenses			1.10	%
Gross expenses			11.47	%
Net investment income			1.54	%
Portfolio turnover rate			38	%
Selected data for a share of capital stock outstanding throughout the period	For the Period 5/29/15* to 12/31/15
Open Shares
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.06
Net realized and unrealized loss			(1.87	)
Total from investment operations			(1.81	)
Less distributions from:
Net investment income			(0.13	)
Total distributions			(0.13	)
Net asset value, end of period		$	8.06
Total Return (b)			–18.13	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	95
Ratios to average net assets (c):
Net expenses			1.40	%
Gross expenses			26.37	%
Net investment income			1.18	%
Portfolio turnover rate			38	%

*	The Portfolio commenced operations on May 29, 2015.
(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
(c)	Annualized for a period of less than one year.

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

78  Annual Report

LAZARD EMERGING MARKETS EQUITY BLEND PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of year	$	10.00		$	11.18		$	11.45		$	9.77		$	12.45
Income (loss) from investment operations:
Net investment income (a)		0.12			0.15			0.11			0.11			0.15
Net realized and unrealized gain (loss)		(1.39	)		(1.12	)		(0.24	)		1.68			(2.70	)
Total from investment operations		(1.27	)		(0.97	)		(0.13	)		1.79			(2.55	)
Less distributions from:
Net investment income		(0.19	)		(0.21	)		(0.08	)		(0.11	)		(0.08	)
Net realized gains		—			—			(0.05	)		—			(0.05	)
Return of capital		(0.01	)		—	(b)		(0.01	)		—			—
Total distributions		(0.20	)		(0.21	)		(0.14	)		(0.11	)		(0.13	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	8.53		$	10.00		$	11.18		$	11.45		$	9.77
Total Return (c)		–12.74	%		–8.66	%		–1.14	%		18.19	%		–20.43	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	287,857		$	463,043		$	478,754		$	201,512		$	85,091
Ratios to average net assets:
Net expenses		1.20	%		1.28	%		1.30	%		1.34	%		1.35	%
Gross expenses		1.20	%		1.28	%		1.33	%		1.34	%		1.54	%
Net investment income		1.22	%		1.33	%		1.00	%		1.01	%		1.34	%
Portfolio turnover rate		38	%		44	%		48	%		57	%		62	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of year	$	9.99		$	11.17		$	11.44		$	9.76		$	12.43
Income (loss) from investment operations:
Net investment income		0.11			0.10			0.07			0.09			0.11
Net realized and unrealized gain (loss)		(1.38	)		(1.10	)		(0.24	)		1.66			(2.68	)
Total from investment operations		(1.27	)		(1.00	)		(0.17	)		1.75			(2.57	)
Less distributions from:
Net investment income		(0.17	)		(0.18	)		(0.04	)		(0.07	)		(0.05	)
Net realized gains		—			—			(0.05	)		—			(0.05	)
Return of capital		—	(b)		—	(b)		(0.01	)		—			—
Total distributions		(0.17	)		(0.18	)		(0.10	)		(0.07	)		(0.10	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	8.55		$	9.99		$	11.17		$	11.44		$	9.76
Total Return (c)		–12.77	%		–8.95	%		–1.47	%		17.97	%		–20.74	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	7,107		$	123,756		$	118,594		$	37,648		$	22,571
Ratios to average net assets:
Net expenses		1.54	%		1.60	%		1.60	%		1.64	%		1.65	%
Gross expenses		1.54	%		1.63	%		1.69	%		1.77	%		1.92	%
Net investment income		1.10	%		0.94	%		0.61	%		0.78	%		0.94	%
Portfolio turnover rate		38	%		44	%		48	%		57	%		62	%

(a)	Net investment income has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street 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.

Annual Report  79

LAZARD EMERGING MARKETS MULTI ASSET PORTFOLIO

Selected data for a share of capital	Year Ended												For the Period 3/31/11* to
stock outstanding throughout each period	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	8.58		$	9.28		$	9.70		$	8.57			$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.13			0.17			0.13			0.09				0.09
Net realized and unrealized gain (loss)		(1.12	)		(0.70	)		(0.37	)		1.11				(1.47	)
Total from investment operations		(0.99	)		(0.53	)		(0.24	)		1.20				(1.38	)
Less distributions from:
Net investment income		(0.08	)		(0.17	)		(0.10	)		(0.07	)			(0.05	)
Net realized gains		—			—			(0.08	)		—				—
Return of capital		—			—	(b)		—			—				—
Total distributions		(0.08	)		(0.17	)		(0.18	)		(0.07	)			(0.05	)
Redemption fees		—			—	(b)		—	(b)		—	(b)			—	(b)
Net asset value, end of period	$	7.51		$	8.58		$	9.28		$	9.70			$	8.57
Total Return (c)		–11.59	%		–5.57	%		–2.41	%		14.02	%			–13.79	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	161,629		$	194,451		$	223,328		$	125,019			$	56,527
Ratios to average net assets (d):
Net expenses		1.30	%		1.28	%		1.30	%		1.30	%			1.30	%
Gross expenses		1.32	%		1.28	%		1.31	%		1.57	%			2.23	%
Net investment income		1.52	%		1.86	%		1.42	%		1.01	%			1.34	%
Portfolio turnover rate		109	%		122	%		155	%		160	%			98	%
Selected data for a share of capital	Year Ended												For the Period 3/31/11* to
stock outstanding throughout each period	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of period	$	8.60		$	9.29		$	9.71		$	8.59			$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.10			0.15			0.10			0.08				0.07
Net realized and unrealized gain (loss)		(1.12	)		(0.70	)		(0.37	)		1.08				(1.46	)
Total from investment operations		(1.02	)		(0.55	)		(0.27	)		1.16				(1.39	)
Less distributions from:
Net investment income		(0.05	)		(0.14	)		(0.07	)		(0.04	)			(0.02	)
Net realized gains		—			—			(0.08	)		—				—
Return of capital		—			—	(b)		—			—				—
Total distributions		(0.05	)		(0.14	)		(0.15	)		(0.04	)			(0.02	)
Redemption fees		—			—			—	(b)		—				—	(b)
Net asset value, end of period	$	7.53		$	8.60		$	9.29		$	9.71			$	8.59
Total Return (c)		–11.85	%		–5.89	%		–2.73	%		13.28	%			–13.67	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	761		$	1,198		$	2,185		$	858			$	262
Ratios to average net assets (d):
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%			1.60	%
Gross expenses		2.96	%		2.23	%		2.52	%		3.82	%			16.96	%
Net investment income		1.22	%		1.63	%		1.03	%		0.82	%			1.00	%
Portfolio turnover rate		109	%		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

Selected data for a share of capital	Year Ended												For the Period 2/28/11* to
stock outstanding throughout each period	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	8.84		$	9.53		$	10.85		$	9.76			$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.39			0.49			0.49			0.48				0.34
Net realized and unrealized gain (loss)		(1.13	)		(0.66	)		(1.25	)		1.33				(0.17	)
Total from investment operations		(0.74	)		(0.17	)		(0.76	)		1.81				0.17
Less distributions from:
Net investment income		—	(b)		(0.15	)		(0.52	)		(0.48	)			(0.40	)
Net realized gains		—			—			(0.04	)		(0.24	)			(0.01	)
Return of capital		(0.39	)		(0.37	)		—			—				—
Total distributions		(0.39	)		(0.52	)		(0.56	)		(0.72	)			(0.41	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)			—
Net asset value, end of period	$	7.71		$	8.84		$	9.53		$	10.85			$	9.76
Total Return (c)		–8.55	%		–2.07	%		–7.13	%		18.95	%			1.64	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	258,517		$	326,165		$	446,180		$	286,163			$	106,813
Ratios to average net assets (d):
Net expenses		0.96	%		0.96	%		0.97	%		1.00	%			1.04	%
Gross expenses		0.96	%		0.96	%		0.97	%		1.03	%			1.67	%
Net investment income		4.69	%		5.14	%		4.84	%		4.60	%			4.14	%
Portfolio turnover rate		162	%		204	%		108	%		220	%			108	%
Selected data for a share of capital	Year Ended												For the Period 2/28/11* to
stock outstanding throughout each period	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of period	$	8.91		$	9.59		$	10.88		$	9.77			$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.36			0.46			0.45			0.45				0.33
Net realized and unrealized gain (loss)		(1.11	)		(0.68	)		(1.24	)		1.35				(0.20	)
Total from investment operations		(0.75	)		(0.22	)		(0.79	)		1.80				0.13
Less distributions from:
Net investment income		—	(b)		(0.09	)		(0.46	)		(0.45	)			(0.35	)
Net realized gains		—			—			(0.04	)		(0.24	)			(0.01	)
Return of capital		(0.37	)		(0.37	)		—			—				—
Total distributions		(0.37	)		(0.46	)		(0.50	)		(0.69	)			(0.36	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)			—
Net asset value, end of period	$	7.79		$	8.91		$	9.59		$	10.88			$	9.77
Total Return (c)		–8.64	%		–2.53	%		–7.35	%		18.68	%			1.34	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	6,910		$	1,107		$	9,310		$	1,138			$	128
Ratios to average net assets (d):
Net expenses		1.30	%		1.30	%		1.30	%		1.30	%			1.39	%
Gross expenses		1.75	%		1.71	%		1.39	%		2.97	%			16.28	%
Net investment income		4.54	%		4.80	%		4.45	%		4.26	%			3.84	%
Portfolio turnover rate		162	%		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.

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LAZARD EXPLORER TOTAL RETURN PORTFOLIO

Selected data for a share of capital	Year Ended						For the Period 6/28/13* to
stock outstanding throughout each period	12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	9.32		$	9.86			$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.28			0.36				0.16
Net realized and unrealized loss		(0.75	)		(0.38	)			(0.12	)
Total from investment operations		(0.47	)		(0.02	)			0.04
Less distributions from:
Net investment income		(0.15	)		(0.49	)			(0.18	)
Net realized gains		—			(0.01	)			—
Return of capital		(0.14	)		(0.02	)			—
Total distributions		(0.29	)		(0.52	)			(0.18	)
Redemption fees		—			—	(b)			—
Net asset value, end of period	$	8.56		$	9.32			$	9.86
Total Return (c)		–5.13	%		–0.21	%			0.38	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	249,222		$	133,473			$	31,450
Ratios to average net assets (d):
Net expenses		1.16	%		1.24	%			1.30	%
Gross expenses		1.16	%		1.30	%			2.97	%
Net investment income		3.17	%		3.57	%			3.15	%
Portfolio turnover rate		262	%		182	%			69	%
Selected data for a share of capital	Year Ended						For the Period 6/28/13* to
stock outstanding throughout each period	12/31/15			12/31/14				12/31/13
Open Shares
Net asset value, beginning of period	$	9.37		$	9.88			$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.24			0.33				0.14
Net realized and unrealized loss		(0.75	)		(0.38	)			(0.11	)
Total from investment operations		(0.51	)		(0.05	)			0.03
Less distributions from:
Net investment income		(0.12	)		(0.43	)			(0.15	)
Net realized gains		—			(0.01	)			—
Return of capital		(0.14	)		(0.02	)			—
Total distributions		(0.26	)		(0.46	)			(0.15	)
Redemption fees		0.01			—	(b)			—
Net asset value, end of period	$	8.61		$	9.37			$	9.88
Total Return (c)		–5.42	%		–0.52	%			0.27	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,342		$	7,150			$	2,665
Ratios to average net assets (d):
Net expenses		1.50	%		1.54	%			1.60	%
Gross expenses		1.66	%		1.78	%			5.01	%
Net investment income		2.62	%		3.26	%			2.78	%
Portfolio turnover rate		262	%		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.

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LAZARD EMERGING MARKETS INCOME PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/15				For the Period 4/30/14* to 12/31/14
Institutional Shares
Net asset value, beginning of period		$	9.16			$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.01				0.01
Net realized and unrealized loss			(0.74	)			(0.85	)
Total from investment operations			(0.73	)			(0.84	)
Less distributions from:
Return of capital			(0.01	)			—
Total distributions			(0.01	)			—
Net asset value, end of period		$	8.42			$	9.16
Total Return (b)			–7.94	%			–8.30	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	12,800			$	4,985
Ratios to average net assets (c):
Net expenses			0.90	%			0.90	%
Gross expenses			2.55	%			5.15	%
Net investment income			0.09	%			0.10	%
Portfolio turnover rate			175	%			125	%
Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/15				For the Period 4/30/14* to 12/31/14
Open Shares
Net asset value, beginning of period		$	9.14			$	10.00
Loss from investment operations:
Net investment loss (a)			(0.02	)			(0.01	)
Net realized and unrealized loss			(0.73	)			(0.85	)
Total from investment operations			(0.75	)			(0.86	)
Net asset value, end of period		$	8.39			$	9.14
Total Return (b)			–8.21	%			–8.50	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	155			$	132
Ratios to average net assets (c):
Net expenses			1.20	%			1.20	%
Gross expenses			12.19	%			13.96	%
Net investment loss			–0.18	%			–0.18	%
Portfolio turnover rate			175	%			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.

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The Lazard Funds, Inc. Notes to Financial Statements December 31, 2015

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 “1940 Act”), as an open-end management investment company. The Fund is comprised of thirty-five no-load portfolios (each referred to as a “Portfolio”), as follows: Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard US Small Cap Equity Growth Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Equity Concentrated Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Equity Advantage Portfolio (commenced investment operations on May 29, 2015), Lazard International Small Cap Equity Portfolio, Lazard Global Equity Select Portfolio, Lazard Global Strategic Equity Portfolio, Lazard Managed Equity Volatility Portfolio (commenced investment operations on May 29, 2015), Lazard Emerging Markets Equity Portfolio, Lazard Emerging Markets Core Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Advantage Portfolio (commenced investment operations on May 29, 2015), Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi Asset Portfolio, Lazard Emerging Markets Debt Portfolio, Lazard Explorer Total Return Portfolio, Lazard Emerging Markets Income Portfolio, Lazard US Corporate Income Portfolio, Lazard US Short Duration Fixed Income Portfolio, Lazard Global Fixed Income Portfolio, Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard Capital Allocator Opportunistic Strategies Portfolio, Lazard Global Dynamic Multi Asset Portfolio, Lazard Enhanced Opportunities Portfolio, Lazard Fundamental Long/Short Portfolio, and Lazard Master Alternatives Portfolio. All Portfolios, other than US Equity Concentrated, International Equity Concentrated, Emerging Markets Debt, Explorer Total Return, Emerging Markets Income, US Realty Equity, Global Realty Equity, Enhanced Opportunities and Fundamental Long/Short Portfolios, are operated as “diversified” funds, as defined in the 1940 Act. Global Dynamic Multi Asset Portfolio had not commenced operations as of De-

cember 31, 2015. This report includes only the financial statements of Emerging Markets Equity, Emerging Markets Core Equity, Developing Markets Equity, Emerging Markets Equity Advantage, Emerging Markets Equity Blend, Emerging Markets Multi Asset, Emerging Markets Debt, Explorer Total Return and Emerging Markets Income Portfolios. The financial statements of other Portfolios are presented separately.

Effective November 29, 2013, an R6 Share class was classified for each Portfolio. 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, 2015, 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 US Strategic Equity, International Equity, International Strategic Equity and Emerging Markets Equity Portfolios had issued R6 Shares.

2. Significant Accounting Policies

The accompanying financial statements are presented in conformity with GAAP. The Fund is an investment company and therefore applies specialized accounting guidance in Accounting Standards Codification Topic 946. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements:

(a) Valuation of Investments—Net asset value (“NAV”) per share for each class of each Portfolio is determined on each day the New York Stock Exchange (“NYSE”) is open for business, generally as of the close of regular session trading on the NYSE (normally 4:00 p.m. Eastern time, the “Regular Closing Time”). When trading on the NYSE is unexpectedly closed prior to the Regular Closing Time, or an earlier scheduled close (such as on certain days around holidays when the NYSE is scheduled to close before 4:00 p.m.), and remains closed through the time of the Regular Closing Time (or an earlier scheduled close), the NAV of each class

84  Annual Report

of each Portfolio may nonetheless be calculated as of the Regular Closing Time (or an earlier scheduled close) if, in the judgment of the Investment Manager, there is sufficient trading in other markets between the unexpected close and the Regular Closing Time (or an earlier scheduled close) for securities for which the NYSE is usually considered the primary market. NAV per share is determined by dividing the value of the total assets of the Portfolio represented by such class, less all liabilities, by the total number of Portfolio shares of such class outstanding.

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 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 generally are valued using quotations from an independent pricing service. Exchange-traded options are valued at the last reported sales price on the exchange on which the contract is principally traded. Swap agreements, such as credit default and interest rate swap agreements and swap agreements with respect to equity securities, are valued by an independent pricing service. Investments in money market funds are valued at the fund’s NAV.

Bonds and other fixed-income securities that are not exchange-traded are valued on the basis of prices provided by independent pricing services which are based on, among other things, trading in securities with similar characteristics, brokers’ quotations and/or a matrix system which considers such factors as other security prices, yields and maturities.

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.

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 except for certain dividends from foreign securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Portfolio. Interest income is accrued daily. The Portfolios amortize pre-

Annual Report  85

miums and accrete discounts on fixed-income securities using the effective yield method.

During the year ended December 31, 2015, Emerging Markets Multi Asset, Emerging Markets Debt, Explorer Total Return and Emerging Markets Income Portfolios traded in fixed-income securities.

A Portfolio may be subject to taxes imposed by foreign countries in which it invests. Such taxes are generally based upon income earned or capital gains (realized or unrealized). An affected Portfolio accrues and applies such taxes to net investment income, net realized gains and net unrealized gains concurrent with the recognition of income 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.

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 ended December 31, 2015, Emerging Markets Multi Asset, Emerging Markets Debt, Explorer Total Return and Emerging Markets Income Portfolios traded in forward currency contracts.

(d) Options Transactions—For hedging and investment purposes, certain Portfolios may purchase and write (sell) put and call options. Such options may be traded on US or non-US securities exchanges or 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, 2015, transactions in options purchased were as follows:

86  Annual Report

Emerging Markets Multi Asset Portfolio
	Number of
Purchased Options	Contracts		Cost
Options outstanding at beginning of year		—	$	—
Options purchased		21,150		21,425
Options sold		—		—
Options expired		—		—
Options outstanding at end of year		21,150	$	21,425
Explorer Total Return Portfolio
	Number of
Purchased Options	Contracts		Cost
Options outstanding at beginning of year		—	$	—
Options purchased		185,100		187,506
Options sold		—		—
Options expired		—		—
Options outstanding at end of year		185,100	$	187,506

None of the other Portfolios presented traded in options during the year ended December 31, 2015.

(e) Swap Agreements—A Portfolio may enter into credit default swap agreements whereby one counterparty (the “Protection Buyer”) pays an upfront payment or a periodic fee throughout the term of the swap agreement provided there is no credit event, which is expressed in basis points on the notional amount, in return for a payment by the seller of the credit default swap agreement (the “Protection Seller”) that results if a credit event such as defined in the swap agreement occurs, such as bankruptcy of the reference entity, obligation or index. Such credit default swap agreements are cash settled transactions. If a Portfolio enters into a credit default swap agreement as the Protection Buyer, the Portfolio is exposed to credit risk arising from the potential inability of the Protection Seller to perform under the agreement. If a Portfolio enters into a credit default swap agreement as the Protection Seller, the Portfolio is not exposed to credit risk but is subject to market risk as the credit default swap agreement is recorded at fair value which reflects the creditworthiness of the reference entity. As a Protection Seller, a Portfolio would effectively add

leverage to its portfolio because, in addition to its total net assets, a Portfolio would be subject to risk of loss limited to the notional amount of the swap agreement.

Credit ratings on the reference obligor underlying the credit derivatives, together with the periods of expiration, are generally indicators of payment/performance risk. In such instances where a Portfolio is the seller of protection, the likelihood of payment and performance is generally considered greater as the credit spread on the reference obligor underlying the credit derivatives and the period of expiration increases.

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) spread locks, 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 generally 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. Once the interim payments are settled in cash, the net amount is recorded as realized gain (loss) on swap agreements in a Portfolio’s accompanying Statement of Operations, in addition to any realized gain (loss) recorded upon the termination of swap agreements.

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During the year ended December 31, 2015, Emerging Markets Multi Asset and Explorer Total Return Portfolios traded in swap agreements with average monthly notional exposure of approximately $4,600,000 and $27,900,000, respectively.

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

At December 31, 2015, 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	Short-Term	Long-Term
Emerging Markets Equity	$33,047,892	$594,348,245
Emerging Markets Core Equity	1,963,434	—
Developing Markets Equity	31,877,873	71,997,661
Emerging Markets Equity Advantage	198,927	—
Emerging Markets Equity Blend	8,151,798	56,673,233
Emerging Markets Multi Asset	6,283,824	13,528,356
Emerging Markets Debt	27,819,262	9,943,464
Explorer Total Return	20,798,354	746,728
Emerging Markets Income	14,173	—

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, 2015, the following Portfolios elected to defer such losses as follows:

Portfolio	Post October Capital Loss Deferral			Late Year Ordinary Loss Deferral
Emerging Markets Core Equity	$	—		$	(22,939	)
Developing Markets Equity		(10,842,778	)		—
Emerging Markets Equity Blend		—			(147,122	)
Emerging Markets Multi Asset		—			(231,758	)
Emerging Markets Debt		—			(2,609,984	)
Explorer Total Return		—			(1,517,077	)
Emerging Markets Income		(881	)		(348,398	)

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 (2012-2014), or expected to be taken in the Portfolios’ 2015 tax returns.

(g) Dividends and Distributions—Emerging Markets Debt, Explorer Total Return and Emerging Markets Income 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. Differences in per share distributions, by class, are generally due to differences in class specific expenses.

Income 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, foreign taxes, net operating losses, 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	$	(147,528	)	$	(6,565,203	)	$	6,712,731
Emerging Markets Core Equity		(89,322	)		109,227			(19,905	)
Developing Markets Equity		1			(145,042	)		145,041
Emerging Markets Equity Advantage		(2,129	)		1,049			1,080
Emerging Markets Equity Blend		(279,946	)		1,737,366			(1,457,420	)

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Portfolio	Paid in Capital			Undistributed (Distributions in Excess of) Net Investment Income			Accumulated Net Realized Gain (Loss)
Emerging Markets Multi Asset	$	22,756		$	(1,816,363	)	$	1,793,607
Emerging Markets Debt		(29,306,420	)		2,564,646			26,741,774
Explorer Total Return		(4,013,541	)		(2,886,845	)		6,900,386
Emerging Markets Income		(715,939	)		36,502			679,437

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2015		2014		2015		2014
Emerging Markets Equity	$	155,213,880	$	284,220,522	$	44,579,900	$	276,590,696
Emerging Markets Core Equity*		180,297		368,056		—		—
Developing Markets Equity		1,937,597		7,292,546		—		—
Emerging Markets Equity Advantage		44,809		N/A		—		N/A
Emerging Markets Equity Blend*		6,766,675		11,811,511		—		—
Emerging Markets Multi Asset*		1,619,057		3,844,328		—		—
Emerging Markets Debt*		5,306		4,912,651		—		—
Explorer Total Return*		4,132,101		7,278,116		—		90,918
Emerging Markets Income*		—		—		—		—

* Emerging Markets Core Equity, Emerging Markets Equity Blend, Emerging Markets Multi Asset, Emerging Markets Debt, Explorer Total Return and Emerging Markets Income Portfolios had return of capital distributions of $88,130, $226,377, $0, $17,068,151, $4,026,783 and $13,481 in 2015, and $19,396, $178,578, $106,884, $12,293,515, $244,648 and $0 in 2014, respectively.

At December 31, 2015, the components of distributable earnings, on a tax basis, were as follows:

Portfolio	Undistributed Ordinary Income/ Deferred Ordinary Losses			Deferred Capital Losses			Net Unrealized Depreciation including Foreign Currency
Emerging Markets Equity	$	64,826,875		$	(627,396,137	)	$	(2,618,045,804	)
Emerging Markets Core Equity		(22,939	)		(1,963,434	)		(8,959,007	)
Developing Markets Equity		40,961			(114,718,312	)		(73,933,784	)
Emerging Markets Equity Advantage		3,044			(198,927	)		(408,859	)
Emerging Markets Equity Blend		(147,122	)		(64,825,031	)		(61,207,289	)
Emerging Markets Multi Asset		(231,758	)		(19,812,180	)		(23,654,779	)
Emerging Markets Debt		(2,609,984	)		(37,762,726	)		(29,072,050	)
Explorer Total Return		(1,517,077	)		(21,545,082	)		(6,242,884	)
Emerging Markets Income		(348,398	)		(15,054	)		(450,339	)

(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.

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(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 a 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 objectives 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 Advantage		0.85
Emerging Markets Equity Blend		1.00
Emerging Markets Multi Asset		1.00
Emerging Markets Debt		0.80
Explorer Total Return		1.00
Emerging Markets Income		0.65

The Investment Manager has voluntarily agreed, through May 1 of the year shown below, to reduce its fees and, if necessary, reimburse the Portfolios if annualized operating expenses (exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Funds” and extraordinary expenses, and excluding shareholder redemption fees or other transaction fees) exceed the following percentages of average daily net assets for the respective shares:

Portfolio	Institutional Shares			Open Shares			R6 Shares			Year
Emerging Markets Equity		1.30	%		1.60	%		1.25	%		2016
Emerging Markets Core Equity		1.30			1.60			N/A			2016
Developing Markets Equity		1.30			1.60			N/A			2016
Emerging Markets Equity Advantage		1.10			1.40			N/A			2017	(a)
Emerging Markets Equity Blend		1.30			1.60			N/A			2016
Emerging Markets Multi Asset		1.30			1.60			N/A			2025
Emerging Markets Debt		1.00			1.30			N/A			2016	(b)
Explorer Total Return		1.20			1.50			N/A			2016
Emerging Markets Income		0.90			1.20			N/A			2016

(a)	Agreement is through May 29, 2017.
(b)	Agreement extends, for May 2, 2016 through May 1, 2025, at levels of 1.10% and 1.40%, respectively.

During the period ended December 31, 2015, 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
Emerging Markets Core Equity	$	134,739	$	—	$	17,432	$	—
Emerging Markets Equity Advantage		13,227		131,419		492		7,450
Emerging Markets Multi Asset		36,571		—		9,403		3,407
Emerging Markets Debt		—		—		12,130		—
Explorer Total Return		—		—		8,378		—
Emerging Markets Income		74,809		96,723		906		14,184

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

90  Annual Report

waive up to $18,750 of the $42,500 annual fee for Portfolios with net assets under $25 million. During the period ended December 31, 2015, State Street waived its fees as follows:

Portfolio	Amount
Emerging Markets Equity Advantage	$	10,938
Emerging Markets Income		18,750

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

Under a distribution and servicing plan adopted pursuant to Rule 12b-1 under the 1940 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, 2015, BFDS waived its fees as follows:

Portfolio	Amount
Emerging Markets Equity	$	6,114
Emerging Markets Equity Advantage		12,226

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2015, each Director who is not an affiliated person of the Investment Manager or any of its affiliates was 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 Fund Complex”), each a registered management investment company advised by the Investment Manager, and Lazard Alternative Emerging Markets 1099 Fund, a closed-end registered management investment company advised by an affiliate of the Investment Manager: (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. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Directors’ fees were allocated among the funds in the Lazard Fund Complex and Lazard Alternative Emerging Markets 1099 Fund at a rate of $5,000 per fund with the remainder allocated based upon each fund’s proportionate share of combined net assets. 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, 2015 were as follows:

Portfolio	Purchases		Sales
Emerging Markets Equity	$	1,688,220,624	$	3,006,210,536
Emerging Markets Core Equity		92,715,135		28,157,730
Developing Markets Equity		260,920,437		293,341,210
Emerging Markets Equity Advantage		4,063,782		900,058
Emerging Markets Equity Blend		175,286,780		388,538,714
Emerging Markets Multi Asset		162,446,987		152,351,673
Emerging Markets Debt		563,053,934		548,183,083
Explorer Total Return		547,211,766		428,050,081
Emerging Markets Income		3,508,214		2,531,100

	US Treasury Securities
Portfolio	Purchases		Sales
Emerging Markets Multi Asset	$	11,624,480	$	10,527,378
Explorer Total Return		68,394,653		60,049,544

For the year ended December 31, 2015, 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.

Annual Report  91

At December 31, 2015, the Investment Manager owned 90.70% and 32.54% of the outstanding shares of Emerging Markets Equity Advantage Portfolio and Emerging Markets Income Portfolio, respectively.

Holdings of 5% Voting Securities of Portfolio Companies The 1940 Act defines “affiliated companies” to include investments in portfolio companies in which a fund owns 5% or more of the outstanding voting securities. Investments in “affiliated companies” for Emerging Markets Equity Portfolio for the year ended December 31, 2015, were as follows:

Non-Controlled Affiliates	Number of Shares Held at Beginning of Year		Gross Additions		Gross Reductions			Number of Shares Held at End of Year		Value at End of Year			Investment Income			Realized Loss
PPC, Ltd.		38,911,637		1,511,286		(6,574,017	)		33,848,906		$	33,681,154		$	2,802,758		$	(20,287,821	)
Weichai Power Co., Ltd., Class H		24,415,000		37,757,000		(4,623,000	)		57,549,000			63,238,042			810,915			(6,257,397	)
Total Affiliated Securities (Value is 1.05% of Net Assets)											$	96,919,196		$	3,613,673		$	(26,545,218	)

6. Line of Credit

The Fund has a $50 million Line of Credit Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings was payable: from January 1, 2015 to June 28, 2015, at the higher of the Federal Funds rate or Overnight LIBOR rate plus 1.00%, and from June 29, 2015 to December 31, 2015, at the higher of the Federal Funds rate or One-Month LIBOR rate plus 1.00%, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.10% per annum fee from January 1, 2015 to June 28, 2015 and 0.20% per annum from June 29, 2015 to December 31, 2015 on the unused portion of the commitment, payable quarterly in arrears. The Fund has also agreed to pay an upfront fee of 0.05% of the committed line amount. During the period ended December 31, 2015, the Portfolios had borrowings under the Agreement as follows:

Portfolio	Average Daily Loan Balance*		Maximum Daily Loan Outstanding		Weighted Average Interest Rate			Number of Days Borrowings were Outstanding
Emerging Markets Equity	$	18,733,333	$	45,500,000		1.34	%		9
Emerging Markets Core Equity		2,500,000		2,500,000		1.14			6
Developing Markets Equity		3,507,619		10,400,000		1.18			21
Emerging Markets Equity Advantage		12,000		22,000		1.27			5
Emerging Markets Equity Blend		13,204,516		48,400,000		1.20			31
Emerging Markets Debt		8,920,182		27,600,000		1.26			33
Emerging Markets Income		414,000		530,000		1.23			12

* For days borrowings were outstanding.

92  Annual Report

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, 2015 is categorized as Level 2 (see Note 9).

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. The Portfolios’ investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies. 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 economies of countries with emerging markets may be based predominantly on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme debt burdens or volatile inflation rates. The securities markets of emerging market countries have historically been extremely volatile. These market conditions may continue or worsen. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies. 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.

(b) Fixed-Income and Debt Securities Risk—The market value of a debt security may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The debt securities market can be susceptible to increases in volatility and decreases in liquidity. Prices of bonds and other debt securities tend to move inversely with changes in interest rates. Increases in volatility and decreases in liquidity may be caused by a rise in interest rates (or the expectation of a rise in interest rates). Interest rate risk is usually greater for fixed-income securities with longer maturities or durations.

The Portfolios’ investments in lower-rated, higher-yielding securities (“junk bonds”) 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 security’s value could fall, potentially lowering the Portfolios’ share price. The prices of non-investment grade securities, unlike investment grade debt securities, may fluctuate unpredictably and not necessarily inversely with changes in interest rates. The market for these securities may be less liquid and therefore these securities may be harder to value or sell at an acceptable price, especially during times of market volatility or decline. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening.

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).

Annual Report  93

(c) Swap Agreements and Other Derivatives Risk—Swap agreements and other derivatives transactions, including those entered into for hedging purposes, may reduce returns or increase volatility, perhaps substantially. Over-the-counter swap agreements, forward currency contracts, over-the-counter options on securities (including options on ETFs), indexes and currencies and other over-the-counter derivatives transactions are subject to the risk of default by the counterparty and can be illiquid. These derivatives transactions, as well as the exchange-traded futures and options in which the Portfolios may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related security, interest rate, index, commodity, currency or other reference asset. As such, a small investment could have a potentially large impact on the Portfolios’ performance. Use of derivatives transactions, even when entered into for hedging purposes, may cause the Portfolios to experience losses greater than if the Portfolios had not engaged in such transactions.

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.

94  Annual Report

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2015:

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, 2015
Emerging Markets Equity Portfolio
Common Stocks*
Brazil		$	181,056,776		$	640,208,892		$	—		$	821,265,668
China			617,489,837			674,780,452			—			1,292,270,289
Hong Kong			270,423,657			46,274,132			—			316,697,789
Indonesia			253,268,922			427,844,398			—			681,113,320
Russia			98,919,215			660,302,539			—			759,221,754
Other			448,789,737			4,686,691,809			—			5,135,481,546
Short-Term Investment			116,040,061			—			—			116,040,061
Total		$	1,985,988,205		$	7,136,102,222		$	—		$	9,122,090,427
Emerging Markets Core Equity Portfolio
Common Stocks*
Brazil		$	921,648		$	2,339,603		$	—		$	3,261,251
China			7,368,652			16,972,689			—			24,341,341
Hong Kong			3,300,938			2,618,596			—			5,919,534
India			8,418,446			3,392,446			—			11,810,892
Russia			165,706			434,492			—			600,198
South Korea			1,108,250			9,536,146			—			10,644,396
Taiwan			5,780,518			9,871,908			—			15,652,426
Other			11,968,240			14,069,271			—			26,037,511
Preferred Stock*			941,092			—			—			941,092
Short-Term Investment			5,484,060			—			—			5,484,060
Total		$	45,457,550		$	59,235,151		$	—		$	104,692,701
Developing Markets Equity Portfolio
Common Stocks*
Brazil		$	5,236,860		$	7,949,005		$	—		$	13,185,865
China			19,578,982			61,147,688			—			80,726,670
Colombia			5,805,874			3,075,292			—			8,881,166
Hong Kong			2,540,160			26,313,487			—			28,853,647
India			15,589,818			33,807,575			—			49,397,393
Russia			9,286,330			27,813,698			—			37,100,028
Taiwan			4,675,776			25,534,435			—			30,210,211
Other			28,593,603			67,548,669			—			96,142,272
Preferred Stock*			2,254,712			—			—			2,254,712
Short-Term Investment			7,914,712			—			—			7,914,712
Total		$	101,476,827		$	253,189,849		$	—		$	354,666,676

Annual Report  95

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, 2015
Emerging Markets Equity Advantage Portfolio
Common Stocks*
Brazil		$	44,950		$	27,835		$	—		$	72,785
China			55,431			498,701			—			554,132
Colombia			6,309			11,135			—			17,444
India			132,194			38,914			—			171,108
Indonesia			37,078			4,739			—			41,817
Malaysia			40,718			64,462			—			105,180
Russia			3,758			57,293			—			61,051
South Korea			76,656			352,291			—			428,947
Taiwan			132,587			190,382			—			322,969
Thailand			5,453			97,536			—			102,989
Turkey			9,319			23,185			—			32,504
Other			190,026			452,870			—			642,896
Preferred Stocks*			24,785			—			—			24,785
Warrant**			—			—			—			—
Short-Term Investment			69,875			—			—			69,875
Total		$	829,139		$	1,819,343		$	—		$	2,648,482
Emerging Markets Equity Blend Portfolio
Common Stocks*
Brazil		$	5,919,238		$	10,101,318		$	—		$	16,020,556
China			23,234,058			39,911,699			—			63,145,757
Hong Kong			3,745,156			18,561,674			—			22,306,830
India			4,240,752			27,601,774			—			31,842,526
Indonesia			4,338,546			12,410,031			—			16,748,577
Russia			10,338,325			14,201,484			—			24,539,809
Turkey			5,245,257			9,479,712			—			14,724,969
Other			25,661,535			76,087,958			—			101,749,493
Preferred Stock*			493,463			—			—			493,463
Short-Term Investment			218			—			—			218
Total		$	83,216,548		$	208,355,650		$	—		$	291,572,198

96  Annual Report

Description	Unadjusted Quoted Prices in Active Markets for Identical Investments (Level 1)			Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)			Balance as of December 31, 2015
Emerging Markets Multi Asset Portfolio
Assets:
Common Stocks*
Brazil		$	1,840,870		$	3,162,654			$	—		$	5,003,524
China			8,092,323			16,489,563				—			24,581,886
Hong Kong			2,365,353			6,408,371				—			8,773,724
India			4,768,958			8,238,696				—			13,007,654
Indonesia			1,384,925			4,056,628				—			5,441,553
Philippines			548,910			867,078				—			1,415,988
Russia			3,080,383			4,070,884				—			7,151,267
South Korea			462,322			11,096,051				—			11,558,373
Taiwan			3,829,508			9,738,196				—			13,567,704
Turkey			1,694,341			3,081,320				—			4,775,661
Other			10,835,079			7,803,944				—			18,639,023
Preferred Stock*			162,206			—				—			162,206
Corporate Bonds*			—			451,362				—			451,362
Foreign Government Obligations*			—			26,825,241				—			26,825,241
Quasi Government Bonds*			—			842,771				—			842,771
US Treasury Securities			—			12,954,820				—			12,954,820
Warrant**			—			—				—			—
Short-Term Investment			12,959,855			—				—			12,959,855
Purchased Options			—			6,768				—			6,768
Other Financial Instruments***
Forward Currency Contracts			—			422,698				—			422,698
Total		$	52,025,033		$	116,517,045			$	—		$	168,542,078
Liabilities:
Other Financial Instruments***
Credit Default Swap Agreements		$	—		$	(2,775	)		$	—		$	(2,775	)
Forward Currency Contracts			—			(535,118	)			—			(535,118	)
Total		$	—		$	(537,893	)		$	—		$	(537,893	)
Emerging Markets Debt Portfolio
Assets:
Corporate Bonds*		$	—		$	3,833,878			$	—		$	3,833,878
Foreign Government Obligations*			—			244,245,466				—			244,245,466
Quasi Government Bonds*			—			9,541,025				—			9,541,025
Short-Term Investment			3,170,852			—				—			3,170,852
Other Financial Instruments***
Forward Currency Contracts			—			117,476				—			117,476
Total		$	3,170,852		$	257,737,845			$	—		$	260,908,697
Liabilities:
Other Financial Instruments***
Forward Currency Contracts		$	—		$	(96,405	)		$	—		$	(96,405	)

Annual Report  97

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, 2015
Explorer Total Return Portfolio
Assets:
Corporate Bonds*		$	—		$	3,025,225			$	—		$	3,025,225
Foreign Government Obligations*			—			205,353,036				—			205,353,036
Quasi Government Bonds*			—			7,459,594				—			7,459,594
US Treasury Securities			—			7,770,445				—			7,770,445
Warrant**			—			—				—			—
Short-Term Investment			25,186,042			—				—			25,186,042
Purchased Option			—			59,232				—			59,232
Other Financial Instruments***
Forward Currency Contracts			—			1,024,276				—			1,024,276
Total		$	25,186,042		$	224,691,808			$	—		$	249,877,850
Liabilities:
Other Financial Instruments***
Credit Default Swap Agreements		$	—		$	(20,643	)		$	—		$	(20,643	)
Forward Currency Contracts			—			(251,017	)			—			(251,017	)
Interest Rate Swap Agreement			—			(88,218	)			—			(88,218	)
Total		$	—		$	(359,878	)		$	—		$	(359,878	)
Emerging Markets Income Portfolio
Assets:
Foreign Government Obligations*		$	—		$	2,836,849			$	—		$	2,836,849
Supranationals			—			40,386				—			40,386
US Treasury Securities			—			9,575,301				—			9,575,301
Short-Term Investment			657,814			—				—			657,814
Other Financial Instruments***
Forward Currency Contracts			—			176,307				—			176,307
Total		$	657,814		$	12,628,843			$	—		$	13,286,657
Liabilities:
Other Financial Instruments***
Forward Currency Contracts		$	—		$	(370,848	)		$	—		$	(370,848	)

*	Please refer to Portfolios of Investments (page 22 through 60) and Notes to Portfolios of Investments (page 63 through 64) 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.

Certain securities to which footnote (b) in the Notes to Portfolios of Investments apply are included in Level 2 and were valued based on reference to similar securities 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, Devel-

oping Markets Equity, Emerging Markets Equity Advantage, 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. Accordingly, a significant portion of the Portfolios’ investments are categorized as Level 2 investments. A Portfolio recognizes all transfers between levels as though they were transferred at the beginning of the reporting period.

98  Annual Report

At December 31, 2015, securities valued at the following amounts were transferred from Level 1 to Level 2:

Portfolio		Amount
Developing Markets Equity	$	14,973,774

There were no other transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 2015.

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.

A Portfolio may write or purchase call or put options to seek to realize, through the receipt of premiums and changes in market value, a greater return than would be realized on the underlying securities alone, or to seek to protect the Portfolio from losses.

A Portfolio enters into swap agreements in an attempt to obtain a particular exposure 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 exposure.

Emerging Markets Multi Asset Portfolio

During the year ended December 31, 2015, the notional amounts of purchases and sales of forward currency contracts were $436,088,811 and $437,100,083, respectively, with average monthly notional exposure of approximately $53,100,000.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2015:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	422,698
Gross unrealized appreciation on purchased options	$	6,768
Liability Derivatives
Credit Risk:
Gross unrealized depreciation on credit default swap agreements	$	2,775
Credit default swap agreements premium received	$	106,075
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	535,118
The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2015 was:
		Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Credit Risk:
Net realized loss on credit default swap agreements	$	(143,266	)
Foreign Exchange Risk:
Net realized loss on forward currency contracts	$	(275,840	)
Interest Risk:
Net realized loss on interest rate swap agreements	$	(3,850	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Credit Risk:
Net change in unrealized appreciation on credit default swap agreements	$	199,473
Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts	$	56,106
Net change in unrealized depreciation on purchased options	$	(14,657	)

Annual Report  99

Emerging Markets Debt Portfolio

During the year ended December 31, 2015, the notional amounts of purchases and sales of forward currency contracts were $ 49,332,109 and $48,676,425, respectively, with average monthly notional exposure of approximately $10,800,000.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2015:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	117,476
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	96,405

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2015 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	142,812
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts	$	21,071

Explorer Total Return Portfolio

During the year ended December 31, 2015, the notional amounts of purchases and sales of forward currency contracts were $1,558,882,215 and $1,571,642,123, respectively, with average monthly notional exposure of approximately $134,700,000.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2015:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	1,024,276
Gross unrealized appreciation on purchased options	$	59,232
Liability Derivatives
Credit Risk:
Gross unrealized depreciation on credit default swap agreements	$	20,643
Credit default swap agreements premium received	$	828,388
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	251,017
Interest Risk:
Gross unrealized depreciation on interest rate swap agreements	$	88,218
The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2015 was:
		Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Credit Risk:
Net realized loss on credit default swap agreements	$	(210,877	)
Foreign Exchange Risk:
Net realized loss on forward currency contracts	$	(1,768,374	)
Interest Risk:
Net realized loss on interest rate swap agreements	$	(32,815	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Credit Risk:
Net change in unrealized appreciation on credit default swap agreements	$	558,504
Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts	$	933,946
Net change in unrealized depreciation on purchased options	$	(128,274	)

100 Annual Report

Emerging Markets Income Portfolio

During the year ended December 31, 2015, the notional amounts of purchases and sales of forward currency contracts were $129,822,847 and $122,227,747, respectively, with average monthly notional exposure of approximately $15,200,000.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2015:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	176,307
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	370,848

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2015 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized loss on forward currency contracts	$	(536,710	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(182,575	)

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 ended December 31, 2015.

As of December 31, 2015, the Emerging Markets Multi Asset, Emerging Markets Debt, Explorer Total Return and Emerging Markets Income 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 101

The required information for the affected Portfolios are presented in the below table, as of December 31, 2015:

Emerging Markets Multi Asset Portfolio

Description				Gross Amounts of Recognized Assets				Gross Amounts Offset in the Statement of Assets and Liabilities			Net Amounts of Assets Presented in the Statement of Assets and Liabilities
Forward Currency Contracts					$	422,698			$	—		$	422,698
				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		$	25,181		$	(25,181	)		$	—		$	—
BNP Paribas SA			4,547			—				—			4,547
Citibank NA			199,212			(199,212	)			—			—
HSBC Bank USA NA			25,386			(22,782	)			—			2,604
JPMorgan Chase Bank NA			97,008			(97,008	)			—			—
Standard Chartered Bank			48,178			(36,036	)			—			12,142
UBS AG			23,186			(1,760	)			—			21,426
Total		$	422,698		$	(381,979	)		$	—		$	40,719
Description				Gross Amounts of Recognized Liabilities				Gross Amounts Offset in the Statement of Assets and Liabilities			Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities
Credit Default Swap Agreements					$	108,850			$	—		$	108,850
Forward Currency Contracts						535,118				—			535,118
Total					$	643,968			$	—		$	643,968
				Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Liabilities Presented in Statement of Assets and Liabilities			Financial Instruments				Collateral Pledged			Net Amounts
Barclays Bank PLC		$	99,889		$	(25,181	)		$	—		$	74,708
Citibank NA			247,354			(199,212	)			—			48,142
HSBC Bank USA NA			22,782			(22,782	)			—			—
JPMorgan Chase Bank NA			236,147			(97,008	)			—			139,139
Standard Chartered Bank			36,036			(36,036	)			—			—
UBS AG			1,760			(1,760	)			—			—
Total		$	643,968		$	(381,979	)		$	—		$	261,989

102 Annual Report

Emerging Markets Debt Portfolio

Description				Gross Amounts of Recognized Assets				Gross Amounts Offset in the Statement of Assets and Liabilities			Net Amounts of Assets Presented in the Statement of Assets and Liabilities
Forward Currency Contracts					$	117,476			$	—		$	117,476
				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		$	67,448		$	(67,448	)		$	—		$	—
JPMorgan Chase Bank NA			16,263			—				—			16,263
Standard Chartered Bank			19,770			(19,770	)			—			—
UBS AG			13,995			(4,871	)			—			9,124
Total		$	117,476		$	(92,089	)		$	—		$	25,387
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					$	96,405			$	—		$	96,405
				Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Liabilities Presented in Statement of Assets and Liabilities			Financial Instruments				Collateral Pledged			Net Amounts
Barclays Bank PLC		$	68,585		$	(67,448	)		$	—		$	1,137
Standard Chartered Bank			22,949			(19,770	)			—			3,179
UBS AG			4,871			(4,871	)			—			—
Total		$	96,405		$	(92,089	)		$	—		$	4,316

Annual Report 103

Explorer Total Return Portfolio

Description				Gross Amounts of Recognized Assets				Gross Amounts Offset in the Statement of Assets and Liabilities				Net Amounts of Assets Presented in the Statement of Assets and Liabilities
Forward Currency Contracts					$	1,024,276			$	—			$	1,024,276
				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 (a)				Net Amounts
Barclays Bank PLC		$	222,017		$	(222,017	)		$	—			$	—
HSBC Bank USA NA			64,460			(31,453	)			—				33,007
JPMorgan Chase Bank NA			236,063			(236,063	)			—				—
Standard Chartered Bank			290,557			(118,114	)			—				172,443
UBS AG			211,179			(16,017	)			—				195,162
Total		$	1,024,276		$	(623,664	)		$	—			$	400,612
Description				Gross Amounts of Recognized Liabilities				Gross Amounts Offset in the Statement of Assets and Liabilities				Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities
Credit Default Swap Agreements					$	849,031			$	—			$	849,031
Forward Currency Contracts						251,017				—				251,017
Interest Rate Swap Agreements						88,218				—				88,218
Total					$	1,188,266			$	—			$	1,188,266
				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 (a)				Net Amounts
Barclays Bank PLC		$	290,167		$	(222,017	)		$	—			$	68,150
HSBC Bank USA NA			31,453			(31,453	)			—				—
JPMorgan Chase Bank NA			732,515			(236,063	)			(290,000	)			206,452
Standard Chartered Bank			118,114			(118,114	)			—				—
UBS AG			16,017			(16,017	)			—				—
Total		$	1,188,266		$	(623,664	)		$	(290,000	)		$	274,602

^(a) Collateral amounts disclosed in the table above may be adjusted due to the requirement to limit collateral amounts to avoid the effect of over-collateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein.

104 Annual Report

Emerging Markets Income Portfolio

Description				Gross Amounts of Recognized Assets				Gross Amounts Offset in the Statement of Assets and Liabilities			Net Amounts of Assets Presented in the Statement of Assets and Liabilities
Forward Currency Contracts					$	176,307			$	—		$	176,307
				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
BNP Paribas SA		$	308		$	—			$	—		$	308
Citibank NA			110,971			(110,971	)			—			—
HSBC Bank USA NA			1,082			(1,082	)			—			—
JPMorgan Chase Bank NA			41,895			(41,895	)			—			—
Standard Chartered Bank			22,051			(22,051	)			—			—
Total		$	176,307		$	(175,999	)		$	—		$	308
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					$	370,848			$	—		$	370,848
				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		$	197,817		$	(110,971	)		$	—		$	86,846
HSBC Bank USA NA			29,067			(1,082	)			—			27,985
JPMorgan Chase Bank NA			92,235			(41,895	)			—			50,340
Standard Chartered Bank			43,158			(22,051	)			—			21,107
UBS AG			8,571			—				—			8,571
Total		$	370,848		$	(175,999	)		$	—		$	194,849

11. Subsequent Events

Management has evaluated subsequent events affecting the Fund through the issuance of the financial

statements and has determined that there were no subsequent events that required adjustment or disclosure.

Annual Report 105

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

To the Board of Directors of The Lazard Funds, Inc. and the Shareholders of Lazard Emerging Markets Equity Portfolio, Lazard Emerging Markets Core Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Advantage Portfolio, Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi Asset Portfolio, Lazard Emerging Markets Debt Portfolio, Lazard Explorer Total Return Portfolio and Lazard Emerging Markets Income Portfolio:

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 Advantage Portfolio, Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi Asset Portfolio, Lazard Emerging Markets Debt Portfolio, Lazard Explorer Total Return Portfolio and Lazard Emerging Markets Income Portfolio (collectively, the “Portfolios”), nine of the portfolios constituting The Lazard Funds, Inc. (the “Funds”) as of December 31, 2015, and the related statements of operations for the period then ended, and the statements of changes in net assets and the financial highlights for the periods ended December 31, 2015 and December 31, 2014, where presented. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the periods presented on or before December 31, 2013 were audited by other auditors whose report, dated February 28, 2014, expressed an unqualified opinion on those financial highlights.

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 Portfolios are not required to have, nor were we engaged to perform, an audit of their 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 Portfolios’ 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, 2015, 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 Emerging Markets Equity Portfolio, Lazard Emerging Markets Core Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Advantage Portfolio, Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi Asset Portfolio, Lazard Emerging Markets Debt Portfolio, Lazard Explorer Total Return Portfolio and Lazard Emerging Markets Income Portfolio of The Lazard Funds, Inc. as of December 31, 2015, the results of their operations for the period then ended, and the changes in their net assets and the financial highlights for the periods ended December 31, 2015 and December 31, 2014, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE &TOUCHE LLP
New York, New York
February 29, 2016

106 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 (62)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012)
		Cornell Law School, Visiting Professor of Practice (2015 – present); previously, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)
Kenneth S. Davidson (70)	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 (53)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
		TIAA-CREF Funds (65 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 (44)	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)
Richard Reiss, Jr. (71)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		Resource Americas, Inc., a real estate management company, Director (2016 – present)
		O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (68)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

Annual Report 107

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)
Interested Directors(4):
Charles L. Carroll (55)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (55)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present)
		Lazard Ltd, Vice Chairman and Director (2010 – present)

(1)	The address of each Director of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each Director serves as a Director for each of the funds in the Lazard Fund Complex (comprised of, as of January 31, 2016, 41 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 funds in the Lazard Fund Complex.
(3)	“Independent Directors” are not “interested persons” (as defined in the 1940 Act) of the Fund.
(4)	Messrs. Bhutani and Carroll are “interested persons” (as defined in the 1940 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.

108 Annual Report

Name (Age) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) During the Past Five Years
Officers(3):
Nathan A. Paul (43)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Stephen St. Clair (57)	Treasurer (May 2003)	Vice President of the Investment Manager
Mark R. Anderson (45)	Chief Compliance Officer (September 2014)	Director and Chief Compliance Officer 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 (40)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) and Director of Legal Affairs (since July 2015) of the Investment Manager
Shari L. Soloway (34)	Assistant Secretary (November 2015)	Senior Vice President, Legal and Compliance, of the Investment Manager (since September 2015)
		Vice President and Associate General Counsel of GE Asset Management (July 2011 – September 2015)
		Associate at Clifford Chance US LLP (2006 – July 2011)
Cesar A. Trelles (41)	Assistant Treasurer (December 2004)	Vice President of the Investment Manager

(1)	The address of each officer of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each officer serves for an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation or removal. Each officer serves in the same capacity for the other funds in the Lazard Fund Complex.
(3)	In addition to Charles L. Carroll, President, whose information is included in the Interested Directors section.

Annual Report 109

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

Tax Information

Year Ended December 31, 2015

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2015:

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

Portfolio	Percentage
Emerging Markets Equity	100.00	%
Emerging Markets Core Equity	100.00
Developing Markets Equity	85.90
Emerging Markets Equity Advantage	72.31
Emerging Markets Equity Blend	100.00
Emerging Markets Multi Asset	100.00
Emerging Markets Debt	—
Explorer Total Return	—
Emerging Markets Income	—

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

Portfolio	Percentage
Emerging Markets Equity	—	%
Emerging Markets Core Equity	—
Developing Markets Equity	8.05
Emerging Markets Equity Advantage	—
Emerging Markets Equity Blend	0.63
Emerging Markets Multi Asset	0.51
Emerging Markets Debt	—
Explorer Total Return	—
Emerging Markets Income	—

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

Proxy Voting

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

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

Form N-Q

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

110 Annual Report

The Lazard Funds, Inc.

30 Rockefeller Plaza

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

Investment Manager

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

Distributor

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

Custodian

State Street Bank and Trust Company
One 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, 2015

Equity Funds
Lazard US Equity Concentrated Portfolio	Lazard International Equity Concentrated Portfolio
Lazard US Strategic Equity Portfolio	Lazard International Strategic Equity Portfolio
Lazard US Mid Cap Equity Portfolio	Lazard International Equity Advantage Portfolio
Lazard US Small-Mid Cap Equity Portfolio	Lazard International Small Cap Equity Portfolio
Lazard US Small Cap Equity Growth Portfolio	Lazard Global Equity Select Portfolio
Lazard International Equity Portfolio	Lazard Global Strategic Equity Portfolio
Lazard International Equity Select Portfolio	Lazard Managed Equity Volatility Portfolio

PRIVACY NOTICE Revised September 30, 2015

FACTS	What does Lazard do with your personal information?
Why?	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
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How?	All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Lazard chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does Lazard share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products andservices to you	No	We do not share
For joint marketing with other financial companies	No	We do not share
For our affiliates’ everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates’ everyday business purposes — information about your creditworthiness	No	We do not share
For nonaffiliates to market to you	No	We do not share

Questions? Call 800-823-6300 or go to http://www.LazardNet.com  

Who we are
Who is providing this notice?	Lazard Asset Management LLC, Lazard Alternatives, LLC, Lazard Asset Management (Canada), Inc., Lazard Asset Management Securities LLC on their own behalf and on behalf of the funds they manage.
What we do
How does Lazard protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We believe the measures also comply with applicable state laws.
How does Lazard collect my personal information?	We collect your personal information, for example, when you:   • Open an account   • Seek advice about your investments   • Direct us to buy securities   • Direct us to sell your securities   • Enter into an investment advisory contract We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?	Federal law gives you the right to limit only:
	• Sharing for affiliates’ everyday business purposes—information about your creditworthiness   • Affiliates from using your information to market to you   • Sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.
Definitions
Affiliates	Companies related by common ownership or control. They can be financial and nonfinancial companies. Our affiliates include financial companies whose names include “Lazard.”
Nonaffiliates	Companies not related by common ownership or control. They can be financial and nonfinancial companies. Lazard does not share information with nonaffiliates so they can market to you.
Joint marketing	A formal agreement between nonaffiliated financial companies that together market financial products or services to you. Lazard does not jointly market.
Other important information
Lazard Asset Management (Canada), Inc. does not disclose any non-public personal information about its customers or former customers to any third party, except as permitted by or required by any applicable law, including the laws of the United States and Canada.

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
11	Performance Overviews
25	Information About Your Portfolio’s Expenses
29	Portfolio Holdings Presented by Sector
30	Portfolios of Investments
30	Lazard US Equity Concentrated Portfolio
31	Lazard US Strategic Equity Portfolio
33	Lazard US Mid Cap Equity Portfolio
34	Lazard US Small-Mid Cap Equity Portfolio
36	Lazard US Small Cap Equity Growth Portfolio
38	Lazard International Equity Portfolio
40	Lazard International Equity Select Portfolio
42	Lazard International Equity Concentrated Portfolio
43	Lazard International Strategic Equity Portfolio
45	Lazard International Equity Advantage Portfolio
48	Lazard International Small Cap Equity Portfolio
50	Lazard Global Equity Select Portfolio
52	Lazard Global Strategic Equity Portfolio
54	Lazard Managed Equity Volatility Portfolio
57	Notes to Portfolios of Investments
60	Statements of Assets and Liabilities
64	Statements of Operations
68	Statements of Changes in Net Assets
74	Financial Highlights
91	Notes to Financial Statements
103	Report of Independent Registered Public Accounting Firm
104	Board of Directors and Officers Information
107	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 2015, global equity market volatility increased due to the prospect of a debt default by Greece, uncertain global monetary policy, and oil price instability. In the US, markets rose modestly as the labor market improved and corporate earnings generally exceeded expectations. Japanese equities extended their impressive streak as Abenomics reforms began to pay dividends. In Europe, the economic recovery continued, but investor enthusiasm remained tepid as countries in the region made mixed progress. Meanwhile, emerging markets assets recorded another difficult year due to economic and political challenges and uncertainty about the possibility of interest rate increases in the US.

Interest rates diverged around the world after the US Federal Reserve announced its highly anticipated rate hike on December 16, and the US yield curve flattened as shorter-maturity yields rose slightly more than those with longer maturities. Currencies were volatile in 2015 and the US dollar strengthened against most of its global counterparts. Investor enthusiasm for European bonds with very low or negative yields waned as the effects of European Central Bank bond repurchases began to fade.

At Lazard Asset Management, we remain focused on active management and are committed to responsibly pursuing the Portfolios’ investment objectives so that you, a valued shareholder in Lazard Funds, achieve your financial goals. As the investment landscape changes, we endeavor to provide suitable portfolio solutions for investors. With this in mind, we launched three new quantitative mutual funds in 2015, namely the Lazard International Equity Advantage Portfolio, the Lazard Managed Equity Volatility Portfolio, and the Lazard Emerging Markets Equity Advantage Portfolio.

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

The S&P 500^® Index rose 1.4% during 2015. Markets rose as investors continued to weigh the prospects of a self-sustaining economic recovery against the potential effects of an interest rate increase. Corporate earnings generally exceeded lowered expectations during the year, while the labor market continued to improve, with the unemployment rate falling to a pre-recession low of 5.0% in October. The US economy grew unevenly during the year; fourth quarter 2014 GDP growth exceeded expectations, but the economy contracted in the first quarter of 2015, though this was largely attributed to nonrecurring events, and was followed by a strong recovery in the second and third quarters. Volatility increased and markets sold off during the third quarter due to a combination of worries over China, weakness in commodity prices, and fading expectations for higher interest rates. In August, the S&P 500 experienced its first 10% correction since fourth quarter of Q2011 and the CBOE Volatility Index^® (VIX) closed at levels last seen during that timeframe. However, US economic indicators were generally strong toward the end of the year, and markets recovered strongly in the fourth quarter, as fears of a “hard landing” in China subsided and investors became more comfortable with the US Federal Reserve’s December interest rate hike, its first in nine years. Oil prices hit lows in December not seen since early 2009, and US oil inventories rose to a record high, hurting shares of companies with exposure to energy and commodities prices.

International Equities

International equities ended 2015 roughly flat in US dollar terms. The year was broadly characterized by weakening global growth, especially in traded goods and in China, offset by monetary policy that remained extremely accommodative, especially in Europe and Japan. In December, with the US Federal Reserve ending quantitative easing (QE) and raising rates for the first time since June 29, 2006, the US dollar strengthened materially, especially against the euro and against emerging market currencies. In this environment, commodity prices saw continuous declines, and the related sectors of energy, materials, utilities, and capital goods came under pressure. Banks also struggled with a lack of growth and an inability to make

decent margins in an environment of extraordinarily low interest rates. The market leaders were the sectors perceived as more stable such as consumer staples, healthcare, technology, and telecoms. Autos and airlines also rose as they benefited from lower oil prices and financing costs. Emerging markets were very weak, especially in US dollar terms, while Japan outperformed as early signs emerged of a greater focus from Japanese companies on profitability and returns.

Lazard US Equity Concentrated Portfolio

For the year ended December 31, 2015, the Lazard US Equity Concentrated Portfolio’s Institutional Shares posted a return of 7.00%, while Open Shares posted a total return of 6.67%, as compared with the 1.38% return for the S&P 500 Index.

Stock selection in the consumer staples sector contributed to performance. Shares of beer maker Molson Coors Brewing rose amid speculation that the company would be buying the remaining stake in its Miller-Coors joint venture (JV) with SABMiller. The company officially announced a deal for the JV late in the year. A lack of exposure to the energy sector also helped performance, as the sector was the worst performer in the index during the year. Stock selection and an overweight position in the health care sector also helped returns. Shares of biopharmaceutical company Baxalta rose after the company reported strong results, driven by its hemophilia and plasma businesses. Shares also rose after drug-maker Shire announced a bid to acquire Baxalta for over $30 billion.

In contrast, stock selection in the information technology sector detracted from performance. Shares of business solutions provider Xerox fell after announcing lower revenues and guidance associated with the higher-than-anticipated costs for new contracts. We sold our position in August in pursuit of better opportunities elsewhere. Also in the information technology sector, shares of IBM fell as quarterly results were hurt by revenue weakness, impacted by lower sales in software and BRICs countries. We sold our position in October in pursuit of opportunities with better risk-reward profiles elsewhere.

Annual Report  3

Lazard US Strategic Equity Portfolio

For the year ended December 31, 2015, the Lazard US Strategic Equity Portfolio’s Institutional Shares posted a total return of -4.75%, while Open Shares posted a total return of -5.11%, and R6 Shares posted a total return of -4.78%, as compared with the 1.38% return for the S&P 500 Index.

A lack of exposure to the utilities sector contributed to relative performance, as the sector was among the worst performers in the index during the year. Stock selection in the consumer staples sector also helped returns, including shares of packaged food maker Kellogg, which rose after the company reported strong earnings and management issued encouraging guidance. Shares also rose amid speculation that the company might be involved in mergers and acquisitions activity.

In contrast, stock selection in the consumer discretionary sector hurt returns. Shares of media company Viacom fell amid speculation that Dish Network may drop some of Viacom’s channels, as well as concerns about declining advertising revenues. Stock selection in the information technology sector also detracted from performance. Shares of business solutions provider Xerox fell after the company announced lower revenues and guidance associated with the higher-than-anticipated costs for new contracts. We sold our position in Xerox in September in pursuit of better opportunities elsewhere.

Lazard US Mid Cap Equity Portfolio

For the year ended December 31, 2015, the Lazard US Mid Cap Equity Portfolio’s Institutional Shares posted a total return of -2.97%, while Open Shares posted a total return of -3.24%, as compared with the -2.44% return for the Russell Midcap^® Index.

An underweight position in the energy sector contributed to performance, as the sector was the worst performer in the index during the year. Stock selection in the health care sector also helped returns. Shares of medical device maker Natus Medical rose after the company reported quarterly earnings above expectations and management raised its earnings guidance for the year, driven by stronger revenues.

In contrast, stock selection in the financials sector hurt returns. Shares of consumer financial services provider OneMain fell amid concerns about the company’s funding costs in a rising rate environment, and as many investors moved away from shares of companies with subprime loan exposure. Stock selection in the industrials sector also detracted from performance. Shares of intermodal container lessor TAL International fell after the company reported first quarter earnings below expectations, hurt by lower lease rates. We sold our position in June, as we saw opportunities with better risk-reward profiles elsewhere.

Lazard US Small-Mid Cap Equity Portfolio

For the year ended December 31, 2015, the Lazard US Small-Mid Cap Equity Portfolio’s Institutional Shares posted a total return of -2.14% while Open Shares posted a total return of -2.47%, as compared with the -2.90% return for the Russell 2500^® Index.

Stock selection in the information technology sector contributed to performance. Shares of display maker Universal Display rose after the company announced an organic light emitting diode (OLED) technology licensing agreement with LG through 2022, and amid speculation that Apple was filing for an OLED patent related to smartphones. Stock selection in the financials sector also helped performance. Shares of regional bank Great Western rose after the company reported quarterly earnings that exceeded expectations, driven by stronger revenues and lower expenses.

In contrast, stock selection in the materials sector detracted from performance. Shares of chemical maker Tronox fell after the company reported disappointing earnings, as unfavorable pricing hurt results. We sold our position in September, as our investment thesis changed and we saw opportunities with better risk-reward profiles elsewhere. Stock selection in the health care sector also hurt returns. Shares of medical technology maker Fluidigm fell after the company reported earnings that were below expectations and management made multiple downward revisions to its prior earnings guidance for the year, citing weakness in its BioMark electronic identification business and its C1 single-cell prep instrument. We sold our

4  Annual Report

position in October, as we saw opportunities with better risk-reward profiles elsewhere.

Lazard US Small Cap Equity Growth Portfolio

For the year ended December 31, 2015, the Lazard US Small Cap Equity Growth Portfolio’s Institutional Shares posted a total return of 7.39%, while Open Shares posted a total return of 7.09%, as compared with the -1.38% return for the Russell 2000^® Growth Index.

Stock selection in the health care sector helped returns. Shares of biopharmaceutical company Anacor rose after the company announced favorable results for its experimental dermatitis drug. Stock selection in the industrials sector also contributed to performance. Shares of building materials distributor Beacon Roofing rose after the company announced quarterly earnings above expectations, driven by strong sales and gross margin expansion, and after the company announced several accretive acquisitions of private competitors.

In contrast, an underweight position and stock selection in the information technology sector detracted from performance. Shares of electronic payments company VeriFone declined amid lackluster quarterly earnings as well as concerns about the company’s ability to meet its guidance in the face of significant macroeconomic headwinds. We sold our position in December, as we saw opportunities with better risk-reward profiles elsewhere. Stock selection in the consumer staples sector also hurt returns. Shares of natural food distributor United Natural Foods fell after the company unexpectedly announced the ending to its contract with supermarket operator Albertsons. We sold our position after the announcement in July, as we saw opportunities with better risk-reward profiles elsewhere.

Lazard International Equity Portfolio

For the year ended December 31, 2015, the Lazard International Equity Portfolio’s Institutional Shares posted a total return of 1.62%, while Open Shares posted a total return of 1.36%, as compared with the -0.81% return for the MSCI EAFE^® Index (the “EAFE Index”). The R6 Shares posted a total return of -4.10% for the period since inception on April 1, 2015 through

December 31, 2015, compared with the -5.56% return for the EAFE Index for the same period.

The Portfolio strongly outperformed the EAFE Index during the year. Stock selection in the financials sector was additive to returns, as shares of Japanese real estate construction company Daiwa House rose sharply on better-than-expected results, while Finnish financial services business Sampo continued to benefit from its very strong capital discipline. Within the consumer discretionary sector, stock selection also helped returns as auto supplier Valeo gave very encouraging profit guidance. In the consumer staples sector, shares of Belgian brewer Anheuser-Busch InBev rose on the announcement of plans to divest the company’s MillerCoors stake following the proposed acquisition of SABMiller. The investment increases the likelihood that its acquisition of rival SABMiller would be successful, as it reduces regulatory concerns. Within the industrials sector, shares of Swedish lock manufacturer Assa Abloy rose as the CEO expressed his belief that the company can increase organic growth to over 5%. Lastly, a lower-than-benchmark allocation to the underperforming materials sectors was additive to relative returns.

In contrast, stock selection in the health care sector hurt the Portfolio’s relative returns as its pharmaceutical holdings, such as Novartis in Switzerland and Bayer in Germany, both underperformed on increased regulatory concerns. Stock selection in the telecom services sector also detracted from relative returns, as shares of Japanese conglomerate SoftBank fell on concerns about slowing growth at its Chinese e-commerce holding, Alibaba. The stock recovered somewhat in the fourth quarter as Alibaba reported encouraging results. Also in the sector, a holding in Turkcell hurt returns, due to a weak Turkish lira and political uncertainty despite strong company fundamentals. Additionally, the Portfolio suffered from positioning and stock selection in emerging markets, as Brasilian holdings BB Seguridade and Estacio were hurt by adverse economic conditions and by the decline in the Brazilian real. Shares of Piraeus Bank and Hellenic Telecom declined due to the uncertainty of Greece leaving the euro currency bloc. The positions in Piraeus and Hellenic Telecom were sold prior

Annual Report  5

to the implementation of capital controls that closed the Greek banking system for three weeks.

Lazard International Equity Select Portfolio

For the year ended December 31, 2015, the Lazard International Equity Select Portfolio’s Institutional Shares posted a total return of -3.63%, while Open Shares posted a return of -3.85%, as compared with the -5.66% return for the MSCI All Country World^® Index ex-US.

The Portfolio’s Institutional Shares strongly outperformed the MSCI All Country World Index ex-US during the year. Stock selection in the financials sector was additive to relative returns, as shares of Japanese real estate construction company Daiwa House rose sharply on better-than-expected results. Also within the sector, Italian asset manager Mediolanum saw very strong inflows, while Finnish financial services business Sampo continued to benefit from its very strong capital discipline. Stock selection in the consumer staples sector also helped drive relative returns as shares of Belgian brewer Anheuser-Busch InBev rose on the announcement of plans to divest the company’s MillerCoors stake following the proposed acquisition of SABMiller. The investment increases the likelihood that its acquisition of rival SABMiller would be successful, as it reduces regulatory concerns. Lastly, a lower-than-benchmark allocation to the underperforming energy and materials sectors was additive to relative returns.

In contrast, stock selection in the telecommunications services sector detracted from relative returns as shares of Japanese conglomerate SoftBank fell on concerns about slowing growth at its Chinese e-commerce holding, Alibaba. The stock recovered somewhat in the fourth quarter as Alibaba reported encouraging results. Also in the sector, a holding in Turkcell hurt returns, due to a weak Turkish lira and political uncertainty despite strong company fundamentals. Additionally, the Portfolio suffered from stock selection in emerging markets, as Brazilian holdings BB Seguridade and Estacio were hurt by adverse economic conditions and by the decline in the Brazilian real. Elsewhere, South African packaging company Nampak and Thai bank Kasikornbank declined on

worsening conditions in their end markets, while in Greece, shares of Piraeus Bank declined due to the uncertainty of the country potentially leaving the euro currency bloc. Piraeus was sold prior to the implementation of capital controls that closed the Greek banking system for three weeks.

Lazard International Equity Concentrated Portfolio

For the year ended December 31, 2015, the Lazard International Equity Concentrated Portfolio’s Institutional Shares posted a total return of -12.06%, while Open Shares posted a total return of -12.18%, as compared with the -5.66% return for the MSCI All Country World Index ex-US.

Stock selection in the industrials sector was a head-wind, where a position in the Australian facility management company Spotless declined as the company announced they had not been selected for a large contract, and there were unexpected higher costs associated with the integration of a recent acquisition. Elsewhere in the sector, shares of British engineering solutions company Weir fell as oil prices declined, with the market speculating that volume and pricing could be more adverse, despite Weir’s ongoing cost-cutting program.

In contrast, stock selection in the information technology sector helped the Portfolio’s relative returns, as shares of Chinese internet search company Baidu benefited as an earnings report suggested investment in online-to-offline activities was gaining traction, fueled by inexpensive valuation. Elsewhere in the sector, shares of Taiwan Semiconductor also defended well amid strong earnings and an outlook that was better than expected. The Portfolio also benefited from stock selection in the telecommunications services sector, as Japanese telecom KDDI rose as industry regulation continued to be benign, relieving an unfounded concern in the market. Lastly, the Portfolio was helped by having a lower-than-benchmark allocation to the underperforming energy and materials sectors, as a reduced weighting in commodity stocks sheltered the Portfolio from the worst performing sectors of the market.

6  Annual Report

Lazard International Strategic Equity Portfolio

For the year ended December 31, 2015, the Lazard International Strategic Equity Portfolio’s Institutional Shares posted a total return of -1.70%, while Open Shares posted a total return of -1.89%, as compared with the -0.81% return for the EAFE Index . The R6 Shares posted a total return of -1.73% for the period since inception on January 19, 2015 through December 31, 2015, compared with the 1.05% return for the EAFE Index for the same period.

While stock selection was strong in most developed markets, the Portfolio’s exposure to, and stock selection within, emerging markets held back overall returns.

In the materials sector, the Portfolio’s holdings, including beverage can maker Rexam, held up well, while relative performance benefited from the lack of exposure to mining companies. However, this was partially offset by the fall in the share price of African packaging company Nampak, which was hurt by currency devaluation, operational missteps, and pressure on the macroeconomic position of two key end markets, Nigeria and Angola—both major oil-exporting countries. In the industrials sector, power tools company Makita of Japan and lockmaker Assa Abloy of Sweden saw improving construction markets, but, in the Philippines, Alliance Global suffered from rising competition in both its casino and spirits operations.

On the consumer discretionary side, auto supplier Valeo gave very encouraging profit guidance, and media company Informa saw a stabilizing business and rerating, but this was outweighed by the fall in Brazilian education provider Estacio. The company suffered from a change in government financing support for the sector, exacerbated by the weakening currency and macro situation in Brazil. In consumer staples, Japan Tobacco and ingredients maker Kerry reported good progress through a difficult year.

In the financials sector, Italian asset manager Azimut saw very strong inflows, while Finnish financial services business Sampo continued to benefit from its very strong capital discipline. In Japan, specialist constructor Daiwa House was helped by improving end markets. However, this was offset by a sharp fall in

the value of Greek bank Piraeus following the country’s election of a radical populist government, and by a fall in Turkish bank Halk Bankasi as a result of currency weakness and political uncertainty.

In the technology sector, specialist payments company Worldpay rose strongly after its initial public offering, helped by solid business performance, but, in the telecommunications sector, the Portfolio was hurt by its exposure to Turkish operator Turkcell.

New Fund Launched: Lazard International Equity Advantage Portfolio

For the period since inception on May 29, 2015 through December 31, 2015, the Lazard International Equity Advantage Portfolio’s Institutional Shares posted a total return of -6.63%, while Open Shares posted a total return of -6.80%, as compared with the -8.67% return for the EAFE Index.

The increase in market volatility impacted the Portfolio, which declined during the period. Favorable stock selection managed to provide an incremental return above the EAFE Index, helped largely by the holdings in the consumer discretionary, materials, and the financials sectors. Stock selection in the industrials and utilities sectors was the only notable weakness. Stocks which helped the Portfolio included CSL, the Australian biotech concern, which continues to see strong sales growth, helped by a significant recall made by one of their major competitors. Bellway, the UK-based real estate developer, continues to benefit from the high demand and price increases in and around London. Auto Trader, an online automobile exchange operating in the United Kingdom, also enjoyed strong returns as 2015 was the strongest period for car sales in the past eight years. Detractors during the period included Minebea, a Japan-based technology manufacturer of ball bearing and light emitting diode backlights for smart phones. The company fell after missing its sales targets. The global slump in smartphone demand weighed on the stock, and delayed shipment from a major supplier caused the stock to come under selling pressure. Sumitomo Rubber slumped after the announcement that the company was discontinuing its long-standing relationship with Goodyear in the production of the Dunlop

Annual Report  7

tire brand. The company claimed that it was losing money in the US arrangement, but investors were concerned about the revenue replacement. Sumitomo Rubber will retain its Falken brand in the US. Centrica, the UK utility, remains under pricing pressure as the company failed to win tariff relief and as the fall in oil prices hurt its oil and gas business. The company cut its dividend, which still carries a 5.7% yield.

Lazard International Small Cap Equity Portfolio

For the year ended December 31, 2015, the Lazard International Small Cap Equity Portfolio’s Institutional Shares posted a total return of 9.71%, while Open Shares posted a total return of 9.49%, as compared with the 9.59% return for the MSCI EAFE Small Cap^® Index.

The Portfolio posted solid gains in 2015 and outperformed its benchmark index, gross of fees. Stock selection in a number of sectors contributed to the outperformance, led by the consumer staples, materials, and energy sectors. Stock selection in industrials and health care detracted from performance. Regionally, with the exception of Canada and emerging markets, stock selection in all major regions made positive contributions, with particularly strong performance in Japan and continental Europe. Below are some of the individual names that impacted the Portfolio in 2015.

Ariake Japan, a Japan-based producer of meat-based natural seasonings and flavorings, was a positive contributor. The company has strong market share in Japan and is expanding its overseas presence with investments in the US, Europe, China and Taiwan. The labor shortage in Japan is leading restaurants to out-source more soups and sauces, creating demand for Ariake’s finished products. In the US, the company is making investments in livestock production to boost capacity for its meat-based seasonings. Increased health awareness is boosting demand for natural seasonings, which should support stable top-line and profit growth for Ariake.

Rightmove, a UK-listed company that is the leader in online property listings across Great Britain, also contributed to positive performance. Concerns about the impact of a new entrant into the company’s marketplace, which had weighed on the stock for some time,

began to moderate in early 2015. Strong operating results reported throughout the year, highlighting minimal customer loss, boosted the shares. As of December 31, 2015, we continue to own the stock owing to its high return potential, attractive growth with ongoing pricing power, and strong capital management.

HSS, a leading UK equipment rental company, detracted from performance in 2015. The investment thesis for this stock relied on successful execution of an aggressive rollout strategy combined with cyclically improving trading in a strong UK economy. The company had a good start to 2015 (with mid-teens organic revenue growth) but the second quarter proved more challenging, with growth slowing to around 8% due to UK election uncertainty and the impact of cold weather on demand for certain product lines. We exited the position after a second profit warning in a two-month period called into question management’s ability to execute on their growth strategy and position the company in a more difficult operating environment.

Entertainment One, an international film distributor, television producer, and family entertainment provider, also detracted from performance for the year. Weakness in the share price stemmed from an announcement of a new issue of high yield debt to replace the company’s lower cost term facility debt. Management believes the new debt issue provides more flexibility as it is covenant light. We believe the company has attractive assets and is positioned to benefit from increasing demand for digital content as there are more distribution channels in the market to monetize content, but we decided to exit the position after determining that management’s capital management policies were not in the best interest of shareholders.

Lazard Global Equity Select Portfolio

For the year ended December 31, 2015, the Lazard Global Equity Select Portfolio’s Institutional Shares posted a total return of 0.46%, while Open Shares posted a total return of 0.24%, as compared with the -2.36% return for the MSCI All Country World Index.

Stock selection and an overweight position in the technology sector contributed to performance in the

8  Annual Report

past twelve months. Shares of diversified technology and online search company Alphabet climbed on solid fundamental growth, driven by strong performance its mobile segment. Investors were also encouraged by management’s new focus on capital discipline and increased transparency through the separation of its core search from its other businesses under a parent company. We believe that the company remains well-positioned in its core search business, and that its platform of six products with over one billion users each creates significant optionality for future growth. Stock selection in the consumer discretionary sector also helped performance. Shares of Anheuser-Busch InBev, a global beer company, rose on strong earnings growth and plans to acquire SABMiller, which would lead to over $1.4 billion in cost synergies. We continue to like Anheuser-Busch InBev as we believe the deal creates significant value for shareholders, with increasing returns-on-invested-capital, meaningful earnings accretion and the creation of a one-of-a-kind consumer company.

In contrast, stock selection in the industrials sector detracted from performance. Shares of Spotless Group, a building maintenance and service company in Australia, fell after the company lowered its profit outlook and noted business growth had slowed. We exited the position as we saw more attractive opportunities elsewhere. Stock selection in the consumer discretionary sector also hurt performance. Shares of Viacom, a media conglomerate, declined amid concerns about ratings, uncertainty surrounding the renewal of the company’s affiliate fee with Dish and the potential for revenue declines. We exited the position during the period as we saw better uses of capital.

Lazard Global Strategic Equity Portfolio

For the year ended December 31, 2015, the Lazard Global Strategic Equity Portfolio’s Institutional Shares posted a total return of -1.85%, while Open Shares posted a total return of -2.16%, as compared with the -2.36% return for the MSCI All Country World Index.

The Portfolio performed ahead of its benchmark index in 2015. While stock selection was strong in most developed markets, the Portfolio’s stock selection within emerging markets held back overall returns.

In the energy sector, the Portfolio benefited from its low level of exposure to a falling sector, especially as it owned marketing companies, such as Caltex, which are actually net beneficiaries of falling prices.

In the materials sector, the Portfolio’s holdings, including beverage can maker Rexam, held up well while relative performance benefited from the lack of exposure to mining companies. However, this was offset by the fall in the share price of African packaging company Nampak, which was hurt by currency devaluation, operational missteps, and pressure on the macroeconomic position of two key end markets, Nigeria and Angola—both major oil exporting countries.

In the industrials sector, power tools company Makita of Japan saw improving construction markets, but US industrials sector companies Tyco and Parker Hannifin suffered from a gathering industrial downturn, and, in the Philippines, Alliance Global saw rising competition in both its casino and spirits operations.

Within the consumer discretionary sector, media company Informa saw a stabilizing business and rerating, but this was outweighed by falls elsewhere in the business. Brazilian education company Estacio suffered from a change in government financing support for the sector, exacerbated by the weakening currency and macro situation in Brazil. US media company Viacom found that its low valuation was no support in a period of cyclical and structural pressures on key assets, while Indonesian television station MNC saw slowing advertising sales as the local economy slowed. In the consumer staples sector, it was a tale of improving returns at a number of US consumer franchises, as Kellogg, Smuckers, Molson Coors, and Reynolds American all performed well.

In the financials sector, the Japanese specialist constructor Daiwa House was helped by improving end markets. However, this was offset by a sharp fall in the shares of Greek bank Piraeus Bank following the country’s election of a radical populist government, and by falls in the shares of Turkish bank Halk Bankasi and South African insurer Sanlam as a result of currency weakness and political uncertainty.

Annual Report  9

In the technology sector, a large position in Google (now known as Alphabet) paid off as the company continued to report strong operating results while also starting to improve its disclosure around its non-search activities and to hint at improved focus on shareholder returns. The Portfolio also benefited from the IPO and subsequent strong results of UK online auto specialist Auto Trader, and from continued encouraging progress at global payment networks Visa and Mastercard. In the telecommunications services sector, the Portfolio was hurt by its exposure to Turkish telecom services operator Turkcell.

New Fund Launched: Lazard Managed Equity Volatility Portfolio

For the period since inception on May 29, 2015 through December 31, 2015, the Lazard Managed Equity Volatility Portfolio’s Institutional Shares posted a total return of -2.42%, while Open Shares posted a total return of -2.60%, as compared with the -5.66% return for the MSCI World^® Index.

The Portfolio defended well during the market decline. Over-weights in the consumer discretionary and utilities sectors coupled with an underweight to the energy and materials sectors benefited the Portfolio. The orientation to lower-risk stocks also helped the Portfolio as stock selection contributed to the excess return. Stocks with a favorable impact on the Portfolio included Uni-

bet, the Swedish online gaming company, which soared in the second half of the period after reporting growth in excess of 20% in its European business. The company’s online business grew nearly 50%. Dr. Pepper Snapple also strengthened during the period, benefiting from its focused strategy in the US and a demand shift from soda to still beverages. West Japan Railway also performed well, as the Japan economy begins to feel the positive effects of Abenomics. The company opened a new rail line which boosted traffic and revenue across the system.

Detractors during the period included Statoil, the Nor-wegian integrated oil company, as the company’s share price fell in line with the oil price. Sky Network Television, the dominant cable provider in New Zealand, fell sharply as investors became increasingly concerned with the viability of the pay television business as alternatives begin to gain market share. The operator remains a dominant provider with important exclusive content contracts which should continue to maintain demand. Baytex Energy, the Canadian exploration and production company, declined sharply despite a positive earnings report which exceeded expectations. The company’s capital spending continues to be managed carefully and was well above analyst estimates, reflecting the company’s efforts to improve its bottom line. Production fell below its target, which more than offset the positive earnings surprise.

Notes to Investment Overviews:

Total 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. A period of less than one year is not annualized.

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

The views of the Investment Manager and the securities described in this report are as of December 31, 2015; these views and portfolio holdings may have changed subsequent to this date. Nothing herein should be construed as a recommendation to buy, sell, or hold a particular security. There is no assurance that the securities discussed herein will remain in a Portfolio at the time you receive this report, or that securities sold will not have been repurchased. The specific securities discussed may, in aggregate, represent only a small percentage of a Portfolio’s holdings. It should not be assumed that securities identified and discussed were, or will be, profitable, or that the investment decisions made in the future will be profitable, or equal the investment performance of the securities discussed herein.

The views and opinions expressed are provided for general information only, and do not constitute specific tax, legal, or investment advice to, or recommendations for, any person. There can be no guarantee as to the accuracy of any outlooks for markets, sectors and securities as discussed herein. You should read the Fund’s prospectus or each Portfolio’s summary prospectus for a more detailed discussion of each Portfolio’s investment objectives, strategies, risks and fees.

10  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*

Years Ended December 31, 2015

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	7.00%	13.67%	7.98%
Open Shares**	6.67%	13.29%	7.65%
S&P 500 Index	1.38%	12.57%	7.31%
Russell 1000 Value/S&P 500 Linked Index	1.38%	11.78%	6.40%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report  11

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, 2015

	One	Five	Ten	Since
	Year	Years	Years	Inception	†
Institutional Shares**	–4.75%	10.37%	6.09%	5.99%
Open Shares**	–5.11%	10.04%	5.77%	5.68%
R6 Shares**	–4.78%	N/A	N/A	4.18%
S&P 500 Index	1.38%	12.57%	7.31%	7.07%
				(Institutional and Open Shares) 7.52% (R6 Shares)

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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, Open Shares and R6 Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Institutional and Open Shares was December 30, 2004 and for the R6 Shares was May 19, 2014.

12  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, 2015

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	–2.97%	8.05%	5.64%
Open Shares**	–3.24%	7.73%	5.35%
Russell Midcap Index	–2.44%	11.44%	8.00%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report  13

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, 2015

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	–2.14%	9.04%	7.85%
Open Shares**	–2.47%	8.68%	7.51%
Russell 2500 Index	–2.90%	10.32%	7.56%
Russell 2000/2500 Linked Index	–2.90%	10.32%	7.66%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.

14  Annual Report

Lazard US Small Cap Equity Growth Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Small Cap Equity Growth Portfolio and Russell 2000 Growth Index*

 

Total Returns*

Periods Ended December 31, 2015

	One	Since
	Year	Inception	†
Institutional Shares**	7.39%	7.36%
Open Shares**	7.09%	7.07%
Russell 2000 Growth Index	–1.38%	–1.38%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 2000 Growth Index measures the performance of the small-cap growth segment of the US equity universe. It includes those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was December 31, 2014.

Annual Report  15

Lazard International Equity Portfolio

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

 

Average Annual Total Returns*

Periods Ended December 31, 2015

	One	Five	Ten	Since
	Year	Years	Years	Inception	†
Institutional Shares**	1.62%	6.01%	4.40%	6.04%
Open Shares**	1.36%	5.71%	4.09%	4.76%
R6 Shares**	N/A	N/A	N/A	–4.10%
EAFE Index	–0.81%	3.60%	3.03%	5.09%
				(Institutional Shares)
				4.54%
				(Open Shares)
				–5.56%
				(R6 Shares)

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager 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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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, Open Shares and R6 Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Institutional Shares was October 29, 1991, for the Open Shares was January 23, 1997 and for the R6 Shares was April 1, 2015.

16  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 All Country World^® Index ex-US and MSCI EAFE/All Country World Index ex-US Linked Index*

 

Average Annual Total Returns*

Years Ended December 31, 2015

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	–3.63%	3.66%	2.60%
Open Shares**	–3.85%	3.31%	2.27%
MSCI All Country World Index ex-US	–5.66%	1.06%	2.92%
MSCI EAFE/All Country World Index ex-US Linked Index	–5.66%	1.06%	1.82%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 All Country World Index ex-US 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/All Country World Index 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 All Country World Index ex-US 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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report  17

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 All Country World Index ex-US*

 

Average Annual Total Returns*

Periods Ended December 31, 2015

	One	Since
	Year	Inception	†
Institutional Shares**	–12.06%	–12.26%
Open Shares**	–12.18%	–12.39%
MSCI All Country World Index ex-US	–5.66%	–10.47%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 All Country World Index ex-US 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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was August 29, 2014.

18  Annual Report

Lazard International Strategic Equity Portfolio

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

 

Average Annual Total Returns*

Periods Ended December 31, 2015

	One	Five	Ten	Since
	Year	Years	Years	Inception	†
Institutional Shares**	–1.70%	6.45%	5.50%	6.20%
Open Shares**	–1.89%	6.17%	N/A	4.55%
R6 Shares**	N/A	N/A	N/A	–1.73%
EAFE Index	–0.81%	3.60%	3.03%	3.69%
				(Institutional Shares) 2.44% (Open Shares) 1.05% (R6 Shares)

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager 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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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, Open Shares and R6 Shares may vary, 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, for the Open Shares was February 3, 2006 and for the R6 Shares was January 19, 2015.

Annual Report  19

Lazard International Equity Advantage Portfolio

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

 

Total Returns*

Period Ended December 31, 2015

	Since
	Inception	†
Institutional Shares**	–6.63%
Open Shares**	–6.80%
EAFE Index	–8.67%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was May 29, 2015.

20  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, 2015

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	9.71%	7.85%	4.25%
Open Shares**	9.49%	7.53%	3.95%
MSCI EAFE Small Cap Index	9.59%	6.32%	4.55%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report  21

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 All Country World Index*

Average Annual Total Returns*

Periods Ended December 31, 2015

	One	Since
	Year	Inception	†
Institutional Shares**	0.46%	2.13%
Open Shares**	0.24%	1.88%
MSCI All Country World Index	–2.36%	0.84%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 All Country World 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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was December 31, 2013.

22  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 All Country World Index*

Average Annual Total Returns*

Periods Ended December 31, 2015

	One	Since
	Year	Inception	†
Institutional Shares**	–1.85%	–1.65%
Open Shares**	–2.16%	–1.95%
MSCI All Country World Index	–2.36%	–3.88%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 All Country World 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 and Open Shares may vary, 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  23

Lazard Managed Equity Volatility Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Managed Equity Volatility Portfolio and MSCI World^® Index*

Total Returns*

Period Ended December 31, 2015

	Since
	Inception	†
Institutional Shares**	–2.42%
Open Shares**	–2.60%
MSCI World Index	–5.66%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was May 29, 2015.

24  Annual Report

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

Expense Example

As a shareholder in a Portfolio of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from July 1, 2015 through December 31, 2015 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 shareholder reports of other mutual 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.

Annual Report  25

	Beginning		Ending		Expenses Paid		Annualized Expense
	Account Value		Account Value		During Period*		Ratio During Period
Portfolio	7/1/15		12/31/15		7/1/15 - 12/31/15		7/1/15 - 12/31/15
US Equity Concentrated
Institutional Shares
Actual	$	1,000.00	$	1,030.80		$4.10		0.80	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.17		$4.08		0.80	%
Open Shares
Actual	$	1,000.00	$	1,030.10		$5.48		1.07	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.81		$5.45		1.07	%
US Strategic Equity
Institutional Shares
Actual	$	1,000.00	$	954.10		$3.69		0.75	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.42		$3.82		0.75	%
Open Shares
Actual	$	1,000.00	$	952.00		$5.17		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91		$5.35		1.05	%
R6 Shares
Actual	$	1,000.00	$	953.80		$3.45		0.70	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.68		$3.57		0.70	%
US Mid Cap Equity
Institutional Shares
Actual	$	1,000.00	$	931.30		$5.11		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91		$5.35		1.05	%
Open Shares
Actual	$	1,000.00	$	930.00		$6.57		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	$	921.00		$4.41		0.91	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.62		$4.63		0.91	%
Open Shares
Actual	$	1,000.00	$	919.60		$5.81		1.20	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.16		$6.11		1.20	%
US Small Cap Equity Growth
Institutional Shares
Actual	$	1,000.00	$	953.70		$5.42		1.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.66		$5.60		1.10	%
Open Shares
Actual	$	1,000.00	$	951.90		$6.89		1.40	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.15		$7.12		1.40	%

26  Annual Report

	Beginning		Ending		Expenses Paid		Annualized Expense
	Account Value		Account Value		During Period*		Ratio During Period
Portfolio	7/1/15		12/31/15		7/1/15 - 12/31/15		7/1/15 - 12/31/15
International Equity
Institutional Shares
Actual	$	1,000.00	$	941.20		$4.21		0.86	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.87		$4.38		0.86	%
Open Shares
Actual	$	1,000.00	$	940.30		$5.67		1.16	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.36		$5.90		1.16	%
R6 Shares
Actual	$	1,000.00	$	941.60		$3.96		0.81	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.12		$4.13		0.81	%
International Equity Select
Institutional Shares
Actual	$	1,000.00	$	922.80		$5.09		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91		$5.35		1.05	%
Open Shares
Actual	$	1,000.00	$	921.70		$6.54		1.35	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.40		$6.87		1.35	%
International Equity Concentrated
Institutional Shares
Actual	$	1,000.00	$	860.50		$4.92		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91		$5.35		1.05	%
Open Shares
Actual	$	1,000.00	$	860.10		$6.33		1.35	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.40		$6.87		1.35	%
International Strategic Equity
Institutional Shares
Actual	$	1,000.00	$	925.60		$4.03		0.83	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.02		$4.23		0.83	%
Open Shares
Actual	$	1,000.00	$	924.30		$5.29		1.09	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.71		$5.55		1.09	%
R6 Shares
Actual	$	1,000.00	$	924.70		$5.00		1.03	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.01		$5.24		1.03	%
International Equity Advantage
Institutional Shares
Actual	$	1,000.00	$	955.70		$4.44		0.90	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.67		$4.58		0.90	%
Open Shares
Actual	$	1,000.00	$	954.00		$5.91		1.20	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.16		$6.11		1.20	%

Annual Report  27

	Beginning		Ending		Expenses Paid		Annualized Expense
	Account Value		Account Value		During Period*		Ratio During Period
Portfolio	7/1/15		12/31/15		7/1/15 - 12/31/15		7/1/15 - 12/31/15
International Small Cap Equity
Institutional Shares
Actual	$	1,000.00	$	987.60		$5.76		1.15	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.41		$5.85		1.15	%
Open Shares
Actual	$	1,000.00	$	986.70		$7.06		1.41	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.10		$7.17		1.41	%
Global Equity Select
Institutional Shares
Actual	$	1,000.00	$	981.70		$5.49		1.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.66		$5.60		1.10	%
Open Shares
Actual	$	1,000.00	$	980.60		$6.99		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	$	983.50		$5.50		1.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.66		$5.60		1.10	%
Open Shares
Actual	$	1,000.00	$	982.40		$7.00		1.40	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.15		$7.12		1.40	%
Managed Equity Volatility
Institutional Shares
Actual	$	1,000.00	$	990.60		$3.76		0.75	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.42		$3.82		0.75	%
Open Shares
Actual	$	1,000.00	$	989.00		$5.26		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91		$5.35		1.05	%

* 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).

28  Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2015

Sector*	Lazard US Equity Concentrated Portfolio			Lazard US Strategic Equity Portfolio			Lazard US Mid Cap Equity Portfolio			Lazard US Small-Mid Cap Equity Portfolio			Lazard US Small Cap Equity Growth Portfolio
Consumer Discretionary		24.0	%		13.1	%		23.5	%		15.0	%		14.6	%
Consumer Staples		16.9			10.2			4.8			—			4.4
Energy		—			5.8			3.7			3.7			3.0
Financials		—			17.6			20.5			29.9			14.3
Health Care		22.2			16.2			12.8			9.8			30.5
Industrials		6.4			10.9			6.6			18.5			14.5
Information Technology		22.7			24.4			13.2			15.3			14.7
Materials		—			1.8			5.6			2.4			2.9
Telecommunication Services		—			—			—			—			—
Utilities		—			—			—			4.0			—
Repurchase Agreement		—			—			—			1.4			—
Short-Term Investments		7.8			—			9.3			—			1.1
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Sector*	Lazard International Equity Portfolio			Lazard International Equity Select Portfolio			Lazard International Equity Concentrated Portfolio			Lazard International Strategic Equity Portfolio			Lazard International Equity Advantage Portfolio
Consumer Discretionary		13.7	%		13.5	%		19.5	%		17.7	%		12.5	%
Consumer Staples		11.3			12.4			12.8			13.3			11.6
Energy		5.7			2.1			—			3.4			4.0
Financials		25.6			21.0			27.7			26.1			23.6
Health Care		12.1			13.8			9.6			13.8			13.8
Industrials		9.9			10.8			8.5			4.5			13.0
Information Technology		3.7			10.6			11.3			4.7			4.1
Materials		3.2			3.0			—			6.6			5.8
Telecommunication Services		8.0			7.3			7.2			7.4			5.3
Utilities		1.0			1.9			—			0.7			3.8
Repurchase Agreement		5.8			—			—			—			—
Short-Term Investments		—			3.6			3.4			1.8			2.5
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Sector*				Lazard International Small Cap Equity Portfolio			Lazard Global Equity Select Portfolio			Lazard Global Strategic Equity Portfolio			Lazard Managed Equity Volatility Portfolio
Consumer Discretionary					21.7	%		8.9	%		12.0	%		15.9	%
Consumer Staples					6.7			16.4			18.8			10.6
Energy					2.5			3.2			3.3			2.6
Financials					23.0			19.3			15.5			18.3
Health Care					4.6			14.0			17.9			11.8
Industrials					20.1			10.4			4.1			11.5
Information Technology					12.2			19.7			22.2			7.2
Materials					4.7			2.7			1.9			3.4
Telecommunication Services					0.7			0.9			2.8			7.3
Utilities					—			—			—			7.8
Short-Term Investments					3.8			4.5			1.5			3.6
Total Investments					100.0	%		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

Annual Report  29

The Lazard Funds, Inc. Portfolios of Investments December 31, 2015

Description	Shares		Value
Lazard US Equity Concentrated Portfolio
Common Stocks | 91.9%
Alcohol & Tobacco | 3.2%
Molson Coors Brewing Co., Class B		279,867	$	26,285,109
Commercial Services | 8.0%
Copart, Inc. (a)		944,800		35,911,848
Fidelity National Information Services, Inc.		506,075		30,668,145
				66,579,993
Food & Beverages | 8.5%
Kellogg Co.		976,525		70,573,462
Household & Personal Products | 5.1%
The Procter & Gamble Co.		536,300		42,587,583
Internet Software & Services | 9.8%
Alphabet, Inc., Class A (a)		104,800		81,535,448
Leisure & Entertainment | 15.7%
Houghton Mifflin Harcourt Co. (a)		1,841,952		40,117,715
MSG Networks, Inc. Class A (a)		820,030		17,056,624
Norwegian Cruise Line Holdings, Ltd. (a)		644,790		37,784,694
The Madison Square Garden Co. Class A (a)		217,285		35,156,713
				130,115,746
Pharmaceutical & Biotechnology | 19.3%
Baxalta, Inc.		1,074,050		41,920,171
Mallinckrodt PLC (a)		125,300		9,351,139
Pfizer, Inc.		1,575,167		50,846,391
Zoetis, Inc.		1,214,851		58,215,660
				160,333,361

Description	Shares		Value
Retail | 8.3%
Advance Auto Parts, Inc.		330,265	$	49,708,185
Deckers Outdoor Corp. (a)		333,175		15,725,860
J.C. Penney Co., Inc. (a)		492,045		3,277,020
				68,711,065
Semiconductors & Components | 2.8%
Bruker Corp. (a)		978,874		23,757,272
Technology Hardware | 9.1%
Apple, Inc.		344,432		36,254,912
Cisco Systems, Inc.		1,452,295		39,437,071
				75,691,983
Transportation | 2.1%
American Airlines Group, Inc.		406,870		17,230,944
Total Common Stocks (Identified cost $708,814,134)				763,401,966
Short-Term Investment | 7.8%
State Street Institutional Treasury Money Market Fund (Identified cost $64,490,571)		64,490,571		64,490,571
Total Investments | 99.7% (Identified cost $773,304,705) (b)			$	827,892,537
Cash and Other Assets in Excess of Liabilities | 0.3%				2,221,570
Net Assets | 100.0%			$	830,114,107

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

30  Annual Report

Description	Shares		Value
Lazard US Strategic Equity Portfolio
Common Stocks | 96.3%
Agriculture | 0.5%
Monsanto Co.		6,850	$	674,862
Alcohol & Tobacco | 1.2%
Molson Coors Brewing Co., Class B		16,100		1,512,112
Automotive | 1.1%
Delphi Automotive PLC		15,525		1,330,958
Banking | 5.2%
Bank of America Corp.		243,550		4,098,947
Wells Fargo & Co.		42,625		2,317,095
				6,416,042
Commercial Services | 4.5%
Copart, Inc. (a)		18,925		719,339
Corrections Corp. of America		81,335		2,154,564
Fidelity National Information Services, Inc.		20,550		1,245,330
Tyco International PLC		46,300		1,476,507
				5,595,740
Computer Software & Services | 1.3%
Microsoft Corp.		29,550		1,639,434
Energy Exploration & Production | 2.3%
Anadarko Petroleum Corp.		24,100		1,170,778
Apache Corp.		14,775		657,044
EOG Resources, Inc.		14,750		1,044,153
				2,871,975
Energy Integrated | 1.6%
Chevron Corp.		21,500		1,934,140
Energy Services | 1.8%
Dril-Quip, Inc. (a)		17,050		1,009,872
Schlumberger, Ltd.		16,900		1,178,775
				2,188,647
Financial Services | 7.6%
CBOE Holdings, Inc.		9,375		608,438
Citigroup, Inc.		28,450		1,472,288
Intercontinental Exchange, Inc.		11,075		2,838,079
OneMain Holdings, Inc. (a)		40,675		1,689,639
Visa, Inc., Class A		36,545		2,834,065
				9,442,509

Description	Shares		Value
Food & Beverages | 3.4%
Kellogg Co.		58,975	$	4,262,123
Forest & Paper Products | 1.1%
International Paper Co.		37,800		1,425,060
Health Services | 1.4%
Aetna, Inc.		15,650		1,692,078
Household & Personal Products | 3.5%
The Procter & Gamble Co.		54,865		4,356,830
Insurance | 4.1%
Aon PLC		23,550		2,171,545
The Hartford Financial Services Group, Inc.		46,100		2,003,506
Voya Financial, Inc.		23,225		857,235
				5,032,286
Internet Software & Services | 5.0%
Alphabet, Inc.:
Class A (a)		5,986		4,657,168
Class C (a)		1,965		1,491,199
				6,148,367
Leisure & Entertainment | 7.0%
Houghton Mifflin Harcourt Co. (a)		65,200		1,420,056
MSG Networks, Inc. Class A (a)		40,850		849,680
Norwegian Cruise Line Holdings, Ltd. (a)		43,825		2,568,145
The Madison Square Garden Co. Class A (a)		11,508		1,861,994
Viacom, Inc., Class B		48,375		1,991,115
				8,690,990
Manufacturing | 6.4%
Honeywell International, Inc.		36,618		3,792,526
Parker Hannifin Corp.		12,950		1,255,891
Rockwell Automation, Inc.		13,950		1,431,410
United Technologies Corp.		15,900		1,527,513
				8,007,340
Pharmaceutical & Biotechnology | 14.2%
Baxalta, Inc.		46,080		1,798,502
Eli Lilly & Co.		34,875		2,938,568
Mallinckrodt PLC (a)		28,675		2,140,015
Pfizer, Inc.		141,809		4,577,595
Zoetis, Inc.		129,994		6,229,312
				17,683,992
Real Estate Management & Development | 0.7%
Host Hotels & Resorts, Inc. REIT		53,200		816,088

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

Annual Report  31

Description	Shares		Value
Lazard US Strategic Equity Portfolio (concluded)
Retail | 6.2%
Advance Auto Parts, Inc.		26,388	$	3,971,658
CVS Health Corp.		20,630		2,016,995
Deckers Outdoor Corp. (a)		15,525		732,780
J.C. Penney Co., Inc. (a)		150,475		1,002,164
				7,723,597
Semiconductors & Components | 1.2%
NXP Semiconductors NV (a)		18,100		1,524,925
Technology | 1.5%
eBay, Inc. (a)		68,000		1,868,640
Technology Hardware | 11.3%
Apple, Inc.		51,607		5,432,153
Applied Materials, Inc.		73,850		1,378,779
Cisco Systems, Inc.		116,975		3,176,456
Hewlett Packard Enterprise Co.		55,925		850,060
HP, Inc.		56,025		663,336
QUALCOMM, Inc.		18,200		909,727
Teradyne, Inc.		75,800		1,566,786
				13,977,297

Description	Shares		Value
Transportation | 2.2%
American Airlines Group, Inc.		37,975	$	1,608,241
Union Pacific Corp.		15,025		1,174,955
				2,783,196
Total Common Stocks (Identified cost $117,549,066)				119,599,228
Total Investments | 96.3% (Identified cost $117,549,066) (b)			$	119,599,228
Cash and Other Assets in Excess of Liabilities | 3.7%				4,538,920
Net Assets | 100.0%			$	124,138,148

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

32  Annual Report

Description	Shares		Value
Lazard US Mid Cap Equity Portfolio
Common Stocks | 101.2%
Automotive | 5.1%
Delphi Automotive PLC		16,250	$	1,393,112
Banking | 8.1%
Signature Bank (a)		6,500		996,905
SVB Financial Group (a)		10,150		1,206,835
				2,203,740
Chemicals | 6.2%
Calgon Carbon Corp.		45,500		784,875
Eastman Chemical Co.		13,425		906,322
				1,691,197
Commercial Services | 13.0%
Fidelity National Information Services, Inc.		14,350		869,610
H&R Block, Inc.		46,925		1,563,072
United Rentals, Inc. (a)		15,525		1,126,183
				3,558,865
Computer Software & Services | 5.2%
Check Point Software Technologies, Ltd. (a)		17,350		1,411,943
Energy Exploration & Production | 4.1%
Memorial Resource Development Corp. (a)		68,900		1,112,735
Financial Services | 6.3%
OneMain Holdings, Inc. (a)		41,600		1,728,064
Food & Beverages | 5.3%
Kellogg Co.		20,100		1,452,627
Health Services | 3.8%
Quintiles Transnational Holdings, Inc. (a)		15,275		1,048,782
Insurance | 8.5%
Aon PLC		10,450		963,595
The Hartford Financial Services Group, Inc.		30,925		1,344,000
				2,307,595

Description	Shares		Value
Leisure & Entertainment | 7.9%
The Madison Square Garden Co. Class A (a)		3,900	$	631,020
Viacom, Inc., Class B		37,125		1,528,065
				2,159,085
Medical Products | 3.0%
Natus Medical, Inc. (a)		17,150		824,058
Pharmaceutical & Biotechnology | 7.5%
Mallinckrodt PLC (a)		10,875		811,601
Zoetis, Inc.		25,500		1,221,960
				2,033,561
Retail | 7.5%
Advance Auto Parts, Inc.		13,569		2,042,270
Technology Hardware | 6.4%
Applied Materials, Inc.		53,600		1,000,712
NCR Corp. (a)		30,400		743,584
				1,744,296
Transportation | 3.3%
American Airlines Group, Inc.		21,125		894,644
Total Common Stocks (Identified cost $27,634,097)				27,606,574
Short-Term Investment | 10.4%
State Street Institutional Treasury Money Market Fund (Identified cost $2,827,813)		2,827,813		2,827,813
Total Investments | 111.6% (Identified cost $30,461,910) (b)			$	30,434,387
Liabilities in Excess of Cash and Other Assets | (11.6)%				(3,156,336	)
Net Assets | 100.0%			$	27,278,051

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

Annual Report  33

Description	Shares		Value
Lazard US Small-Mid Cap Equity Portfolio
Common Stocks | 98.1%
Aerospace & Defense | 1.3%
B/E Aerospace, Inc.		61,760	$	2,616,771
Automotive | 2.5%
Gentherm, Inc. (a)		34,220		1,622,028
Modine Manufacturing Co. (a)		213,716		1,934,130
Tenneco, Inc. (a)		33,480		1,537,067
				5,093,225
Banking | 10.0%
East West Bancorp, Inc.		82,315		3,421,011
Great Western Bancorp, Inc.		109,015		3,163,615
Home Bancshares, Inc.		96,045		3,891,743
PacWest Bancorp		80,616		3,474,550
Signature Bank (a)		22,200		3,404,814
SVB Financial Group (a)		28,205		3,353,575
				20,709,308
Cable Television | 1.1%
Cable One, Inc.		5,450		2,363,447
Chemicals | 1.6%
Calgon Carbon Corp.		193,005		3,329,336
Commercial Services | 4.9%
EVERTEC, Inc.		174,945		2,928,579
MDC Partners, Inc., Class A		147,982		3,214,169
On Assignment, Inc. (a)		33,345		1,498,858
United Rentals, Inc. (a)		35,235		2,555,947
				10,197,553
Computer Software & Services | 1.6%
j2 Global, Inc.		40,665		3,347,543
Construction & Engineering | 1.7%
EMCOR Group, Inc.		30,025		1,442,401
Quanta Services, Inc. (a)		108,035		2,187,709
				3,630,110
Consumer Products | 1.2%
Fox Factory Holding Corp. (a)		156,598		2,588,565
Electric | 1.9%
CMS Energy Corp.		110,700		3,994,056
Energy Exploration & Production | 1.7%
Memorial Resource Development
Corp. (a)		214,440		3,463,206

Description	Shares		Value
Energy Services | 2.0%
Dril-Quip, Inc. (a)		36,340	$	2,152,418
Tesco Corp.		276,580		2,002,439
				4,154,857
Financial Services | 5.6%
Air Lease Corp.		72,970		2,443,036
CBOE Holdings, Inc.		44,740		2,903,626
Morningstar, Inc.		32,730		2,631,819
OneMain Holdings, Inc. (a)		89,340		3,711,183
				11,689,664
Forest & Paper Products | 0.8%
KapStone Paper and Packaging Corp.		77,255		1,745,191
Gas Utilities | 2.0%
New Jersey Resources Corp.		127,440		4,200,422
Health Services | 3.6%
Brookdale Senior Living, Inc. (a)		104,485		1,928,793
Quintiles Transnational Holdings, Inc. (a)		48,565		3,334,473
Team Health Holdings, Inc. (a)		53,265		2,337,801
				7,601,067
Housing | 2.5%
Continental Building Products, Inc. (a)		136,570		2,384,512
PGT, Inc. (a)		251,450		2,864,016
				5,248,528
Insurance | 6.8%
Arch Capital Group, Ltd. (a)		51,395		3,584,801
Argo Group International Holdings, Ltd.		59,725		3,573,944
Brown & Brown, Inc.		102,800		3,299,880
Reinsurance Group of America, Inc.		42,915		3,671,379
				14,130,004
Leisure & Entertainment | 2.5%
Bloomin’ Brands, Inc.		165,325		2,792,339
Scholastic Corp.		61,750		2,381,080
				5,173,419
Manufacturing | 9.7%
Altra Industrial Motion Corp.		100,329		2,516,252
FLIR Systems, Inc.		136,465		3,830,573
Generac Holdings, Inc. (a)		82,470		2,455,132
Littelfuse, Inc.		18,525		1,982,360
Pitney Bowes, Inc.		158,805		3,279,323
The Toro Co.		23,260		1,699,608
TriMas Corp. (a)		151,651		2,828,291
Woodward, Inc.		33,235		1,650,450
				20,241,989

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

34  Annual Report

Description	Shares		Value
Lazard US Small-Mid Cap Equity Portfolio (concluded)
Medical Products | 1.6%
Sirona Dental Systems, Inc. (a)		30,955	$	3,391,739
Pharmaceutical & Biotechnology | 4.5%
Cellectis SA ADR		70,155		2,176,910
Mallinckrodt PLC (a)		18,870		1,408,268
Phibro Animal Health Corp., Class A		84,380		2,542,369
United Therapeutics Corp. (a)		20,750		3,249,658
				9,377,205
Real Estate Management & Development | 8.6%
DCT Industrial Trust, Inc. REIT		89,553		3,346,596
Extra Space Storage, Inc. REIT		38,230		3,372,268
Jones Lang LaSalle, Inc.		19,800		3,165,228
Kilroy Realty Corp. REIT		48,885		3,093,443
LaSalle Hotel Properties REIT		65,180		1,639,929
Tanger Factory Outlet Centers, Inc. REIT		97,365		3,183,835
				17,801,299
Retail | 6.1%
Advance Auto Parts, Inc.		15,115		2,274,959
Chico’s FAS, Inc.		220,520		2,352,948
Mattress Firm Holding Corp. (a)		52,025		2,321,876
Sally Beauty Holdings, Inc. (a)		110,765		3,089,236
Steven Madden, Ltd. (a)		85,330		2,578,672
				12,617,691
Semiconductors & Components | 3.7%
M/A-COM Technology Solutions Holdings, Inc. (a)		75,810		3,099,871
Microsemi Corp. (a)		59,870		1,951,163
Universal Display Corp. (a)		46,855		2,550,786
				7,601,820
Technology | 4.2%
BroadSoft, Inc. (a)		88,585		3,132,366
Pegasystems, Inc.		81,985		2,254,587
Vantiv, Inc., Class A (a)		68,840		3,264,393
				8,651,346

Description	Shares		Value
Technology Hardware | 1.6%
NCR Corp. (a)		135,350	$	3,310,661
Transportation | 2.8%
Alaska Air Group, Inc.		41,890		3,372,564
Echo Global Logistics, Inc. (a)		123,648		2,521,183
				5,893,747
Total Common Stocks (Identified cost $202,726,201)				204,163,769
Description	Principal Amount (000)			Value
Repurchase Agreement | 1.4%
State Street Bank and Trust Co., 0.00%, 01/04/16 (Dated 12/31/15, collateralized by $2,720,000 United States Treasury Note, 3.125%, 05/15/21, with a value of $2,903,717) Proceeds of $2,844,000 (Identified cost $2,844,000)		$2,844	$	2,844,000
Total Investments | 99.5% (Identified cost $205,570,201) (b)			$	207,007,769
Cash and Other Assets in Excess of Liabilities | 0.5%				1,004,045
Net Assets | 100.0%			$	208,011,814

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

Annual Report  35

Description	Shares		Value
Lazard US Small Cap Equity Growth Portfolio
Common Stocks | 99.0%
Alcohol & Tobacco | 0.9%
The Boston Beer Co., Inc., Class A (a)		585	$	118,117
Banking | 13.3%
Ameris Bancorp		6,710		228,073
Bank of the Ozarks, Inc.		3,820		188,937
Central Pacific Financial Corp.		12,740		280,535
Hanmi Financial Corp.		9,400		222,968
Opus Bank		5,315		196,496
Pinnacle Financial Partners, Inc.		3,845		197,479
TFS Financial Corp.		9,600		180,768
Western Alliance Bancorp (a)		7,965		285,625
				1,780,881
Chemicals | 1.6%
Headwaters, Inc. (a)		12,675		213,827
Commercial Services | 19.3%
AMN Healthcare Services, Inc. (a)		5,870		182,263
Beacon Roofing Supply, Inc. (a)		10,345		426,007
Cardtronics, Inc. (a)		3,735		125,683
Huron Consulting Group, Inc. (a)		3,635		215,919
Kforce, Inc.		6,340		160,275
Multi-Color Corp.		2,235		133,675
On Assignment, Inc. (a)		9,545		429,048
PRA Health Sciences, Inc. (a)		6,700		303,309
Press Ganey Holdings, Inc.		10,465		330,171
Tyler Technologies, Inc. (a)		1,596		278,215
				2,584,565
Computer Software & Services | 3.9%
Callidus Software, Inc. (a)		9,030		167,687
Manhattan Associates, Inc. (a)		5,305		351,032
				518,719
Energy Exploration & Production | 3.1%
Diamondback Energy, Inc. (a)		2,315		154,873
EP Energy Corp., Class A (a)		19,110		83,702
Laredo Petroleum, Inc. (a)		6,900		55,131
Synergy Resources Corp. (a)		13,830		117,832
				411,538
Food & Beverages | 3.5%
B&G Foods, Inc.		7,970		279,109
TreeHouse Foods, Inc. (a)		2,515		197,327
				476,436

Description	Shares		Value
Forest & Paper Products | 1.3%
Graphic Packaging Holding Co.		13,630	$	174,873
Health Services | 12.6%
AmSurg Corp. (a)		5,640		428,640
ICON PLC (a)		4,755		369,464
LifePoint Health, Inc. (a)		2,915		213,961
PharMerica Corp. (a)		8,600		301,000
Premier, Inc., Class A (a)		6,145		216,734
VCA, Inc. (a)		2,890		158,950
				1,688,749
Leisure & Entertainment | 10.6%
Buffalo Wild Wings, Inc. (a)		1,400		223,510
Cinemark Holdings, Inc.		5,595		187,041
Cracker Barrel Old Country Store, Inc.		830		105,269
DineEquity, Inc.		2,275		192,624
Gray Television, Inc. (a)		7,245		118,094
IMAX Corp. (a)		6,690		237,763
Penn National Gaming, Inc. (a)		13,205		211,544
Red Robin Gourmet Burgers, Inc. (a)		2,475		152,806
				1,428,651
Manufacturing | 2.0%
HEICO Corp.		4,890		265,820
Medical Products | 4.9%
ABIOMED, Inc. (a)		1,120		101,114
Globus Medical, Inc., Class A (a)		7,210		200,582
STERIS PLC		4,800		361,632
				663,328
Pharmaceutical & Biotechnology | 6.9%
Alder Biopharmaceuticals, Inc. (a)		3,170		104,705
Anacor Pharmaceuticals, Inc. (a)		1,735		196,003
Charles River Laboratories International, Inc. (a)		2,750		221,072
DepoMed, Inc. (a)		9,105		165,074
Neurocrine Biosciences, Inc. (a)		2,505		141,708
Ultragenyx Pharmaceutical, Inc. (a)		840		94,231
				922,793
Real Estate Management & Development | 1.1%
Summit Hotel Properties, Inc. REIT		12,005		143,460
Retail | 3.9%
Burlington Stores, Inc. (a)		5,220		223,938
Lithia Motors, Inc., Class A		2,850		304,010
				527,948

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

36  Annual Report

Description	Shares		Value
Lazard US Small Cap Equity Growth Portfolio (concluded)
Semiconductors & Components | 2.4%
Cypress Semiconductor Corp.		12,320	$	120,859
Monolithic Power Systems, Inc.		3,210		204,509
				325,368
Technology | 3.2%
BroadSoft, Inc. (a)		2,455		86,809
Imperva, Inc. (a)		1,590		100,663
Proofpoint, Inc. (a)		3,755		244,112
				431,584
Technology Hardware | 2.2%
Electronics For Imaging, Inc. (a)		6,240		291,658
Transportation | 2.3%
JetBlue Airways Corp. (a)		6,145		139,184
Virgin America, Inc. (a)		4,755		171,228
				310,412
Total Common Stocks (Identified cost $12,943,761)				13,278,727

Description	Shares		Value
Short-Term Investment | 1.1%
State Street Institutional Treasury Money Market Fund (Identified cost $142,061)		142,061	$	142,061
Total Investments | 100.1% (Identified cost $13,085,822) (b)			$	13,420,788
Liabilities in Excess of Cash and Other Assets | (0.1)%				(11,368	)
Net Assets | 100.0%			$	13,409,420

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

Annual Report  37

Description	Shares		Value
Lazard International Equity Portfolio
Common Stocks | 94.0%
Australia | 3.5%
Ansell, Ltd.		420,913	$	6,530,414
Caltex Australia, Ltd.		558,448		15,205,258
James Hardie Industries PLC		667,088		8,415,348
				30,151,020
Austria | 0.6%
UNIQA Insurance Group AG		629,859		5,112,271
Belgium | 4.1%
Anheuser-Busch InBev SA/NV		214,070		26,443,001
KBC Groep NV		144,908		9,060,484
				35,503,485
Brazil | 0.6%
BB Seguridade Participacoes SA		921,200		5,633,510
Canada | 2.7%
Encana Corp.		1,000,540		5,083,324
MacDonald Dettwiler & Associates, Ltd.		150,300		9,043,852
National Bank of Canada		328,400		9,566,961
				23,694,137
Denmark | 1.1%
Carlsberg A/S, Class B		104,962		9,280,212
Finland | 2.0%
Sampo Oyj, A Shares		340,413		17,254,222
France | 9.0%
BNP Paribas SA		224,884		12,729,334
Cap Gemini SA		187,400		17,339,765
Iliad SA		32,951		7,861,458
Total SA		180,782		8,051,278
Valeo SA		111,522		17,217,304
Vinci SA		223,381		14,325,226
				77,524,365
Germany | 3.4%
Bayer AG		182,917		22,949,003
RTL Group SA		74,162		6,194,312
				29,143,315
Ireland | 1.0%
Ryanair Holdings PLC Sponsored ADR		100,963		8,729,261

Description	Shares		Value
Israel | 2.5%
Teva Pharmaceutical Industries, Ltd. Sponsored ADR		324,920	$	21,327,749
Italy | 2.1%
Atlantia SpA		319,483		8,461,933
Azimut Holding SpA		378,849		9,352,721
				17,814,654
Japan | 19.2%
ABC-Mart, Inc.		147,800		8,107,461
Daiwa House Industry Co., Ltd.		966,400		27,707,264
Don Quijote Holdings Co., Ltd.		507,500		17,829,871
Isuzu Motors, Ltd.		679,000		7,306,951
Japan Tobacco, Inc.		330,100		12,120,328
KDDI Corp.		726,200		18,799,116
Makita Corp.		137,100		7,879,042
Seven & I Holdings Co., Ltd.		349,000		15,912,803
SoftBank Group Corp.		239,800		12,084,565
Sony Corp.		496,700		12,168,349
Sumitomo Mitsui Financial Group, Inc.		496,000		18,710,258
United Arrows, Ltd.		184,000		7,930,539
				166,556,547
Netherlands | 2.9%
Koninklijke KPN NV		2,273,412		8,584,474
Wolters Kluwer NV		485,304		16,260,466
				24,844,940
Norway | 1.4%
Telenor ASA		735,133		12,229,850
Philippines | 0.8%
Alliance Global Group, Inc.		19,537,300		6,669,902
Spain | 1.0%
Red Electrica Corporacion SA		102,737		8,563,158
Sweden | 3.9%
Assa Abloy AB, Class B		852,773		17,861,059
Swedbank AB, A Shares		729,353		16,018,204
				33,879,263
Switzerland | 5.3%
Credit Suisse Group AG		450,916		9,745,801
Novartis AG		422,655		36,127,110
				45,872,911
Taiwan | 1.7%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		655,200		14,905,800

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

38  Annual Report

Description	Shares		Value
Lazard International Equity Portfolio (concluded)
Thailand | 0.5%
Krung Thai Bank Public Co. Ltd. (c)		10,064,200	$	4,670,617
Turkey | 1.0%
Turkcell Iletisim Hizmetleri AS		2,681,013		9,093,538
United Kingdom | 23.7%
Aon PLC		134,585		12,410,083
BG Group PLC		623,570		9,042,582
BHP Billiton PLC		463,085		5,199,117
British American Tobacco PLC		405,608		22,527,082
Direct Line Insurance Group PLC		1,282,201		7,658,966
Informa PLC		1,160,920		10,483,229
Lloyds Banking Group PLC		18,767,065		20,199,355
Provident Financial PLC		232,348		11,507,849
Prudential PLC		1,062,145		23,779,203
RELX PLC		853,544		14,964,713
Rexam PLC		1,554,241		13,787,049
Royal Dutch Shell PLC, A Shares		543,110		12,201,784
Shire PLC		259,559		17,788,571
Unilever PLC		262,802		11,252,596
Wolseley PLC		229,589		12,480,195
				205,282,374
Total Common Stocks (Identified cost $822,357,791)				813,737,101

	Principal
	Amount
Description	(000)		Value
Repurchase Agreement | 5.7%
State Street Bank and Trust Co., 0.00%, 01/04/16 (Dated 12/31/15, collateralized by $47,600,000 United States Treasury Note, 3.125%, 05/15/21, with a value of $50,815,047) Proceeds of $49,814,000 (Identified cost $49,814,000)		$49,814	$	49,814,000
Total Investments | 99.7% (Identified cost $872,171,791) (b)			$	863,551,101
Cash and Other Assets in Excess of Liabilities | 0.3%				2,328,817
Net Assets | 100.0%			$	865,879,918

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

Annual Report  39

Description	Shares		Value
Lazard International Equity Select Portfolio
Common Stocks | 96.2%
Australia | 1.1%
BHP Billiton, Ltd.		17,313	$	224,901
Belgium | 4.0%
Anheuser-Busch InBev SA/NV		5,356		661,600
KBC Groep NV		2,875		179,762
				841,362
Bermuda | 0.8%
Signet Jewelers, Ltd.		1,383		165,609
Brazil | 3.0%
Ambev SA		34,800		155,826
BB Seguridade Participacoes SA		39,600		242,170
Cia de Saneamento Basico do Estado de Sao Paulo		27,900		129,438
Estacio Participacoes SA		27,000		94,478
				621,912
Canada | 0.3%
Encana Corp.		12,500		63,507
China | 2.2%
Autohome, Inc. ADR (a)		2,080		72,634
Baidu, Inc. Sponsored ADR (a)		2,035		384,696
				457,330
Denmark | 1.7%
Novo Nordisk A/S, Class B		6,148		353,389
Finland | 1.7%
Sampo Oyj, A Shares		6,842		346,795
France | 3.5%
Valeo SA		1,927		297,499
Vinci SA		3,808		244,204
Vivendi SA		8,674		186,780
				728,483
Germany | 3.6%
Bayer AG		3,733		468,347
Continental AG		779		189,076
GEA Group AG		2,656		107,027
				764,450
India | 1.5%
HCL Technologies, Ltd.		24,443		316,312

Description	Shares		Value
Indonesia | 1.5%
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		6,934	$	307,870
Ireland | 0.9%
Ryanair Holdings PLC Sponsored ADR		2,167		187,359
Israel | 2.9%
Check Point Software Technologies, Ltd. (a)		2,925		238,037
Teva Pharmaceutical Industries, Ltd. Sponsored ADR		5,750		377,430
				615,467
Italy | 0.8%
Banca Mediolanum SpA		20,790		165,159
Japan | 15.3%
Daiwa House Industry Co., Ltd.		20,600		590,614
Japan Tobacco, Inc.		9,500		348,813
KDDI Corp.		13,400		346,885
Makita Corp.		5,900		339,069
Ryohin Keikaku Co., Ltd.		1,000		202,732
Seven & I Holdings Co., Ltd.		6,717		306,264
SoftBank Group Corp.		7,100		357,800
Sony Corp.		8,700		213,136
Sumitomo Mitsui Financial Group, Inc.		9,676		365,001
Sumitomo Mitsui Trust Holdings, Inc.		33,000		124,586
				3,194,900
Netherlands | 1.4%
Wolters Kluwer NV		8,490		284,464
Norway | 0.9%
Telenor ASA		11,876		197,572
Philippines | 0.8%
Alliance Global Group, Inc.		506,700		172,984
Russia | 0.3%
Mobile TeleSystems PJSC Sponsored ADR		12,011		74,228
South Africa | 3.2%
Mediclinic International, Ltd.		31,514		242,447
Mr. Price Group, Ltd.		9,570		123,395
Nampak, Ltd.		67,833		108,760
Sanlam, Ltd.		51,549		199,991
				674,593

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

40  Annual Report

Description	Shares		Value
Lazard International Equity Select Portfolio (concluded)
South Korea | 1.3%
Samsung Electronics Co., Ltd.		259	$	276,568
Spain | 1.3%
Red Electrica Corporacion SA		3,295		274,639
Sweden | 3.9%
Assa Abloy AB, Class B		21,369		447,567
Swedbank AB, A Shares		16,441		361,081
				808,648
Switzerland | 6.9%
Actelion, Ltd.		1,950		268,317
Cie Financiere Richemont SA		2,686		192,944
Credit Suisse Group AG		8,078		174,593
Novartis AG		9,438		806,728
				1,442,582
Taiwan | 3.2%
Taiwan Semiconductor Manufacturing Co., Ltd.		156,341		674,623
Thailand | 0.6%
Kasikornbank Public Co. Ltd.		30,200		124,853
Turkey | 2.1%
KOC Holding AS		54,060		202,578
Turkcell Iletisim Hizmetleri AS		72,060		244,415
				446,993
United Kingdom | 25.5%
Aon PLC		3,200		295,072
Ashtead Group PLC		15,357		252,693

Description	Shares		Value
Associated British Foods PLC		4,870	$	239,717
BG Group PLC		13,485		195,550
British American Tobacco PLC		9,474		526,177
Compass Group PLC		19,575		338,800
Informa PLC		31,523		284,656
Lloyds Banking Group PLC		359,513		386,951
London Stock Exchange Group PLC		5,985		241,862
Prudential PLC		25,995		581,974
RELX PLC		14,125		247,646
Rexam PLC		32,360		287,053
Royal Dutch Shell PLC, A Shares		8,214		188,173
Shire PLC		5,416		371,179
Unilever PLC		8,157		349,264
Wolseley PLC		5,666		307,997
Worldpay Group PLC		53,970		244,711
				5,339,475
Total Common Stocks (Identified cost $21,578,920)				20,147,027
Short-Term Investment | 3.6%
State Street Institutional Treasury Money Market Fund (Identified cost $744,738)		744,738		744,738
Total Investments | 99.8% (Identified cost $22,323,658) (b)			$	20,891,765
Cash and Other Assets in Excess of Liabilities | 0.2%				49,298
Net Assets | 100.0%			$	20,941,063

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

Annual Report  41

Description	Shares		Value
Lazard International Equity Concentrated Portfolio
Common Stocks | 91.9%
Australia | 6.2%
Asaleo Care, Ltd.		413,776	$	478,566
Spotless Group Holdings, Ltd.		472,361		368,993
				847,559
Belgium | 5.3%
Anheuser-Busch InBev SA/NV		5,941		733,862
Brazil | 2.2%
BB Seguridade Participacoes SA		48,300		295,374
Canada | 3.2%
MacDonald Dettwiler & Associates, Ltd.		7,320		440,459
China | 2.7%
Baidu, Inc. Sponsored ADR (a)		1,972		372,787
France | 9.6%
Cap Gemini SA		4,724		437,103
Valeo SA		4,072		628,655
Vivendi SA		12,309		265,054
				1,330,812
Japan | 18.8%
ABC-Mart, Inc.		5,600		307,184
Daiwa House Industry Co., Ltd.		22,600		647,955
Isuzu Motors, Ltd.		31,800		342,211
KDDI Corp.		17,200		445,256
SoftBank Group Corp.		9,800		493,865
Sony Corp.		14,400		352,777
				2,589,248
Netherlands | 4.8%
Wolters Kluwer NV		19,838		664,687
South Africa | 2.2%
Sanlam, Ltd.		78,124		303,092

Description	Shares		Value
Sweden | 1.9%
Swedbank AB, A Shares		12,142	$	266,665
Switzerland | 10.4%
Actelion, Ltd.		4,382		602,956
Credit Suisse Group AG		8,130		175,716
Novartis AG		7,670		655,606
				1,434,278
Taiwan | 4.9%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		29,855		679,201
United Kingdom | 19.7%
Aon PLC		4,696		433,018
British American Tobacco PLC		8,463		470,027
Lloyds Banking Group PLC		609,738		656,273
Provident Financial PLC		5,186		256,855
Prudential PLC		26,588		595,250
The Weir Group PLC		21,167		311,346
				2,722,769
Total Common Stocks (Identified cost $14,010,230)				12,680,793
Short-Term Investment | 3.2%
State Street Institutional Treasury Money Market Fund (Identified cost $445,096)		445,096		445,096
Total Investments | 95.1% (Identified cost $14,455,326) (b)			$	13,125,889
Cash and Other Assets in Excess of Liabilities | 4.9%				681,652
Net Assets | 100.0%			$	13,807,541

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

42  Annual Report

Description	Shares		Value
Lazard International Strategic Equity Portfolio
Common Stocks | 97.9%
Australia | 6.0%
Amcor, Ltd.		14,289,164	$	139,019,976
Ansell, Ltd.		2,171,779		33,694,887
Caltex Australia, Ltd.		5,018,906		136,653,295
carsales.com, Ltd.		2,129,953		18,064,349
James Hardie Industries PLC		6,538,372		82,481,888
				409,914,395
Austria | 0.5%
UNIQA Insurance Group AG		4,200,016		34,089,565
Belgium | 1.9%
Anheuser-Busch InBev SA/NV		1,039,337		128,384,125
Bermuda | 1.1%
Signet Jewelers, Ltd.		625,585		74,911,339
Brazil | 1.2%
Cia de Saneamento Basico do Estado de Sao Paulo		9,928,300		46,060,918
Estacio Participacoes SA		9,637,400		33,723,168
LPS Brasil Consultoria de Imoveis SA		3,661,800		2,071,177
				81,855,263
Canada | 1.0%
Encana Corp.		7,768,915		39,470,602
Home Capital Group, Inc.		1,528,384		29,734,840
				69,205,442
Denmark | 3.3%
Carlsberg A/S, Class B		1,658,446		146,631,455
Topdanmark A/S (a)		2,626,607		74,725,012
				221,356,467
Finland | 4.0%
Sampo Oyj, A Shares		5,339,402		270,633,690
France | 5.6%
Iliad SA		341,418		81,455,591
Societe Television Francaise 1		4,615,304		51,325,847
Valeo SA		973,079		150,228,628
Vivendi SA		4,396,638		94,674,300
				377,684,366

Description	Shares		Value
Germany | 5.0%
Bayer AG		1,046,201	$	131,257,731
Fresenius SE & Co. KGaA		936,276		66,952,019
Symrise AG		2,078,338		137,869,547
				336,079,297
Indonesia | 0.3%
PT Media Nusantara Citra Tbk		130,470,800		17,311,033
Ireland | 2.0%
Kerry Group PLC, Class A		1,670,884		138,273,691
Israel | 3.8%
Check Point Software Technologies, Ltd. (a)		1,234,500		100,463,610
Teva Pharmaceutical Industries, Ltd. Sponsored ADR		2,448,335		160,708,709
				261,172,319
Italy | 1.0%
Azimut Holding SpA		2,753,438		67,974,674
Japan | 15.6%
AEON Financial Service Co., Ltd.		6,933,400		155,113,564
Asics Corp.		4,984,450		103,161,851
Daiwa House Industry Co., Ltd.		6,664,500		191,075,184
Don Quijote Holdings Co., Ltd.		5,085,100		178,653,547
Japan Tobacco, Inc.		2,633,300		96,687,248
KDDI Corp.		5,111,200		132,313,469
Makita Corp.		1,420,500		81,635,150
SoftBank Group Corp.		2,412,600		121,581,405
				1,060,221,418
Netherlands | 1.1%
Wolters Kluwer NV		2,210,225		74,055,209
New Zealand | 0.8%
Z Energy, Ltd.		12,037,213		55,516,613
Norway | 1.7%
Telenor ASA		6,783,850		112,857,771
Philippines | 2.2%
Alliance Global Group, Inc.		182,180,600		62,195,222
GT Capital Holdings, Inc.		3,145,695		88,172,349
				150,367,571

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

Annual Report  43

Description	Shares		Value
Lazard International Strategic Equity Portfolio (concluded)
South Africa | 1.9%
Mediclinic International, Ltd.		9,571,721	$	73,638,213
Nampak, Ltd.		34,236,394		54,892,854
				128,531,067
Sweden | 4.0%
Assa Abloy AB, Class B		7,578,735		158,734,193
Swedbank AB, A Shares		5,123,480		112,522,944
				271,257,137
Switzerland | 8.8%
Actelion, Ltd.		938,273		129,104,870
Cie Financiere Richemont SA		887,922		63,782,427
Credit Suisse Group AG		7,620,932		164,713,792
GAM Holding AG		3,573,376		59,333,625
Novartis AG		2,070,329		176,964,672
				593,899,386
Taiwan | 1.2%
Taiwan Semiconductor Manufacturing Co., Ltd.		18,649,000		80,471,857
Thailand | 0.6%
Kasikornbank Public Co. Ltd.		10,112,050		41,805,379
Turkey | 0.8%
Turkcell Iletisim Hizmetleri AS		15,841,928		53,733,116

Description	Shares		Value
United Kingdom | 22.5%
Aon PLC		1,467,060	$	135,277,603
Associated British Foods PLC		1,462,089		71,968,665
British American Tobacco PLC		3,844,854		213,539,528
Compass Group PLC		6,446,479		111,574,377
Informa PLC		18,860,859		170,315,530
Lloyds Banking Group PLC		149,931,214		161,373,865
Merlin Entertainments PLC		10,094,500		67,647,647
Prudential PLC		7,765,402		173,851,092
Rexam PLC		3,744,911		33,219,604
SABMiller PLC		1,743,197		104,416,874
Shire PLC		2,361,397		161,835,570
UBM PLC		724,191		5,615,766
Worldpay Group PLC		25,158,862		114,075,385
				1,524,711,506
Total Common Stocks (Identified cost $6,615,287,456)				6,636,273,696
Short-Term Investment | 1.8%
State Street Institutional Treasury Money Market Fund (Identified cost $121,521,423)		121,521,423		121,521,423
Total Investments | 99.7% (Identified cost $6,736,808,879) (b)			$	6,757,795,119
Cash and Other Assets in Excess of Liabilities | 0.3%				21,423,400
Net Assets | 100.0%			$	6,779,218,519

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

44  Annual Report

Description	Shares		Value
Lazard International Equity Advantage Portfolio
Common Stocks | 100.0%
Australia | 8.4%
Amcor, Ltd.		1,214	$	11,811
Aristocrat Leisure, Ltd.		825		6,097
Blackmores, Ltd.		85		13,413
CSL, Ltd.		629		47,957
Evolution Mining, Ltd.		9,056		9,200
Independence Group NL		1,809		3,300
Magellan Financial Group, Ltd.		705		13,830
Platinum Asset Management, Ltd.		873		5,098
Qantas Airways, Ltd.		4,866		14,430
Sandfire Resources NL		923		3,728
Telstra Corp., Ltd.		5,593		22,694
The GPT Group REIT		1,112		3,844
TPG Telecom, Ltd.		489		3,496
				158,898
Austria | 1.1%
Erste Group Bank AG (a)		572		17,877
Voestalpine AG		82		2,509
				20,386
Belgium | 0.2%
Telenet Group Holding NV (a)		81		4,365
China | 0.4%
Yangzijiang Shipbuilding Holdings, Ltd.		9,100		7,026
Denmark | 3.1%
Novo Nordisk A/S, Class B		1,024		58,860
Finland | 1.7%
Kone Oyj, Class B		769		32,333
France | 9.5%
Airbus Group SE		643		43,173
AXA SA		898		24,550
BNP Paribas SA		492		27,849
Credit Agricole SA		469		5,525
Elis SA		192		3,177
L’Oreal SA		103		17,329
Orpea		55		4,395
Sanofi		33		2,816
Societe Generale SA		665		30,675
Total SA		292		13,005

Description	Shares		Value
Valeo SA		9	$	1,389
Veolia Environnement SA		200		4,741
				178,624
Germany | 8.4%
Aurubis AG		60		3,060
BASF SE		332		25,381
Bayer AG		28		3,513
Continental AG		60		14,563
Daimler AG		141		11,769
Deutsche Bank AG		278		6,823
Deutsche Lufthansa AG (a)		270		4,264
Deutsche Post AG		108		3,041
Hannover Rueck SE		35		4,012
HUGO BOSS AG		61		5,080
Muenchener Rueckversicherungs AG		145		29,040
ProSiebenSat.1 Media SE		475		24,027
SAP SE		106		8,443
Stroeer SE		55		3,448
Suedzucker AG		595		11,775
				158,239
Hong Kong | 2.8%
BOC Hong Kong Holdings, Ltd.		1,500		4,542
PCCW, Ltd.		7,000		4,101
The Link		1,500		8,977
The Wharf Holdings, Ltd.		5,000		27,695
Wheelock & Co., Ltd.		2,000		8,430
				53,745
Ireland | 1.4%
ICON PLC (a)		113		8,780
Ryanair Holdings PLC Sponsored ADR		167		14,439
Smurfit Kappa Group PLC		103		2,636
				25,855
Israel | 0.5%
Teva Pharmaceutical Industries, Ltd.		148		9,714
Italy | 1.4%
Enel SpA		2,249		9,407
Eni SpA		800		11,852
Saras SpA (a)		2,265		4,339
				25,598
Japan | 23.2%
Alfresa Holdings Corp.		400		7,913
Alps Electric Co., Ltd.		200		5,409
Chubu Electric Power Co., Inc.		700		9,575
Daiwa House Industry Co., Ltd.		600		17,202
Foster Electric Co., Ltd.		200		4,347

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

Annual Report  45

Description	Shares		Value
Lazard International Equity Advantage Portfolio (continued)
Fuji Heavy Industries, Ltd.		200	$	8,222
Fujitsu, Ltd.		1,000		4,977
ITOCHU Corp.		200		2,358
Japan Airlines Co., Ltd.		300		10,744
JTEKT Corp.		500		8,183
Kakaku.com, Inc.		200		3,948
Kaken Pharmaceutical Co., Ltd.		100		6,817
Kanamoto Co., Ltd.		300		7,603
Medipal Holdings Corp.		600		10,217
Minebea Co., Ltd.		2,000		17,174
Mitsubishi Electric Corp.		3,000		31,454
Mitsubishi Materials Corp.		1,000		3,145
Mitsubishi UFJ Financial Group, Inc.		3,900		24,137
Mitsui Chemicals, Inc.		3,000		13,306
Murata Manufacturing Co., Ltd.		200		28,705
Nippon Telegraph & Telephone Corp.		900		35,732
Nissan Motor Co., Ltd.		3,600		37,702
Nomura Holdings, Inc.		900		5,002
ORIX Corp.		200		2,806
Sanden Holdings Corp.		1,000		3,177
Sompo Japan Nipponkoa Holdings, Inc.		900		29,438
Sumitomo Chemical Co., Ltd.		4,000		22,957
Sumitomo Mitsui Financial Group, Inc.		1,000		37,722
Sumitomo Rubber Industries, Ltd.		1,300		16,899
Suzuken Co., Ltd.		200		7,623
Takeuchi Manufacturing Co., Ltd.		300		6,078
The San-In Godo Bank, Ltd.		1,000		8,111
				438,683
Netherlands | 3.6%
Aegon NV		3,189		18,000
AVG Technologies NV (a)		138		2,767
Euronext NV		157		8,029
GrandVision NV		142		4,261
Heineken Holding NV		55		4,216
Koninklijke Ahold NV		843		17,799
NN Group NV		369		12,976
				68,048
Norway | 2.0%
Bakkafrost P/F		203		5,981
DNB ASA		439		5,403
Statoil ASA		1,926		26,937
				38,321

Description	Shares		Value
Portugal | 0.5%
Altri SGPS SA		705	$	3,653
Jeronimo Martins SGPS SA		514		6,678
				10,331
Singapore | 0.2%
DBS Group Holdings, Ltd.		400		4,683
South Africa | 0.2%
Mondi PLC		193		3,764
Spain | 2.5%
Banco Bilbao Vizcaya Argentaria SA		1,332		9,714
Banco de Sabadell SA		467		827
Banco Santander SA		2,328		11,429
CaixaBank SA		903		3,141
Endesa SA		170		3,406
Iberdrola SA		1,857		13,165
Red Electrica Corporacion SA		67		5,585
				47,267
Sweden | 1.6%
Atlas Copco AB Class A		523		12,741
Boliden AB		275		4,560
Hennes & Mauritz AB, B Shares		48		1,709
Svenska Cellulosa AB SCA, Class B		386		11,210
				30,220
Switzerland | 8.1%
Actelion, Ltd.		82		11,283
Adecco SA		51		3,502
Chocoladefabriken Lindt & Spruengli AG		1		6,229
Nestle SA		652		48,329
Roche Holding AG		234		64,488
Swiss Life Holding AG		27		7,246
UBS Group AG		602		11,585
				152,662
United Kingdom | 19.2%
Admiral Group PLC		452		10,994
Auto Trader Group PLC		2,694		17,605
Barclays PLC		2,362		7,645
Bellway PLC		587		24,477
British American Tobacco PLC		739		41,043
BT Group PLC		5,264		36,381
Centrica PLC		4,951		15,903
Compass Group PLC		2,138		37,004
easyJet PLC		285		7,295
Howden Joinery Group PLC		676		5,245

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

46  Annual Report

Description	Shares		Value
Lazard International Equity Advantage Portfolio (concluded)
Imperial Tobacco Group PLC		357	$	18,777
International Consolidated Airlines Group SA		1,638		14,619
ITV PLC		2,192		8,932
J Sainsbury PLC		2,122		8,086
Micro Focus International PLC		198		4,648
Moneysupermarket.com Group PLC		719		3,884
Next PLC		95		10,184
Provident Financial PLC		76		3,764
RELX NV		233		3,918
Rentokil Initial PLC		3,570		8,370
Royal Dutch Shell PLC, A Shares		905		20,332
Shire PLC		324		22,205
SSE PLC		507		11,353
Taylor Wimpey PLC		1,880		5,614
Unilever NV		340		14,731
				363,009
Total Common Stocks (Identified cost $1,966,231)				1,890,631

Description	Shares		Value
Short-Term Investment | 2.6%
State Street Institutional Treasury Money Market Fund (Identified cost $48,965)		48,965	$	48,965
Total Investments | 102.6% (Identified cost $2,015,196) (b)			$	1,939,596
Liabilities in Excess of Cash and Other Assets | (2.6)%				(49,811	)
Net Assets | 100.0%			$	1,889,785

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

Annual Report  47

Description	Shares		Value
Lazard International Small Cap Equity Portfolio
Common Stocks | 95.7%
Australia | 4.9%
Ainsworth Game Technology, Ltd.		490,989	$	816,912
Asaleo Care, Ltd.		1,088,040		1,258,408
carsales.com, Ltd.		61,249		519,459
Macquarie Atlas Roads Group		358,290		1,054,443
Pact Group Holdings, Ltd.		298,561		1,085,466
Spotless Group Holdings, Ltd.		752,565		587,879
				5,322,567
Austria | 0.8%
UNIQA Insurance Group AG		102,578		832,578
Belgium | 1.4%
Kinepolis Group NV		33,612		1,511,067
Canada | 6.7%
AirBoss of America Corp.		91,200		1,151,452
Alaris Royalty Corp.		35,200		597,817
Altus Group, Ltd.		105,565		1,479,299
Genworth MI Canada, Inc.		39,412		757,649
Intertape Polymer Group, Inc.		88,200		1,191,341
MacDonald Dettwiler & Associates, Ltd.		14,700		884,528
Sandvine Corp. (a)		447,977		1,146,086
				7,208,172
France | 2.2%
Ingenico Group SA		9,942		1,256,671
Plastic Omnium SA		36,783		1,165,306
				2,421,977
Germany | 5.4%
AURELIUS SE & Co. KGaA		25,648		1,336,434
CompuGroup Medical AG		44,919		1,647,554
CTS Eventim AG & Co. KGaA		38,795		1,547,668
Norma Group SE		22,622		1,250,327
				5,781,983
Hong Kong | 2.3%
EVA Precision Industrial Holdings, Ltd.		3,896,000		688,708
Pacific Textiles Holdings, Ltd.		591,000		912,099
Samsonite International SA		293,400		882,117
				2,482,924
Ireland | 4.6%
Cairn Homes PLC		925,275		1,201,461
Greencore Group PLC		313,051		1,631,791
Origin Enterprises PLC		139,307		1,143,185
Permanent TSB Group Holdings PLC (a)		189,586		946,741
				4,923,178

Description	Shares		Value
Italy | 3.5%
Azimut Holding SpA		51,193	$	1,263,812
Cerved Information Solutions SpA		141,330		1,177,921
EI Towers SpA		19,845		1,278,774
				3,720,507
Japan | 28.9%
ABC-Mart, Inc.		18,200		998,348
Ai Holdings Corp.		67,360		1,707,037
Ain Holdings, Inc.		28,400		1,352,902
Ariake Japan Co., Ltd.		32,000		1,770,336
Asics Corp.		37,000		765,779
Daikyonishikawa Corp.		80,000		1,481,410
Doshisha Co., Ltd.		62,200		1,251,671
Financial Products Group Co., Ltd.		156,937		1,222,821
Foster Electric Co., Ltd.		48,500		1,054,132
Gulliver International Co., Ltd.		142,600		1,414,679
Iriso Electronics Co., Ltd.		21,691		1,216,565
JAFCO Co., Ltd.		27,800		1,084,308
MISUMI Group, Inc.		101,100		1,392,245
Nissei ASB Machine Co., Ltd.		53,200		898,993
Rinnai Corp.		14,000		1,239,459
Santen Pharmaceutical Co., Ltd.		80,400		1,322,214
Sawai Pharmaceutical Co., Ltd.		14,300		979,047
Seria Co., Ltd.		35,700		1,729,049
Ship Healthcare Holdings, Inc.		40,000		988,330
Skylark Co., Ltd.		77,300		997,934
Suruga Bank, Ltd.		69,300		1,427,908
Temp Holdings Co., Ltd.		96,300		1,493,769
Topcon Corp.		69,384		1,174,146
USS Co., Ltd.		73,200		1,101,342
Zenkoku Hosho Co., Ltd.		31,442		1,037,596
				31,102,020
Luxembourg | 1.2%
Grand City Properties SA		54,869		1,283,621
Mexico | 1.0%
Unifin Financiera SAPI de CV SOFOM ENR		343,817		1,064,896
Netherlands | 1.9%
Aalberts Industries NV		37,960		1,305,489
Frank’s International NV		43,000		717,670
				2,023,159
New Zealand | 1.1%
Z Energy, Ltd.		252,813		1,165,994

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

48  Annual Report

Description	Shares		Value
Lazard International Small Cap Equity Portfolio (concluded)
Norway | 1.0%
Europris ASA		222,381	$	1,076,378
Singapore | 0.9%
XP Power, Ltd.		46,466		995,657
Spain | 0.7%
Euskaltel SA		58,112		730,074
Sweden | 6.7%
Alimak Group AB		117,022		1,175,941
Fingerprint Cards AB, Class B (a)		10,763		742,544
Indutrade AB		23,370		1,316,902
Intrum Justitia AB		29,641		1,008,362
Inwido AB		120,517		1,577,990
Nordax Group AB		240,517		1,445,299
				7,267,038
Switzerland | 2.4%
Cembra Money Bank AG		19,800		1,270,674
Kardex AG		17,054		1,323,386
				2,594,060
Taiwan | 2.7%
Chicony Electronics Co., Ltd.		343,710		751,161
Sinmag Equipment Corp.		165,933		523,751
Sporton International, Inc.		152,882		933,395
Zeng Hsing Industrial Co., Ltd.		170,000		712,485
				2,920,792
United Kingdom | 15.4%
AA PLC		167,328		770,404
Ashtead Group PLC		70,867		1,166,089

Description	Shares		Value
Auto Trader Group PLC		138,440	$	904,678
Dignity PLC		37,439		1,403,167
Foxtons Group PLC		158,926		439,263
Hunting PLC		172,591		780,592
IG Group Holdings PLC		141,732		1,668,774
Markit, Ltd. (a)		37,500		1,131,375
Polypipe Group PLC		227,115		1,168,172
Provident Financial PLC		18,720		927,174
Rightmove PLC		25,601		1,547,346
RPC Group PLC		129,259		1,585,500
Savills PLC		77,225		1,003,244
Telit Communications PLC (a)		262,753		827,044
Workspace Group PLC REIT		89,891		1,268,777
				16,591,599
Total Common Stocks (Identified cost $88,730,103)				103,020,241
Short-Term Investment | 3.8%
State Street Institutional Treasury Money Market Fund (Identified cost $4,071,063)		4,071,063		4,071,063
Total Investments | 99.5% (Identified cost $92,801,166) (b)			$	107,091,304
Cash and Other Assets in Excess of Liabilities | 0.5%				512,647
Net Assets | 100.0%			$	107,603,951

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

Annual Report  49

Description	Shares		Value
Lazard Global Equity Select Portfolio
Common Stocks | 95.1%
Belgium | 2.5%
Anheuser-Busch InBev SA/NV		4,246	$	524,487
China | 1.8%
Autohome, Inc. ADR (a)		6,125		213,885
Baidu, Inc. Sponsored ADR (a)		870		164,465
				378,350
Denmark | 1.2%
Novo Nordisk A/S, Class B		4,445		255,500
Finland | 2.2%
Sampo Oyj, A Shares		8,983		455,314
Germany | 3.4%
Continental AG		1,559		378,394
Symrise AG		5,063		335,861
				714,255
India | 0.5%
Indiabulls Housing Finance, Ltd. GDR		9,622		107,237
Ireland | 0.6%
Permanent TSB Group Holdings PLC (a)		26,074		130,207
Israel | 1.5%
Check Point Software Technologies, Ltd. (a)		2,130		173,340
Teva Pharmaceutical Industries, Ltd. Sponsored ADR		2,210		145,064
				318,404
Italy | 1.2%
Davide Campari-Milano SpA		29,807		256,649
Japan | 5.6%
AEON Financial Service Co., Ltd.		13,500		302,021
Daiwa House Industry Co., Ltd.		17,350		497,435
Recruit Holdings Co., Ltd.		6,800		199,949
Ryohin Keikaku Co., Ltd.		900		182,459
				1,181,864
Netherlands | 2.1%
NXP Semiconductors NV (a)		2,320		195,460
Wolters Kluwer NV		7,170		240,236
				435,696

Description	Shares		Value
Norway | 1.4%
Europris ASA		18,420	$	89,157
Telenor ASA		11,642		193,679
				282,836
Russia | 0.6%
Magnit PJSC Sponsored GDR		3,013		120,602
South Africa | 0.6%
Sanlam, Ltd.		31,553		122,414
Sweden | 2.1%
Assa Abloy AB, Class B		21,163		443,252
Switzerland | 4.6%
Actelion, Ltd.		1,683		231,578
Credit Suisse Group AG		11,404		246,479
Novartis AG		5,590		477,814
				955,871
Taiwan | 1.0%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		9,020		205,205
Thailand | 0.6%
Kasikornbank Public Co. Ltd.		29,440		121,711
United Kingdom | 13.3%
Aon PLC		2,905		267,870
Auto Trader Group PLC		30,156		197,064
British American Tobacco PLC		3,767		209,216
Compass Group PLC		12,242		211,882
Henderson Group PLC		39,628		179,136
Provident Financial PLC		4,526		224,166
Prudential PLC		12,741		285,244
RELX NV		18,857		317,097
Shire PLC		5,976		409,558
UBM PLC		25,319		196,337
Unilever PLC		6,426		275,147
				2,772,717
United States | 48.3%
Alphabet, Inc.:
Class A (a)		712		553,943
Class C (a)		613		465,193
Apple, Inc.		5,131		540,089
Applied Materials, Inc.		6,475		120,888

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

50  Annual Report

Description	Shares		Value
Lazard Global Equity Select Portfolio (concluded)
AutoZone, Inc. (a)		334	$	247,798
Bristol-Myers Squibb Co.		4,565		314,026
Cisco Systems, Inc.		12,340		335,093
CVS Health Corp.		4,085		399,390
EOG Resources, Inc.		2,110		149,367
Fidelity National Information Services, Inc.		3,190		193,314
Halliburton Co.		7,285		247,981
Honeywell International, Inc.		4,838		501,072
Intercontinental Exchange, Inc.		1,281		328,269
Kellogg Co.		2,995		216,449
MasterCard, Inc., Class A		2,940		286,238
McGraw Hill Financial, Inc.		2,140		210,961
McKesson Corp.		1,303		256,991
Mead Johnson Nutrition Co.		2,125		167,769
Molson Coors Brewing Co., Class B		2,024		190,094
Monsanto Co.		2,205		217,237
OneMain Holdings, Inc. (a)		4,125		171,353
Quintiles Transnational Holdings, Inc. (a)		4,580		314,463
Raytheon Co.		1,990		247,815
Reynolds American, Inc.		10,270		473,960
Rockwell Automation, Inc.		1,800		184,698
Schlumberger, Ltd.		3,896		271,746
The Charles Schwab Corp.		5,200		171,236
The Hartford Financial Services Group, Inc.		4,364		189,659

Description	Shares		Value
The J.M. Smucker Co.		1,835	$	226,329
The Procter & Gamble Co.		4,365		346,625
Thermo Fisher Scientific, Inc.		1,695		240,436
Twitter, Inc. (a)		3,085		71,387
Tyco International PLC		5,755		183,527
Union Pacific Corp.		2,800		218,960
United Technologies Corp.		1,989		191,083
Visa, Inc., Class A		4,928		382,166
Zoetis, Inc.		5,787		277,313
				10,104,918
Total Common Stocks (Identified cost $19,302,277)				19,887,489
Short-Term Investment | 4.4%
State Street Institutional Treasury Money Market Fund (Identified cost $928,246)		928,246		928,246
Total Investments | 99.5% (Identified cost $20,230,523) (b)			$	20,815,735
Cash and Other Assets in Excess of Liabilities | 0.5%				98,669
Net Assets | 100.0%			$	20,914,404

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

Annual Report  51

Description	Shares		Value
Lazard Global Strategic Equity Portfolio
Common Stocks | 98.8%
Australia | 1.9%
Caltex Australia, Ltd.		6,633	$	180,601
Belgium | 1.5%
Anheuser-Busch InBev SA/NV		1,161		143,413
Canada | 0.3%
Encana Corp.		5,579		28,345
Denmark | 1.7%
Carlsberg A/S, Class B		1,810		160,031
Finland | 3.0%
Sampo Oyj, A Shares		5,501		278,824
France | 2.0%
Iliad SA		461		109,986
Vivendi SA		3,632		78,209
				188,195
Indonesia | 0.6%
PT Media Nusantara Citra Tbk		379,700		50,379
Israel | 2.5%
Check Point Software Technologies, Ltd. (a)		1,069		86,995
Teva Pharmaceutical Industries, Ltd. Sponsored ADR		2,251		147,756
				234,751
Japan | 8.0%
Ain Holdings, Inc.		2,200		104,802
Asics Corp.		5,600		115,902
Daiwa House Industry Co., Ltd.		7,300		209,295
Don Quijote Holdings Co., Ltd.		3,100		108,912
Gulliver International Co., Ltd.		13,100		129,960
SoftBank Group Corp.		1,580		79,623
				748,494
New Zealand | 0.7%
Z Energy, Ltd.		14,816		68,333
Norway | 1.0%
Europris ASA		19,528		94,520

Description	Shares		Value
Philippines | 1.1%
Alliance Global Group, Inc.		285,100	$	97,331
South Africa | 2.9%
Mediclinic International, Ltd.		13,572		104,414
Nampak, Ltd.		50,229		80,534
Sanlam, Ltd.		22,745		88,242
				273,190
Switzerland | 4.7%
Actelion, Ltd.		1,153		158,651
Credit Suisse Group AG		6,301		136,186
Novartis AG		1,668		142,575
				437,412
Taiwan | 1.6%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		6,608		150,332
Turkey | 0.8%
Turkcell Iletisim Hizmetleri AS		22,895		77,656
United Kingdom | 19.0%
Aon PLC		1,918		176,859
Auto Trader Group PLC		12,084		78,967
British American Tobacco PLC		3,979		220,990
Informa PLC		22,401		202,283
Lloyds Banking Group PLC		134,068		144,300
Merlin Entertainments PLC		19,391		129,947
Prudential PLC		8,376		187,521
Rexam PLC		11,124		98,676
Shire PLC		3,233		221,570
Spire Healthcare Group PLC		33,771		155,615
Worldpay Group PLC		35,200		159,604
				1,776,332
United States | 45.5%
Advance Auto Parts, Inc.		1,170		176,097
Alphabet, Inc., Class A (a)		547		425,572
American Airlines Group, Inc.		2,811		119,046
Apple, Inc.		2,870		302,096
Celgene Corp. (a)		804		96,287
CVS Health Corp.		1,384		135,314
EOG Resources, Inc.		474		33,554
Fidelity National Information Services, Inc.		1,500		90,900
J.C. Penney Co., Inc. (a)		6,482		43,170
Kellogg Co.		2,768		200,043
MasterCard, Inc., Class A		2,582		251,384

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

52  Annual Report

Description	Shares		Value
Lazard Global Strategic Equity Portfolio (concluded)
McKesson Corp.		596	$	117,549
Microsoft Corp.		4,262		236,456
Molson Coors Brewing Co., Class B		2,622		246,258
Morningstar, Inc.		1,857		149,321
OneMain Holdings, Inc. (a)		1,928		80,089
Quintiles Transnational Holdings, Inc. (a)		2,100		144,186
Reynolds American, Inc.		8,207		378,753
Rockwell Automation, Inc.		781		80,138
The J.M. Smucker Co.		1,388		171,196
Union Pacific Corp.		1,162		90,868
United Therapeutics Corp. (a)		1,252		196,076
Visa, Inc., Class A		3,867		299,886
Zoetis, Inc.		4,077		195,370
				4,259,609
Total Common Stocks (Identified cost $9,171,621)				9,247,748

Description	Shares		Value
Short-Term Investment | 1.5%
State Street Institutional Treasury Money Market Fund (Identified cost $144,970)		144,970	$	144,970
Total Investments | 100.3% (Identified cost $9,316,591) (b)			$	9,392,718
Liabilities in Excess of Cash and Other Assets | (0.3)%				(24,394	)
Net Assets | 100.0%			$	9,368,324

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

Annual Report  53

Description	Shares		Value
Lazard Managed Equity Volatility Portfolio
Common Stocks | 98.5%
Australia | 7.1%
Amcor, Ltd.		1,455	$	14,156
Aristocrat Leisure, Ltd.		1,430		10,568
Blackmores, Ltd.		115		18,147
carsales.com, Ltd.		792		6,717
CSL, Ltd.		483		36,825
Evolution Mining, Ltd.		9,027		9,171
Qantas Airways, Ltd.		2,964		8,790
Regis Resources, Ltd.		4,164		7,056
Sandfire Resources NL		2,030		8,199
Telstra Corp., Ltd.		7,349		29,819
Wesfarmers, Ltd.		227		6,830
Westfield Corp. REIT		1,843		12,679
				168,957
Belgium | 0.5%
Telenet Group Holding NV (a)		235		12,665
Bermuda | 2.7%
Everest Re Group, Ltd.		188		34,421
PartnerRe, Ltd.		84		11,738
Validus Holdings, Ltd.		399		18,470
				64,629
Canada | 8.0%
Agnico Eagle Mines, Ltd.		223		5,861
Canadian National Railway Co.		269		15,037
CI Financial Corp.		797		17,625
Cineplex, Inc.		319		10,962
Cogeco Cable, Inc.		189		8,437
Colliers International Group, Inc.		165		7,361
Constellation Software, Inc.		15		6,254
Dollarama, Inc.		521		30,100
Imperial Oil, Ltd.		148		4,822
Intact Financial Corp.		492		31,532
Metro, Inc.		421		11,787
Royal Bank of Canada		278		14,898
Suncor Energy, Inc.		188		4,853
Tourmaline Oil Corp. (a)		368		5,944
Transcontinental, Inc. Class A		376		4,690
Uni-Select, Inc.		217		10,744
				190,907
China | 0.4%
Yangzijiang Shipbuilding Holdings, Ltd.		11,200		8,648

Description	Shares		Value
Denmark | 0.6%
Novo Nordisk A/S, Class B		257	$	14,772
Finland | 0.4%
Elisa Oyj		237		8,913
France | 0.3%
Sopra Steria Group		50		5,873
Germany | 0.3%
Muenchener Rueckversicherungs AG		33		6,609
Hong Kong | 6.0%
CLP Holdings, Ltd.		2,000		16,999
Henderson Land Development Co., Ltd.		3,100		18,871
HK Electric Investments & HK Electric Investments, Ltd.		12,500		10,472
Hongkong Land Holdings, Ltd.		1,000		6,973
PCCW, Ltd.		24,000		14,059
Swire Pacific, Ltd., Class A		1,000		11,229
The Link		5,500		32,918
The Wharf Holdings, Ltd.		4,000		22,156
Wheelock & Co., Ltd.		2,000		8,430
				142,107
Ireland | 1.4%
Accenture PLC, Class A		68		7,106
ICON PLC (a)		83		6,449
Paddy Power PLC		86		11,485
Ryanair Holdings PLC Sponsored ADR		97		8,387
				33,427
Israel | 1.0%
Bank Hapoalim BM		933		4,819
Bank Leumi Le-Israel BM (a)		1,639		5,685
Israel Discount Bank, Ltd., Class A (a)		3,874		7,022
Teva Pharmaceutical Industries, Ltd.		112		7,351
				24,877
Japan | 8.5%
Ai Holdings Corp.		200		5,068
Astellas Pharma, Inc.		400		5,682
Canon, Inc.		500		15,155
Daito Trust Construction Co., Ltd.		100		11,578
Electric Power Development Co., Ltd.		200		7,117
Fuji Heavy Industries, Ltd.		100		4,111
Heiwa Corp.		500		9,361
IT Holdings Corp.		200		4,570
Japan Airlines Co., Ltd.		200		7,162

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

54  Annual Report

Description	Shares		Value
Lazard Managed Equity Volatility Portfolio (continued)
Japan Petroleum Exploration Co., Ltd.		200	$	5,356
JTEKT Corp.		300		4,910
Kaken Pharmaceutical Co., Ltd.		100		6,817
Medipal Holdings Corp.		300		5,108
Minebea Co., Ltd.		1,000		8,587
Mitsubishi Gas Chemical Co., Inc.		1,000		5,109
Mitsui Chemicals, Inc.		1,000		4,435
Murata Manufacturing Co., Ltd.		100		14,353
Nippon Telegraph & Telephone Corp.		200		7,940
Nissan Motor Co., Ltd.		1,400		14,662
Shionogi & Co., Ltd.		200		9,042
Sumitomo Chemical Co., Ltd.		1,000		5,739
Sumitomo Mitsui Financial Group, Inc.		200		7,544
Sumitomo Rubber Industries, Ltd.		500		6,500
Taikisha, Ltd.		300		7,180
The San-In Godo Bank, Ltd.		500		4,055
Ube Industries, Ltd.		4,000		8,442
West Japan Railway Co.		100		6,898
				202,481
Netherlands | 1.3%
Aegon NV		872		4,922
Euronext NV		137		7,006
NN Group NV		534		18,779
				30,707
New Zealand | 1.9%
Air New Zealand, Ltd.		4,340		8,764
Fisher & Paykel Healthcare Corp., Ltd., Class C		1,965		11,928
Spark New Zealand, Ltd.		11,243		25,340
				46,032
Norway | 1.6%
Statoil ASA		2,210		30,910
Telenor ASA		466		7,752
				38,662
Puerto Rico | 0.2%
EVERTEC, Inc.		345		5,775
Singapore | 3.2%
Ascendas Real Estate Investment Trust		8,500		13,613
CapitaLand, Ltd.		3,300		7,745
ComfortDelGro Corp., Ltd.		11,800		25,240
Singapore Airlines, Ltd.		700		5,509
United Overseas Bank, Ltd.		1,700		23,403
				75,510

Description	Shares		Value
Spain | 0.1%
Corporacion Financiera Alba SA		60	$	2,594
Sweden | 0.5%
Axfood AB		433		7,470
Unibet Group PLC SDR		48		4,897
				12,367
Switzerland | 1.6%
Actelion, Ltd.		36		4,954
Chocoladefabriken Lindt & Spruengli AG		1		6,229
dorma+kaba Holding AG		9		6,106
Roche Holding AG		73		20,118
				37,407
United Kingdom | 7.3%
Admiral Group PLC		343		8,343
Aon PLC		77		7,100
Auto Trader Group PLC		1,195		7,809
Bellway PLC		145		6,046
BT Group PLC		2,096		14,486
Centrica PLC		2,120		6,810
Cineworld Group PLC		1,208		10,006
Compass Group PLC		1,265		21,894
Debenhams PLC		6,087		6,537
easyJet PLC		214		5,478
Greggs PLC		493		9,546
Micro Focus International PLC		319		7,489
Moneysupermarket.com Group PLC		1,412		7,627
Next PLC		178		19,082
Rentokil Initial PLC		5,228		12,257
Shire PLC		86		5,894
SSE PLC		733		16,414
				172,818
United States | 43.6%
3M Co.		243		36,606
Allison Transmission Holdings, Inc.		197		5,100
Altria Group, Inc.		101		5,879
Amdocs, Ltd.		144		7,858
American Electric Power Co., Inc.		574		33,447
Apple, Inc.		52		5,474
AT&T, Inc.		1,119		38,505
Automatic Data Processing, Inc.		71		6,015
Bank of America Corp.		357		6,008
CBOE Holdings, Inc.		245		15,901
Chemed Corp.		52		7,790
Cirrus Logic, Inc. (a)		304		8,977

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

Annual Report   55

Description	Shares		Value
Lazard Managed Equity Volatility Portfolio (concluded)
Coca-Cola Enterprises, Inc.		348	$	17,136
Colgate-Palmolive Co.		377		25,116
Comcast Corp., Class A		101		5,699
CR Bard, Inc.		86		16,292
Dr Pepper Snapple Group, Inc.		343		31,968
Edison International		241		14,270
Emerson Electric Co.		151		7,222
Exelon Corp.		406		11,275
FactSet Research Systems, Inc.		75		12,193
FMC Technologies, Inc. (a)		205		5,947
Foot Locker, Inc.		117		7,616
General Dynamics Corp.		98		13,461
Gilead Sciences, Inc.		68		6,881
Global Payments, Inc.		96		6,193
HCA Holdings, Inc. (a)		141		9,536
HealthSouth Corp.		145		5,047
Intel Corp.		383		13,194
International Paper Co.		176		6,635
Intuit, Inc.		55		5,308
Johnson & Johnson		364		37,390
Lockheed Martin Corp.		47		10,206
MasterCard, Inc., Class A		80		7,789
McDonald’s Corp.		238		28,117
McGraw Hill Financial, Inc.		169		16,660
MetLife, Inc.		113		5,448
Mettler-Toledo International, Inc. (a)		23		7,800
Monsanto Co.		77		7,586
Motorola Solutions, Inc.		78		5,339
National Fuel Gas Co.		219		9,362
NIKE, Inc., Class B		528		33,000
Northrop Grumman Corp.		58		10,951
O’Reilly Automotive, Inc. (a)		53		13,431
Orbital ATK, Inc.		80		7,147
PepsiCo, Inc.		375		37,470
PerkinElmer, Inc.		118		6,321
Philip Morris International, Inc.		88		7,736
Pinnacle Entertainment, Inc. (a)		237		7,375
Premier, Inc., Class A (a)		309		10,898
Public Service Enterprise Group, Inc.		557		21,550
PVH Corp.		73		5,377
Rockwell Automation, Inc.		99		10,158
Rockwell Collins, Inc.		82		7,569
Ross Stores, Inc.		181		9,740
Rowan Cos. PLC, Class A		292		4,949

Description	Shares		Value
Sanderson Farms, Inc.		101	$	7,830
Skyworks Solutions, Inc.		123		9,450
Spirit AeroSystems Holdings, Inc.,
Class A (a)		112		5,608
Starbucks Corp.		236		14,167
Target Corp.		106		7,697
The Clorox Co.		141		17,883
The Estee Lauder Cos., Inc., Class A		70		6,164
The Kroger Co.		839		35,095
The Southern Co.		542		25,360
The TJX Cos., Inc.		280		19,855
The Walt Disney Co.		165		17,338
Thermo Fisher Scientific, Inc.		152		21,561
Time Warner, Inc.		164		10,606
Triumph Group, Inc.		153		6,082
Tyson Foods, Inc., Class A		104		5,546
UnitedHealth Group, Inc.		49		5,764
Verizon Communications, Inc.		682		31,522
Visa, Inc., Class A		85		6,592
Waste Management, Inc.		311		16,598
Waters Corp. (a)		114		15,342
Wyndham Worldwide Corp.		111		8,064
Xcel Energy, Inc.		472		16,950
				1,038,992
Total Common Stocks (Identified cost $2,355,104)				2,345,729
Right | 0.0%
Singapore | 0.0%
Ascendas Real Estate Investment Trust Expires 01/13/16 (c) (Identified cost $0)		318		14
Short-Term Investment | 3.6%
State Street Institutional Treasury Money Market Fund (Identified cost $86,664)		86,664		86,664
Total Investments | 102.1% (Identified cost $2,441,768) (b)			$	2,432,407
Liabilities in Excess of Cash and Other Assets | (2.1)%				(51,035	)
Net Assets | 100.0%			$	2,381,372

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

56   Annual Report

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2015

(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	$	773,315,061	$	62,625,224	$	8,047,748	$	54,577,476
US Strategic Equity		117,738,838		10,090,065		8,229,675		1,860,390
US Mid Cap Equity		30,496,549		1,174,520		1,236,682		(62,162	)
US Small-Mid Cap Equity		206,046,997		14,444,669		13,483,897		960,772
US Small Cap Equity Growth		13,130,866		999,865		709,943		289,922
International Equity		872,944,314		43,095,024		52,488,237		(9,393,213	)
International Equity Select		22,711,322		828,421		2,647,978		(1,819,557	)
International Equity Concentrated		14,591,251		398,800		1,864,162		(1,465,362	)
International Strategic Equity		6,741,517,803		551,680,445		535,403,129		16,277,316
International Equity Advantage		2,015,901		65,625		141,930		(76,305	)
International Small Cap Equity		94,597,999		18,461,651		5,968,346		12,493,305
Global Equity Select		20,251,555		1,555,318		991,138		564,180
Global Strategic Equity		9,324,667		698,002		629,951		68,051
Managed Equity Volatility		2,445,022		104,320		116,935		(12,615	)

(c) Security valued using Level 2 inputs, based on reference to a similar security which was trading on an active market, under “GAAP” hierarchy – see Note 9.

Security Abbreviations:

ADR	—	American Depositary Receipt
GDR	—	Global Depositary Receipt
PJSC	—	Public Joint Stock Company
REIT	—	Real Estate Investment Trust
SDR	—	Swedish Depositary Receipt

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

Annual Report   57

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

Industry*	Lazard International Equity Portfolio			Lazard International Equity Select Portfolio			Lazard International Equity Concentrated Portfolio			Lazard International Strategic Equity Portfolio			Lazard International Equity Advantage Portfolio			Lazard International Small Cap Equity Portfolio
Aerospace & Defense		1.0	%		—	%		3.2	%		—	%		—	%		0.8	%
Alcohol & Tobacco		8.1			8.1			8.7			10.2			3.4			—
Apparel, Textiles & Luxury Goods		—			0.9			—			2.5			—			2.4
Automotive		2.8			2.3			7.0			2.2			5.0			2.4
Banking		10.5			7.4			6.7			4.7			11.2			3.5
Building Products		2.1			2.1			—			2.3			—			2.6
Chemicals		—			—			—			2.0			3.3			1.1
Commercial Services		3.4			5.8			5.9			2.2			1.1			10.5
Computer Software & Services		—			1.2			—			1.5			0.6			—
Construction & Engineering		1.7			1.2			—			—			1.7			—
Construction Materials		—			—			—			1.2			—			—
Consumer Products		—			—			—			—			0.3			—
Diversified		0.8			1.8			—			0.9			—			—
Electric		1.0			1.3			—			—			2.8			—
Energy Exploration & Production		0.6			0.3			—			0.6			—			—
Energy Integrated		5.1			1.8			—			2.8			4.0			1.1
Energy Services		—			—			—			—			—			1.4
Financial Services		3.5			2.0			3.1			8.3			2.7			12.8
Food & Beverages		—			1.1			—			3.1			3.8			4.2
Forest & Paper Products		1.6			1.9			—			3.3			1.2			3.6
Gas Utilities		—			—			—			—			0.8			—
Health Services		—			1.2			—			2.1			0.7			2.4
Household & Personal Products		2.7			2.7			6.0			—			2.3			4.0
Housing		1.0			—			—			—			1.6			1.1
Insurance		8.3			8.8			11.8			10.2			7.2			1.5
Internet Software & Services		—			2.2			2.7			0.3			0.9			2.8
Leisure & Entertainment		—			1.6			—			2.6			4.3			1.7
Manufacturing		1.7			2.1			2.3			1.7			5.2			7.6
Media		5.6			4.8			6.8			6.1			—			2.8
Medical Products		—			—			—			—			1.4			—
Metals & Mining		0.6			1.1			—			—			1.4			—
Pharmaceutical & Biotechnology		11.3			12.6			9.1			11.2			12.8			2.1
Real Estate Management & Development		3.2			2.8			4.7			2.8			3.5			5.1
Retail		5.8			3.8			2.2			3.8			3.1			7.1
Semiconductors & Components		1.7			3.2			4.9			1.2			3.7			5.7
Technology		—			—			—			—			0.5			—
Technology Hardware		—			1.3			—			—			—			3.7
Telecommunications		7.9			7.3			6.8			7.4			5.6			0.7
Transportation		2.0			0.9			—			—			3.6			1.0
Water		—			0.6			—			0.7			0.3			—
Subtotal		94.0			96.2			91.9			97.9			100.0			95.7
Repurchase Agreement		5.7			—			—			—			—			—
Short-Term Investments		—			3.6			3.2			1.8			2.6			3.8
Total Investments		99.7	%		99.8	%		95.1	%		99.7	%		102.6	%		99.5	%

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

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

58   Annual Report

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

Industry*	Lazard Global Equity Select Portfolio			Lazard Global Strategic Equity Portfolio			Lazard Managed Equity Volatility Portfolio
Aerospace & Defense		—	%		—	%		0.6	%
Agriculture		1.0			—			0.3
Alcohol & Tobacco		7.9			12.3			0.6
Apparel, Textiles & Luxury Goods		—			1.2			—
Automotive		1.8			—			1.1
Banking		1.2			1.5			3.1
Building Products		2.1			—			—
Cable Television		—			—			0.6
Chemicals		1.6			—			1.0
Commercial Services		2.8			4.3			3.8
Computer Software & Services		3.2			3.5			0.2
Consumer Products		—			—			0.8
Diversified		—			1.0			—
Electric		—			—			7.3
Energy Exploration & Production		0.7			0.7			0.5
Energy Integrated		—			2.7			2.1
Energy Services		2.5			—			0.5
Financial Services		11.5			8.2			2.3
Food & Beverages		2.9			4.0			5.0
Forest & Paper Products		—			1.9			0.9
Gas Utilities		—			—			0.3
Health Services		2.7			5.6			1.9
Household & Personal Products		3.0			—			2.0
Housing		—			—			0.6
Insurance		6.3			6.9			6.2
Internet Software & Services		6.6			5.4			0.6
Leisure & Entertainment		1.0			1.4			6.7
Manufacturing		5.4			0.9			6.7
Media		3.6			3.5			—
Medical Products		1.2			—			2.3
Metals & Mining		—			—			1.5
Pharmaceutical & Biotechnology		10.1			12.4			8.2
Real Estate Management & Development		2.4			2.2			5.7
Retail		5.0			8.5			8.7
Semiconductors & Components		1.9			1.6			2.8
Technology		—			0.8			1.6
Technology Hardware		4.8			3.2			0.2
Telecommunications		0.9			2.9			8.0
Transportation		1.0			2.2			3.8
Subtotal		95.1			98.8			98.5
Short-Term Investments		4.4			1.5			3.6
Total Investments		99.5	%		100.3	%		102.1	%

* 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   59

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2015	Lazard US Equity Concentrated Portfolio				Lazard US Strategic Equity Portfolio
ASSETS
Investments in securities, at value		$	827,892,537		$	119,599,228
Cash			—			10,596
Foreign currency			—			—
Receivables for:
Capital stock sold			7,446,303			51,696
Investments sold			—			5,884,752
Dividends			111,946			110,861
Amount due from Investment Manager (Note 3)			—			—
Deferred offering costs (Note 2(g))			—			—
Total assets			835,450,786			125,657,133
LIABILITIES
Payables for:
Management fees			480,285			51,950
Accrued distribution fees			23,861			336
Capital stock redeemed			782,491			24,071
Investments purchased			3,919,250			—
Line of credit outstanding			—			1,381,000
Other accrued expenses and payables			130,792			61,628
Total liabilities			5,336,679			1,518,985
Net assets		$	830,114,107		$	124,138,148
NET ASSETS
Paid in capital		$	772,909,394		$	119,602,126
Undistributed (distributions in excess of) net investment income (loss)			(8,199	)		—
Accumulated net realized gain (loss)			2,625,080			2,485,860
Net unrealized appreciation (depreciation) on:
Investments			54,587,832			2,050,162
Foreign currency			—			—
Net assets		$	830,114,107		$	124,138,148
Institutional Shares
Net assets		$	715,765,864		$	110,243,496
Shares of capital stock outstanding*			51,761,468			10,051,583
Net asset value, offering and redemption price per share		$	13.83		$	10.97
Open Shares
Net assets		$	114,348,243		$	1,535,647
Shares of capital stock outstanding*			8,216,877			139,487
Net asset value, offering and redemption price per share		$	13.92		$	11.01
R6 Shares
Net assets			—		$	12,359,005
Shares of capital stock outstanding*			—			1,127,410
Net asset value, offering and redemption price per share			—		$	10.96
Cost of investments in securities		$	773,304,705		$	117,549,066
Cost of foreign currency		$	—		$	—

* $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total.

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

60   Annual Report

Lazard US Mid Cap Equity Portfolio			Lazard US Small-Mid Cap Equity Portfolio		Lazard US Small Cap Equity Growth Portfolio			Lazard International Equity Portfolio			Lazard International Equity Select Portfolio
$	30,434,387		$	207,007,769	$	13,420,788		$	863,551,101		$	20,891,765
	—			364		—			514			—
	—			—		—			80,973			1,965
	8,542			283,292		6,017			4,980,830			346,395
	—			1,435,316		1,355			734			—
	34,611			160,211		8,249			1,054,170			33,751
	—			—		16,319			—			4,120
	—			—		—			1,836			—
	30,477,540			208,886,952		13,452,728			869,670,158			21,277,996
	4,550			136,853		—			428,968			—
	5,076			7,894		1,064			16,104			480
	3,143,569			150,722		524			1,190,773			269,285
	—			507,365		—			1,962,080			85
	—			—		—			—			—
	46,294			72,304		41,720			192,315			67,083
	3,199,489			875,138		43,308			3,790,240			336,933
$	27,278,051		$	208,011,814	$	13,409,420		$	865,879,918		$	20,941,063
$	65,879,341		$	203,235,974	$	13,300,618		$	880,427,882		$	24,077,835
	—			95,573		(89,293	)		8,501,153			288,663
	(38,573,767	)		3,242,699		(136,871	)		(14,397,903	)		(1,991,615	)
	(27,523	)		1,437,568		334,966			(8,620,690	)		(1,431,893	)
	—			—		—			(30,524	)		(1,927	)
$	27,278,051		$	208,011,814	$	13,409,420		$	865,879,918		$	20,941,063
$	6,899,827		$	171,152,275	$	8,435,045		$	736,271,892		$	18,757,249
	378,296			13,311,013		802,903			43,106,382			2,131,138
$	18.24		$	12.86	$	10.51		$	17.08		$	8.80
$	20,378,224		$	36,859,539	$	4,974,375		$	80,221,123		$	2,183,814
	1,136,165			3,031,413		474,845			4,657,031			247,708
$	17.94		$	12.16	$	10.48		$	17.23		$	8.82
	—			—		—		$	49,386,903			—
	—			—		—			2,893,076			—
	—			—		—		$	17.07			—
$	30,461,910		$	205,570,201	$	13,085,822		$	872,171,791		$	22,323,658
$	—		$	—	$	—		$	80,687		$	1,989

Annual Report   61

December 31, 2015	Lazard International Equity Concentrated Portfolio				Lazard International Strategic Equity Portfolio
ASSETS
Investments in securities, at value		$	13,125,889		$	6,757,795,119
Foreign currency			1,733			458,718
Receivables for:
Capital stock sold			763,000			31,077,983
Investments sold			58,636			16,519,007
Dividends			4,802			9,740,198
Amount due from Investment Manager (Note 3)			5,230			—
Deferred offering costs (Note 2(g))			—			383
Total assets			13,959,290			6,815,591,408
LIABILITIES
Payables for:
Management fees			—			4,382,291
Accrued distribution fees			12			386,458
Capital stock redeemed			—			29,197,990
Investments purchased			109,619			1,285,841
Accrued offering costs (Note 2(g))			—			—
Other accrued expenses and payables			42,118			1,120,309
Total liabilities			151,749			36,372,889
Net assets		$	13,807,541		$	6,779,218,519
NET ASSETS
Paid in capital		$	16,328,015		$	6,777,303,171
Undistributed (distributions in excess of) net investment income			(28,477	)		(865,823	)
Accumulated net realized loss			(1,162,373	)		(17,834,253	)
Net unrealized appreciation (depreciation) on:
Investments			(1,329,437	)		20,986,240
Foreign currency			(187	)		(370,816	)
Net assets		$	13,807,541		$	6,779,218,519
Institutional Shares
Net assets		$	13,752,580		$	4,923,327,969
Shares of capital stock outstanding*			1,663,050			369,311,964
Net asset value, offering and redemption price per share		$	8.27		$	13.33
Open Shares
Net assets		$	54,961		$	1,783,528,568
Shares of capital stock outstanding*			6,633			132,713,560
Net asset value, offering and redemption price per share		$	8.29		$	13.44
R6 Shares
Net assets			—		$	72,361,982
Shares of capital stock outstanding*			—			5,423,697
Net asset value, offering and redemption price per share			—		$	13.34
Cost of investments in securities		$	14,455,326		$	6,736,808,879
Cost of foreign currency		$	1,733		$	458,712

* $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total.

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

62   Annual Report

Lazard International Equity Advantage Portfolio			Lazard International Small Cap Equity Portfolio			Lazard Global Equity Select Portfolio			Lazard Global Strategic Equity Portfolio			Lazard Managed Equity Volatility Portfolio
$	1,939,596		$	107,091,304		$	20,815,735		$	9,392,718		$	2,432,407
	262			34,652			499			365			238
	—			402,427			56,241			—			—
	—			82,975			66,801			5,278			—
	1,789			192,933			16,361			7,447			2,930
	17,745			—			14,964			7,876			19,536
	20,526			—			—			—			20,526
	1,979,918			107,804,291			20,970,601			9,413,684			2,475,637
	—			67,159			—			—			—
	20			11,709			79			24			39
	—			14,976			6,842			—			—
	—			18,171			3,306			—			—
	46,283			—			—			—			46,283
	43,830			88,325			45,970			45,336			47,943
	90,133			200,340			56,197			45,360			94,265
$	1,889,785		$	107,603,951		$	20,914,404		$	9,368,324		$	2,381,372
$	2,045,799		$	156,737,494		$	20,553,798		$	9,640,386		$	2,471,066
	(14,851	)		391,633			(26,518	)		(40,798	)		(15,354	)
	(65,538	)		(63,805,380	)		(197,521	)		(307,287	)		(64,966	)
	(75,600	)		14,290,138			585,212			76,127			(9,361	)
	(25	)		(9,934	)		(567	)		(104	)		(13	)
$	1,889,785		$	107,603,951		$	20,914,404		$	9,368,324		$	2,381,372
$	1,796,565		$	51,828,046		$	20,624,176		$	9,254,292		$	2,205,928
	195,042			4,752,936			1,996,624			957,062			229,926
$	9.21		$	10.90		$	10.33		$	9.67		$	9.59
$	93,220		$	55,775,905		$	290,228		$	114,032		$	175,444
	10,120			5,102,884			28,081			11,796			18,287
$	9.21		$	10.93		$	10.34		$	9.67		$	9.59
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
$	2,015,196		$	92,801,166		$	20,230,523		$	9,316,591		$	2,441,768
$	264		$	34,724		$	499		$	363		$	238

Annual Report   63

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2015	Lazard US Equity Concentrated Portfolio			Lazard US Strategic Equity Portfolio
Investment Income (Loss)
Income
Dividends*		$	6,651,355		$	2,086,079
Expenses
Management fees (Note 3)			4,058,477			960,903
Distribution fees (Open Shares)			169,607			8,746
Custodian fees			100,724			73,986
Administration fees			165,958			77,456
Registration fees			120,696			36,341
Shareholders’ reports			25,966			11,604
Professional services			51,314			41,388
Shareholders’ services			31,635			40,548
Directors’ fees and expenses			23,733			8,891
Amortization of offering costs (Note 2(g))			—			2,786
Organization expenses			—			—
Other†			16,014			9,684
Total gross expenses			4,764,124			1,272,333
Management fees waived and expenses reimbursed			—			(239,097	)
Administration and shareholders’ services fees waived			—			—
Total net expenses			4,764,124			1,033,236
Net investment income (loss)			1,887,231			1,052,843
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency
Net realized gain (loss) on:
Investments			30,074,234			11,091,133
Foreign currency			—			—
Total net realized gain (loss) on investments and foreign currency			30,074,234			11,091,133
Net change in unrealized appreciation (depreciation) on:
Investments			5,395,535			(18,663,214	)
Foreign currency			—			—
Total net change in unrealized appreciation (depreciation) on investments and foreign currency			5,395,535			(18,663,214	)
Net realized and unrealized gain (loss) on investments and foreign currency			35,469,769			(7,572,081	)
Net increase (decrease) in net assets resulting from operations		$	37,357,000		$	(6,519,238	)
* Net of foreign withholding taxes of		$	—		$	—
† Includes interest on line of credit of		$	—		$	135

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

64  Annual Report

Lazard US Mid Cap Equity Portfolio				Lazard US Small-Mid Cap Equity Portfolio				Lazard US Small Cap Equity Growth Portfolio				Lazard International Equity Portfolio				Lazard International Equity Select Portfolio
	$	339,307			$	2,132,912			$	48,928			$	14,349,069			$	498,908
		267,756				1,542,843				100,225				4,555,068				162,604
		70,522				73,211				10,694				164,391				7,376
		48,974				87,284				58,025				226,701				132,474
		57,141				91,144				52,228				171,470				54,265
		34,754				39,104				32,989				143,178				31,812
		13,664				19,020				8,931				31,127				4,471
		38,098				43,316				37,339				85,971				41,944
		28,976				32,014				29,347				56,128				27,064
		5,118				11,380				4,135				25,069				4,555
		—				—				95,671				5,532				—
		—				—				4,487				1,638				—
		6,559				10,853				1,680				20,975				6,254
		571,562				1,950,169				435,751				5,487,248				472,819
		(111,756	)			—				(269,625	)			(112,872	)			(237,366	)
		—				—				(30,941	)			(6,119	)			—
		459,806				1,950,169				135,185				5,368,257				235,453
		(120,499	)			182,743				(86,257	)			8,980,812				263,455
		2,806,311				13,219,228				146,500				2,890,446				(442,279	)
		—				—				—				(18,948	)			25,003
		2,806,311				13,219,228				146,500				2,871,498				(417,276	)
		(3,655,186	)			(19,823,465	)			335,227				(23,620,430	)			(985,794	)
		—				—				—				701				518
		(3,655,186	)			(19,823,465	)			335,227				(23,619,729	)			(985,276	)
		(848,875	)			(6,604,237	)			481,727				(20,748,231	)			(1,402,552	)
	$	(969,374	)		$	(6,421,494	)		$	395,470			$	(11,767,419	)		$	(1,139,097	)
	$	5,872			$	21,902			$	—			$	1,582,269			$	56,069
	$	—			$	—			$	75			$	—			$	262

Annual Report  65

For the Period Ended December 31, 2015	Lazard International Equity Concentrated Portfolio				Lazard International Strategic Equity Portfolio
Investment Income
Income
Dividends*		$	289,197			$	125,826,635
Expenses
Management fees (Note 3)			118,833				47,550,158
Distribution fees (Open Shares)			515				4,472,970
Custodian fees			72,928				1,647,615
Administration fees			52,642				784,003
Registration fees			34,015				695,518
Shareholders’ reports			7,768				492,915
Professional services			37,441				371,442
Shareholders’ services			26,321				357,578
Directors’ fees and expenses			4,233				235,358
Amortization of offering costs (Note 2(g))			48,889				6,986
Organization expenses			—				1,138
Other†			1,879				162,703
Total gross expenses			405,464				56,778,384
Management fees waived and expenses reimbursed			(241,770	)			—
Administration and shareholders’ services fees waived			(22,812	)			(6,132	)
Total net expenses			140,882				56,772,252
Net investment income			148,315				69,054,383
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency
Net realized gain (loss) on:
Investments			(993,198	)			8,284,459
Foreign currency and forward currency contracts			(5,348	)			(3,757,081	)
Total net realized gain (loss) on investments and foreign currency			(998,546	)			4,527,378
Net change in unrealized appreciation (depreciation) on:
Investments			(1,246,318	)			(245,061,265	)
Foreign currency			(157	)			(13,419	)
Total net change in unrealized appreciation (depreciation) on investments and foreign currency			(1,246,475	)			(245,074,684	)
Net realized and unrealized gain (loss) on investments and foreign currency			(2,245,021	)			(240,547,306	)
Net increase (decrease) in net assets resulting from operations		$	(2,096,706	)		$	(171,492,923	)
* Net of foreign withholding taxes of		$	31,219			$	14,156,354
† Includes interest on line of credit of		$	86			$	—

(a)	From the Portfolio’s commencement of operations on May 29, 2015.
(b)	Amount is less than $1.

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

66  Annual Report

Lazard International Equity Advantage Portfolio (a)				Lazard International Small Cap Equity Portfolio				Lazard Global Equity Select Portfolio				Lazard Global Strategic Equity Portfolio				Lazard Managed Equity Volatility Portfolio (a)
	$	18,629			$	1,878,299			$	257,802			$	161,193			$	31,348
		7,256				700,134				145,377				79,373				7,881
		139				109,904				651				327				208
		42,700				125,072				78,609				85,001				52,847
		28,975				68,672				53,422				51,869				29,014
		1,401				39,335				42,223				32,936				1,425
		1,734				12,742				6,786				4,916				1,807
		36,838				51,647				38,253				37,345				36,842
		17,540				30,495				26,301				26,246				17,548
		3,800				7,173				4,362				4,097				3,806
		28,901				—				284				46,783				28,901
		4,787				—				—				—				4,787
		1,047				7,548				5,672				1,774				1,050
		175,118				1,152,722				401,940				370,667				186,116
		(141,739	)			—				(194,274	)			(244,740	)			(152,852	)
		(23,164	)			—				(18,750	)			(22,819	)			(23,164	)
		10,215				1,152,722				188,916				103,108				10,100
		8,414				725,577				68,886				58,085				21,248
		(65,539	)			878,842				(170,449	)			(281,764	)			(64,841	)
		36				(73,006	)			(2,744	)			(3,165	)			541
		(65,503	)			805,836				(173,193	)			(284,929	)			(64,300	)
		(75,600	)			5,157,045				5,325				44,888				(9,361	)
		(25	)			(2,610	)			(281	)			(76	)			(13	)
		(75,625	)			5,154,435				5,044				44,812				(9,374	)
		(141,128	)			5,960,271				(168,149	)			(240,117	)			(73,674	)
	$	(132,714	)		$	6,685,848			$	(99,263	)		$	(182,032	)		$	(52,426	)
	$	1,772			$	186,758			$	16,147			$	14,149			$	1,571
	$	—	(b)		$	55			$	8			$	8			$	1

Annual Report  67

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

	Lazard						Lazard
	US Equity Concentrated Portfolio						US Strategic Equity Portfolio
	Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,
	2015			2014			2015			2014
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	1,887,231		$	2,165,203		$	1,052,843		$	1,349,167
Net realized gain on investments		30,074,234			22,982,399			11,091,133			16,092,029
Net change in unrealized appreciation (depreciation) on investments		5,395,535			24,622,937			(18,663,214	)		1,285,334
Net increase (decrease) in net assets resulting from operations		37,357,000			49,770,539			(6,519,238	)		18,726,530
Distributions to shareholders
From net investment income
Institutional Shares		(1,883,815	)		(2,101,268	)		(948,959	)		(1,136,357	)
Open Shares		(3,488	)		(18,669	)		(7,796	)		(46,822	)
R6 Shares		—			—			(108,054	)		(146,879	)
From net realized gains
Institutional Shares		(23,437,763	)		(31,353,490	)		(7,489,067	)		(15,206,664	)
Open Shares		(3,760,711	)		(631,686	)		(99,273	)		(902,421	)
R6 Shares		—			—			(801,859	)		(1,895,325	)
Net decrease in net assets resulting from distributions		(29,085,777	)		(34,105,113	)		(9,455,008	)		(19,334,468	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		423,064,259			87,575,985			25,689,676			21,887,406
Open Shares		121,735,683			9,687,222			472,441			2,073,196
R6 Shares		—			—			2,204,020			16,841,957
Net proceeds from reinvestment of distributions
Institutional Shares		20,824,339			25,161,207			8,349,974			16,322,102
Open Shares		3,751,514			638,951			99,593			722,266
R6 Shares		—			—			909,913			2,042,204
Cost of shares redeemed
Institutional Shares		(67,265,283	)		(25,786,587	)		(29,493,938	)		(34,132,392	)
Open Shares		(19,370,112	)		(4,516,085	)		(5,668,683	)		(3,791,036	)
R6 Shares		—			—			(4,177,254	)		(3,605,237	)
Net increase (decrease) in net assets from capital stock transactions		482,740,400			92,760,693			(1,614,258	)		18,360,466
Redemption fees (Note 2(i))
Institutional Shares		12,106			592			807			87
Open Shares		4,689			14			—			—
R6 Shares		—			—			16			—
Net increase in net assets from redemption fees		16,795			606			823			87
Total increase (decrease) in net assets		491,028,418			108,426,725			(17,587,681	)		17,752,615
Net assets at beginning of period		339,085,689			230,658,964			141,725,829			123,973,214
Net assets at end of period*	$	830,114,107		$	339,085,689		$	124,138,148		$	141,725,829
*  Includes undistributed (distributions in excess of) net investment income (loss) of	$	(8,199	)	$	(9,957	)	$	—		$	12,725
(a) The Portfolio commenced operations on December 31, 2014.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		24,685,845			18,141,803			9,645,978			9,312,694
Shares sold		30,399,245			6,636,759			2,086,312			1,701,553
Shares issued to shareholders from reinvestment of distributions		1,524,476			1,879,748			770,083			1,296,958
Shares redeemed		(4,848,098	)		(1,972,465	)		(2,450,790	)		(2,665,227	)
Net increase (decrease)		27,075,623			6,544,042			405,605			333,284
Shares outstanding at end of period		51,761,468			24,685,845			10,051,583			9,645,978
Open Shares
Shares outstanding at beginning of period		593,582			172,050			547,671			610,440
Shares sold		8,729,933			703,552			38,844			162,079
Shares issued to shareholders from reinvestment of distributions		273,036			47,190			9,151			57,177
Shares redeemed		(1,379,674	)		(329,210	)		(456,179	)		(282,025	)
Net increase (decrease)		7,623,295			421,532			(408,184	)		(62,769	)
Shares outstanding at end of period		8,216,877			593,582			139,487			547,671
R6 Shares*
Shares outstanding at beginning of period								1,202,892			—
Shares sold								182,429			1,310,124
Shares issued to shareholders from reinvestment of distributions								83,995			162,340
Shares redeemed								(341,906	)		(269,572	)
Net increase (decrease)								(75,482	)		1,202,892
Shares outstanding at end of period								1,127,410			1,202,892

* The inception date for the R6 Shares was May 19, 2014.

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

68  Annual Report

Lazard						Lazard						Lazard
US Mid Cap Equity Portfolio						US Small-Mid Cap Equity Portfolio						US Small Cap Equity Growth Portfolio
Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Period Ended
December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
2015			2014			2015			2014			2015			2014 (a)
$	(120,499	)	$	39,023		$	182,743		$	485,551		$	(86,257	)	$	(31	)
	2,806,311			2,328,882			13,219,228			76,194,228			146,500			—
	(3,655,186	)		2,659,937			(19,823,465	)		(42,407,373	)		335,227			(261	)
	(969,374	)		5,027,842			(6,421,494	)		34,272,406			395,470			(292	)
	(24,670	)		(36,779	)		(17,759	)		(179,683	)		—			—
	(14,349	)		(69,931	)		(3,736	)		—			—			—
	—			—			—			—			—			—
	—			—			(11,306,533	)		(60,580,450	)		(183,172	)		—
	—			—			(2,473,228	)		(3,449,911	)		(104,618	)		—
	—			—			—			—			—			—
	(39,019	)		(106,710	)		(13,801,256	)		(64,210,044	)		(287,790	)		—
	1,456,957			1,371,752			53,059,478			13,693,718			10,175,145			950,000
	5,723,851			8,080,253			30,739,628			4,685,761			5,237,386			50,000
	—			—			—			—			—			—
	22,654			34,113			10,640,543			58,099,903			182,767			—
	13,934			67,500			2,419,535			3,395,032			104,618			—
	—			—			—			—			—			—
	(1,928,166	)		(6,347,573	)		(34,353,142	)		(239,569,890	)		(2,894,704	)		—
	(17,394,459	)		(13,112,821	)		(7,864,980	)		(5,004,869	)		(503,405	)		—
	—			—			—			—			—			—
	(12,105,229	)		(9,906,776	)		54,641,062			(164,700,345	)		12,301,807			1,000,000
	—			2,980			369			309			136			—
	209			472			528			50			89			—
	—			—			—			—			—			—
	209			3,452			897			359			225			—
	(13,113,413	)		(4,982,192	)		34,419,209			(194,637,624	)		12,409,712			999,708
	40,391,464			45,373,656			173,592,605			368,230,229			999,708			—
$	27,278,051		$	40,391,464		$	208,011,814		$	173,592,605		$	13,409,420		$	999,708
$	—		$	39,003		$	95,573		$	98,446		$	(89,293	)	$	—
	399,731			705,811			11,226,207			22,132,447			95,000			—
	75,046			74,618			3,608,752			881,663			957,277			95,000
	1,263			2,028			830,722			4,033,281			17,642			—
	(97,744	)		(382,726	)		(2,354,668	)		(15,821,184	)		(267,016	)		—
	(21,435	)		(306,080	)		2,084,806			(10,906,240	)		707,903			95,000
	378,296			399,731			13,311,013			11,226,207			802,903			95,000
	1,770,896			2,063,556			1,185,030			951,721			5,000			—
	296,292			468,958			2,245,827			304,719			505,458			5,000
	789			4,076			199,577			247,429			10,128			—
	(931,812	)		(765,694	)		(599,021	)		(318,839	)		(45,741	)		—
	(634,731	)		(292,660	)		1,846,383			233,309			469,845			5,000
	1,136,165			1,770,896			3,031,413			1,185,030			474,845			5,000

Annual Report  69

	Lazard International Equity Portfolio						Lazard International Equity Select Portfolio
	Year Ended December 31, 2015			Year Ended December 31, 2014			Year Ended December 31, 2015			Year Ended December 31, 2014
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	8,980,812		$	4,401,589		$	263,455		$	295,879
Net realized gain (loss) on investments and foreign currency		2,871,498			8,410,316			(417,276	)		2,583,594
Net change in unrealized depreciation on investments and foreign currency		(23,619,729	)		(30,663,453	)		(985,276	)		(3,573,726	)
Net decrease in net assets resulting from operations		(11,767,419	)		(17,851,548	)		(1,139,097	)		(694,253	)
Distributions to shareholders
From net investment income
Institutional Shares		(4,038,236	)		(1,974,980	)		(245,694	)		(171,714	)
Open Shares		(262,377	)		(327,493	)		(23,368	)		(26,153	)
R6 Shares		(355,061	)		—			—			—
From net realized gains
Institutional Shares		—			—			—			—
Open Shares		—			—			—			—
R6 Shares		—			—			—			—
Net decrease in net assets resulting from distributions		(4,655,674	)		(2,302,473	)		(269,062	)		(197,867	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		483,936,279			263,655,606			19,854,119			12,551,546
Open Shares		49,294,930			38,101,824			398,667			281,695
R6 Shares		52,923,780			—			—			—
Net proceeds from reinvestment of distributions
Institutional Shares		3,667,632			1,545,639			228,299			152,169
Open Shares		191,128			198,061			21,191			25,938
R6 Shares		355,061			—			—			—
Cost of shares redeemed
Institutional Shares		(117,130,557	)		(54,451,378	)		(12,803,474	)		(18,482,909	)
Open Shares		(26,768,386	)		(20,632,372	)		(1,146,116	)		(530,943	)
R6 Shares		(23,192	)		—			—			—
Net increase (decrease) in net assets from capital stock transactions		446,446,675			228,417,380			6,552,686			(6,002,504	)
Redemption fees (Note 2(i))
Institutional Shares		17,911			3,106			7			35,028
Open Shares		666			2,479			—			7
Net increase in net assets from redemption fees		18,577			5,585			7			35,035
Total increase (decrease) in net assets		430,042,159			208,268,944			5,144,534			(6,859,589	)
Net assets at beginning of period		435,837,759			227,568,815			15,796,529			22,656,118
Net assets at end of period*	$	865,879,918		$	435,837,759		$	20,941,063		$	15,796,529
*  Includes undistributed (distributions in excess of) net investment income (loss) of	$	8,501,153		$	4,194,963		$	288,663		$	269,267
(a)  The Portfolio commenced operations on August 29, 2014.
(b)  The Portfolio commenced operations on May 29, 2015.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		22,354,987			10,372,906			1,379,602			1,969,195
Shares sold		27,180,751			14,965,499			2,111,339			1,296,315
Shares issued to shareholders from reinvestment of distributions		218,572			87,671			26,424			15,448
Shares redeemed		(6,647,928	)		(3,071,089	)		(1,386,227	)		(1,901,356	)
Net increase (decrease)		20,751,395			11,982,081			751,536			(589,593	)
Shares outstanding at end of period		43,106,382			22,354,987			2,131,138			1,379,602
Open Shares
Shares outstanding at beginning of period		3,359,468			2,353,781			329,390			351,946
Shares sold		2,760,725			2,139,525			43,521			28,856
Shares issued to shareholders from reinvestment of distributions		11,283			11,133			2,447			2,628
Shares redeemed		(1,474,445	)		(1,144,971	)		(127,650	)		(54,040	)
Net increase (decrease)		1,297,563			1,005,687			(81,682	)		(22,556	)
Shares outstanding at end of period		4,657,031			3,359,468			247,708			329,390
R6 Shares*
Shares outstanding at beginning of period		—
Shares sold		2,873,246
Shares issued to shareholders from reinvestment of distributions		21,172
Shares redeemed		(1,342	)
Net increase		2,893,076
Shares outstanding at end of period		2,893,076

* The inception dates for the R6 Shares were April 1, 2015 and January 19, 2015 for Lazard International Equity Portfolio and Lazard International Strategic Equity Portfolio, respectively.

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

70  Annual Report

Lazard International Equity Concentrated Portfolio						Lazard International Strategic Equity Portfolio						Lazard International Equity Advantage Portfolio
Year Ended December 31, 2015			Period Ended December 31, 2014 (a)			Year Ended December 31, 2015			Year Ended December 31, 2014				Period Ended December 31, 2015 (b)
$	148,315		$	(7,276	)	$	69,054,383		$	54,718,466			$	8,414
	(998,546	)		(141,773	)		4,527,378			73,281,197				(65,503	)
	(1,246,475	)		(83,149	)		(245,074,684	)		(242,293,995	)			(75,625	)
	(2,096,706	)		(232,198	)		(171,492,923	)		(114,294,332	)			(132,714	)
	(181,952	)		(5,298	)		(51,317,972	)		(40,821,246	)			(23,913	)
	(564	)		—			(13,859,242	)		(13,234,085	)			(1,090	)
	—			—			(580,506	)		—				—
	—			(3,894	)		(5,058,079	)		(96,231,718	)			—
	—			(228	)		(1,850,926	)		(40,179,844	)			—
	—			—			(74,478	)		—				—
	(182,516	)		(9,420	)		(72,741,203	)		(190,466,893	)			(25,003	)
	10,473,927			9,454,619			2,239,072,574			1,871,953,512				1,922,499
	116,368			584,263			819,153,545			1,073,366,684				100,000
	—			—			73,470,548			—				—
	161,605			9,193			52,056,717			121,459,960				23,913
	559			227			14,709,431			47,953,478				1,090
	—			—			654,983			—				—
	(3,706,741	)		(144,556	)		(913,346,577	)		(405,784,975	)			—
	(622,131	)		—			(563,855,492	)		(325,547,714	)			—
	—			—			(73	)		—				—
	6,423,587			9,903,746			1,721,915,656			2,383,400,945				2,047,502
	960			—			19,798			30,455				—
	88			—			20,689			28,268				—
	1,048			—			40,487			58,723				—
	4,145,413			9,662,128			1,477,722,017			2,078,698,443				1,889,785
	9,662,128			—			5,301,496,502			3,222,798,059				—
$	13,807,541		$	9,662,128		$	6,779,218,519		$	5,301,496,502			$	1,889,785
$	(28,477	)	$	(16,036	)	$	(865,823	)	$	(884,376	)		$	(14,851	)
	955,107			—			271,757,135			162,756,915				—
	1,092,524			968,720			159,545,963			128,369,831				192,414
	19,740			950			3,949,675			8,639,512				2,628
	(404,321	)		(14,563	)		(65,940,809	)		(28,009,123	)			—
	707,943			955,107			97,554,829			109,000,220				195,042
	1,663,050			955,107			369,311,964			271,757,135				195,042
	58,704			—			113,872,041			59,609,458				—
	12,538			58,680			57,654,278			73,161,164				10,000
	68			24			1,106,805			3,380,097				120
	(64,677	)		—			(39,919,564	)		(22,278,678	)			—
	(52,071	)		58,704			18,841,519			54,262,583				10,120
	6,633			58,704			132,713,560			113,872,041				10,120
							—
							5,374,045
							49,658
							(6	)
							5,423,697
							5,423,697

Annual Report  71

	Lazard International Small Cap Equity Portfolio						Lazard Global Equity Select Portfolio
	Year Ended December 31, 2015			Year Ended December 31, 2014			Year Ended December 31, 2015			Year Ended December 31, 2014
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	725,577		$	744,954		$	68,886		$	57,452
Net realized gain (loss) on investments and foreign currency		805,836			5,491,771			(173,193	)		(33,343	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency		5,154,435			(8,128,315	)		5,044			576,334
Net increase (decrease) in net assets resulting from operations		6,685,848			(1,891,590	)		(99,263	)		600,443
Distributions to shareholders
From net investment income
Institutional Shares		(328,065	)		(1,173,296	)		(72,003	)		(75,719	)
Open Shares		(246,359	)		(424,610	)		(144	)		(668	)
Return of capital
Institutional Shares		—			—			—			—
Open Shares		—			—			—			—
Net decrease in net assets resulting from distributions		(574,424	)		(1,597,906	)		(72,147	)		(76,387	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		14,608,009			5,512,283			11,664,002			11,974,387
Open Shares		41,435,527			5,540,791			100,371			189,852
Net proceeds from reinvestment of distributions
Institutional Shares		326,139			1,167,228			72,003			75,719
Open Shares		243,764			402,060			144			633
Cost of shares redeemed
Institutional Shares		(13,625,461	)		(9,423,018	)		(3,210,527	)		(2,197,235	)
Open Shares		(7,819,231	)		(4,537,263	)		(8,078	)		(103,100	)
Net increase (decrease) in net assets from capital stock transactions		35,168,747			(1,337,919	)		8,617,915			9,940,256
Redemption fees (Note 2(i))
Institutional Shares		5			2,318			198			122
Open Shares		767			1,263			—			—
Net increase in net assets from redemption fees		772			3,581			198			122
Total increase (decrease) in net assets		41,280,943			(4,823,834	)		8,446,703			10,464,434
Net assets at beginning of period		66,323,008			71,146,842			12,467,701			2,003,267
Net assets at end of period*	$	107,603,951		$	66,323,008		$	20,914,404		$	12,467,701
*  Includes undistributed (distributions in excess of) net investment income (loss) of	$	391,633		$	(38,414	)	$	(26,518	)	$	(21,451	)
(a)  The Portfolio commenced operations on August 29, 2014.
(b)  The Portfolio commenced operations on May 29, 2015.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		4,628,708			4,886,987			1,188,968			190,000
Shares sold		1,350,408			520,710			1,102,291			1,204,388
Shares issued to shareholders from reinvestment of distributions		32,549			110,743			7,045			7,246
Shares redeemed		(1,258,729	)		(889,732	)		(301,680	)		(212,666	)
Net increase (decrease)		124,228			(258,279	)		807,656			998,968
Shares outstanding at end of period		4,752,936			4,628,708			1,996,624			1,188,968
Open Shares
Shares outstanding at beginning of period		1,993,264			1,859,232			19,499			10,000
Shares sold		3,823,167			528,968			9,328			19,438
Shares issued to shareholders from reinvestment of distributions		24,231			38,038			14			61
Shares redeemed		(737,778	)		(432,974	)		(760	)		(10,000	)
Net increase (decrease)		3,109,620			134,032			8,582			9,499
Shares outstanding at end of period		5,102,884			1,993,264			28,081			19,499

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

72  Annual Report

Lazard Global Strategic Equity Portfolio						Lazard Managed Equity Volatility Portfolio
Year Ended December 31, 2015			Period Ended December 31, 2014 (a)			Period Ended December 31, 2015 (b)
$	58,085		$	(1,491	)		$	21,248
	(284,929	)		(25,752	)			(64,300	)
	44,812			31,211				(9,374	)
	(182,032	)		3,968				(52,426	)
	(80,504	)		(12,804	)			(36,368	)
	(643	)		(241	)			(2,687	)
	—			(2,628	)			—
	—			(49	)			—
	(81,147	)		(15,722	)			(39,055	)
	2,326,919			7,114,369				2,270,861
	78,200			136,100				188,580
	80,503			15,585				36,368
	643			137				2,687
	(8,244	)		(7,551	)			(14,000	)
	(93,404	)		—				(11,643	)
	2,384,617			7,258,640				2,472,853
	—			—				—
	—			—				—
	—			—				—
	2,121,438			7,246,886				2,381,372
	7,246,886			—				—
$	9,368,324		$	7,246,886			$	2,381,372
$	(40,798	)	$	(14,706	)		$	(15,354	)
	715,249			—				—
	234,185			714,476				227,545
	8,430			1,554				3,840
	(802	)		(781	)			(1,459	)
	241,813			715,249				229,926
	957,062			715,249				229,926
	13,609			—				—
	7,890			13,596				19,199
	67			13				284
	(9,770	)		—				(1,196	)
	(1,813	)		13,609				18,287
	11,796			13,609				18,287

Annual Report  73

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	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of year	$	13.41		$	12.59		$	10.71		$	9.24		$	9.56
Income (loss) from investment operations:
Net investment income (a)		0.05			0.11			0.14			0.20			0.15
Net realized and unrealized gain (loss)		0.88			2.23			3.02			1.37			(0.30	)
Total from investment operations		0.93			2.34			3.16			1.57			(0.15	)
Less distributions from:
Net investment income		(0.04	)		(0.09	)		(0.14	)		(0.10	)		(0.17	)
Net realized gains		(0.47	)		(1.43	)		(1.14	)		—			—
Total distributions		(0.51	)		(1.52	)		(1.28	)		(0.10	)		(0.17	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	13.83		$	13.41		$	12.59		$	10.71		$	9.24
Total Return (c)		7.00	%		18.88	%		29.59	%		16.83	%		–1.47	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	715,766		$	331,074		$	228,478		$	121,379		$	11,108
Ratios to average net assets:
Net expenses		0.79	%		0.81	%		0.85	%		0.93	%		0.75	%
Gross expenses		0.79	%		0.81	%		0.85	%		1.28	%		2.27	%
Net investment income		0.36	%		0.79	%		1.16	%		1.94	%		1.59	%
Portfolio turnover rate		74	%		63	%		108	%		116	%		53	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of year	$	13.50		$	12.68		$	10.77		$	9.30		$	9.61
Income (loss) from investment operations:
Net investment income (a)		0.01			0.05			0.09			0.15			0.12
Net realized and unrealized gain (loss)		0.88			2.23			3.04			1.39			(0.29	)
Total from investment operations		0.89			2.28			3.13			1.54			(0.17	)
Less distributions from:
Net investment income		—	(b)		(0.03	)		(0.08	)		(0.07	)		(0.14	)
Net realized gains		(0.47	)		(1.43	)		(1.14	)		—			—
Total distributions		(0.47	)		(1.46	)		(1.22	)		(0.07	)		(0.14	)
Redemption fees		—	(b)		—	(b)		—			—	(b)		—	(b)
Net asset value, end of year	$	13.92		$	13.50		$	12.68		$	10.77		$	9.30
Total Return (c)		6.67	%		18.28	%		29.21	%		16.51	%		–1.77	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	114,348		$	8,011		$	2,181		$	691		$	312
Ratios to average net assets:
Net expenses		1.07	%		1.25	%		1.25	%		1.19	%		1.05	%
Gross expenses		1.07	%		1.46	%		1.87	%		4.84	%		6.49	%
Net investment income		0.08	%		0.37	%		0.74	%		1.51	%		1.30	%
Portfolio turnover rate		74	%		63	%		108	%		116	%		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.

74  Annual Report

LAZARD US STRATEGIC EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of year	$	12.43		$	12.49		$	10.11		$	9.03		$	8.97
Income (loss) from investment operations:
Net investment income (a)		0.09			0.14			0.14			0.14			0.12
Net realized and unrealized gain (loss)		(0.69	)		1.73			2.72			1.17			0.02
Total from investment operations		(0.60	)		1.87			2.86			1.31			0.14
Less distributions from:
Net investment income		(0.10	)		(0.13	)		(0.15	)		(0.23	)		(0.08	)
Net realized gains		(0.76	)		(1.80	)		(0.33	)		—			—
Total distributions		(0.86	)		(1.93	)		(0.48	)		(0.23	)		(0.08	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	10.97		$	12.43		$	12.49		$	10.11		$	9.03
Total Return (c)		–4.75	%		15.04	%		28.38	%		14.56	%		1.65	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	110,243		$	119,941		$	116,323		$	75,327		$	64,239
Ratios to average net assets:
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Gross expenses		0.90	%		0.90	%		0.93	%		0.99	%		1.00	%
Net investment income		0.77	%		1.05	%		1.21	%		1.40	%		1.29	%
Portfolio turnover rate		75	%		69	%		71	%		60	%		48	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of year	$	12.48		$	12.53		$	10.14		$	9.04		$	8.97
Income (loss) from investment operations:
Net investment income (a)		0.06			0.10			0.11			0.11			0.09
Net realized and unrealized gain (loss)		(0.71	)		1.74			2.73			1.16			0.03
Total from investment operations		(0.65	)		1.84			2.84			1.27			0.12
Less distributions from:
Net investment income		(0.06	)		(0.09	)		(0.12	)		(0.17	)		(0.05	)
Net realized gains		(0.76	)		(1.80	)		(0.33	)		—			—
Total distributions		(0.82	)		(1.89	)		(0.45	)		(0.17	)		(0.05	)
Net asset value, end of year	$	11.01		$	12.48		$	12.53		$	10.14		$	9.04
Total Return (c)		–5.11	%		14.77	%		28.04	%		14.10	%		1.42	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	1,536		$	6,833		$	7,650		$	8,401		$	8,478
Ratios to average net assets:
Net expenses		1.05	%		1.05	%		1.05	%		1.05	%		1.05	%
Gross expenses		1.51	%		1.31	%		1.33	%		1.37	%		1.36	%
Net investment income		0.50	%		0.75	%		0.95	%		1.10	%		0.99	%
Portfolio turnover rate		75	%		69	%		71	%		60	%		48	%

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

Annual Report  75

	Year			For the Period
Selected data for a share of capital	Ended			5/19/14*
stock outstanding throughout each period	12/31/15			to 12/31/14
Lazard US Strategic Equity Portfolio (concluded)
R6 Shares
Net asset value, beginning of period	$	12.43			$	12.81
Income (loss) from investment operations:
Net investment income (a)		0.10				0.09
Net realized and unrealized gain (loss)		(0.71	)			1.47
Total from investment operations		(0.61	)			1.56
Less distributions from:
Net investment income		(0.10	)			(0.14	)
Net realized gains		(0.76	)			(1.80	)
Total distributions		(0.86	)			(1.94	)
Redemption fees		—	(b)			—	(b)
Net asset value, end of period	$	10.96			$	12.43
Total Return (c)		–4.78	%			12.23	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	12,359			$	14,951
Ratios to average net assets (d):
Net expenses		0.70	%			0.70	%
Gross expenses		1.00	%			1.06	%
Net investment income		0.82	%			1.14	%
Portfolio turnover rate		75	%			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.

76  Annual Report 

LAZARD US MID CAP EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of year	$	18.87		$	16.58		$	12.52		$	11.87		$	12.61
Income (loss) from investment operations:
Net investment income (loss) (a)		(0.02	)		0.05			0.07			0.05			0.05
Net realized and unrealized gain (loss)		(0.54	)		2.33			4.04			0.63			(0.75	)
Total from investment operations		(0.56	)		2.38			4.11			0.68			(0.70	)
Less distributions from:
Net investment income		(0.07	)		(0.09	)		(0.05	)		(0.03	)		(0.04	)
Total distributions		(0.07	)		(0.09	)		(0.05	)		(0.03	)		(0.04	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	18.24		$	18.87		$	16.58		$	12.52		$	11.87
Total Return (c)		–2.97	%		14.35	%		32.95	%		5.76	%		–5.58	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	6,900		$	7,542		$	11,706		$	30,803		$	91,740
Ratios to average net assets:
Net expenses		1.05	%		1.05	%		1.05	%		0.98	%		0.93	%
Gross expenses		1.53	%		1.45	%		1.19	%		0.98	%		0.93	%
Net investment income (loss)		–0.10	%		0.29	%		0.46	%		0.40	%		0.37	%
Portfolio turnover rate		124	%		95	%		133	%		102	%		83	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of year	$	18.55		$	16.32		$	12.35		$	11.72		$	12.45
Income (loss) from investment operations:
Net investment income (loss) (a)		(0.08	)		0.01			0.02			0.03			0.01
Net realized and unrealized gain (loss)		(0.52	)		2.26			4.00			0.61			(0.74	)
Total from investment operations		(0.60	)		2.27			4.02			0.64			(0.73	)
Less distributions from:
Net investment income		(0.01	)		(0.04	)		(0.05	)		(0.01	)		—	(b)
Total distributions		(0.01	)		(0.04	)		(0.05	)		(0.01	)		—	(b)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	17.94		$	18.55		$	16.32		$	12.35		$	11.72
Total Return (c)		–3.24	%		13.94	%		32.59	%		5.44	%		–5.84	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	20,378		$	32,850		$	33,668		$	41,492		$	52,048
Ratios to average net assets:
Net expenses		1.35	%		1.35	%		1.35	%		1.26	%		1.19	%
Gross expenses		1.62	%		1.57	%		1.43	%		1.26	%		1.19	%
Net investment income (loss)		–0.40	%		0.05	%		0.16	%		0.21	%		0.11	%
Portfolio turnover rate		124	%		95	%		133	%		102	%		83	%

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

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

Annual Report  77

LAZARD US SMALL-MID CAP EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of year	$	14.05		$	15.97		$	13.29		$	11.82		$	14.55
Income (loss) from investment operations:
Net investment income (a)		0.02			0.03			0.01			0.05			0.01
Net realized and unrealized gain (loss)		(0.34	)		1.74			4.70			1.77			(1.45	)
Total from investment operations		(0.32	)		1.77			4.71			1.82			(1.44	)
Less distributions from:
Net investment income		—	(b)		(0.01	)		(0.01	)		(0.02	)		—
Net realized gains		(0.87	)		(3.68	)		(2.02	)		(0.33	)		(1.29	)
Total distributions		(0.87	)		(3.69	)		(2.03	)		(0.35	)		(1.29	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	12.86		$	14.05		$	15.97		$	13.29		$	11.82
Total Return (c)		–2.14	%		11.39	%		35.81	%		15.45	%		–9.83	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	171,152		$	157,742		$	353,565		$	289,855		$	167,042
Ratios to average net assets:
Net expenses		0.91	%		0.86	%		0.86	%		0.88	%		0.90	%
Gross expenses		0.91	%		0.86	%		0.86	%		0.88	%		0.90	%
Net investment income		0.13	%		0.17	%		0.06	%		0.41	%		0.08	%
Portfolio turnover rate		91	%		91	%		101	%		92	%		110	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of year	$	13.38		$	15.41		$	12.92		$	11.52		$	14.26
Income (loss) from investment operations:
Net investment income (loss) (a)		(0.02	)		(0.02	)		(0.04	)		—	(b)		(0.03	)
Net realized and unrealized gain (loss)		(0.33	)		1.67			4.56			1.73			(1.42	)
Total from investment operations		(0.35	)		1.65			4.52			1.73			(1.45	)
Less distributions from:
Net investment income		—	(b)		—			(0.01	)		—			—
Net realized gains		(0.87	)		(3.68	)		(2.02	)		(0.33	)		(1.29	)
Total distributions		(0.87	)		(3.68	)		(2.03	)		(0.33	)		(1.29	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	12.16		$	13.38		$	15.41		$	12.92		$	11.52
Total Return (c)		–2.47	%		11.01	%		35.47	%		14.97	%		–10.09	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	36,860		$	15,851		$	14,665		$	15,984		$	20,039
Ratios to average net assets:
Net expenses		1.20	%		1.20	%		1.20	%		1.21	%		1.21	%
Gross expenses		1.20	%		1.20	%		1.20	%		1.21	%		1.21	%
Net investment income (loss)		–0.13	%		–0.15	%		–0.27	%		0.01	%		–0.23	%
Portfolio turnover rate		91	%		91	%		101	%		92	%		110	%

(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.

78  Annual Report

LAZARD US SMALL CAP EQUITY GROWTH PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/15					Period Ended 12/31/14*
Institutional Shares
Net asset value, beginning of period		$	10.00				$	10.00
Income (loss) from investment operations:
Net investment loss (a)			(0.07	)				—	(b)
Net realized and unrealized gain (loss)			0.81					—	(b)
Total from investment operations			0.74					—	(b)
Less distributions from:
Net realized gains			(0.23	)				—
Total distributions			(0.23	)				—
Redemption fees			—	(b)				—
Net asset value, end of period		$	10.51				$	10.00
Total Return (c)			7.39	%				0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	8,435				$	950
Ratios to average net assets (d):
Net expenses			1.10	%				1.10	%
Gross expenses			3.79	%	346.85				%(e)
Net investment loss		–0.65		%				–1.10	%
Portfolio turnover rate			101	%				0	%
Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/15					Period Ended 12/31/14*
Open Shares
Net asset value, beginning of period		$	10.00				$	10.00
Income (loss) from investment operations:
Net investment loss (a)			(0.11	)				—	(b)
Net realized and unrealized gain (loss)			0.82					—	(b)
Total from investment operations			0.71					—	(b)
Less distributions from:
Net realized gains			(0.23	)				—
Total distributions			(0.23	)				—
Redemption fees			—	(b)				—
Net asset value, end of period		$	10.48				$	10.00
Total Return (c)			7.09	%				0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	4,974				$	50
Ratios to average net assets (d):
Net expenses			1.40	%				1.40	%
Gross expenses			4.11	%	346.82				%(e)
Net investment loss			–0.97	%				–1.40	%
Portfolio turnover rate			101	%				0	%

*	The Portfolio commenced operations on December 31, 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.
(e)	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.

Annual Report  79

LAZARD INTERNATIONAL EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of year	$	16.93		$	17.85		$	14.78		$	12.49		$	13.81
Income (loss) from investment operations:
Net investment income (a)		0.27			0.26			0.23			0.25			0.27
Net realized and unrealized gain (loss)		—			(1.02	)		2.85			2.56			(1.25	)
Total from investment operations		0.27			(0.76	)		3.08			2.81			(0.98	)
Less distributions from:
Net investment income		(0.12	)		(0.16	)		(0.01	)		(0.52	)		(0.34	)
Total distributions		(0.12	)		(0.16	)		(0.01	)		(0.52	)		(0.34	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	17.08		$	16.93		$	17.85		$	14.78		$	12.49
Total Return (c)		1.62	%		–4.29	%		20.84	%		22.70	%		–7.17	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	736,272		$	378,488		$	185,199		$	109,088		$	86,880
Ratios to average net assets:
Net expenses		0.86	%		0.90	%		0.95	%		1.02	%		1.03	%
Gross expenses		0.87	%		0.90	%		0.95	%		1.02	%		1.03	%
Net investment income		1.50	%		1.46	%		1.42	%		1.85	%		1.99	%
Portfolio turnover rate		30	%		36	%		43	%		48	%		39	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of year	$	17.07		$	18.00		$	14.94		$	12.59		$	13.91
Income (loss) from investment operations:
Net investment income (a)		0.23			0.27			0.19			0.21			0.24
Net realized and unrealized gain (loss)		—			(1.09	)		2.88			2.57			(1.26	)
Total from investment operations		0.23			(0.82	)		3.07			2.78			(1.02	)
Less distributions from:
Net investment income		(0.07	)		(0.11	)		(0.01	)		(0.43	)		(0.30	)
Total distributions		(0.07	)		(0.11	)		(0.01	)		(0.43	)		(0.30	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	17.23		$	17.07		$	18.00		$	14.94		$	12.59
Total Return (c)		1.36	%		–4.57	%		20.55	%		22.30	%		–7.42	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	80,221		$	57,350		$	42,370		$	25,610		$	18,699
Ratios to average net assets:
Net expenses		1.14	%		1.17	%		1.23	%		1.32	%		1.33	%
Gross expenses		1.14	%		1.17	%		1.23	%		1.32	%		1.33	%
Net investment income		1.29	%		1.49	%		1.18	%		1.49	%		1.78	%
Portfolio turnover rate		30	%		36	%		43	%		48	%		39	%

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

80  Annual Report

Selected data for a share of capital stock outstanding throughout the period	For the Period 4/1/15* to 12/31/15
Lazard International Equity Portfolio (concluded)
R6 Shares
Net asset value, beginning of period		$	17.94
Income (loss) from investment operations:
Net investment income (a)			0.21
Net realized and unrealized gain (loss)			(0.95	)
Total from investment operations			(0.74	)
Less distributions from:
Net investment income			(0.13	)
Total distributions			(0.13	)
Net asset value, end of period		$	17.07
Total Return (c)			–4.10	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	49,387
Ratios to average net assets (d):
Net expenses			0.80	%
Gross expenses			0.92	%
Net investment income			1.55	%
Portfolio turnover rate			30	%

*	The inception date for R6 Shares was April 1, 2015.
(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  81

LAZARD INTERNATIONAL EQUITY SELECT PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of year	$	9.24		$	9.76		$	8.51		$	7.18		$	7.99
Income (loss) from investment operations:
Net investment income (a)		0.12			0.15			0.12			0.12			0.13
Net realized and unrealized gain (loss)		(0.46	)		(0.58	)		1.15			1.43			(0.70	)
Total from investment operations		(0.34	)		(0.43	)		1.27			1.55			(0.57	)
Less distributions from:
Net investment income		(0.10	)		(0.11	)		(0.02	)		(0.22	)		(0.24	)
Total distributions		(0.10	)		(0.11	)		(0.02	)		(0.22	)		(0.24	)
Redemption fees		—	(b)		0.02			—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	8.80		$	9.24		$	9.76		$	8.51		$	7.18
Total Return (c)		–3.63	%		–4.29	%		14.93	%		21.59	%		–7.14	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	18,757		$	12,749		$	19,212		$	7,571		$	4,519
Ratios to average net assets:
Net expenses		1.06	%		1.15	%		1.15	%		1.15	%		1.15	%
Gross expenses		2.13	%		2.10	%		2.45	%		4.17	%		4.66	%
Net investment income		1.25	%		1.54	%		1.33	%		1.55	%		1.72	%
Portfolio turnover rate		51	%		80	%		36	%		46	%		55	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of year	$	9.25		$	9.79		$	8.57		$	7.20		$	8.02
Income (loss) from investment operations:
Net investment income (a)		0.11			0.11			0.10			0.12			0.11
Net realized and unrealized gain (loss)		(0.47	)		(0.57	)		1.14			1.42			(0.72	)
Total from investment operations		(0.36	)		(0.46	)		1.24			1.54			(0.61	)
Less distributions from:
Net investment income		(0.07	)		(0.08	)		(0.02	)		(0.17	)		(0.21	)
Total distributions		(0.07	)		(0.08	)		(0.02	)		(0.17	)		(0.21	)
Redemption fees		—			—	(b)		—			—	(b)		—
Net asset value, end of year	$	8.82		$	9.25		$	9.79		$	8.57		$	7.20
Total Return (c)		–3.85	%		–4.76	%		14.48	%		21.23	%		–7.41	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	2,184		$	3,048		$	3,444		$	2,888		$	2,463
Ratios to average net assets:
Net expenses		1.37	%		1.45	%		1.45	%		1.45	%		1.45	%
Gross expenses		2.75	%		2.70	%		3.03	%		4.77	%		5.12	%
Net investment income		1.15	%		1.11	%		1.08	%		1.55	%		1.43	%
Portfolio turnover rate		51	%		80	%		36	%		46	%		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. 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.

82  Annual Report

LAZARD INTERNATIONAL EQUITY CONCENTRATED PORTFOLIO

	Year				For the Period
Selected data for a share of capital	Ended				8/29/14*
stock outstanding throughout each period	12/31/15				to 12/31/14
Institutional Shares
Net asset value, beginning of period		$	9.53			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.10				(0.01	)
Net realized and unrealized loss			(1.25	)			(0.45	)
Total from investment operations			(1.15	)			(0.46	)
Less distributions from:
Net investment income			(0.11	)			(0.01	)
Net realized gains			—				—	(b)
Total distributions			(0.11	)			(0.01	)
Redemption fees			—	(b)			—
Net asset value, end of period		$	8.27			$	9.53
Total Return (c)			–12.06	%			–4.60	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	13,753			$	9,103
Ratios to average net assets (d):
Net expenses			1.06	%			1.15	%
Gross expenses			2.96	%			7.40	%
Net investment income (loss)			1.13	%			–0.41	%
Portfolio turnover rate			91	%			45	%
	Year				For the Period
Selected data for a share of capital	Ended				8/29/14*
stock outstanding throughout each period	12/31/15				to 12/31/14
Open Shares
Net asset value, beginning of period	$		9.53			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.06				(0.02	)
Net realized and unrealized loss			(1.22	)			(0.45	)
Total from investment operations			(1.16	)			(0.47	)
Less distributions from:
Net investment income			(0.08	)			—
Net realized gains			—				—	(b)
Total distributions			(0.08	)			—	(b)
Redemption fees			—	(b)			—
Net asset value, end of period	$		8.29			$	9.53
Total Return (c)			–12.18	%			–4.66	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$		55			$	559
Ratios to average net assets (d):
Net expenses			1.39	%			1.45	%
Gross expenses			9.93	%			12.39	%
Net investment income (loss)			0.60	%			–0.55	%
Portfolio turnover rate			91	%			45	%

*	The Portfolio commenced operations on August 29, 2014.
(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  83

LAZARD INTERNATIONAL STRATEGIC EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of year	$	13.72		$	14.46		$	11.71		$	9.46		$	10.63
Income (loss) from investment operations:
Net investment income (a)		0.16			0.19			0.14			0.15			0.16
Net realized and unrealized gain (loss)		(0.40	)		(0.39	)		2.79			2.21			(1.19	)
Total from investment operations		(0.24	)		(0.20	)		2.93			2.36			(1.03	)
Less distributions from:
Net investment income		(0.14	)		(0.16	)		(0.10	)		(0.11	)		(0.14	)
Net realized gains		(0.01	)		(0.38	)		(0.08	)		—			—
Total distributions		(0.15	)		(0.54	)		(0.18	)		(0.11	)		(0.14	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	13.33		$	13.72		$	14.46		$	11.71		$	9.46
Total Return (c)		–1.70	%		–1.48	%		25.02	%		25.00	%		–9.70	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	4,923,328		$	3,727,391		$	2,354,068		$	893,610		$	435,411
Ratios to average net assets:
Net expenses		0.82	%		0.84	%		0.86	%		0.86	%		0.88	%
Gross expenses		0.82	%		0.84	%		0.86	%		0.86	%		0.88	%
Net investment income		1.15	%		1.28	%		1.02	%		1.45	%		1.53	%
Portfolio turnover rate		37	%		33	%		42	%		52	%		53	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of year	$	13.82		$	14.57		$	11.80		$	9.53		$	10.68
Income (loss) from investment operations:
Net investment income (a)		0.13			0.16			0.10			0.09			0.13
Net realized and unrealized gain (loss)		(0.40	)		(0.41	)		2.82			2.26			(1.20	)
Total from investment operations		(0.27	)		(0.25	)		2.92			2.35			(1.07	)
Less distributions from:
Net investment income		(0.10	)		(0.12	)		(0.07	)		(0.08	)		(0.08	)
Net realized gains		(0.01	)		(0.38	)		(0.08	)		—			—
Total distributions		(0.11	)		(0.50	)		(0.15	)		(0.08	)		(0.08	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	13.44		$	13.82		$	14.57		$	11.80		$	9.53
Total Return (c)		–1.89	%		–1.78	%		24.73	%		24.74	%		–10.01	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	1,783,529		$	1,574,106		$	868,730		$	315,811		$	63,280
Ratios to average net assets:
Net expenses		1.08	%		1.09	%		1.10	%		1.13	%		1.16	%
Gross expenses		1.08	%		1.09	%		1.10	%		1.13	%		1.16	%
Net investment income		0.94	%		1.06	%		0.78	%		0.87	%		1.26	%
Portfolio turnover rate		37	%		33	%		42	%		52	%		53	%

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

84  Annual Report

	For the Period
Selected data for a share of capital	1/19/15*
stock outstanding throughout the period	to 12/31/15
Lazard International Strategic Equity Portfolio (concluded)
R6 Shares
Net asset value, beginning of period		$	13.70
Loss from investment operations:
Net investment loss (a)			(0.03	)
Net realized and unrealized loss			(0.21	)
Total from investment operations			(0.24	)
Less distributions from:
Net investment income			(0.11	)
Net realized gains			(0.01	)
Total distributions			(0.12	)
Net asset value, end of period		$	13.34
Total Return (c)			–1.73	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	72,362
Ratios to average net assets (d):
Net expenses			1.03	%
Gross expenses			1.09	%
Net investment loss			–0.22	%
Portfolio turnover rate			37	%

*	The inception date for R6 Shares was January 19, 2015.
(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 by BFDS; without such waiver 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  85

LAZARD INTERNATIONAL EQUITY ADVANTAGE PORTFOLIO

	For the Period
Selected data for a share of capital	5/29/15*
stock outstanding throughout the period	to 12/31/15
Institutional Shares
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.04
Net realized and unrealized loss			(0.70	)
Total from investment operations			(0.66	)
Less distributions from:
Net investment income			(0.13	)
Total distributions			(0.13	)
Net asset value, end of period		$	9.21
Total Return (b)			–6.63	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	1,797
Ratios to average net assets (c):
Net expenses			0.90	%
Gross expenses			14.93	%
Net investment income			0.77	%
Portfolio turnover rate			58	%

	For the Period
Selected data for a share of capital	5/29/15*
stock outstanding throughout the period	to 12/31/15
Open Shares
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.03
Net realized and unrealized loss			(0.71	)
Total from investment operations			(0.68	)
Less distributions from:
Net investment income			(0.11	)
Total distributions			(0.11	)
Net asset value, end of period		$	9.21
Total Return (b)			–6.80	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	93
Ratios to average net assets (c):
Net expenses			1.20	%
Gross expenses			30.10	%
Net investment income			0.47	%
Portfolio turnover rate			58	%

*	The Portfolio commenced operations on May 29, 2015.
(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
(c)	Annualized for a period of less than one year.

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

86  Annual Report

LAZARD INTERNATIONAL SMALL CAP EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of year	$	10.01		$	10.54		$	8.12		$	6.84		$	8.12
Income (loss) from investment operations:
Net investment income (a)		0.10			0.12			0.11			0.11			0.13
Net realized and unrealized gain (loss)		0.87			(0.40	)		2.34			1.40			(1.27	)
Total from investment operations		0.97			(0.28	)		2.45			1.51			(1.14	)
Less distributions from:
Net investment income		(0.08	)		(0.25	)		(0.03	)		(0.23	)		(0.14	)
Total distributions		(0.08	)		(0.25	)		(0.03	)		(0.23	)		(0.14	)
Redemption fees		—	(b)		—	(b)		—			—	(b)		—	(b)
Net asset value, end of year	$	10.90		$	10.01		$	10.54		$	8.12		$	6.84
Total Return (c)		9.71	%		–2.77	%		30.20	%		22.28	%		–14.11	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	51,828		$	46,329		$	51,508		$	45,360		$	38,879
Ratios to average net assets:
Net expenses		1.11	%		1.13	%		1.13	%		1.13	%		1.13	%
Gross expenses		1.11	%		1.15	%		1.19	%		1.18	%		1.17	%
Net investment income		0.91	%		1.13	%		1.15	%		1.40	%		1.65	%
Portfolio turnover rate		48	%		48	%		58	%		48	%		28	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of year	$	10.03		$	10.56		$	8.17		$	6.86		$	8.14
Income (loss) from investment operations:
Net investment income (a)		0.07			0.09			0.08			0.08			0.10
Net realized and unrealized gain (loss)		0.88			(0.40	)		2.34			1.41			(1.26	)
Total from investment operations		0.95			(0.31	)		2.42			1.49			(1.16	)
Less distributions from:
Net investment income		(0.05	)		(0.22	)		(0.03	)		(0.18	)		(0.12	)
Total distributions		(0.05	)		(0.22	)		(0.03	)		(0.18	)		(0.12	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	10.93		$	10.03		$	10.56		$	8.17		$	6.86
Total Return (c)		9.49	%		–3.05	%		29.65	%		21.96	%		–14.36	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	55,776		$	19,994		$	19,639		$	17,669		$	17,744
Ratios to average net assets:
Net expenses		1.38	%		1.43	%		1.43	%		1.43	%		1.43	%
Gross expenses		1.38	%		1.44	%		1.48	%		1.48	%		1.46	%
Net investment income		0.63	%		0.85	%		0.85	%		1.08	%		1.34	%
Portfolio turnover rate		48	%		48	%		58	%		48	%		28	%

(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  87

LAZARD GLOBAL EQUITY SELECT PORTFOLIO

							Period
Selected data for a share of capital	Year Ended						Ended
stock outstanding throughout each period	12/31/15			12/31/14			12/31/13*
Institutional Shares
Net asset value, beginning of period	$	10.32		$	10.02		$	10.00
Income from investment operations:
Net investment income (a)		0.04			0.07			—
Net realized and unrealized gain		0.01			0.29			0.02
Total from investment operations		0.05			0.36			0.02
Less distributions from:
Net investment income		(0.04	)		(0.06	)		—
Total distributions		(0.04	)		(0.06	)		—
Redemption fees		—	(b)		—	(b)		—
Net asset value, end of period	$	10.33		$	10.32		$	10.02
Total Return (c)		0.46	%		3.84	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	20,624		$	12,266		$	1,903
Ratios to average net assets (d):
Net expenses		1.10	%		1.10	%		0.00	%
Gross expenses		2.27	%		4.62	%		91.25	%(e)
Net investment income		0.41	%		0.64	%		0.00	%
Portfolio turnover rate		55	%		64	%		0	%
							Period
Selected data for a share of capital	Year Ended						Ended
stock outstanding throughout each period	12/31/15			12/31/14			12/31/13*
Open Shares
Net asset value, beginning of period	$	10.32		$	10.01		$	10.00
Income from investment operations:
Net investment income (a)		0.01			0.04			—
Net realized and unrealized gain		0.02			0.30			0.01
Total from investment operations		0.03			0.34			0.01
Less distributions from:
Net investment income		(0.01	)		(0.03	)		—
Total distributions		(0.01	)		(0.03	)		—
Net asset value, end of period	$	10.34		$	10.32		$	10.01
Total Return (c)		0.24	%		3.54	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	290		$	201		$	100
Ratios to average net assets (d):
Net expenses		1.40	%		1.40	%		0.00	%
Gross expenses		7.42	%		13.34	%		91.25	%(e)
Net investment income		0.09	%		0.35	%		0.00	%
Portfolio turnover rate		55	%		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. A period of less than one year is not annualized.
(d)	Annualized for a period of less than one year.
(e)	Gross expense ratio was the result of the Portfolio being in existence for one day during the period ended December 31, 2013.

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

88  Annual Report

LAZARD GLOBAL STRATEGIC EQUITY PORTFOLIO

	Year				For the Period
Selected data for a share of capital	Ended				8/29/14*
stock outstanding throughout each period	12/31/15				to 12/31/14
Institutional Shares
Net asset value, beginning of period		$	9.94			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.06				—	(b)
Net realized and unrealized loss			(0.25	)			(0.04	)
Total from investment operations			(0.19	)			(0.04	)
Less distributions from:
Net investment income			(0.08	)			(0.02	)
Return of capital			—				—	(b)
Total distributions			(0.08	)			(0.02	)
Net asset value, end of period		$	9.67			$	9.94
Total Return (c)			–1.85	%			–0.36	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	9,254			$	7,112
Ratios to average net assets (d):
Net expenses			1.10	%			1.10	%
Gross expenses			3.83	%			7.11	%
Net investment income (loss)			0.63	%			–0.08	%
Portfolio turnover rate			65	%			24	%
	Year				For the Period
Selected data for a share of capital	Ended				8/29/14*
stock outstanding throughout each period	12/31/15				to 12/31/14
Open Shares
Net asset value, beginning of period		$	9.94			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.03				(0.01	)
Net realized and unrealized loss			(0.25	)			(0.04	)
Total from investment operations			(0.22	)			(0.05	)
Less distributions from:
Net investment income			(0.05	)			(0.01	)
Return of capital			—				—	(b)
Total distributions			(0.05	)			(0.01	)
Net asset value, end of period		$	9.67			$	9.94
Total Return (c)			–2.16	%			–0.46	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	114			$	135
Ratios to average net assets (d):
Net expenses			1.40	%			1.40	%
Gross expenses			14.12	%			24.52	%
Net investment income (loss)			0.30	%			-0.32	%
Portfolio turnover rate			65	%			24	%

*	The Portfolio commenced operations on August 29, 2014.
(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  89

LAZARD MANAGED EQUITY VOLATILITY PORTFOLIO

	For the Period
Selected data for a share of capital	5/29/15*
stock outstanding throughout the period	to 12/31/15
Institutional Shares
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.09
Net realized and unrealized loss			(0.33	)
Total from investment operations			(0.24	)
Less distributions from:
Net investment income			(0.17	)
Total distributions			(0.17	)
Net asset value, end of period		$	9.59
Total Return (b)			–2.42	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	2,206
Ratios to average net assets (c):
Net expenses			0.75	%
Gross expenses			13.51	%
Net investment income			1.64	%
Portfolio turnover rate			56	%
	For the Period
Selected data for a share of capital	5/29/15*
stock outstanding throughout the period	to 12/31/15
Open Shares
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.08
Net realized and unrealized loss			(0.34	)
Total from investment operations			(0.26	)
Less distributions from:
Net investment income			(0.15	)
Total distributions			(0.15	)
Net asset value, end of period		$	9.59
Total Return (b)			–2.60	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	175
Ratios to average net assets (c):
Net expenses			1.05	%
Gross expenses			23.94	%
Net investment income			1.33	%
Portfolio turnover rate			56	%

*	The Portfolio commenced operations on May 29, 2015.
(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
(c)	Annualized for a period of less than one year.

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

90  Annual Report

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2015

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 “1940 Act”), as an open-end management investment company. The Fund is comprised of thirty-five no-load portfolios (each referred to as a “Portfolio”), as follows: Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard US Small Cap Equity Growth Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Equity Concentrated Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Equity Advantage Portfolio (commenced investment operations on May 29, 2015), Lazard International Small Cap Equity Portfolio, Lazard Global Equity Select Portfolio, Lazard Global Strategic Equity Portfolio, Lazard Managed Equity Volatility Portfolio (commenced investment operations on May 29, 2015), Lazard Emerging Markets Equity Portfolio, Lazard Emerging Markets Core Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Advantage Portfolio (commenced investment operations on May 29, 2015), Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi Asset Portfolio, Lazard Emerging Markets Debt Portfolio, Lazard Explorer Total Return Portfolio, Lazard Emerging Markets Income Portfolio, Lazard US Corporate Income Portfolio, Lazard US Short Duration Fixed Income Portfolio, Lazard Global Fixed Income Portfolio, Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard Capital Allocator Opportunistic Strategies Portfolio, Lazard Global Dynamic Multi Asset Portfolio, Lazard Enhanced Opportunities Portfolio, Lazard Fundamental Long/Short Portfolio, and Lazard Master Alternatives Portfolio. All Portfolios, other than US Equity Concentrated, International Equity Concentrated, Emerging Markets Debt, Explorer Total Return, Emerging Markets Income, US Realty Equity, Global Realty Equity, Enhanced Opportunities and Fundamental Long/Short Portfolios, are operated as “diversified” funds, as defined in the 1940 Act. Global Dynamic

Multi Asset Portfolio had not commenced operations as of December 31, 2015. This report includes only the financial statements of US Equity Concentrated, US Strategic Equity, US Mid Cap Equity, US Small-Mid Cap Equity, US Small Cap Equity Growth, International Equity, International Equity Select, International Equity Concentrated, International Strategic Equity, International Equity Advantage, International Small Cap Equity, Global Equity Select, Global Strategic Equity and Managed Equity Volatility Portfolios. The financial statements of other Portfolios are presented separately.

Effective November 29, 2013, an R6 Share class was classified for each Portfolio. 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, 2015, 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 US Strategic Equity, International Equity, International Strategic Equity and Emerging Markets Equity Portfolios had issued R6 Shares.

2. Significant Accounting Policies

The accompanying financial statements are presented in conformity with GAAP. The Fund is an investment company and therefore applies specialized accounting guidance in Accounting Standards Codification Topic 946. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements:

(a) Valuation of Investments—Net asset value (“NAV”) per share for each class of each Portfolio is determined on each day the New York Stock Exchange (“NYSE”) is open for business, generally as of the close of regular session trading on the NYSE (normally 4:00 p.m. Eastern time, the “Regular Closing Time”). When trading on the NYSE is unexpectedly closed prior to the Regu-

Annual Report  91

lar Closing Time, or an earlier scheduled close (such as on certain days around holidays when the NYSE is scheduled to close before 4:00 p.m.), and remains closed through the time of the Regular Closing Time (or an earlier scheduled close), the NAV of each class of each Portfolio may nonetheless be calculated as of the Regular Closing Time (or an earlier scheduled close) if, in the judgment of the Investment Manager, there is sufficient trading in other markets between the unexpected close and the Regular Closing Time (or an earlier scheduled close) for securities for which the NYSE is usually considered the primary market. NAV per share is determined by dividing the value of the total assets of the Portfolio represented by such class, less all liabilities, by the total number of Portfolio shares of such class outstanding.

Market values for securities listed on the NYSE, NAS-DAQ 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 on each valuation date; securities not traded on the valuation date are valued at the most recent quoted bid price. The Fund values NASDAQ-traded securities at the NASDAQ Official Closing Price, which may not be the last reported sales price in certain instances. Investments in money market funds are valued at the fund’s NAV. Repurchase agreements are valued at the principal amounts plus accrued interest.

The Valuation Committee of the Investment Manager, which meets periodically 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.

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 except for certain dividends from foreign securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Portfolio. 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.

92  Annual Report

As a result of several court cases in certain countries across the European Union, the International Equity, International Strategic Equity and International Small Cap Equity Portfolios have filed additional tax reclaims for previously withheld taxes on dividends earned in those countries. These additional filings are subject to various administrative proceedings by the local jurisdictions’ tax authorities within the European Union, as well as a number of related judicial proceedings. Uncertainty exists as to the ultimate resolution of these proceedings, the likelihood of receipt of these claims, and the potential timing of payment, and accordingly no amounts are reflected in the financial statements. Such amounts, if and when recorded, could result in an increase in the Portfolios’ NAV per share.

(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, 2015, the US Small-Mid Cap Equity and International Equity Portfolios had investments in repurchase agreements with a value of $2,844,000 and $49,814,000, respectively, as shown on the Portfolios of Investments. The value of the related collateral exceeded the value of the repurchase agreements at year end.

(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, 2015, 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:

Annual Report  93

Portfolio	Expiring 2016		Expiring 2017
US Mid Cap Equity	$	—		$38,539,129
International Equity		—		8,988,349
International Equity Select		—		38,626
International Small Cap Equity		7,705,878		50,821,243
Portfolio				Expiring 2018
International Equity				$5,103,235
International Equity Select				1,173,332
International Small Cap Equity				4,306,477
Portfolio		Short-Term*		Long-Term*
International Equity Select		$   236,511		$       —
International Equity Concentrated		1,021,100		6,493
International Equity Advantage		64,999		—
Global Equity Select		185,741		—
Global Strategic Equity		284,392		14,818
Managed Equity Volatility		62,438		—

* Non-Expiring

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, 2015, the following Portfolios elected to defer such losses as follows:

Portfolio	Post October Capital Loss Deferral		Late Year Ordinary Loss Deferral
US Equity Concentrated	$	1,925,851		$	—
US Small Cap Equity Growth		91,827			—
International Equity Select		155,480			—
International Strategic Equity		13,125,326			854,313

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 (2012-2014), or expected to be taken in the Portfolios’ 2015 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. Differences in per

share distributions, by class, are generally due to differences in class specific expenses.

Income 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, non-deductible 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:

Portfolio	Paid in Capital			Undistributed (Distributions in Excess of) Net Investment Income			Accumulated Net Realized Gain (Loss)
US Equity Concentrated	$	—		$	1,830		$	(1,830	)
US Strategic Equity		—			(759	)		759
US Mid Cap Equity		(123,458	)		120,515			2,943
US Small-Mid Cap Equity		13,127			(164,121	)		150,994
US Small Cap Equity Growth		(1,383	)		(3,036	)		4,419
International Equity		—			(18,948	)		18,948
International Equity Select		—			25,003			(25,003	)
International Equity Concentrated		(101	)		21,760			(21,659	)
International Strategic Equity		(483,572	)		(3,278,110	)		3,761,682
International Equity Advantage		(1,703	)		1,738			(35	)
International Small Cap Equity		(2,700	)		278,894			(276,194	)
Global Equity Select		(2,103	)		(1,806	)		3,909
Global Strategic Equity		(135	)		(3,030	)		3,165
Managed Equity Volatility		(1,787	)		2,453			(666	)

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2015		2014		2015		2014
US Equity Concentrated	$	3,972,198	$	17,181,293	$	25,113,579	$	16,923,820
US Strategic Equity		1,179,141		3,927,863		8,275,867		15,406,605
US Mid Cap Equity		39,019		106,710		—		—
US Small-Mid Cap Equity		818,333		20,788,112		12,982,923		43,421,932
US Small Cap Equity Growth		287,790		N/A		—		N/A
International Equity		4,655,674		2,302,473		—		—

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	Ordinary Income				Long-Term Capital Gain
Portfolio	2015		2014		2015		2014
International Equity Select	$	269,062	$	197,867	$	—	$	—
International Equity Concentrated		182,516		9,420		—		—
International Strategic Equity		65,762,209		53,270,614		6,978,994		137,196,279
International Equity Advantage		25,003		N/A		—		N/A
International Small Cap Equity		574,424		1,597,906		—		—
Global Equity Select		72,147		76,387		—		—
Global Strategic Equity*		81,147		13,045		—		—
Managed Equity Volatility		39,055		N/A		—		N/A

* Global Strategic Equity Portfolio had return of capital distributions of $2,677 in 2014.

At December 31, 2015, 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	$	—		$	2,635,435		$	54,569,278
US Strategic Equity		203,952			2,471,679			1,860,391
US Mid Cap Equity		—			(38,539,129	)		(62,161	)
US Small-Mid Cap Equity		234,492			3,580,577			960,771
US Small Cap Equity Growth		—			(91,827	)		200,629
International Equity		8,967,356			(14,091,584	)		(9,423,736	)
International Equity Select		288,661			(1,603,949	)		(1,821,484	)
International Equity Concentrated		22,532			(1,027,593	)		(1,515,413	)
International Strategic Equity		(854,313	)		(13,125,326	)		15,894,987
International Equity Advantage		7,487			(64,999	)		(98,502	)
International Small Cap Equity		1,216,677			(62,833,598	)		12,483,378
Global Equity Select		—			(185,741	)		546,347
Global Strategic Equity		1,408			(299,210	)		25,740
Managed Equity Volatility		7,545			(62,438	)		(34,771	)

(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.

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

The Fund, on behalf of the Portfolios, has entered into a 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 objectives and policies, including the purchase, retention and disposition of securities. For its services provided to the Portfolios, the Investment Manager earns a management fee, accrued daily as a percentage of its average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:

Portfolio	Annual Rate
US Equity Concentrated		0.70	%
US Strategic Equity		0.70
US Mid Cap Equity		0.75
US Small-Mid Cap Equity		0.75
US Small Cap Equity Growth		0.90
International Equity		0.75
International Equity Select (a)		0.75
International Equity Concentrated		0.90
International Strategic Equity		0.75
International Equity Advantage		0.65
International Small Cap Equity		0.75
Global Equity Select		0.85
Global Strategic Equity		0.85
Managed Equity Volatility		0.60

(a) From January 1, 2015 to February 28, 2015, percentage was 0.85%.

The Investment Manager has voluntarily agreed, through May 1 of the year shown below, to reduce its fees and, if necessary, reimburse the Portfolios if annualized operating expenses (exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Funds” and extraordinary expenses, and excluding shareholder redemption fees or other transaction fees) exceed the following percentages of average daily net assets for the respective shares:

Portfolio	Institutional Shares			Open Shares			R6 Shares		Year
US Equity Concentrated		0.95	%		1.25	%		N/A		2016	(a)

US Strategic Equity	0.75		1.05		0.70	%	2016
US Mid Cap Equity	1.05		1.35		N/A		2016
US Small-Mid Cap Equity	1.15		1.45		N/A		2016
US Small Cap Equity Growth	1.10		1.40		N/A		2016	(b)
International Equity	0.85		1.15		0.80		2016	(c)
International Equity Select	1.05		1.35		N/A		2016	(d)
International Equity Concentrated	1.05		1.35		N/A		2016	(e)
International Strategic Equity	1.15		1.45		1.10		2016
International Equity Advantage	0.90	%	1.20	%	N/A		2017	(f)
International Small Cap Equity	1.13		1.43		N/A		2016
Global Equity Select	1.10		1.40		N/A		2016
Global Strategic Equity	1.10		1.40		N/A		2016	(g)
Managed Equity Volatility	0.75		1.05		N/A		2017	(f)

(a)	Agreement extends, for May 2, 2016 through May 1, 2025, at levels of 1.10% and 1.40%, respectively.
(b)	Agreement is through December 31, 2016.
(c)	From January 1, 2015 to February 28, 2015, percentages were 1.05% and 1.35% for the Institutional Shares and Open Shares, respectively.
(d)	From January 1, 2015 to February 28, 2015, percentages were 1.15% and 1.45%, respectively. Agreement extends, for May 2, 2016 through May 1, 2025, at levels of 1.15% and 1.45%, respectively.
(e)	From January 1, 2015 to February 28, 2015, percentages were 1.15% and 1.45%, respectively. Agreement is through August 29, 2016.
(f)	Agreement is through May 29, 2017.
(g)	Agreement is through August 29, 2016.

During the year ended December 31, 2015, 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 Strategic Equity	$	181,829	$	—	$	16,116	$	—
US Mid Cap Equity		35,089		—		76,667		—
US Small Cap Equity Growth		62,158		106,020		38,067		63,380
International Equity		80,091		—		—		—
International Equity Select		139,870		56,460		22,734		18,302
International Equity Concentrated		116,971		109,466		1,862		13,471
International Equity Advantage		6,894		125,400		362		9,083

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Global Equity Select	143,163	35,707	2,214	13,190
Global Strategic Equity	78,263	152,168	1,110	13,199
Managed Equity Volatility	7,385	133,326	496	11,645

	R6 Shares
Portfolio	Management Fees Waived
US Strategic Equity	$	41,152
International Equity		32,781

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 year ended December 31, 2015, State Street waived its fees as follows:

Portfolio	Amount
US Small Cap Equity Growth		$18,750
International Equity Concentrated		18,750
International Equity Advantage		10,938
Global Equity Select		18,750
Global Strategic Equity		18,750
Managed Equity Volatility		10,938

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 1940 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 year ended December 31, 2015, BFDS waived its fees as follows:

Portfolio	Amount
US Small Cap Equity Growth	$	12,191
International Equity		6,119
International Equity Concentrated		4,062
International Strategic Equity		6,132
International Equity Advantage		12,226
Global Strategic Equity		4,069
Managed Equity Volatility		12,226

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2015, each Director who is not an affiliated person of the Investment Manager or any of its affiliates was 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 Fund Complex”), each a registered management investment company advised by the Investment Manager, and Lazard Alternative Emerging Markets 1099 Fund, a closed-end registered management investment company advised by an affiliate of the Investment Manager: (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. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Directors’ fees were allocated among the funds in the Lazard Fund Complex and Lazard Alternative Emerging Markets 1099 Fund at a rate of $5,000 per fund with the remainder allocated based upon each fund’s proportionate share of combined net assets. The Statements of

Annual Report  97

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, 2015 were as follows:

Portfolio	Purchases		Sales
US Equity Concentrated	$	829,801,852	$	380,936,458
US Strategic Equity		98,998,014		109,827,180
US Mid Cap Equity		40,213,146		50,430,521
US Small-Mid Cap Equity		222,869,080		177,117,608
US Small Cap Equity Growth		21,653,643		9,833,759
International Equity		586,498,389		174,293,023
International Equity Select		16,849,569		10,200,366
International Equity Concentrated		17,130,136		11,450,159
International Strategic Equity		4,037,262,371		2,233,456,450
International Equity Advantage		2,989,092		957,111
International Small Cap Equity		74,913,882		43,067,017
Global Equity Select		17,186,613		9,033,718
Global Strategic Equity		8,369,005		5,814,656
Managed Equity Volatility		3,515,583		1,092,739

For the year ended December 31, 2015, 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.

At December 31, 2015, the Investment Manager owned 98.81%, 33.93% and 81.94% of the outstanding shares of International Equity Advantage Portfolio, Global Strategic Equity Portfolio and Managed Equity Volatility Portfolio, respectively.

6. Line of Credit

The Fund has a $50 million Line of Credit Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings was payable: from January 1, 2015 to June 28, 2015, at the higher of the Federal Funds rate or Over-night LIBOR rate plus 1.00%, and from June 29, 2015 to December 31, 2015, at the higher of the Federal Funds rate or One-Month LIBOR rate plus 1.00%, on an annualized basis. Under the Agreement, the Fund has agreed

to pay a 0.10% per annum fee from January 1, 2015 to June 28, 2015 and 0.20% per annum from June 29, 2015 to December 31, 2015 on the unused portion of the commitment, payable quarterly in arrears. The Fund has also agreed to pay an upfront fee of 0.05% of the committed line amount. During the year ended December 31, 2015, 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	$	1,134,333	$	1,381,000		1.43	%		3
US Small Cap Equity Growth		269,857		552,000		1.42			7
International Equity Select		1,323,333		3,500,000		1.19			6
International Equity Concentrated		323,000		800,000		1.37			7
International Equity Advantage		2,000		2,000		1.40			1
International Small Cap Equity		234,286		1,100,000		1.21			7
Global Equity Select		250,000		250,000		1.13			1
Global Strategic Equity		28,063		65,000		1.25			8
Managed Equity Volatility		25,000		25,000		1.23			1

* 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, 2015 is categorized as Level 2 (see Note 9).

7. 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

98  Annual Report

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. The Portfolios’ investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies. 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 economies of countries with emerging markets may be based predominantly on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme debt burdens or volatile inflation rates. The securities markets of emerging market countries have historically been extremely volatile. These market conditions may continue or worsen. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies. 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.

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  99

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2015:

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, 2015
US Equity Concentrated Portfolio
Common Stocks*	$	763,401,966	$	—	$	—	$	763,401,966
Short-Term Investment		64,490,571		—		—		64,490,571
Total	$	827,892,537	$	—	$	—	$	827,892,537
US Strategic Equity Portfolio
Common Stocks*	$	119,599,228	$	—	$	—	$	119,599,228
Total	$	119,599,228	$	—	$	—	$	119,599,228
US Mid Cap Equity Portfolio
Common Stocks*	$	27,606,574	$	—	$	—	$	27,606,574
Short-Term Investment		2,827,813		—		—		2,827,813
Total	$	30,434,387	$	—	$	—	$	30,434,387
US Small-Mid Cap Equity Portfolio
Common Stocks*	$	204,163,769	$	—	$	—	$	204,163,769
Repurchase Agreement		—		2,844,000		—		2,844,000
Total	$	204,163,769	$	2,844,000	$	—	$	207,007,769
US Small Cap Equity Growth Portfolio
Common Stocks*	$	13,278,727	$	—	$	—	$	13,278,727
Short-Term Investment		142,061		—		—		142,061
Total	$	13,420,788	$	—	$	—	$	13,420,788
International Equity Portfolio
Common Stocks*
United Kingdom	$	12,410,083	$	192,872,291	$	—	$	205,282,374
Other		68,656,947		539,797,780		—		608,454,727
Repurchase Agreement		—		49,814,000		—		49,814,000
Total	$	81,067,030	$	782,484,071	$	—	$	863,551,101
International Equity Select Portfolio
Common Stocks*
United Kingdom	$	295,072	$	5,044,403	$	—	$	5,339,475
Other		1,870,920		12,936,632		—		14,807,552
Short-Term Investment		744,738		—		—		744,738
Total	$	2,910,730	$	17,981,035	$	—	$	20,891,765
International Equity Concentrated Portfolio
Common Stocks*
United Kingdom	$	433,018	$	2,289,751	$	—	$	2,722,769
Other		1,492,447		8,465,577		—		9,958,024
Short-Term Investment		445,096		—		—		445,096
Total	$	2,370,561	$	10,755,328	$	—	$	13,125,889
International Strategic Equity Portfolio
Common Stocks*
United Kingdom	$	135,277,603	$	1,389,433,903	$	—	$	1,524,711,506
Other		330,377,761		4,781,184,429		—		5,111,562,190
Short-Term Investment		121,521,423		—		—		121,521,423
Total	$	587,176,787	$	6,170,618,332	$	—	$	6,757,795,119

100  Annual Report

Description	Unadjusted Quoted Prices in Active Markets for Identical Investments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2015
International Equity Advantage Portfolio
Common Stocks*
Ireland	$	23,219	$	2,636	$	—	$	25,855
Netherlands		2,767		65,281		—		68,048
Other		—		1,796,728		—		1,796,728
Short-Term Investment		48,965		—		—		48,965
Total	$	74,951	$	1,864,645	$	—	$	1,939,596
International Small Cap Equity Portfolio
Common Stocks*
Netherlands	$	717,670	$	1,305,489	$	—	$	2,023,159
United Kingdom		1,131,375		15,460,224		—		16,591,599
Other		8,273,068		76,132,415		—		84,405,483
Short-Term Investment		4,071,063		—		—		4,071,063
Total	$	14,193,176	$	92,898,128	$	—	$	107,091,304
Global Equity Select Portfolio
Common Stocks*
Netherlands	$	195,460	$	240,236	$	—	$	435,696
Russia		12,589		108,013		—		120,602
United Kingdom		267,870		2,504,847		—		2,772,717
Other		11,006,877		5,551,597		—		16,558,474
Short-Term Investment		928,246		—		—		928,246
Total	$	12,411,042	$	8,404,693	$	—	$	20,815,735
Global Strategic Equity Portfolio
Common Stocks*
United Kingdom	$	176,859	$	1,599,473	$	—	$	1,776,332
Other		4,673,037		2,798,379		—		7,471,416
Short-Term Investment		144,970		—		—		144,970
Total	$	4,994,866	$	4,397,852	$	—	$	9,392,718
Managed Equity Volatility Portfolio
Common Stocks*
Ireland	$	21,942	$	11,485	$	—	$	33,427
United Kingdom		7,100		165,718		—		172,818
Other		1,300,303		839,181		—		2,139,484
Right*		—		14		—		14
Short-Term Investment		86,664		—		—		86,664
Total	$	1,416,009	$	1,016,398	$	—	$	2,432,407

* Please refer to Portfolios of Investments (page 30 through 56) and Notes to Portfolios of Investments (page 58 through 59) for portfolio holdings by country and industry.

The security to which footnote (c) in the Notes to Portfolios of Investments applies is included in Level 2 and was valued based on reference to a similar security 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 Select, International Equity Concentrated, International Strategic Equity, International Equity Advantage, International Small Cap Equity, Global Equity Select, Global Strategic Equity and Managed Equity Volatility 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

Annual Report  101

are no longer met. Accordingly, a significant portion of the Portfolios’ investments are categorized as Level 2 investments. 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, 2015.

For further information regarding security characteristics see Portfolios of Investments.

10. Subsequent Events

Management has evaluated subsequent events affecting the Fund through the issuance of the financial statements and has determined that except for the following that there were no subsequent events that required adjustment or disclosure.

Subsequent to December 31, 2015, the Board of the Fund approved the liquidation of US Small Cap Equity Growth Portfolio. A liquidation payment of US Small Cap Equity Growth Portfolio’s net assets was paid to all remaining shareholders on February 19, 2016.

102  Annual Report

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

To the Board of Directors of The Lazard Funds, Inc. and the Shareholders of Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard US Small Cap Equity Growth Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Equity Concentrated Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Equity Advantage Portfolio, Lazard International Small Cap Equity Portfolio, Lazard Global Equity Select Portfolio, Lazard Global Strategic Equity Portfolio and Lazard Managed Equity Volatility Portfolio:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard US Small Cap Equity Growth Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Equity Concentrated Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Equity Advantage Portfolio, Lazard International Small Cap Equity Portfolio, Lazard Global Equity Select Portfolio, Lazard Global Strategic Equity Portfolio and Lazard Managed Equity Volatility Portfolio (collectively the “Portfolios”), fourteen of the portfolios constituting The Lazard Funds, Inc. (the “Funds”) as of December 31, 2015, and the related statements of operations for the period then ended, and the statements of changes in net assets and the financial highlights for the periods ended December 31, 2015 and December 31, 2014, where presented. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the periods presented on or before December 31, 2013 were audited by other auditors whose report, dated February 28, 2014, expressed an unqualified opinion on those financial highlights.

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 Portfolios are not required to have, nor were we engaged to perform, an audit of their 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 Portfolios’ 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, 2015, 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 US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard US Small Cap Equity Growth Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Equity Concentrated Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Equity Advantage Portfolio, Lazard International Small Cap Equity Portfolio, Lazard Global Equity Select Portfolio, Lazard Global Strategic Equity Portfolio, Lazard Managed Equity Volatility Portfolio of The Lazard Funds, Inc. as of December 31, 2015, the results of their operations for the period then ended, and the changes in their net assets and the financial highlights for the periods ended December 31, 2015 and December 31, 2014 where presented, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

New York, New York

February 29, 2016

Annual Report  103

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 (62)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012)
		Cornell Law School, Visiting Professor of Practice (2015 – present); previously, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)
Kenneth S. Davidson (70)	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 (53)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
		TIAA-CREF Funds (65 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 (44)	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)
Richard Reiss, Jr. (71)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		Resource Americas, Inc., a real estate management company, Director (2016 – present)
		O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (68)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

104  Annual Report

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)
Interested Directors(4):
Charles L. Carroll (55)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (55)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present)
		Lazard Ltd, Vice Chairman and Director (2010 – present)

(1)	The address of each Director of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each Director serves as a Director for each of the funds in the Lazard Fund Complex (comprised of, as of January 31, 2016, 41 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 funds in the Lazard Fund Complex.
(3)	“Independent Directors” are not “interested persons” (as defined in the 1940 Act) of the Fund.
(4)	Messrs. Bhutani and Carroll are “interested persons” (as defined in the 1940 Act) of the Fund because of their positions with the Investment Manager.

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

Annual Report  105

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 (43)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Stephen St. Clair (57)	Treasurer (May 2003)	Vice President of the Investment Manager
Mark R. Anderson (45)	Chief Compliance Officer (September 2014)	Director and Chief Compliance Officer 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 (40)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) and Director of Legal Affairs (since July 2015) of the Investment Manager
Shari L. Soloway (34)	Assistant Secretary (November 2015)	Senior Vice President, Legal and Compliance, of the Investment Manager (since September 2015)
		Vice President and Associate General Counsel of GE Asset Management (July 2011 – September 2015)
		Associate at Clifford Chance US LLP (2006 – July 2011)
Cesar A. Trelles (41)	Assistant Treasurer (December 2004)	Vice President of the Investment Manager

(1)	The address of each officer of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each officer serves for an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation or removal. Each officer serves in the same capacity for the other funds in the Lazard Fund Complex.
(3)	In addition to Charles L. Carroll, President, whose information is included in the Interested Directors section.

106  Annual Report

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

Tax Information

Year Ended December 31, 2015

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2015:

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

Portfolio	Percentage
US Equity Concentrated		100.00	%
US Strategic Equity		94.28
US Mid Cap Equity		100.00
US Small-Mid Cap Equity		0.03
US Small Cap Equity Growth		15.36
International Equity		100.00
International Equity Select		—
International Equity Concentrated		93.05
International Strategic Equity		100.00
International Equity Advantage		68.18
International Small Cap Equity		100.00
Global Equity Select		100.00
Global Strategic Equity		100.00
Managed Equity Volatility		66.91

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

Portfolio	Percentage
US Equity Concentrated		100.00	%
US Strategic Equity		97.10
US Mid Cap Equity		99.96
US Small-Mid Cap Equity		10.89
US Small Cap Equity Growth		15.40
International Equity		—
International Equity Select		—
International Equity Concentrated		—
International Strategic Equity		—
International Equity Advantage		—
International Small Cap Equity		—
Global Equity Select		100.00
Global Strategic Equity		46.95
Managed Equity Volatility		23.20

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

Proxy Voting

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

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

Form N-Q

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

Annual Report  107

NOTES

NOTES

NOTES

The Lazard Funds, Inc.

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

Investment Manager

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

Distributor

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

Custodian

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

Transfer Agent and Dividend Disbursing Agent

Boston Financial Data Services, Inc.
P.O. Box 8514
Boston, Massachusetts 02266-8514
Telephone: 800-986-3455

Independent Registered Public Accounting Firm

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

Legal Counsel

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

 

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

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

LZDPS020  

Lazard Funds Annual Report

December 31, 2015

Fixed Income Funds

Lazard US Corporate Income Portfolio

Lazard US Short Duration Fixed Income Portfolio

Lazard Global Fixed Income Portfolio

PRIVACY NOTICE Revised September 30, 2015

FACTS	What does Lazard do with your personal information?
Why?	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?	The types of personal information we collect and share depend on the product or service you have with us. This information can include: • Social Security number • Assets and income • Account transactions • Credit history • Transaction history When you are no longer our customer, we continue to share your information as described in this notice.
How?	All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Lazard chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does Lazard share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	No	We do not share
For joint marketing with other financial companies	No	We do not share
For our affiliates’ everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates’ everyday business purposes — information about your creditworthiness	No	We do not share
For nonaffiliates to market to you	No	We do not share

Questions? Call 800-823-6300 or go to http://www.LazardNet.com

Who we are
Who is providing this notice?	Lazard Asset Management LLC, Lazard Alternatives, LLC, Lazard Asset Management (Canada), Inc., Lazard Asset Management Securities LLC on their own behalf and on behalf of the funds they manage.
What we do
How does Lazard protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We believe the measures also comply with applicable state laws.
How does Lazard collect my personal information?	We collect your personal information, for example, when you: • Open an account • Seek advice about your investments • Direct us to buy securities • Direct us to sell your securities • Enter into an investment advisory contract We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?	Federal law gives you the right to limit only: • Sharing for affiliates’ everyday business purposes — information about your creditworthiness • Affiliates from using your information to market to you • Sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.
Definitions
Affiliates	Companies related by common ownership or control. They can be financial and nonfinancial companies. Our affiliates include financial companies whose names include “Lazard.”
Nonaffiliates	Companies not related by common ownership or control. They can be financial and nonfinancial companies. Lazard does not share information with nonaffiliates so they can market to you.
Joint marketing	A formal agreement between nonaffiliated financial companies that together market financial products or services to you. Lazard does not jointly market.
Other important information
Lazard Asset Management (Canada), Inc. does not disclose any non-public personal information about its customers or former customers to any third party, except as permitted by or required by any applicable law, including the laws of the United States and Canada.

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
7	Performance Overviews
10	Information About Your Portfolio’s Expenses
12	Portfolio Holdings Presented by Credit Rating
13	Portfolios of Investments
13	Lazard US Corporate Income Portfolio
18	Lazard US Short Duration Fixed Income Portfolio
20	Lazard Global Fixed Income Portfolio
26	Notes to Portfolios of Investments
28	Statements of Assets and Liabilities
29	Statements of Operations
30	Statements of Changes in Net Assets
32	Financial Highlights
35	Notes to Financial Statements
46	Report of Independent Registered Public Accounting Firm
47	Board of Directors and Officers Information
50	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 2015, global equity market volatility increased due to the prospect of a debt default by Greece, uncertain global monetary policy, and oil price instability. In the US, markets rose modestly as the labor market improved and corporate earnings generally exceeded expectations. Japanese equities extended their impressive streak as Abenomics reforms began to pay dividends. In Europe, the economic recovery continued, but investor enthusiasm remained tepid as countries in the region made mixed progress. Meanwhile, emerging markets assets recorded another difficult year due to economic and political challenges and uncertainty about the possibility of interest rate increases in the US.

Interest rates diverged around the world after the US Federal Reserve announced its highly anticipated rate hike on December 16, and the US yield curve flattened as shorter-maturity yields rose slightly more than those with longer maturities. Currencies were volatile in 2015 and the US dollar strengthened against most of its global counterparts. Investor enthusiasm for European bonds with very low or negative yields waned as the effects of European Central Bank bond repurchases began to fade.

At Lazard Asset Management, we remain focused on active management and are committed to responsibly pursuing the Portfolios’ investment objectives so that you, a valued shareholder in Lazard Funds, achieve your financial goals.

We appreciate your continued confidence in our investment management capabilities, and feel privileged that you have turned to Lazard for your investment needs.

Sincerely,

Lazard Asset Management LLC

2  Annual Report

The Lazard Funds, Inc. Investment Overviews

US Corporate Income

After a strong start to the first half of the year, high yield market returns lagged other US fixed income sectors for 2015. This came despite a growing US economic backdrop and a supportive equity market. A flight-to-quality within fixed income was evident as returns for both intermediate Treasury bonds and investment-grade corporates outperformed those for high yield this year. Within high yield, much of the turmoil was limited to only a few sectors-namely low quality high yield issuers and companies with exposure to oil and commodities. The BofA Merrill Lynch BB-B US Cash Pay Non-Distressed High Yield^® Index (the “Cash Pay Index”) returned -0.93%, underperforming the Barclays US Aggregate Bond^® Index, which returned 0.55%, and the investment grade corporate sector which returned approximately -0.63%. Equities also outperformed, with the S&P 500^® Index returning 1.38%.

High yield market spreads widened by about 194 basis points (bps) during the year to 686 bps over Treasuries. Spreads for the BB sector widened 92 bps to 424 bps, and those for the CCC sector widened materially by 712 bps to 1,647 bps. The B sector also was not immune with spreads widening by 184 bps to 717 bps over Treasuries. Intermediate Treasury yields (5 to 7-year) increased modestly, ending at 1.95% on December 31, 2015. For the year, high yield mutual fund market flows were negative, and totaled about $13.4 billion. This compares to outflows of $23.8 billion for 2014. New high yield bond issuance in the US market was $293 billion for the year versus $356 billion in 2014. The domestic high yield market capitalization is now approximately $1.34 trillion. The Standard & Poor’s US speculative-grade trailing 12-month issuer default rate was 2.8% as of December 31, 2015, up from 1.5% in December 2014.

US Short Duration Fixed Income

After seven years of zero interest rate policy and unprecedented quantitative easing (QE), the US Federal Reserve has finally begun the process of policy normalization by raising the fed funds target rate 25 bps. This is the first step in a long process of unwinding the emergency policies put in place by the Fed in response to the financial crisis in 2008/2009. Going forward, we believe that the challenges that lie ahead

will be very different than those over the last seven years, as we shift from near-zero interest rates, massive QE, and emergency liquidity to a more normal environment where we believe investors will begin to unwind many of the riskier yield trades that have become the market norm. As credit tightens in the future due to higher rates, we would expect to see greater disparity between winners and losers across credit, particularly in the high yield market. We believe this environment would offer ample opportunities for bottom-up security selection.

We believe that many securities in the market are being painted with the same brush due to investor reliance on labels, and that security analysis, not labels, will be the key to sourcing good credits, structures, and, ultimately, liquidity. Within that context, our view is that US high yield bonds, specifically the higher-quality elements of the market, are one of the strongest opportunity sets in the current economic environment. We believe that if growth continues fundamentally sound mid-sized US-oriented borrowers (the companies typically issuing high yield debt) will benefit via improved revenue growth, potentially making their bonds more attractive. Past patterns of performance have shown that higher-quality high yield bonds are resilient in rising rate environments, particularly when growth fears are absent. As a result, we expect that high yield credit spreads will tighten even as interest rates rise. Historically, spread compression in this type of environment has usually been more than adequate to absorb the impact of rate increases, and, additionally, sponsorship within the portions of the market rated BB and B typically has provided sufficient liquidity for these securities. In today’s yield-starved world, we believe this has the potential to be a compelling opportunity for investors seeking income with adequate compensation for risk.

Global Fixed Income

Despite a volatile year for financial markets, it is hard to believe that the bellwether 10-year US Treasury ended 2015 at 2014-like levels (2.17% on December 31, 2014 vs. 2.26% on December 31, 2015). Conversely, euro zone bonds proved no longer a “one-way street” supported by the European Central Bank’s (ECB’s) bond repurchases, as investors began to back away from many bonds in the region which had very low or negative

Annual Report  3

yields. The yield on the 10-year German bund reached an all-time low of 0.07% on April 20, moved close to 1.00% by mid-June, and ended the year at 0.63%.

Many bond markets around the world staged impressive rallies during the first quarter of 2015 amid weak growth in the northern hemisphere (attributed to a harsh winter) and weak inflation. More than thirty countries cut their interest rates, ranging from Pakistan to Denmark to Peru. Highly charged political and economic factors also drove the rotation to bonds, notably the stand-off between the ECB and Greece, geopolitical developments in Russia and the Middle East, and fluctuating oil prices. The ECB quantitative easing program, announced on January 22, 2015 further drove down euro zone bond yields.

Interest rates began to thaw in April and yield curves in many countries steepened in the second quarter, as US employment, housing prices, and manufacturing and consumer confidence data strengthened. Market volatility rose in August, driven by fears of an economic slowdown in China, a surprise revaluation of the renminbi, a broad equity sell-off, and, notably, the continued plunge in oil and commodity prices. The US Federal Reserve’s (the Fed) decision to hold rates steady in September was met with mixed reviews and a generally negative reaction, as it implied a lack of confidence in economic conditions required to start the tightening cycle.

Interest rates diverged globally in the fourth quarter as markets responded to domestic and regional events. The Fed announced its highly anticipated rate hike on December 16, 2015, and the US yield curve flattened as shorter-maturity yields rose slightly more than those with longer maturities. UK bonds underperformed bonds elsewhere, possibly in sympathy with the US rate sell-off, as the Bank of England is expected to initiate its tightening cycle three to six months after the Fed. Economic data was stronger in Australia and Sweden, and interest rates rose modestly in these countries as well. Although ECB President Mario Draghi announced additional quantitative easing (QE) and other forms of euro zone policy easing in December, these measures did not live up to market expectations, causing additional volatility and

a sell-off in core European bond markets, especially among longer maturity bonds.

Credit sector performance was mixed at the start of the year, with spreads widening for certain lower quality country- and company-specific issues tied to energy and commodity production. This spread widening reversed during the second quarter, with riskier parts of the market generally outperforming higher quality bonds. In June, however, credit spreads widened due to position adjustments and risk aversion related to Greece. Indiscriminate spread widening halted to some extent in the third quarter, but resumed by year-end as high yield and emerging markets securities underperformed other sectors.

Currencies were volatile in 2015, and most weakened against the US dollar. In mid-January, the Swiss National Bank unexpectedly removed the exchange rate floor on the Swiss franc, leading the currency to rally over 15%. Markets also digested the negotiations over Greece’s funding crisis and the implications of the ECB’s new QE experiment, and the euro lost over 11% against the US dollar during the first quarter. Over-stretched technical factors, oil price stabilization, and a slightly more dovish Fed early in the second quarter were catalysts for some reversion to the mean, which resulted in a weaker US dollar. The euro strengthened 3.9% against the dollar during this time, despite uncertainty surrounding Greece’s debt negotiations. Currency volatility further increased in the third quarter, as the euro and yen rallied sharply on days of market turmoil, as investors unwound over-stretched short positioning. European regional currencies ended the fourth quarter weaker by 2.8%-3.8% versus the US dollar, while the New Zealand dollar and Australian dollar were considerably stronger, although they weakened overall against the US dollar in 2015. The Indonesian rupiah and Turkish lira fared well during the fourth quarter, but Argentina, South Africa, and Russia saw their currencies reach new lows against the dollar.

Notably, the International Monetary Fund added the Chinese renminbi to its Special Drawing Rights basket in November, reducing the weighting of the euro, British pound, and Japanese yen as a result. We believe the decision represents an international vic-

4  Annual Report

tory for China, and the new designation is recognition of China’s progress in reforming its monetary and financial systems.

Lazard US Corporate Income Portfolio

For the year ended December 31, 2015, the Lazard US Corporate Income Portfolio’s Institutional Shares posted a total return of -0.71%, while Open Shares posted a total return of -0.98%, as compared with the -0.93% return for the Cash Pay Index.

The Portfolio’s Institutional shares outperformed the Cash Pay Index for 2015 due to its overweight position in BB-rated securities. By a wide margin, the BB sector was the best performing rating category in the high yield market for the year. As measured by each rating category within the high yield market, the more risk taken on this year, the lower the return.

Performance was helped by an underweight position in the telecommunications sector and an overweight position in media. To a lesser extent, overweight positions in the leisure and technology & electronics sectors also aided performance. Performance was hurt by an underweight position in energy and an overweight holding in the transportation sector. To a lesser extent, underweight positions in the banking and financial services sectors also detracted from performance. Throughout the market volatility of the past several years, we have maintained our credit discipline. As of December 31, 2015, approximately 73% of the holdings by market value were rated BB- or better by Standard & Poor’s and 88% were rated B+ or better. The Portfolio’s effective duration is approximately 4.4 years, as compared to the Cash Pay Index duration of 4.6 years. The Portfolio is shorter in maturity by design to protect against rising interest rates.

Lazard US Short Duration Fixed Income Portfolio

For the year ended December 31, 2015, the Lazard US Short Duration Fixed Income Portfolio’s Institutional Shares posted a total return of 0.05%, while Open Shares posted a total return of 0.77%, as compared with the 0.54% return for the BofA Merrill Lynch 1-3 Year US Treasury^® Index.

The Portfolio lagged for the year due to an underweight position in 2-3 year US Treasury securities,

which outperformed in 2015. Investments in US energy corporates also detracted from returns as spreads widened due to the collapse in oil prices. Performance was helped by outperformance in other US corporate securities.

As of December 31, 2015, we maintained a duration positioning that was relatively short to the index, as we are concerned about the possibility of increasing short rates. The Portfolio maintained a healthy allocation to credit positions, particularly in BBB rated corporates. US financials remained a sizable portion of the credit positioning. We also increased weightings during the period in consumer asset-backed securities, which reflected ongoing strength in consumer lending. We remained significantly underweight US Treasury securities as they appear relatively expensive.

Lazard Global Fixed Income Portfolio

For the year ended December 31, 2015, the Lazard Global Fixed Income Portfolio’s Institutional Shares posted a total return of -4.03%, while Open Shares posted a total return of -4.31%, as compared with the -3.15% return for the Barclays Capital Global Aggregate Bond^® Index.

The Portfolio’s performance was helped by its country allocations, namely its overweight exposures to Canada, Mexico, Australia, and New Zealand. The Portfolio’s defensive duration and yield curve positioning in the United States and the euro zone added value, notably through a combination of its underweight allocation, government bond sector exposure, and long maturity bond holdings. Tactical currency exposure to the Swiss franc and an underweight exposure to the euro in favor of the US dollar also helped performance. Conversely, the Portfolio’s underweight position in the Japanese bond market and its modest exposures to a variety of currencies, including the pound sterling, Norwegian krone, Chilean peso, and Mexican peso, detracted from performance during the reporting period.

The portfolio management team utilizes forward currency contracts, both opportunistically and defensively, for hedging purposes. During 2015, the use of forward currency contracts had a positive impact on the Portfolio.

Annual Report  5

Notes to Investment Overviews:

Total 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, 2015; these views and portfolio holdings may have changed subsequent to this date. Nothing herein should be construed as a recommendation to buy, sell, or hold a particular security. There is no assurance that the securities discussed herein will remain in a Portfolio at the time you receive this report, or that securities sold will not have been repurchased. The specific securities discussed may, in aggregate, represent only a small percentage of a Portfolio’s holdings. It should not be assumed that securities identified and discussed were, or will be, profitable, or that the investment decisions made in the future will be profitable, or equal the investment performance of the securities discussed herein.

The views and opinions expressed are provided for general information only, and do not constitute specific tax, legal, or investment advice to, or recommendations for, any person. There can be no guarantee as to the accuracy of any outlooks for markets, sectors and securities as discussed herein. You should read the Fund’s prospectus or each Portfolio’s summary prospectus for a more detailed discussion of each Portfolio’s investment objectives, strategies, risks and fees.

6  Annual Report

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, 2015

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	-0.71%	5.11%	5.76%
Open Shares**	-0.98%	4.81%	5.46%
Cash Pay Index	-0.93%	5.68%	6.08%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report  7

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, 2015

	One	Since
	Year	Inception	†
Institutional Shares**	0.05%	1.25%
Open Shares**	0.77%	1.20%
BofA Merrill Lynch 1-3 Year US Treasury Index	0.54%	0.71%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was February 28, 2011.

8  Annual Report

Lazard Global Fixed Income Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2015

	One	Since
	Year	Inception	†
Institutional Shares**	-4.03%	-1.32%
Open Shares**	-4.31%	-1.61%
Barclays Capital Global Aggregate Bond Index	-3.15%	-0.50%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was March 30, 2012.

Annual Report  9

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, 2015 through December 31, 2015 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 shareholder reports of other mutual 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.

10  Annual Report

	Beginning		Ending		Expenses Paid		Annualized Expense
	Account Value		Account Value		During Period*		Ratio During Period
Portfolio	7/1/15		12/31/15		7/1/15 - 12/31/15		7/1/15 - 12/31/15
US Corporate Income
Institutional Shares
Actual	$	1,000.00	$	968.80		$2.73		0.55	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,022.43		$2.80		0.55	%
Open Shares
Actual	$	1,000.00	$	967.60		$4.22		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	$	997.70		$2.01		0.40	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,023.19		$2.04		0.40	%
Open Shares
Actual	$	1,000.00	$	1,007.30		$3.54		0.70	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.68		$3.57		0.70	%
Global Fixed Income
Institutional Shares
Actual	$	1,000.00	$	985.60		$3.75		0.75	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.42		$3.82		0.75	%
Open Shares
Actual	$	1,000.00	$	983.10		$5.25		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91		$5.35		1.05	%

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

Annual Report  11

The Lazard Funds, Inc. Portfolio Holdings Presented by Credit Rating December 31, 2015

	Lazard			Lazard US Short			Lazard Global
	US Corporate			Duration Fixed			Fixed Income
S&P Credit Rating*	Income Portfolio			Income Portfolio			Portfolio
AAA		—	%		5.5	%		13.0	%
AA+		—			42.8			13.1
AA		—			—			1.9
AA-		—			1.7			5.6
A+		—			—			10.5
A		—			3.5			10.9
A-		—			3.5			3.6
BBB+		—			19.9			7.8
BBB		2.4			15.3			5.7
BBB-		4.0			2.1			5.1
BB+		14.1			—			4.1
BB		21.9			—			0.6
BB-		26.7			—			1.9
B+		13.9			—			—
B		8.0			—			—
B-		3.9			—			—
NR		—			—			1.6
NA		0.6			4.7			11.2
Short-Term Investments		4.5			1.0			3.4
Total Investments		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

12  Annual Report

The Lazard Funds, Inc. Portfolios of Investments December 31, 2015

Description	Principal Amount (000)		Value
Lazard US Corporate Income Portfolio
Corporate Bonds | 93.3%
Aerospace & Defense | 1.3%
Bombardier, Inc., 7.750%, 03/15/20 (a)	$	975	$	787,313
KLX, Inc., 5.875%, 12/01/22 (a)		1,400		1,330,000
Triumph Group, Inc., 4.875%, 04/01/21		1,400		1,127,875
				3,245,188
Automotive | 2.2%
Fiat Chrysler Automobiles NV, 5.250%, 04/15/23		1,800		1,768,500
Schaeffler Finance BV, 4.750%, 05/15/21 (a)		1,850		1,859,250
The Goodyear Tire & Rubber Co., 5.125%, 11/15/23		1,800		1,845,000
				5,472,750
Building Materials | 2.2%
HD Supply, Inc., 5.250%, 12/15/21 (a)		1,500		1,530,000
Masco Corp., 6.125%, 10/03/16		1,500		1,544,970
USG Corp., 9.750%, 01/15/18		675		750,938
WESCO Distribution, Inc., 5.375%, 12/15/21		1,600		1,536,000
				5,361,908
Cable Television | 6.3%
Cable One, Inc., 5.750%, 06/15/22 (a)		1,750		1,741,250
Cablevision Systems Corp., 7.750%, 04/15/18		1,500		1,560,000
CCO Holdings LLC, 5.250%, 03/15/21		1,950		2,025,562
Cequel Communications Holdings I LLC, 6.375%, 09/15/20 (a)		1,800		1,759,500
DISH DBS Corp., 5.125%, 05/01/20		1,600		1,584,000
Mediacom Broadband LLC, 5.500%, 04/15/21		1,500		1,443,750
Unitymedia Hessen GmbH & Co. KG, 5.500%, 01/15/23 (a)		1,800		1,795,500

Description	Principal Amount (000)		Value
Videotron, Ltd., 5.000%, 07/15/22	$	1,808	$	1,808,000
Virgin Media Secured Finance PLC, 5.375%, 04/15/21 (a)		1,629		1,681,943
				15,399,505
Chemicals | 3.7%
Chemtura Corp., 5.750%, 07/15/21		1,400		1,407,000
Eagle Spinco, Inc., 4.625%, 02/15/21		1,400		1,288,000
Huntsman International LLC, 4.875%, 11/15/20		1,600		1,460,000
Mosaic Global Holdings, Inc., 7.300%, 01/15/28		775		931,666
Platform Specialty Products Corp., 6.500%, 02/01/22 (a)		1,700		1,470,500
Tronox Finance LLC, 6.375%, 08/15/20		1,400		842,520
WR Grace & Co-Conn, 5.125%, 10/01/21 (a)		1,700		1,717,000
				9,116,686
Communications Equipment | 1.3%
Belden, Inc., 5.500%, 09/01/22 (a)		1,750		1,684,375
CommScope, Inc., 5.000%, 06/15/21 (a)		1,500		1,438,125
				3,122,500
Computer Software & Services | 2.6%
Activision Blizzard, Inc., 5.625%, 09/15/21 (a)		1,400		1,466,500
First Data Corp.:
6.750%, 11/01/20 (a)		260		272,675
5.375%, 08/15/23 (a)		1,600		1,608,000
Nuance Communications, Inc., 5.375%, 08/15/20 (a)		1,373		1,374,812
VeriSign, Inc., 4.625%, 05/01/23		1,800		1,742,850
				6,464,837
Consumer Products | 1.3%
First Quality Finance Co., Inc., 4.625%, 05/15/21 (a)		1,500		1,365,000
Tempur Sealy International, Inc., 5.625%, 10/15/23 (a)		1,750		1,767,500
				3,132,500

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)
Diversified | 1.2%
Amsted Industries, Inc., 5.000%, 03/15/22 (a)	$	1,700	$	1,700,000
Griffon Corp., 5.250%, 03/01/22		1,400		1,335,250
				3,035,250
Electric Generation | 1.1%
AES Corp., 7.375%, 07/01/21		1,095		1,116,900
Calpine Corp., 6.000%, 01/15/22 (a)		1,500		1,548,285
				2,665,185
Electronics | 0.6%
Amkor Technologies, Inc., 6.625%, 06/01/21		1,400		1,389,500
Energy Exploration & Production | 2.5%
Antero Resources Corp., 5.125%, 12/01/22		1,850		1,406,000
EP Energy LLC, 9.375%, 05/01/20		1,600		1,020,000
Range Resources Corp., 5.000%, 08/15/22		1,700		1,270,750
Whiting Petroleum Corp., 5.750%, 03/15/21		1,750		1,275,750
WPX Energy, Inc., 6.000%, 01/15/22		1,700		1,190,000
				6,162,500
Energy Services | 1.7%
Hornbeck Offshore Services, Inc., 5.000%, 03/01/21		1,600		1,088,000
Northern Tier Energy LLC, 7.125%, 11/15/20		1,250		1,262,500
PBF Holding Co. LLC:
8.250%, 02/15/20		900		931,500
7.000%, 11/15/23 (a)		900		877,500
				4,159,500
Environmental | 1.1%
Clean Harbors, Inc., 5.250%, 08/01/20		1,750		1,785,000
Darling Ingredients, Inc., 5.375%, 01/15/22		850		837,250
				2,622,250

Description	Principal Amount (000)		Value
Financial Services | 1.7%
Aircastle, Ltd., 5.125%, 03/15/21	$	1,500	$	1,541,250
Icahn Enterprises LP, 6.000%, 08/01/20		1,500		1,512,600
International Lease Finance Corp.:
5.750%, 05/15/16		500		506,875
8.750%, 03/15/17		500		532,500
				4,093,225
Food & Beverages | 2.3%
B&G Foods, Inc., 4.625%, 06/01/21		1,500		1,485,000
Constellation Brands, Inc., 7.250%, 05/15/17		950		1,011,750
Post Holdings, Inc., 7.375%, 02/15/22		1,650		1,720,125
TreeHouse Foods, Inc., 4.875%, 03/15/22		1,500		1,428,750
				5,645,625
Forest & Paper Products | 1.4%
Cascades, Inc., 5.500%, 07/15/22 (a)		1,500		1,455,000
Smurfit Kappa Acquisitions, 4.875%, 09/15/18 (a)		1,050		1,081,500
Smurfit Kappa Treasury Funding, Ltd., 7.500%, 11/20/25		750		864,375
				3,400,875
Gaming | 3.1%
GLP Capital LP, 4.875%, 11/01/20		1,500		1,470,000
International Game Technology PLC:
5.625%, 02/15/20 (a)		250		246,250
6.250%, 02/15/22 (a)		1,450		1,355,750
MGM Resorts International, 6.625%, 12/15/21		1,000		1,023,750
Pinnacle Entertainment, Inc., 6.375%, 08/01/21		1,250		1,314,062
Scientific Games International, Inc., 6.250%, 09/01/20		750		352,500
Wynn Las Vegas LLC, 5.375%, 03/15/22		2,007		1,907,112
				7,669,424
Gas Distribution | 6.4%
AmeriGas Finance LLC, 6.750%, 05/20/20		1,525		1,483,063

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

14  Annual Report

Description	Principal Amount (000)		Value
Lazard US Corporate Income Portfolio (continued)
Energy Transfer Equity LP, 7.500%, 10/15/20	$	1,250	$	1,156,250
Ferrellgas LP, 6.500%, 05/01/21		500		425,000
Ferrellgas Partners LP, 8.625%, 06/15/20		520		488,800
Kinder Morgan, Inc.:
7.000%, 06/15/17		650		669,569
5.000%, 02/15/21 (a)		1,275		1,212,007
ONEOK Partners LP, 5.000%, 09/15/23		2,000		1,751,394
Regency Energy Partners LP, 5.750%, 09/01/20		1,300		1,270,108
Rockies Express Pipeline LLC, 6.850%, 07/15/18 (a)		1,450		1,421,000
Suburban Propane Partners LP, 7.375%, 08/01/21		1,531		1,469,760
Sunoco LP, 6.375%, 04/01/23 (a)		1,700		1,598,000
Targa Resources Partners LP, 5.250%, 05/01/23		1,800		1,458,000
Tesoro Logistics LP, 6.125%, 10/15/21		1,383		1,313,850
				15,716,801
Health Services | 5.9%
Community Health Systems, Inc., 8.000%, 11/15/19		1,400		1,410,500
Fresenius Medical Care US Finance II, Inc., 5.625%, 07/31/19 (a)		1,097		1,182,018
Grifols Worldwide Operations, Ltd., 5.250%, 04/01/22		1,475		1,482,375
HCA, Inc., 6.500%, 02/15/20		1,600		1,743,200
HealthSouth Corp., 5.125%, 03/15/23		1,801		1,724,457
Hill-Rom Holdings, Inc., 5.750%, 09/01/23 (a)		1,800		1,836,000
LifePoint Health, Inc., 5.500%, 12/01/21		1,400		1,424,500
Molina Healthcare, Inc., 5.375%, 11/15/22 (a)		1,700		1,700,000
Tenet Healthcare Corp.:
4.750%, 06/01/20		700		703,500
4.375%, 10/01/21		1,250		1,206,250
				14,412,800

Description	Principal Amount (000)		Value
Leisure & Entertainment | 4.8%
ACCO Brands Corp., 6.750%, 04/30/20	$	1,750	$	1,802,500
Cedar Fair LP, 5.250%, 03/15/21		1,800		1,854,000
Cinemark USA, Inc., 4.875%, 06/01/23		1,800		1,755,000
Hilton Worldwide Finance LLC, 5.625%, 10/15/21		1,750		1,813,437
Regal Entertainment Group, 5.750%, 03/15/22		1,450		1,450,000
RHP Hotel Properties LP, 5.000%, 04/15/23		1,775		1,775,000
Six Flags Entertainment Corp., 5.250%, 01/15/21 (a)		1,400		1,417,500
				11,867,437
Machinery | 1.0%
Terex Corp., 6.500%, 04/01/20		1,600		1,540,000
The Manitowoc Co., Inc., 8.500%, 11/01/20		1,000		1,035,000
				2,575,000
Media | 9.3%
AMC Networks, Inc., 4.750%, 12/15/22		1,500		1,500,000
Clear Channel Worldwide Holdings, Inc., 6.500%, 11/15/22		1,750		1,706,250
Lamar Media Corp., 5.875%, 02/01/22		1,685		1,769,250
LIN Television Corp., 5.875%, 11/15/22		1,750		1,741,250
Netflix, Inc., 5.375%, 02/01/21		1,450		1,522,500
Nielsen Finance LLC, 5.000%, 04/15/22 (a)		1,800		1,777,500
Outfront Media Capital LLC, 5.250%, 02/15/22		1,500		1,533,750
Sinclair Television Group, Inc., 5.375%, 04/01/21		1,900		1,904,750
Sirius XM Radio, Inc., 5.750%, 08/01/21 (a)		1,500		1,548,750
Starz LLC, 5.000%, 09/15/19		725		734,062
TEGNA, Inc.,
7.125%, 09/01/18		469		478,380
6.375%, 10/15/23		1,500		1,582,500

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

Annual Report  15

Description	Principal Amount (000)		Value
Lazard US Corporate Income Portfolio (continued)
Tribune Media Co., 5.875%, 07/15/22 (a)	$	1,800	$	1,800,000
Univision Communications, Inc., 5.125%, 05/15/23 (a)		1,800		1,732,500
WMG Acquisition Corp., 6.000%, 01/15/21 (a)		1,620		1,628,100
				22,959,542
Packaging | 4.1%
Ball Corp., 4.000%, 11/15/23		1,900		1,812,125
Crown Americas LLC, 4.500%, 01/15/23		1,800		1,759,500
Owens-Brockway Glass Container, Inc., 5.000%, 01/15/22 (a)		1,892		1,849,430
Reynolds Group Issuer, Inc., 5.750%, 10/15/20		1,500		1,525,785
Sealed Air Corp., 4.875%, 12/01/22 (a)		1,700		1,704,250
Silgan Holdings, Inc., 5.000%, 04/01/20		1,475		1,500,812
				10,151,902
Pharmaceutical & Biotechnology | 1.6%
Endo Finance LLC, 5.750%, 01/15/22 (a)		1,600		1,552,000
Mallinckrodt International Finance SA, 5.750%, 08/01/22 (a)		1,700		1,632,000
Valeant Pharmaceuticals International, 6.375%, 10/15/20 (a)		750		723,750
				3,907,750
Printing & Publishing | 1.4%
R.R. Donnelley & Sons Co., 7.250%, 05/15/18		1,016		1,066,800
The McClatchy Co., 9.000%, 12/15/22		1,100		979,000
Time, Inc., 5.750%, 04/15/22 (a)		1,425		1,303,875
				3,349,675
Real Estate | 0.6%
DuPont Fabros Technology LP, 5.875%, 09/15/21		1,400		1,456,000

Description	Principal Amount (000)		Value
Restaurants | 0.7%
1011778 BC ULC, 4.625%, 01/15/22 (a)	$	1,800	$	1,804,500
Retail | 2.9%
Argos Merger Sub, Inc., 7.125%, 03/15/23 (a)		1,600		1,586,400
Dollar Tree, Inc.:
5.250%, 03/01/20 (a)		75		77,438
5.750%, 03/01/23 (a)		1,750		1,824,375
Group 1 Automotive, Inc., 5.000%, 06/01/22		1,912		1,892,880
Ingles Markets, Inc., 5.750%, 06/15/23		1,750		1,745,625
				7,126,718
Steel-Producers | 1.5%
ArcelorMittal, 6.500%, 03/01/21		1,400		1,126,846
Steel Dynamics, Inc., 6.125%, 08/15/19		1,800		1,813,500
United States Steel Corp., 6.050%, 06/01/17		950		769,500
				3,709,846
Support Services | 5.7%
Algeco Scotsman Global Finance PLC, 8.500%, 10/15/18 (a)		1,250		1,046,875
Audatex North America, Inc., 6.000%, 06/15/21 (a)		1,400		1,410,500
Avis Budget Car Finance, Inc., 5.125%, 06/01/22 (a)		1,600		1,580,000
DigitalGlobe, Inc., 5.250%, 02/01/21 (a)		1,750		1,470,000
IHS, Inc., 5.000%, 11/01/22		1,750		1,771,875
Iron Mountain, Inc., 6.000%, 08/15/23		1,700		1,759,500
The ADT Corp., 6.250%, 10/15/21		1,400		1,462,370
United Rentals North America, Inc.:
7.375%, 05/15/20		750		791,250
4.625%, 07/15/23		1,100		1,097,250
West Corp., 5.375%, 07/15/22 (a)		1,750		1,509,375
				13,898,995

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

16  Annual Report

Description	Principal Amount (000)		Value
Lazard US Corporate Income Portfolio (concluded)
Technology Hardware | 1.9%
Denali Borrower Finance Corp., 5.625%, 10/15/20 (a)	$	1,400	$	1,466,500
NCR Corp., 4.625%, 02/15/21		1,568		1,493,520
Plantronics, Inc., 5.500%, 05/31/23 (a)		1,750		1,741,250
				4,701,270
Telecommunications | 7.2%
CenturyLink, Inc., 5.625%, 04/01/20		1,800		1,779,750
Communications Sales & Leasing, Inc., 6.000%, 04/15/23 (a)		1,700		1,606,500
Crown Castle International Corp., 4.875%, 04/15/22		1,500		1,556,250
Equinix, Inc., 4.875%, 04/01/20		1,872		1,945,944
Frontier Communications Corp., 8.125%, 10/01/18		1,500		1,548,750
Inmarsat Finance PLC, 4.875%, 05/15/22 (a)		1,750		1,706,250
Intelsat Jackson Holdings SA, 7.250%, 04/01/19		1,300		1,192,750
Level 3 Financing, Inc., 5.125%, 05/01/23 (a)		1,800		1,786,500
SBA Telecommunications, Inc., 5.750%, 07/15/20		1,500		1,560,000
Sprint Capital Corp., 6.900%, 05/01/19		1,475		1,202,125
T-Mobile USA, Inc., 6.250%, 04/01/21		1,850		1,910,125
				17,794,944

Description	Principal Amount (000)		Value
Transportation | 0.7%
Hapag-Lloyd AG, 9.750%, 10/15/17 (a)	$	533	$	538,330
Teekay Corp., 8.500%, 01/15/20		1,725		1,164,375
				1,702,705
Total Corporate Bonds (Identified cost $239,468,620)				229,295,093

Description	Shares		Value
Short-Term Investment | 4.5%
State Street Institutional Treasury Money Market Fund (Identified cost $10,935,658)		10,935,658	$	10,935,658
Total Investments | 97.8% (Identified cost $250,404,278) (b)			$	240,230,751
Cash and Other Assets in Excess of Liabilities | 2.2%				5,448,771
Net Assets | 100.0%			$	245,679,522

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

Annual Report  17

Description	Principal Amount (000)		Value
Lazard US Short Duration Fixed Income Portfolio
Asset-Backed Securities | 10.1%
Automotive | 7.5%
Ally Auto Receivables Trust, 1.390%, 09/16/19	$	1,275	$	1,269,729
BMW Vehicle Lease Trust, 1.400%, 02/20/19		2,175		2,162,473
GM Financial Automobile Leasing Trust:
1.530%, 09/20/18		1,460		1,452,822
1.680%, 12/20/18		1,625		1,615,766
GMF Floorplan Owner Revolving Trust, 1.650%, 05/15/20 (a)		1,200		1,187,399
				7,688,189
Financial Services | 2.6%
Citibank Credit Card Issuance Trust, 5.650%, 09/20/19		2,550		2,723,886
Total Asset-Backed Securities (Identified cost $10,509,319)				10,412,075
Corporate Bonds | 40.7%
Banking | 4.6%
Bank of America Corp.:
3.625%, 03/17/16		700		703,598
3.750%, 07/12/16		1,710		1,731,406
6.500%, 08/01/16		1,555		1,600,316
5.625%, 10/14/16		725		747,934
				4,783,254
Cable Television | 4.1%
DIRECTV Holdings LLC, 2.400%, 03/15/17		2,262		2,280,277
Time Warner Cable, Inc., 5.850%, 05/01/17		1,835		1,919,709
				4,199,986
Energy Exploration & Production | 4.0%
Anadarko Petroleum Corp., 6.375%, 09/15/17		2,025		2,123,417
Marathon Oil Corp., 6.000%, 10/01/17		1,959		1,996,819
				4,120,236

Description	Principal Amount (000)		Value
Energy Services | 2.5%
ONEOK Partners LP:
3.250%, 02/01/16	$	1,344	$	1,346,330
2.000%, 10/01/17		1,300		1,241,811
				2,588,141
Financial Services | 19.5%
Citigroup, Inc.:
3.953%, 06/15/16		1,090		1,105,095
1.700%, 07/25/16		250		250,801
1.350%, 03/10/17		1,975		1,967,544
Ford Motor Credit Co. LLC, 8.000%, 12/15/16		2,030		2,145,897
JPMorgan Chase & Co.:
2.600%, 01/15/16		400		400,167
3.150%, 07/05/16		2,630		2,657,134
1.350%, 02/15/17		505		503,998
Morgan Stanley:
3.800%, 04/29/16		3,175		3,201,848
5.750%, 10/18/16		822		850,153
The Goldman Sachs Group, Inc.:
3.625%, 02/07/16		2,475		2,481,269
6.250%, 09/01/17		1,800		1,927,651
The Western Union Co., 5.930%, 10/01/16		2,526		2,606,183
				20,097,740
Retail | 4.4%
CVS Health Corp., 1.200%, 12/05/16		2,280		2,280,379
The Kroger Co., 1.200%, 10/17/16		2,280		2,275,522
				4,555,901
Transportation | 1.6%
CSX Corp., 7.900%, 05/01/17		1,525		1,650,199
Total Corporate Bonds (Identified cost $42,284,368)				41,995,457
Municipal Bonds | 5.2%
California | 1.7%
California State Taxable Various Purpose:
1.050%, 02/01/16		1,175		1,175,670
5.500%, 03/01/16		575		579,658
				1,755,328

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

18  Annual Report

Description	Principal Amount (000)		Value
Lazard US Short Duration Fixed Income Portfolio (concluded)
Illinois | 0.5%
Railsplitter Illinois Tobacco Settlement Authority, 4.125%, 06/01/16	$	500	$	506,690
Kentucky | 3.0%
Kentucky State Asset Liability Commission General Funding Revenue, 3.165%, 04/01/18		3,053		3,093,305
Total Municipal Bonds (Identified cost $5,387,171)				5,355,323
US Government Securities | 37.7%
Mortgage-Backed Securities | 37.7%
Federal Home Loan Mortgage Corp.:
Pool# 1B4676, 2.533%, 05/01/40		732		773,730
Pool# 1B8709, 2.187%, 08/01/34		1,946		2,043,698
Pool# 1H2577, 2.487%, 09/01/35		1,174		1,237,611
Pool# 848138, 2.557%, 07/01/38		1,047		1,109,577
Pool# 848514, 2.643%, 03/01/32		2,135		2,256,911
Pool# 848517, 2.546%, 12/01/34		1,555		1,643,660
Pool# 849414, 2.513%, 07/01/35		1,975		2,087,201
Pool# G11720, 4.500%, 08/01/20		313		325,286
Pool# G13867, 5.000%, 06/01/25		483		521,310
Series 2628, Class QN, 3.750%, 06/15/32		842		863,562
Series 2976, Class LF, 0.671%, 05/15/35		1,401		1,403,137
Series 3153, Class FJ, 0.711%, 05/15/36		855		859,166
Series 3725, Class A, 3.500%, 09/15/24		269		276,384
Federal National Mortgage Association:
Pool# 725296, 2.221%, 03/01/34		870		919,825
Pool# 725429, 5.000%, 05/01/19		421		440,066
Pool# 889735, 5.500%, 07/01/23		435		474,494
Pool# 889828, 5.000%, 10/01/19		297		313,725
Pool# 963058, 2.528%, 05/01/38		798		849,467
Pool# 995609, 2.587%, 04/01/35		1,029		1,092,441
Pool# AD0278, 4.279%, 09/01/39		242		256,852
Pool# AD0701, 2.316%, 02/01/37		1,193		1,254,753
Pool# AE0149, 2.442%, 12/01/36		1,036		1,095,876
Pool# AE0315, 4.500%, 02/01/21		108		111,950
Pool# AE0887, 2.490%, 09/01/40		421		447,192

Description	Principal Amount (000)		Value
Pool# AL0345, 2.499%, 11/01/35	$	905	$	953,222
Pool# AL3232, 2.542%, 02/01/40		492		523,634
Pool# AL3260, 2.470%, 07/01/38		617		655,015
Pool# AL3739, 2.423%, 07/01/38		341		360,717
Pool# AL3746, 2.436%, 01/01/37		1,137		1,200,403
Pool# AL3941, 6.000%, 03/01/24		589		630,823
Pool# AL4118, 2.510%, 05/01/35		745		787,244
Pool# AL4545, 2.454%, 05/01/39		943		996,009
Pool# AL4660, 2.448%, 11/01/41		969		1,026,804
Pool# AL5574, 2.439%, 12/01/40		1,563		1,650,928
Pool# AL5642, 2.463%, 05/01/39		2,077		2,194,799
Series 2005-45, Class XA, 0.762%, 06/25/35		1,530		1,532,911
Series 2006-101, Class FA, 0.842%, 10/25/36		1,735		1,744,661
Series 2007-85, Class FL, 0.962%, 09/25/37		805		814,056
Series 2009-70, Class NL, 3.000%, 08/25/19		1,235		1,258,526
Total US Government Securities (Identified cost $39,080,833)				38,987,626
US Treasury Security | 4.8%
US Treasury Note, 0.750%, 10/31/17 (Identified cost $4,979,010)		5,000		4,973,770
Description	Shares		Value
Short-Term Investment | 1.0%
State Street Institutional Treasury Money Market Fund (Identified cost $986,474)		986,474	$	986,474
Total Investments | 99.5% (Identified cost $103,227,175) (b)			$	102,710,725
Cash and Other Assets in Excess of Liabilities | 0.5%				465,721
Net Assets | 100.0%			$	103,176,446

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
Corporate Bonds | 30.8%
Australia | 2.1%
Telstra Corp., Ltd., 4.000%, 11/15/17	AUD		130	$	96,384
Toyota Finance Australia, Ltd., 4.250%, 05/15/19	AUD		35		26,172
					122,556
Canada | 5.6%
John Deere Canada Funding, Inc., 2.300%, 01/17/18	CAD		30		22,033
Shaw Communications, Inc., 5.650%, 10/01/19	CAD		60		48,035
Suncor Energy, Inc., 6.100%, 06/01/18	USD		50		53,783
The Bank of Nova Scotia, 2.125%, 09/11/19	USD		100		99,903
The Toronto-Dominion Bank:
2.250%, 11/05/19	USD		45		44,989
2.621%, 12/22/21	CAD		80		58,982
					327,725
Chile | 1.7%
Codelco, Inc., 3.750%, 11/04/20	USD		100		97,883
France | 1.0%
Orange SA, 5.375%, 07/08/19	USD		55		60,629
Italy | 1.1%
Atlantia SpA, 4.375%, 09/16/25	EUR		50		66,952
Luxembourg | 0.6%
ArcelorMittal, 5.500%, 02/25/17	USD		35		33,807
Netherlands | 0.9%
Bank Nederlandse Gemeenten NV, 5.000%, 09/16/20	NZD		70		50,200
Norway | 0.9%
Statoil ASA, 3.700%, 03/01/24	USD		50		50,683

Description	Security Currency	Principal Amount (000)		Value
United Kingdom | 3.6%
GKN Holdings PLC, 6.750%, 10/28/19	GBP		30	$	49,935
Rolls-Royce PLC, 6.750%, 04/30/19	GBP		50		84,305
SSE PLC, 5.000%, 10/01/18	GBP		50		79,604
					213,844
United States | 13.3%
Apple, Inc., 3.850%, 05/04/43	USD		55		50,676
Constellation Brands, Inc., 7.250%, 05/15/17	USD		50		53,250
Fresenius Medical Care US Finance II, Inc., 4.125%, 10/15/20	USD		30		30,300
General Electric Capital Corp., 5.500%, 02/01/17	NZD		90		62,736
HCA, Inc., 6.500%, 02/15/20	USD		40		43,580
John Deere Capital Corp., 2.300%, 09/16/19	USD		30		30,120
Marathon Petroleum Corp., 3.625%, 09/15/24	USD		35		32,632
Nestle Holdings, Inc.:
2.500%, 07/10/17	NOK		250		28,818
2.750%, 04/15/20	NOK		340		40,618
The Goldman Sachs Group, Inc.:
5.200%, 12/17/19	NZD		95		67,184
3.625%, 01/22/23	USD		60		60,704
The Home Depot, Inc., 2.625%, 06/01/22	USD		65		64,940
Union Pacific Corp., 4.163%, 07/15/22	USD		60		64,895
United Rentals North America, Inc., 4.625%, 07/15/23	USD		35		34,912
Valero Energy Corp., 6.125%, 02/01/20	USD		55		60,674
Verizon Communications, Inc., 1.350%, 06/09/17	USD		50		49,858
					775,897
Total Corporate Bonds (Identified cost $1,931,318)					1,800,176

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)
Foreign Government Obligations | 48.1%
Australia | 2.5%
Queensland Treasury Corp., 5.500%, 06/21/21	AUD		105	$	87,098
Western Australian Treasury Corp., 6.000%, 10/16/23	AUD		70		60,690
					147,788
Bahamas | 1.6%
Commonwealth of Bahamas, 6.950%, 11/20/29	USD		80		93,400
Bermuda | 1.9%
Government of Bermuda, 5.603%, 07/20/20	USD		100		109,375
Canada | 5.5%
City of Vancouver, 2.900%, 11/20/25	CAD		40		29,443
Province of Alberta, 4.000%, 12/01/19	CAD		85		67,904
Province of British Columbia, 3.700%, 12/18/20	CAD		80		64,250
Province of Ontario, 2.450%, 06/29/22	USD		60		59,471
Province of Quebec, 3.500%, 07/29/20	USD		95		100,486
					321,554
Chile | 0.9%
Republic of Chile, 5.500%, 08/05/20	CLP		37,500		54,539
Colombia | 1.8%
Republic of Colombia, 7.375%, 01/27/17	USD		100		105,000
Hungary | 2.1%
Hungary Government Bonds:
3.500%, 06/24/20	HUF		17,050		61,050
5.500%, 06/24/25	HUF		15,030		60,689
					121,739

Description	Security Currency	Principal Amount (000)		Value
Ireland | 3.6%
Irish Treasury:
3.400%, 03/18/24	EUR		95	$	122,861
2.400%, 05/15/30	EUR		75		88,992
					211,853
Italy | 1.1%
Italy Buoni Poliennali Del Tesoro, 1.500%, 06/01/25	EUR		60		65,249
Mexico | 5.4%
Mexican Bonos:
4.750%, 06/14/18	MXN		2,000		116,601
6.500%, 06/09/22	MXN		970		57,913
Mexican Udibonos, 2.500%, 12/10/20	MXN		1,022		57,707
United Mexican States, 6.750%, 02/06/24	GBP		48		86,112
					318,333
New Zealand | 3.0%
Auckland Council, 4.620%, 03/29/16	NZD		100		68,661
New Zealand Government Bond, 3.000%, 04/15/20	NZD		110		75,503
New Zealand Local Government Funding Agency, 6.000%, 12/15/17	NZD		40		28,849
					173,013
Norway | 2.1%
Oslo Kommune, 3.550%, 02/12/21	NOK		1,000		121,523
Philippines | 2.2%
Republic of Philippines, 4.950%, 01/15/21	PHP		6,000		129,423
Poland | 3.9%
Poland Government Bond, 1.790%, 01/25/21	PLN		600		150,205
Republic of Poland, 3.000%, 03/17/23	USD		77		76,219
					226,424
Portugal | 0.5%
Portugal Obrigacoes do Tesouro OT, 2.875%, 10/15/25	EUR		25		27,979

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

Annual Report  21

Description	Security Currency	Principal Amount (000)		Value
Lazard Global Fixed Income Portfolio (continued)
Romania | 1.0%
Romanian Government Bonds:
3.625%, 04/24/24	EUR		32	$	38,036
2.875%, 10/28/24	EUR		20		22,463
					60,499
Singapore | 1.6%
Singapore Government Bond, 3.000%, 09/01/24	SGD		129		94,164
Spain | 1.0%
Spain Government Bond, 1.600%, 04/30/25	EUR		55		59,413
Sweden | 1.3%
Svensk Exportkredit AB, 1.875%, 12/21/18	GBP		50		74,842
United Kingdom | 3.2%
United Kingdom Treasury:
1.750%, 07/22/19	GBP		40		60,252
2.250%, 09/07/23	GBP		85		129,687
					189,939
Vietnam | 1.9%
Socialist Republic of Vietnam, 6.750%, 01/29/20	USD		100		109,875
Total Foreign Government Obligations (Identified cost $3,033,257)					2,815,924
Quasi Government Bonds | 1.4%
Canada | 0.6%
Hydro-Quebec, 9.625%, 07/15/22	CAD		30		31,965
Germany | 0.3%
Landeskreditbank Baden-Wuerttemberg Foerderbank, 3.000%, 05/22/17	NOK		160		18,552

Description	Security Currency	Principal Amount (000)		Value
South Korea | 0.5%
The Korea Development Bank, 4.500%, 11/22/19	AUD		40	$	30,053
Total Quasi Government Bonds (Identified cost $92,550)					80,570
Supranationals | 6.3%
Asian Development Bank, 2.125%, 03/19/25	USD		60		58,556
Corporacion Andina de Fomento, 4.375%, 06/15/22	USD		85		90,491
Inter-American Development Bank, 6.000%, 12/15/17	NZD		55		39,610
International Bank for Reconstruction & Development, 2.375%, 09/26/16	CNY		780		116,701
International Finance Corp., 6.450%, 10/30/18	INR		4,160		62,107
Total Supranationals (Identified cost $379,826)					367,465
US Municipal Bonds | 4.9%
Alaska | 1.5%
Alaska State Qualified School Construction Bond, 5.342%, 08/01/27	USD		75		88,461
Texas | 2.3%
Texas State Build America Bond Series A, 4.123%, 04/01/25	USD		50		55,166
University of Texas Build America Bond Series B, 6.276%, 08/15/41	USD		70		78,016
					133,182
Utah | 1.1%
Utah State Build America Bond Series D, 4.554%, 07/01/24	USD		55		61,821
Total US Municipal Bonds (Identified cost $284,165)					283,464

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

22  Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Global Fixed Income Portfolio (continued)
US Treasury Securities | 4.2%
US Treasury Bond, 2.875%, 08/15/45	USD		62	$	60,099
US Treasury Note, 2.125%, 05/15/25	USD		190		187,509
Total US Treasury Securities (Identified cost $250,214)					247,608

Description	Shares		Value
Short-Term Investment | 3.3%
State Street Institutional Treasury Money Market Fund (Identified cost $195,875)		195,875	$	195,875
Total Investments | 99.0% (Identified cost $6,167,205) (b), (c)			$	5,791,082
Cash and Other Assets in Excess of Liabilities | 1.0%				60,078
Net Assets | 100.0%			$	5,851,160

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

Annual Report  23

Lazard Global Fixed Income Portfolio (continued)

Forward Currency Contracts open at December 31, 2015:

					Cost
		Settlement			on Origination		Unrealized			Unrealized
Currency	Counterparty	Date	Quantity		Date^		Appreciation			Depreciation
Forward Currency Purchase Contracts
AUD	CAN	02/18/16		39,976		29,000		$	67		$	—
AUD	CAN	02/18/16		54,617		39,916			—			203
AUD	CIT	02/18/16		67,070		48,400			368			—
CAD	CIT	02/18/16		22,516		16,917			—			643
CNH	JPM	02/05/16		537,699		83,293			—			1,834
CZK	CIT	02/18/16		434,940		17,368			144			—
EUR	CIT	02/18/16		23,669		26,000			—			250
EUR	CIT	02/18/16		99,239		108,656			—			691
EUR	CIT	02/18/16		610,936		660,776			3,881			—
EUR	HSB	02/18/16		177,092		191,537			1,127			—
HUF	JPM	02/18/16		192,933		659			5			—
INR	JPM	03/03/16		2,018,652		29,800			431			—
JPY	CIT	02/18/16		63,084,279		514,260			11,065			—
JPY	HSB	02/18/16		4,226,390		34,900			295			—
JPY	HSB	02/18/16		48,764,281		397,492			8,586			—
KRW	CIT	01/19/16		103,693,200		88,525			—			125
MXN	CIT	02/18/16		742,105		44,700			—			1,776
MYR	HSB	02/17/16		136,469		31,630			57			—
NZD	CAN	02/18/16		46,988		32,000			52			—
NZD	CIT	02/18/16		71,790		46,400			2,570			—
SEK	CIT	02/18/16		438,361		52,187			—			191
Total Forward Currency Purchase Contracts								$	28,648		$	5,713
Forward Currency Sale Contracts
AUD	CAN	02/18/16		282,147		199,955		$	—		$	5,200
AUD	CIT	02/18/16		20,426		14,723			—			129
AUD	CIT	02/18/16		41,562		30,185			—			36
AUD	HSB	02/18/16		88,301		63,400			—			805
CAD	CIT	02/18/16		18,925		14,000			321			—
CAD	RBC	02/18/16		30,797		22,070			—			189
CAD	RBC	02/18/16		39,866		29,932			1,118			—
CAD	RBC	02/18/16		139,105		104,633			4,090			—
CLP	JPM	01/08/16		20,839,680		30,309			908			—
CNH	JPM	02/05/16		537,699		83,517			2,058			—
CZK	CIT	02/18/16		301,757		12,050			—			100
EUR	CIT	02/18/16		5,615		5,975			—			134
EUR	CIT	02/18/16		10,453		11,319			—			54
EUR	CIT	02/18/16		34,975		38,000			—			50
GBP	CIT	02/18/16		7,301		11,000			235			—
GBP	CIT	02/18/16		41,152		62,529			1,857			—
GBP	HSB	02/18/16		3,875		5,835			123			—
GBP	HSB	02/18/16		63,749		96,871			2,883			—
HUF	JPM	01/22/16		285,652		973			—			11
HUF	JPM	01/22/16		17,552,618		60,448			—			19

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

24  Annual Report

Lazard Global Fixed Income Portfolio (concluded)

Forward Currency Contracts open at December 31, 2015 (concluded):

					Cost
		Settlement			on Origination		Unrealized			Unrealized
Currency	Counterparty	Date	Quantity		Date^		Appreciation			Depreciation
Forward Currency Sale Contracts (concluded)
HUF	JPM	01/22/16		17,653,210		61,697		$	884		$	—
INR	JPM	03/03/16		3,403,920		50,451			—			526
JPY	CIT	02/18/16		3,569,862		29,000			—			728
MXN	CIT	02/18/16		1,012,619		58,100			—			471
MXN	HSB	02/18/16		2,604,448		154,934			4,290			—
MXN	JPM	02/18/16		873,602		51,969			1,439			—
NOK	HSB	02/18/16		1,582,683		181,650			2,929			—
NZD	BRC	02/18/16		89,801		58,239			—			3,017
NZD	CAN	02/18/16		74,994		48,903			—			2,252
NZD	CAN	02/18/16		337,249		218,660			—			11,386
NZD	CIT	02/18/16		95,635		64,000			—			1,235
NZD	HSB	02/18/16		49,611		32,182			—			1,659
PHP	HSB	03/10/16		6,167,685		129,928			—			651
PLN	HSB	02/18/16		546,044		138,082			—			992
SEK	CIT	02/18/16		68,297		7,880			—			221
SGD	SCB	02/18/16		126,675		88,706			—			503
Total Forward Currency Sale Contracts									23,135			30,368
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts								$	51,783		$	36,081

^ In USD unless otherwise indicated.

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

Annual Report  25

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2015

(a) Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2015, the percentage of net assets for each Portfolio was as follows:

	Percentage of
Portfolio	Net Assets
US Corporate Income		34.1	%
US Short Duration Fixed Income		1.2

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

Portfolio	Aggregate Cost		Aggregate Gross Unrealized Appreciation		Aggregate Gross Unrealized Depreciation		Net Unrealized Depreciation
US Corporate Income	$	250,404,278	$	1,818,934	$	11,992,461	$	(10,173,527	)
US Short Duration Fixed Income		103,235,420		84,072		608,767		(524,695	)
Global Fixed Income		6,185,346		16,356		410,620		(394,264	)

(c) 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
CLP	—	Chilean Peso	MYR	—	Malaysian Ringgit
CNH	—	Yuan Renminbi	NOK	—	Norwegian Krone
CNY	—	Chinese Renminbi	NZD	—	New Zealand Dollar
CZK	—	Czech Koruna	PHP	—	Philippine Peso
EUR	—	Euro	PLN	—	Polish Zloty
GBP	—	British Pound Sterling	SEK	—	Swedish Krona
HUF	—	Hungarian Forint	SGD	—	Singapore Dollar
INR	—	Indian Rupee	USD	—	United States Dollar
JPY	—	Japanese Yen
Counterparty Abbreviations:
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
HSB	—	HSBC Bank USA NA

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

26  Annual Report

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

	Lazard
	Global Fixed
	Income
Industry*	Portfolio
Aerospace & Defense		1.4	%
Automotive		1.3
Banking		5.2
Cable Television		0.8
Electric		1.9
Energy Exploration & Production		0.6
Energy Integrated		2.8
Financial Services		3.3
Food & Beverages		2.1
Health Services		1.3
Machinery		0.9
Metals & Mining		2.2
Retail		1.1
Support Services		0.6
Technology Hardware		0.9
Telecommunications		3.5
Transportation		2.3
Subtotal		32.2
Foreign Government Obligations		48.1
Supranationals		6.3
US Municipal Bonds		4.9
US Treasury Securities		4.2
Short-Term Investment		3.3
Total Investments		99.0	%

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

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

Annual Report  27

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2015	Lazard US Corporate Income Portfolio				Lazard US Short Duration Fixed Income Portfolio			Lazard Global Fixed Income Portfolio
ASSETS
Investments in securities, at value		$	240,230,751		$	102,710,725		$	5,791,082
Foreign currency			—			—			10
Receivables for:
Capital stock sold			4,054,206			180,373			89
Interest			3,618,155			780,160			69,632
Amount due from Investment Manager (Note 3)			—			—			19,768
Gross unrealized appreciation on forward currency contracts			—			—			51,783
Total assets			247,903,112			103,671,258			5,932,364
LIABILITIES
Payables for:
Management fees			87,255			14,049			—
Accrued distribution fees			393			10			12
Investments purchased			1,832,181			—			—
Capital stock redeemed			196,482			417,578			49
Dividends			28,301			9,341			—
Gross unrealized depreciation on forward currency contracts			—			—			36,081
Other accrued expenses and payables			78,978			53,834			45,062
Total liabilities			2,223,590			494,812			81,204
Net assets		$	245,679,522		$	103,176,446		$	5,851,160
NET ASSETS
Paid in capital		$	261,666,875		$	103,925,705		$	6,318,754
Distributions in excess of net investment income			(28,301	)		(112,388	)		(75,332	)
Accumulated net realized loss			(5,785,525	)		(120,421	)		(30,827	)
Net unrealized appreciation (depreciation) on:
Investments			(10,173,527	)		(516,450	)		(376,123	)
Foreign currency and forward currency contracts			—			—			14,688
Net assets		$	245,679,522		$	103,176,446		$	5,851,160
Institutional Shares
Net assets		$	243,711,510		$	103,149,833		$	5,794,783
Shares of capital stock outstanding*			52,508,225			10,433,735			663,320
Net asset value, offering and redemption price per share		$	4.64		$	9.89		$	8.74
Open Shares
Net assets		$	1,968,012		$	26,613		$	56,377
Shares of capital stock outstanding*			421,909			2,688			6,452
Net asset value, offering and redemption price per share		$	4.66		$	9.90		$	8.74
Cost of investments in securities		$	250,404,278		$	103,227,175		$	6,167,205
Cost of foreign currency		$	—		$	—		$	10

* $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total.

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

28  Annual Report

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2015	Lazard US Corporate Income Portfolio				Lazard US Short Duration Fixed Income Portfolio			Lazard Global Fixed Income Portfolio
Investment Income
Income
Interest		$	12,428,227		$	1,620,493		$	174,858
Expenses
Management fees (Note 3)			1,244,802			278,964			30,753
Administration fees			95,267			72,318			51,232
Custodian fees			82,397			57,546			67,167
Professional services			48,297			40,178			41,363
Registration fees			39,052			44,894			41,368
Shareholders’ services			28,501			26,649			26,221
Shareholders’ reports			17,527			11,137			7,509
Directors’ fees and expenses			12,079			7,984			3,981
Distribution fees (Open Shares)			4,704			79			140
Other†			11,002			8,559			5,507
Total gross expenses			1,583,628			548,308			275,241
Management fees waived and expenses reimbursed			(333,180	)		(101,871	)		(209,664	)
Administration fees waived			—			—			(18,750	)
Total net expenses			1,250,448			446,437			46,827
Net investment income			11,177,779			1,174,056			128,031
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Forward Currency Contracts
Net realized gain (loss) on:
Investments			(2,509,607	)		(507,922	)		(368,967	)
Foreign currency and forward currency contracts			—			—			128,815
Total net realized loss on investments, foreign currency and forward currency contracts			(2,509,607	)		(507,922	)		(240,152	)
Net change in unrealized depreciation on:
Investments			(11,499,834	)		(676,638	)		(125,829	)
Foreign currency and forward currency contracts			—			—			(22,395	)
Total net change in unrealized depreciation on investments, foreign currency and forward currency contracts			(11,499,834	)		(676,638	)		(148,224	)
Net realized and unrealized loss on investments, foreign currency and forward currency contracts			(14,009,441	)		(1,184,560	)		(388,376	)
Net decrease in net assets resulting from operations		$	(2,831,662	)	$	(10,504	)	$	(260,345	)
† Includes interest on line of credit of		$	185		$	—		$	104

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

Annual Report  29

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

	Lazard US Corporate Income Portfolio
	Year Ended December 31, 2015				Year Ended December 31, 2014
Increase (Decrease) in Net Assets
Operations
Net investment income		$	11,177,779		$	10,068,292
Net realized gain (loss) on investments, foreign currency and forward currency contracts			(2,509,607	)		2,785,980
Net change in unrealized depreciation on investments, foreign currency and forward currency contracts			(11,499,834	)		(6,840,555	)
Net increase (decrease) in net assets resulting from operations			(2,831,662	)		6,013,717
Distributions to shareholders
From net investment income
Institutional Shares			(11,082,202	)		(9,957,360	)
Open Shares			(92,905	)		(110,932	)
Return of capital
Institutional Shares			(2,650	)		—
Open Shares			(22	)		—
Net decrease in net assets resulting from distributions			(11,177,779	)		(10,068,292	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			103,760,701			43,782,111
Open Shares			590,855			893,566
Net proceeds from reinvestment of distributions
Institutional Shares			10,752,436			9,590,665
Open Shares			66,616			83,595
Cost of shares redeemed
Institutional Shares			(42,854,354	)		(38,550,105	)
Open Shares			(398,515	)		(1,749,305	)
Net increase (decrease) in net assets from capital stock transactions			71,917,739			14,050,527
Redemption fees (Note 2(g))
Institutional Shares			714			230
Open Shares			299			—
Net increase in net assets from redemption fees			1,013			230
Total increase (decrease) in net assets			57,909,311			9,996,182
Net assets at beginning of year			187,770,211			177,774,029
Net assets at end of year*		$	245,679,522		$	187,770,211
*Includes distributions in excess of net investment income of		$	(28,301	)	$	(30,973	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year			37,885,592			34,990,674
Shares sold			21,150,137			8,712,871
Shares issued to shareholders from reinvestment of distributions			2,213,078			1,914,270
Shares redeemed			(8,740,582	)		(7,732,223	)
Net increase (decrease)			14,622,633			2,894,918
Shares outstanding at end of year			52,508,225			37,885,592
Open Shares
Shares outstanding at beginning of year			367,106			520,621
Shares sold			122,785			176,995
Shares issued to shareholders from reinvestment of distributions			13,627			16,577
Shares redeemed			(81,609	)		(347,087	)
Net increase (decrease)			54,803			(153,515	)
Shares outstanding at end of year			421,909			367,106

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

30  Annual Report

Lazard						Lazard
US Short Duration Fixed Income Portfolio						Global Fixed Income Portfolio
Year Ended December 31, 2015			Year Ended December 31, 2014			Year Ended December 31, 2015			Year Ended December 31, 2014
$	1,174,056		$	810,216		$	128,031		$	137,091
	(507,922	)		(373,550	)		(240,152	)		(55,920	)
	(676,638	)		(5,086	)		(148,224	)		(119,268	)
	(10,504	)		431,580			(260,345	)		(38,097	)
	(664,052	)		(444,786	)		—			(103,110	)
	(188	)		(373	)		—			(1,346	)
	(508,960	)		(365,461	)		(126,858	)		(32,214	)
	(144	)		(307	)		(1,173	)		(421	)
	(1,173,344	)		(810,927	)		(128,031	)		(137,091	)
	25,424,572			58,139,157			1,251,885			3,151,289
	87			9,999			2,586			22,418
	1,003,241			684,703			127,008			135,496
	528			421			1,013			1,530
	(36,799,462	)		(11,824,848	)		(1,696,122	)		(2,138,901	)
	(10,092	)		(302,038	)		—			(22,096	)
	(10,381,126	)		46,707,394			(313,630	)		1,149,736
	2			—			2			—
	1			—			—			30
	3			—			2			30
	(11,564,971	)		46,328,047			(702,004	)		974,578
	114,741,417			68,413,370			6,553,164			5,578,586
$	103,176,446		$	114,741,417		$	5,851,160		$	6,553,164
$	(112,388	)	$	(130,213	)	$	(75,332	)	$	(47,398	)
	11,477,378			6,787,754			698,777			580,570
	2,549,311			5,801,329			137,334			326,904
	100,774			68,339			14,136			14,115
	(3,693,728	)		(1,180,044	)		(186,927	)		(222,812	)
	(1,043,643	)		4,689,624			(35,457	)		118,207
	10,433,735			11,477,378			663,320			698,777
	3,637			32,684			6,051			5,931
	9			996			288			2,345
	53			42			113			159
	(1,011	)		(30,085	)		—			(2,384	)
	(949	)		(29,047	)		401			120
	2,688			3,637			6,452			6,051

Annual Report  31

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	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of year	$	4.91		$	5.01		$	5.01		$	4.78		$	4.88
Income (loss) from investment operations:
Net investment income (a)		0.24			0.26			0.30			0.33			0.35
Net realized and unrealized gain (loss)		(0.27	)		(0.09	)		—	(b)		0.23			(0.10	)
Total from investment operations		(0.03	)		0.17			0.30			0.56			0.25
Less distributions from:
Net investment income		(0.24	)		(0.27	)		(0.30	)		(0.33	)		(0.35	)
Return of capital		—	(b)		—			—			—			—
Total distributions		(0.24	)		(0.27	)		(0.30	)		(0.33	)		(0.35	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	4.64		$	4.91		$	5.01		$	5.01		$	4.78
Total Return (c)		-0.71	%		3.31	%		6.17	%		12.02	%		5.17	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	243,712		$	185,959		$	175,154		$	182,749		$	151,278
Ratios to average net assets:
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Gross expenses		0.69	%		0.71	%		0.73	%		0.71	%		0.73	%
Net investment income		4.94	%		5.28	%		6.00	%		6.67	%		7.13	%
Portfolio turnover rate		17	%		28	%		22	%		26	%		27	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of year	$	4.93		$	5.03		$	5.04		$	4.80		$	4.90
Income (loss) from investment operations:
Net investment income (a)		0.23			0.25			0.29			0.32			0.33
Net realized and unrealized gain (loss)		(0.27	)		(0.10	)		(0.01	)		0.24			(0.10	)
Total from investment operations		(0.04	)		0.15			0.28			0.56			0.23
Less distributions from:
Net investment income		(0.23	)		(0.25	)		(0.29	)		(0.32	)		(0.33	)
Return of capital		—	(b)		—			—			—			—
Total distributions		(0.23	)		(0.25	)		(0.29	)		(0.32	)		(0.33	)
Redemption fees		—	(b)		—			—			—	(b)		—	(b)
Net asset value, end of year	$	4.66		$	4.93		$	5.03		$	5.04		$	4.80
Total Return (c)		-0.98	%		3.01	%		5.64	%		11.89	%		4.89	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	1,968		$	1,811		$	2,620		$	4,249		$	11,602
Ratios to average net assets:
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Gross expenses		1.69	%		1.55	%		1.41	%		1.24	%		1.08	%
Net investment income		4.65	%		5.00	%		5.69	%		6.37	%		6.72	%
Portfolio turnover rate		17	%		28	%		22	%		26	%		27	%

(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.

32  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	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	9.99		$	10.03		$	10.31		$	10.23		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.10			0.09			0.11			0.14			0.17
Net realized and unrealized gain (loss)		(0.09	)		(0.04	)		(0.25	)		0.12			0.27
Total from investment operations		0.01			0.05			(0.14	)		0.26			0.44
Less distributions from:
Net investment income		(0.06	)		(0.05	)		(0.11	)		(0.14	)		(0.17	)
Net realized gains		—			—			(0.03	)		(0.04	)		(0.04	)
Return of capital		(0.05	)		(0.04	)		—			—			—
Total distributions		(0.11	)		(0.09	)		(0.14	)		(0.18	)		(0.21	)
Redemption fees		—	(b)		—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	9.89		$	9.99		$	10.03		$	10.31		$	10.23
Total Return (c)		0.05	%		0.49	%		-1.39	%		2.54	%		4.46	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	103,150		$	114,705		$	68,086		$	19,726		$	11,594
Ratios to average net assets (d):
Net expenses		0.40	%		0.40	%		0.40	%		0.40	%		0.40	%
Gross expenses		0.48	%		0.52	%		0.90	%		1.41	%		3.09	%
Net investment income		1.05	%		0.87	%		1.06	%		1.34	%		1.97	%
Portfolio turnover rate		57	%		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	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of period	$	10.01		$	10.03		$	10.31		$	10.23		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.17			0.06			0.06			0.14			0.14
Net realized and unrealized gain (loss)		(0.09	)		(0.02	)		(0.23	)		0.09			0.28
Total from investment operations		0.08			0.04			(0.17	)		0.23			0.42
Less distributions from:
Net investment income		(0.14	)		(0.02	)		(0.08	)		(0.11	)		(0.15	)
Net realized gains		—			—			(0.03	)		(0.04	)		(0.04	)
Return of capital		(0.05	)		(0.04	)		—			—			—
Total distributions		(0.19	)		(0.06	)		(0.11	)		(0.15	)		(0.19	)
Redemption fees		—	(b)		—			—			—			—
Net asset value, end of period	$	9.90		$	10.01		$	10.03		$	10.31		$	10.23
Total Return (c)		0.77	%		0.38	%		-1.70	%		2.24	%		4.20	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	27		$	36		$	328		$	4		$	103
Ratios to average net assets (d):
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Gross expenses		42.51	%		17.62	%		8.10	%		38.11	%		18.49	%
Net investment income		1.68	%		0.60	%		0.65	%		1.32	%		1.69	%
Portfolio turnover rate		57	%		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  33

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		12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period		$	9.30		$	9.51		$	10.16		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.19			0.22			0.23			0.17
Net realized and unrealized gain (loss)			(0.56	)		(0.21	)		(0.65	)		0.16
Total from investment operations			(0.37	)		0.01			(0.42	)		0.33
Less distributions from:
Net investment income			—			(0.17	)		—			(0.07	)
Net realized gains			—			—			(0.01	)		—
Return of capital			(0.19	)		(0.05	)		(0.22	)		(0.10	)
Total distributions			(0.19	)		(0.22	)		(0.23	)		(0.17	)
Redemption fees			—	(b)		—			—	(b)		—
Net asset value, end of period		$	8.74		$	9.30		$	9.51		$	10.16
Total Return (c)			-4.03	%		0.08	%		-4.13	%		3.30	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	5,795		$	6,497		$	5,522		$	4,814
Ratios to average net assets (d):
Net expenses			0.76	%		0.80	%		0.80	%		0.80	%
Gross expenses			4.26	%		4.12	%		4.94	%		8.81	%
Net investment income			2.08	%		2.28	%		2.38	%		2.24	%
Portfolio turnover rate			60	%		78	%		66	%		47	%
											For the Period
Selected data for a share of capital	Year Ended										3/30/12* to
stock outstanding throughout each period		12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period		$	9.30		$	9.51		$	10.16		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.16			0.19			0.20			0.15
Net realized and unrealized gain (loss)			(0.56	)		(0.21	)		(0.65	)		0.16
Total from investment operations			(0.40	)		(0.02	)		(0.45	)		0.31
Less distributions from:
Net investment income			—			(0.14	)		—			(0.06	)
Net realized gains			—			—			(0.01	)		—
Return of capital			(0.16	)		(0.05	)		(0.19	)		(0.09	)
Total distributions			(0.16	)		(0.19	)		(0.20	)		(0.15	)
Redemption fees			—			—	(b)		—			—
Net asset value, end of period		$	8.74		$	9.30		$	9.51		$	10.16
Total Return (c)			-4.31	%		-0.22	%		-4.41	%		3.08	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	56		$	56		$	56		$	55
Ratios to average net assets (d):
Net expenses			1.06	%		1.10	%		1.10	%		1.10	%
Gross expenses			27.72	%		20.84	%		28.86	%		26.46	%
Net investment income			1.80	%		2.01	%		2.09	%		2.02	%
Portfolio turnover rate			60	%		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.

34  Annual Report

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2015

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 “1940 Act”), as an open-end management investment company. The Fund is comprised of thirty-five no-load portfolios (each referred to as a “Portfolio”), as follows: Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard US Small Cap Equity Growth Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Equity Concentrated Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Equity Advantage Portfolio (commenced investment operations on May 29, 2015), Lazard International Small Cap Equity Portfolio, Lazard Global Equity Select Portfolio, Lazard Global Strategic Equity Portfolio, Lazard Managed Equity Volatility Portfolio (commenced investment operations on May 29, 2015), Lazard Emerging Markets Equity Portfolio, Lazard Emerging Markets Core Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Advantage Portfolio (commenced investment operations on May 29, 2015), Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi Asset Portfolio, Lazard Emerging Markets Debt Portfolio, Lazard Explorer Total Return Portfolio, Lazard Emerging Markets Income Portfolio, Lazard US Corporate Income Portfolio, Lazard US Short Duration Fixed Income Portfolio, Lazard Global Fixed Income Portfolio, Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard Capital Allocator Opportunistic Strategies Portfolio, Lazard Global Dynamic Multi Asset Portfolio, Lazard Enhanced Opportunities Portfolio, Lazard Fundamental Long/Short Portfolio, and Lazard Master Alternatives Portfolio. All Portfolios, other than US Equity Concentrated, International Equity Concentrated, Emerging Markets Debt, Explorer Total Return, Emerging Markets Income, US Realty Equity, Global Realty Equity, Enhanced Opportunities and Fundamental Long/Short Portfolios, are operated as “diversified” funds, as defined in the 1940 Act. Global Dynamic Multi Asset Portfolio had not commenced operations as of December 31, 2015. This report

includes only the financial statements of US Corporate Income, US Short Duration Fixed Income and Global Fixed Income Portfolios. The financial statements of other Portfolios are presented separately.

Effective November 29, 2013, an R6 Share class was classified for each Portfolio. 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, 2015, 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 US Strategic Equity, International Equity, International Strategic Equity and Emerging Markets Equity Portfolios had issued R6 Shares.

2. Significant Accounting Policies

The accompanying financial statements are presented in conformity with GAAP. The Fund is an investment company and therefore applies specialized accounting guidance in Accounting Standards Codification Topic 946. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements:

(a) Valuation of Investments–Net asset value (“NAV”) per share for each class of each Portfolio is determined on each day the New York Stock Exchange (“NYSE”) is open for business, generally as of the close of regular session trading on the NYSE (normally 4:00 p.m. Eastern time, the “Regular Closing Time”). When trading on the NYSE is unexpectedly closed prior to the Regular Closing Time, or an earlier scheduled close (such as on certain days around holidays when the NYSE is scheduled to close before 4:00 p.m.), and remains closed through the time of the Regular Closing Time (or an earlier scheduled close), the NAV of each class of each Portfolio may nonetheless be calculated as of the Regular Closing Time (or an earlier scheduled close) if, in the judgment of the Investment Manager, there is sufficient trading in

Annual Report  35

other markets between the unexpected close and the Regular Closing Time (or an earlier scheduled close) for securities for which the NYSE is usually considered the primary market. NAV per share is determined by dividing the value of the total assets of the Portfolio represented by such class, less all liabilities, by the total number of Portfolio shares of such class outstanding.

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 on among other things, trading in securities with similar characteristics, brokers’ quotations and/or a matrix system which considers such factors as other security prices, yields and maturities. Forward currency contracts generally are valued using quotations from an independent pricing service. Investments in money market funds are valued at the fund’s NAV.

The Valuation Committee of the Investment Manager, which meets periodically 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.

If a significant event materially affecting the value of securities occurs between the close of the exchange or market on which the security is principally traded and the time when a Portfolio’s NAV is calculated, or when current market quotations otherwise are determined not to be readily available or reliable (including restricted or other illiquid securities such as certain derivative instruments), such securities will be valued at their fair value as determined by, or in accordance with procedures approved by, the Board. Non-US securities may trade on days when a Portfolio is not open for business, thus affecting the value of 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. Interest income is accrued daily. The Portfolios amortize premiums and accrete discounts on fixed-income securities using the effective yield method.

A Portfolio may be subject to taxes imposed by foreign countries in which it invests. Such taxes are generally based upon income earned or capital gains (realized or unrealized). An affected Portfolio accrues and applies such taxes to net investment income, net realized gains and net unrealized gains concurrent with the recognition of income 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

36  Annual Report

gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.

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

The US dollar value of forward currency contracts is determined using quotations provided by an independent pricing service. Daily fluctuations in the value of such contracts are recorded as unrealized appreciation (depreciation) on forward currency contracts. When the contract is closed, a Portfolio records a realized gain (loss) equal to the difference between the value at the time it was opened and the value at the time it was closed.

During the year ended December 31, 2015, 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.

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, 2015, 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

Portfolio	Short-Term*		Long-Term*
US Corporate Income	$	915,648	$	1,593,959
US Short Duration Fixed Income		112,176		—
Global Fixed Income		22,707		5,839

* Non-Expiring

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, 2015, the following Portfolios elected to defer such losses as follows:

Portfolio	Post October Capital Loss Deferral		Late Year Ordinary Loss Deferral
US Short Duration Fixed Income	$	—	$	70,090
Global Fixed Income		—		30,573

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 (2012-2014), or expected to be taken in the Portfolios’ 2015 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

Annual Report  37

distribute these amounts, at least annually, to shareholders; however, to avoid taxation, a second distribution may be required. Differences in per share distributions, by class, are generally due to differences in class specific expenses.

Income 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 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 Gain
US Corporate Income	$	(2,672	)		$    2,672		$	—
US Short Duration Fixed Income		(509,104	)		17,113			491,991
Global Fixed Income		(184,522	)		(27,934	)		212,456

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2015		2014		2015		2014
US Corporate Income*	$	11,175,107	$	10,068,292	$	—	$	—
US Short Duration Fixed Income**		664,240		445,159		—		—
Global Fixed Income***		—		73,053		—		31,403

*	US Corporate Income Portfolio had return of capital distributions of $2,672 in 2015.
**	US Short Duration Fixed Income Portfolio had return of capital distributions of $509,104 and $365,768 in 2015 and 2014, respectively.
***	Global Fixed Income Portfolio had return of capital distributions of $128,031 and $32,635 in 2015 and 2014, respectively.

As of December 31, 2015, 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
US Corporate Income		$          —		$	(5,785,525	)	$	(10,201,828	)
US Short Duration Fixed Income		(70,090	)		(112,176	)		(566,993	)
Global Fixed Income		(30,573	)		(28,546	)		(408,475	)

(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 the US Short Duration Fixed Income Portfolio, may impose a 1.00% redemption fee (short-term trading fee) on Portfolio shares redeemed less than 30 days after such shares were acquired. The fees are retained by the Portfolios and are included as paid in capital on the Statements of Assets and Liabilities. The fees are also shown on the Statements of Changes in Net Assets.

(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

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

38  Annual Report

research, advice and supervision and furnishes continuously an investment program for each Portfolio consistent with its investment objectives 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 May 1, 2016 if annualized operating expenses (exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Funds” and extraordinary expenses, and excluding shareholder redemption fees or other transaction fees) 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 (a)		0.75			1.05

(a) From January 1, 2015 to February 28, 2015, percentages were 0.80% and 1.10%, respectively.

During the year ended December 31, 2015, 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		$ 317,358	$	—		$ 10,349	$	5,473
US Short Duration Fixed Income		88,648		—		79		13,144
Global Fixed Income		30,471		164,348		282		14,563

The Fund has entered into an administration agreement with State Street to provide certain administra-

tive 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 year ended December 31, 2015, State Street waived $18,750 of its fee for the Global Fixed Income Portfolio.

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

Under a distribution and servicing plan adopted pursuant to Rule 12b-1 under the 1940 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.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2015, each Director who is not an affiliated person of the Investment Manager or any of its affiliates was 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 Fund Complex”),

Annual Report   39

each a registered management investment company advised by the Investment Manager, and Lazard Alternative Emerging Markets 1099 Fund, a closed-end registered management investment company advised by an affiliate of the Investment Manager: (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. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Directors’ fees were allocated among the funds in the Lazard Fund Complex and Lazard Alternative Emerging Markets 1099 Fund at a rate of $5,000 per fund with the remainder allocated based upon each fund’s proportionate share of combined net assets. 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, 2015 were as follows:

Portfolio	Purchases		Sales
US Corporate Income	$	101,448,684	$	35,649,604
US Short Duration Fixed Income		37,046,663		17,899,246
Global Fixed Income		3,236,804		3,876,207

	US Government and Treasury Securities
Portfolio	Purchases		Sales
US Short Duration Fixed Income	$	27,165,744	$	31,662,438
Global Fixed Income		250,183		—

For the year ended December 31, 2015, no brokerage commissions were paid to affiliates of the Investment Manager or other affiliates of the Fund for portfolio transactions executed on behalf of the Fund.

6. Line of Credit

The Fund has a $50 million Line of Credit Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings was payable: from January 1, 2015 to

June 28, 2015, at the higher of the Federal Funds rate or Overnight LIBOR rate plus 1.00%, and from June 29, 2015 to December 31, 2015, at the higher of the Federal Funds rate or One-Month LIBOR rate plus 1.00%, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.10% per annum fee from January 1, 2015 to June 28, 2015 and 0.20% per annum from June 29, 2015 to December 31, 2015 on the unused portion of the commitment, payable quarterly in arrears. The Fund has also agreed to pay an upfront fee of 0.05% of the committed line amount. During the year ended December 31, 2015, 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 Corporate Income	$	1,966,667	$	5,100,000		1.13	%	3
Global Fixed Income		367,778		500,000		1.13		9

* 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, 2015 is categorized as Level 2 (see Note 9).

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. The Portfolios’ investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging

40  Annual Report

market currencies. 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 economies of countries with emerging markets may be based predominantly on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme debt burdens or volatile inflation rates. The securities markets of emerging market countries have historically been extremely volatile. These market conditions may continue or worsen. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies. 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.

(b) Fixed-Income and Debt Securities Risk—The market value of a debt security may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The debt securities market can be susceptible to increases in volatility and decreases in liquidity. Prices of bonds and other debt securities tend to move inversely with changes in interest rates. Increases in volatility and decreases in liquidity may be caused by a rise in interest rates (or the expectation of a rise in interest rates). Interest rate risk is usually greater for fixed-income securities with longer maturities or durations.

The Portfolios’ investments in lower-rated, higher-yielding securities (“junk bonds”) 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 per-

ceived decline, in the credit quality of a debt security (or any guarantor of payment on such security), the security’s value could fall, potentially lowering the Portfolios’ share price. The prices of non-investment grade securities, unlike investment grade debt securities, may fluctuate unpredictably and not necessarily inversely with changes in interest rates. The market for these securities may be less liquid and therefore these securities may be harder to value or sell at an acceptable price, especially during times of market volatility or decline. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening.

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).

(c) Mortgage-Related and Asset-Backed Securities Risk—US Short Duration Fixed Income Portfolio may invest in mortgage-related and asset-backed 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. 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.

Annual Report  41

The risks of asset-backed securities are similar to those of mortgage-related securities. However, asset-backed securities present certain risks that are not presented by mortgage-related securities. Primarily, these securities may provide the Portfolio with a less effective security interest in the related collateral than do mortgage-related securities.

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.

42  Annual Report

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2015:

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, 2015
US Corporate Income Portfolio
Corporate Bonds*	$	—	$	229,295,093		$	—	$	229,295,093
Short-Term Investment		10,935,658		—			—		10,935,658
Total	$	10,935,658	$	229,295,093		$	—	$	240,230,751
US Short Duration Fixed Income Portfolio
Asset-Backed Securities*	$	—	$	10,412,075		$	—	$	10,412,075
Corporate Bonds*		—		41,995,457			—		41,995,457
Municipal Bonds		—		5,355,323			—		5,355,323
US Government Securities		—		38,987,626			—		38,987,626
US Treasury Security		—		4,973,770			—		4,973,770
Short-Term Investment		986,474		—			—		986,474
Total	$	986,474	$	101,724,251		$	—	$	102,710,725
Global Fixed Income Portfolio
Assets:
Corporate Bonds*	$	—	$	1,800,176		$	—	$	1,800,176
Foreign Government Obligations*		—		2,815,924			—		2,815,924
Quasi Government Bonds*		—		80,570			—		80,570
Supranationals		—		367,465			—		367,465
US Municipal Bonds		—		283,464			—		283,464
US Treasury Securities		—		247,608			—		247,608
Short-Term Investment		195,875		—			—		195,875
Other Financial Instruments**
Forward Currency Contracts		—		51,783			—		51,783
Total	$	195,875	$	5,646,990		$	—	$	5,842,865
Liabilities:
Other Financial Instruments**
Forward Currency Contracts	$	—	$	(36,081	)	$	—	$	(36,081	)

*	Please refer to Portfolios of Investments (page 13 through 23) and Notes to Portfolios of Investments (page 27) for portfolio holdings by country and industry.
**	Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation/depreciation.

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, 2015.

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, 2015, the notional amounts of purchases and sales of forward currency contracts were $23,963,074 and $23,153,146, respectively, with average monthly notional exposure of approximately $6,300,000.

Annual Report  43

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2015:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	51,783
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	36,081

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2015 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	140,181
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(24,208	)

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

During the year ended December 31, 2015, US Corporate income and US Short Duration Fixed Income Portfolios did not trade in derivatives.

As of December 31, 2015, Global Fixed Income Portfolio holds derivative instruments that are eligible for offset in the Statement of Assets and Liabilities and are subject to master netting arrangements. A master netting arrangement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as any cash collateral, through 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, 2015:

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		$	51,783		$	—		$	51,783

				Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Assets Presented in Statement of Assets and Liabilities			Financial Instruments				Collateral Received			Net Amounts
Canadian Imperial Bank of Commerce		$	119		$	(119	)		$	—		$	—
Citibank NA			20,441			(6,834	)			—			13,607
HSBC Bank USA NA			20,290			(4,107	)			—			16,183
JPMorgan Chase Bank NA			5,725			(2,390	)			—			3,335
Royal Bank of Canada			5,208			(189	)			—			5,019
Total		$	51,783		$	(13,639	)		$	—		$	38,144

44  Annual Report

Description	Gross Amounts of Recognized Liabilities			Gross Amounts Offset in the Statement of Assets and Liabilities			Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities
Forward Currency Contracts		$	36,081		$	—		$	36,081

				Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Liabilities Presented in Statement of Assets and Liabilities			Financial Instruments				Collateral Pledged			Net Amounts
Barclays Bank PLC		$	3,017		$	—			$	—		$	3,017
Canadian Imperial Bank of Commerce			19,041			(119	)			—			18,922
Citibank NA			6,834			(6,834	)			—			—
HSBC Bank USA NA			4,107			(4,107	)			—			—
JPMorgan Chase Bank NA			2,390			(2,390	)			—			—
Royal Bank of Canada			189			(189	)			—			—
Standard Chartered Bank			503			—				—			503
Total		$	36,081		$	(13,639	)		$	—		$	22,442

11. Subsequent Events

Management has evaluated subsequent events affecting the Fund through the issuance of the financial state-

ments and has determined that there were no subsequent events that required adjustment or disclosure.

Annual Report  45

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

To the Board of Directors of The Lazard Funds, Inc. and the Shareholders of Lazard US Corporate Income Portfolio, Lazard US Short Duration Fixed Income Portfolio and Lazard Global Fixed Income Portfolio:

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 “Funds”) as of December 31, 2015, and the related statements of operations for the year then ended, and the statements of changes in net assets and the financial highlights for each of the two years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the periods presented on or before December 31, 2013 were audited by other auditors whose report, dated February 28, 2014, expressed an unqualified opinion on those financial highlights.

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 Portfolios are not required to have, nor were we engaged to perform, an audit of their 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 Portfolios’ 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, 2015, 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 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, 2015, the results of their operations for the year then ended, and the changes in their net assets and the financial highlights for each of the two years in 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 29, 2016

46  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 (62)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012) Cornell Law School, Visiting Professor of Practice (2015 – present); previously, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)
Kenneth S. Davidson (70)	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 (53)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present) TIAA-CREF Funds (65 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 (44)	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)
Richard Reiss, Jr. (71)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present) Resource Americas, Inc., a real estate management company, Director (2016 – present) O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (68)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

Annual Report  47

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)
Interested Directors(4):
Charles L. Carroll (55)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (55)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present) Lazard Ltd, Vice Chairman and Director (2010 – present)

(1)	The address of each Director of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each Director serves as a Director for each of the funds in the Lazard Fund Complex (comprised of, as of January 31, 2016, 41 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 funds in the Lazard Fund Complex.
(3)	“Independent Directors” are not “interested persons” (as defined in the 1940 Act) of the Fund.
(4)	Messrs. Bhutani and Carroll are “interested persons” (as defined in the 1940 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.

48  Annual Report

Name (Age) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) During the Past Five Years
Officers(3):
Nathan A. Paul (43)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Stephen St. Clair (57)	Treasurer (May 2003)	Vice President of the Investment Manager
Mark R. Anderson (45)	Chief Compliance Officer (September 2014)	Director and Chief Compliance Officer 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 (40)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) and Director of Legal Affairs (since July 2015) of the Investment Manager
Shari L. Soloway (34)	Assistant Secretary (November 2015)	Senior Vice President, Legal and Compliance, of the Investment Manager (since September 2015) Vice President and Associate General Counsel of GE Asset Management (July 2011 – September 2015) Associate at Clifford Chance US LLP (2006 – July 2011)
Cesar A. Trelles (41)	Assistant Treasurer (December 2004)	Vice President of the Investment Manager

(1)	The address of each officer of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each officer serves for an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation or removal. Each officer serves in the same capacity for the other funds in the Lazard Fund Complex.
(3)	In addition to Charles L. Carroll, President, whose information is included in the Interested Directors section.

Annual Report  49

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

Tax Information

Year Ended December 31, 2015

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2015:

Of the dividends paid by the Portfolios, none are qualified dividend income.

Of the dividends paid by the Portfolios, no dividends qualify for the dividends received deduction available to corporate shareholders.

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

Proxy Voting

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

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

Form N-Q

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

50  Annual Report

NOTES

NOTES

NOTES

NOTES

The Lazard Funds, Inc.

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

Investment Manager

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

Distributor

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

Custodian

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

Transfer Agent and Dividend Disbursing Agent

Boston Financial Data Services, Inc.
P.O. Box 8514
Boston, Massachusetts 02266-8514
Telephone: 800-986-3455

Independent Registered Public Accounting Firm

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

Legal Counsel

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

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

Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardnet.com
LZDPS026

Lazard Funds Annual Report

December 31, 2015

Real Asset Funds

Lazard US Realty Income Portfolio

Lazard US Realty Equity Portfolio

Lazard Global Realty Equity Portfolio

Lazard Global Listed Infrastructure Portfolio

PRIVACY NOTICE Revised September 30, 2015

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Questions? Call 800-823-6300 or go to http://www.LazardNet.com

Who we are
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Other important information
Lazard Asset Management (Canada), Inc. does not disclose any non-public personal information about its customers or former customers to any third party, except as permitted by or required by any applicable law, including the laws of the United States and Canada.

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
7	Performance Overviews
11	Information About Your Portfolio’s Expenses
13	Portfolio Holdings Presented by Sector
14	Portfolios of Investments
14	Lazard US Realty Income Portfolio
15	Lazard US Realty Equity Portfolio
16	Lazard Global Realty Equity Portfolio
18	Lazard Global Listed Infrastructure Portfolio
21	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
47	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 2015, global equity market volatility increased due to the prospect of a debt default by Greece, uncertain global monetary policy, and oil price instability. In the US, markets rose modestly as the labor market improved and corporate earnings generally exceeded expectations. Japanese equities extended their impressive streak as Abenomics reforms began to pay dividends. In Europe, the economic recovery continued, but investor enthusiasm remained tepid as countries in the region made mixed progress. Meanwhile, emerging markets assets recorded another difficult year due to economic and political challenges and uncertainty about the possibility of interest rate increases in the US.

Interest rates diverged around the world after the US Federal Reserve announced its highly anticipated rate hike on December 16, and the US yield curve flattened as shorter-maturity yields rose slightly more than those with longer maturities. Currencies were volatile in 2015 and the US dollar strengthened against most of its global counterparts. Investor enthusiasm for European bonds with very low or negative yields waned as the effects of European Central Bank bond repurchases began to fade.

At Lazard Asset Management, we remain focused on active management and are committed to responsibly pursuing the Portfolios’ investment objectives so that you, a valued shareholder in Lazard Funds, achieve your financial goals.

We appreciate your continued confidence in our investment management capabilities, and feel privileged that you have turned to Lazard for your investment needs.

Sincerely,

Lazard Asset Management LLC

2  Annual Report

The Lazard Funds, Inc. Investment Overviews

Real Estate Securities

Global property stocks finished flat for the year, generally performing in line with the overall equity markets. Amongst the major listed real estate markets China, Germany, the US, and the United Kingdom were the best performers in 2015. Using the same comparison criterion Brazil, India, Mexico, and Canada fared the worst. The outperformers were helped by regulatory intervention (specifically in China) and domestic interest rates that continue to stay at an all-time low level. The underperformers were affected most by the impact of declining oil prices hurting domestic output (specifically in Brazil and Canada), and the fear of a Fed rate hike.

Global Listed Infrastructure

Equity markets in 2015 experienced significant volatility, and saw many markets with negative returns. Following three consecutive years in positive territory, Australian equities represented by the ASX200, along with most other markets, slipped into negative territory in 2015. Europe and Japan bucked the trend, both delivering positive returns across the 12-month period. In the US, both the Dow Jones Industrial Average and S&P 500^® Index landed in the red. The MSCI World^® Index fell by 2.1% (in US dollar terms), dragged down by a torrid year in emerging markets, which shed 15% (in US dollar terms). Key economic events also marked 2015.

The US Federal Reserve relieved the financial community of the seemingly interminable “will they... won’t they” speculation with December’s hike marking the first upward move for almost 10 years. Elsewhere, the Reserve Bank of Australia surprised the market in February when it cut the cash rate at its first policy gathering for the year. The euro zone was remarkably resilient through the course of a difficult year. Mario Draghi, President of the European Central Bank, unveiled a quantitative easing program which combined monthly purchases of public and private securities. A six-month extension to the duration takes the program out to March 2017.

Lazard US Realty Income Portfolio

For the year ended December 31, 2015, the Lazard US Realty Income Portfolio’s Institutional Shares posted a total return of -9.50%, while Open Shares posted a total return of -9.64%, as compared with the 4.65% blended index return for the 50% FTSE NAREIT All Equity

REITs^® Index/50% Wells Fargo Hybrid and Preferred Securities REIT^® Index (the “Hybrid Index”).

The Portfolio’s relative allocation between common and preferred securities hurt performance, as did individual security selection. On average, the Portfolio was invested as follows: 77% in common securities and 22% in preferred securities, with the remainder in cash. On a weighted average basis, the Portfolio’s preferred stock holdings outperformed their benchmark index but its common stock holdings underperformed their index.

In terms of individual securities, an overweight in Education Realty Trust, a student housing real estate investment trust (REIT), contributed most to relative performance. The company outperformed sharply in the second half of the year on a positive third-quarter earnings surprise and strong 2016 guidance. The second-largest contributor to relative performance was lack of exposure to Host Hotels, a lodging REIT, which underperformed as national lodging fundamentals softened during the third and fourth quarters. An overweight to Excel Trust, a shopping center REIT that was acquired at a premium to its prevailing share price, was the third-largest contributor to relative performance.

Detracting most from relative performance was an overweight position in NorthStar Realty Finance, a diversified REIT, which underperformed due to negative market sentiment around the company’s corporate structure, despite trading at among the highest discounts to replacement cost/NAV (net asset value) in our analysis. The second-largest detractor was an overweight position in WP Glimcher, a US mall REIT, as the company was affected by retail bankruptcies and concerns over the impact of online retail. An overweight position in LaSalle Hotel Properties, a lodging REIT, was the third-largest detractor from relative performance. The company disappointed by missing the consensus third-quarter earnings estimate and providing weaker guidance for the fourth quarter.

Lazard US Realty Equity Portfolio

For the year ended December 31, 2015, the Lazard US Realty Equity Portfolio’s Institutional Shares posted a total return of 4.63%, while Open Shares posted a total return of 4.34%, as compared with the 2.82% return for the FTSE NAREIT All Equity REITs Index.

Annual Report  3

Both stock selection and subsector allocation contributed positively to relative performance.

In terms of individual securities, the Portfolio benefited most from an overweight in Extra Space Storage, a self-storage REIT, which outperformed on exceptional organic growth complimented by a large, accretive acquisition. Also helping the Portfolio was an overweight position in Strategic Hotels & Resorts, a lodging REIT, which was acquired at a notable premium to its prevailing share price. The third leading contributor to relative performance was an overweight in Equity LifeStyle Properties, a manufactured homes REIT, which has beat annual earnings estimates for six consecutive years.

An overweight position in WP Glimcher, a US mall REIT, hurt relative performance most, as the company was affected by retail bankruptcies and concerns over the impact of online retail. The second-largest detractor from relative performance was an overweight position in Pebblebrook Hotel Trust, a lodging REIT, which underperformed after missing second- and third-quarter earnings estimates. The third-largest detractor form relative performance was lack of exposure to Equity Residential, an apartment REIT, which modestly outperformed its apartment peers.

Lazard Global Realty Equity Portfolio

For the year ended December 31, 2015, the Lazard Global Realty Equity Portfolio’s Institutional Shares posted a total return of 0.36%, while Open Shares posted a total return of -0.01%, as compared with the -1.19% return for the FTSE EPRA/NAREIT Global^® Index.

Country allocation, stock selection, and currency exposure were all positive contributors to relative performance.

In terms of individual securities, the Portfolio’s top contributor was an overweight position in CK Hutchison Holdings, a Hong Kong–listed holding company, which outperformed on the back of a successful reorganization. The second-largest contributor was an overweight position in Equinix, a US-based data center REIT, which successfully completed its REIT conversion and repeatedly surprised with higher growth estimates. An overweight position in Equity LifeStyle Properties, a

manufactured homes REIT, was the third-largest contributor to relative performance. The company has beat annual earnings estimates for six consecutive years.

An overweight position in WP Glimcher, a US mall REIT, hurt relative performance most, as the company was impacted by retail bankruptcies and concerns over the impact of online retail. The Portfolio also negatively impacted by an overweight position in Emaar Properties, a property company based in the United Arab Emirates, which underperformed in sympathy with oil prices despite no apparent deterioration of its business. An overweight position in Boardwalk REIT, a Canadian apartment company, also hurt relative performance as anxiety over lower oil prices caused concern over the company’s future rents and occupancy.

Lazard Global Listed Infrastructure Portfolio

For the year ended December 31, 2015, the Lazard Global Listed Infrastructure Portfolio’s Institutional Shares posted a total return of 9.30%, while Open Shares posted a total return of 9.06%, as compared with the -0.61% return for the Custom Infrastructure Index (USD Hedged)¹ and -0.87% return for the MSCI World Index.

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

Stock comments below are written on the basis of performance contribution in local currency terms.

As a group, European infrastructure stocks were the main positive contributors for the year. In spite of continued tensions in Greece throughout 2015, we believe that Europe is much better prepared than four years ago to deal with a Greek exit from the euro zone, and see limited risk to the domestic economic performance of Italy, Spain, or France or, moreover, to the performance of the preferred infrastructure stocks we own in the region.

A French company, Vinci, was the largest positive contributor to performance during the period. In the third quarter of 2015, the company announced that revenue growth had resumed after five consecutive quarterly

4  Annual Report

declines. However, the declines in revenue had come from its contracting business, a small contributor to profit and value of Vinci. Vinci Concessions, which includes both toll roads and airports, and is by far the largest profit earning business within the company, reported increasing revenues for the first three quarters of 2015. Revenues were up 3.8% versus the same period in 2014. Revenue rose 2.8% during the third quarter of 2015 at Vinci Autoroutes (toll roads), where traffic growth continued in the third quarter of 2015, and jumped 11.7% during this period at Vinci Airports, where passenger traffic growth remained strong. These positive trends continued throughout the remainder of 2015.

Atlantia, owner of Italy’s largest motorway network, Autostrade per l’Italia, continued to demonstrate strong traffic growth throughout 2015, with traffic growth as of the third quarter 2015, up and over 3.8% compared to the same period in 2014. Atlantia also holds the concession for Rome Airport, Aeroporti di Roma, which reported total passenger traffic in the first nine months of 2015 of 35.6 million, up 6.8% more than the same period in 2014. Although Atlantia stock price has re-rated (stock price has increased on positive news due to profits) strongly on the back of these improving traffic outcomes, it remains one of the more attractively priced stocks within our preferred infrastructure universe and hence remains a large position in your Portfolio.

Italian regulated electricity and gas transmission network owners Terna and Snam performed strongly throughout 2015 with a raft of positive regulatory determinations to take effect in early 2016. The regulatory weighted average cost of capital formula should result in real pre-tax allowed returns of around 5.2%, which is a very good outcome in the current low interest rate environment. The key positive difference is that the regulator has also allowed an additional 50 basis points to the allowed return that compensates for part of the tax credit lost now that utilities pay the nominal corporate tax rate. This is yet another example of how preferred infrastructure companies often receive regulatory outcomes which balance the need for returns to capital with the needs of competitive pricing for consumers. In addition, late in December the Italian regulator

announced the final terms of Terna’s regulatory framework regarding work-in-progress investments and investment incentives, which were both better than expected. We remain large owners of Terna and Snam, which we currently consider to be two of the most attractive large-cap European companies in our preferred infrastructure universe.

Luxembourg satellite operator SES was among the largest detractors to performance. The company did not meet its initial guidance for the year due to the impact of a stronger US dollar in fixed data/government services and reduced capacity available to serve this vertical, as well as due to the delay of up to six months for the launch of its new satellite SES-9. We see short-term currency movements and minor launch delays as timing issues and not structural impediments or changes to our long-term investment thesis. However, we believe the deterioration in the SES share price since April reflects a broader concern of the market around competition for developed markets television distribution. We do not see this as being a binary outcome; satellite will always have easy scale-up, but OTT (“over-the-top”) will do on-demand better, leaving room for both technologies in the marketplace. Video services represent around 70% of SES’s revenues, with the majority of this coming from developed markets, such as Europe and the US. Our investment thesis is predicated around a return to normal long-term levels of per-satellite profitability and gives no benefit for the additional payload of transponders per satellite or the shift to high definition of ultra-high definition platforms, both of which should be positive relative to historical norms of satellite profitability. Throughout the latter half of 2015 we were increasing our position in SES.

Both of our US East Coast rail company investments, CSX and Norfolk Southern (NSC), detracted from performance during 2015. NSC and CSX share prices continue to be hit by poor news on coal, with export coal volumes down 25%–30%. Our thesis for both stocks had always assumed a return to more normal export coal volumes, as we saw the large increase in demand since 2013 as a short-term cyclical phenomenon. The domestic decline in the use of coal by US utilities we see as partly cyclical, due to the tremendous decline in the US domestic gas prices, and partly structural as

Annual Report  5

utilities shift away from fossil fuels to renewable energy sources. The railways charge considerably more for transporting coal than for intermodal (i.e., containers that can also be put on ships or trucks), so while they have maintained total volumes transported—by switching volumes from coal to intermodal, projection for total revenue has fallen as a result. For both stocks, we consider that there are still significant cost efficiencies to be gained and we believe the businesses should continue to improve profitability. Our long-run sustainable level of profitability for both stocks, which arbitrarily caps returns based on the light-handed regulatory arrangement they enjoy, remains unchanged.

We were disappointed that during the year as Australian company, Spark Infrastructure Group (SKI), part of the New South Wales Electricity Networks consortium (SKI holds a 15.01% position), which was awarded a 99-year lease of power network TransGrid for A$10.4 billion, implying a Regulatory Asset Base (RAB) multiple of 1.64 times fiscal year 2015 RAB. We consider this a meaningful premium to the value of the TransGrid and consequently, following the acquisition of TransGrid, our valuation for SKI has fallen by around 10%. Subsequently, SKI has announced a A$405 million non-renounceable equity raising to fund its A$734 million investment with the difference funded through

existing cash balance (A$140 million) and A$205 million of new debt.

SKI has also given distribution guidance of 12 cents per share (cps) for fiscal year 2015 and at least 12.5/13/13.5 cps for fiscal years 2016, 2017, and 2018 respectively (all figures in Australian dollars). This is consistent with our previous expectations. The leverage in the acquisition is significant with TransGrid geared at around 86% net debt to RAB (ND/RAB), and is set to grow until the fiscal year 2019 regulatory reset. This compares to SKI currently at 75% on a look-through basis. As mentioned, SKI has also debt-funded part of its equity contribution (for the TransGrid acquisition), thus for SKI its investment is effectively leveraged at ND/RAB 110%. The low EBITDA², high multiple paid combined with high leverage, and a moderate capex program makes it questionable to us whether TransGrid can support a proposed A$0.3 billion distribution without drawing down further debt. Thus the quality of SKI’s indicated cash flow accretion is very low. At this time we consider the acquisition to have an adverse impact on shareholder value despite SKI holding a relatively small position in the consortium. We remain owners of SKI in spite of this decision by management as we believe the other assets of SKI to hold considerably more value than the market price after deducting the value impact of the TransGrid acquisition.

Notes to Investment Overviews:

Total 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. A period of less than one year is not annualized.

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

The views of the Investment Manager and the securities described in this report are as of December 31, 2015; these views and portfolio holdings may have changed subsequent to this date. Nothing herein should be construed as a recommendation to buy, sell, or hold a particular security. There is no assurance that the securities discussed herein will remain in a Portfolio at the time you receive this report, or that securities sold will not have been repurchased. The specific securities discussed may, in aggregate, represent only a small percentage of a Portfolio’s holdings. It should not be assumed that securities identified and discussed were, or will be, profitable, or that the investment decisions made in the future will be profitable, or equal the investment performance of the securities discussed herein.

The views and opinions expressed are provided for general information only, and do not constitute specific tax, legal, or investment advice to, or recommendations for, any person. There can be no guarantee as to the accuracy of any outlooks for markets, sectors and securities as discussed herein. You should read the Fund’s prospectus or each Portfolio’s summary prospectus for a more detailed discussion of each Portfolio’s investment objectives, strategies, risks and fees.

1	The Custom Infrastructure Index (USD Hedged) is an index created by the Fund’s Investment Manager, which is the performance of the UBS Global 50/50 Infrastructure & Utilities® Index (Hedged USD) for all periods through March 31, 2015, when the index ceased to be published, and the FTSE Developed Core Infrastructure 50/50® (100% Hedged to USD Net Tax) Index for all periods thereafter.
2	Earnings Before Interest, Tax, Depreciation, and Amortization

6  Annual Report

The Lazard Funds, Inc. Performance Overviews

Lazard US Realty Income Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2015

	Institutional Shares						Open Shares
	One			Since			One			Five			Since
	Year			Inception		†	Year			Years			Inception		†
US Realty Income Portfolio**		-9.50	%		10.37%			-9.64	%		6.55	%		9.73%
FTSE NAREIT All Equity REITs Index		2.82	%		15.33%			2.82	%		11.91	%		7.99%
Wells Fargo Hybrid and Preferred Securities REIT Index		6.13	%		8.19%			6.13	%		8.11	%		11.91%
Hybrid Index		4.65	%		11.94%			4.65	%		10.23	%		10.50%
S&P 500 Index		1.38	%		17.23%			1.38	%		12.57	%		8.82%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Institutional Shares was September 26, 2011 and for Open Shares was July 30, 2008.

Annual Report  7

Lazard US Realty Equity Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2015

	Institutional Shares						Open Shares
	One			Since			One			Five			Since
	Year			Inception		†	Year			Years			Inception		†
US Realty Equity Portfolio**		4.63	%		17.01%			4.34	%		11.97	%		21.03%
FTSE NAREIT All Equity REITs Index		2.82	%		15.36%			2.82	%		11.91	%		16.28%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Institutional Shares was September 26, 2011 and for Open Shares was December 31, 2008.

8  Annual Report

Lazard Global Realty Equity Portfolio

Comparison of Changes in Value of $10,000 Investment in the Open Shares of Lazard Global Realty Equity Portfolio, FTSE EPRA/NAREIT Global^® Index 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, 2015

	Institutional Shares						Open Shares
	One			Since			One			Five			Since
	Year			Inception		†	Year			Years			Inception		†
Global Realty Equity Portfolio**		0.36	%		12.03%			-0.01	%		5.01	%		15.18%
FTSE EPRA/NAREIT Global Index		-1.19	%		11.07%			-1.19	%		6.12	%		12.29%
Global Realty Linked Index		0.98	%		12.23%			0.98	%		5.88	%		12.59%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Institutional Shares was September 26, 2011 and for Open Shares was December 31, 2008.

Annual Report  9

Lazard Global Listed Infrastructure Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Listed Infrastructure Portfolio, The Custom Infrastructure Index (USD Hedged) and MSCI World^® Index*

Average Annual Total Returns*

Periods Ended December 31, 2015

	One	Five	Since
	Year	Years	Inception	†
Institutional Shares**	9.30%	13.65%	12.44%
Open Shares**	9.06%	13.29%	12.08%
The Custom Infrastructure Index (USD Hedged)	-0.61%	9.90%	8.90%
MSCI World Index	-0.87%	7.59%	8.28%

*	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.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP and may differ from amounts reported in the financial highlights.
	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 Custom Infrastructure Index (USD Hedged) is an index created by the Portfolio’s Investment Manager, which is the performance of the UBS Global 50/50 Infrastructure & Utilities® Index (Hedged USD) for all periods through March 31, 2015, when the index ceased to be published, and the FTSE Developed Core Infrastructure 50/50® (100% Hedged to USD Net Tax) Index for all periods thereafter. 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 FTSE Developed Core Infrastructure 50/50 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 and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was December 31, 2009.

10  Annual Report

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

Expense Example

As a shareholder in a Portfolio of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from July 1, 2015 through December 31, 2015 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 shareholder reports of other mutual 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.

Annual Report  11

	Beginning	Ending	Expenses Paid	Annualized Expense
	Account Value	Account Value	During Period*	Ratio During Period
Portfolio	7/1/15	12/31/15	7/1/15-12/31/15	7/1/15-12/31/15
US Realty Income
Institutional Shares
Actual	$1,000.00	$   963.40	$5.10	1.03%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.01	$5.24	1.03%
Open Shares
Actual	$1,000.00	$   963.30	$6.33	1.28%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.75	$6.51	1.28%
US Realty Equity
Institutional Shares
Actual	$1,000.00	$1,089.40	$5.53	1.05%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.91	$5.35	1.05%
Open Shares
Actual	$1,000.00	$1,088.50	$6.90	1.31%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.60	$6.67	1.31%
Global Realty Equity
Institutional Shares
Actual	$1,000.00	$1,005.60	$5.06	1.00%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.16	$5.09	1.00%
Open Shares
Actual	$1,000.00	$1,003.80	$6.57	1.30%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.65	$6.62	1.30%
Global Listed Infrastructure
Institutional Shares
Actual	$1,000.00	$ 1,057.40	$5.03	0.97%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.32	$4.94	0.97%
Open Shares
Actual	$1,000.00	$1,056.60	$6.38	1.23%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.00	$6.26	1.23%

* 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, 2015

										Lazard
	Lazard			Lazard			Lazard			Global Listed
	US Realty Income			US Realty Equity			Global Realty			Infrastructure
Sector*	Portfolio			Portfolio			Equity Portfolio			Portfolio
Consumer Discretionary		—	%		—	%		—	%		8.8	%
Financials		100.0			99.2			99.6			—
Industrials		—			—			—			42.8
Utilities		—			—			—			44.1
Short-Term Investments		—			0.8			0.4			4.3
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, 2015

Description	Shares		Value
Lazard US Realty Income Portfolio
Preferred Stocks | 24.7%
Real Estate | 24.7%
DDR Corp., Series K, 6.250%		40,541	$	1,013,525
Digital Realty Trust, Inc., Series G, 5.875%		50,400		1,256,976
General Growth Properties, Inc., Series A, 6.375%		69,570		1,725,336
Kilroy Realty Corp., Series H, 6.375%		17,700		449,934
Kimco Realty Corp.: Series J, 5.500%		58,500		1,443,780
Series K, 5.625%		17,872		448,230
National Retail Properties, Inc., Series E, 5.700%		30,800		764,148
Pebblebrook Hotel Trust, Series C, 6.500%		116,886		2,956,047
PS Business Parks, Inc., Series U, 5.750%		90,900		2,281,590
Regency Centers Corp., Series 7, 6.000%		11,143		284,815
Taubman Centers, Inc., Series K, 6.250%		58,167		1,483,258
VEREIT, Inc., Series F, 6.700%		88,833		2,185,292
Vornado Realty Trust, Series K, 5.700%		69,906		1,765,826
Total Preferred Stocks (Identified cost $17,583,380)				18,058,757
Real Estate Investment Trusts | 73.7%
Ashford Hospitality Trust, Inc.		535,800		3,380,898
Blackstone Mortgage Trust, Inc., Class A		130,473		3,491,457
Chesapeake Lodging Trust		92,400		2,324,784

Description	Shares		Value
Colony Capital, Inc., Class A		181,085	$	3,527,536
Columbia Property Trust, Inc.		76,600		1,798,568
Digital Realty Trust, Inc.		9,300		703,266
Education Realty Trust, Inc.		27,429		1,039,010
EPR Properties		34,831		2,035,872
Farmland Partners, Inc.		155,500		1,705,835
HCP, Inc.		20,654		789,809
LaSalle Hotel Properties		150,800		3,794,128
Medical Properties Trust, Inc.		300,555		3,459,388
NorthStar Realty Finance Corp.		206,900		3,523,507
Pebblebrook Hotel Trust		56,400		1,580,328
Pennsylvania Real Estate Investment Trust		45,000		984,150
Prologis, Inc.		16,703		716,893
Ramco-Gershenson Properties Trust		29,100		483,351
Retail Opportunity Investments Corp.		43,100		771,490
Simon Property Group, Inc.		4,100		797,204
Sovran Self Storage, Inc.		2,800		300,468
STAG Industrial, Inc.		163,399		3,014,712
Starwood Property Trust, Inc.		172,032		3,536,978
Sun Communities, Inc.		6,500		445,445
The GEO Group, Inc.		70,700		2,043,937
VEREIT, Inc.		436,500		3,457,080
Weyerhaeuser Co.		16,200		485,676
WP Carey, Inc.		6,169		363,971
WP Glimcher, Inc.		323,715		3,434,616
Total Real Estate Investment Trusts (Identified cost $65,007,558)				53,990,357
Total Investments | 98.4% (Identified cost $82,590,938) (a)			$	72,049,114
Cash and Other Assets in Excess of Liabilities | 1.6%				1,145,260
Net Assets | 100.0%			$	73,194,374

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

14  Annual Report

Description	Shares		Value
Lazard US Realty Equity Portfolio
Common Stocks | 3.4%
Commercial Services | 1.5%
Realogy Holdings Corp. (b)		38,920	$	1,427,196
Real Estate | 1.9%
CBRE Group, Inc., Class A (b)		54,972		1,900,932
Total Common Stocks (Identified cost $3,349,688)				3,328,128
Real Estate Investment Trusts | 95.5%
Acadia Realty Trust		12,413		411,491
American Homes 4 Rent, Class A		203,322		3,387,345
American Tower Corp.		70,154		6,801,430
Apartment Investment & Management Co., Class A		103,176		4,130,135
AvalonBay Communities, Inc.		33,524		6,172,774
Boston Properties, Inc.		25,778		3,287,726
Colony Capital, Inc., Class A		82,520		1,607,490
Columbia Property Trust, Inc.		71,141		1,670,391
Empire State Realty Trust, Inc., Class A		68,079		1,230,188
Equinix, Inc.		13,902		4,203,965
Equity Lifestyle Properties, Inc.		41,669		2,778,072
Essex Property Trust, Inc.		23,278		5,572,986
Extra Space Storage, Inc.		43,350		3,823,903
Federal Realty Investment Trust		9,308		1,359,899
General Growth Properties, Inc.		65,261		1,775,752
Host Hotels & Resorts, Inc.		122,976		1,886,452

Description	Shares		Value
Parkway Properties Inc.		81,465	$	1,273,298
Pebblebrook Hotel Trust		94,500		2,647,890
Prologis, Inc.		96,436		4,139,033
Public Storage		23,205		5,747,878
Retail Opportunity Investments Corp.		72,158		1,291,628
Rexford Industrial Realty, Inc.		98,174		1,606,127
Simon Property Group, Inc.		46,805		9,100,764
SL Green Realty Corp.		13,125		1,482,863
Sunstone Hotel Investors, Inc.		172,100		2,149,529
Ventas, Inc.		56,476		3,186,941
VEREIT, Inc.		448,836		3,554,781
Welltower, Inc.		45,374		3,086,793
Weyerhaeuser Co.		65,000		1,948,700
WP Glimcher, Inc.		122,535		1,300,096
Total Real Estate Investment Trusts (Identified cost $84,440,404)				92,616,320
Short-Term Investment | 0.8%
State Street Institutional Treasury Money Market Fund (Identified cost $810,531)		810,531		810,531
Total Investments | 99.7% (Identified cost $88,600,623) (a)			$	96,754,979
Cash and Other Assets in Excess of Liabilities | 0.3%				294,934
Net Assets | 100.0%			$	97,049,913

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

Annual Report  15

Description	Shares		Value
Lazard Global Realty Equity Portfolio
Common Stocks | 29.7%
Brazil | 1.4%
BR Properties SA		13,140	$	27,955
Multiplan Empreendimentos Imobiliarios SA		5,000		47,834
				75,789
China | 1.2%
China Overseas Land & Investment, Ltd.		18,000		62,267
Germany | 3.2%
Vonovia SE		5,608		173,706
Hong Kong | 6.8%
Cheung Kong Property Holdings, Ltd.		22,500		146,159
China Overseas Property Holdings, Ltd. (b)		6,000		964
China Resources Land, Ltd.		20,000		57,684
Hongkong Land Holdings, Ltd.		7,430		51,814
Sun Hung Kai Properties, Ltd.		9,000		108,189
				364,810
India | 0.8%
DLF, Ltd.		26,272		45,603
Japan | 7.0%
Hulic Co., Ltd.		14,200		124,549
Mitsui Fudosan Co., Ltd.		7,680		192,441
Sumitomo Realty & Development Co., Ltd.		2,000		56,986
				373,976
Mexico | 1.5%
Corp Inmobiliaria Vesta SAB de CV		53,760		82,787
Philippines | 3.0%
Ayala Land, Inc.		95,625		69,819
SM Prime Holdings, Inc.		197,250		90,864
				160,683
Singapore | 0.9%
Frasers Centrepoint, Ltd.		41,000		48,513
United Arab Emirates | 1.7%
Emaar Properties PJSC		58,122		89,568

Description	Shares		Value
United States | 2.2%
CBRE Group, Inc., Class A (b)		1,772	$	61,276
Realogy Holdings Corp. (b)		1,501		55,042
				116,318
Total Common Stocks (Identified cost $1,797,178)				1,594,020
Real Estate Investment Trusts | 69.9%
Australia | 3.0%
Charter Hall Group		11,341		37,205
Westfield Corp.		18,115		124,622
				161,827
Canada | 2.1%
Boardwalk Real Estate Investment Trust		3,240		111,106
France | 2.1%
Gecina SA		340		41,250
Klepierre		878		38,936
Unibail-Rodamco SE		126		31,948
				112,134
Hong Kong | 3.3%
The Link		30,019		179,667
Italy | 0.9%
Beni Stabili SpA		63,948		48,248
Japan | 5.9%
Activia Properties, Inc.		13		55,196
Invincible Investment Corp.		159		92,295
Kenedix Retail REIT Corp.		59		124,952
Premier Investment Corp.		45		46,026
				318,469
Singapore | 0.9%
Ascendas Real Estate Investment Trust		29,080		46,573
United Kingdom | 4.9%
Big Yellow Group PLC		6,185		73,367
Great Portland Estates PLC		7,489		91,288
Land Securities Group PLC		3,780		65,534
Workspace Group PLC		2,387		33,692
				263,881

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

16  Annual Report

Description	Shares		Value
Lazard Global Realty Equity Portfolio (concluded)
United States | 46.8%
American Homes 4 Rent, Class A		7,990	$	133,114
American Tower Corp.		345		33,448
Apartment Investment & Management Co., Class A		2,142		85,744
AvalonBay Communities, Inc.		900		165,717
Boston Properties, Inc.		593		75,631
Colony Capital, Inc., Class A		2,463		47,979
Equinix, Inc.		408		123,379
Equity Lifestyle Properties, Inc.		1,700		113,339
Essex Property Trust, Inc.		873		209,005
Extra Space Storage, Inc.		800		70,568
General Growth Properties, Inc.		2,082		56,651
Host Hotels & Resorts, Inc.		3,400		52,156
Pebblebrook Hotel Trust		3,045		85,321
Prologis, Inc.		3,453		148,203
Public Storage		865		214,261
Retail Opportunity Investments Corp.		4,862		87,030
Rexford Industrial Realty, Inc.		4,387		71,771
Simon Property Group, Inc.		1,537		298,854
SL Green Realty Corp.		530		59,879
Sunstone Hotel Investors, Inc.		4,000		49,960
Ventas, Inc.		1,266		71,440
VEREIT, Inc.		12,374		98,002
Welltower, Inc.		1,350		91,841
WP Glimcher, Inc.		6,532		69,305
				2,512,598
Total Real Estate Investment Trusts (Identified cost $3,579,269)				3,754,503

Description	Shares		Value
Right | 0.0%
Singapore | 0.0%
Ascendas Real Estate Investment Trust Expires 01/13/16 (c) (Identified cost $0)		1,090	$	48
Short-Term Investment | 0.4%
State Street Institutional Treasury Money Market Fund (Identified cost $21,533)		21,533		21,533
Total Investments | 100.0% (Identified cost $5,397,980) (a)			$	5,370,104
Liabilities in Excess of Cash and Other Assets | (0.0)%				(977	)
Net Assets | 100.0%			$	5,369,127

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

Annual Report  17

Description	Shares		Value
Lazard Global Listed Infrastructure Portfolio
Common Stocks | 94.5%
Australia | 12.0%
AusNet Services		29,096,812	$	31,259,672
DUET Group		59,019,959		97,801,031
Macquarie Atlas Roads Group		10,243,472		30,146,400
Spark Infrastructure Group		41,064,987		57,159,369
Transurban Group		11,786,116		89,490,226
				305,856,698
Austria | 0.3%
Flughafen Wien AG		84,870		8,055,332
France | 10.4%
Aeroports de Paris		389,868		45,203,125
Eutelsat Communications SA		3,305,679		98,718,911
Vinci SA		1,912,031		122,616,859
				266,538,895
Germany | 3.7%
Fraport AG		1,467,050		93,606,375
Italy | 22.6%
ASTM SpA		834,619		10,438,484
Atlantia SpA		4,708,572		124,712,804
Hera SpA		14,348,703		38,122,461
Snam SpA		35,653,047		186,451,749
Societa Iniziative Autostradali e Servizi SpA		2,166,147		22,907,304
Terna SpA		37,367,475		192,530,405
				575,163,207
Japan | 3.8%
Tokyo Gas Co., Ltd.		20,691,700		97,195,909
Luxembourg | 4.8%
SES SA		4,424,712		122,650,680

Description	Shares		Value
Portugal | 0.6%
REN - Redes Energeticas Nacionais SGPS SA		5,184,800	$	15,662,607
Spain | 5.0%
Abertis Infraestructuras SA		8,159,896		127,189,144
Switzerland | 1.4%
Flughafen Zuerich AG		48,603		36,456,617
United Kingdom | 3.8%
Pennon Group PLC		7,716,911		97,886,891
United States | 26.1%
Ameren Corp.		1,454,600		62,882,358
CSX Corp.		7,964,659		206,682,901
Great Plains Energy, Inc.		4,233,000		115,603,230
Norfolk Southern Corp.		941,437		79,636,156
PG&E Corp.		2,024,699		107,693,740
SJW Corp.		336,663		9,982,058
Union Pacific Corp.		1,050,000		82,110,000
				664,590,443
Total Common Stocks (Identified cost $2,445,851,434)				2,410,852,798
Short-Term Investment | 4.3%
State Street Institutional Treasury Money Market Fund (Identified cost $108,771,245)		108,771,245		108,771,245
Total Investments | 98.8% (Identified cost $2,554,622,679) (a), (d)			$	2,519,624,043
Cash and Other Assets in Excess of Liabilities | 1.2%				30,486,783
Net Assets | 100.0%			$	2,550,110,826

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

18  Annual Report

Lazard Global Listed Infrastructure Portfolio (continued)

Forward Currency Contracts open at December 31, 2015:

Currency	Counterparty	Settlement Date	Quantity		Cost on Origination Date^		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts
CHF	CSF	03/22/16		4,986,075		5,094,304	$	—	$	99,776
EUR	BNP	03/22/16		44,656,589		49,229,424		—		603,528
GBP	SCB	03/22/16		8,783,859		13,296,435		—		345,589
JPY	SCB	03/22/16		856,033,574		7,123,818		11,788		—
JPY	SCB	03/22/16		1,323,459,795		10,969,314		62,599		—
Total Forward Currency Purchase Contracts							$	74,387	$	1,048,893
Forward Currency Sale Contracts
AUD	BNP	03/22/16		63,775,615		45,984,769	$	—	$	312,626
AUD	CAN	03/22/16		21,544,869		15,536,436		—		103,889
AUD	CIT	03/22/16		45,187,929		32,572,137		—		231,677
AUD	CSF	03/22/16		70,997,329		51,188,720		—		351,222
AUD	HSB	03/22/16		46,567,933		33,571,056		—		234,561
AUD	RBC	03/22/16		64,566,426		46,560,464		—		311,015
AUD	SCB	03/22/16		68,776,830		49,591,533		—		336,455
AUD	SSB	03/22/16		52,630,670		37,945,660		—		261,152
CHF	CAN	03/22/16		5,711,077		5,832,986		112,228		—
CHF	CSF	03/22/16		16,338,932		16,693,587		326,956		—
CHF	JPM	03/22/16		2,754,140		2,813,620		54,811		—
CHF	RBC	03/22/16		9,812,155		10,024,678		195,889		—
CHF	SCB	03/22/16		6,761,227		6,908,163		135,474		—
EUR	BNP	03/22/16		181,506,238		198,629,536		990,092		—
EUR	MEL	03/22/16		110,910,038		121,374,400		606,108		—
EUR	CAN	03/22/16		132,697,938		145,281,684		788,871		—
EUR	CIT	03/22/16		52,980,050		57,973,685		284,496		—
EUR	CSF	03/22/16		67,868,702		74,268,382		367,161		—
EUR	HSB	03/22/16		60,328,808		66,027,648		336,506		—
EUR	RBC	03/22/16		204,842,719		224,169,220		1,119,028		—
EUR	SCB	03/22/16		160,893,084		176,071,738		877,650		—
EUR	SSB	03/22/16		152,656,668		167,038,453		812,876		—
GBP	BNP	03/22/16		14,801,006		22,405,393		582,917		—
GBP	CIT	03/22/16		4,486,232		6,789,912		175,450		—
GBP	HSB	03/22/16		4,564,871		6,909,219		178,813		—
GBP	JPM	03/22/16		1,929,593		2,921,276		76,301		—
GBP	SCB	03/22/16		37,783,283		57,193,878		1,486,530		—
GBP	SSB	03/22/16		11,281,971		17,077,531		443,490		—
JPY	BNP	03/22/16		3,196,220,926		26,286,874		—		355,742
JPY	MEL	03/22/16		837,687,193		6,889,442		—		93,235
JPY	CAN	03/22/16		1,347,393,867		11,080,542		—		150,877
JPY	CIT	03/22/16		87,726,692		721,567		—		9,693
JPY	CSF	03/22/16		2,333,852,871		19,195,789		—		258,418
JPY	HSB	03/22/16		880,524,538		7,242,943		—		96,812

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

Annual Report  19

Lazard Global Listed Infrastructure Portfolio (concluded)

Forward Currency Contracts open at December 31, 2015 (concluded):

Currency	Counterparty	Settlement Date	Quantity		Cost on Origination Date^		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Sale Contracts (concluded)
JPY	JPM	03/22/16		991,859,340		8,155,732	$	—	$	112,072
JPY	RBC	03/22/16		509,187,587		4,188,776		—		55,640
JPY	SCB	03/22/16		2,998,328,812		24,661,873		—		331,181
JPY	SSB	03/22/16		790,067,041		6,498,491		—		87,240
Total Forward Currency Sale Contracts								9,951,647		3,693,507
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts							$	10,026,034	$	4,742,400

^ In USD unless otherwise indicated.

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

20  Annual Report

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2015

(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:

Portfolio	Aggregate Cost		Aggregate Gross Unrealized Appreciation		Aggregate Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)
US Realty Income	$	82,943,301	$	1,400,898	$	12,295,085	$	(10,894,187	)
US Realty Equity		88,680,780		13,138,088		5,063,889		8,074,199
Global Realty Equity		5,491,802		433,846		555,544		(121,698	)
Global Listed Infrastructure		2,568,930,579		68,622,924		117,929,460		(49,306,536	)

(b)	Non-income producing security.
(c)	Security valued using Level 2 inputs, based on reference to a similar security which was trading on an active market, under GAAP hierarchy – see Note 9.
(d)	The Portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts.

Security Abbreviations:
PJSC	— Public Joint Stock Company	REIT	— Real Estate Investment Trust
Currency Abbreviations:
AUD	— Australian Dollar	GBP	— British Pound Sterling
CHF	— Swiss Franc	JPY	— Japanese Yen
EUR	— Euro	USD	— United States Dollar
Counterparty Abbreviations:
BNP	— BNP Paribas SA	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	SCB	— Standard Chartered Bank
HSB	— HSBC Bank USA NA	SSB	— State Street Bank and Trust Co.

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

Industry*	Lazard Global Realty Equity Portfolio			Lazard Global Listed Infrastructure Portfolio
Cable Television		—	%		8.7	%
Commercial Services		1.0			—
Construction & Engineering		—			4.8
Electric		—			28.2
Gas Utilities		—			11.1
Real Estate Management & Development		98.6			—
Transportation		—			37.5
Water		—			4.2
Subtotal		99.6			94.5
Short-Term Investments		0.4			4.3
Total Investments		100.0	%		98.8	%

* 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, 2015	Lazard US Realty Income Portfolio			Lazard US Realty Equity Portfolio
ASSETS
Investments in securities, at value	$	72,049,114		$	96,754,979
Cash		410			—
Foreign currency		—			—
Receivables for:
Capital stock sold		8,047			47,068
Dividends		841,859			611,254
Investments sold		1,772,732			—
Amount due from Investment Manager (Note 3)		—			—
Gross unrealized appreciation on forward currency contracts		—			—
Total assets		74,672,162			97,413,301
LIABILITIES
Payables for:
Management fees		51,601			65,962
Accrued distribution fees		9,080			16,106
Capital stock redeemed		432,182			225,146
Investments purchased		—			—
Line of credit outstanding		927,000			—
Gross unrealized depreciation on forward currency contracts		—			—
Other accrued expenses and payables		57,925			56,174
Total liabilities		1,477,788			363,388
Net assets	$	73,194,374		$	97,049,913
NET ASSETS
Paid in capital	$	92,295,241		$	88,045,458
Undistributed (distributions in excess of) net investment income		347,518			—
Accumulated net realized gain (loss)		(8,906,561	)		850,099
Net unrealized appreciation (depreciation) on:
Investments		(10,541,824	)		8,154,356
Foreign currency and forward currency contracts		—			—
Net assets	$	73,194,374		$	97,049,913
Institutional Shares
Net assets	$	32,806,169		$	21,142,590
Shares of capital stock outstanding*		4,614,237			1,116,969
Net asset value, offering and redemption price per share	$	7.11		$	18.93
Open Shares
Net assets	$	40,388,205		$	75,907,323
Shares of capital stock outstanding*		5,692,814			3,995,207
Net asset value, offering and redemption price per share	$	7.09		$	19.00
Cost of investments in securities	$	82,590,938		$	88,600,623
Cost of foreign currency	$	—		$	—

* $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total.

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

22  Annual Report

Lazard Global Realty Equity Portfolio			Lazard Global Listed Infrastructure Portfolio
$	5,370,104		$	2,519,624,043
	—			—
	77			229,763
	2,421			21,281,845
	25,034			5,442,479
	—			5,159,185
	16,809			—
	—			10,026,034
	5,414,445			2,561,763,349
	—			1,966,627
	386			81,477
	—			4,490,304
	—			11,767
	—			—
	—			4,742,400
	44,932			359,948
	45,318			11,652,523
$	5,369,127		$	2,550,110,826
$	5,446,177		$	2,588,431,878
	(10,956	)		(2,773,741	)
	(38,148	)		(5,760,854	)
	(27,876	)		(34,998,636	)
	(70	)		5,212,179
$	5,369,127		$	2,550,110,826
$	3,549,293		$	2,156,324,666
	250,075			160,699,463
$	14.19		$	13.42
$	1,819,834		$	393,786,160
	128,369			29,287,607
$	14.18		$	13.45
$	5,397,980		$	2,554,622,679
$	76		$	229,740

Annual Report  23

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2015	Lazard US Realty Income Portfolio			Lazard US Realty Equity Portfolio
Investment Income
Income
Dividends*	$	6,901,361		$	2,789,215
Expenses
Management fees (Note 3)		941,643			842,568
Distribution fees (Open Shares)		170,892			209,105
Custodian fees		49,230			46,288
Administration fees		75,112			71,065
Registration fees		42,391			40,110
Shareholders’ reports		22,726			24,106
Professional services		40,870			41,425
Directors’ fees and expenses		8,740			7,722
Shareholders’ services		38,264			47,363
Other†		14,979			9,757
Total gross expenses		1,404,847			1,339,509
Management fees waived and expenses reimbursed		—			(9,501	)
Administration fees waived		—			—
Total net expenses		1,404,847			1,330,008
Net investment income		5,496,514			1,459,207
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Forward Currency Contracts and Options
Net realized gain (loss) on:
Investments		(9,078,718	)		6,570,890
Foreign currency and forward currency contracts		—			—
Purchased options		—			174,437
Total net realized gain (loss) on investments, foreign currency, forward currency contracts and options		(9,078,718	)		6,745,327
Net change in unrealized appreciation (depreciation) on:
Investments		(8,478,364	)		(4,368,401	)
Foreign currency and forward currency contracts		—			—
Total net change in unrealized depreciation on investments, foreign currency and forward currency contracts		(8,478,364	)		(4,368,401	)
Net realized and unrealized gain (loss) on investments, foreign currency, forward currency contracts and options		(17,557,082	)		2,376,926
Net increase (decrease) in net assets resulting from operations	$	(12,060,568	)	$	3,836,133
* Net of foreign withholding taxes of	$	—		$	—
† Includes interest on line of credit of	$	5,647		$	1,519

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

24  Annual Report

Lazard Global Realty Equity Portfolio			Lazard Global Listed Infrastructure Portfolio
$	157,830		$	70,254,472
	47,951			19,163,544
	4,863			748,033
	72,136			425,695
	51,129			362,930
	34,508			185,718
	2,760			128,703
	42,823			105,705
	3,961			79,264
	26,203			76,107
	5,530			51,221
	291,864			21,326,920
	(208,265	)		—
	(18,750	)		—
	64,849			21,326,920
	92,981			48,927,552
	201,768			48,584,416
	(768	)		119,502,227
	—			—
	201,000			168,086,643
	(230,627	)		(56,166,983	)
	220			(12,018,159	)
	(230,407	)		(68,185,142	)
	(29,407	)		99,901,501
$	63,574		$	148,829,053
$	6,586		$	7,796,951
$	140		$	—

Annual Report  25

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

	Lazard US Realty Income Portfolio						Lazard US Realty Equity Portfolio
	Year Ended December 31, 2015			Year Ended December 31, 2014			Year Ended December 31, 2015			Year Ended December 31, 2014
Increase (Decrease) in Net Assets
Operations
Net investment income	$	5,496,514		$	4,617,726		$	1,459,207		$	913,988
Net realized gain (loss) on investments, foreign currency, forward currency contracts and options		(9,078,718	)		7,759,876			6,745,327			2,311,598
Net change in unrealized appreciation (depreciation) on investments, foreign currency and forward currency contracts		(8,478,364	)		12,661,157			(4,368,401	)		15,391,357
Net increase (decrease) in net assets resulting from operations		(12,060,568	)		25,038,759			3,836,133			18,616,943
Distributions to shareholders
From net investment income
Institutional Shares		(2,328,929	)		(2,171,258	)		(388,970	)		(216,488	)
Open Shares		(2,647,759	)		(3,053,369	)		(1,212,464	)		(653,395	)
From net realized gains
Institutional Shares		(1,172,590	)		(2,229,967	)		(1,323,795	)		(281,022	)
Open Shares		(1,227,569	)		(2,904,898	)		(4,827,172	)		(1,162,212	)
Net decrease in net assets resulting from distributions		(7,376,847	)		(10,359,492	)		(7,752,401	)		(2,313,117	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		13,886,139			30,642,647			5,414,090			14,479,016
Open Shares		20,321,841			54,138,803			23,669,007			48,165,637
Net proceeds from reinvestment of distributions
Institutional Shares		3,238,252			3,985,440			1,690,029			496,372
Open Shares		3,824,336			5,696,540			5,757,961			1,678,762
Cost of shares redeemed
Institutional Shares		(42,092,318	)		(21,092,217	)		(6,912,046	)		(3,168,079	)
Open Shares		(61,283,643	)		(47,389,819	)		(39,361,469	)		(35,924,926	)
Net increase (decrease) in net assets from capital stock transactions		(62,105,393	)		25,981,394			(9,742,428	)		25,726,782
Redemption fees (Note 2(h))
Institutional Shares		1,494			2,416			762			11
Open Shares		11,432			5,771			4,951			4,818
Net increase in net assets from redemption fees		12,926			8,187			5,713			4,829
Total increase (decrease) in net assets		(81,529,882	)		40,668,848			(13,652,983	)		42,035,437
Net assets at beginning of year		154,724,256			114,055,408			110,702,896			68,667,459
Net assets at end of year*	$	73,194,374		$	154,724,256		$	97,049,913		$	110,702,896
*  Includes undistributed (distributions in excess of) net investment income of	$	347,518		$	—		$	—		$	44,105
Shares issued and redeemed Institutional Shares
Shares outstanding at beginning of year		7,953,633			6,343,004			1,106,356			488,840
Shares sold		1,669,318			3,713,599			268,008			769,862
Shares issued to shareholders from reinvestment of distributions		425,265			479,580			90,600			24,881
Shares redeemed		(5,433,979	)		(2,582,550	)		(347,995	)		(177,227	)
Net increase (decrease)		(3,339,396	)		1,610,629			10,613			617,516
Shares outstanding at end of year		4,614,237			7,953,633			1,116,969			1,106,356
Open Shares
Shares outstanding at beginning of year		10,454,927			8,991,883			4,494,866			3,776,638
Shares sold		2,368,278			6,536,633			1,168,358			2,599,349
Shares issued to shareholders from reinvestment of distributions		501,448			686,872			307,541			83,854
Shares redeemed		(7,631,839	)		(5,760,461	)		(1,975,558	)		(1,964,975	)
Net increase (decrease)		(4,762,113	)		1,463,044			(499,659	)		718,228
Shares outstanding at end of year		5,692,814			10,454,927			3,995,207			4,494,866

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

26  Annual Report

Lazard Global Realty Equity Portfolio						Lazard Global Listed Infrastructure Portfolio
Year Ended December 31, 2015			Year Ended December 31, 2014			Year Ended December 31, 2015			Year Ended December 31, 2014
$	92,981		$	160,191		$	48,927,552		$	28,183,407
	201,000			732,122			168,086,643			180,066,399
	(230,407	)		58,973			(68,185,142	)		(24,497,036	)
	63,574			951,286			148,829,053			183,752,770
	(132,219	)		(170,402	)		(167,086,540	)		(93,499,882	)
	(64,198	)		(68,132	)		(27,657,141	)		(8,651,001	)
	(105,753	)		(375,865	)		(52,586,746	)		(68,480,736	)
	(55,339	)		(163,613	)		(9,109,533	)		(6,840,627	)
	(357,509	)		(778,012	)		(256,439,960	)		(177,472,246	)
	578,622			1,487,809			1,120,901,903			823,544,885
	169,139			1,461,456			375,261,831			139,281,785
	237,972			546,267			184,644,431			124,923,577
	113,054			218,688			36,467,389			14,800,994
	(1,866,316	)		(2,563,689	)		(436,076,801	)		(226,235,857	)
	(364,500	)		(2,213,583	)		(141,660,638	)		(46,719,020	)
	(1,132,029	)		(1,063,052	)		1,139,538,115			829,596,364
	279			—			20,425			3,195
	—			—			46,495			14,627
	279			—			66,920			17,822
	(1,425,685	)		(889,778	)		1,031,994,128			835,894,710
	6,794,812			7,684,590			1,518,116,698			682,221,988
$	5,369,127		$	6,794,812		$	2,550,110,826		$	1,518,116,698
$	(10,956	)	$	20,639		$	(2,773,741	)	$	22,762,213
	314,965			343,325			99,989,007			48,827,881
	36,999			85,002			77,905,344			58,107,173
	16,882			35,657			13,815,164			9,008,859
	(118,771	)		(149,019	)		(31,010,052	)		(15,954,906	)
	(64,890	)		(28,360	)		60,710,456			51,161,126
	250,075			314,965			160,699,463			99,989,007
	133,021			152,733			10,615,342			3,125,100
	10,727			94,693			25,897,867			9,679,786
	8,037			14,293			2,724,299			1,066,135
	(23,416	)		(128,698	)		(9,949,901	)		(3,255,679	)
	(4,652	)		(19,712	)		18,672,265			7,490,242
	128,369			133,021			29,287,607			10,615,342

Annual Report  27

The Lazard Funds, Inc. Financial Highlights

LAZARD US REALTY INCOME PORTFOLIO

													For the Period
Selected data for a share of capital	Year Ended												9/26/11* to
stock outstanding throughout each period	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	8.42		$	7.44		$	8.57		$	7.46		$	9.73
Income (loss) from investment operations:
Net investment income (a)		0.37			0.29			0.47			0.49			0.16
Net realized and unrealized gain (loss)		(1.15	)		1.30			(0.27	)		1.23			0.55
Total from investment operations		(0.78	)		1.59			0.20			1.72			0.71
Less distributions from:
Net investment income		(0.37	)		(0.32	)		(0.34	)		(0.37	)		(0.24	)
Net realized gains		(0.16	)		(0.29	)		(0.99	)		(0.24	)		(2.74	)
Total distributions		(0.53	)		(0.61	)		(1.33	)		(0.61	)		(2.98	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—
Net asset value, end of period	$	7.11		$	8.42		$	7.44		$	8.57		$	7.46
Total Return (c)		–9.50	%		21.54	%		2.37	%		23.32	%		9.71	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	32,806		$	66,942		$	47,222		$	52,024		$	19,849
Ratios to average net assets (d):
Net expenses		0.98	%		0.96	%		0.95	%		1.15	%		1.15	%
Gross expenses		0.98	%		0.96	%		0.98	%		1.16	%		2.31	%
Net investment income		4.59	%		3.52	%		5.29	%		5.94	%		8.26	%
Portfolio turnover rate		60	%		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	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11			5/31/11
Open Shares
Net asset value, beginning of period	$	8.40		$	7.43		$	8.56		$	7.45		$	11.34		$	10.78
Income (loss) from investment operations:
Net investment income (a)		0.34			0.26			0.44			0.51			0.44			0.32
Net realized and unrealized gain (loss)		(1.15	)		1.30			(0.26	)		1.19			(1.21	)		2.05
Total from investment operations		(0.81	)		1.56			0.18			1.70			(0.77	)		2.37
Less distributions from:
Net investment income		(0.34	)		(0.30	)		(0.32	)		(0.35	)		(0.38	)		(0.64	)
Net realized gains		(0.16	)		(0.29	)		(0.99	)		(0.24	)		(2.74	)		(1.17	)
Total distributions		(0.50	)		(0.59	)		(1.31	)		(0.59	)		(3.12	)		(1.81	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	7.09		$	8.40		$	7.43		$	8.56		$	7.45		$	11.34
Total Return (c)		–9.77	%		21.35	%		1.99	%		23.00	%		–4.82	%		23.27	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	40,388		$	87,782		$	66,834		$	55,393		$	6,007		$	15,830
Ratios to average net assets (d):
Net expenses		1.23	%		1.24	%		1.22	%		1.45	%		1.47	%		1.48	%
Gross expenses		1.23	%		1.24	%		1.24	%		1.47	%		3.05	%		2.42	%
Net investment income		4.20	%		3.19	%		4.86	%		6.18	%		7.49	%		2.81	%
Portfolio turnover rate		60	%		53	%		104	%		42	%		89	%		77	%

*	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.

28  Annual Report

LAZARD US REALTY EQUITY PORTFOLIO

													For the Period
Selected data for a share of capital	Year Ended												9/26/11* to
stock outstanding throughout each period	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	19.71		$	16.05		$	17.40		$	14.89		$	15.76
Income (loss) from investment operations:
Net investment income (a)		0.33			0.28			0.41			0.31			0.10
Net realized and unrealized gain (loss)		0.55			3.85			(0.10	)		2.79			2.91
Total from investment operations		0.88			4.13			0.31			3.10			3.01
Less distributions from:
Net investment income		(0.38	)		(0.20	)		(0.25	)		(0.17	)		(0.12	)
Net realized gains		(1.28	)		(0.27	)		(1.41	)		(0.42	)		(3.76	)
Total distributions		(1.66	)		(0.47	)		(1.66	)		(0.59	)		(3.88	)
Redemption fees		—	(b)		—	(b)		—			—	(b)		—
Net asset value, end of period	$	18.93		$	19.71		$	16.05		$	17.40		$	14.89
Total Return (c)		4.63	%		25.70	%		1.77	%		20.83	%		20.84	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	21,143		$	21,806		$	7,844		$	2,794		$	1,525
Ratios to average net assets (d):
Net expenses		1.05	%		1.05	%		1.13	%		1.20	%		1.20	%
Gross expenses		1.09	%		1.18	%		1.27	%		2.34	%		13.07	%
Net investment income		1.64	%		1.50	%		2.28	%		1.86	%		2.32	%
Portfolio turnover rate		51	%		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	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11			5/31/11
Open Shares
Net asset value, beginning of period	$	19.78		$	16.11		$	17.45		$	14.92		$	19.49		$	16.66
Income (loss) from investment operations:
Net investment income (loss) (a)		0.26			0.19			0.33			0.30			0.14			(0.07	)
Net realized and unrealized gain (loss)		0.56			3.90			(0.06	)		2.76			(0.90	)		5.17
Total from investment operations		0.82			4.09			0.27			3.06			(0.76	)		5.10
Less distributions from:
Net investment income		(0.32	)		(0.15	)		(0.20	)		(0.12	)		(0.06	)		(0.04	)
Net realized gains		(1.28	)		(0.27	)		(1.41	)		(0.42	)		(3.76	)		(2.23	)
Total distributions		(1.60	)		(0.42	)		(1.61	)		(0.54	)		(3.82	)		(2.27	)
Redemption fees		—	(b)		—	(b)		—	(b)		0.01			0.01			—	(b)
Net asset value, end of period	$	19.00		$	19.78		$	16.11		$	17.45		$	14.92		$	19.49
Total Return (c)		4.34	%		25.33	%		1.58	%		20.58	%		–2.44	%		33.01	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	75,907		$	88,897		$	60,823		$	65,387		$	1,138		$	4,852
Ratios to average net assets (d):
Net expenses		1.32	%		1.35	%		1.36	%		1.50	%		1.80	%		1.93	%
Gross expenses		1.32	%		1.42	%		1.41	%		1.78	%		7.48	%		5.66	%
Net investment income (loss)		1.32	%		1.01	%		1.83	%		1.74	%		1.36	%		–0.41	%
Portfolio turnover rate		51	%		43	%		98	%		52	%		63	%		91	%

*	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.

Annual Report  29

LAZARD GLOBAL REALTY EQUITY PORTFOLIO

													For the Period
Selected data for a share of capital	Year Ended												9/26/11* to
stock outstanding throughout each period	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	15.17		$	15.49		$	16.98		$	12.18		$	13.08
Income (loss) from investment operations:
Net investment income (a)		0.27			0.34			0.30			0.22			0.03
Net realized and unrealized gain (loss)		(0.24	)		1.29			(0.18	)		5.27			0.05
Total from investment operations		0.03			1.63			0.12			5.49			0.08
Less distributions from:
Net investment income		(0.56	)		(0.61	)		(0.50	)		(0.57	)		(0.75	)
Net realized gains		(0.45	)		(1.34	)		(0.96	)		(0.12	)		(0.23	)
Return of capital		—			—			(0.15	)		—			—
Total distributions		(1.01	)		(1.95	)		(1.61	)		(0.69	)		(0.98	)
Redemption fees		—	(b)		—			—			—	(b)		—
Net asset value, end of period	$	14.19		$	15.17		$	15.49		$	16.98		$	12.18
Total Return (c)		0.36	%		10.35	%		0.89	%		45.14	%		0.09	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	3,549		$	4,779		$	5,320		$	2,797		$	1,914
Ratios to average net assets (d):
Net expenses		1.05	%		1.13	%		1.22	%		1.30	%		1.30	%
Gross expenses		4.97	%		3.79	%		5.49	%		5.84	%		17.38	%
Net investment income		1.74	%		2.04	%		1.79	%		1.50	%		0.83	%
Portfolio turnover rate		56	%		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	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11			5/31/11
Open Shares
Net asset value, beginning of period	$	15.16		$	15.48		$	16.97		$	12.17		$	16.98		$	14.54
Income (loss) from investment operations:
Net investment income (a)		0.23			0.29			0.25			0.19			0.06			0.16
Net realized and unrealized gain (loss)		(0.24	)		1.29			(0.18	)		5.25			(3.89	)		3.99
Total from investment operations		(0.01	)		1.58			0.07			5.44			(3.83	)		4.15
Less distributions from:
Net investment income		(0.52	)		(0.56	)		(0.45	)		(0.52	)		(0.75	)		(0.55	)
Net realized gains		(0.45	)		(1.34	)		(0.96	)		(0.12	)		(0.23	)		(1.16	)
Return of capital		—			—			(0.15	)		—			—			—
Total distributions		(0.97	)		(1.90	)		(1.56	)		(0.64	)		(0.98	)		(1.71	)
Redemption fees		—			—			—	(b)		—	(b)		—			—	(b)
Net asset value, end of period	$	14.18		$	15.16		$	15.48		$	16.97		$	12.17		$	16.98
Total Return (c)		0.06	%		10.05	%		0.60	%		44.81	%		–22.98	%		29.13	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,820		$	2,016		$	2,365		$	2,209		$	667		$	1,716
Ratios to average net assets (d):
Net expenses		1.35	%		1.43	%		1.54	%		1.60	%		1.84	%		1.96	%
Gross expenses		5.55	%		4.26	%		5.81	%		6.13	%		16.46	%		14.35	%
Net investment income		1.47	%		1.76	%		1.45	%		1.25	%		0.66	%		0.98	%
Portfolio turnover rate		56	%		84	%		81	%		42	%		41	%		54	%

*	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.

30  Annual Report

LAZARD GLOBAL LISTED INFRASTRUCTURE PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of year	$	13.72		$	13.13		$	10.96		$	9.78		$	10.31
Income (loss) from investment operations:
Net investment income (a)		0.33			0.34			0.35			0.31			0.33
Net realized and unrealized gain (loss)		0.89			2.01			2.53			1.43			(0.48	)
Total from investment operations		1.22			2.35			2.88			1.74			(0.15	)
Less distributions from:
Net investment income		(1.17	)		(1.04	)		(0.33	)		(0.35	)		(0.15	)
Net realized gains		(0.35	)		(0.72	)		(0.38	)		(0.21	)		(0.23	)
Total distributions		(1.52	)		(1.76	)		(0.71	)		(0.56	)		(0.38	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	13.42		$	13.72		$	13.13		$	10.96		$	9.78
Total Return (c)		9.30	%		17.95	%		26.56	%		18.05	%		–1.55	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	2,156,325		$	1,372,216		$	641,127		$	125,112		$	104,439
Ratios to average net assets:
Net expenses		0.96	%		0.98	%		1.01	%		1.14	%		1.09	%
Gross expenses		0.96	%		0.98	%		1.01	%		1.14	%		1.09	%
Net investment income		2.32	%		2.35	%		2.80	%		3.01	%		3.15	%
Portfolio turnover rate		34	%		41	%		35	%		26	%		135	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Open Shares
Net asset value, beginning of year	$	13.74		$	13.15		$	10.97		$	9.78		$	10.34
Income (loss) from investment operations:
Net investment income (a)		0.31			0.29			0.30			0.28			0.28
Net realized and unrealized gain (loss)		0.88			2.02			2.55			1.42			(0.49	)
Total from investment operations		1.19			2.31			2.85			1.70			(0.21	)
Less distributions from:
Net investment income		(1.13	)		(1.00	)		(0.29	)		(0.30	)		(0.12	)
Net realized gains		(0.35	)		(0.72	)		(0.38	)		(0.21	)		(0.23	)
Total distributions		(1.48	)		(1.72	)		(0.67	)		(0.51	)		(0.35	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of year	$	13.45		$	13.74		$	13.15		$	10.97		$	9.78
Total Return (c)		9.06	%		17.61	%		26.24	%		17.54	%		–1.95	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	393,786		$	145,901		$	41,095		$	12,715		$	8,359
Ratios to average net assets:
Net expenses		1.23	%		1.29	%		1.32	%		1.50	%		1.60	%
Gross expenses		1.23	%		1.29	%		1.32	%		1.50	%		1.67	%
Net investment income		2.19	%		2.04	%		2.42	%		2.66	%		2.81	%
Portfolio turnover rate		34	%		41	%		35	%		26	%		135	%

(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.

Annual Report  31

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2015

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 “1940 Act”), as an open-end management investment company. The Fund is comprised of thirty-five no-load portfolios (each referred to as a “Portfolio”), as follows: Lazard US Equity Concentrated Portfolio, Lazard US Strategic Equity Portfolio, Lazard US Mid Cap Equity Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard US Small Cap Equity Growth Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Equity Concentrated Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Equity Advantage Portfolio (commenced investment operations on May 29, 2015), Lazard International Small Cap Equity Portfolio, Lazard Global Equity Select Portfolio, Lazard Global Strategic Equity Portfolio, Lazard Managed Equity Volatility Portfolio (commenced investment operations on May 29, 2015), Lazard Emerging Markets Equity Portfolio, Lazard Emerging Markets Core Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Advantage Portfolio (commenced investment operations on May 29, 2015), Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi Asset Portfolio, Lazard Emerging Markets Debt Portfolio, Lazard Explorer Total Return Portfolio, Lazard Emerging Markets Income Portfolio, Lazard US Corporate Income Portfolio, Lazard US Short Duration Fixed Income Portfolio, Lazard Global Fixed Income Portfolio, Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard Capital Allocator Opportunistic Strategies Portfolio, Lazard Global Dynamic Multi Asset Portfolio, Lazard Enhanced Opportunities Portfolio, Lazard Fundamental Long/Short Portfolio, and Lazard Master Alternatives Portfolio. All Portfolios, other than US Equity Concentrated, International Equity Concentrated, Emerging Markets Debt, Explorer Total Return, Emerging Markets Income, US Realty Equity, Global Realty Equity, Enhanced Opportunities and Fundamental Long/Short Portfolios, are operated as “diversified” funds, as defined in the 1940 Act. Global Dynamic Multi Asset Portfolio had not commenced operations as of December 31, 2015. This re-

port includes only the financial statements of US Realty Income, US Realty Equity, Global Realty Equity and Global Listed Infrastructure Portfolios. The financial statements of other Portfolios are presented separately.

Effective November 29, 2013, an R6 Share class was classified for each Portfolio. 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, 2015, 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 US Strategic Equity, International Equity, International Strategic Equity and Emerging Markets Equity Portfolios had issued R6 Shares.

2. Significant Accounting Policies

The accompanying financial statements are presented in conformity with GAAP. The Fund is an investment company and therefore applies specialized accounting guidance in Accounting Standards Codification Topic 946. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements:

(a) Valuation of Investments—Net asset value (“NAV”) per share for each class of each Portfolio is determined on each day the New York Stock Exchange (“NYSE”) is open for business, generally as of the close of regular session trading on the NYSE (normally 4:00 p.m. Eastern time, the “Regular Closing Time”). When trading on the NYSE is unexpectedly closed prior to the Regular Closing Time, or an earlier scheduled close (such as on certain days around holidays when the NYSE is scheduled to close before 4:00 p.m.), and remains closed through the time of the Regular Closing Time (or an earlier scheduled close), the NAV of each class of each Portfolio may nonetheless be calculated as of the Regular Closing Time (or an earlier scheduled close) if, in the judgment of the Investment Manager, there is sufficient trading in other markets between the

32  Annual Report

unexpected close and the Regular Closing Time (or an earlier scheduled close) for securities for which the NYSE is usually considered the primary market. NAV per share is determined by dividing the value of the total assets of the Portfolio represented by such class, less all liabilities, by the total number of Portfolio shares of such class outstanding.

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 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 generally are valued using quotations from an independent pricing service. Exchange-traded options are valued at the last reported sales price on the exchange on which the contract is principally traded. Investments in money market funds are valued at the fund’s NAV.

The Valuation Committee of the Investment Manager, which meets periodically 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.

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.

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 except for certain dividends from foreign securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Portfolio. 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

Annual Report  33

prevailing rates of exchange. Purchases and sales of securities, income receipts and expense payments are translated into US dollars at the prevailing exchange rates on the respective transaction dates.

The Portfolios do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in their market prices. Such fluctuations are included in net realized and unrealized gain (loss) on investments. Net realized gain (loss) on foreign currency and forward currency contracts represents net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.

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

The US dollar value of forward currency contracts is determined using quotations provided by an independent pricing service. Daily fluctuations in the value of such contracts are recorded as unrealized appreciation (depreciation) on forward currency contracts. When the contract is closed, a Portfolio records a realized gain (loss) equal to the difference between the value at the time it was opened and the value at the time it was closed.

During the year ended December 31, 2015, 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.

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, 2015, transactions in options purchased were as follows:

US Realty Equity Portfolio

Purchased Options	Number of Contracts			Cost
Options outstanding at beginning of year		—		$	—
Options purchased		1,775			415,858
Options sold		(1,775	)		(415,858	)
Options outstanding at end of year		—		$	—

None of the other Portfolios presented traded in options during the year ended December 31, 2015.

(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.

34  Annual Report

At December 31, 2015, the following Portfolio 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	Short-Term		Long-Term
US Realty Income	$	1,339,121	$	7,215,076

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, 2015, the following Portfolios elected to defer such losses as follows:

Portfolio	Post October Capital Loss Deferral		Late Year Ordinary Loss Deferral
US Realty Equity		$58,801		$     —
Global Realty Equity		941		—

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 (2012-2014), or expected to be taken in the Portfolios’ 2015 tax returns.

(f) Dividends and Distributions—Dividends from net investment income, if any, will be declared and paid annually, except that US Realty Income and Global Listed Infrastructure Portfolios’ dividends from net investment income (if any) will be declared and paid quarterly. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Portfolios, if not distributed. The Portfolios intend to declare and distribute these amounts, at least annually, to shareholders; however, to avoid taxation, a second distribution may be required. Differences in per share distributions, by class, are generally due to differences in class specific expenses.

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 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 (Distributions in Excess of) Net Investment Income			Accumulated Net Realized Gain (Loss)
US Realty Income		$       —			$     (172,308	)		$         172,308
US Realty Equity		(1,383	)		98,122			(96,739	)
Global Realty Equity		(849	)		71,841			(70,992	)
Global Listed Infrastructure		(4	)		120,280,175			(120,280,171	)

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2015		2014		2015		2014
US Realty Income	$	5,504,357	$	8,459,141	$	1,872,490	$	1,900,351
US Realty Equity		2,876,975		2,144,606		4,875,426		168,511
Global Realty Equity		283,828		668,012		73,681		110,000
Global Listed Infrastructure		216,909,361		115,382,323		39,530,599		62,089,923

Annual Report  35

At December 31, 2015, the components of distributable earnings, on a tax basis, were as follows:

Portfolio	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain/ Deferrred Capital Losses			Net Unrealized Appreciation (Depreciation) Including Foreign Currency
US Realty Income		$   347,518		$(8,554,197	)		$(10,894,188	)
US Realty Equity		—		930,256			8,074,199
Global Realty Equity		45,659		(941	)		(121,768	)
Global Listed Infrastructure		7,395,981		3,649,141			(49,366,174	)

(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

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

search, advice and supervision and furnishes continuously an investment program for each Portfolio consistent with its investment objectives and policies, including the purchase, retention and disposition of securities. For its services provided to the Portfolios, the Investment Manager earns a management fee, accrued daily as a percentage of its average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:

Portfolio	Annual Rate
US Realty Income		0.75	%
US Realty Equity		0.80
Global Realty Equity		0.85
Global Listed Infrastructure		0.90

The Investment Manager has voluntarily agreed, through May 1 of the year shown below, to reduce its fees and, if necessary, reimburse the Portfolios if annualized operating expenses (exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Funds” and extraordinary expenses, and excluding shareholder redemption fees or other transaction fees) exceed the following percentages of average daily net assets for the respective shares:

Portfolio	Institutional Shares			Open Shares			Year
US Realty Income		1.00	%		1.30	%		2016
US Realty Equity		1.05			1.35			2025
Global Realty Equity (a)		1.00			1.30			2016
Global Listed Infrastructure		1.30			1.60			2025

(a) From January 1, 2015 to June 8, 2015, percentages were 1.10% and 1.40%, respectively.

During the year ended December 31, 2015, 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	$	9,501	$	—	$	—	$	—
Global Realty Equity		31,397		101,392		16,554		58,922

The Fund has entered into an administration agreement with State Street to provide certain administrative services. Each Portfolio bears the cost of such

36  Annual Report

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 year ended December 31, 2015, State Street waived $18,750 of its fee for the Global Realty Equity Portfolio.

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

Under a distribution and servicing plan adopted pursuant to Rule 12b-1 under the 1940 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.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2015, each Director who is not an affiliated person of the Investment Manager or any of its affiliates was 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 Fund Complex”), each a registered management investment company advised by the Investment Manager, and Lazard Alter-

native Emerging Markets 1099 Fund, a closed-end registered management investment company advised by an affiliate of the Investment Manager: (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. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Directors’ fees were allocated among the funds in the Lazard Fund Complex and Lazard Alternative Emerging Markets 1099 Fund at a rate of $5,000 per fund with the remainder allocated based upon each fund’s proportionate share of combined net assets. 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, 2015 were as follows:

Portfolio	Purchases		Sales
US Realty Income	$	73,245,576	$	135,041,271
US Realty Equity		52,549,379		66,698,046
Global Realty Equity		3,130,199		4,495,744
Global Listed Infrastructure		1,660,026,138		669,284,163

For the year ended December 31, 2015, 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.

At December 31, 2015, the Investment Manager owned 54.08% of the outstanding shares of Global Realty Equity Portfolio.

6. Line of Credit

The Fund has a $50 million Line of Credit Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings was payable: from January 1, 2015 to June 28, 2015, at the higher of the Federal Funds rate or Overnight LIBOR rate plus 1.00%, and from June 29,

Annual Report  37

2015 to December 31, 2015, at the higher of the Federal Funds rate or One-Month LIBOR rate plus 1.00%, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.10% per annum fee from January 1, 2015 to June 28, 2015 and 0.20% per annum from June 29, 2015 to December 31, 2015 on the unused portion of the commitment, payable quarterly in arrears. The Fund has also agreed to pay an upfront fee of 0.05% of the committed line amount. During the year ended December 31, 2015, the Portfolios had borrowings under the Agreement as follows:

Portfolio	Average Daily Loan Balance*		Maximum Daily Loan Outstanding		Weighted Average Interest Rate			Number of Days Borrowings were Outstanding
US Realty Income	$	991,988	$	5,725,000		1.20	%		171
US Realty Equity		597,671		2,440,000		1.16			79
Global Realty Equity		89,220		265,000		1.15			49

* 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, 2015 is categorized as Level 2 (see Note 9).

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. The Portfolios’ investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies. 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 economies of countries with emerging markets may be based predominantly on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme debt burdens or volatile inflation rates. The securities markets of emerging market countries have historically been extremely volatile. These market conditions may continue or worsen. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies. 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.

(b) 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 considera-

38  Annual Report

tions 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.

(c) 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, among other factors, regulation by various government authorities, including rate regulation and service interruption due to environmental, operational or other mishaps.

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  39

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2015:

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, 2015
US Realty Income Portfolio
Preferred Stocks*		$	18,058,757		$	—			$	—		$	18,058,757
Real Estate Investment Trusts			53,990,357			—				—			53,990,357
Total		$	72,049,114		$	—			$	—		$	72,049,114
US Realty Equity Portfolio
Common Stocks*		$	3,328,128		$	—			$	—		$	3,328,128
Real Estate Investment Trusts			92,616,320			—				—			92,616,320
Short-Term Investment			810,531			—				—			810,531
Total		$	96,754,979		$	—			$	—		$	96,754,979
Global Realty Equity Portfolio
Common Stocks*		$	199,105		$	1,394,915			$	—		$	1,594,020
Real Estate Investment Trusts*			2,623,704			1,130,799				—			3,754,503
Right*			—			48				—			48
Short-Term Investment			21,533			—				—			21,533
Total		$	2,844,342		$	2,525,762			$	—		$	5,370,104
Global Listed Infrastructure Portfolio
Assets:
Common Stocks*		$	664,590,443		$	1,746,262,355			$	—		$	2,410,852,798
Short-Term Investment			108,771,245			—				—			108,771,245
Other Financial Instruments**
Forward Currency Contracts			—			10,026,034				—			10,026,034
Total		$	773,361,688		$	1,756,288,389			$	—		$	2,529,650,077
Liabilities:
Other Financial Instruments**
Forward Currency Contracts		$	—		$	(4,742,400	)		$	—		$	(4,742,400	)

*	Please refer to Portfolios of Investments (page 14 through 18) 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.

The security to which footnote (c) in the Notes to Portfolios of Investments applies is included in Level 2 and was valued based on reference to a similar security 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 Global Realty Equity and Global Listed Infrastructure Portfolios can transfer from Level 1 to Level 2 as a result of fair value pricing procedure triggers being met and would revert to Level 1 when the fair value pricing procedure triggers are no longer met. Accordingly, a significant portion of the

Portfolios’ investments are categorized as Level 2 investments. 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, 2015.

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.

40  Annual Report

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

A Portfolio may write or purchase call or put options to seek to realize, through the receipt of premiums and changes in market value, a greater return than would be realized on the underlying securities alone, or to seek to protect the Portfolio from losses.

US Realty Equity Portfolio

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2015 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Equity Risk:
Net realized gain on purchased options	$	174,437

Global Listed Infrastructure Portfolio

During the year ended December 31, 2015, the notional amounts of purchases and sales of forward currency contracts were $6,811,300,899 and $7,484,678,878, respectively, with average monthly notional exposure of approximately $1,635,200,000.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2015:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	10,026,034
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	4,742,400

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2015 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	120,779,649
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(12,003,369	)

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

During the year ended December 31, 2015, the US Realty Income and Global Realty Equity Portfolios did not trade in derivative instruments.

As of December 31, 2015, Global Listed Infrastructure Portfolio holds derivative instruments that are eligible for offset in the Statement of Assets and Liabilities and are subject to master netting arrangements. A master netting arrangement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as any cash collateral, through 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, 2015:

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		$	10,026,034		$	—		$	10,026,034

Annual Report  41

				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
BNP Paribas SA		$	1,573,009		$	(1,271,896	)		$	—		$	301,113
Canadian Imperial Bank of Commerce			901,099			(254,766	)			—			646,333
Citibank NA			459,946			(241,370	)			—			218,576
Credit Suisse International			694,117			(694,117	)			—			—
HSBC Bank USA NA			515,319			(331,373	)			—			183,946
JPMorgan Chase Bank NA			131,112			(112,072	)			—			19,040
Royal Bank of Canada			1,314,917			(366,655	)			—			948,262
Standard Chartered Bank			2,574,041			(1,013,225	)			—			1,560,816
State Street Bank and Trust Co.			1,256,366			(348,392	)			—			907,974
The Bank of New York Mellon Corp.			606,108			(93,235	)			—			512,873
Total		$	10,026,034		$	(4,727,101	)		$	—		$	5,298,933

Description	Gross Amounts of Recognized Liabilities			Gross Amounts Offset in the Statement of Assets and Liabilities			Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities
Forward Currency Contracts		$	4,742,400		$	—		$	4,742,400

				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		$	1,271,896		$	(1,271,896	)		$	—		$	—
Canadian Imperial Bank of Commerce			254,766			(254,766	)			—			—
Citibank NA			241,370			(241,370	)			—			—
Credit Suisse International			709,416			(694,117	)			—			15,299
HSBC Bank USA NA			331,373			(331,373	)			—			—
JPMorgan Chase Bank NA			112,072			(112,072	)			—			—
Royal Bank of Canada			366,655			(366,655	)			—			—
Standard Chartered Bank			1,013,225			(1,013,225	)			—			—
State Street Bank and Trust Co.			348,392			(348,392	)			—			—
The Bank of New York Mellon Corp.			93,235			(93,235	)			—			—
Total		$	4,742,400		$	(4,727,101	)		$	—		$	15,299

11. Subsequent Events

Management has evaluated subsequent events affecting the Fund through the issuance of the financial

statements and has determined that there were no subsequent events that required adjustment or disclosure.

42  Annual Report

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

To the Board of Directors of The Lazard Funds, Inc. and the Shareholders of Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio and Lazard Global Listed Infrastructure Portfolio:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Lazard US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio and Lazard Global Listed Infrastructure Portfolio (collectively the “Portfolios”), four of the portfolios constituting The Lazard Funds, Inc. (the “Funds”) as of December 31, 2015, and the related statements of operations for the year then ended, and the statements of changes in net assets and the financial highlights for each of the two years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the periods presented on or before December 31, 2013 were audited by other auditors whose report, dated February 28, 2014, expressed an unqualified opinion on those financial highlights.

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 Portfolios are not required to have, nor were we engaged to perform, an audit of their 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 Portfolios’ 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, 2015, 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 US Realty Income Portfolio, Lazard US Realty Equity Portfolio, Lazard Global Realty Equity Portfolio and Lazard Global Listed Infrastructure Portfolio, of The Lazard Funds, Inc. as of December 31, 2015, the results of their operations for the year then ended, and the changes in their net assets and the financial highlights for each of the two years in 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 29, 2016

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 (62)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012) Cornell Law School, Visiting Professor of Practice (2015 – present); previously, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)
Kenneth S. Davidson (70)	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 (53)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present) TIAA-CREF Funds (65 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 (44)	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)
Richard Reiss, Jr. (71)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present) Resource Americas, Inc., a real estate management company, Director (2016 – present) O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (68)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

44  Annual Report

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)
Interested Directors(4):
Charles L. Carroll (55)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (55)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present) Lazard Ltd, Vice Chairman and Director (2010 – present)

(1)	The address of each Director of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each Director serves as a Director for each of the funds in the Lazard Fund Complex (comprised of, as of January 31, 2016, 41 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 funds in the Lazard Fund Complex.
(3)	“Independent Directors” are not “interested persons” (as defined in the 1940 Act) of the Fund.
(4)	Messrs. Bhutani and Carroll are “interested persons” (as defined in the 1940 Act) of the Fund because of their positions with the Investment Manager.

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

Annual Report  45

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 (43)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Stephen St. Clair (57)	Treasurer (May 2003)	Vice President of the Investment Manager
Mark R. Anderson (45)	Chief Compliance Officer (September 2014)	Director and Chief Compliance Officer 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 (40)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President) and Director of Legal Affairs (since July 2015) of the Investment Manager
Shari L. Soloway (34)	Assistant Secretary (November 2015)	Senior Vice President, Legal and Compliance, of the Investment Manager (since September 2015) Vice President and Associate General Counsel of GE Asset Management (July 2011 – September 2015) Associate at Clifford Chance US LLP (2006 – July 2011)
Cesar A. Trelles (41)	Assistant Treasurer (December 2004)	Vice President of the Investment Manager

(1)	The address of each officer of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each officer serves for an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation or removal. Each officer serves in the same capacity for the other funds in the Lazard Fund Complex.
(3)	In addition to Charles L. Carroll, President, whose information is included in the Interested Directors section.

46  Annual Report

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

Tax Information

Year Ended December 31, 2015

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2015:

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

Portfolio	Percentage
US Realty Income		0.03	%
US Realty Equity		1.49
Global Realty Equity		13.31
Global Listed Infrastructure		34.74

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

Portfolio	Percentage
US Realty Income		0.03	%
US Realty Equity		1.72
Global Realty Equity		0.61
Global Listed Infrastructure		7.05

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

Proxy Voting

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

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

Form N-Q

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

Annual Report  47

NOTES

NOTES

NOTES

NOTES

NOTES

NOTES

NOTES

The Lazard Funds, Inc.

30 Rockefeller Plaza

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

Investment Manager

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

Distributor

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

Custodian

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

Transfer Agent and Dividend Disbursing Agent

Boston Financial Data Services, Inc.
P.O. Box 8514
Boston, Massachusetts 02266-8514
Telephone: 800-986-3455

Independent Registered Public Accounting Firm

Deloitte & Touche LLP
30 Rockefeller Plaza

New York, New York 10112-0015

Legal Counsel

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

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

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

ITEM 2. CODE OF ETHICS.

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

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

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

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $890,000 in 2014 and $1,083,682 in 2015.

(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 $203,900 in 2014 and $526,507 in 2015. 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 services 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 $1,290,951 in 2014 and $906,230 in 2015.

(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 8, 2016

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 8, 2016
By	/s/ Christopher Snively
	Christopher Snively
	Chief Financial Officer
Date	March 8, 2016