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:      12/31/16

ITEM 1. REPORTS TO STOCKHOLDERS.

Lazard Funds Annual Report

December 31, 2016

Alternative Funds

Lazard Enhanced Opportunities Portfolio

Lazard Fundamental Long/Short Portfolio

PRIVACY NOTICE

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 and credit history • Assets and income • Account transactions 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 and applicable state laws. These measures include computer safeguards and secured files and buildings.
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 may 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.

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
6	Performance Overviews
8	Information About Your Portfolio’s Expenses
10	Portfolio Holdings Presented by Sector
11	Portfolios of Investments
11	Lazard Enhanced Opportunities Portfolio
17	Lazard Fundamental Long/Short Portfolio
20	Notes to Portfolios of Investments
22	Statements of Assets and Liabilities
23	Statements of Operations
24	Statements of Changes in Net Assets
25	Financial Highlights
27	Notes to Financial Statements
39	Report of Independent Registered Public Accounting Firm
40	Board of Directors and Officers Information
43	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 each Portfolio’s summary prospectus contain the investment objectives, risks, charges, expenses and other information about each Portfolio of the Fund, which are not detailed in this report.

Distributed by Lazard Asset Management Securities LLC.

Annual Report  1

The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

In 2016, global equity markets generally performed well despite significant bouts of volatility caused by unexpected economic and political events. In Europe, returns were muted as the United Kingdom’s June vote to leave the European Union weighed on the pound sterling and UK assets. In December, Prime Minister Matteo Renzi’s resounding defeat in the Italian referendum on constitutional reform and his subsequent resignation added to uncertainty in the region. A surprise outcome to the US presidential election caused US stocks to rally sharply at year-end in anticipation of lower corporate taxes and regulatory reform. Meanwhile, emerging markets equities snapped their negative streak and ended the year firmly higher, primarily as the price of oil and other commodities stabilized.

In the first half of 2016, yields across most global bond markets fell due to uneven news flow and seesawing risk sentiment. However, yields increased toward the end of the year in response to inflationary pressures, higher oil prices, and strong economic data. The US Federal Reserve delivered its long-awaited rate hike in December, and is widely expected to deliver additional hikes in 2017. In contrast, European monetary policy is expected to remain loose, based on announced asset purchase plans from the European Central Bank.

The US dollar continued to strengthen against other major currencies in 2016. The Japanese yen appreciated even after the Bank of Japan adopted a negative interest rate policy early in the year, but weakened considerably in November and December due to Japan’s widening interest rate differential with the United States. Over the year, the biggest currency laggards included the Mexican peso, which was hurt by Donald Trump’s election victory, and the Turkish lira, which was weighed down by a surprise coup attempt in Turkey.

At Lazard Asset Management, we strive to identify ways to help our clients achieve their investment goals. As such, we launched two mutual funds in 2016 with characteristics that we believe can help investors navigate a changing financial landscape.

As always, we appreciate your continued confidence in our investment management capabilities and we 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 speed and widespread nature of the equity market sell-off that began in the first quarter of 2016 caught investors by surprise in what was, at one point, the worst start to the year for most major US equity indices since the 1930s. Equally surprising was the steady climb of broad equity markets from the third week in February through the end of March, leaving the S&P 500^® Index (the “S&P 500 Index”) close to its high of the year. Commodities, including metals, mining, and energy, were the laggards driving the market lower through the first six weeks of the year. However, they just as forcefully drove market leadership into the second half of the first quarter, joined by rallies in early cyclicals and industrials. Credit spreads seemingly reflected risk-off concerns globally, as the market focused on lower global growth and trade, while concerns about deflation topped any concerns surrounding inflation or rising rates. The US 10-year Treasury quickly reflected risk-off concerns as the first quarter began, and yields steadily dropped to a low of 1.66% before easing back to a yield of 1.9% in early March as the risk-on rally ensued. Dovish comments from the US Federal Reserve (the “Fed”) and support of central banks around the world forced the yield to turn lower, ending the first quarter at 1.77%. Equity volatility, as measured by the Chicago Board Options Exchange Volatility^® Index (the “VIX”), moved markedly higher as investors looked to hedge equity prices as the bottom began to fall out of the market.

In the second quarter, the S&P 500 Index traded in a relatively tight range throughout most of the quarter. This held true until the last week of June, when the S&P 500 Index declined nearly 5.75% in two trading sessions, once the outcome of the “Brexit” vote had become clear. By the end of the first half of the year, the S&P 500 Index had regained most of this short-lived decline, and closed up approximately 1.9%. Meanwhile, most European equity indices were lower, as was the Nikkei-225. Intra-quarter, volatility (as measured by the VIX), nearly doubled at one point, reaching as high as 26 in late June. Sovereign spreads traded in negative territory in certain developed economies, specifically Germany and Japan, a dynamic the market had never seen before. Contra-

dicting economic data points, coupled with heightened geopolitical risks, clouded the outlook for when the Fed might raise rates again. This, among other things, resulted in significant volatility in the US dollar, but this paled against the revaluation of the British pound sterling. Both high yield and investment grade returns benefited from the improvement in Treasuries, which combined with improvement in spreads, yielded positive returns.

Equity markets moved higher in the third quarter. The threat of “Brexit” subsided, as did concerns about global growth, while angst regarding central bank policies (both in the US and abroad) took center stage. Earnings were largely better than expected, with expectations having come down substantially from initial estimates. Sector rotation was a prominent theme in the third quarter. Select industrials, REITS, commodities, utilities, metals and mining underperformed, while previous laggards, including banks and airlines, outperformed. Corporate credit showed steady improvement throughout the third quarter. Credit spreads reached year-to-date lows by third-quarter end, despite mixed fundamentals (higher leverage, lower growth). Record low sovereign yields and a quiet new issue calendar paced gains. The US 10-year Treasury, as well as sovereign rates across most of the developed world, hit historically low levels, reflecting an uncharacteristically strong use of monetary policy to boost global growth. Dovish comments from the Fed and support of central banks around the world forced yields lower. The VIX faded throughout most of the July and August, before rising rapidly in September on a rebasing of interest rates.

Equity markets largely consolidated for most of the month of October, before trading down nearly 3.7% leading into the US election. President Trump’s victory, together with the Republican sweep of Congress, led to a rally in risk assets, which would send the S&P 500 Index 9.1% higher, before consolidating in the latter half of December. By the end of the fourth quarter, the S&P 500 Index rose by 3.4%, before dividends, while the Russell 2000^® Index gained 8.5%. Risk assets were further supported by improving global economic conditions, which by several measures, improved throughout the fourth quarter. Equities

Annual Report  3

shrugged off higher Treasury yields, which rose nearly 85 basis points from the October low, to end the quarter at 2.44%. Sector rotation was a prominent theme in the fourth quarter. Industrials, commodities, transports utilities, metals and mining, technology, and financials outperformed. Traditionally defensive sectors, including pharmaceuticals, consumer nondurables, and health care, generally underperformed. Credit markets improved throughout the quarter, with the majority of gains occurring post the November elections. Credit spreads reached year-to-date lows by fourth-quarter end, despite somewhat mixed fundamentals (higher leverage, lower growth), and were paced by a marked improvement in the energy complex and constructive technicals. Sovereign yields rebounded higher from record lows, but this impacted valuations modestly. Rates rebounded higher in the fourth quarter, in response to improving global economic conditions and an uptick in inflation expectations. The Fed raised rates for the second time in a year in December, citing tightness in the labor markets and an increase in inflation. The Treasury curve steepened reflecting an improved outlook for economic growth, particularly in the US. The VIX traded in a wide range in the fourth quarter, reaching a high of 23 in November and a low of 11 in late December, before settling in at 14 by the end of the fourth quarter.

Lazard Enhanced Opportunities Portfolio

For the year ended December 31, 2016, the Lazard Enhanced Opportunities Portfolio’s Institutional Shares posted a total return of 4.50%, while Open Shares posted a total return of 4.13%, as compared with the 11.71% return for the BofA Merrill Lynch U.S. Convertible ex Mandatory^® Index and 2.50% return for the HFRX Global Hedge Fund^® Index.

Company-specific events, uncorrelated with macro forces, allowed for idiosyncratic value capture throughout 2016, positively contributing to returns. In addition, the Portfolio’s long bias in selected sectors, including materials, transports, and commodities, also benefited returns. Lastly, with the exception of the first quarter, a broad-based improvement in credit/credit spread tightening positively contributed to returns in 2016. Despite near record low levels in the VIX, there were opportunities to trade volatility,

particularly in the first quarter. Interest rates, which fluctuated widely throughout the year, were a focus and ultimately ended up modestly higher on the year. Generally speaking, the marketplace saw ample liquidity, with strong interest in convertible products from both long-only investors and hedge funds. Valuations improved, but, in our opinion, still remain compelling on a relative and absolute basis, whether measured by implied spread or yield/premium relationships. Earnings were broadly better than expected, and economic data improved throughout the year at the margin, which supported equity valuations. Lastly, idiosyncratic developments provided ample opportunities in the convertible space to take advantage of price dislocations. Over the period, the use of derivatives positively contributed to returns. The primary use of derivatives (short positions on stocks and options) in the Portfolio is to mitigate macro equity, credit, and interest rate risk.

Lazard Fundamental Long/Short Portfolio

For the year ended December 31, 2016, the Lazard Fundamental Long/Short Portfolio’s Institutional Shares posted a total return of -7.99%, while Open Shares posted a total return of -8.28%, as compared with the 0.10% return for the HFRX Equity Hedge^® Index and 11.96% return for the S&P 500 Index.

Long positions in financial services providers including Comerica, Charles Schwab, and KeyCorp helped returns, as financials shares rallied later in the year amid investor expectations that less regulation, lower corporate taxes, and higher interest rates would boost the companies’ profitability. KeyCorp shares were also driven higher by better earnings resulting from synergies from its First Niagara acquisition, while Comerica was also helped by strong third-quarter earnings, which benefited from a restructuring plan that the company announced in July.

In contrast, the Portfolio was hurt by its long position in consumer financial services provider OneMain, as shares fell amid continued concerns about the company’s funding costs in a rising rate environment, as well as its subprime loan exposure. We sold our position, as a reassessment of our scenarios resulted in the risk-adjusted upside no longer being favorable. A long

4  Annual Report

position in medical device maker Natus Medical also hurt returns, as shares fell after the company announced revenues below expectations, citing pushouts of key orders. We sold our position after the announcement in April, as our thesis was negatively impacted by the company’s business in Venezuela. The Portfolio was also hurt

by its short position in retailer Big Lots, as shares rose after the company reported quarterly earnings above expectations and management raised its guidance for the year, driven by strong same-store sales. We covered our position after the announcement in May, as our thesis was no longer valid.

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, 2016; 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, 2016

	One Year			Since   Inception†
Institutional Shares**		4.50	%		1.03	%
Open Shares**		4.13	%		0.72	%
BofA Merrill Lynch U.S. Convertible ex Mandatory Index		11.71	%		4.23	%
HFRX Global Hedge Fund Index		2.50	%		-0.62	%

*	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 fund 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, 2016

	One Year			Since   Inception†
Institutional Shares**		-7.99	%		4.08	%
Open Shares**		-8.28	%		3.80	%
S&P 500 Index		11.96	%		9.00	%
HFRX Equity Hedge Index		0.10	%		-0.25	%

*	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

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, 2016 through December 31, 2016 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.

8  Annual Report

Portfolio	Beginning Account Value 7/1/16		Ending Account Value 12/31/16		Expenses Paid During Period* 7/1/16 - 12/31/16		Annualized Expense Ratio During Period 7/1/16 - 12/31/16
Enhanced Opportunities†
Institutional Shares
Actual	$	1,000.00	$	1,028.80	$	9.64		1.89	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,015.64	$	9.58		1.89	%
Open Shares
Actual	$	1,000.00	$	1,026.30	$	11.10		2.18	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,014.18	$	11.04		2.18	%
Fundamental Long/Short†
Institutional Shares
Actual	$	1,000.00	$	1,002.70	$	16.06		3.19	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,009.10	$	16.11		3.19	%
Open Shares
Actual	$	1,000.00	$	1,000.90	$	17.45		3.47	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,007.69	$	17.51		3.47	%

*	Expenses are equal to the annualized expense ratio, net of expense waivers and reimbursements, of each Share class multiplied by the average account value over the period, multiplied by 184/366 (to reflect one-half year period).
†	The expense ratios include broker expense and dividend expense on securities sold short.

Annual Report  9

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2016

	Lazard Enhanced Opportunities Portfolio						Lazard Fundamental Long/Short Portfolio
Sector	Long*			Short†				Long*		Short†
Consumer Discretionary		16.3	%		-16.7	%		8.0	%		-15.8	%
Consumer Staples		0.6			-0.9			5.6			-7.6
Energy		8.9			-13.8			2.1			—
Financials		10.6			-6.6			11.5			-22.0
Health Care		13.7			-16.0			8.5			-19.8
Industrials		8.7			-12.6			8.7			-7.1
Information Technology		14.4			-17.2			12.9			-23.9
Materials		6.7			-9.0			2.1			-2.0
Real Estate		7.0			-7.2			—			-1.8
Telecommunication Services		—			—			1.6			—
Short-Term Investments		13.1			—			39.0			—
Total Investments		100.0	%		-100.0	%		100.0	%		-100.0	%

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

10  Annual Report

The Lazard Funds, Inc. Portfolios of Investments December 31, 2016

Description	Shares		Fair Value
Lazard Enhanced Opportunities Portfolio
Common Stocks | 2.4%
Canada | 0.1%
ECN Capital Corp.		5,189	$	12,753
France | 0.7%
Valeo SA		1,675		96,245
Mexico | 0.1%
Cemex SAB de CV Sponsored ADR (a)		1,700		13,651
United States | 1.5%
Air Lease Corp.		1,123		38,553
AK Steel Holding Corp. (a)		5,300		54,113
Atlas Air Worldwide Holdings, Inc. (a)		309		16,114
BroadSoft, Inc. (a)		800		33,000
Chesapeake Energy Corp. (a)		1,400		9,828
Manitowoc Foodservice, Inc. (a)		2,239		43,280
Workday, Inc. Class A (a)		400		26,436
				221,324
Total Common Stocks (Cost $316,830)				343,973

Description	Security Currency	Principal Amount (000)		Fair Value
Corporate Bonds | 150.2%
Canada | 3.3%
Element Fleet Management Corp.:
5.125%, 06/30/19 (b)	CAD		220	$	168,279
4.250%, 06/30/20 (b)	CAD		387		295,442
					463,721
China | 0.4%
Ctrip.com International, Ltd.,
1.250%, 09/15/22 (c)	USD		69		66,412
Greece | 2.4%
Aegean Marine Petroleum Network, Inc.:
4.000%, 11/01/18	USD		117		121,315
4.250%, 12/15/21	USD		226		219,926
					341,241

Description	Security Currency	Principal Amount (000)		Fair Value
Japan | 0.6%
Mirait Holdings Corp., 0.000%, 12/30/21	JPY		10,000	$	88,813
Mexico | 6.1%
Cemex SAB de CV:
3.750%, 03/15/18	USD		474		531,769
3.720%, 03/15/20	USD		308		329,560
					861,329
United States | 137.4%
Aceto Corp., 2.000%, 11/01/20	USD		174		167,149
Advanced Micro Devices, Inc., 2.125%, 09/01/26 (b)	USD		350		551,906
Aerojet Rocketdyne Holdings, Inc., 2.250%, 12/15/23 (b), (c)	USD		131		127,561
AK Steel Corp., 5.000%, 11/15/19 (b)	USD		245		505,159
Allscripts Healthcare Solutions, Inc., 1.250%, 07/01/20 (b)	USD		66		61,793
Altra Industrial Motion Corp., 2.750%, 03/01/31	USD		240		342,450
AMAG Pharmaceuticals, Inc., 2.500%, 02/15/19 (b)	USD		115		162,222
American Residential Properties OP LP, 3.250%, 11/15/18 (c)	USD		264		327,030
Amicus Therapeutics, Inc., 3.000%, 12/15/23 (b), (c)	USD		71		72,021
AmTrust Financial Services, Inc., 2.750%, 12/15/44 (b)	USD		314		266,311
Ascent Capital Group, Inc., 4.000%, 07/15/20	USD		70		52,500
BioMarin Pharmaceutical, Inc., 1.500%, 10/15/20 (b)	USD		217		254,297
Blackhawk Network Holdings, Inc., 1.500%, 01/15/22 (b), (c)	USD		149		152,725
Blucora, Inc., 4.250%, 04/01/19 (b)	USD		203		201,985
Bottomline Technologies de, Inc., 1.500%, 12/01/17 (b)	USD		166		170,669
BroadSoft, Inc., 1.000%, 09/01/22 (b)	USD		178		215,046
Brookdale Senior Living, Inc., 2.750%, 06/15/18 (b)	USD		63		61,307

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

Annual Report  11

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
CalAtlantic Group, Inc.:
0.250%, 06/01/19 (b)	USD		273	$	254,231
1.250%, 08/01/32 (b)	USD		333		342,782
Carriage Services, Inc., 2.750%, 03/15/21	USD		175		235,266
Chesapeake Energy Corp., 5.500%, 09/15/26 (b), (c)	USD		389		421,092
Clovis Oncology, Inc., 2.500%, 09/15/21 (b)	USD		140		143,850
Colony Starwood Homes:
4.500%, 10/15/17 (b)	USD		313		333,541
3.000%, 07/01/19 (b)	USD		271		295,390
Cornerstone OnDemand, Inc., 1.500%, 07/01/18 (b)	USD		166		172,640
Cowen Group, Inc., 3.000%, 03/15/19	USD		297		296,257
CSG Systems International, Inc., 4.250%, 03/15/36 (b), (c)	USD		282		314,606
Cypress Semiconductor Corp., 4.500%, 01/15/22 (b)	USD		219		246,238
DISH Network Corp., 3.375%, 08/15/26 (b), (c)	USD		376		427,935
Dycom Industries, Inc., 0.750%, 09/15/21 (b)	USD		110		120,038
Emergent BioSolutions, Inc., 2.875%, 01/15/21 (b)	USD		202		257,297
Encore Capital Group, Inc.:
3.000%, 11/27/17	USD		193		206,631
2.875%, 03/15/21 (b)	USD		37		32,329
Ensco Jersey Finance, Ltd., 3.000%, 01/31/24 (b)	USD		177		180,540
Forest City Realty Trust, Inc.:
4.250%, 08/15/18	USD		144		157,500
3.625%, 08/15/20	USD		335		348,819
FXCM, Inc., 2.250%, 06/15/18	USD		127		67,945
Green Plains, Inc.:
3.250%, 10/01/18	USD		322		463,277
4.125%, 09/01/22 (b), (c)	USD		218		258,057
Griffon Corp., 4.000%, 01/15/17	USD		188		330,527
HealthSouth Corp., 2.000%, 12/01/43 (b)	USD		117		138,499

Description	Security Currency	Principal Amount (000)		Fair Value
Hologic, Inc., 0.000%, 12/15/43 (b)	USD		260	$	318,662
Huron Consulting Group, Inc., 1.250%, 10/01/19 (b)	USD		180		175,837
Iconix Brand Group, Inc., 1.500%, 03/15/18 (b)	USD		309		290,460
Innoviva, Inc., 2.125%, 01/15/23 (b)	USD		230		194,925
Inphi Corp., 0.750%, 09/01/21 (b), (c)	USD		116		123,540
Insulet Corp., 1.250%, 09/15/21 (b), (c)	USD		161		149,126
Intercept Pharmaceuticals, Inc., 3.250%, 07/01/23 (b)	USD		162		144,383
InterDigital, Inc., 1.500%, 03/01/20 (b)	USD		77		104,287
j2 Global, Inc., 3.250%, 06/15/29 (b)	USD		63		83,239
Knowles Corp., 3.250%, 11/01/21 (b), (c)	USD		251		291,160
LGI Homes, Inc., 4.250%, 11/15/19	USD		136		193,800
Liberty Interactive LLC, 4.000%, 11/15/29	USD		254		150,919
Liberty Media Corp., 1.375%, 10/15/23	USD		119		127,776
Live Nation Entertainment, Inc., 2.500%, 05/15/19 (b)	USD		150		159,844
M/I Homes, Inc., 3.250%, 09/15/17	USD		157		177,999
Meritage Homes Corp., 1.875%, 09/15/32	USD		240		238,200
Navistar International Corp., 4.750%, 04/15/19 (b)	USD		321		316,987
Nuance Communications, Inc., 2.750%, 11/01/31 (b)	USD		162		163,114
NuVasive, Inc., 2.250%, 03/15/21 (b)	USD		147		186,598
PDL BioPharma, Inc., 2.750%, 12/01/21 (b)	USD		222		178,294
PRA Group, Inc., 3.000%, 08/01/20 (b)	USD		171		161,061
Proofpoint, Inc., 0.750%, 06/15/20 (b)	USD		84		94,868
PTC Therapeutics, Inc., 3.000%, 08/15/22	USD		147		87,557

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

12  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
Quidel Corp., 3.250%, 12/15/20 (b)	USD		97	$	95,545
Redwood Trust, Inc., 4.625%, 04/15/18 (b)	USD		295		294,447
Renewable Energy Group, Inc., 4.000%, 06/15/36 (b), (c)	USD		91		97,825
Rovi Corp., 0.500%, 03/01/20 (b)	USD		142		144,663
RTI International Metals, Inc., 1.625%, 10/15/19 (b)	USD		140		144,812
RWT Holdings, Inc., 5.625%, 11/15/19 (b)	USD		123		123,923
Shutterfly, Inc., 0.250%, 05/15/18 (b)	USD		381		385,524
SM Energy Co., 1.500%, 07/01/21 (b)	USD		175		202,453
Starwood Property Trust, Inc.:
3.750%, 10/15/17 (b)	USD		582		595,822
4.550%, 03/01/18 (b)	USD		140		152,512
Sucampo Pharmaceuticals, Inc., 3.250%, 12/15/21 (b)	USD		64		68,160
TerraVia Holdings, Inc., 5.000%, 10/01/19	USD		269		115,166
Tesla Motors, Inc., 0.250%, 03/01/19 (b)	USD		96		89,160
The Greenbrier Cos., Inc., 3.500%, 04/01/18	USD		270		338,006
The Medicines Co., 2.750%, 07/15/23 (b), (c)	USD		178		171,214
The Priceline Group, Inc.:
1.000%, 03/15/18 (b)	USD		163		256,623
0.900%, 09/15/21 (b)	USD		91		96,119
Toll Brothers Finance Corp., 0.500%, 09/15/32 (b)	USD		308		302,995
Trinity Industries, Inc., 3.875%, 06/01/36 (b)	USD		105		134,334
VEREIT, Inc., 3.000%, 08/01/18 (b)	USD		294		293,632
Viavi Solutions, Inc., 0.625%, 08/15/33 (b)	USD		70		72,363
Vitamin Shoppe, Inc., 2.250%, 12/01/20	USD		92		84,813
Wabash National Corp., 3.375%, 05/01/18	USD		77		107,848

Description	Security Currency	Principal Amount (000)		Fair Value
Weatherford International, Ltd., 5.875%, 07/01/21 (b)	USD		241	$	261,485
WebMD Health Corp., 1.500%, 12/01/20 (b)	USD		98		110,556
Workday, Inc., 1.500%, 07/15/20 (b)	USD		105		115,763
Wright Medical Group NV, 2.250%, 11/15/21 (b), (c)	USD		245		305,484
Wright Medical Group, Inc., 2.000%, 02/15/20 (b)	USD		223		232,338
Yahoo!, Inc., 0.000%, 12/01/18 (b)	USD		140		138,338
Zillow Group, Inc., 2.000%, 12/01/21 (b)	USD		113		116,037
					19,498,014
Total Corporate Bonds (Cost $20,510,709)					21,319,530

Description	Shares		Fair Value
Preferred Stocks | 1.6%
United States | 1.6%
Bunge, Ltd. (b)		1,510	$	154,186
William Lyon Homes		805		76,451
Total Preferred Stocks (Cost $210,586)				230,637

Description	Counterparty	Number of Contracts		Fair Value
Purchased Options | 0.1%
Altra Industrial Motion Corp. 40 Call, Expires 01/20/17	RBS		7	$	70
CalAtlantic Group, Inc. 35 Call, Expires 03/17/17	RBS		5		700
Cemex SAB de CV 9 Call, Expires 01/20/17	RBS		76		228
Cypress Semiconductor Corp. 12 Call, Expires 01/20/17	RBS		21		420
DISH Network Corp. 62.5 Call, Expires 01/20/17	RBS		23		1,334

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

Annual Report  13

Description	Counterparty	Number of Contracts		Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
Green Plains, Inc. 27 Call, Expires 01/20/17	RBS		23	$	3,105
Intercept Pharmaceuticals, Inc. 30 Call, Expires 03/17/17	RBS		3		1,627
Teck Resources, Ltd. 26 Call, Expires 02/17/17	RBS		13		312
VanEck Vectors Gold Miners ETF 25 Call, Expires 06/16/17	RBS		38		4,332
Total Purchased Options (Cost $28,170)					12,128

Description	Shares			Fair Value
Short-Term Investment | 23.4%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $3,313,905)		3,313,905		$	3,313,905
Total Investments excluding Securities Sold Short | 177.7% (Cost $24,380,200)					25,220,173
Securities Sold Short | (68.3)%
Common Stocks | (67.6)%
Canada | (0.8)%
ECN Capital Corp.		(1,495	)		(3,674	)
Element Fleet Management Corp.		(10,314	)		(95,716	)
Teck Resources, Ltd. Class B		(586	)		(11,738	)
					(111,128	)
China | (0.1)%
Ctrip.com International, Ltd. ADR (a)		(453	)		(18,120	)
Greece | (0.9)%
Aegean Marine Petroleum Network, Inc.		(13,009	)		(132,041	)
Japan | (0.1)%
Mirait Holdings Corp.		(1,900	)		(17,136	)

Description	Shares			Fair Value
Mexico | (2.4)%
Cemex SAB de CV Sponsored ADR (a)		(41,513	)	$	(333,349	)
United States | (63.3)%
Aceto Corp.		(2,443	)		(53,673	)
Advanced Micro Devices, Inc. (a)		(39,136	)		(443,802	)
Aerojet Rocketdyne Holdings, Inc. (a)		(1,279	)		(22,958	)
AK Steel Holding Corp. (a)		(45,572	)		(465,290	)
Allscripts Healthcare Solutions, Inc. (a)		(1,306	)		(13,334	)
Altra Industrial Motion Corp.		(9,503	)		(350,661	)
AMAG Pharmaceuticals, Inc. (a)		(3,587	)		(124,828	)
American Homes 4 Rent Class A REIT		(10,097	)		(211,835	)
Amicus Therapeutics, Inc. (a)		(9,111	)		(45,282	)
AmTrust Financial Services, Inc.		(5,359	)		(146,729	)
Arconic, Inc.		(2,059	)		(38,174	)
Ascent Capital Group, Inc., Class A (a)		(512	)		(8,325	)
Atlas Air Worldwide Holdings, Inc. (a)		(309	)		(16,114	)
BioMarin Pharmaceutical, Inc. (a)		(1,454	)		(120,449	)
Blackhawk Network Holdings, Inc. (a)		(1,708	)		(64,349	)
Blucora, Inc. (a)		(749	)		(11,048	)
Bottomline Technologies de, Inc. (a)		(2,117	)		(52,967	)
BroadSoft, Inc. (a)		(4,409	)		(181,871	)
Brookdale Senior Living, Inc. (a)		(533	)		(6,620	)
Bunge, Ltd.		(1,138	)		(82,209	)
CalAtlantic Group, Inc.		(4,713	)		(160,289	)
Carriage Services, Inc.		(6,266	)		(179,458	)
Chesapeake Energy Corp. (a)		(38,053	)		(267,132	)
Clovis Oncology, Inc. (a)		(1,622	)		(72,049	)
Colony Starwood Homes REIT		(9,960	)		(286,948	)
Cornerstone OnDemand, Inc. (a)		(611	)		(25,851	)
Cowen Group, Inc., Class A (a)		(8,526	)		(132,153	)
CSG Systems International, Inc.		(2,709	)		(131,116	)
Cypress Semiconductor Corp.		(6,865	)		(78,536	)
DISH Network Corp., Class A (a)		(5,643	)		(326,899	)
Dycom Industries, Inc. (a)		(769	)		(61,743	)
Emergent BioSolutions, Inc. (a)		(4,630	)		(152,049	)
Encore Capital Group, Inc. (a)		(2,574	)		(73,745	)
Ensco PLC Class A		(9,848	)		(95,723	)
Forest City Realty Trust, Inc., Class A REIT		(9,597	)		(200,001	)
Green Plains, Inc.		(19,240	)		(535,834	)
Griffon Corp.		(4,991	)		(130,764	)
HealthSouth Corp.		(1,737	)		(71,634	)

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

14  Annual Report

Description	Shares			Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
Hologic, Inc. (a)		(1,482	)	$	(59,458	)
Huron Consulting Group, Inc. (a)		(879	)		(44,521	)
Iconix Brand Group, Inc. (a)		(3,455	)		(32,270	)
Innoviva, Inc. (a)		(7,504	)		(80,293	)
Inphi Corp. (a)		(1,462	)		(65,234	)
Insulet Corp. (a)		(1,668	)		(62,850	)
Intercept Pharmaceuticals, Inc. (a)		(529	)		(57,476	)
InterDigital, Inc.		(746	)		(68,147	)
j2 Global, Inc.		(612	)		(50,062	)
Knowles Corp. (a)		(10,089	)		(168,587	)
LGI Homes, Inc. (a)		(5,358	)		(153,935	)
Liberty Media Corp-Liberty Braves (a)		(180	)		(3,688	)
Liberty Media Corp-Liberty Media (a)		(414	)		(12,979	)
Liberty Media Corp-Liberty SiriusXM (a)		(1,657	)		(57,200	)
Live Nation Entertainment, Inc. (a)		(2,073	)		(55,142	)
M/I Homes, Inc. (a)		(4,288	)		(107,972	)
Meritage Homes Corp. (a)		(220	)		(7,656	)
Navistar International Corp. (a)		(2,797	)		(87,742	)
NuVasive, Inc. (a)		(1,457	)		(98,144	)
PDL BioPharma, Inc.		(28,739	)		(60,927	)
PRA Group, Inc. (a)		(1,405	)		(54,936	)
Proofpoint, Inc. (a)		(662	)		(46,770	)
PTC Therapeutics, Inc. (a)		(2,348	)		(25,617	)
Quidel Corp. (a)		(1,764	)		(37,785	)
Redwood Trust, Inc. REIT		(2,344	)		(35,652	)
Renewable Energy Group, Inc. (a)		(7,421	)		(71,984	)
Shutterfly, Inc. (a)		(2,065	)		(103,622	)
SM Energy Co.		(3,390	)		(116,887	)
Starwood Property Trust, Inc. REIT		(4,193	)		(92,036	)
Sucampo Pharmaceuticals, Inc., Class A (a)		(2,021	)		(27,385	)
TerraVia Holdings, Inc. (a)		(14,635	)		(16,830	)
Tesla Motors, Inc. (a)		(79	)		(16,882	)
The Greenbrier Cos., Inc.		(5,541	)		(230,229	)
The Medicines Co. (a)		(2,366	)		(80,302	)
The Priceline Group, Inc. (a)		(181	)		(265,357	)
TiVo Corp. (a)		(2,309	)		(48,258	)
Toll Brothers, Inc. (a)		(331	)		(10,261	)
Trinity Industries, Inc.		(2,884	)		(80,060	)
Viavi Solutions, Inc. (a)		(1,582	)		(12,941	)
Vitamin Shoppe, Inc. (a)		(1,574	)		(37,382	)

Description	Shares			Fair Value
Wabash National Corp. (a)		(5,160	)	$	(81,631	)
Weatherford International PLC (a)		(23,500	)		(117,265	)
WebMD Health Corp. (a)		(1,257	)		(62,309	)
William Lyon Homes Class A (a)		(3,273	)		(62,285	)
Workday, Inc., Class A (a)		(1,247	)		(82,414	)
Wright Medical Group NV (a)		(13,223	)		(303,865	)
Yahoo!, Inc. (a)		(826	)		(31,941	)
Zillow Group, Inc., Class C (a)		(1,198	)		(43,691	)
					(8,973,302	)
Total Common Stocks (Proceeds $8,960,158)					(9,585,076	)

Description	Security Currency	Principal Amount (000)			Fair Value
Corporate Bonds | (0.4)%
United States | (0.4)%
Air Lease Corp. (Proceeds $55,677)	USD		(45,000	)	$	(60,469	)

Description	Shares			Fair Value
Exchange-Traded Funds | (0.3)%
United States | (0.3)%
VanEck Vectors Gold Miners ETF (Proceeds $45,624)		(2,204	)	$	(46,107	)
Total Securities Sold Short (Proceeds $9,061,459)					(9,691,652	)
Total Investments | 109.4% (Cost and short proceeds $15,318,741) (d), (e)				$	15,528,521
Liabilities in Excess of Cash and Other Assets | (9.4)%					(1,340,024	)
Net Assets | 100.0%				$	14,188,497

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

Annual Report  15

Lazard Enhanced Opportunities Portfolio (concluded)

Forward Currency Contracts open at December 31, 2016:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
USD		397,843	CAD		395,107	SSB	03/21/17	$	2,736	$	—
USD		79,743	EUR		80,309	SSB	03/21/17		—		567
Total gross unrealized appreciation/depreciation on Forward Currency Contracts								$	2,736	$	567

Written Options open at December 31, 2016:

Description	Counterparty	Number of Contracts		Strike Price		Expiration Date	Premium		Fair Value
Altra Industrial Motion Corp. 35 Put	RBS		7	$	35.00	01/20/17	$	353	$	(140	)
CalAtlantic Group, Inc. 31 Put	RBS		5		31.00	03/17/17		717		(350	)
Cemex SAB de CV 8 Put	RBS		76		8.00	01/20/17		4,918		(2,128	)
DISH Network Corp. 52.5 Put	RBS		23		52.50	01/20/17		4,690		(460	)
Green Plains, Inc. 25 Put	RBS		23		25.00	01/20/17		5,023		(230	)
Intercept Pharmaceuticals, Inc. 100 Put	RBS		3		100.00	03/17/17		1,633		(1,633	)
Teck Resources, Ltd. 21 Put	RBS		13		21.00	02/17/17		2,069		(2,782	)
VanEck Vectors Gold Miners ETF 18 Put	RBS		38		18.00	06/16/17		4,280		(3,990	)
Total Written Options			188				$	23,683	$	(11,713	)

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

16  Annual Report

Description	Shares		Fair Value
Lazard Fundamental Long/Short Portfolio
Common Stocks | 97.4%
Auto Components | 0.4%
Adient PLC (a)		8,235	$	482,571
Banks | 8.4%
Bank of America Corp. (b)		184,000		4,066,400
Comerica, Inc. (b)		47,955		3,266,215
KeyCorp. (b)		161,200		2,945,124
				10,277,739
Beverages | 3.7%
Molson Coors Brewing Co., Class B (b)		46,141		4,489,981
Biotechnology | 5.0%
BioMarin Pharmaceutical, Inc. (a)		15,135		1,253,783
Celgene Corp. (a), (b)		26,795		3,101,521
Incyte Corp. (a)		7,000		701,890
Vertex Pharmaceuticals, Inc. (a)		13,980		1,029,907
				6,087,101
Building Products | 2.8%
Johnson Controls International PLC (b)		84,755		3,491,058
Capital Markets | 8.7%
Intercontinental Exchange, Inc. (b)		106,860		6,029,041
The Charles Schwab Corp. (b)		117,156		4,624,148
				10,653,189
Communications Equipment | 2.0%
Cisco Systems, Inc. (b)		82,960		2,507,051
Containers & Packaging | 3.4%
International Paper Co. (b)		78,400		4,159,904
Diversified Telecommunication Services | 2.5%
AT&T, Inc. (b)		71,605		3,045,361
Electrical Equipment | 3.5%
Rockwell Automation, Inc. (b)		31,560		4,241,664
Food & Staples Retailing | 4.3%
Walgreens Boots Alliance, Inc. (b)		64,075		5,302,847
Food Products | 1.0%
Kellogg Co.		16,900		1,245,699

Description	Shares		Fair Value
Health Care Providers & Services | 2.1%
Humana, Inc. (b)		12,390	$	2,527,932
Industrial Conglomerates | 1.7%
Honeywell International, Inc.		17,964		2,081,129
Insurance | 1.3%
Aon PLC		14,236		1,587,741
Internet Software & Services | 7.9%
Alphabet, Inc., Class C (a), (b)		8,238		6,358,253
eBay, Inc. (a), (b)		85,525		2,539,237
Facebook, Inc., Class A (a)		7,528		866,097
				9,763,587
IT Services | 4.9%
Fidelity National Information Services, Inc.		16,800		1,270,752
Vantiv, Inc., Class A (a), (b)		59,000		3,517,580
Visa, Inc., Class A		16,484		1,286,082
				6,074,414
Life Sciences Tools & Services | 1.5%
Thermo Fisher Scientific, Inc.		12,844		1,812,288
Machinery | 5.8%
Caterpillar, Inc. (b)		30,900		2,865,666
Dover Corp.		26,900		2,015,617
Parker Hannifin Corp.		16,480		2,307,200
				7,188,483
Media | 3.8%
Comcast Corp., Class A (b)		68,000		4,695,400
Oil, Gas & Consumable Fuels | 3.4%
EOG Resources, Inc.		18,800		1,900,680
Pioneer Natural Resources Co.		12,660		2,279,686
				4,180,366
Pharmaceuticals | 5.0%
Allergan PLC (a), (b)		12,574		2,640,666
Bristol-Myers Squibb Co.		18,210		1,064,192
Pfizer, Inc. (b)		75,900		2,465,232
				6,170,090
Semiconductors & Semiconductor Equipment | 4.8%
Applied Materials, Inc.		67,100		2,165,317
Skyworks Solutions, Inc. (b)		50,315		3,756,518
				5,921,835
Software | 0.9%
Red Hat, Inc. (a)		16,216		1,130,255

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

Annual Report  17

Description	Shares			Fair Value
Lazard Fundamental Long/Short Portfolio (continued)
Specialty Retail | 5.8%
AutoZone, Inc. (a), (b)		4,372		$	3,452,962
Lowe’s Cos., Inc. (b)		52,482			3,732,520
					7,185,482
Textiles, Apparel & Luxury Goods | 2.8%
VF Corp. (b)		63,630			3,394,661
Total Common Stocks (Cost $111,797,545)					119,697,828
Short-Term Investment | 62.4%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $76,604,699)		76,604,699			76,604,699
Total Investments excluding Securities Sold Short | 159.8% (Cost $188,402,244)					196,302,527
Securities Sold Short | (59.2)%
Aerospace & Defense | (1.9)%
Lockheed Martin Corp.		(2,695	)		(673,588	)
The Boeing Co.		(10,700	)		(1,665,776	)
					(2,339,364	)
Air Freight & Logistics | (0.5)%
CH Robinson Worldwide, Inc.		(8,679	)		(635,824	)
Auto Components | (0.6)%
Gentherm, Inc. (a)		(20,400	)		(690,540	)
Banks | (4.1)%
SunTrust Banks, Inc.		(20,650	)		(1,132,652	)
Umpqua Holdings Corp.		(85,500	)		(1,605,690	)
US Bancorp		(45,126	)		(2,318,123	)
					(5,056,465	)
Biotechnology | (3.3)%
Amgen, Inc.		(16,315	)		(2,385,416	)
Regeneron Pharmaceuticals, Inc. (a)		(4,565	)		(1,675,766	)
					(4,061,182	)

Description	Shares			Fair Value
Capital Markets | (3.2)%
Federated Investors, Inc., Class B		(34,700	)	$	(981,316	)
Franklin Resources, Inc.		(25,785	)		(1,020,570	)
Waddell & Reed Financial, Inc., Class A		(47,863	)		(933,807	)
WisdomTree Investments, Inc.		(87,500	)		(974,750	)
					(3,910,443	)
Chemicals | (0.5)%
The Sherwin-Williams Co.		(2,368	)		(636,376	)
Consumer Finance | (0.5)%
LendingClub Corp. (a)		(122,600	)		(643,650	)
Containers & Packaging | (0.7)%
Sealed Air Corp.		(19,072	)		(864,724	)
Distributors | (1.1)%
Genuine Parts Co.		(13,839	)		(1,322,178	)
Diversified Financial Services | (0.9)%
Voya Financial, Inc.		(28,805	)		(1,129,732	)
Electronic Equipment, Instruments & Components | (1.4)%
Corning, Inc.		(72,300	)		(1,754,721	)
Food & Staples Retailing | (2.1)%
Wal-Mart Stores, Inc.		(36,520	)		(2,524,262	)
Food Products | (0.9)%
Snyder’s-Lance, Inc.		(27,200	)		(1,042,848	)
Health Care Equipment & Supplies | (1.9)%
Baxter International, Inc.		(14,190	)		(629,185	)
DexCom, Inc. (a)		(8,575	)		(511,927	)
Glaukos Corp. (a)		(20,400	)		(699,720	)
Zimmer Biomet Holdings, Inc.		(5,295	)		(546,444	)
					(2,387,276	)
Health Care Providers & Services | (1.9)%
Fresenius Medical Care AG & Co.
KGaA ADR		(29,700	)		(1,253,637	)
Owens & Minor, Inc.		(32,189	)		(1,135,950	)
					(2,389,587	)

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

18  Annual Report

Description	Shares			Fair Value
Lazard Fundamental Long/Short Portfolio (concluded)
Health Care Technology | (1.0)%
athenahealth, Inc. (a)		(5,445	)	$	(572,651	)
Medidata Solutions, Inc. (a)		(13,100	)		(650,677	)
					(1,223,328	)
Hotels, Restaurants & Leisure | (1.6)%
McDonald’s Corp.		(10,315	)		(1,255,542	)
Starbucks Corp.		(12,000	)		(666,240	)
					(1,921,782	)
Household Durables | (1.6)%
CalAtlantic Group, Inc.		(18,948	)		(644,421	)
Lennar Corp., Class A		(14,977	)		(642,963	)
NVR, Inc. (a)		(411	)		(685,959	)
					(1,973,343	)
Household Products | (1.6)%
Colgate-Palmolive Co.		(29,700	)		(1,943,568	)
Industrial Conglomerates | (0.9)%
Carlisle Cos., Inc.		(9,500	)		(1,047,755	)
Insurance | (3.3)%
Aflac, Inc.		(18,315	)		(1,274,724	)
The Progressive Corp.		(21,100	)		(749,050	)
The Travelers Cos., Inc.		(16,438	)		(2,012,340	)
					(4,036,114	)
Internet & Direct Marketing Retail | (0.5)%
Expedia, Inc.		(5,700	)		(645,696	)
Internet Software & Services | (0.5)%
WebMD Health Corp. (a)		(13,500	)		(669,195	)
IT Services | (9.2)%
Alliance Data Systems Corp.		(4,239	)		(968,611	)
Amdocs, Ltd.		(34,246	)		(1,994,830	)
Genpact, Ltd. (a)		(28,240	)		(687,362	)
Infosys, Ltd. Sponsored ADR		(47,800	)		(708,874	)
International Business Machines Corp.		(16,909	)		(2,806,725	)
MAXIMUS, Inc.		(20,400	)		(1,138,116	)
PayPal Holdings, Inc. (a)		(27,900	)		(1,101,213	)
Teradata Corp. (a)		(70,500	)		(1,915,485	)
					(11,321,216	)
Life Sciences Tools & Services | (1.2)%
PAREXEL International Corp. (a)		(22,800	)		(1,498,416	)

Description	Shares			Fair Value
Machinery | (0.9)%
PACCAR, Inc.		(17,525	)	$	(1,119,848	)
Media | (1.1)%
The Walt Disney Co.		(12,694	)		(1,322,969	)
Multiline Retail | (1.1)%
Target Corp.		(18,695	)		(1,350,340	)
Pharmaceuticals | (2.3)%
Merck & Co., Inc.		(15,500	)		(912,485	)
Sanofi ADR		(47,200	)		(1,908,768	)
					(2,821,253	)
Real Estate Management & Development | (1.1)%
CBRE Group, Inc., Class A (a)		(42,300	)		(1,332,027	)
Semiconductors & Semiconductor Equipment | (0.5)%
Ambarella, Inc. (a)		(11,200	)		(606,256	)
Software | (2.5)%
Check Point Software Technologies, Ltd. (a)		(11,738	)		(991,391	)
Intuit, Inc.		(6,165	)		(706,571	)
Oracle Corp.		(34,200	)		(1,314,990	)
					(3,012,952	)
Specialty Retail | (1.8)%
Ascena Retail Group, Inc. (a)		(188,600	)		(1,167,434	)
The Gap, Inc.		(24,135	)		(541,589	)
The Michaels Cos., Inc. (a)		(27,300	)		(558,285	)
					(2,267,308	)
Thrifts & Mortgage Finance | (1.0)%
New York Community Bancorp, Inc.		(76,800	)		(1,221,888	)
Total Securities Sold Short (Proceeds $69,897,648)					(72,724,426	)
Total Investments | 100.6% (Cost and short proceeds $118,504,596) (d)				$	123,578,101
Liabilities in Excess of Cash and Other Assets | (0.6)%					(744,038	)
Net Assets | 100.0%				$	122,834,063

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

Annual Report  19

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2016

(a)	Non-income producing security.
(b)	Some or all of this security position has been pledged to cover collateral requirements on securities sold short.
(c)	Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2016, the percentage of net assets for the following Portfolio was as follows:

Portfolio	Percentage of Net Assets
Enhanced Opportunities	23.3%

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

Portfolio	Aggregate Cost and Short Proceeds		Aggregate Gross Unrealized Appreciation		Aggregate Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)
Enhanced Opportunities	$	15,567,264	$	1,148,736	$	1,187,479	$	(38,743	)
Fundamental Long/Short		119,251,992		11,752,891		7,426,782		4,326,109

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

Security Abbreviations:

ADR	—	American Depositary Receipt
ETF	—	Exchange-Traded Fund
REIT	—	Real Estate Investment Trust

Currency Abbreviations:

CAD	—	Canadian Dollar
EUR	—	Euro
JPY	—	Japanese Yen
USD	—	Unites States Dollar

Counterparty Abbreviations:

RBS	—	RBS Securities, Inc.
SSB	—	State Street Bank and Trust Co.

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

20  Annual Report

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

	Lazard Enhanced
	Opportunities Portfolio
Industry*	Long			Short
Aerospace & Defense		0.9	%		-0.4	%
Air Freight & Logistics		0.1			-0.1
Auto Components		0.7			—
Automobiles		0.6			-0.1
Biotechnology		9.2			-4.7
Building Products		2.3			-0.9
Capital Markets		2.6			-0.9
Chemicals		0.8			-0.1
Communications Equipment		1.2			-0.6
Construction & Engineering		1.5			-0.6
Construction Materials		6.2			-2.3
Consumer Finance		2.8			-0.9
Diversified Consumer Services		2.0			-1.3
Diversified Financial Services		3.4			-0.7
Electronic Equipment, Instruments & Components		2.1			-1.2
Energy Equipment & Services		1.8			-1.5
Equity Real Estate Investment Trusts (REITs)		13.2			-4.9
Food Products		1.1			-0.6
Health Care Equipment & Supplies		9.1			-4.0
Health Care Providers & Services		2.6			-0.9
Health Care Technology		0.4			-0.1
Household Durables		11.2			-3.6
Insurance		1.9			-1.0
Internet & Direct Marketing Retail		5.7			-2.7
Internet Software & Services		5.8			-1.6
IT Services		3.3			-1.4
Machinery		9.0			-5.9
Media		6.1			-3.2
Metals & Mining		5.0			-3.7
Mortgage Real Estate Investment Trusts (REITs)		7.3			-0.9
Oil, Gas & Consumable Fuels		13.9			-7.9
Pharmaceuticals		3.1			-1.3
Professional Services		1.2			-0.3
Semiconductors & Semiconductor Equipment		6.5			-4.2
Software		6.8			-2.9
Specialty Retail		0.6			-0.3
Textiles, Apparel & Luxury Goods		2.0			-0.2
Trading Companies & Distributors		0.3			-0.4
Subtotal		154.3			-68.3
Short-Term Investment		23.4			—
Total Investments		177.7	%		-68.3	%

* 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

	Lazard			Lazard
	Enhanced			Fundamental
	Opportunities			Long/Short
December 31, 2016	Portfolio			Portfolio
ASSETS
Investments in securities, at fair value	$	25,220,173		$	196,302,527
Cash		8,386			—
Cash collateral due from broker		424,987			—
Receivables for:
Capital stock sold		—			332,116
Dividends and interest		157,950			199,134
Investments sold		48,136			—
Amount due from Investment Manager (Note 3)		37,803			—
Gross unrealized appreciation on forward currency contracts		2,736			—
Total assets		25,900,171			196,833,777
LIABILITIES
Securities sold short, at fair value		9,691,652			72,724,426
Payables for:
Management fees		—			167,846
Accrued distribution fees		24			4,578
Capital stock redeemed		1,700,000			801,391
Dividends on securities sold short		8,501			129,568
Investments purchased		221,018			—
Gross unrealized depreciation on forward currency contracts		567			—
Written options, at fair value		11,713			—
Other accrued expenses and payables		78,199			171,905
Total liabilities		11,711,674			73,999,714
Net assets	$	14,188,497		$	122,834,063
NET ASSETS
Paid in capital	$	13,966,200		$	136,090,488
Undistributed (distributions in excess of) net investment income (loss)		(70,690	)		(78,636	)
Accumulated net realized gain (loss)		69,190			(18,251,294	)
Net unrealized appreciation (depreciation) on:
Investments		839,973			7,900,283
Securities sold short		(630,193	)		(2,826,778	)
Foreign currency translations and forward currency contracts		2,047			—
Written options		11,970			—
Net assets	$	14,188,497		$	122,834,063
Institutional Shares
Net assets	$	14,076,770		$	109,057,770
Shares of capital stock outstanding*		1,537,093			9,973,109
Net asset value, offering and redemption price per share	$	9.16		$	10.94
Open Shares
Net assets	$	111,727		$	13,776,293
Shares of capital stock outstanding*		12,204			1,267,969
Net asset value, offering and redemption price per share	$	9.15		$	10.86
Cost of investments in securities	$	24,380,200		$	188,402,244
Proceeds received from securities sold short	$	9,061,459		$	69,897,648
Proceeds received from written options	$	23,683		$	—

* $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

The Lazard Funds, Inc. Statements of Operations

	Lazard			Lazard
	Enhanced			Fundamental
	Opportunities			Long/Short
For the Year Ended December 31, 2016	Portfolio			Portfolio
Investment Income (Loss)
Income
Dividends	$	14,779		$	5,931,624
Interest		458,358			389,217
Total investment income*		473,137			6,320,841
Expenses
Management fees (Note 3)		280,894			3,301,471
Distribution fees (Open Shares)		279			97,476
Administration fees		54,085			97,279
Custodian fees		265,634			96,329
Registration fees		34,736			61,744
Shareholders’ reports		4,497			59,478
Professional services		39,966			51,335
Shareholders’ services		25,984			30,889
Directors’ fees and expenses		5,613			13,724
Other†		6,171			12,220
Total gross expenses before expenses on securities sold short		717,859			3,821,945
Broker expense on securities sold short		—			1,393,770
Dividend expense on securities sold short		17,124			2,309,350
Total gross expenses		734,983			7,525,065
Management fees waived and expenses reimbursed		(357,381	)		—
Administration fees waived		(18,750	)		—
Total net expenses		358,852			7,525,065
Net investment income (loss)		114,285			(1,204,224	)
Net Realized and Unrealized Gain (Loss) on Investments, Securities Sold Short, Foreign Currency Transactions, Forward Currency Contracts, Options and Swap Agreements
Net realized gain (loss) on:
Investments		708,990			(3,524,694	)
Securities sold short		(58,036	)		(13,929,974	)
Foreign currency transactions and forward currency contracts		17,290			(456	)
Written options		94,499			—
Swap agreements		(544,093	)		—
Total net realized gain (loss) on investments, securities sold short, foreign currency transactions, forward currency contacts, options and swap agreements		218,650			(17,455,124	)
Net change in unrealized appreciation (depreciation) on:
Investments		962,400			4,629,295
Securities sold short		(630,193	)		(9,139,698	)
Foreign currency translations and forward currency contracts		1,995			—
Written options		15,381			—
Swap agreements		120,359			—
Total net change in unrealized appreciation (depreciation) on investments, securities sold short, foreign currency translations, forward currency contracts, options and swap agreements		469,942			(4,510,403	)
Net realized and unrealized gain (loss) on investments, securities sold short, foreign currency transactions, forward currency contracts, options and swap agreements		688,592			(21,965,527	)
Net increase (decrease) in net assets resulting from operations	$	802,877		$	(23,169,751	)
* Net of foreign withholding taxes of	$	12		$	18,013
† Includes interest on line of credit of	$	268		$	—

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

Annual Report  23

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

	Lazard							Lazard
	Enhanced Opportunities Portfolio							Fundamental Long/Short Portfolio
	Year Ended				Year Ended			Year Ended			Year Ended
	December 31,				December 31,			December 31,			December 31,
	2016				2015			2016			2015
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	114,285		$	(11,243	)	$	(1,204,224	)	$	(3,256,949	)
Net realized gain (loss) on investments, securities sold short, foreign currency transactions, forward currency contracts, options and swap agreements			218,650			140,136			(17,455,124	)		1,688,726
Net change in unrealized appreciation (depreciation) on investments, securities sold short, foreign currency translations, forward currency contracts, options and swap agreements			469,942			(245,573	)		(4,510,403	)		8,151,901
Net increase (decrease) in net assets resulting from operations			802,877			(116,680	)		(23,169,751	)		6,583,678
Distributions to shareholders
From net investment income
Institutional Shares			(133,630	)		(67,248	)		—			—
Open Shares			(675	)		(1,254	)		—			—
From net realized gains
Institutional Shares			(87,176	)		(174,626	)		—			(372,248	)
Open Shares			(618	)		(4,044	)		—			(102,327	)
Return of capital
Institutional Shares			—			(191,531	)		—			(67	)
Open Shares			—			(4,325	)		—			(19	)
Net decrease in net assets resulting from distributions			(222,099	)		(443,028	)		—			(474,661	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			20,015,000			41,301			182,640,613			151,822,500
Open Shares			—			12,500			22,492,177			43,859,478
Net proceeds from reinvestment of distributions
Institutional Shares			198,202			433,405			—			189,065
Open Shares			1,293			9,623			—			102,106
Cost of shares redeemed
Institutional Shares			(11,536,647	)		(3,936	)		(229,087,765	)		(22,552,262	)
Open Shares			(2,445	)		—			(51,413,266	)		(9,245,054	)
Net increase (decrease) in net assets from capital stock transactions			8,675,403			492,893			(75,368,241	)		164,175,833
Redemption fees (Note 2(j))
Institutional Shares			—			—			1,872			86
Open Shares			—			—			3,016			1,242
Net increase in net assets from redemption fees			—			—			4,888			1,328
Total increase (decrease) in net assets			9,256,181			(66,815	)		(98,533,104	)		170,286,178
Net assets at beginning of period			4,932,316			4,999,131			221,367,167			51,080,989
Net assets at end of period*		$	14,188,497		$	4,932,316		$	122,834,063		$	221,367,167
*Includes undistributed (distributions in excess of) net investment income (loss) of		$	(70,690	)	$	(78,108	)	$	(78,636	)	$	(94,560	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			542,467			490,000			14,687,573			3,576,865
Shares sold			2,243,832			4,279			16,178,691			13,030,458
Shares issued to shareholders from reinvestment of distributions			21,685			48,588			—			16,643
Shares redeemed			(1,270,891	)		(400	)		(20,893,155	)		(1,936,393	)
Net increase (decrease)			994,626			52,467			(4,714,464	)		11,110,708
Shares outstanding at end of period			1,537,093			542,467			9,973,109			14,687,573
Open Shares
Shares outstanding at beginning of period			12,328			10,000			3,948,574			961,228
Shares sold			—			1,249			1,999,992			3,778,921
Shares issued to shareholders from reinvestment of distributions			141			1,079			—			9,012
Shares redeemed			(265	)		—			(4,680,597	)		(800,587	)
Net increase (decrease)			(124	)		2,328			(2,680,605	)		2,987,346
Shares outstanding at end of period			12,204			12,328			1,267,969			3,948,574

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

24  Annual Report

The Lazard Funds, Inc. Financial Highlights

LAZARD ENHANCED OPPORTUNITIES PORTFOLIO

Selected data for a share of capital	Year Ended						Period Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14*
Institutional Shares
Net asset value, beginning of period	$	8.89		$	10.00		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.05			(0.02	)		—	(b)
Net realized and unrealized gain (loss)		0.35			(0.21	)		—	(b)
Total from investment operations		0.40			(0.23	)		—	(b)
Less distributions from:
Net investment income		(0.08	)		(0.14	)		—
Net realized gains		(0.05	)		(0.35	)		—
Return of capital		—			(0.39	)		—
Total distributions		(0.13	)		(0.88	)		—
Net asset value, end of period	$	9.16		$	8.89		$	10.00
Total Return (c)		4.50	%		-2.32	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	14,077		$	4,823		$	4,899
Ratios to average net assets (d):
Net expenses		1.79	%		1.70	%		1.70	%
Gross expenses		3.60	%		13.45	%		69.35	%(e)
Gross expenses, excluding expenses on securities sold short		3.51	%		13.45	%		69.35	%
Net investment income (loss)		0.57	%		-0.22	%		-1.70	%
Portfolio turnover rate:
Excluding securities sold short		247	%		639	%		37	%
Including securities sold short		340	%		N/A			N/A
Selected data for a share of capital	Year Ended						Period Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14*
Open Shares
Net asset value, beginning of period	$	8.89		$	10.00		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.04			(0.05	)		—	(b)
Net realized and unrealized gain (loss)		0.33			(0.21	)		—	(b)
Total from investment operations		0.37			(0.26	)		—	(b)
Less distributions from:
Net investment income		(0.06	)		(0.11	)		—
Net realized gains		(0.05	)		(0.35	)		—
Return of capital		—			(0.39	)		—
Total distributions		(0.11	)		(0.85	)		—
Net asset value, end of period	$	9.15		$	8.89		$	10.00
Total Return (c)		4.13	%		-2.57	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	112		$	110		$	100
Ratios to average net assets (d):
Net expenses		2.07	%		1.95	%		1.95	%
Gross expenses		15.58	%		26.46	%		69.36	%(e)
Gross expenses, excluding expenses on securities sold short		15.46	%		26.46	%		69.36	%
Net investment income (loss)		0.45	%		-0.46	%		-1.95	%
Portfolio turnover rate:
Excluding securities sold short		247	%		639	%		37	%
Including securities sold short		340	%		N/A			N/A

*	The Portfolio commenced operations on December 31, 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. Return for 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  25

LAZARD FUNDAMENTAL LONG/SHORT PORTFOLIO

							For the Period
Selected data for a share of capital	Year Ended						4/30/14* to
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	11.89		$	11.26		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		(0.05	)		(0.31	)		(0.14	)
Net realized and unrealized gain (loss)		(0.90	)		0.98			1.55
Total from investment operations		(0.95	)		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)		—	(b)		—
Net asset value, end of period	$	10.94		$	11.89		$	11.26
Total Return (c)		-7.99	%		5.97	%		14.15	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	109,058		$	174,601		$	40,273
Ratios to average net assets (d):
Net expenses		3.15	%		3.56	%		3.20	%
Gross expenses		3.15	%		3.59	%		5.51	%
Gross expenses, excluding expenses on securities sold short		1.57	%		1.73	%		4.01	%
Net investment income (loss)		-0.44	%		-2.64	%		-1.94	%
Portfolio turnover rate:
Excluding securities sold short		257	%		183	%		132	%
Including securities sold short		313	%		263	%		277	%
							For the Period
Selected data for a share of capital	Year Ended						4/30/14* to
stock outstanding throughout each period		12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	11.84		$	11.24		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		(0.10	)		(0.33	)		(0.17	)
Net realized and unrealized gain (loss)		(0.88	)		0.97			1.56
Total from investment operations		(0.98	)		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)		—	(b)
Net asset value, end of period	$	10.86		$	11.84		$	11.24
Total Return (c)		-8.28	%		5.71	%		14.05	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	13,776		$	46,766		$	10,808
Ratios to average net assets (d):
Net expenses		3.42	%		3.81	%		3.41	%
Gross expenses		3.42	%		3.89	%		6.28	%
Gross expenses, excluding expenses on securities sold short		1.85	%		2.02	%		4.82	%
Net investment income (loss)		-0.88	%		-2.89	%		-2.34	%
Portfolio turnover rate:
Excluding securities sold short		257	%		183	%		132	%
Including securities sold short		313	%		263	%		277	%

*	The Portfolio commenced operations on April 30, 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. Return for 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.

26  Annual Report

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2016

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-three noload portfolios (each referred to as a “Portfolio”). This report includes only the financial statements of Enhanced Opportunities and Fundamental Long/Short Portfolios. The financial statements of other Portfolios are presented separately.

The Portfolios are operated as “non-diversified” funds, as defined in the 1940 Act.

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).

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—Market values for securities listed on the New York Stock Exchange (“NYSE”), NASDAQ national market or other US or foreign exchanges or markets are generally based on the last reported sales price on the exchange or market on which the security is principally traded 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 securi-

ties, 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 net asset value (“NAV”) per share.

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.

Calculation of a Portfolio’s NAV may not take place contemporaneously with the determination of the prices of portfolio assets used in such calculation. Trading on Europe, Latin and South America and Far East securities exchanges and in over-the-counter markets ordinarily is completed well before the close of business on each business day in New York (i.e., a day on which the NYSE is open). In addition, European or Far Eastern securities trading generally or in a particular country or countries may not take place on all business days in New York and on which the NAV of a Portfolio is calculated.

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

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

Annual Report  27

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 expenses are recorded on the exdividend date except for certain dividends from non-US securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by a Portfolio. Interest income, if any, is accrued daily. A Portfolio amortizes premiums and accretes discounts on fixed-income securities using the effective yield method.

A Portfolio may be subject to taxes imposed by non-US 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 transactions and forward currency contracts represent 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 translations 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, 2016, the Enhanced Opportunities Portfolio traded in forward currency contracts.

28  Annual Report

(d) Options Transactions—For hedging and investment purposes, the 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. Put and call options purchased are accounted for in the same manner as portfolio securities and other assets.

The risk involved in writing an option is that the Portfolios bear the market risk of an unfavorable change in the price of the security or currency underlying the written option. A Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolios may not be able to enter into a closing transaction because of an illiquid market. Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. 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, 2016, transactions in options written were as follows:

Enhanced Opportunities Portfolio

Written Options	Number of Contracts			Premiums
Options outstanding at beginning of year		18		$	1,141
Options written		1,641			211,970
Options exercised		(1,352	)		(182,096	)
Options expired		(119	)		(7,332	)
Options outstanding at end of year		188		$	23,683

During the year ended December 31, 2016, the Fundamental Long/Short Portfolio did not trade in options.

(e) 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 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, 2016, the Enhanced Opportunities Portfolio traded in swap agreements. There were no open swap agreements at December 31, 2016.

(f) Short Sales—The Portfolios 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 may have to pay a fee to borrow the particular security and is liable to the buyer for any dividends or interest payable on securities while those securities are in a

Annual Report  29

short position. These dividends and interest amounts 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, 2016 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, 2016, Enhanced Opportunities and Fundamental Long/Short Portfolios had pledged $15,609,730 and $90,665,977, respectively, of long securities as collateral under such arrangement.

For the year ended December 31, 2016, the following 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
Enhanced Opportunities	$	19,307,785	$	10,304,362
Fundamental Long/Short		431,389,380		501,363,379

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

At December 31, 2016, 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
Fundamental Long/Short		$(17,503,898	)

Under current tax law, post-October capital losses or certain late-year ordinary 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, 2016, there were no such losses to defer.

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 (2014-2015), or expected to be taken in the Portfolios’ 2016 tax returns.

(h) 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. 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	$	18,189		$	27,438	$	(45,627	)
Fundamental Long/Short		(1,265,549	)		1,220,148		45,401

30  Annual Report

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2016		2015		2016		2015
Enhanced Opportunities*	$	222,099	$	247,080		$   —		$92
Fundamental Long/Short*		—		474,575		—		—

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

At December 31, 2016, the components of distributable earnings and unrealized appreciation, 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	$	317,187	$	—		$	(94,890	)
Fundamental Long/Short		—		(17,503,898	)		4,247,473

(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—Until August 15, 2016, the Portfolios imposed 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. As of August 15, 2016, redemption fees no longer apply to transactions in Portfolio shares.

(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 resulting from operations during the reporting period. Actual results could differ from those estimates.

(l) Net Asset Value—NAV per share for each class of each Portfolio is determined each day the NYSE is open for trading as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time). The Fund will not treat an intraday unscheduled disruption in NYSE trading as a closure of the NYSE, and will price its shares as of 4:00 p.m., if the particular disruption directly affects only the NYSE. 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.

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

The Investment Manager has voluntarily agreed to reduce its fees and, if necessary, reimburse the Portfolios through May 1, 2017 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” (as defined in Form N-1A) and extraordinary expenses, and excluding shareholder redemption fees or other transaction fees, but including the management fee stated in the Management Agreement

Annual Report  31

between the Investment Manager and the Fund, on behalf of the Portfolios, exceed the following percentages of the value of the Portfolios’ average daily net assets for the respective shares:

Portfolio	Institutional Shares			Open Shares
Enhanced Opportunities		1.70	%		1.95	%
Fundamental Long/Short		1.70			1.95

During the year ended December 31, 2016, the Investment Manager waived its management fees and reimbursed the following Portfolio for other expenses as follows:

	Institutional Shares				Open Shares
Portfolio	Management Fees Waived		Expenses Reimbursed			Management Fees Waived	Expenses Reimbursed
Enhanced Opportunities		$279,333		$63,088		$1,561	$13,399

The aforementioned waivers and/or reimbursements are not subject to recoupment by the Investment Manager.

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, 2016, State Street waived $18,750 of its fee for the Enhanced Opportunities 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, 2016, 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: (1) an annual retainer of $190,000, (2) an additional annual fee of $20,000 to the lead Independent Director (an “Independent Director” is a Director who is not an “interested person” (as defined in the 1940 Act) of the Fund), and (3) an additional annual fee of $10,000 to the Audit Committee Chair. Effective January 1, 2017, the aggregate compensation for Independent Directors for the Lazard Fund Complex is comprised of: (1) an annual retainer of $210,000, (2) an additional annual fee of $30,000 to the lead Independent Director, and (3) an additional annual fee of $20,000 to the Audit Committee Chair. The Independent Directors may be paid additional compensation for participation on ad hoc committees or other work performed on behalf of the Board. The Independent 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. Independent Directors’ fees are allocated among the portfolios in the Lazard Fund Com-

32  Annual Report

plex at a rate of $5,000 per portfolio with the remainder allocated based upon each portfolio’s proportionate share of combined net assets. The Statements of Operations show the Independent 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, 2016 were as follows:

Portfolio		Purchases		Sales
Enhanced Opportunities	$	48,640,903	$	29,860,426
Fundamental Long/Short		505,519,671		570,398,116

For the year ended December 31, 2016, the Portfolios did not engage in any cross-trades in accordance with Rule 17a-7 under the 1940 Act, and 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, 2016, the Investment Manager owned 35.97% of the outstanding shares of Enhanced Opportunities 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 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 0.20% per annum fee 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, 2016, the following Portfolio 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
Enhanced Opportunities		$815,500	$	917,000		1.48	%		8

* 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. A Portfolio’s outstanding line of credit, if any, would be categorized as Level 2 (see Note 9).

7. Investment Risks

(a) Non-US Securities Risk—A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity.

(b) Emerging Market Risk—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. Investments in these countries may be subject to political, economic, legal, market and currency risks. The risks may include less protection of property rights and uncertain political and economic policies, the imposition of capital controls and/or foreign investment limitations by a country, nationalization of businesses and the imposition of sanctions by other countries, such as the US. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies.

(c) Foreign Currency Risk—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 Investment Manager does not intend to actively hedge the Portfolios’ foreign currency exposure.

Annual Report  33

(d) 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. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening.

Prices of bonds and other debt securities tend to move inversely with changes in interest rates. Typically, a rise in rates will adversely affect debt securities and, accordingly, will cause the value of a Portfolio’s investments in these securities to decline. Interest rate risk is usually greater for fixed-income securities with longer maturities or durations. A rise in interest rates (or the expectation of a rise in interest rates) may result in periods of volatility, decreased liquidity and increased redemptions, and, as a result, the Portfolio may have to liquidate portfolio securities at disadvantageous prices. Risks associated with rising interest rates are heightened given that interest rates in the US and other countries are at or near historic lows.

A Portfolio’s 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 a Portfolio’s 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 prices of high yield securities can fall in response to negative news about the issuer or its industry, or the economy in general to a greater extent than those of higher-rated securities. 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.

Some fixed-income securities may give the issuer the option to call, or redeem, the securities before their maturity. If securities held by a Portfolio are called during a time of declining interest rates (which is typically the case when issuers exercise options to call outstanding securities), the Portfolio may have to reinvest the proceeds in an investment offering a lower yield (and the Portfolio may not fully benefit from any increase in the value of its portfolio holdings as a result of declining interest rates).

(e) Short Position Risk—Short sales or positions may involve substantial risks. If a short position appreciates in value during a period of a Portfolio’s investment, there will be a loss to the Portfolio 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, a Portfolio’s potential loss on a short position is unlimited because, theoretically, there is no limit to the potential price increase of a security.

When seeking to effect short sales of securities, a Portfolio may not always be able to borrow a security the Portfolio seeks to sell short at a particular time or at an acceptable price. In addition, a Portfolio may not always be able to close out a short sale position at a particular time or at an acceptable price. If the lender of a borrowed security requires a Portfolio to return the security to it on short notice, and the Portfolio is unable to borrow the security from another lender, the Portfolio may have to buy the borrowed security at an unfavorable price, resulting in a loss. In addition, there is a risk that the collateral pledged to the Portfolio’s custodian to secure securities borrowings in connection with short sales of securities may not be returned to the Portfolio or may not be returned in a timely manner.

It is possible that the market value of the securities a Portfolio holds in long positions will decline at the same time that the market value of the securities to which the Portfolio has short exposure increases, thereby increasing the Portfolio’s potential volatility.

34  Annual Report

(f) Derivatives Risk—Forward currency contracts, options, futures contracts and credit default swap agreements and other derivatives transactions, including those entered into for hedging purposes (i.e., seeking to protect Portfolio investments), may increase volatility, reduce returns, limit gains or magnify losses, perhaps substantially, particularly since most derivatives have a leverage component that provides investment exposure in excess of the amount invested. Forward currency contracts, swap agreements 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 in which a Portfolio may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related currency, interest rate, security or other reference asset. As such, a small investment could have a potentially large impact on the Portfolio’s performance. In fact, many derivatives may be subject to greater risks than those associated with investing directly in the underlying or other reference asset. Derivatives transactions incur costs, either explicitly or implicitly, which reduce returns, and costs of engaging in such transactions may outweigh any gains or any losses averted from hedging activities. Successful use of derivatives, whether for hedging or for other investment purposes, is subject to the Investment Manager’s ability to predict correctly movements in the direction of the relevant reference asset or market and, for hedging activities, correlation of the derivative instruments used with the investments seeking to be hedged. Use of derivatives transactions, even if entered into for hedging purposes, may cause a 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 assets and liabilities

• 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 transfers 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  35

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2016:

	Unadjusted
	Quoted Prices in
	Active Markets for			Significant Other			Significant
	Identical Assets			Observable			Unobservable
	and Liabilities			Inputs			Inputs		Balance as of
Description	(Level 1)			(Level 2)			(Level 3)		December 31, 2016
Enhanced Opportunities Portfolio
Assets:
Common Stocks*
France	$	—		$	96,245		$	—	$	96,245
United States		221,324			—			—		221,324
Other		26,404			—			—		26,404
Corporate Bonds*		—			21,319,530			—		21,319,530
Preferred Stocks*		230,637			—			—		230,637
Purchased Options*		12,128			—			—		12,128
Short-Term Investment		3,313,905			—			—		3,313,905
Other Financial Instruments†
Forward Currency Contracts		—			2,736			—		2,736
Total	$	3,804,398		$	21,418,511		$	—	$	25,222,909
Liabilities:
Securities Sold Short
Common Stocks*
Japan	$	—		$	(17,136	)	$	—	$	(17,136	)
United States		(8,973,302	)		—			—		(8,973,302	)
Other		(594,638	)		—			—		(594,638	)
Corporate Bonds*		—			(60,469	)		—		(60,469	)
Exchange-Traded Funds*		(46,107	)		—			—		(46,107	)
Other Financial Instruments†
Forward Currency Contracts		—			(567	)		—		(567	)
Written Options		(11,713	)		—			—		(11,713	)
Total	$	(9,625,760	)	$	(78,172	)	$	—	$	(9,703,932	)
Fundamental Long/Short Portfolio
Assets:
Common Stocks*	$	119,697,828		$	—		$	—	$	119,697,828
Short-Term Investment		76,604,699			—			—		76,604,699
Total	$	196,302,527		$	—		$	—	$	196,302,527
Liabilities:
Securities Sold Short*	$	(72,724,426	)	$	—		$	—	$	(72,724,426	)

*	Please refer to Portfolios of Investments (pages 11 through 19) and Notes to Portfolios of Investments (page 21) for portfolio holdings by country and industry.
†	Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation (depreciation).

In connection with the implementation of fair value pricing procedures with respect to non-US securities (see Note 2(a)), certain equity securities in the Enhanced Opportunities Portfolio can transfer from Level 1 to Level 2 as a result of fair value pricing procedures and would revert to Level 1 when the fair value pricing procedures are no longer used. 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, 2016.

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.

36  Annual Report

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

A Portfolio may write or purchase a call or put option to seek to realize, through the receipt of premiums or 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

During the year ended December 31, 2016, the approximate average monthly notional exposure for derivative instruments was as follows:

Forward currency contracts	$	600,000	*
Total return swap agreements	$	13,500,000	†

*	Represents average monthly notional exposure for the seven months the derivative instrument was open during the period.
†	Represents average monthly notional exposure for the nine months the derivative instrument was open during the period.

The Portfolio traded in purchased options having an average monthly value of less than $50,000.

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2016:

	Fair Value
Asset Derivatives
Equity Risk:
Investments in securities, at fair value	$	12,128
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	2,736
Liability Derivatives
Equity Risk:
Written options, at fair value	$	11,713
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	567

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2016 was:

	Amount
Realized Gain (Loss) on Derivatives
Equity Risk:
Net realized gain (loss) on investments	$	(5,545	)
Net realized gain (loss) on written options	$	94,499
Net realized gain (loss) on swap agreements	$	(544,093	)
Foreign Exchange Risk:
Net realized gain (loss) on foreign currency transactions and forward currency contracts	$	27,973
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Equity Risk:
Net change in unrealized appreciation (depreciation) on investments	$	(13,619	)
Net change in unrealized appreciation (depreciation) on written options	$	15,381
Net change in unrealized appreciation (depreciation) on swap agreements	$	120,359
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on foreign currency translations and forward currency contracts	$	2,169

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

During the year ended December 31, 2016, Fundamental Long/Short Portfolio did not trade in derivative instruments.

As of December 31, 2016, Enhanced Opportunities 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.

Annual Report  37

The required information for the affected Portfolio is presented in the below table, as of December 31, 2016:

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
Forward Currency Contracts		$2,736	$	—		$2,736

			Amounts Not Offset in the  Statement of Assets and Liabilities
Counterparty	Net Amounts of Assets Presented in the Statement of Assets and Liabilities		Financial Instruments		Collateral Received		Net Amounts of Derivative Assets
State Street Bank and Trust Co.		$2,736		$(567)	$	—		$2,169

Description	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Assets and Liabilities		Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities
Forward Currency Contracts		$567	$	—		$567

			Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of  Liabilities Presented in the Statement of Assets and Liabilities		Financial Instruments		Collateral Pledged		Net Amounts of Derivative Liabilities
State Street Bank and Trust Co.		$567		$(567)	$	—	$	—

11. Recent Accounting Pronouncements

In October 2016, the U.S. Securities and Exchange Commission (the “SEC”) adopted new rules and amended existing rules (together, “final rules”) intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017.

Management is currently evaluating the impact that the adoption of the amendments to Regulation S-X will have on the Fund’s financial statements and related disclosures.

12. 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.

38  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 Enhanced Opportunities Portfolio and Lazard Fundamental Long/Short Portfolio:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Lazard Enhanced Opportunities Portfolio and Lazard Fundamental Long/Short Portfolio (collectively the “Portfolios”), two of the portfolios constituting The Lazard Funds, Inc. (the “Fund”), as of December 31, 2016, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the three years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The 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, 2016, 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 and Lazard Fundamental Long/Short Portfolio of The Lazard Funds, Inc. as of December 31, 2016, the results of their operations for the year then ended, and the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the three 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 27, 2017

Annual Report  39

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 (63)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012) University of California, Berkeley School of Law, Lecturer (Spring 2017) Cornell Law School, Visiting Professor of Practice (2015 – 2016); previously, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)
Kenneth S. Davidson (71)	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 (54)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present) TIAA-CREF Funds (68 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 (45)	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. (72)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present) Resource Americas, Inc., a real estate asset management company, Director (2016 – present) O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (69)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

40  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 (56)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (56)	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, 2017, 40 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  41

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 (44)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Christopher Snively (32)	Chief Financial Officer (March 2016)	Senior Vice President of the Investment Manager (since November 2015) Assurance Manager at PricewaterhouseCoopers LLP (2008 – November 2015)
Stephen St. Clair (58)	Treasurer (May 2003)	Vice President of the Investment Manager
Mark R. Anderson (46)	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 (41)	Assistant Secretary (February 2009)	Director (since February 2016, previously Senior Vice President), and Director of Legal Affairs (since July 2015) of the Investment Manager
Shari L. Soloway (35)	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)
Cesar A. Trelles (42)	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.

42  Annual Report

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

Tax Information

Year Ended December 31, 2016

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2016:

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

Portfolio	Percentage
Enhanced Opportunities		2.19	%
Fundamental Long/Short		—

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		0.04	%
Fundamental Long/Short		—

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 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  43

NOTES

44  Annual Report

NOTES

Annual Report  45

NOTES

46  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, 2016

Asset Allocation Funds

Lazard Capital Allocator Opportunistic Strategies Portfolio

Lazard Global Dynamic Multi Asset Portfolio

PRIVACY NOTICE

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 and credit history • Assets and income • Account transactions 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 and applicable state laws. These measures include computer safeguards and secured files and buildings.
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 may 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.

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
7	Performance Overviews
9	Information About Your Portfolio’s Expenses
10	Portfolio Holdings Presented by Sector
11	Portfolios of Investments
11	Lazard Capital Allocator Opportunistic Strategies Portfolio
13	Lazard Global Dynamic Multi Asset Portfolio
24	Notes to Portfolios of Investments
26	Statements of Assets and Liabilities
27	Statements of Operations
28	Statements of Changes in Net Assets
29	Financial Highlights
31	Notes to Financial Statements
44	Report of Independent Registered Public Accounting Firm
45	Board of Directors and Officers Information
48	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 each Portfolio’s summary prospectus contain the investment objectives, risks, charges, expenses and other information about each Portfolio of the Fund, which are not detailed in this report.

Distributed by Lazard Asset Management Securities LLC.

Annual Report   1

The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

In 2016, global equity markets generally performed well despite significant bouts of volatility caused by unexpected economic and political events. In Europe, returns were muted as the United Kingdom’s June vote to leave the European Union weighed on the pound sterling and UK assets. In December, Prime Minister Matteo Renzi’s resounding defeat in the Italian referendum on constitutional reform and his subsequent resignation added to uncertainty in the region. A surprise outcome to the US presidential election caused US stocks to rally sharply at year-end in anticipation of lower corporate taxes and regulatory reform. Meanwhile, emerging markets equities snapped their negative streak and ended the year firmly higher, primarily as the price of oil and other commodities stabilized.

In the first half of 2016, yields across most global bond markets fell due to uneven news flow and seesawing risk sentiment. However, yields increased toward the end of the year in response to inflationary pressures, higher oil prices, and strong economic data. The US Federal Reserve delivered its long-awaited rate hike in December, and is widely expected to deliver additional hikes in 2017. In contrast, European monetary policy is expected to remain loose, based on announced asset purchase plans from the European Central Bank.

The US dollar continued to strengthen against other major currencies in 2016. The Japanese yen appreciated even after the Bank of Japan adopted a negative interest rate policy early in the year, but weakened considerably in November and December due to Japan’s widening interest rate differential with the United States. Over the year, the biggest currency laggards included the Mexican peso, which was hurt by Donald Trump’s election victory, and the Turkish lira, which was weighed down by a surprise coup attempt in Turkey.

At Lazard Asset Management, we strive to identify ways to help our clients achieve their investment goals. As such, we launched two mutual funds in 2016 with characteristics that we believe can help investors navigate a changing financial landscape.

As always, we appreciate your continued confidence in our investment management capabilities and we 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

Capital Allocator

Global equity markets performed strongly for the year, returning 7.5%. United States equities rose significantly, led by small caps at 26.6%. US mid and large caps rose 20.7% and 12.0%, respectively. Emerging markets also posted strong performance, returning 11.2%. Japanese equities were positive, returning 2.4%, while European equities lagged during the period, returning -0.4%. Meanwhile, US and global fixed income markets returned 2.6% and 2.1%, respectively.

Investors greeted the New Year with a bout of fear-induced selling that sent equity markets plunging around the world. Unnerved by recessionary fears in February, investors sold off riskier assets through January and into the first half of February, with large cap US stocks hitting a 21-month low. It soon became apparent, however, that the fear was overdone. Indicators revealed no economic meltdown, and investors pushed up equity markets in the latter half of February and March. Emerging markets equities—a barometer for risk appetite—bounced back from significant losses in 2015 to lead performance. The rebound dispelled concern that the global economy was experiencing a severe slowdown. Although global markets fell after UK voters stunned investors by deciding to leave the European Union (EU), markets largely recovered their losses and volatility declined. Economic growth indicators were slightly better than expected, and investors were heartened by the belief that central banks would be forced by Brexit to keep monetary policies loose. After Donald Trump’s election, the markets pushed higher as anticipation arose that the US Federal Government might break its deadlock and cut taxes, ease regulations, and increase infrastructure spending. At the same time, investors appeared to downplay Trump’s previous statements on trade, immigration, and foreign policy.

The uncertainty around a Trump presidency and his proposed policies had a direct impact on emerging markets equities, which tumbled in November after Trump’s election. The decline erased their year-to-date outperformance compared to US equities, though emerging markets equities finished 2016 up strongly. Going forward, emerging markets investors face a

number of questions. One concern is the potential impact of accelerating US economic growth, which should be a boon for emerging markets exporters. Another is a strong US dollar, which can make emerging markets companies more competitive while at the same time making it more difficult to repay US dollar-denominated debt. Further stability or inflation in commodities prices would benefit emerging markets. However, given the importance of exports to emerging markets economic growth, a threat such as trade barriers can have an outsized impact on emerging markets.

The election of Donald Trump to the presidency, while the Republican party retained control of both houses of Congress, has changed market sentiment in the United States. Expectations have risen that the federal government can break the legislative gridlock of the past several years. A number of important initiatives now seem not only possible but plausible, such as infrastructure spending, tax reform, and a lighter regulatory regime. Fiscal stimulus may supercede monetary policy. We believe the era of “Trumpflation” has arrived. US GDP grew at an annual rate of 3.5% in the third quarter, up from anemic levels in the first half of 2016 and the strongest pace in two years. In light of this data, the US Federal Reserve’s decision to raise the federal funds rate in December—only the second rate hike in the past decade—was taken as a sign of confidence.

In an effort to stimulate the Japanese economy, the Bank of Japan (BoJ) implemented a negative interest rate policy in February. In September, BoJ Governor Haruhiko Kuroda shifted the bank’s stimulus efforts and indicated it would not force short-term interest rates deeper into negative territory but would hold benchmark 10-year yields at about zero. The pathway ahead for Japan remains uncertain.

Many investors are growing optimistic about Europe as it enters 2017, even though equity performance mostly lagged in 2016. The global economy is accelerating, US prospects have risen, and European manufacturing activity and economic sentiment have reached levels last seen in 2011. The European labor market appears healthier, and a weaker euro versus

Annual Report   3

the US dollar has made European exporters more competitive. At the European Central Bank, monetary policy remains accommodative. However, Europe faces a number of political challenges as the Brexit negotiations play out and populist, euro-skeptic arguments dominate upcoming elections in a number of countries, including France (in April/May) and Germany (October). If populist-driven figures take power in a major European government, the euro and the structure of the EU could be threatened.

US fixed income markets have been bid up over the past several years as central banks pushed down rates and investors, desperate for yield, turned to lower-quality securities. We see potential for significant downside if US economic growth climbs to its historical range of 2%–3% and inflation hits 2%. In our view, the benchmark 10-year Treasury yield could rise well above the 2.6%–3.0% threshold established by consensus. Duration-sensitive investment across both the equity and fixed income markets would be especially vulnerable.

The “relative” nature of returns is a central concept in our asset allocation process. In this changing and uncertain environment, and as always, we believe that our versatile framework may reward risk-takers who stay the course.

Multi Asset

Global equity markets generated fairly strong gains in 2016, rising 7.5% in US dollar terms, as measured by the MSCI World^® Index, which was impressive considering the many macro and political events that buffeted markets and the inauspicious start to the year with stocks falling sharply in the first six weeks. On the other hand, global bonds as measured by the Bloomberg Barclays Capital Global Aggregate Bond^® Index were up 2.09% for the year, also in US dollar terms. Early in the year, investors feared the US Federal Reserve’s rate hike in December 2015 had been a policy error likely to push a sluggish US economy into recession and trigger an uncontrolled devaluation of China’s currency. Oil’s plunge to the mid $20s weighed further and triggered a rapid deterioration in credit markets and crushing investor sentiment. Later in the year, overcoming a string of political surprises,

investor sentiment began to reverse and a durable rally ensued. Equities rebounded with oil, which triggered a rotation into commodity-oriented value stocks. Credit markets more than fully reversed their earlier weakness. The mid-year shock of Brexit caused a drop in rates and outperformance of defensive growth stocks but within a few weeks rates bottomed and began to rise. This triggered a rotation into rate-sensitive value stocks (e.g., financials) and declines in the defensive growth stocks that had benefited from the earlier deflationary concerns. The election of Donald Trump, along with Republican control of both houses of Congress, was perceived as a potential end to gridlock in Washington and increased the likelihood of growth-stimulative tax cuts and infrastructure spending. This provided further evidence that an extended period of widespread deflation was unlikely and accelerated the rise in rates and rotation from defensive growth equities to more cyclical value stocks and, particularly, financials.

However, a broad array of economic indicators had begun to show that deflationary pressures were abating in the global economy even before the US elections. Secular stagnation and fears of deflation had become a strong consensus among investors earlier in the year. Fears of an additional step down in growth due to Brexit brought those deflation concerns to a fever pitch and drove bond yields to their lows. Yet inflationary pressures had been building as the shock of the mid 2014 collapse in oil and surge in the US dollar faded and the industrial sector globally regained its footing. Global inflation reports were no longer consistently below forecasts and market-based estimates of future inflation were rebounding from low levels in both the US and Europe. Forward looking indicators of manufacturing activity had seen a broad-based rebound since late 2015. US wages have risen steadily over the past year and Chinese producer prices, which had been deeply negative since 2012, moved sharply positive during the fourth quarter, signaling that China is no longer exporting deflation.

Lazard Capital Allocator Opportunistic Strategies Portfolio

For the year ended December 31, 2016, the Lazard Capital Allocator Opportunistic Strategies Portfolio’s

4   Annual Report

Institutional Shares posted a total return of 5.36%, while Open Shares posted a total return of 5.08%, as compared with the 7.51% return for the MSCI World Index and 5.61% return for the Global Asset Allocation Blended Index.¹

Thematic investments, which represented 26% of the Portfolio as of December 31, 2016, were positive during the period, returning 5.6% while underperforming both the MSCI World Index and the Global Asset Allocation Blended Index. Industrials and US large cap equities performed strongly, while Japanese and European equities performed poorly. During the period, derivatives exposure included three custom baskets of securities. These custom baskets of specific securities exposure do not exist in public markets—because they are sold over the counter and do not trade on an exchange—although the underlying securities in the baskets do. Accordingly, the specific exposure desired was achieved by designing and building these baskets via swap agreements with one or more counterparties. One basket was focused on US large cap equities that historically outperformed the market during periods of low growth and low inflation environments. This investment had a negative impact on the Portfolio as it underperformed the market due to a bias to smaller cap equity. The second custom basket, which provided exposure to European export companies, also underperformed the MSCI World Index in the period as European shares were generally weak. These two baskets were sold over the period. Another basket was focused on short-cycle global industrials equities that were consistent with companies analyzed by the Lazard equity research team. This basket, which we still own, provided positive contributions during the period.

Diversifying investments, which represented 39% of the Portfolio, returned -0.2% for the period, and lagged both the MSCI World Index and the Global Asset Allocation Blended Index. Credit investments, led by fallen angels (i.e., bonds downgraded from investment grade to non-investment grade) and high yield investments, posted strong results, while gold and Treasuries detracted from returns. Exposure to options was accretive to returns over the period.

These options included buying and writing put options on large cap US equities, as well as buying puts on long duration Treasury bonds and US utilities.

Contrarian investments, which represented 25% of the Portfolio, helped performance, returning 43.2% and strongly outperforming both the MSCI World Index and the Global Asset Allocation Blended Index. Exposure to Japanese financials and global automobiles hurt performance, while global financials, US value equities, and short volatility performed strongly. During the period, derivatives exposure included two custom baskets of securities. The first custom basket, which provided exposure to Japanese financials, underperformed the MSCI World Index in the period, as policy decisions in Japan did not have follow-through in the market and yields went negative, providing headwinds for the financials sector. The second custom basket was a US equity momentum factor basket. This investment was designed to outperform broad US equity exposure when the momentum factor is driving market performance. This investment, although positive, underperformed the MSCI World Index over the time period as momentum turned out of favor. Buying a call option on the US energy sector was negative over the period.

Discounted investments, which represented 10% of the Portfolio, performed strongly during the period, delivering 13.2% and outperforming both the MSCI World Index and the Global Asset Allocation Blended Index, due to short term credit and high yield investments.

New Fund Launched: Lazard Global Dynamic Multi Asset Portfolio

For the period since inception on May 27, 2016 through December 31, 2016, the Lazard Global Dynamic Multi Asset Portfolio’s Institutional Shares posted a total return of 0.53%, while Open Shares posted a total return of 0.35%, as compared with the 5.48% return for the MSCI World Index and 0.97% return of its blended benchmark, which is a 50/50 blend of the MSCI World Index and the Bloomberg Barclays Capital Global Aggregate Bond Index (the “GDMA Index”).

Annual Report   5

Changes made to the market forecast during 2016 reflected a consideration of many factors, including monetary policies of central banks around the globe; global macro data readings in China (particularly the Purchasing Managers Index, which measures economic activity), the United States, the euro zone, and Japan; fiscal policy in developed and emerging markets; geopolitical events and risks including elections and referenda; and equity and fixed income valuations, along with other data.

For the period since inception, stock selection in the real estate sector and an underweight position in the energy sector added value within the equity allocation, as did stock selection in Israel and Ireland and an underweight exposure to Germany. Within fixed income, performance was helped by overweight exposures to Australia and New Zealand, under-

weight government bonds and overweight positioning in diversified global credit sectors, especially corporates, tactical exposure to Australia and New Zealand, and underweight exposure to the Japanese yen and Korean won.

In contrast, stock selection in the consumer discretionary and industrials sectors, underweight exposure to information technology and overweight exposure to utilities detracted from performance within equities, as did stock selection in the United States and the United Kingdom; within fixed income, performance was hurt by underweight exposure to bonds across the euro zone, Japan, United Kingdom, and the United States, overweight exposure to Mexico and overweight exposure to the Swedish krona. The positions in the currencies are implemented using non-deliverable forward contracts.

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. Return for 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, 2016; 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% Bloomberg Barclays Capital US Aggregate Bond^® Index.

6   Annual Report

The Lazard Funds, Inc. Performance Overviews

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, 2016

	Institutional Shares						Open Shares
	One Year		Five Years		Since   Inception†		One Year		Five Years		Since   Inception†
Capital Allocator Opportunistic Strategies Portfolio**	5.36	%	5.32	%	3.30	%	5.08	%	4.91	%	2.98	%
MSCI World Index	7.51	%	10.41	%	4.42	%	7.51	%	10.41	%	4.48	%
Global Asset Allocation Blended Index	5.61	%	7.21	%	4.71	%	5.61	%	7.21	%	4.74	%

*	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% Bloomberg Barclays Capital US Aggregate Bond® Index. The Bloomberg 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  7

Lazard Global Dynamic Multi Asset Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Dynamic Multi Asset Portfolio, MSCI World Index and GDMA Index*

Total Returns*

Period Ended December 31, 2016

	Since   Inception†
Institutional Shares**	0.53	%
Open Shares**	0.35	%
MSCI World Index	5.48	%
GDMA Index	0.97	%

*	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. Return for 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 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 GDMA Index is created by the Portfolio’s Investment Manager and is a 50/50 blend of the MSCI World Index and the Bloomberg Barclays Capital Global Aggregate Bond® Index. 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 Bloomberg 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, 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 Portfolio was May 27, 2016.

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, 2016 through December 31, 2016 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.

Portfolio	Beginning Account Value 7/1/16		Ending Account Value 12/31/16		Expenses Paid During Period* 7/1/16 - 12/31/16		Annualized Expense Ratio During Period 7/1/16 - 12/31/16
Capital Allocator Opportunistic Strategies
Institutional Shares
Actual	$	1,000.00	$	1,045.70	$	5.25		1.02	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.01	$	5.18		1.02	%
Open Shares
Actual	$	1,000.00	$	1,043.00	$	6.78		1.32	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.50	$	6.70		1.32	%
Global Dynamic Multi Asset
Institutional Shares
Actual	$	1,000.00	$	1,005.30	$	4.54		0.90	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.61	$	4.57		0.90	%
Open Shares
Actual	$	1,000.00	$	1,003.50	$	6.04		1.20	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.10	$	6.09		1.20	%

* Expenses are equal to the annualized expense ratio, net of expense waivers and reimbursements, of each Share class multiplied by the average account value over the period, multiplied by 184/366 (to reflect one-half year period).

Annual Report  9

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2016

Asset Class/Sector*	Lazard Capital Allocator Opportunistic Strategies Portfolio
Equity**
Consumer Discretionary		3.0	%
Consumer Staples		1.7
Energy		5.0
Financials		19.8
Health Care		3.3
Industrials		5.7
Information Technology		4.9
Materials		6.3
Real Estate		0.3
Telecommunication Services		0.5
Utilities		0.4
Fixed Income and Other†		17.4
Short-Term Investment		31.7
Total Investments		100.0	%

Sector*	Lazard Global Dynamic Multi Asset Portfolio
Consumer Discretionary		10.4	%
Consumer Staples		8.2
Energy		4.0
Financials		16.2
Health Care		9.9
Industrials		10.0
Information Technology		11.9
Materials		3.1
Real Estate		2.1
Telecommunication Services		3.9
Utilities		4.9
Municipal		0.5
Sovereign Debt		11.4
US Treasury Securities		1.4
Short-Term Investment		2.1
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.

10  Annual Report

The Lazard Funds, Inc. Portfolios of Investments December 31, 2016

Description	Shares		Fair Value
Lazard Capital Allocator Opportunistic Strategies Portfolio
Exchange-Traded Notes | 1.9%
VelocityShares Daily Inverse VIX Short-Term ETN (a) (Cost $2,493,704)		58,100	$	2,716,175
Exchange-Traded Funds | 56.4%
Equity Funds | 44.2%
Financial Select Sector SPDR Fund		619,755		14,409,304
iShares Global Financials ETF		175,200		10,123,056
iShares Global Materials ETF		152,500		8,361,575
iShares Latin America 40 ETF		132,800		3,662,624
iShares Nasdaq Biotechnology ETF		12,898		3,422,871
iShares North American Tech ETF		23,500		2,909,535
PowerShares Dynamic Oil & Gas Services Portfolio		439,900		5,617,523
SPDR S&P 500 ETF Trust		64,395		14,394,214
				62,900,702
Fixed-Income Funds | 12.2%
iShares iBoxx $ Investment Grade Corporate Bond ETF		60,695		7,112,240
PowerShares Fundamental High Yield Corporate Bond Portfolio		391,010		7,347,078
VanEck Vectors Fallen Angel High Yield Bond ETF		101,834		2,930,783
				17,390,101
Total Exchange-Traded Funds (Cost $76,982,245)				80,290,803

Description	Shares		Fair Value
Closed-End Management Investment Companies | 9.6%
Eaton Vance Limited Duration Income Fund		314,400	$	4,313,568
Prudential Global Short Duration High Yield Fund, Inc.		193,800		2,885,682
Templeton Emerging Markets Fund		536,500		6,486,285
Total Closed-End Management Investment Companies (Cost $13,469,878)				13,685,535
Short-Term Investment | 31.6%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $44,965,568)		44,965,568		44,965,568
Total Investments | 99.5% (Cost $137,911,395) (b)			$	141,658,081
Cash and Other Assets in Excess of Liabilities | 0.5%				659,113
Net Assets | 100.0%			$	142,317,194

Total Return Swap Agreements open at December 31, 2016:

			Notional	Expiration		Unrealized
Pay	Currency	Counterparty	Amount	Date	Receive	Depreciation
1 Month USD LIBOR plus 0.45%	USD	GSC	7,839,266	03/03/17	Appreciation, and dividends paid, on securities in a custom momentum basket		$70,696*

*Includes accrued dividends and financing charges of $4,891.

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

Annual Report  11

Lazard Capital Allocator Opportunistic Strategies Portfolio (concluded)

The following table represents the weighting of the individual securities and related fair values underlying the custom momentum basket total return swap agreements with GSC, as of December 31, 2016:

Securities	Shares		Fair Value
Parker-Hannifin Corp.		5,646	$	790,398
Union Pacific Corp.		7,369		764,025
Rockwell Automation, Inc.		5,528		742,912
Eaton Corp PLC		10,170		682,279
Raytheon Co.		4,733		672,018
Honeywell International, Inc.		5,576		645,999
MSC Industrial Direct Co., Inc.		4,612		426,086
3M Co.		2,055		367,016
American Airlines Group, Inc.		7,841		366,115
Illinois Tool Works, Inc.		2,709		331,788
United Technologies Corp.		2,761		302,609
Advance Auto Parts, Inc.		1,711		289,347
Johnson Controls International PLC		6,956		286,535
FANUC Corp.		1,359		231,632
Schneider Electric SE		3,302		230,022
ABB, Ltd.		10,866		229,300
Delphi Automotive PLC		2,858		192,461
GEA Group AG		4,399		177,232
Adient PLC		695		40,749
AdvanSix, Inc.		223		4,938
Total Fair Value			$	7,773,461

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

12  Annual Report

Description	Shares		Fair Value
Lazard Global Dynamic Multi Asset Portfolio
Common Stocks | 75.5%
Australia | 2.5%
AGL Energy, Ltd.		1,319	$	20,986
Aristocrat Leisure, Ltd.		4,803		53,591
Cochlear, Ltd.		1,740		153,605
Credit Corp. Group, Ltd.		3,257		42,062
CSL, Ltd.		3,301		238,465
Goodman Group REIT		3,528		18,201
Harvey Norman Holdings, Ltd.		20,112		74,531
Investa Office Fund REIT		6,337		21,614
JB Hi-Fi, Ltd.		3,168		63,958
Magellan Financial Group, Ltd.		2,094		35,784
Newcrest Mining, Ltd.		14,345		202,259
Pact Group Holdings, Ltd.		12,496		60,720
Resolute Mining, Ltd.		69,146		62,089
Sandfire Resources NL		4,448		18,058
Saracen Mineral Holdings, Ltd. (a)		22,536		15,546
Telstra Corp., Ltd.		9,883		36,322
The GPT Group REIT		7,911		28,687
Whitehaven Coal, Ltd. (a)		27,111		50,885
				1,197,363
Belgium | 0.6%
Anheuser-Busch InBev SA/NV Sponsored ADR		2,475		260,964
Telenet Group Holding NV (a)		390		21,638
				282,602
Canada | 3.2%
Alimentation Couche-Tard, Inc., Class B		573		25,982
Atco, Ltd., Class I		1,088		36,190
BCE, Inc.		1,438		62,151
Canadian Imperial Bank of Commerce		2,840		231,743
Canadian National Railway Co.		2,719		183,230
CI Financial Corp.		2,353		50,595
Colliers International Group, Inc.		490		18,061
Constellation Software, Inc.		44		19,994
Corus Entertainment, Inc., B Shares		1,589		14,912
Dollarama, Inc.		361		26,451
Enbridge, Inc.		4,047		170,302
First Quantum Minerals, Ltd.		2,318		23,048
Genworth MI Canada, Inc.		2,679		67,162
Intact Financial Corp.		224		16,033
Inter Pipeline, Ltd.		919		20,288
Linamar Corp.		1,040		44,686

Description	Shares		Fair Value
Magna International, Inc.		1,892	$	82,154
Metro, Inc.		1,913		57,220
Pembina Pipeline Corp.		1,081		33,783
Quebecor, Inc., Class B		830		23,070
Saputo, Inc.		1,133		40,091
The Toronto-Dominion Bank		6,121		301,890
Transcontinental, Inc., Class A		1,142		18,874
				1,567,910
Denmark | 0.7%
Carlsberg A/S, Class B Sponsored ADR		7,340		126,688
Danske Bank A/S		635		19,259
Jyske Bank A/S		986		46,920
Novo Nordisk A/S Sponsored ADR		2,515		90,188
Novo Nordisk A/S, Class B		512		18,391
Vestas Wind Systems A/S		701		45,559
				347,005
Finland | 0.6%
Neste Oyj		782		30,020
Orion Oyj, Class B		747		33,247
Sampo Oyj, A Shares ADR		10,060		225,243
				288,510
France | 1.3%
Airbus Group SE		981		64,745
AXA SA		5,224		131,822
BNP Paribas SA		2,747		174,988
CNP Assurances		1,539		28,506
Faurecia		1,775		68,791
Orange SA		2,552		38,728
Peugeot SA (a)		1,786		29,116
Technip SA		298		21,147
TOTAL SA		464		23,686
Valeo SA		527		30,281
				611,810
Germany | 1.8%
Allianz SE		808		133,565
Bayer AG		1,445		150,751
Continental AG Sponsored ADR		4,335		166,898
Deutsche Lufthansa AG		2,444		31,580
Infineon Technologies AG		4,849		84,042
MTU Aero Engines AG		506		58,377
Muenchener Rueckversicherungs AG		230		43,500
ProSiebenSat.1 Media SE		505		19,522
Rheinmetall AG		595		39,978
Symrise AG ADR		11,125		168,878
				897,091

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

Annual Report  13

Description	Shares		Fair Value
Lazard Global Dynamic Multi Asset Portfolio (continued)
Hong Kong | 1.6%
AIA Group, Ltd. Sponsored ADR		5,135	$	115,383
CLP Holdings, Ltd.		6,705		61,265
Jardine Matheson Holdings, Ltd.		3,518		194,064
Link Real Estate Investment Trust		7,090		45,784
The Wharf Holdings, Ltd.		15,435		101,432
WH Group, Ltd.		84,500		68,035
Wheelock & Co., Ltd.		23,504		131,935
Xinyi Glass Holdings, Ltd.		76,000		61,823
Yue Yuen Industrial Holdings, Ltd.		5,590		20,235
				799,956
Ireland | 0.6%
Experian PLC		827		16,008
Ryanair Holdings PLC Sponsored ADR (a)		322		26,810
Shire PLC ADR		1,530		260,681
				303,499
Israel | 0.4%
Bank Hapoalim BM		4,308		25,573
Israel Discount Bank, Ltd., Class A (a)		11,669		24,225
Nice, Ltd.		1,530		104,949
Orbotech, Ltd. (a)		1,702		56,864
				211,611
Italy | 0.1%
Enel SpA		10,682		47,007
Recordati SpA		844		23,906
				70,913
Japan | 6.7%
Amano Corp.		1,833		32,138
Asahi Glass Co., Ltd.		3,000		20,382
Astellas Pharma, Inc.		2,655		36,802
Azbil Corp.		900		25,273
Central Japan Railway Co.		478		78,509
Daito Trust Construction Co., Ltd.		1,918		288,066
Daiwa House Industry Co., Ltd.		1,400		38,191
Daiwa House Industry Co., Ltd. ADR		7,945		215,707
Foster Electric Co., Ltd.		926		17,478
Haseko Corp.		5,902		59,737
Heiwa Corp.		1,100		25,165
Hitachi High-Technologies Corp.		700		28,175
Idemitsu Kosan Co., Ltd.		2,800		74,222
Iida Group Holdings Co., Ltd.		2,888		54,675
Japan Airlines Co., Ltd.		660		19,260

Description	Shares		Fair Value
Kakaku.com, Inc.		2,463	$	40,722
Kaken Pharmaceutical Co., Ltd.		400		21,179
KDDI Corp.		1,500		37,872
KDDI Corp. ADR		15,505		196,138
Kuraray Co., Ltd.		3,400		50,877
Kyokuto Kaihatsu Kogyo Co., Ltd.		913		12,248
Mazda Motor Corp.		863		14,017
MCJ Co., Ltd.		2,351		23,068
Mebuki Financial Group, Inc.		5,500		20,323
Mitsubishi Chemical Holdings Corp.		4,400		28,354
Mitsubishi Electric Corp.		2,852		39,647
Mitsubishi UFJ Financial Group, Inc.		18,477		113,596
Mitsui Chemicals, Inc.		14,628		65,536
Morinaga & Co., Ltd.		500		20,794
MS&AD Insurance Group Holdings, Inc.		838		25,891
Nichirei Corp.		2,213		45,791
Nihon Chouzai Co., Ltd.		1,075		40,038
Nippon Light Metal Holdings Co., Ltd.		14,871		31,307
Nippon Telegraph & Telephone Corp.		3,808		160,072
Nissan Chemical Industries, Ltd.		482		16,068
Nissan Motor Co., Ltd.		11,876		119,146
Nitto Denko Corp.		175		13,400
Oji Holdings Corp.		6,000		24,390
ORIX Corp.		4,213		65,270
Osaki Electric Co., Ltd.		2,000		20,797
Rengo Co., Ltd.		6,152		33,434
Ryohin Keikaku Co., Ltd. ADR		4,230		166,546
Sanyo Special Steel Co., Ltd.		6,752		31,935
Shimadzu Corp.		800		12,715
Showa Shell Sekiyu KK		6,172		57,339
Sumitomo Mitsui Financial Group, Inc.		10,850		411,324
Sumitomo Osaka Cement Co., Ltd.		5,000		18,801
Takeuchi Manufacturing Co., Ltd.		1,513		33,538
Teijin, Ltd.		2,775		56,114
Tohoku Electric Power Co., Inc.		1,113		14,044
Tokyu Fudosan Holdings Corp.		7,002		41,250
TOMONY Holdings, Inc.		5,300		27,348
Toray Industries, Inc.		4,000		32,330
West Japan Railway Co.		300		18,384
Yamaguchi Financial Group, Inc.		930		10,106
Yodogawa Steel Works, Ltd.		663		17,292
				3,242,821
Malta | 0.1%
Kindred Group PLC		3,379		31,686

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

14  Annual Report

Description	Shares		Fair Value
Lazard Global Dynamic Multi Asset Portfolio (continued)
Netherlands | 1.1%
Koninklijke Vopak NV		1,233	$	58,166
NN Group NV		1,341		45,410
NXP Semiconductors NV (a)		1,115		109,281
Royal Dutch Shell PLC, A Shares		4,475		121,639
Wolters Kluwer NV		330		11,934
Wolters Kluwer NV Sponsored ADR		5,635		204,551
				550,981
New Zealand | 0.1%
Fletcher Building, Ltd.		3,411		25,055
Norway | 0.4%
Aker BP ASA		7,026		125,604
DNB ASA		1,276		18,976
Leroy Seafood Group ASA		364		20,264
Telenor ASA		1,423		21,216
				186,060
Portugal | 0.3%
EDP-Energias de Portugal SA		5,253		15,997
Galp Energia SGPS SA		8,107		120,511
Jeronimo Martins SGPS SA		924		14,333
				150,841
Singapore | 0.3%
BOC Aviation, Ltd.		10,700		52,438
CapitaLand Commercial Trust REIT		23,400		23,782
SATS, Ltd.		6,000		20,046
Singapore Airlines, Ltd.		6,730		44,825
				141,091
South Africa | 0.0%
Mediclinic International PLC		1,103		10,424
Spain | 0.8%
Banco Santander SA		51,702		269,896
CaixaBank SA		30,102		99,440
Corporacion Financiera Alba SA		178		8,032
				377,368
Sweden | 0.7%
Assa Abloy AB ADR		21,510		198,968
Axfood AB		1,309		20,554
Electrolux AB, Series B		3,351		83,201
Mycronic AB		2,757		29,596
Nobina AB		4,397		24,486
				356,805

Description	Shares		Fair Value
Switzerland | 1.7%
Actelion, Ltd.		140	$	30,315
Actelion, Ltd. ADR		2,230		121,424
Partners Group Holding AG		648		303,700
Roche Holding AG		1,603		366,157
Swiss Life Holding AG		72		20,378
				841,974
United Kingdom | 5.7%
Admiral Group PLC		1,567		35,138
Ashtead Group PLC ADR		1,815		144,111
Bellway PLC		693		21,086
British American Tobacco PLC Sponsored ADR		1,815		204,496
BT Group PLC		35,285		159,783
Centrica PLC		49,176		141,679
Cineworld Group PLC		1,202		8,350
Compass Group PLC		3,302		60,863
Compass Group PLC Sponsored ADR		8,685		162,236
CVS Group PLC		1,464		19,840
Diageo PLC Sponsored ADR		1,610		167,343
GlaxoSmithKline PLC		7,360		140,555
Halma PLC		1,372		15,122
Hargreaves Lansdown PLC		2,672		39,886
International Consolidated Airlines Group SA		7,572		40,860
International Consolidated Airlines Group SA Sponsored ADR		996		10,745
JD Sports Fashion PLC		11,499		44,990
National Grid PLC		1,907		22,303
Persimmon PLC		2,740		59,790
Phoenix Group Holdings		5,696		51,534
Provident Financial PLC		598		21,024
Prudential PLC ADR		3,725		148,218
Reckitt Benckiser Group PLC		626		52,918
RELX NV Sponsored ADR		13,880		232,629
RELX PLC		1,011		17,980
Rentokil Initial PLC		13,658		37,362
Rightmove PLC		414		19,896
SSE PLC		25,886		494,844
Subsea 7 SA (a)		5,449		68,878
Unilever PLC Sponsored ADR		2,525		102,767
William Hill PLC		5,300		18,890
Wm Morrison Supermarkets PLC		10,971		31,167
				2,797,283

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

Annual Report  15

Description	Shares		Fair Value
Lazard Global Dynamic Multi Asset Portfolio (continued)
United States | 44.2%
3M Co.		2,712	$	484,282
AbbVie, Inc.		1,015		63,559
Accenture PLC, Class A		3,766		441,112
Adobe Systems, Inc. (a)		558		57,446
Aetna, Inc.		256		31,747
Akamai Technologies, Inc. (a)		296		19,737
Alaska Air Group, Inc.		254		22,537
Alphabet, Inc., Class A (a)		403		319,357
Alphabet, Inc., Class C (a)		277		213,794
Amdocs, Ltd.		432		25,164
American Electric Power Co., Inc.		1,825		114,902
American Express Co.		566		41,929
Amgen, Inc.		3,838		561,154
Aon PLC		2,028		226,183
Apple, Inc.		4,997		578,753
Applied Materials, Inc.		6,135		197,976
ARRIS International PLC (a)		1,357		40,886
AT&T, Inc.		8,796		374,094
Automatic Data Processing, Inc.		490		50,362
AutoZone, Inc. (a)		200		157,958
Baker Hughes, Inc.		2,529		164,309
Bank of America Corp.		12,074		266,835
Baxter International, Inc.		2,705		119,940
C.R. Bard, Inc.		224		50,324
Cardinal Health, Inc.		295		21,231
Carnival Corp.		2,059		107,192
Carnival PLC		380		19,252
Carrizo Oil & Gas, Inc. (a)		807		30,141
CBOE Holdings, Inc.		752		55,565
Church & Dwight Co., Inc.		506		22,360
Cirrus Logic, Inc. (a)		322		18,206
Cisco Systems, Inc.		7,245		218,944
Citigroup, Inc.		3,344		198,734
Citrix Systems, Inc. (a)		228		20,363
Colgate-Palmolive Co.		305		19,959
Comcast Corp., Class A		1,805		124,635
Comerica, Inc.		1,715		116,809
CVS Health Corp.		1,010		79,699
Darden Restaurants, Inc.		977		71,047
Dick’s Sporting Goods, Inc.		486		25,807
Dr Pepper Snapple Group, Inc.		524		47,511
DTE Energy Co.		255		25,120
Eaton Corp. PLC		1,910		128,142

Description	Shares		Fair Value
eBay, Inc. (a)		2,020	$	59,974
EOG Resources, Inc.		1,315		132,947
Everest Re Group, Ltd.		489		105,820
Exelon Corp.		1,239		43,972
F5 Networks, Inc. (a)		236		34,154
Facebook, Inc., Class A (a)		1,479		170,159
FactSet Research Systems, Inc.		381		62,267
FedEx Corp.		942		175,400
Fidelity National Information Services, Inc.		1,815		137,287
Fifth Third Bancorp		1,056		28,480
Fiserv, Inc. (a)		390		41,449
Foot Locker, Inc.		1,954		138,519
General Mills, Inc.		1,441		89,011
General Motors Co.		3,794		132,183
Genpact, Ltd. (a)		711		17,306
GoDaddy, Inc., Class A (a)		540		18,873
Great Plains Energy, Inc.		12,169		332,822
Harman International Industries, Inc.		265		29,457
Hasbro, Inc.		545		42,396
HCA Holdings, Inc. (a)		986		72,984
Honeywell International, Inc.		1,775		205,634
HP, Inc.		3,265		48,453
Humana, Inc.		679		138,536
IDEXX Laboratories, Inc. (a)		295		34,595
Intel Corp.		3,568		129,411
Intercontinental Exchange, Inc.		3,630		204,805
International Game Technology PLC		945		24,116
Intuit, Inc.		594		68,078
Iron Mountain, Inc. REIT		425		13,804
J.B. Hunt Transport Services, Inc.		485		47,079
Johnson & Johnson		5,192		598,170
Johnson Controls International PLC		4,003		164,884
Jones Lang LaSalle, Inc.		295		29,807
JPMorgan Chase & Co.		5,084		438,698
Juniper Networks, Inc.		1,512		42,729
KB Home		1,050		16,601
Kellogg Co.		1,210		89,189
Kimberly-Clark Corp.		585		66,760
Las Vegas Sands Corp.		1,062		56,721
Lear Corp.		166		21,973
Legg Mason, Inc.		970		29,013
Lowe’s Cos., Inc.		3,183		226,375
Manitowoc Foodservice, Inc. (a)		5,625		108,731
Marathon Petroleum Corp.		1,442		72,605
Marsh & McLennan Cos., Inc.		823		55,627
MasterCard, Inc., Class A		487		50,283

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

16  Annual Report

Description	Shares		Fair Value
Lazard Global Dynamic Multi Asset Portfolio (continued)
Mead Johnson Nutrition Co.		1,105	$	78,190
MetLife, Inc.		2,306		124,270
Mettler-Toledo International, Inc. (a)		233		97,524
Microsoft Corp.		12,086		751,024
MKS Instruments, Inc.		397		23,582
Mohawk Industries, Inc. (a)		567		113,219
Molson Coors Brewing Co., Class B		1,800		175,158
Monsanto Co.		1,000		105,210
Motorola Solutions, Inc.		240		19,894
MSCI, Inc.		383		30,173
NIKE, Inc., Class B		850		43,206
Nordstrom, Inc.		548		26,266
Northrop Grumman Corp.		304		70,704
NVIDIA Corp.		766		81,763
O’Reilly Automotive, Inc. (a)		197		54,847
Omnicom Group, Inc.		760		64,684
Paychex, Inc.		854		51,992
PayPal Holdings, Inc. (a)		405		15,985
PepsiCo, Inc.		5,094		532,985
Phillips 66		168		14,517
Pinnacle West Capital Corp.		394		30,744
Piper Jaffray Cos. (a)		1,022		74,095
Pool Corp.		717		74,812
Primerica, Inc.		227		15,697
Prudential Financial, Inc.		2,598		270,348
Public Service Enterprise Group, Inc.		1,884		82,670
Quest Diagnostics, Inc.		1,678		154,208
Quintiles IMS Holdings, Inc. (a)		2,355		179,098
Regions Financial Corp.		21,897		314,441
Republic Services, Inc.		1,019		58,134
Reynolds American, Inc.		2,110		118,244
Rice Energy, Inc. (a)		1,311		27,990
Rockwell Automation, Inc.		1,510		202,944
Rockwell Collins, Inc.		503		46,658
Ross Stores, Inc.		3,273		214,709
S&P Global, Inc.		1,915		205,939
Sanderson Farms, Inc.		214		20,167
Schlumberger, Ltd.		3,765		316,072
Skyworks Solutions, Inc.		1,745		130,282
Snap-on, Inc.		805		137,872
Southwestern Energy Co. (a)		1,245		13,471
Spirit AeroSystems Holdings, Inc., Class A		530		30,926

Description	Shares		Fair Value
St. Jude Medical, Inc.		352	$	28,227
Starbucks Corp.		2,100		116,592
Sysco Corp.		7,076		391,798
Tallgrass Energy GP LP		1,120		30,016
Teradata Corp. (a)		595		16,166
Tesoro Corp.		462		40,402
Texas Instruments, Inc.		2,838		207,089
The Boeing Co.		1,307		203,474
The Charles Schwab Corp.		4,130		163,011
The Clorox Co.		197		23,644
The Coca-Cola Co.		4,030		167,084
The Dow Chemical Co.		4,123		235,918
The Estee Lauder Cos., Inc., Class A		751		57,444
The Gap, Inc.		1,536		34,468
The Interpublic Group of Cos., Inc.		4,624		108,248
The Kroger Co.		6,818		235,289
The Procter & Gamble Co.		2,037		171,271
The Sherwin-Williams Co.		725		194,836
The Southern Co.		2,140		105,267
The TJX Cos., Inc.		1,599		120,133
The Walt Disney Co.		284		29,598
Thermo Fisher Scientific, Inc.		1,110		156,621
Time Warner, Inc.		2,827		272,890
Tyson Foods, Inc., Class A		1,119		69,020
Ubiquiti Networks, Inc. (a)		412		23,814
United Rentals, Inc. (a)		449		47,405
United Technologies Corp.		2,315		253,770
UnitedHealth Group, Inc.		2,250		360,090
Unum Group		968		42,524
Vantiv, Inc., Class A (a)		2,815		167,830
Verizon Communications, Inc.		9,617		513,355
Visa, Inc., Class A		2,820		220,016
VMware, Inc., Class A (a)		506		39,837
Wal-Mart Stores, Inc.		791		54,674
Waste Management, Inc.		848		60,132
Waters Corp. (a)		288		38,704
WellCare Health Plans, Inc. (a)		872		119,534
Wyndham Worldwide Corp.		249		19,016
Xcel Energy, Inc.		2,226		90,598
Zoetis, Inc.		5,440		291,203
				21,538,916
Total Common Stocks (Cost $36,544,820)				36,829,575

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

Annual Report  17

		Principal
	Security	Amount		Fair
Description	Currency	(000)		Value
Lazard Global Dynamic Multi Asset Portfolio (continued)
Corporate Bonds | 8.0%
Australia | 0.3%
Telstra Corp., Ltd.:
4.000%, 11/15/17	AUD		140	$	102,279
4.000%, 09/16/22	AUD		30		22,140
Toyota Finance Australia, Ltd., 4.250%, 05/15/19	AUD		65		48,439
					172,858
Belgium | 0.4%
Anheuser-Busch InBev Finance, Inc.:
2.375%, 01/25/18	CAD		95		71,597
2.650%, 02/01/21	USD		105		105,482
					177,079
Canada | 0.7%
Shaw Communications, Inc., 5.650%, 10/01/19	CAD		135		109,732
The Bank of Nova Scotia, 2.125%, 09/11/19	USD		120		120,555
The Toronto-Dominion Bank:
2.250%, 11/05/19	USD		75		75,410
2.621%, 12/22/21	CAD		65		49,649
					355,346
Denmark | 0.2%
Carlsberg Breweries A/S, 2.500%, 05/28/24	EUR		100		115,705
France | 0.3%
Orange SA, 5.375%, 07/08/19	USD		148		159,423
Germany | 0.4%
BMW Finance NV, 3.375%, 12/14/18	GBP		135		174,790
Netherlands | 0.2%
Bank Nederlandse Gemeenten NV, 5.000%, 09/16/20	NZD		110		79,959

		Principal
	Security	Amount		Fair
Description	Currency	(000)		Value
New Zealand | 0.2%
Fonterra Cooperative Group, Ltd., 5.500%, 02/26/24	AUD		100	$	77,837
Norway | 0.2%
Statoil ASA, 3.700%, 03/01/24	USD		85		88,920
Spain | 0.2%
Iberdrola International BV, 1.125%, 04/21/26	EUR		100		104,909
United Kingdom | 0.8%
Centrica PLC, 7.000%, 09/19/18	GBP		100		135,931
Rolls-Royce PLC, 6.750%, 04/30/19	GBP		100		140,145
SSE PLC, 5.000%, 10/01/18	GBP		100		132,299
					408,375
United States | 4.1%
Alphabet, Inc., 3.625%, 05/19/21	USD		60		63,573
Amazon.com, Inc., 3.800%, 12/05/24	USD		115		120,699
Apple, Inc.:
2.850%, 02/23/23	USD		22		22,114
3.850%, 05/04/43	USD		145		138,377
Citigroup, Inc., 3.305%, 05/04/21 (c)	AUD		185		134,088
General Electric Co.:
5.500%, 02/01/17	NZD		30		20,889
4.250%, 01/17/18	NZD		155		108,895
John Deere Canada Funding, Inc.:
2.300%, 01/17/18	CAD		75		56,502
2.050%, 09/17/20	CAD		70		52,357
John Deere Capital Corp., 2.300%, 09/16/19	USD		60		60,622
JPMorgan Chase & Co., 4.500%, 01/24/22	USD		85		91,578
Microsoft Corp., 4.450%, 11/03/45	USD		177		188,195
Morgan Stanley, 2.500%, 01/24/19	USD		165		166,675

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

18   Annual Report

		Principal
	Security	Amount		Fair
Description	Currency	(000)		Value
Lazard Global Dynamic Multi Asset Portfolio (continued)
NIKE, Inc., 2.375%, 11/01/26	USD		85	$	80,070
The Goldman Sachs Group, Inc.:
5.200%, 12/17/19	NZD		165		117,898
3.625%, 01/22/23	USD		95		96,939
The Home Depot, Inc., 2.625%, 06/01/22	USD		115		115,432
Union Pacific Corp., 4.163%, 07/15/22	USD		105		113,037
Valero Energy Corp., 6.125%, 02/01/20	USD		65		71,699
Wells Fargo & Co., 3.075%, 07/27/21 (c)	AUD		200		144,830
Wells Fargo Canada Corp., 3.040%, 01/29/21	CAD		50		38,774
					2,003,243
Total Corporate Bonds (Cost $4,023,821)					3,918,444
Foreign Government Obligations | 10.2%
Australia | 1.1%
Queensland Treasury Corp., 5.500%, 06/21/21	AUD		200		162,541
Treasury Corp. of Victoria, 6.000%, 10/17/22	AUD		200		170,883
Western Australian Treasury Corp., 6.000%, 10/16/23	AUD		250		214,657
					548,081
Bahamas | 0.3%
Commonwealth of Bahamas, 5.750%, 01/16/24	USD		140		142,174
Bermuda | 0.4%
Government of Bermuda, 4.854%, 02/06/24	USD		200		207,834
Canada | 1.2%
Province of Alberta, 4.000%, 12/01/19	CAD		135		108,251
Province of British Columbia, 3.700%, 12/18/20	CAD		155		125,361
Province of Ontario, 1.950%, 01/27/23	CAD		225		167,296

		Principal
	Security	Amount		Fair
Description	Currency	(000)		Value
Province of Quebec:
3.500%, 07/29/20	USD		105	$	110,591
2.500%, 04/20/26	USD		90		86,497
					597,996
Cayman Islands | 0.4%
Cayman Islands Government Bond, 5.950%, 11/24/19	USD		200		218,750
Chile | 0.4%
Republic of Chile, 3.125%, 01/21/26	USD		200		197,000
Colombia | 0.1%
Republic of Colombia, 2.625%, 03/15/23	USD		70		65,887
Czech Republic | 0.4%
Czech Republic, 0.060%, 12/09/20 (c)	CZK		4,580		181,894
Hungary | 0.3%
Hungary Government Bond, 5.500%, 06/24/25	HUF		30,840		125,326
Ireland | 0.5%
Irish Treasury, 3.400%, 03/18/24	EUR		175		223,972
Mexico | 0.8%
Mexican Bonos:
5.000%, 12/11/19	MXN		1,970		90,049
6.500%, 06/09/22	MXN		2,030		94,502
United Mexican States, 6.750%, 02/06/24	GBP		135		199,441
					383,992
New Zealand | 0.6%
New Zealand Government Bonds:
6.000%, 12/15/17	NZD		115		82,554
6.000%, 05/15/21	NZD		290		222,085
					304,639
Norway | 0.6%
Kommunalbanken AS, 1.375%, 10/26/20	USD		200		195,126
Oslo Kommune, 1.600%, 05/05/22	NOK		1,000		112,294
					307,420

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

Annual Report   19

		Principal
	Security	Amount		Fair
Description	Currency	(000)		Value
Lazard Global Dynamic Multi Asset Portfolio (continued)
Poland | 0.8%
Poland Government Bond, 1.790%, 01/25/21 (c)	PLN		1,564	$	367,528
Romania | 0.2%
Romanian Government Bond, 2.875%, 10/28/24	EUR		77		86,120
Singapore | 1.0%
Singapore Government Bond, 3.000%, 09/01/24	SGD		671		482,810
Spain | 0.5%
Spain Government Bonds:
1.600%, 04/30/25	EUR		101		110,045
1.950%, 07/30/30	EUR		103		110,338
					220,383
Sweden | 0.6%
Kommuninvest I Sverige AB, 1.500%, 04/23/19	USD		200		198,647
Svensk Exportkredit AB, 1.875%, 12/21/18	GBP		90		113,926
					312,573
Total Foreign Government Obligations (Cost $5,154,538)					4,974,379
Quasi Government Bonds | 1.1%
Canada | 0.7%
Hydro-Quebec:
1.037%, 12/01/19 (c)	CAD		360		268,454
9.625%, 07/15/22	CAD		80		83,629
					352,083
Germany | 0.4%
KFW, 1.125%, 12/23/19	GBP		135		169,637
Total Quasi Government Bonds (Cost $529,489)					521,720

		Principal
	Security	Amount		Fair
Description	Currency	(000)		Value
Supranationals | 1.2%
African Development Bank, 2.375%, 09/23/21	USD		50	$	50,295
Asian Development Bank:
1.875%, 04/12/19	USD		125		125,842
2.125%, 03/19/25	USD		115		110,850
Corporacion Andina de Fomento, 4.375%, 06/15/22	USD		115		121,999
European Investment Bank, 1.125%, 09/16/21 (d)	CAD		185		134,141
Inter-American Development Bank, 6.000%, 12/15/17	NZD		85		60,920
Total Supranationals (Cost $617,918)					604,047
US Municipal Bonds | 0.5%
California | 0.3%
California State Build America Bond, 7.500%, 04/01/34	USD		95		134,283
Georgia | 0.2%
Georgia State Build America Bond Series B, 2.380%, 02/01/27	USD		100		93,181
Total US Municipal Bonds (Cost $244,914)					227,464
US Treasury Securities | 1.4%
US Treasury Notes:
2.125%, 05/15/25	USD		410		401,365
1.625%, 05/15/26	USD		175		163,187
2.500%, 05/15/46	USD		135		119,674
Total US Treasury Securities (Cost $701,400)					684,226

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

20 Annual Report

			Fair
Description	Shares		Value
Lazard Global Dynamic Multi Asset Portfolio (continued)
Short-Term Investment | 2.1%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $1,016,533)		1,016,533	$	1,016,533

	Fair
Description	Value
Total Investments | 100.0% (Cost $48,833,433) (b), (e)	$	48,776,388
Liabilities in Excess of Cash and Other Assets | 0.0%		(22,212	)
Net Assets | 100.0%	$	48,754,176

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

Annual Report   21

Lazard Global Dynamic Multi Asset Portfolio (continued)

Forward Currency Contracts open at December 31, 2016:

Currency			Currency				Settlement	Unrealized		Unrealized
Purchased	Quantity		Sold	Quantity		Counterparty	Date	Appreciation		Depreciation
AUD		13,569	USD		10,000	HSB	02/16/17	$	—	$	219
AUD		28,422	USD		21,638	HSB	02/16/17		—		1,150
AUD		90,696	USD		68,000	HSB	02/16/17		—		2,618
AUD		365,257	USD		272,240	HSB	02/16/17		—		8,932
CAD		21,394	USD		15,873	CIT	02/16/17		70		—
CAD		90,401	USD		69,000	HSB	02/16/17		—		1,634
CAD		384,311	USD		284,555	HSB	02/16/17		1,830		—
CHF		19,456	USD		19,300	HSB	02/16/17		—		139
CHF		58,627	USD		60,001	HSB	02/16/17		—		2,264
DKK		1,029,573	USD		145,400	HSB	02/16/17		718		—
EUR		33,614	USD		36,112	CIT	02/16/17		—		653
EUR		39,577	USD		42,517	CIT	02/16/17		—		769
EUR		139,954	USD		153,165	CIT	02/16/17		—		5,531
EUR		42,847	USD		45,675	HSB	02/16/17		—		477
EUR		75,603	USD		82,000	HSB	02/16/17		—		2,249
EUR		89,437	USD		96,400	HSB	02/16/17		—		2,055
EUR		118,368	USD		126,000	HSB	02/16/17		—		1,137
EUR		234,513	USD		256,619	HSB	02/16/17		—		9,237
EUR		1,092,517	USD		1,164,500	HSB	02/16/17		—		12,034
EUR		1,118,108	USD		1,223,501	HSB	02/16/17		—		44,040
EUR		389,103	USD		413,632	SSB	03/01/17		—		2,934
GBP		17,283	USD		21,861	CIT	02/16/17		—		539
GBP		193,113	USD		240,869	CIT	02/16/17		—		2,619
GBP		34,927	USD		44,400	HSB	02/16/17		—		1,309
GBP		187,390	USD		238,800	HSB	02/16/17		—		7,610
HUF		7,092,240	USD		24,493	JPM	02/16/17		—		323
JPY		36,457,985	USD		338,017	CIT	02/16/17		—		25,392
JPY		12,664,423	USD		114,400	HSB	02/16/17		—		5,803
JPY		13,261,920	USD		120,000	HSB	02/16/17		—		6,280
JPY		35,136,213	USD		325,738	HSB	02/16/17		—		24,447
JPY		95,071,295	USD		829,000	HSB	02/16/17		—		13,769
JPY		99,325,867	USD		920,822	HSB	02/16/17		—		69,108
KRW		158,523,420	USD		132,700	HSB	01/23/17		—		1,396
MXN		1,276,334	USD		62,434	CIT	02/16/17		—		1,224
NOK		988,767	USD		115,357	CIT	02/16/17		—		816
NZD		14,240	USD		10,000	HSB	02/16/17		—		121
NZD		278,883	USD		196,752	HSB	02/16/17		—		3,271
PLN		296,478	USD		71,216	CIT	02/16/17		—		421
SEK		627,438	USD		69,667	CIT	02/16/17		—		619
SEK		91,973	USD		10,000	HSB	02/16/17		121		—
SEK		457,786	USD		50,100	HSB	02/16/17		278		—
SEK		1,044,007	USD		113,500	HSB	02/16/17		1,390		—
USD		694,012	AUD		656,910	CIT	02/16/17		37,102		—
USD		40,400	AUD		39,779	HSB	02/16/17		621		—
USD		249,549	AUD		251,205	HSB	02/16/17		—		1,656
USD		350,135	AUD		346,220	HSB	02/16/17		3,915		—

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

22   Annual Report

Lazard Global Dynamic Multi Asset Portfolio (concluded)

Currency			Currency				Settlement	Unrealized		Unrealized
Purchased	Quantity		Sold	Quantity		Counterparty	Date	Appreciation		Depreciation
USD		210,870	AUD		203,596	SSB	03/01/17		$    7,274		$         —
USD		626,725	CAD		624,004	CIT	02/16/17		2,721		—
USD		11,100	CAD		11,177	HSB	02/16/17		—		77
USD		29,000	CAD		28,965	HSB	02/16/17		35		—
USD		43,800	CAD		44,016	HSB	02/16/17		—		216
USD		171,397	CAD		172,180	HSB	02/16/17		—		782
USD		607,311	CAD		610,083	HSB	02/16/17		—		2,772
USD		162,382	CAD		162,201	SSB	03/01/17		181		—
USD		11,525	CZK		11,279	HSB	07/11/17		245		—
USD		86,523	CZK		87,230	HSB	07/11/17		—		706
USD		91,622	CZK		85,861	JPM	07/11/17		5,761		—
USD		12,965	EUR		13,066	CIT	02/16/17		—		101
USD		46,625	EUR		47,317	CIT	02/16/17		—		692
USD		133,400	EUR		131,731	CIT	02/16/17		1,669		—
USD		159,663	EUR		160,904	CIT	02/16/17		—		1,242
USD		186,609	EUR		184,483	CIT	02/16/17		2,126		—
USD		133,400	EUR		131,941	HSB	02/16/17		1,459		—
USD		142,400	EUR		142,254	HSB	02/16/17		146		—
USD		380,000	EUR		384,208	HSB	02/16/17		—		4,208
USD		579,100	EUR		573,474	HSB	02/16/17		5,626		—
USD		243,738	GBP		237,730	CIT	02/16/17		6,008		—
USD		282,468	GBP		273,981	CIT	02/16/17		8,486		—
USD		103,902	GBP		103,370	HSB	02/16/17		532		—
USD		147,100	GBP		146,903	HSB	02/16/17		197		—
USD		281,550	GBP		284,115	HSB	02/16/17		—		2,565
USD		66,568	HUF		68,033	JPM	02/16/17		—		1,465
USD		87,588	HUF		84,546	JPM	02/16/17		3,043		—
USD		96,300	JPY		87,744	CIT	02/16/17		8,556		—
USD		24,600	JPY		24,234	HSB	02/16/17		366		—
USD		96,300	JPY		87,941	HSB	02/16/17		8,359		—
USD		439,600	JPY		415,556	HSB	02/16/17		24,044		—
USD		29,793	MXN		29,078	CIT	02/16/17		715		—
USD		191,964	MXN		192,963	CIT	02/16/17		—		999
USD		237,825	NOK		230,176	CIT	02/16/17		7,649		—
USD		431,764	NZD		408,823	CIT	02/16/17		22,941		—
USD		18,100	NZD		17,954	HSB	02/16/17		146		—
USD		82,604	NZD		78,227	HSB	02/16/17		4,376		—
USD		321,334	NZD		319,828	HSB	02/16/17		1,506		—
USD		25,885	PLN		25,922	CIT	02/16/17		—		36
USD		170,369	PLN		173,297	CIT	02/16/17		—		2,928
USD		234,785	PLN		225,654	CIT	02/16/17		9,131		—
USD		22,200	SEK		22,526	HSB	02/16/17		—		326
USD		233,320	SGD		226,869	CIT	02/16/17		6,451		—
USD		255,209	SGD		254,556	CIT	02/16/17		653		—
Total gross unrealized appreciation/depreciation on Forward Currency Contracts									$186,447		$283,910

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

Annual Report   23

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2016

(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:

			Aggregate		Aggregate Gross		Net Unrealized
	Aggregate		Gross Unrealized		Unrealized		Appreciation
Portfolio	Cost		Appreciation		Depreciation		(Depreciation)
Capital Allocator Opportunistic Strategies	$	137,877,421	$	4,325,107	$	544,447	$	3,780,660
Global Dynamic Multi Asset		48,961,321		857,772		1,042,705		(184,933	)

(c)	Variable and floating rate securities are securities for which interest rate changes are based on changes in a designated base rate. The rates shown are those in effect on December 31, 2016.
(d)	Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2016, the percentage of net assets for the following Portfolio was as follows:

	Percentage of
Portfolio	Net Assets
Global Dynamic Multi Asset	0.3%

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

Security Abbreviations:
ADR	—	American Depositary Receipt
ETF	—	Exchange-Traded Fund
ETN	—	Exchange-Traded Note

LIBOR	—	London Interbank Offered Rate
REIT	—	Real Estate Investment Trust

Currency Abbreviations:
AUD	—	Australian Dollar
CAD	—	Canadian Dollar
CHF	—	Swiss Franc
CZK	—	Czech Koruna
DKK	—	Danish Krone
EUR	—	Euro
GBP	—	British Pound Sterling
HUF	—	Hungarian Forint
JPY	—	Japanese Yen

KRW	—	South Korean Won
MXN	—	Mexican New Peso
NOK	—	Norwegian Krone
NZD	—	New Zealand Dollar
PLN	—	Polish Zloty
SEK	—	Swedish Krona
SGD	—	Singapore Dollar
USD	—	United States Dollar

Counterparty Abbreviations:
CIT	—	Citibank NA
HSB	—	HSBC Bank USA NA
JPM	—	JPMorgan Chase Bank NA

GSC	—	Goldman Sachs International
SSB	—	State Street Bank and Trust Co.

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

24  Annual Report

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

	Lazard Global
	Dynamic Multi
Industry*	Asset Portfolio
Aerospace & Defense		1.8	%
Air Freight & Logistics		0.4
Airlines		0.4
Auto Components		1.0
Automobiles		1.1
Banks		8.3
Beverages		3.6
Biotechnology		2.6
Building Products		0.8
Capital Markets		3.4
Chemicals		2.0
Commercial Services & Suppliers		0.4
Communications Equipment		0.8
Construction Materials		0.1
Consumer Finance		0.2
Containers & Packaging		0.2
Distributors		0.1
Diversified Financial Services		0.2
Diversified Telecommunication Services		3.4
Electric Utilities		3.3
Electrical Equipment		0.9
Electronic Equipment, Instruments & Components		0.4
Energy Equipment & Services		1.2
Equity Real Estate Investment Trusts (REITs)		0.3
Food & Staples Retailing		1.9
Food Products		1.3
Health Care Equipment & Supplies		0.8
Health Care Providers & Services		1.9
Hotels, Restaurants & Leisure		1.5
Household Durables		0.9
Household Products		0.7
Independent Power and Renewable Electricity Producers		0.7
Industrial Conglomerates		2.2

	Lazard Global
	Dynamic Multi
Industry*	Asset Portfolio
Insurance		3.8	%
Internet & Catalog Retail		0.2
Internet Software & Services		1.9
IT Services		2.5
Leisure Products		0.1
Life Sciences Tools & Services		1.0
Machinery		0.9
Media		1.6
Metals & Mining		0.8
Multiline Retail		0.6
Multi-Utilities		0.9
Oil, Gas & Consumable Fuels		2.9
Paper & Forest Products		0.1
Personal Products		0.3
Pharmaceuticals		3.6
Professional Services		1.0
Real Estate Management & Development		1.8
Road & Rail		0.9
Semiconductors & Semiconductor Equipment		2.0
Software		2.6
Specialty Retail		2.5
Technology Hardware, Storage & Peripherals		1.7
Textiles, Apparel & Luxury Goods		0.3
Thrifts & Mortgage Finance		0.1
Tobacco		0.7
Trading Companies & Distributors		0.5
Wireless Telecommunication Services		0.5
Subtotal		84.6
Foreign Government Obligations		10.2
Supranationals		1.2
US Municipal Bonds		0.5
US Treasury Securities		1.4
Short-Term Investment		2.1
Total Investments		100.0	%

* 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  25

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2016	Lazard Capital Allocator Opportunistic Strategies Portfolio				Lazard Global Dynamic Multi Asset Portfolio
ASSETS
Investments in securities, at fair value		$	141,658,081		$	48,776,388
Cash			—			314
Cash collateral due from broker			870,000			—
Foreign currency, at fair value			204			4,542
Receivables for:
Dividends and interest			163,570			131,244
Capital stock sold			27,908			—
Amount due from Investment Manager (Note 3)			—			8,016
Amount due from custodian (Note 3)			4,648			—
Gross unrealized appreciation on forward currency contracts			—			186,447
Deferred offering costs (Note 2(h))			—			31,402
Total assets			142,724,411			49,138,353
LIABILITIES
Payables for:
Management fees			109,876			—
Accrued professional services			31,549			17,150
Accrued distribution fees			177			44
Capital stock redeemed			146,602			—
Investments purchased			—			46,607
Gross unrealized depreciation on forward currency contracts			—			283,910
Gross unrealized depreciation on swap agreements			70,696			—
Other accrued expenses and payables			48,317			36,466
Total liabilities			407,217			384,177
Net assets		$	142,317,194		$	48,754,176
NET ASSETS
Paid in capital		$	140,937,951		$	49,015,480
Undistributed (distributions in excess of) net investment income (loss)			50,483			(177,277	)
Accumulated net realized gain (loss)			(2,347,215	)		69,530
Net unrealized appreciation (depreciation) on:
Investments			3,746,686			(57,045	)
Foreign currency translations and forward currency contracts			(15	)		(96,512	)
Swap agreements			(70,696	)		—
Net assets		$	142,317,194		$	48,754,176
Institutional Shares
Net assets		$	141,493,731		$	48,543,766
Shares of capital stock outstanding*			14,593,661			4,855,126
Net asset value, offering and redemption price per share		$	9.70		$	10.00
Open Shares
Net assets		$	823,463		$	210,410
Shares of capital stock outstanding*			85,313			21,043
Net asset value, offering and redemption price per share		$	9.65		$	10.00
Cost of investments in securities		$	137,911,395		$	48,833,433
Cost of foreign currency		$	219		$	4,526

* $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.

26  Annual Report

The Lazard Funds, Inc. Statements of Operations

For the Period Ended December 31, 2016	Lazard Capital Allocator Opportunistic Strategies Portfolio				Lazard Global Dynamic Multi Asset Portfolio (a)
Investment Income (Loss)
Income
Dividends		$	4,102,902		$	193,263
Interest			77,696			90,434
Total investment income*			4,180,598			283,697
Expenses
Management fees (Note 3)			1,527,076			122,232
Administration fees			80,656			31,808
Custodian fees			49,035			95,782
Professional services			47,421			30,824
Shareholders’ reports			40,136			4,160
Registration fees			36,093			4,312
Shareholders’ services			27,286			17,567
Directors’ fees and expenses			10,861			2,860
Distribution fees (Open Shares)			1,777			229
Amortization of offering costs (Note 2(h))			—			45,008
Organization expenses (Note 2(h))			—			19,480
Other†			10,799			4,692
Total gross expenses			1,831,140			378,954
Management fees waived and expenses reimbursed			(265,685	)		(221,998	)
Administration and shareholders’ services fees waived			—			(20,037	)
Reimbursement of custodian fees (Note 3)			(4,648	)		—
Total net expenses			1,560,807			136,919
Net investment income (loss)			2,619,791			146,778
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions, Forward Currency Contracts, Options and Swap Agreements
Net realized gain (loss) on:
Investments			(932,858	)		34,353
Foreign currency transactions and forward currency contracts			(785,604	)		(33,695	)
Written options			94,300			—
Swap agreements			(406,462	)		—
Total net realized gain (loss) on investments, foreign currency transactions, forward currency contracts, options and swap agreements			(2,030,624	)		658
Net change in unrealized appreciation (depreciation) on:
Investments			6,546,106			(57,045	)
Foreign currency translations and forward currency contracts			300,152			(96,512	)
Swap agreements			85,642			—
Total net change in unrealized appreciation (depreciation) on investments, foreign currency translations, forward currency contracts and swap agreements			6,931,900			(153,557	)
Net realized and unrealized gain (loss) on investments, foreign currency transactions, forward currency contracts, options and swap agreements			4,901,276			(152,899	)
Net increase (decrease) in net assets resulting from operations		$	7,521,067		$	(6,121	)
* Net of foreign withholding taxes of		$	—		$	7,473
† Includes interest on line of credit of		$	352		$	—

(a) From the Portfolio’s commencement of operations on May 27, 2016.

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

Annual Report  27

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

	Lazard Capital Allocator						Lazard Global Dynamic
	Opportunistic Strategies Portfolio						Multi Asset Portfolio
	Year Ended			Year Ended			Period Ended
	December 31,			December 31,			December 31,
	2016			2015			2016 (a)
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	2,619,791		$	1,118,616		$	146,778
Net realized gain (loss) on investments, foreign currency transactions, forward currency contracts, options and swap agreements		(2,030,624	)		3,367,930			658
Net change in unrealized appreciation (depreciation) on investments, foreign currency translations, forward currency contracts and swap agreements		6,931,900			(10,851,037	)		(153,557	)
Net increase (decrease) in net assets resulting from operations		7,521,067			(6,364,491	)		(6,121	)
Distributions to shareholders
From net investment income
Institutional Shares		(2,125,006	)		(537,708	)		(239,979	)
Open Shares		(10,062	)		(287	)		(661	)
From net realized gains
Institutional Shares		—			(4,106,775	)		(16,276	)
Open Shares		—			(107,847	)		(70	)
Return of capital
Institutional Shares		(246,932	)		(80,408	)		—
Open Shares		(1,169	)		(43	)		—
Net decrease in net assets resulting from distributions		(2,383,169	)		(4,833,068	)		(256,986	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		18,930,615			54,140,485			48,568,527
Open Shares		349,702			7,617,272			230,070
Net proceeds from reinvestment of distributions
Institutional Shares		2,219,667			4,523,591			256,255
Open Shares		11,030			107,963			731
Cost of shares redeemed
Institutional Shares		(55,399,225	)		(62,815,108	)		(18,315	)
Open Shares		(284,038	)		(10,467,007	)		(19,985	)
Net increase (decrease) in net assets from capital stock transactions		(34,172,249	)		(6,892,804	)		49,017,283
Redemption fees (Note 2(j))
Institutional Shares		1,002			1,433			—
Net increase in net assets from redemption fees		1,002			1,433			—
Total increase (decrease) in net assets		(29,033,349	)		(18,088,930	)		48,754,176
Net assets at beginning of period		171,350,543			189,439,473			—
Net assets at end of period*	$	142,317,194		$	171,350,543		$	48,754,176
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	50,483		$	(309,347	)	$	(177,277	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		18,234,761			18,509,479			—
Shares sold		2,073,664			5,591,303			4,831,304
Shares issued to shareholders from reinvestment of distributions		228,596			486,397			25,600
Shares redeemed		(5,943,360	)		(6,352,418	)		(1,778	)
Net increase (decrease)		(3,641,100	)		(274,718	)		4,855,126
Shares outstanding at end of period		14,593,661			18,234,761			4,855,126
Open Shares
Shares outstanding at beginning of period		77,778			394,279			—
Shares sold		36,303			752,866			22,963
Shares issued to shareholders from reinvestment of distributions		1,142			11,594			73
Shares redeemed		(29,910	)		(1,080,961	)		(1,993	)
Net increase (decrease)		7,535			(316,501	)		21,043
Shares outstanding at end of period		85,313			77,778			21,043

(a) The Portfolio commenced operations on May 27, 2016.

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

28  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 period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	9.36		$	10.02		$	10.24		$	10.03		$	9.26
Income (loss) from investment operations:
Net investment income (loss) (a)		0.16	^		0.07			0.04			0.09			0.11
Net realized and unrealized gain (loss)		0.34			(0.46	)		0.41			1.12			0.74
Total from investment operations		0.50			(0.39	)		0.45			1.21			0.85
Less distributions from:
Net investment income		(0.14	)		(0.03	)		(0.28	)		(0.48	)		(0.08	)
Net realized gains		—			(0.24	)		(0.39	)		(0.52	)		—
Return of capital		(0.02	)		—	(b)		—			—			—
Total distributions		(0.16	)		(0.27	)		(0.67	)		(1.00	)		(0.08	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	9.70		$	9.36		$	10.02		$	10.24		$	10.03
Total Return (c)		5.36	%^		–3.80	%		4.40	%		12.22	%		9.16	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	141,494		$	170,626		$	185,489		$	214,161		$	224,982
Ratios to average net assets:
Net expenses		1.02	%^		1.02	%		1.02	%		1.02	%		1.02	%
Gross expenses		1.19	%		1.18	%		1.15	%		1.13	%		1.12	%
Net investment income (loss)		1.72	%^		0.66	%		0.35	%		0.89	%		1.13	%
Portfolio turnover rate		238	%		255	%		265	%		193	%		139	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	9.32		$	10.02		$	10.24		$	10.03		$	9.26
Income (loss) from investment operations:
Net investment income (loss) (a)		0.13	^		0.01			0.01			0.06			0.07
Net realized and unrealized gain (loss)		0.33			(0.47	)		0.41			1.12			0.75
Total from investment operations		0.46			(0.46	)		0.42			1.18			0.82
Less distributions from:
Net investment income		(0.11	)		—	(b)		(0.25	)		(0.45	)		(0.05	)
Net realized gains		—			(0.24	)		(0.39	)		(0.52	)		—
Return of capital		(0.02	)		—	(b)		—			—			—
Total distributions		(0.13	)		(0.24	)		(0.64	)		(0.97	)		(0.05	)
Redemption fees		—			—			—	(b)		—			—
Net asset value, end of period	$	9.65		$	9.32		$	10.02		$	10.24		$	10.03
Total Return (c)		4.97	%^		–4.51	%		4.10	%		11.90	%		8.84	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	823		$	725		$	3,950		$	2,616		$	3,099
Ratios to average net assets:
Net expenses		1.32	%^		1.32	%		1.32	%		1.32	%		1.32	%
Gross expenses		3.31	%		1.66	%		1.81	%		1.84	%		1.67	%
Net investment income (loss)		1.43	%^		0.15	%		0.14	%		0.60	%		0.69	%
Portfolio turnover rate		238	%		255	%		265	%		193	%		139	%

^	Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the current period. The amount of the reimbursement was on a per share basis at less than $0.005 per share. There was no impact on the total return of the Portfolio. The net expenses and net investment income (loss) ratios of the Portfolio would be unchanged as the change to current period custodian fees was offset against current period expense waivers/reimbursements with no impact to net expenses or net investment income (loss).
(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  29

LAZARD GLOBAL DYNAMIC MULTI ASSET PORTFOLIO

	For the Period
Selected data for a share of capital	5/27/16* to
stock outstanding throughout the period	12/31/16
Institutional Shares
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.06
Net realized and unrealized gain (loss)			(0.01	)
Total from investment operations			0.05
Less distributions from:
Net investment income			(0.05	)
Net realized gains			—	(b)
Total distributions			(0.05	)
Net asset value, end of period		$	10.00
Total Return (c)			0.53	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	48,544
Ratios to average net assets (d):
Net expenses			0.90	%
Gross expenses			2.14	%
Net investment income (loss)			0.95	%
Portfolio turnover rate			67	%
	For the Period
Selected data for a share of capital	5/27/16* to
stock outstanding throughout the period	12/31/16
Open Shares
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.04
Net realized and unrealized gain (loss)			(0.01	)
Total from investment operations			0.03
Less distributions from:
Net investment income			(0.03	)
Net realized gains			—	(b)
Total distributions			(0.03	)
Net asset value, end of period		$	10.00
Total Return (c)			0.35	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	210
Ratios to average net assets (d):
Net expenses			1.20	%
Gross expenses			9.43	%
Net investment income (loss)			0.72	%
Portfolio turnover rate			67	%

*	The Portfolio commenced operations on May 27, 2016.
(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. Return for a period of less than one year is not annualized.
(d)	Annualized for a period of less than one year except for non-recurring expenses.

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

30  Annual Report

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2016

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-three no-load portfolios (each referred to as a “Portfolio”). This report includes only the financial statements of Capital Allocator Opportunistic Strategies and Global Dynamic Multi Asset (commenced investment operations on May 27, 2016) Portfolios. The financial statements of other Portfolios are presented separately.

The Portfolios are operated as “diversified” funds, as defined in the 1940 Act.

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).

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—Market values for securities listed on the New York Stock Exchange (“NYSE”), NASDAQ national market or other US or foreign exchanges or markets are generally based on the last reported sales price on the exchange or market on which the security is principally traded 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 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 net asset value (“NAV”) per share.

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.

Calculation of a Portfolio’s NAV may not take place contemporaneously with the determination of the prices of portfolio assets used in such calculation. Trading on Europe, Latin and South America and Far East securities exchanges and in over-the-counter markets ordinarily is completed well before the close of business on each business day in New York (i.e., a day on which the NYSE is open). In addition, European or Far Eastern securities trading generally or in a particular country or countries may not take place on all business days in New York and on which the NAV of a Portfolio is calculated.

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

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

Annual Report  31

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 non-US securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by a Portfolio. Interest income, if any, is accrued daily. A Portfolio amortizes premiums and accretes discounts on fixed-income securities using the effective yield method.

A Portfolio may be subject to taxes imposed by non-US 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 transactions and forward currency contracts represent 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 translations 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.

32  Annual Report

(d) Options Transactions—For hedging and investment purposes, the 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 counter-party not perform under the contract. Put and call options purchased are accounted for in the same manner as portfolio securities and other assets.

The risk involved in writing an option is that the Portfolios bear the market risk of an unfavorable change in the price of the security or currency underlying the written option. A Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolios may not be able to enter into a closing transaction because of an illiquid market. Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. 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, 2016, transactions in options written were as follows:

Capital Allocator Opportunistic Strategies Portfolio

Written Options	Number of Contracts			Premiums
Options outstanding at beginning of year		—		$	—
Options written		2,330			148,879
Options exercised		(1,330	)		(93,131	)
Options expired		(1,000	)		(55,748	)
Options outstanding at end of year		—		$	—

During the year ended December 31, 2016, the Global Dynamic Multi Asset Portfolio did not trade in options.

(e) 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 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, 2016, the Capital Allocator Opportunistic Strategies Portfolio traded in swap agreements.

(f) Federal Income Taxes—The Fund’s policy is 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, 2016, 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
Capital Allocator Opportunistic Strategies	$(2,381,189)

Under current tax law, post-October capital losses or certain late-year ordinary losses, as defined by the

Annual Report  33

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, 2016, the following Portfolio elected to defer such losses as follows:

Portfolio	Post-October Capital Loss Deferral	Late-Year Ordinary Loss Deferral
Global Dynamic Multi Asset	$(197)	$(231,293)

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 (2013-2015; applicable only for Capital Allocator Opportunistic Strategies Portfolio), or expected to be taken in the Portfolios’ 2016 tax returns.

(g) Dividends and Distributions—Dividends from net investment income, if any, will be declared and paid annually. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the 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 and certain 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)
Capital Allocator Opportunistic Strategies	$	(248,098	)	$	123,208		$	124,890
Global Dynamic Multi Asset		(1,803	)		(83,415	)		85,218

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2016		2015		2016		2015
Capital Allocator Opportunistic Strategies*	$	2,135,068	$	1,373,879	$	—	$	3,378,738
Global Dynamic Multi Asset		256,695		N/A		291		N/A

* Capital Allocator Opportunistic Strategies Portfolio had return of capital distributions of $248,101 in 2016 and $80,451 in 2015.

At December 31, 2016, 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
Capital Allocator Opportunistic Strategies	$	—		$	(2,381,189	)	$	3,760,432
Global Dynamic Multi Asset		(55,028	)		324			(206,600	)

(h) Offering and Organizational 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. Organizational costs are expensed as incurred.

(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—Until August 15, 2016, the Portfolios imposed 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

34  Annual Report

Net Assets. As of August 15, 2016, redemption fees no longer apply to transactions in Portfolio shares.

(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 resulting from operations during the reporting period. Actual results could differ from those estimates.

(l) Net Asset Value—NAV per share for each class of each Portfolio is determined each day the NYSE is open for trading as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time).The Fund will not treat an intraday unscheduled disruption in NYSE trading as a closure of the NYSE, and will price its shares as of 4:00 p.m., if the particular disruption directly affects only the NYSE. 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.

3. Investment Management, Administration, Custody, 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
Capital Allocator Opportunistic Strategies	1.00%
Global Dynamic Multi Asset (a)	0.80

(a) From May 27, 2016 to June 28, 2016, percentage was 0.85%.

The Investment Manager has voluntarily agreed to reduce its fees and, if necessary, reimburse the Portfolios through May 1, 2017 if annualized operating expenses, exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Funds” (as defined in Form N-1A) and extraordinary expenses, and excluding shareholder redemption fees or other transaction fees, but including the management fee stated in the Management Agreement between the Investment Manager and the Fund, on behalf of the Portfolios, exceed the following percentages of the value of the Portfolios’ average daily net assets for the respective shares:

Portfolio	Institutional Shares			Open Shares
Capital Allocator Opportunistic Strategies		1.02	%		1.32	%
Global Dynamic Multi Asset		0.90			1.20

During the year ended December 31, 2016, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:

	Institutional Shares				Open Shares
	Management		Expenses		Management		Expenses
Portfolio	Fees Waived		Reimbursed		Fees Waived		Reimbursed
Capital Allocator Opportunistic Strategies		$251,620	$	—		$7,092		$6,973
Global Dynamic Multi Asset		121,509		96,479		723		3,287

The aforementioned waivers and/or reimbursements are not subject to recoupment by the Investment Manager.

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, 2016, State Street waived $7,813 of its fee for the Global Dynamic Multi Asset Portfolio.

Annual Report  35

State Street also serves as custodian for the Fund in accordance with a custodian agreement to provide certain custody services.

In December 2015, State Street announced that it had identified inconsistencies in the way in which clients were invoiced for out-of-pocket expenses from 1998 until 2015.The dollar amount difference between what was charged and what should have been charged, plus interest, will be paid back to the affected Portfolios in March 2017 as a reimbursement. This reimbursement was recognized as a change in accounting estimate and reflected as “Reimbursement of custodian fees” in the Statements of Operations. Pursuant to the expense limitations described in Note 3, certain Portfolios have experienced management fee waivers during the year ended December 31, 2016. Accordingly, the reimbursement of out-of-pocket expenses resulted in the reduction in the waiver of management fees for certain Portfolios for the year ended December 31, 2016.

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, 2016, BFDS waived $12,224 of its fee for the Global Dynamic Multi Asset Portfolio.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2016, 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: (1) an annual retainer of $190,000, (2) an additional annual fee of $20,000 to the lead Independent Director (an “Independent Director” is a Director who is not an “interested person” (as defined in the 1940 Act) of the Fund), and (3) an additional annual fee of $10,000 to the Audit Committee Chair. Effective January 1, 2017, the aggregate compensation for Independent Directors for the Lazard Fund Complex is comprised of: (1) an annual retainer of $210,000, (2) an additional annual fee of $30,000 to the lead Independent Director, and (3) an additional annual fee of $20,000 to the Audit Committee Chair. The Independent Directors may be paid additional compensation for participation on ad hoc committees or other work performed on behalf of the Board. The Independent 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. Independent Directors’ fees are allocated among the portfolios in the Lazard Fund Complex at a rate of $5,000 per portfolio with the remainder allocated based upon each portfolio’s proportionate share of combined net assets. The Statements of Operations show the Independent 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, 2016 were as follows:

36  Annual Report

Portfolio	Purchases		Sales
Capital Allocator Opportunistic Strategies	$	290,776,834	$	329,270,221
Global Dynamic Multi Asset		62,820,920		15,818,608

	US Treasury Securities
Portfolio	Purchases	Sales
Global Dynamic Multi Asset	$952,958	$249,966

For the year ended December 31, 2016, the Portfolios did not engage in any cross-trades in accordance with Rule 17a-7 under the 1940 Act, and no brokerage commissions were paid to affiliates of the Investment Manager or other affiliates of the Fund for portfolio transactions executed on behalf of the Fund.

6. Line of Credit

The Fund has a $50 million Line of Credit Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings was payable at the higher of the Federal Funds rate or One-Month LIBOR rate plus 1.00%, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.20% per annum fee 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, 2016, the following Portfolio had borrowings under the Agreement as follows:

				Number of
			Weighted	Days
	Average	Maximum	Average	Borrowings
	Daily Loan	Daily Loan	Interest	were
Portfolio	Balance*	Outstanding	Rate	Outstanding
Capital Allocator Opportunistic Strategies	$2,930,000	$4,230,000	1.44%	3

* 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. A Portfolio’s outstanding line of credit, if any, would be categorized as Level 2 (see Note 9).

7. Investment Risks

(a) Non-US Securities Risk—A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity.

(b) Emerging Market Risk—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. Investments in these countries may be subject to political, economic, legal, market and currency risks. The risks may include less protection of property rights and uncertain political and economic policies, the imposition of capital controls and/or foreign investment limitations by a country, nationalization of businesses and the imposition of sanctions by other countries, such as the US. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies.

(c) Foreign Currency Risk—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 Investment Manager does not intend to actively hedge the Portfolios’ foreign currency exposure.

(d) Underlying Funds Risk—Shares of ETFs and closed-end funds in which the Portfolios invest 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

Annual Report  37

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. A 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 Portfolios’ 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.

A 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 U.S. Securities and Exchange Commission (the “SEC”) on which the Portfolio may rely or an exemption is available.

(e) 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. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening.

Prices of bonds and other debt securities tend to move inversely with changes in interest rates. Typically, a rise in rates will adversely affect debt securities and, accordingly, will cause the value of a Portfolio’s investments in these securities to decline. Interest rate risk is usually greater for fixed-income securities with longer maturities or durations. A rise in interest rates (or the expectation of a rise in interest rates) may result in periods of volatility, decreased liquidity and increased redemptions, and, as a result, the Portfolio may have to liquidate portfolio securities at disadvantageous prices. Risks associated with rising interest rates are heightened given that interest rates in the US and other countries are at or near historic lows.

A Portfolio’s 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 a Portfolio’s 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 prices of high yield securities can fall in response to negative news about the issuer or its industry, or the economy in general to a greater extent than those of higher-rated securities. 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.

Some fixed-income securities may give the issuer the option to call, or redeem, the securities before their maturity. If securities held by a Portfolio are called during a time of declining interest rates (which is typically the case when issuers exercise options to call outstanding securities), the Portfolio may have to reinvest the proceeds in an investment offering a lower yield (and the Portfolio may not fully benefit

38  Annual Report

from any increase in the value of its portfolio holdings as a result of declining interest rates).

(f) Derivatives Risk—Forward currency contracts, options, futures contracts and credit default swap agreements and other derivatives transactions, including those entered into for hedging purposes (i.e., seeking to protect Portfolio investments), may increase volatility, reduce returns, limit gains or magnify losses, perhaps substantially, particularly since most derivatives have a leverage component that provides investment exposure in excess of the amount invested. Forward currency contracts, swap agreements 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 in which a Portfolio may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related currency, interest rate, security or other reference asset. As such, a small investment could have a potentially large impact on the Portfolio’s performance. In fact, many derivatives may be subject to greater risks than those associated with investing directly in the underlying or other reference asset. Derivatives transactions incur costs, either explicitly or implicitly, which reduce returns, and costs of engaging in such transactions may outweigh any gains or any losses averted from hedging activities. Successful use of derivatives, whether for hedging or for other investment purposes, is subject to the Investment Manager’s ability to predict correctly movements in the direction of the relevant reference asset or market and, for hedging activities, correlation of the derivative instruments used with the investments seeking to be hedged. Use of derivatives transactions, even if entered into for hedging purposes, may cause a 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 assets and liabilities

• 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 transfers into or out of the current assigned level within the hierarchy.

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

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2016:

Annual Report  39

	Unadjusted
	Quoted Prices in
	Active Markets			Significant Other			Significant
	for Identical			Observable			Unobservable
	Assets and Liabilities			Inputs			Inputs		Balance as of
Description	(Level 1)			(Level 2)			(Level 3)		December 31, 2016
Capital Allocator Opportunistic Strategies Portfolio
Assets:
Exchange-Traded Notes		$	2,716,175	$	—		$	—	$	2,716,175
Exchange-Traded Funds			80,290,803		—			—		80,290,803
Closed-End Management Investment Companies			13,685,535		—			—		13,685,535
Short-Term Investment			44,965,568		—			—		44,965,568
Total		$	141,658,081	$	—		$	—	$	141,658,081
Liabilities:
Other Financial Instruments†
Total Return Swap Agreements		$	—	$	(70,696	)	$	—	$	(70,696	)
Global Dynamic Multi Asset Portfolio
Assets:
Common Stocks*
Australia		$	—	$	1,197,363		$	—	$	1,197,363
Belgium			260,964		21,638			—		282,602
Denmark			216,876		130,129			—		347,005
Finland			225,243		63,267			—		288,510
France			—		611,810			—		611,810
Germany			335,776		561,315			—		897,091
Hong Kong			115,383		684,573			—		799,956
Ireland			287,491		16,008			—		303,499
Israel			56,864		154,747			—		211,611
Italy			—		70,913			—		70,913
Japan			578,391		2,664,430			—		3,242,821
Malta			—		31,686			—		31,686
Netherlands			313,832		237,149			—		550,981
New Zealand			—		25,055			—		25,055
Norway			—		186,060			—		186,060
Portugal			—		150,841			—		150,841
Singapore			—		141,091			—		141,091
South Africa			—		10,424			—		10,424
Spain			—		377,368			—		377,368
Sweden			198,968		157,837			—		356,805
United Kingdom			1,172,545		1,624,738			—		2,797,283
United States			21,519,664		19,252			—		21,538,916
Other			2,409,884		—			—		2,409,884
Corporate Bonds*			—		3,918,444			—		3,918,444
Foreign Government Obligations*			—		4,974,379			—		4,974,379
Quasi Government Bonds*			—		521,720			—		521,720
Supranationals			—		604,047			—		604,047
US Municipal Bonds			—		227,464			—		227,464
US Treasury Securities			—		684,226			—		684,226
Short-Term Investment			1,016,533		—			—		1,016,533
Other Financial Instruments†
Forward Currency Contracts			—		186,447			—		186,447
Total		$	28,708,414	$	20,254,421		$	—	$	48,962,835
Liabilities:
Other Financial Instruments†
Forward Currency Contracts		$	—	$	(283,910	)	$	—	$	(283,910	)

* Please refer to Portfolios of Investments (pages 11 through 23) and Notes to Portfolios of Investments (page 25) for portfolio holdings by country and industry.

† Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation (depreciation).

40  Annual Report

In connection with the implementation of fair value pricing procedures with respect to non-US securities (see Note 2(a)), certain equity securities in the Global Dynamic Multi Asset Portfolio can transfer from Level 1 to Level 2 as a result of fair value pricing procedures and would revert to Level 1 when the fair value pricing procedures are no longer used. Accordingly, a significant portion of the Portfolio’s 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, 2016.

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 a call or put option to seek to realize, through the receipt of premiums or 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.

Capital Allocator Opportunistic Strategies Portfolio

During the year ended December 31, 2016, the approximate average monthly notional exposure for derivative instruments was as follows:

Forward currency contracts	$	13,700,000	*
Purchased options	$	200,000	†
Total return swap agreements	$	11,200,000

*	Represents average monthly notional exposure for the six months the derivative instrument was open during the period.
†	Represents average monthly notional exposure for the four months the derivative instrument was open during the period.

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2016:

	Fair Value
Liability Derivatives
Equity Risk:
Gross unrealized depreciation on swap agreements	$	70,696

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2016 was:

	Amount
Realized Gain (Loss) on Derivatives
Equity Risk:
Net realized gain (loss) on investments	$	(513,384	)
Net realized gain (loss) on written options	$	94,300
Net realized gain (loss) on swap agreements	$	(406,462	)
Foreign Exchange Risk:
Net realized gain (loss) on foreign currency transactions and forward currency contracts	$	(791,284	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Equity Risk:
Net change in unrealized appreciation (depreciation) on swap agreements	$	85,642
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on foreign currency translations and forward currency contracts	$	300,167

Global Dynamic Multi Asset Portfolio

During the year ended December 31, 2016, the approximate average monthly notional exposure for derivative instruments was as follows:

Forward currency contracts $11,400,000*

* Represents average monthly notional exposure for the five months the derivative instrument was open during the period.

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2016:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	186,447
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	283,910

Annual Report  41

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2016 was:

	Amount
Realized Gain (Loss) on Derivatives
Foreign Exchange Risk:
Net realized gain (loss) on foreign currency transactions and forward currency contracts	$	(442	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on foreign currency translations and forward currency contracts	$	(97,463	)

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

As of December 31, 2016, Capital Allocator Opportunistic Strategies and Global Dynamic Multi Asset 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.

The required information for the affected Portfolios are presented in the below table, as of December 31, 2016:

Capital Allocator Opportunistic Strategies Portfolio

					Net Amounts of
			Gross Amounts Offset		Liabilities Presented
	Gross Amounts of		in the Statement of		in the Statement of
Description	Recognized Liabilities		Assets and Liabilities		Assets and Liabilities
Total Return Swap Agreements		$70,696		$    —		$70,696

			Amounts Not Offset in the
			Statement of Assets and Liabilities
	Net Amounts of
	Liabilities Presented						Net Amounts
	in the Statement of		Financial		Collateral		of Derivative
Counterparty	Assets and Liabilities		Instruments		Pledged (a)		Liabilities
Goldman Sachs International		$70,696		$    —		$(70,696)		$    —

(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.

42  Annual Report

Global Dynamic Multi Asset Portfolio

					Net Amounts of
			Gross Amounts Offset		Assets Presented
	Gross Amounts of		in the Statement of		in the Statement of
Description	Recognized Assets		Assets and Liabilities		Assets and Liabilities
Forward Currency Contracts		$186,447		$    —		$186,447

				Amounts Not Offset in the
				Statement of Assets and Liabilities
	Net Amounts of
	Assets Presented								Net Amounts
	in the Statement of			Financial			Collateral		of Derivative
Counterparty	Assets and Liabilities			Instruments			Received		Assets
Citibank NA		$	114,278	$	(44,581	)	$	—	$	69,697
HSBC Bank USA NA			55,910		(55,910	)		—		—
JPMorgan Chase Bank NA			8,804		(1,788	)		—		7,016
State Street Bank and Trust Co.			7,455		(2,934	)		—		4,521
Total		$	186,447	$	(105,213	)	$	—	$	81,234

					Net Amounts of
			Gross Amounts Offset		Liabilities Presented
	Gross Amounts of		in the Statement of		in the Statement of
Description	Recognized Liabilities		Assets and Liabilities		Assets and Liabilities
Forward Currency Contracts		$283,910		$    —		$283,910

				Amounts Not Offset in the
				Statement of Assets and Liabilities
	Net Amounts of
	Liabilities Presented								Net Amounts
	in the Statement of			Financial			Collateral		of Derivative
Counterparty	Assets and Liabilities			Instruments			Pledged		Liabilities
Citibank NA		$	44,581	$	(44,581	)	$	—	$	—
HSBC Bank USA NA			234,607		(55,910	)		—		178,697
JPMorgan Chase Bank NA			1,788		(1,788	)		—		—
State Street Bank and Trust Co.			2,934		(2,934	)		—		—
Total		$	283,910	$	(105,213	)	$	—	$	178,697

11. Recent Accounting Pronouncements

In October 2016, the SEC adopted new rules and amended existing rules (together, “final rules”) intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017. Management is currently evaluating the impact that

the adoption of the amendments to Regulation S-X will have on the Fund’s financial statements and related disclosures.

12. 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  43

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 and Lazard Global Dynamic Multi Asset Portfolio:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Lazard Capital Allocator Opportunistic Strategies Portfolio, one of the portfolios constituting The Lazard Funds, Inc. (the “Fund”) as of December 31, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended. We have also audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Lazard Global Dynamic Multi Asset Portfolio, one of the portfolios constituting the Fund, (collectively with the portfolio mentioned above, the “Portfolios”), as of December 31, 2016, and the related statements of operations and changes in net assets and the financial highlights for the period from May 27, 2016 (commencement of operations) through December 31, 2016. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the 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, 2016, 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 Capital Allocator Opportunistic Strategies Portfolio of The Lazard Funds, Inc. as of December 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended, and the financial position of Lazard Global Dynamic Multi Asset Portfolio of The Lazard Funds, Inc. as of December 31, 2016, the results of its operations, the changes in its net assets, and the financial highlights for the period from May 27, 2016 (commencement of operations) through December 31, 2016, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP
New York, New York
February 27, 2017

44  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 (63)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012)
		University of California, Berkeley School of Law, Lecturer (Spring 2017)
		Cornell Law School, Visiting Professor of Practice (2015 – 2016); previously, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)
Kenneth S. Davidson (71)	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 (54)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
		TIAA-CREF Funds (68 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 (45)	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. (72)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		Resource Americas, Inc., a real estate asset management company, Director (2016 – present)
		O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (69)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

Annual Report  45

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 (56)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (56)	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, 2017, 40 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.

46  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 (44)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Christopher Snively (32)	Chief Financial Officer (March 2016)	Senior Vice President of the Investment Manager (since November 2015)
		Assurance Manager at PricewaterhouseCoopers LLP (2008 – November 2015)
Stephen St. Clair (58)	Treasurer (May 2003)	Vice President of the Investment Manager
Mark R. Anderson (46)	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 (41)	Assistant Secretary (February 2009)	Director (since February 2016, previously Senior Vice President), and Director of Legal Affairs (since July 2015) of the Investment Manager
Shari L. Soloway (35)	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)
Cesar A. Trelles (42)	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  47

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

Tax Information

Year Ended December 31, 2016

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2016:

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

Portfolio	Percentage
Capital Allocator Opportunistic Strategies		46.73	%
Global Dynamic Multi Asset		69.18

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
Capital Allocator Opportunistic Strategies		44.21	%
Global Dynamic Multi Asset		22.05

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 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.

48  Annual Report

NOTES

Annual Report  49

NOTES

50  Annual Report

NOTES

Annual Report  51

NOTES

52  Annual Report

NOTES

Annual Report  53

NOTES

54  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

LZDPS030

Lazard Funds Annual Report

December 31, 2016

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

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 and credit history • Assets and income • Account transactions 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 and applicable state laws. These measures include computer safeguards and secured files and buildings.
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 may 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.

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
9	Performance Overviews
19	Information About Your Portfolio’s Expenses
22	Portfolio Holdings Presented by Sector and Region
23	Portfolios of Investments
23	Lazard Emerging Markets Equity Portfolio
25	Lazard Emerging Markets Core Equity Portfolio
27	Lazard Developing Markets Equity Portfolio
29	Lazard Emerging Markets Equity Advantage Portfolio
33	Lazard Emerging Markets Equity Blend Portfolio
36	Lazard Emerging Markets Multi Asset Portfolio
49	Lazard Emerging Markets Debt Portfolio
60	Lazard Explorer Total Return Portfolio
68	Lazard Emerging Markets Income Portfolio
71	Notes to Portfolios of Investments
76	Statements of Assets and Liabilities
78	Statements of Operations
80	Statements of Changes in Net Assets
84	Financial Highlights
95	Notes to Financial Statements
119	Report of Independent Registered Public Accounting Firm
120	Board of Directors and Officers Information
123	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 each Portfolio’s summary prospectus contain the investment objectives, risks, charges, expenses and other information about each Portfolio of the Fund, which are not detailed in this report.

Distributed by Lazard Asset Management Securities LLC.

Annual Report   1

The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

In 2016, global equity markets generally performed well despite significant bouts of volatility caused by unexpected economic and political events. In Europe, returns were muted as the United Kingdom’s June vote to leave the European Union weighed on the pound sterling and UK assets. In December, Prime Minister Matteo Renzi’s resounding defeat in the Italian referendum on constitutional reform and his subsequent resignation added to uncertainty in the region. A surprise outcome to the US presidential election caused US stocks to rally sharply at year-end in anticipation of lower corporate taxes and regulatory reform. Meanwhile, emerging markets equities snapped their negative streak and ended the year firmly higher, primarily as the price of oil and other commodities stabilized.

In the first half of 2016, yields across most global bond markets fell due to uneven news flow and seesawing risk sentiment. However, yields increased toward the end of the year in response to inflationary pressures, higher oil prices, and strong economic data. The US Federal Reserve delivered its long-awaited rate hike in December, and is widely expected to deliver additional hikes in 2017. In contrast, European monetary policy is expected to remain loose, based on announced asset purchase plans from the European Central Bank.

The US dollar continued to strengthen against other major currencies in 2016. The Japanese yen appreciated even after the Bank of Japan adopted a negative interest rate policy early in the year, but weakened considerably in November and December due to Japan’s widening interest rate differential with the United States. Over the year, the biggest currency laggards included the Mexican peso, which was hurt by Donald Trump’s election victory, and the Turkish lira, which was weighed down by a surprise coup attempt in Turkey.

At Lazard Asset Management, we strive to identify ways to help our clients achieve their investment goals. As such, we launched two mutual funds in 2016 with characteristics that we believe can help investors navigate a changing financial landscape.

As always, we appreciate your continued confidence in our investment management capabilities and we 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

Following a year of heightened deflationary pressures and concerns over the sustainability of world economic activity, equities in the developing world were able to rebound in 2016. The improvement was primarily caused by some adjustments in political policy in several countries, most prominently Brazil and Russia, coupled with a stabilizing trend in commodity prices. The MSCI Emerging Markets^® Index (the “EM Index”) finished the year 11.2% higher with increasing share prices across all regions. However, in contrast to most of the last three years, Asian emerging markets recorded the worst regional return, rising by just over 6%. Latin American markets were dominated by returns in Brazil, and rose by 31%, while eastern European markets were aided by a strong rebound in Russia and increased by almost 38%. The year began with unsuccessful efforts by the People’s Bank of China (PBoC) to significantly devalue the renminbi, which shook global markets. Investors witnessed several commodities’ prices bottoming in the first quarter, and then prices subsequently increased as capacity was removed. The Brexit vote, which resulted in a requirement that the United Kingdom leave the European Union in the near future, also surprised investors, but did not, up to this point, destabilize emerging markets. An unsuccessful coup in Turkey, caused market disruption as President Recep Tayyip Erdogan made efforts to remove members of the Gulen movement from government office. In November, the election of Donald Trump as US president had the effects of increasing confidence in US economic activity and the US dollar and again pressuring several developing markets currencies, especially the Mexican peso and Chinese renminbi.

In Asian markets, the election of President Rodrigo Duterte in the Philippines ushered in unusual law and order as well as defense policies and rhetoric resulting in poor returns. The scandal involving 1MDB, a government run strategic development company, held back equity returns in Malaysia. Indian Prime Minister Narendra Modi’s decision to prohibit larger currency bills as a means of decreasing the informal economy and raise tax receipts also caused some market disruption. Chinese company shares were adversely affected by the devaluation efforts of the PBoC but also suffered from ongoing economic lethargy and a

tightening in liquidity. Several Asian markets, however, performed well. Indonesian company stocks rebounded strongly after considerable weakness in 2015. The Taiwanese market benefited especially from technology companies’ increased demand for sophisticated integrated circuits. Despite King Bhumibol Adulyadej’s death, Thai company shares rebounded on signs of improving economic activity.

The Mexican market suffered greatly during 2016 as US President-elect Donald Trump threatened to renegotiate the NAFTA trade agreement. Elsewhere in Latin America, markets finished considerably higher based on a commodity price recovery and improved political trends. In Peru, market-friendly candidate Pedro Pablo Kuczynski narrowly won the presidency. The biggest change, however, happened in Brazil. A telephone conversation between President Dilma Rousseff and former President Lula, allegedly protecting him from an investigation, was leaked in March and set in motion her ultimate impeachment. This had the effect of markedly strengthening the real, as well as share prices, as investors became much less pessimistic about the economic trends. As a result, Brazilian equities ended the year 66% higher, outperforming all other emerging markets.

Returns were more mixed across eastern European, Middle East, and African markets. Lack of policy direction in Greece resulted in more weakness there. A decision to completely float the Egyptian pound caused a near 100% currency devaluation and considerable market weakness in Egypt. The unsuccessful coup attempt in Turkey and subsequent political and economic turbulence resulted in another weak year for that market. In South Africa, an apparent dispute between President Jacob Zuma and Finance Minister Pravin Gordhan over corruption weakened equity prices in the country until the release of a report in November, which found serious evidence of graft in Zuma’s government. The market then rallied on the higher likelihood that Zuma will not run again. Russian company shares rose by more than 54% in the year, aided by strengthening crude oil prices, conservative fiscal policies, and the possibility of improving relations with the United States following the election of Donald Trump.

Annual Report   3

By sector, materials and energy stocks recorded strong returns, outperforming the EM Index. In contrast, the consumer discretionary, consumer staples, health care, and real estate performed particularly poorly and underperformed the EM Index.

Lazard Emerging Markets Equity Portfolio

For the year ended December 31, 2016, the Lazard Emerging Markets Equity Portfolio’s Institutional Shares posted a total return of 20.52%, while Open Shares posted a total return of 20.17%, and R6 Shares posted a total return of 20.52%, as compared with the 11.19% return for the EM Index.

During the period, shares of Sberbank, a Russian bank, rose on the back of continued strong operating performance and after management provided upbeat guidance for 2017. With improving loan growth and increased deposits, management has projected return of equity in the high teens. Banco do Brasil, a Brazilian bank, benefited from an improving return outlook with rising margins and healthier capital ratios. Taiwan Semiconductor Manufacturing, a Taiwanese semiconductor manufacturer, benefited from positive trends in the semiconductor industry as well as from reports of stronger-than-expected iPhone sales. Shares of Samsung Electronics, a Korean manufacturer of electronic goods, also rose with a display division turnaround. Stock selection within the financials, industrials, and consumer discretionary sectors, and within China, Korea, and Russia helped performance. A higher-than-benchmark exposure to Russia and Brazil, and a lower-than-benchmark exposure to China, added value.

In contrast, shares of Baidu, a Chinese search engine company, declined after management guided down expectations for the fourth quarter amid continued weakness in one of its areas of business after a government clampdown. Shares of PLDT, a Philippine telecom services company, fell due to expectations for further weakness as the company pursues its three-year turnaround strategy. Bharat Heavy Electricals, an Indian manufacturer of power plant equipment, posted poor earnings for the third quarter of 2016 on the back of increased competition. Shares of Hanwha Life Insurance, a Korean insurance company, fell on expectations for a continued environment of low interest rates in Korea.

Lazard Emerging Markets Core Equity Portfolio

For the year ended December 31, 2016, the Lazard Emerging Markets Core Equity Portfolio’s Institutional Shares posted a total return of 3.47%, while Open Shares posted a total return of 3.17%, as compared with the 11.19% return for the EM Index.

During the year, Korea-based Samsung Electronics performed well after strong third quarter results reaffirmed an improving growth outlook driven by its strong semiconductor and display businesses, while growing optimism due to a shareholder return policy and potential group restructuring also helped. Taiwan Semiconductor Manufacturing, the world’s largest contract chip manufacturer, outperformed as it reported strong sales and reiterated its 2016 full-year revenue growth target. Shares of LUKOIL, a Russian integrated oil company, increased as its third quarter results showed better-than-expected free cash flow and that their newly commissioned Caspian oil field is performing ahead of expectations. Largan Precision, a Taiwanese supplier of camera lens modules for smartphones, rose on its improved growth outlook for higher spec camera lens and dual camera adoption. Stock selection in Indonesia and in the information technology sector was positive for performance.

In contrast, shares of CT Environmental, a Chinese water utility company, came under pressure following a report issued by a short-seller questioning the company’s financial performance and management’s integrity. We exited the position in the fourth quarter. Lenovo, a Chinese technology company that we sold earlier in the year, underperformed due to weaker consumer demand and delayed replacements for PCs. Ping An Insurance, the second largest insurer in China, declined on a pick-up in volatility in Chinese equities and a weakening renminbi. Shares of Vipshop, a flash sales e-commerce retailer in China, ended lower for the year as slower new customer acquisition in the third quarter led to concerns over the company’s ability to optimize user growth and quality. Stock selection in China and Brazil, as well as in the consumer discretionary, consumer staples, financials, and industrials sectors, hurt performance. Additionally, underweight exposures to Brazil and South Africa, along with overweight exposures to Mexico and Turkey, weighed on returns.

4  Annual Report

Lazard Developing Markets Equity Portfolio

For the year ended December 31, 2016, the Lazard Developing Markets Equity Portfolio’s Institutional Shares posted a total return of 14.81%, while Open Shares posted a total return of 14.31%, as compared with the 11.19% return for the EM Index.

During the period, Sberbank, the largest bank in Russia, outperformed after reporting higher margins and lower credit costs. Credicorp, the largest commercial bank in Peru, did well on the back of strong credit growth and stable asset quality. First Quantum Minerals, a Canadian copper miner with assets in Zambia, rose after the company sold one of its mines, and improved its balance sheet. Novatek, an independent Russian gas producer, outperformed on strong results, higher oil prices, and positive commentary regarding progress on its Yamal liquefied natural gas project. Largan Precision, a Taiwanese lens manufacturer, did well on expanding adoption of dual camera technology in smartphones. Stock selection in the energy, financials, materials, and information technology sectors, as well as in Russia, Brazil, Turkey, South Africa, China, and Taiwan helped performance. A lower-than-index exposure to the consumer staples, telecommunication services, real estate, and utilities sectors, as well as to Malaysia, and a higher-than-index exposure to the energy sector, as well as to Colombia, Peru, and Russia, added value.

In contrast, Aurobindo Pharma, an Indian generics manufacturer, underperformed on the back of an US Food & Drug Administration (FDA) 483 letter (a form used by the FDA to document and communicate concerns discovered during inspections) issued on one of its facilities, and concerns about drug pricing. CJ CGV, a cinema operator based in Korea, underperformed on weaker earnings due to lackluster box office sales. China State Construction International Holdings, a Chinese building and engineering services firm, lagged as strong orders failed to generate the expected sales and earnings growth due to project delays. Vipshop Holdings, a flash sales e-commerce retailer in China, underperformed on lower-than-expected new user growth reported in the back half of the year. Hansae, a Korean apparel manufacturer, underperformed on weak US retail sales. We sold this

stock during the year. Stock selection in the consumer discretionary, health care, and industrials sectors, as well as in Korea and India, detracted value. A lower-than-index exposure to the information technology sector, as well as to Brazil, Taiwan, Thailand, and South Africa, and a higher-than-index exposure to the health care and industrials sectors, as well as to India and Turkey, hurt performance.

Lazard Emerging Markets Equity Advantage Portfolio

For the year ended December 31, 2016, the Lazard Emerging Markets Equity Advantage Portfolio’s Institutional Shares posted a total return of 9.83%, while Open Shares posted a total return of 9.51%, as compared with the 11.19% return for the EM Index.

Sector allocations marginally contributed to performance, but were more than offset by stock selection. The overweight to materials and information technology sectors and underweight to consumer discretionary and consumer staples sectors all benefited the Portfolio, partially offset by the overweight to the industrials and utilities sectors. Stock selection was weak, outperforming the benchmark in only four out of eleven sectors. Strength in the information technology and consumer staples sectors was more than offset by weakness in the real estate, industrials and energy sectors.

Stocks that provided the largest benefit to the Portfolio included Sberbank, which benefited from the strength in the Russian market and upward guidance from management. Strong loan and deposit growth also benefited the stock. MOL Hungarian Oil and Gas rallied for the year as the improvement in energy prices benefited the stock. Company management has aggressively managed their capital spending and production and has diversified their business mix by investing in higher-margin chemicals and retail businesses. Taiwan Semiconductor Manufacturing rallied for the year as their semi-conductor technology continues to lead the industry and the company continues to see improvement in their margins. Even with smartphone growth in the mid-single digits, the chip content in each phone continues to expand at a faster rate, feeding into their growth story.

Annual Report  5

Detractors included Tipco Asphalt, as a decline in asphalt prices, as well as a curtailment in government infrastructure spending, caused a sell-off in the stock. We sold our position in the company during the year. China Overseas Land & Investment struggled during the year as concerns over their growth and strategic direction surfaced as the company embarked on several acquisitions. The surprise resignation of the Chairman also concerned investors. We continue to rate the stock highly, especially given its price/earnings. Gentera, the Mexican regional bank holding company, sold off with the market after the US elections. Concerns over an economic slowdown and lessening asset quality weighed on the sector. We continue to find Gentera well-positioned with a stronger financial position than many of its competitors.

Model performance was mixed for most of the year with valuation measures performing well throughout most of the period. Sentiment and growth measures were inconsistent throughout most of the year reflecting investor uncertainty over the macro environment. Quality measures recovered in the fourth quarter and provided a positive source of return.

Lazard Emerging Markets Equity Blend Portfolio

For the year ended December 31, 2016, the Lazard Emerging Markets Equity Blend Portfolio’s Institutional Shares posted a total return of 13.12%, while Open Shares posted a total return of 12.74%, as compared with the 11.19% return for the EM Index.

Changes made to the market forecast during 2016 reflected a consideration of many factors, including monetary policies of central banks around the globe; global macro data readings in China (particularly the Purchasing Managers Index, which measures economic activity), the United States, the euro zone, and Japan; fiscal policy in developed and emerging markets; geopolitical events and risks including elections and referenda; and equity and fixed income valuations, along with other data.

For the full year 2016, stock selection in the financials, consumer staples, and real estate sectors and lower-than-index exposures to the consumer staples and real estate sectors added value, as did stock selection

in Russia, Korea, China, and Malaysia, higher-than-index exposure to Russia and lower-than-index exposures to Korea and Malaysia. In contrast, stock selection in the energy and consumer discretionary sectors detracted from performance, as did stock selection in Brazil, Mexico, and Taiwan, lower-than-index exposure to Brazil and higher-than-index exposure to Mexico. Our exposure to small caps over the period also detracted. The Portfolio does not use derivatives.

Lazard Emerging Markets Multi Asset Portfolio

For the year ended December 31, 2016, the Lazard Emerging Markets Multi Asset Portfolio’s Institutional Shares posted a total return of 8.91%, while Open Shares posted a total return of 8.58%, as compared with the 11.19% return for the EM Index.

Changes made to the market forecast during 2016 reflected a consideration of many factors, including monetary policies of central banks around the globe; global macro data readings in China (particularly the Purchasing Managers Index, which measures economic activity), the United States, the euro zone, and Japan; fiscal policy in developed and emerging markets; geopolitical events and risks including elections and referenda; and equity and fixed income valuations, along with other data.

For the full year of 2016, stock selection in the financials, information technology, real estate, and industrials sectors, higher-than-index exposure to information technology and lower-than-index exposure to real estate added value, as did stock selection in Russia, Korea, and Malaysia, higher-than-index exposures to Russian equities and lower-than-index exposure to Korean and Malaysian equities. Exposure to the local debt of South Africa and the local currencies of Russia, South Africa, and Uruguay—implemented via derivative instruments—also contributed, as did exposures to the external debt of Argentina, Venezuela, and Slovenia and to the local debt of Brazil. In contrast, stock selection in the consumer discretionary and energy sectors and lower-than-index exposure to the materials sector detracted from performance, as did stock selection in Brazil, Mexico, and Taiwan, lower-than-index exposure to Brazilian equities and higher-than-index exposure to Mexican equi-

6  Annual Report

ties, exposure to the local currencies of Mexico, Turkey, and Malaysia—implemented via derivative instruments—and external debt positions in Turkey and Belize. Our exposure to small cap equities also detracted for the year.

Lazard Emerging Markets Debt Portfolio

For the year ended December 31, 2016, the Lazard Emerging Markets Debt Portfolio’s Institutional Shares posted a total return of 8.50%, while Open Shares posted a total return of 8.13%, as compared with the 10.16% return for the blended 50% JPMorgan EMBI Global Diversified^® Index/50% JPMorgan GBI-EM Global Diversified^® Index (the “Global Diversified Index”). The R6 Shares posted a total return of -3.06% for the period since inception on July 28, 2016 through December 31, 2016, as compared with the -2.50% return for the Global Diversified Index for the same period.

From a top-down perspective, asset allocation within the Portfolio detracted from relative performance. The Portfolio was overweight external debt during the first quarter, when local debt outperformed external debt by nearly 6 percentage points, representing its largest margin of quarterly outperformance over external debt since the second quarter of 2007. Throughout the rest of the year, we maintained a more neutral asset allocation in the Portfolio.

Bottom-up security selection also detracted from relative performance, primarily within the Portfolio’s local currency allocation. The biggest detractor within this allocation was an overweight duration position in Indonesia. This position was primarily held late in the year and weighed on returns as Indonesian rates underperformed amid the sharp increase in US Treasury yields during the fourth quarter. Within the Portfolio’s external debt allocation, an overweight position in El Salvador detracted as the country’s debt underperformed due to concerns that tighter US immigration policy will reduce remittances.

Leading contributors to relative returns included overweight positions in high yielding credits and underweight positions in low yielding investment grade credits. For most of the year, we maintained over-

weight positions in the biggest outperformers among emerging markets high-yield issuers, including Venezuela, Ghana, Ecuador, and Argentina, and underweights in low yielding underperformers such as China, Poland, the Philippines, and Lithuania.

The Portfolio management team uses currency forward contracts, both opportunistically, for direct currency exposure, and defensively, for hedging purposes. During the year, the use of currency forwards detracted from the Portfolio’s relative performance.

Lazard Explorer Total Return Portfolio

For the year ended December 31, 2016, the Lazard Explorer Total Return Portfolio’s Institutional Shares posted a total return of 7.23%, while Open Shares posted a total return of 6.83%, as compared with the 10.16% return for the Global Diversified Index.

Throughout the year, we were highly tactical in adjusting the Portfolio’s net exposure, which ranged from approximately 50% to 95%. In general, the Portfolio’s net long exposure was focused on hard currency sovereign debt, which contributed positively to performance both on an absolute basis and relative to the blended index. In absolute terms, the Portfolio’s performance benefited from its position in Argentina, which was also its largest exposure. Argentina’s debt performed well due to expectations of the country’s return to the capital markets and its settlement with holdout creditors. A long position in Venezuela, which was the best-performing sovereign credit issuer for the year, also contributed meaningfully to performance. The Portfolio’s net long position in emerging markets corporates was also beneficial.

Positive performance from the Portfolio’s external debt allocation was partially offset by relative value positioning in local currencies. Specifically, a long position in the Mexican peso, held primarily against the Chilean peso, detracted from absolute returns. The Mexican peso significantly underperformed throughout the year owing to a combination of technical factors, slowing domestic growth, and the increased likelihood of protectionist US trade policy. We eliminated the position in September, in advance of the US

Annual Report  7

presidential election. To a lesser extent, a long position in the Polish zloty, held against the euro on valuation grounds, detracted early in the year following Standard & Poor’s unexpected downgrade of Poland’s credit rating.

The Portfolio management team uses currency forwards, both opportunistically, for direct currency exposure, and defensively, for hedging purposes; credit default swaps; and interest rate swaps. For the year, the use of derivatives detracted from the Portfolio’s performance.

Lazard Emerging Markets Income Portfolio

For the year ended December 31, 2016, the Lazard Emerging Markets Income Portfolio’s Institutional Shares posted a total return of 2.82%, while Open Shares posted a total return of 2.52%, as compared with the 3.54% return for the JPMorgan Emerging Local Markets^® Index Plus.

The Portfolio’s best relative performance for the period was earned in emerging Europe, where active currency management along with country and security selection aided returns. An overweight to Russia predicated on its high yield, current account surplus, shrinking capital outflows, disinflation and emergence from recession added 46 basis points (bps), while

active management of Polish exposure (opportunistic security selection in local debt and nimble currency management) added 45 bps. Elsewhere, security selection in South African, Romanian, and Indonesian local debt—along with active currency management in these markets—added 45 bps in aggregate. Out-of-index exposure to Kazakhstan and Argentina helped as both markets benefited from high yield along with currency stability in the former. Finally, an underweight exposure to China added 14 bps.

Conversely, Mexico and Turkey were the largest detractors from relative performance. Overweight Mexico (foreign exchange and government debt) detracted as the peso lagged due to concerns over Donald Trump’s rhetoric and its convenient use as a risk hedge due to ample liquidity and low interest rates. Turkish exposure cost 36 bps. Active currency management and security selection detracted as bonds weakened due to interest rate sensitivity, loosening fiscal policy, and elevated political risk. An overweight to Malaysia detracted due to fourth quarter weakness spurred by sensitivity to US dollar gains. An overweight to Hungary detracted relative to the benchmark. However, this loss was more than offset by other regional underweights (e.g., Czech and Romanian).

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. Return for 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, 2016; 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, 2016

	One Year		Five Years		Ten Years		Since Inception		†
Institutional Shares**		20.52%		2.28%		2.90%		6.55%
Open Shares**		20.17%		2.00%		2.59%		6.26%
R6 Shares**		20.52%		N/A		N/A		-2.16%
EM Index		11.19%		1.28%		1.84%		4.86%
								(Institutional Shares)
								5.38%
								(Open Shares)
								-2.87%
								(R6 Shares)

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived 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 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, 2016

	One Year		Since Inception		†
Institutional Shares**		3.47%		-3.26%
Open Shares**		3.17%		-3.60%
EM Index		11.19%		-3.32%

*	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, 2016

	One Year		Five Years		Since Inception		†
Institutional Shares**		14.81%		0.22%		3.33%
Open Shares**		14.31%		-0.12%		3.01%
EM Index		11.19%		1.28%		3.57%

*	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*

 

Average Annual Total Returns*

Periods Ended December 31, 2016

	One Year		Since Inception		†
Institutional Shares**		9.83%		-6.33%
Open Shares**		9.51%		-6.62%
EM Index		11.19%		-6.76%

*	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 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, 2016

	One Year	Five Years	Since Inception	†
Institutional Shares**	13.12%	1.05%	0.67%
Open Shares**	12.74%	0.80%	0.40%
EM Index	11.19%	1.28%	1.36%

*	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 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, 2016

	One Year		Five Years		Since Inception	†
Institutional Shares**		8.91%		0.21%	-2.37%
Open Shares**		8.58%		-0.18%	-2.67%
EM Index		11.19%		1.28%	-2.75%

*	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, 2016

	One Year		Five Years		Since Inception	†
Institutional Shares**		8.50%		1.43%	1.50%
Open Shares**		8.13%		1.15%	1.21%
R6 Shares**		N/A		N/A	-3.06%
JPMorgan EMBI Global Diversified Index		10.15%		5.91%	6.38%
					(Institutional and
					Open Shares)
					-1.82%
					(R6 Shares)
JPMorgan GBI-EM Global Diversified Index		9.94%		-1.29%	-1.39%
					(Institutional and
					Open Shares)
					-3.21%
					(R6 Shares)
Global Diversified Index		10.16%		2.32%	2.50%
					(Institutional and
					Open Shares)
					-2.50%
					(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. Return for 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, also exclude adjustments related to reimbursed custodian out-of-pocket expenses (Note 3 in the Notes to Financial Statements), and may differ from amounts reported in the financial highlights.

Annual Report  15

	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, 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 February 28, 2011 and for the R6 Shares was July 28, 2016.

16  Annual Report

Lazard Explorer Total Return Portfolio

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

 

Average Annual Total Returns*

Periods Ended December 31, 2016

	One Year		Since Inception		†
Institutional Shares**		7.23%		0.54%
Open Shares**		6.83%		0.22%
JPMorgan EMBI Global Diversified Index		10.15%		6.09%
JPMorgan GBI-EM Global Diversified Index		9.94%		-4.07%
Global Diversified Index		10.16%		0.96%

*	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.

Annual Report  17

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, 2016

	One Year		Since Inception		†
Institutional Shares**		2.82%		-5.20%
Open Shares**		2.52%		-5.48%
JPMorgan Emerging Local Markets Index Plus		3.54%		-4.57%

*	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. 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.

18  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, 2016 through December 31, 2016 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  19

Portfolio	Beginning Account Value 7/1/16		Ending Account Value 12/31/16		Expenses Paid During Period* 7/1/16 - 12/31/16		Annualized Expense Ratio During Period 7/1/16 - 12/31/16
			’
Emerging Markets Equity**
Institutional Shares
Actual	$	1,000.00	$	1,058.00	$	5.64		1.09	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.66	$	5.53		1.09	%
Open Shares
Actual	$	1,000.00	$	1,056.40	$	6.93		1.34	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.40	$	6.80		1.34	%
R6 Shares
Actual	$	1,000.00	$	1,058.00	$	5.64		1.09	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.66	$	5.53		1.09	%
Emerging Markets Core Equity
Institutional Shares
Actual	$	1,000.00	$	1,014.60	$	6.58		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.60	$	6.60		1.30	%
Open Shares
Actual	$	1,000.00	$	1,012.80	$	8.10		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.09	$	8.11		1.60	%
Developing Markets Equity
Institutional Shares**
Actual	$	1,000.00	$	1,044.10	$	5.96		1.16	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.30	$	5.89		1.16	%
Open Shares
Actual	$	1,000.00	$	1,041.80	$	8.26		1.61	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.04	$	8.16		1.61	%
Emerging Markets Equity Advantage
Institutional Shares
Actual	$	1,000.00	$	1,024.60	$	5.60		1.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.61	$	5.58		1.10	%
Open Shares
Actual	$	1,000.00	$	1,022.80	$	7.12		1.40	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.10	$	7.10		1.40	%
Emerging Markets Equity Blend
Institutional Shares**
Actual	$	1,000.00	$	1,039.70	$	6.26		1.22	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.00	$	6.19		1.22	%
Open Shares
Actual	$	1,000.00	$	1,037.60	$	8.19		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.09	$	8.11		1.60	%
Emerging Markets Multi Asset
Institutional Shares
Actual	$	1,000.00	$	1,026.30	$	6.62		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.60	$	6.60		1.30	%
Open Shares
Actual	$	1,000.00	$	1,024.50	$	8.14		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.09	$	8.11		1.60	%

20  Annual Report

Portfolio	Beginning Account Value 7/1/16		Ending Account Value 12/31/16		Expenses Paid During Period* 7/1/16 - 12/31/16		Annualized Expense Ratio During Period 7/1/16 - 12/31/16
Emerging Markets Debt
Institutional Shares**
Actual	$	1,000.00	$	974.30	$	4.67		0.94	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.41	$	4.77		0.94	%
Open Shares
Actual	$	1,000.00	$	974.40	$	6.25		1.26	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.80	$	6.39		1.26	%
R6 Shares†
Actual	$	1,000.00	$	1,000.00	$	3.88		0.91	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.43	$	3.91		0.91	%
Explorer Total Return
Institutional Shares
Actual	$	1,000.00	$	1,010.80	$	5.51		1.09	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.66	$	5.53		1.09	%
Open Shares
Actual	$	1,000.00	$	1,009.00	$	7.32		1.45	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.85	$	7.35		1.45	%
Emerging Markets Income
Institutional Shares
Actual	$	1,000.00	$	971.50	$	4.46		0.90	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.61	$	4.57		0.90	%
Open Shares
Actual	$	1,000.00	$	970.90	$	5.95		1.20	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.10	$	6.09		1.20	%

*	Expenses are equal to the annualized expense ratio, net of expense waivers and reimbursements, of each Share class multiplied by the average account value over the period, multiplied by 184/366 (to reflect one-half year period).
**	Excludes impact of the custodian out-of-pocket expenses that were reimbursed to the Portfolio during the current period. Refer to Note 3 in the Notes to Financial Statements.
†	The inception date for the R6 Shares was July 28, 2016.

Annual Report  21

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector and Region December 31, 2016

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		8.1	%		10.9	%		10.9	%		8.1	%		9.5	%		5.1	%
Consumer Staples		6.0			3.4			2.5			5.8			3.1			1.6
Energy		8.6			8.1			13.3			8.7			8.2			6.0
Financials		29.8			24.6			25.8			24.3			26.9			14.4
Health Care		0.7			1.6			7.8			2.3			3.1			1.0
Industrials		5.5			2.4			8.5			5.2			7.2			3.5
Information Technology		22.7			30.8			21.3			25.2			29.2			14.1
Materials		3.8			10.9			7.0			9.0			4.4			3.7
Real Estate		—			0.8			0.9			2.2			0.5			0.2
Telecommunication Services		10.7			5.0			—			5.2			3.9			3.3
Utilities		—			1.1			—			4.0			—			1.3
Sovereign Debt		—			—			—			—			—			27.7
US Treasury Securities		—			—			—			—			—			5.3
Short-Term Investments		4.1			0.4			2.0			—			4.0			12.7
Purchased Options		—			—			—			—			—			0.1
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		14.5	%		13.3	%		1.7	%
Asia		21.8			11.2			3.1
Europe		15.9			11.9			19.6
North America		11.9			9.3			56.5
South America		27.5			28.1			12.1
Short-Term Investments		8.4			26.2			7.0
Total Investments		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

22  Annual Report

The Lazard Funds, Inc. Portfolios of Investments December 31, 2016

Description	Shares		Fair Value
Lazard Emerging Markets Equity Portfolio
Common Stocks | 95.5%
Argentina | 1.6%
YPF SA Sponsored ADR		10,804,726	$	178,277,979
Brazil | 10.5%
Ambev SA ADR		29,696,940		145,811,976
Banco do Brasil SA		31,922,734		273,511,713
BB Seguridade Participacoes SA		21,034,000		182,077,948
CCR SA		34,371,334		167,487,982
Cielo SA		27,339,466		233,327,529
Localiza Rent a Car SA		8,206,907		85,941,791
Natura Cosmeticos SA		7,067,178		49,723,257
				1,137,882,196
China | 16.0%
AAC Technologies Holdings, Inc.		11,613,000		104,477,250
Baidu, Inc. Sponsored ADR (a)		1,772,439		291,406,696
China Construction Bank Corp., Class H		664,154,220		508,817,759
China Mobile, Ltd. Sponsored ADR		5,222,004		273,789,670
China Shenhua Energy Co., Ltd., Class H		43,750,610		81,597,051
CNOOC, Ltd.		60,638,000		74,864,131
NetEase, Inc. ADR		1,333,304		287,113,683
Weichai Power Co., Ltd., Class H †		71,090,644		109,023,831
				1,731,090,071
Egypt | 0.8%
Commercial International Bank Egypt SAE GDR		24,555,579		89,601,049
Hong Kong | 0.4%
Huabao International Holdings, Ltd. (a)		97,954,000		41,455,846
Hungary | 1.9%
OTP Bank Nyrt.		7,180,285		204,951,445
India | 9.5%
Axis Bank, Ltd.		27,073,120		179,035,822
Bajaj Auto, Ltd.		2,448,917		94,787,837
Bharat Heavy Electricals, Ltd.		23,827,525		42,332,531
HCL Technologies, Ltd.		11,123,686		135,137,401
Hero MotoCorp, Ltd.		3,392,161		150,991,975
Oil and Natural Gas Corp., Ltd.		1,152,379		3,236,674
Punjab National Bank (a)		56,702,802		95,402,492
Tata Consultancy Services, Ltd.		9,232,463		321,065,983
				1,021,990,715

Description	Shares		Fair Value
Indonesia | 5.9%
PT Astra International Tbk		235,481,000	$	144,007,896
PT Bank Mandiri (Persero) Tbk		220,215,021		188,304,483
PT Semen Indonesia (Persero) Tbk		96,500,600		65,438,906
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		8,060,409		235,041,526
				632,792,811
Malaysia | 0.6%
British American Tobacco Malaysia Berhad		6,861,600		68,204,192
Mexico | 3.3%
America Movil SAB de CV, Class L Sponsored ADR		14,233,123		178,910,356
Grupo Mexico SAB de CV, Series B		35,165,718		95,490,192
Kimberly-Clark de Mexico SAB de CV, Series A		43,363,837		78,089,695
				352,490,243
Pakistan | 2.5%
Habib Bank, Ltd.		41,074,800		107,090,285
Oil & Gas Development Co., Ltd.		37,766,849		59,880,788
Pakistan Petroleum, Ltd.		59,142,802		107,093,761
				274,064,834
Philippines | 0.8%
PLDT, Inc. Sponsored ADR		3,115,350		85,827,893
Russia | 10.0%
ALROSA PAO		63,409,711		100,213,088
Gazprom PJSC Sponsored ADR		20,796,258		104,861,034
LUKOIL PJSC Sponsored ADR		4,223,570		236,525,731
Magnit PJSC Sponsored GDR		538,089		23,711,230
Magnit PJSC Sponsored GDR (b), (c)		1,156,565		51,062,345
Mobile TeleSystems PJSC Sponsored ADR		18,421,743		167,822,079
Sberbank of Russia PJSC		141,758,688		400,023,537
				1,084,219,044
South Africa | 9.0%
Bid Corp., Ltd.		525,779		9,336,497
Imperial Holdings, Ltd.		8,288,190		109,498,806
Life Healthcare Group Holdings, Ltd.		30,472,798		72,039,971
Nedbank Group, Ltd.		5,991,651		103,193,087
PPC, Ltd. †		86,074,258		34,452,761
Sanlam, Ltd.		20,639,994		94,432,753
Shoprite Holdings, Ltd.		12,261,204		152,998,588
Standard Bank Group, Ltd.		9,981,664		110,431,357
The Bidvest Group, Ltd.		7,795,648		102,401,325

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

Annual Report   23

Description	Shares		Fair Value
Lazard Emerging Markets Equity Portfolio (concluded)
Vodacom Group, Ltd.		8,278,182	$	91,616,113
Woolworths Holdings, Ltd.		16,792,127		86,358,499
				966,759,757
South Korea | 12.3%
Coway Co., Ltd.		1,480,402		108,123,141
Hanwha Life Insurance Co., Ltd.		22,241,558		120,094,642
Hyundai Mobis Co., Ltd.		788,711		172,017,955
KB Financial Group, Inc.		3,154,501		111,457,978
KT&G Corp.		749,513		62,647,844
Samsung Electronics Co., Ltd.		272,831		403,123,611
Shinhan Financial Group Co., Ltd.		4,918,711		184,418,082
SK Hynix, Inc.		4,628,195		169,175,617
				1,331,058,870
Taiwan | 4.7%
Hon Hai Precision Industry Co., Ltd.		32,597,032		84,442,570
Taiwan Semiconductor Manufacturing Co., Ltd.		74,709,284		418,374,772
				502,817,342
Thailand | 1.2%
Kasikornbank Public Co. Ltd.		12,007,254		59,316,161
The Siam Cement Public Co. Ltd.		5,406,900		75,027,256
				134,343,417

Description	Shares		Fair Value
Turkey | 4.5%
Akbank TAS		45,863,538	$	101,609,122
KOC Holding AS		22,738,207		88,910,361
Tupras-Turkiye Petrol Rafinerileri AS		4,035,513		80,913,651
Turk Telekomunikasyon AS		28,921,107		43,256,387
Turkcell Iletisim Hizmetleri AS (a)		27,935,609		77,191,555
Turkiye Is Bankasi AS, C Shares		60,398,803		88,754,302
				480,635,378
Total Common Stocks (Cost $10,533,111,112)				10,318,463,082
Short-Term Investment | 4.1%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $440,677,038)		440,677,038		440,677,038
Total Investments | 99.6% (Cost $10,973,788,150) (d)			$	10,759,140,120
Cash and Other Assets in Excess of Liabilities | 0.4%				38,062,989
Net Assets | 100.0%			$	10,797,203,109

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

24   Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Core Equity Portfolio
Common Stocks | 97.7%
Brazil | 7.4%
AES Tiete Energia SA		310,900	$	1,334,135
Banco do Brasil SA		236,500		2,026,315
Braskem SA A Shares		255,200		2,706,302
CCR SA		233,900		1,139,771
Telefonica Brasil SA ADR		150,000		2,007,000
				9,213,523
China | 17.4%
Alibaba Group Holding, Ltd. Sponsored ADR (a)		36,300		3,187,503
Baidu, Inc. Sponsored ADR (a)		8,254		1,357,040
China Mobile, Ltd. Sponsored ADR		22,500		1,179,675
Industrial & Commercial Bank of China, Ltd., Class H		6,435,633		3,838,384
NetEase, Inc. ADR		8,500		1,830,390
PICC Property & Casualty Co., Ltd., Class H		1,109,180		1,711,490
Ping An Insurance (Group) Co. of China, Ltd., Class H		376,000		1,870,711
Tencent Holdings, Ltd.		224,700		5,453,509
Vipshop Holdings, Ltd. ADR (a)		95,705		1,053,712
				21,482,414
Colombia | 1.2%
Ecopetrol SA Sponsored ADR (a)		165,300		1,495,965
Hong Kong | 2.0%
Lee & Man Paper Manufacturing, Ltd.		1,655,000		1,278,536
Techtronic Industries Co., Ltd.		333,500		1,194,680
				2,473,216
India | 10.1%
Aurobindo Pharma, Ltd.		103,949		1,021,864
HDFC Bank, Ltd. ADR		49,469		3,001,779
Hindalco Industries, Ltd.		464,447		1,052,576
Hindustan Zinc, Ltd.		261,541		977,508
Maruti Suzuki India, Ltd.		14,886		1,158,603
Motherson Sumi Systems, Ltd.		233,960		1,119,713
Tata Consultancy Services, Ltd.		39,396		1,370,026
Tata Motors, Ltd. Sponsored ADR		50,057		1,721,460
UPL, Ltd.		110,490		1,049,008
				12,472,537

Description	Shares		Fair Value
Indonesia | 2.6%
PT Bank Mandiri (Persero) Tbk		2,093,500	$	1,790,139
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		50,860		1,483,077
				3,273,216
Luxembourg | 2.7%
Tenaris SA ADR		36,900		1,317,699
Ternium SA Sponsored ADR		82,200		1,985,130
				3,302,829
Mexico | 4.2%
Alsea SAB de CV		452,000		1,291,263
Arca Continental SAB de CV		147,900		769,407
Gruma SAB de CV, Class B		64,533		819,985
Grupo Aeroportuario del Pacifico SAB de CV ADR		12,600		1,039,752
Grupo Financiero Banorte SAB de CV, Class O		261,900		1,289,939
				5,210,346
Peru | 1.5%
Credicorp, Ltd.		12,150		1,917,999
Philippines | 2.0%
BDO Unibank, Inc.		546,700		1,231,539
GT Capital Holdings, Inc.		46,385		1,184,777
				2,416,316
Portugal | 1.2%
Galp Energia SGPS SA		102,156		1,518,557
Russia | 8.7%
LUKOIL PJSC Sponsored ADR London		100,084		5,604,842
LUKOIL PJSC Sponsored ADR (United States)		1,717		96,358
Sberbank of Russia PJSC Sponsored ADR London		284,415		3,284,373
Sberbank of Russia PJSC Sponsored ADR (United States)		53,682		621,638
Severstal PJSC GDR		75,724		1,148,300
				10,755,511
South Africa | 4.9%
FirstRand, Ltd.		421,818		1,622,110
Mondi PLC		77,903		1,591,906
Naspers, Ltd., N Shares		14,431		2,102,672
Woolworths Holdings, Ltd.		145,371		747,614
				6,064,302

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

Annual Report   25

Description	Shares		Fair Value
Lazard Emerging Markets Core Equity Portfolio (concluded)
South Korea | 13.6%
Coway Co., Ltd.		11,497	$	839,699
Dongbu Insurance Co., Ltd.		26,316		1,360,621
Hyundai Department Store Co., Ltd.		11,841		1,067,446
Korea Zinc Co., Ltd.		4,171		1,638,600
KT&G Corp.		8,838		738,722
NCSoft Corp.		5,480		1,120,475
Samsung Electronics Co., Ltd.		5,221		7,714,330
SK Hynix, Inc.		65,753		2,403,486
				16,883,379
Taiwan | 12.1%
Advanced Semiconductor Engineering, Inc. ADR		216,400		1,090,656
Far EasTone Telecommunications Co., Ltd.		644,000		1,447,720
Hon Hai Precision Industry Co., Ltd.		742,500		1,923,445
Largan Precision Co., Ltd.		24,000		2,792,920
Silicon Motion Technology Corp. ADR		25,000		1,062,000
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		230,349		6,622,534
				14,939,275
Thailand | 2.2%
Bangkok Bank Public Co. Ltd.		168,300		756,325
Bangkok Dusit Medical Services Public Co. Ltd., Class F		1,453,889		937,849
Kasikornbank Public Co. Ltd.		197,000		973,185
				2,667,359

Description	Shares		Fair Value
Turkey | 1.6%
KOC Holding AS		198,872	$	777,624
Tofas Turk Otomobil Fabrikasi AS		171,187		1,195,528
				1,973,152
United Arab Emirates | 0.8%
Emaar Properties PJSC		527,619		1,021,595
United Kingdom | 1.5%
Unilever NV NY Shares		45,600		1,872,336
Total Common Stocks (Cost $116,128,932)				120,953,827
Preferred Stocks | 1.5%
Brazil | 1.5%
Itau Unibanco Holding SA Sponsored ADR (Cost $1,330,550)		181,017		1,860,855
Short-Term Investment | 0.4%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $472,748)		472,748		472,748
Total Investments | 99.6% (Cost $117,932,230) (d)			$	123,287,430
Cash and Other Assets in Excess of Liabilities | 0.4%				437,032
Net Assets | 100.0%			$	123,724,462

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

26   Annual Report

Description	Shares		Fair Value
Lazard Developing Markets Equity Portfolio
Common Stocks | 96.0%
Argentina | 0.8%
YPF SA Sponsored ADR		94,620	$	1,561,230
Brazil | 2.9%
Cosan SA Industria e Comercio		230,000		2,691,426
Petroleo Brasileiro SA Sponsored ADR (a)		349,700		3,080,857
				5,772,283
Canada | 0.9%
First Quantum Minerals, Ltd.		175,055		1,740,576
China | 26.1%
AAC Technologies Holdings, Inc.		185,640		1,670,125
Agricultural Bank of China, Ltd., Class H		3,648,500		1,489,704
Alibaba Group Holding, Ltd. Sponsored ADR (a)		56,710		4,979,705
Anhui Conch Cement Co., Ltd., Class H		1,652,000		4,458,256
Baidu, Inc. Sponsored ADR (a)		18,617		3,060,821
Brilliance China Automotive Holdings, Ltd.		4,193,257		5,755,116
China Medical System Holdings, Ltd.		2,669,000		4,210,765
China Merchants Bank Co., Ltd., Class H		660,711		1,535,355
China State Construction International Holdings, Ltd.		3,023,617		4,508,463
CNOOC, Ltd.		1,777,000		2,193,898
New Oriental Education & Technology Group, Inc. Sponsored ADR (a)		46,044		1,938,452
Ping An Insurance (Group) Co. of China, Ltd., Class H		1,200,000		5,970,356
TAL Education Group ADR (a)		38,900		2,728,835
Tencent Holdings, Ltd.		212,600		5,159,839
Vipshop Holdings, Ltd. ADR (a)		136,764		1,505,772
				51,165,462
Colombia | 2.3%
Bancolombia SA Sponsored ADR		91,547		3,357,944
Cemex Latam Holdings SA (a)		328,668		1,232,924
				4,590,868
Hong Kong | 1.8%
SMI Holdings Group, Ltd.		12,296,000		1,139,025
Techtronic Industries Co., Ltd.		653,000		2,339,208
				3,478,233

Description	Shares		Fair Value
India | 13.1%
Aurobindo Pharma, Ltd.		565,388	$	5,558,011
Glenmark Pharmaceuticals, Ltd.		423,670		5,547,618
HDFC Bank, Ltd. ADR		35,485		2,153,230
ICICI Bank, Ltd. Sponsored ADR		293,645		2,199,401
Petronet LNG, Ltd.		679,435		3,667,403
Reliance Industries, Ltd.		149,849		2,382,706
Shriram Transport Finance Co., Ltd.		115,682		1,443,983
Tata Motors, Ltd. Sponsored ADR		80,585		2,771,318
				25,723,670
Indonesia | 3.1%
PT Bank Rakyat Indonesia (Persero) Tbk		7,072,400		6,133,146
Mexico | 1.7%
Grupo Financiero Banorte SAB de CV, Class O		663,057		3,265,763
Peru | 2.6%
Credicorp, Ltd.		32,555		5,139,132
Portugal | 1.4%
Galp Energia SGPS SA		181,193		2,693,449
Russia | 12.6%
ALROSA PAO		1,099,179		1,737,149
Mail.ru Group, Ltd. GDR (a)		94,442		1,733,141
Novatek OAO Sponsored GDR (London)		27,182		3,521,315
Novatek OAO Sponsored GDR (United States)		18,525		2,404,545
Rosneft PJSC GDR		290,810		1,885,722
Sberbank of Russia PJSC		2,654,772		7,491,525
X5 Retail Group NV GDR (a)		94,421		3,064,939
Yandex NV Class A (a)		141,730		2,853,025
				24,691,361
South Africa | 3.5%
Capitec Bank Holdings, Ltd.		49,315		2,497,543
Petra Diamonds, Ltd. (a)		1,083,661		2,080,618
Standard Bank Group, Ltd.		205,188		2,270,081
				6,848,242
South Korea | 9.1%
CJ CGV Co., Ltd.		33,573		1,950,910
Korea Aerospace Industries, Ltd.		105,562		5,840,263
LS Industrial Systems Co., Ltd.		4,656		152,957
NCSoft Corp.		14,781		3,022,215
Samsung Electronics Co., Ltd.		3,381		4,995,623
SPC Samlip Co., Ltd.		13,706		1,917,263
				17,879,231

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

Annual Report   27

Description	Shares		Fair Value
Lazard Developing Markets Equity Portfolio (concluded)
Taiwan | 8.6%
Advanced Semiconductor Engineering, Inc.		2,278,050	$	2,317,885
Catcher Technology Co., Ltd.		419,670		2,882,740
Hiwin Technologies Corp.		354,635		1,619,628
Hota Industrial Manufacturing Co., Ltd.		296,817		1,145,083
Largan Precision Co., Ltd.		26,860		3,125,743
Silicon Motion Technology Corp. ADR		34,610		1,470,233
Taiwan Semiconductor Manufacturing Co., Ltd.		788,000		4,412,829
				16,974,141
Turkey | 4.3%
Aselsan Elektronik Sanayi Ve Ticaret AS		1,239,642		4,465,947
Emlak Konut Gayrimenkul Yatirim Ortakligi AS REIT		2,053,661		1,741,793
Turkiye Garanti Bankasi AS		1,001,319		2,164,715
				8,372,455
United States | 1.2%
Freeport-McMoRan, Inc. (a)		181,520		2,394,249
Total Common Stocks (Cost $173,921,411)				188,423,491

Description	Shares		Fair Value
Preferred Stocks | 1.7%
Brazil | 1.7%
Banco Bradesco SA ADR (Cost $2,552,540)		400,163	$	3,485,420
Short-Term Investment | 2.0%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $3,850,823)		3,850,823		3,850,823
Total Investments | 99.7% (Cost $180,324,774) (d)			$	195,759,734
Cash and Other Assets in Excess of Liabilities | 0.3%				547,705
Net Assets | 100.0%			$	196,307,439

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

28   Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Equity Advantage Portfolio
Common Stocks | 98.4%
Brazil | 3.5%
Ambev SA ADR		1,869	$	9,177
Banco do Brasil SA		1,100		9,425
BB Seguridade Participacoes SA		4,000		34,625
Braskem SA Sponsored ADR		900		19,089
Centrais Eletricas Brasileiras SA (a)		800		5,586
Itausa - Investimentos Itau SA		4,700		11,907
Kroton Educacional SA		1,700		6,911
Qualicorp SA		1,300		7,659
				104,379
Chile | 0.8%
Enel Americas SA ADR		3,080		25,287
China | 23.5%
AAC Technologies Holdings, Inc.		500		4,498
Alibaba Group Holding, Ltd. Sponsored ADR (a)		842		73,936
Baidu, Inc. Sponsored ADR (a)		166		27,292
Bank of China, Ltd., Class H		27,000		11,913
China Communications Services Corp., Ltd., Class H		10,000		6,364
China Construction Bank Corp., Class H		102,000		78,144
China Hongqiao Group, Ltd.		8,000		6,984
China Lesso Group Holdings, Ltd.		19,000		12,279
China Lodging Group, Ltd. Sponsored ADR		200		10,368
China Mobile, Ltd.		4,500		47,186
China Overseas Land & Investment, Ltd.		10,000		26,376
China Petroleum & Chemical Corp., Class H		88,000		62,274
China Railway Construction Corp., Ltd., Class H		4,000		5,124
China Railway Group, Ltd., Class H		6,000		4,909
China Resources Land, Ltd.		6,000		13,528
China Vanke Co., Ltd., Class H		2,200		4,973
Chongqing Rural Commercial Bank Co., Ltd., Class H		8,000		4,696
CNOOC, Ltd.		13,000		16,050
CSPC Pharmaceutical Group, Ltd.		6,000		6,382
Ctrip.com International, Ltd. ADR (a)		126		5,040
Dali Foods Group Co., Ltd. (b)		10,500		5,553
Geely Automobile Holdings, Ltd.		5,000		4,755

Description	Shares		Fair Value
Guangzhou Automobile Group Co., Ltd. Class H		6,000	$	7,181
Hisense Kelon Electrical Holdings Co., Ltd., Class H		6,000		4,876
Industrial & Commercial Bank of China, Ltd., Class H		65,000		38,768
Longfor Properties Co., Ltd.		6,500		8,224
Minth Group, Ltd.		2,000		6,205
NetEase, Inc. ADR		80		17,227
New Oriental Education & Technology Group, Inc. Sponsored ADR (a)		200		8,420
PetroChina Co., Ltd., Class H		46,000		33,943
PICC Property & Casualty Co., Ltd., Class H		4,000		6,172
Sunny Optical Technology Group Co., Ltd.		4,000		17,429
Tencent Holdings, Ltd.		4,200		101,935
TravelSky Technology, Ltd. Class H		4,000		8,375
Vipshop Holdings, Ltd. ADR (a)		617		6,793
Weichai Power Co., Ltd., Class H		3,000		4,601
				708,773
Colombia | 1.3%
Bancolombia SA Sponsored ADR		1,047		38,404
Egypt | 0.6%
Commercial International Bank Egypt SAE ADR		1,976		7,094
Global Telecom Holding SAE GDR (a)		5,338		9,951
				17,045
Greece | 0.8%
Hellenic Telecommunications Organization SA		615		5,781
JUMBO SA		723		11,439
Motor Oil (Hellas) Corinth Refineries SA		418		5,759
				22,979
Hong Kong | 1.4%
CP Pokphand Co., Ltd.		46,000		5,632
K Wah International Holdings, Ltd.		11,000		5,056
Kingboard Chemical Holdings, Ltd.		4,500		13,579
Lee & Man Paper Manufacturing, Ltd.		9,000		6,953
Nine Dragons Paper Holdings, Ltd.		7,000		6,322
Sino Biopharmaceutical, Ltd.		6,000		4,217
				41,759
Hungary | 1.8%
MOL Hungarian Oil & Gas Nyrt.		586		41,116
Richter Gedeon Nyrt.		667		14,077
				55,193

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

Annual Report   29

Description	Shares		Fair Value
Lazard Emerging Markets Equity Advantage Portfolio (continued)
India | 5.7%
Axis Bank, Ltd. GDR		193	$	6,320
Dr Reddy’s Laboratories, Ltd. ADR		254		11,501
HDFC Bank, Ltd. ADR		400		24,272
ICICI Bank, Ltd. Sponsored ADR		800		5,992
Infosys, Ltd. Sponsored ADR		2,196		32,567
Reliance Industries, Ltd. Sponsored GDR (b)		308		9,703
State Bank of India GDR		166		6,086
Tata Motors, Ltd. Sponsored ADR		708		24,348
Tata Steel, Ltd. GDR		2,396		13,437
Vedanta, Ltd. ADR		2,033		25,250
WNS Holdings, Ltd. ADR (a)		500		13,775
				173,251
Indonesia | 3.5%
PT Adaro Energy Tbk		45,200		5,673
PT Bank Central Asia Tbk		5,600		6,414
PT Bank Negara Indonesia (Persero) Tbk		28,100		11,485
PT Bank Rakyat Indonesia (Persero) Tbk		22,500		19,512
PT Bank Tabungan Negara (Persero) Tbk		39,300		5,039
PT Gudang Garam Tbk		1,100		5,209
PT Indofood CBP Sukses Makmur Tbk		8,500		5,406
PT Surya Citra Media Tbk		38,400		7,964
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		1,280		37,325
				104,027
Luxembourg | 1.5%
Ternium SA Sponsored ADR		1,848		44,629
Malaysia | 2.9%
AirAsia Berhad		12,100		6,171
Astro Malaysia Holdings Berhad		17,700		10,254
IOI Properties Group Berhad		9,800		4,584
My EG Services Berhad		16,050		5,389
Press Metal Berhad		17,080		6,039
Sunway Construction Group Berhad		13,800		5,228
Tenaga Nasional Berhad Sponsored ADR		3,292		40,458
Top Glove Corp. Berhad		4,700		5,601
Westports Holdings Berhad		4,800		4,593
				88,317
Mexico | 2.2%
Alfa SAB de CV, Series A		4,500		5,570
Cemex SAB de CV Sponsored ADR (a)		1,337		10,736
Controladora Vuela Cia de Aviacion SAB de CV ADR (a)		372		5,595

Description	Shares		Fair Value
Gentera SAB de CV		12,600	$	20,265
Gruma SAB de CV, Class B		340		4,320
Grupo Lala SAB de CV		2,000		2,909
Kimberly-Clark de Mexico SAB de CV, Series A		4,900		8,824
Wal-Mart de Mexico SAB de CV		4,500		8,054
				66,273
Oman | 0.2%
Akbank TAS ADR		1,693		7,381
Peru | 0.8%
Credicorp, Ltd.		153		24,153
Philippines | 2.1%
Aboitiz Equity Ventures, Inc.		6,390		9,101
Cebu Air, Inc.		7,180		13,413
DMCI Holdings, Inc.		26,600		7,089
JG Summit Holdings, Inc.		8,770		11,922
Metro Pacific Investments Corp.		76,600		10,244
Semirara Mining & Power Corp.		4,620		12,089
				63,858
Poland | 0.6%
Ciech SA		279		3,888
Enea SA (a)		3,196		7,255
Jastrzebska Spolka Weglowa SA (a)		233		3,725
Tauron Polska Energia SA (a)		6,287		4,282
				19,150
Russia | 3.7%
Gazprom PJSC Sponsored ADR		5,081		25,620
LUKOIL PJSC Sponsored ADR		411		23,017
MMC Norilsk Nickel PJSC ADR		447		7,485
Rosneft PJSC GDR		814		5,278
Sberbank of Russia PJSC Sponsored ADR		4,014		46,353
X5 Retail Group NV GDR (a)		153		4,966
				112,719
South Africa | 5.3%
AVI, Ltd.		882		5,857
Barclays Africa Group, Ltd.		533		6,503
Capitec Bank Holdings, Ltd.		156		7,901
Clicks Group, Ltd.		2,112		17,750
Coronation Fund Managers, Ltd.		3,178		16,234
FirstRand, Ltd.		3,390		13,036
Naspers, Ltd., N Shares		241		35,115
Pick n Pay Stores, Ltd.		975		4,521
Sasol, Ltd.		186		5,364
Shoprite Holdings, Ltd.		383		4,779

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

30   Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Equity Advantage Portfolio (continued)
Standard Bank Group, Ltd.		1,898	$	20,998
Tiger Brands, Ltd.		529		15,308
Vodacom Group, Ltd.		489		5,412
				158,778
South Korea | 16.5%
Dongbu Insurance Co., Ltd.		168		8,686
Hana Financial Group, Inc.		479		12,365
Hanwha Chemical Corp.		391		7,972
Hyosung Corp.		97		11,666
Hyundai Development Co-Engineering & Construction		138		5,125
Hyundai Engineering & Construction Co., Ltd.		159		5,593
Hyundai Marine & Fire Insurance Co., Ltd.		719		18,718
Hyundai Mobis Co., Ltd.		27		5,889
KB Financial Group, Inc. ADR (a)		1,028		36,278
KB Insurance Co., Ltd.		464		10,037
KIWOOM Securities Co., Ltd.		102		6,064
Korea Electric Power Corp. Sponsored ADR (a)		2,062		38,106
Korea PetroChemical Ind Co., Ltd.		34		7,737
KT Corp.		327		7,957
KT Skylife Co., Ltd.		483		6,883
KT&G Corp. GDR (a), (b)		393		16,432
Kyung Dong Navien Co., Ltd.		123		4,380
LG Chem, Ltd.		38		8,194
LG Electronics, Inc.		162		6,891
LG Household & Health Care, Ltd.		6		4,251
LG Uplus Corp.		827		7,836
Lotte Chemical Corp.		34		10,329
NAVER Corp.		19		12,169
Nexen Tire Corp.		486		5,228
Samsung Card Co., Ltd.		153		5,025
Samsung Electronics Co., Ltd. GDR		193		143,728
Samsung Fire & Marine Insurance Co., Ltd.		38		8,442
Shinhan Financial Group Co., Ltd. ADR (a)		209		7,867
SK Holdings Co., Ltd.		27		5,122
SK Hynix, Inc.		781		28,548
SK Innovation Co., Ltd.		89		10,733
SK Telecom Co., Ltd. Sponsored ADR		650		13,585
Woori Bank (a)		781		8,229
				496,065

Description	Shares		Fair Value
Taiwan | 13.6%
Catcher Technology Co., Ltd.		1,000	$	6,869
Cheng Shin Rubber Industry Co., Ltd.		4,000		7,520
Chicony Power Technology Co., Ltd.		5,000		7,739
Chunghwa Telecom Co., Ltd. Sponsored ADR		205		6,468
Eclat Textile Co., Ltd.		1,000		10,390
Elite Material Co., Ltd.		5,000		13,873
Feng TAY Enterprise Co., Ltd.		3,494		12,988
FLEXium Interconnect, Inc.		2,317		6,048
Formosa Chemicals & Fibre Corp.		4,000		11,908
Fubon Financial Holding Co., Ltd.		7,000		11,090
Grand Pacific Petrochemical		10,000		6,496
Grape King Bio, Ltd.		1,000		5,777
Hon Hai Precision Industry Co., Ltd. GDR		6,560		33,321
Long Chen Paper Co., Ltd.		23,000		11,655
Micro-Star International Co., Ltd.		4,000		9,050
Nien Made Enterprise Co., Ltd.		1,000		10,248
Pegatron Corp.		3,000		7,077
President Chain Store Corp.		1,000		7,153
Rechi Precision Co., Ltd.		6,000		5,868
St Shine Optical Co., Ltd.		1,000		19,002
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		5,818		167,267
Uni-President Enterprises Corp.		3,000		4,953
Vanguard International Semiconductor Corp.		4,000		6,935
Walsin Lihwa Corp.		42,000		15,380
Wistron NeWeb Corp.		2,060		5,492
				410,567
Thailand | 4.1%
Airports of Thailand Public Co. Ltd. ADR		123		13,670
Bangkok Bank Public Co. Ltd. NVDR		3,600		15,986
Bangkok Land Public Co. Ltd. NVDR		116,300		5,576
Beauty Community Public Co. Ltd. NVDR		32,524		10,577
Charoen Pokphand Foods Public Co. Ltd. NVDR		14,200		11,644
GFPT Public Co. Ltd.		14,000		5,747
Home Product Center Public Co. Ltd.		19,500		5,554
KCE Electronics Public Co. Ltd.		3,300		11,243
PTT Exploration & Production Public Co. Ltd.		2,700		7,257
PTT Public Co. Ltd.		600		6,233
Thai Vegetable Oil Public Co. Ltd. NVDR		10,300		11,599
The Siam Cement Public Co. Ltd.		1,300		18,039
				123,125

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

Annual Report   31

Description	Shares		Fair Value
Lazard Emerging Markets Equity Advantage Portfolio (concluded)
Turkey | 1.5%
Turk Telekomunikasyon ADR		3,902	$	11,316
Turkiye Garanti Bankasi AS ADR		9,029		18,871
Turkiye Halk Bankasi AS ADR		1,830		9,507
Turkiye Vakiflar Bankasi TAO, Class D		4,580		5,653
				45,347
United States | 0.5%
Yum China Holdings, Inc. (a)		570		14,888
Total Common Stocks (Cost $2,863,729)				2,966,347
Preferred Stocks | 2.6%
Brazil | 2.6%
Banco Bradesco SA ADR		3,980		34,666
Itau Unibanco Holding SA Sponsored ADR		2,134		21,937
Vale SA		3,000		20,695
Total Preferred Stocks (Cost $60,759)				77,298

Description	Shares		Fair Value
Short-Term Investment | 0.0%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $562)		562	$	562
Total Investments | 101.0% (Cost $2,925,050) (d)			$	3,044,207
Liabilities in Excess of Cash and Other Assets | (1.0)%				(28,938	)
Net Assets | 100.0%			$	3,015,269

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

32   Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Equity Blend Portfolio
Common Stocks | 95.9%
Argentina | 1.7%
Grupo Supervielle SA Sponsored ADR		117,600	$	1,545,264
YPF SA Sponsored ADR		199,207		3,286,915
				4,832,179
Brazil | 6.0%
Ambev SA ADR		364,175		1,788,099
Banco ABC Brasil SA		404,782		1,733,379
Banco do Brasil SA		347,557		2,977,844
CCR SA		480,000		2,338,991
Cielo SA Sponsored ADR		335,075		2,859,865
Iochpe Maxion SA		340,200		1,211,993
Localiza Rent a Car SA		205,310		2,149,983
Natura Cosmeticos SA		97,295		684,548
Tupy SA		432,200		1,595,019
				17,339,721
China | 23.5%
AAC Technologies Holdings, Inc.		437,049		3,931,945
Agricultural Bank of China, Ltd., Class H		9,779,726		3,993,120
Alibaba Group Holding, Ltd. Sponsored ADR (a)		50,931		4,472,251
Anhui Conch Cement Co., Ltd., Class H		967,000		2,609,645
Baidu, Inc. Sponsored ADR (a)		39,739		6,533,489
Brilliance China Automotive Holdings, Ltd.		3,649,373		5,008,652
China Construction Bank Corp., Class H		6,626,281		5,076,486
China Medical System Holdings, Ltd.		1,680,000		2,650,463
China Mobile, Ltd. Sponsored ADR		56,216		2,947,405
China Shenhua Energy Co., Ltd., Class H		1,026,500		1,914,473
China State Construction International Holdings, Ltd.		2,534,696		3,779,441
CNOOC, Ltd.		2,862,800		3,534,434
Greatview Aseptic Packaging Co., Ltd.		3,396,679		1,780,127
Green Seal Holding, Ltd.		244,000		1,097,041
Minth Group, Ltd.		348,000		1,079,757
NetEase, Inc. ADR		24,475		5,270,447
New Oriental Education & Technology Group, Inc. Sponsored ADR (a)		69,047		2,906,879
Ping An Insurance (Group) Co. of China, Ltd., Class H		905,500		4,505,131
Tencent Holdings, Ltd.		199,700		4,846,754
				67,937,940

Description	Shares		Fair Value
Colombia | 0.9%
Bancolombia SA Sponsored ADR		75,792	$	2,780,051
Egypt | 0.4%
Commercial International Bank Egypt SAE GDR		359,567		1,312,027
Georgia | 0.4%
BGEO Group PLC		33,017		1,216,407
Hong Kong | 1.2%
Man Wah Holdings, Ltd.		1,547,200		1,043,724
PAX Global Technology, Ltd.		1,649,000		1,088,237
Tongda Group Holdings, Ltd.		5,609,114		1,440,927
				3,572,888
Hungary | 0.9%
OTP Bank Nyrt.		91,367		2,607,946
India | 10.0%
Aurobindo Pharma, Ltd.		358,164		3,520,908
Axis Bank, Ltd.		675,304		4,465,817
Bajaj Auto, Ltd.		48,089		1,861,334
Dewan Housing Finance Corp., Ltd.		474,001		1,693,790
Glenmark Pharmaceuticals, Ltd.		215,130		2,816,954
HCL Technologies, Ltd.		162,772		1,977,455
ICICI Bank, Ltd. Sponsored ADR		389,194		2,915,063
Indo Count Industries, Ltd.		866,827		2,078,535
Oil and Natural Gas Corp., Ltd.		21,584		60,621
Reliance Industries, Ltd.		151,346		2,406,510
Tata Consultancy Services, Ltd.		31,212		1,085,421
Tata Motors, Ltd. Sponsored ADR		83,763		2,880,610
UPL, Ltd.		115,776		1,099,194
				28,862,212
Indonesia | 4.0%
PT Bank Mandiri (Persero) Tbk		3,093,000		2,644,805
PT Bank Rakyat Indonesia (Persero) Tbk		6,766,118		5,867,540
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		102,530		2,989,775
				11,502,120
Malaysia | 0.3%
Berjaya Auto Berhad		1,654,820		785,298
Mexico | 4.1%
America Movil SAB de CV, Class L Sponsored ADR		93,926		1,180,650
Credito Real SAB de CV		973,715		1,287,975

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

Annual Report   33

Description	Shares		Fair Value
Lazard Emerging Markets Equity Blend Portfolio (continued)
Grupo Financiero Banorte SAB de CV, Class O		498,000	$	2,452,805
Grupo Financiero Interacciones SA de CV, Class O		364,571		1,421,728
Grupo Mexico SAB de CV, Series B		428,001		1,162,209
Kimberly-Clark de Mexico SAB de CV, Series A		873,100		1,572,280
Nemak SAB de CV		1,628,900		1,459,984
Unifin Financiera SAB de CV SOFOM ENR		567,305		1,406,656
				11,944,287
Peru | 1.1%
Credicorp, Ltd.		20,792		3,282,225
Philippines | 0.3%
PLDT, Inc. Sponsored ADR		27,702		763,190
Portugal | 1.2%
Galp Energia SGPS SA		227,081		3,375,578
Russia | 10.2%
Gazprom PJSC Sponsored ADR		250,318		1,262,179
LUKOIL PJSC Sponsored ADR		46,473		2,608,065
Mobile TeleSystems PJSC Sponsored ADR		242,300		2,207,353
Novatek OAO Sponsored GDR (London)		40,167		5,203,468
Novatek OAO Sponsored GDR (United States)		362		46,988
Sberbank of Russia PJSC		2,158,513		6,091,127
Sberbank of Russia PJSC Sponsored ADR		376,677		4,361,920
X5 Retail Group NV GDR (London) (a)		104,623		3,396,099
X5 Retail Group NV GDR (United States) (a)		15,362		498,497
Yandex NV Class A (a)		195,799		3,941,434
				29,617,130
South Africa | 1.1%
Petra Diamonds, Ltd. (a)		524,034		1,006,140
Standard Bank Group, Ltd.		189,317		2,094,494
				3,100,634
South Korea | 10.5%
Eugene Technology Co., Ltd.		103,002		1,503,386
Hanwha Life Insurance Co., Ltd.		180,843		976,473
Hyundai Mobis Co., Ltd.		12,128		2,645,118
KC Tech Co., Ltd.		115,237		1,525,042

Description	Shares		Fair Value
Koh Young Technology, Inc.	48,432	$	1,810,089
KT&G Corp.	12,049		1,007,112
Mando Corp.	7,122		1,381,109
NCSoft Corp.	16,792		3,433,396
Samsung Electronics Co., Ltd.	5,747		8,491,526
Shinhan Financial Group Co., Ltd.	70,612		2,647,468
SK Hynix, Inc.	72,318		2,643,459
Viatron Technologies, Inc.	109,661		2,295,255
			30,359,433
Taiwan | 10.9%
Advanced Semiconductor Engineering, Inc.	2,021,000		2,056,340
Catcher Technology Co., Ltd.	279,000		1,916,468
Chailease Holding Co., Ltd.	740,336		1,263,763
Chicony Electronics Co., Ltd.	527,654		1,222,026
Cleanaway Co., Ltd.	230,000		1,173,488
Flytech Technology Co., Ltd.	432,000		1,258,346
Hon Hai Precision Industry Co., Ltd.	541,671		1,403,198
King Slide Works Co., Ltd.	113,000		1,458,846
Largan Precision Co., Ltd.	28,614		3,329,859
Makalot Industrial Co., Ltd.	280,451		1,069,102
Silicon Motion Technology Corp. ADR	73,606		3,126,783
Sinmag Equipment Corp.	304,615		1,334,359
Sporton International, Inc.	290,465		1,535,804
Taiwan Semiconductor Manufacturing Co., Ltd.	1,659,113		9,291,095
			31,439,477
Turkey | 5.4%
Aselsan Elektronik Sanayi Ve Ticaret AS	991,790		3,573,033
Emlak Konut Gayrimenkul Yatirim Ortakligi AS REIT	1,615,712		1,370,350
KOC Holding AS ADR	120,367		2,337,527
Soda Sanayii AS	1,356,135		2,032,077
Turkcell Iletisim Hizmetleri AS ADR (a)	183,575		1,266,667
Turkiye Garanti Bankasi AS	1,009,846		2,183,150
Turkiye Is Bankasi AS, C Shares	913,691		1,342,643
Turkiye Sinai Kalkinma Bankasi AS	3,820,164		1,528,409
			15,633,856
United States | 1.8%
Freeport-McMoRan, Inc. (a)	144,205		1,902,064
Luxoft Holding, Inc. (a)	30,700		1,725,340
Nexteer Automotive Group, Ltd.	1,313,000		1,550,211
			5,177,615
Total Common Stocks (Cost $268,317,162)			277,442,214

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

34   Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Equity Blend Portfolio (concluded)
Short-Term Investment | 4.0%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $11,475,199)	11,475,199	$	11,475,199

Description	Fair Value
Total Investments | 99.9%
(Cost $279,792,361) (d)	$	288,917,413
Cash and Other Assets in Excess of Liabilities | 0.1%		359,374
Net Assets | 100.0%	$	289,276,787

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

Annual Report   35

Description	Shares		Fair Value
Lazard Emerging Markets Multi Asset Portfolio
Common Stocks | 46.8%
Argentina | 0.8%
Grupo Supervielle SA Sponsored ADR	40,500	$	532,170
YPF SA Sponsored ADR	59,981		989,686
			1,521,856
Brazil | 3.7%
Ambev SA ADR	127,100		624,061
Banco ABC Brasil SA	139,025		595,340
Banco do Brasil SA	163,615		1,401,842
Braskem SA A Shares	28,457		301,776
CCR SA	193,590		943,344
Cielo SA Sponsored ADR	116,136		991,221
Iochpe Maxion SA	117,100		417,179
Localiza Rent a Car SA	71,638		750,185
Natura Cosmeticos SA	33,955		238,901
Telefonica Brasil SA ADR	16,300		218,094
Tupy SA	149,300		550,986
			7,032,929
China | 10.0%
AAC Technologies Holdings, Inc.	87,393		786,238
Agricultural Bank of China, Ltd., Class H	1,950,090		796,233
Alibaba Group Holding, Ltd. Sponsored ADR (a)	13,493		1,184,820
Anhui Conch Cement Co., Ltd., Class H	191,000		515,452
Baidu, Inc. Sponsored ADR (a)	13,276		2,182,707
Brilliance China Automotive Holdings, Ltd.	729,717		1,001,514
China Construction Bank Corp., Class H	2,313,065		1,772,071
China Medical System Holdings, Ltd.	334,000		526,937
China Mobile, Ltd. Sponsored ADR	22,676		1,188,903
China Shenhua Energy Co., Ltd., Class H	358,486		668,594
China State Construction International Holdings, Ltd.	513,092		765,063
CNOOC, Ltd.	739,000		912,375
Greatview Aseptic Packaging Co., Ltd.	1,170,978		613,685
Green Seal Holding, Ltd.	84,000		377,670
Industrial & Commercial Bank of China, Ltd., Class H	587,000		350,103
Minth Group, Ltd.	120,000		372,330
NetEase, Inc. ADR	8,600		1,851,924
New Oriental Education & Technology Group, Inc. Sponsored ADR (a)	13,800		580,980
PICC Property & Casualty Co., Ltd., Class H	130,000		200,593

Description	Shares		Fair Value
Ping An Insurance (Group) Co. of China, Ltd., Class H	219,400	$	1,091,580
Tencent Holdings, Ltd.	56,152		1,362,819
			19,102,591
Colombia | 0.3%
Bancolombia SA Sponsored ADR	14,980		549,466
Egypt | 0.2%
Commercial International Bank Egypt SAE GDR	125,525		458,029
Georgia | 0.2%
BGEO Group PLC	11,393		419,739
Hong Kong | 0.7%
Man Wah Holdings, Ltd.	533,600		359,961
PAX Global Technology, Ltd.	569,000		375,504
Tongda Group Holdings, Ltd.	1,940,049		498,380
			1,233,845
Hungary | 0.5%
OTP Bank Nyrt.	31,896		910,428
India | 4.5%
Aurobindo Pharma, Ltd.	70,745		695,454
Axis Bank, Ltd.	235,750		1,559,026
Bajaj Auto, Ltd.	16,788		649,797
Dewan Housing Finance Corp., Ltd.	163,499		584,245
Glenmark Pharmaceuticals, Ltd.	42,493		556,412
HCL Technologies, Ltd.	56,824		690,333
HDFC Bank, Ltd. ADR	9,443		573,001
ICICI Bank, Ltd. Sponsored ADR	77,760		582,422
Indo Count Industries, Ltd.	298,995		716,950
Oil and Natural Gas Corp., Ltd.	7,871		22,107
Reliance Industries, Ltd.	29,894		475,336
Tata Consultancy Services, Ltd.	10,896		378,917
Tata Motors, Ltd. Sponsored ADR	23,535		809,369
UPL, Ltd.	39,935		379,149
			8,672,518
Indonesia | 2.1%
PT Bank Mandiri (Persero) Tbk	1,448,498		1,238,601
PT Bank Rakyat Indonesia (Persero) Tbk	1,354,600		1,174,702
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR	52,554		1,532,475
			3,945,778
Luxembourg | 0.1%
Ternium SA Sponsored ADR	6,726		162,433

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

36   Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
Malaysia | 0.2%
Berjaya Auto Berhad		571,560	$	271,235
Mexico | 2.4%
Alsea SAB de CV		61,358		175,286
America Movil SAB de CV, Class L Sponsored ADR		32,934		413,980
Credito Real SAB de CV		335,420		443,675
Gruma SAB de CV, Class B		17,403		221,130
Grupo Aeroportuario del Pacifico SAB de CV ADR		2,595		214,139
Grupo Financiero Banorte SAB de CV, Class O		154,414		760,537
Grupo Financiero Interacciones SA de CV, Class O		125,687		490,145
Grupo Mexico SAB de CV, Series B		149,209		405,167
Kimberly-Clark de Mexico SAB de CV, Series A		304,835		548,948
Nemak SAB de CV		562,600		504,259
Unifin Financiera SAB de CV SOFOM ENR		195,520		484,800
				4,662,066
Peru | 0.5%
Credicorp, Ltd.		5,917		934,058
Philippines | 0.2%
BDO Unibank, Inc.		63,141		142,236
PLDT, Inc. Sponsored ADR		9,640		265,582
				407,818
Portugal | 0.5%
Galp Energia SGPS SA		69,603		1,034,654
Russia | 4.7%
Gazprom PJSC Sponsored ADR		86,793		437,637
LUKOIL PJSC Sponsored ADR (London)		648		36,289
LUKOIL PJSC Sponsored ADR (United States)		26,597		1,492,624
Mobile TeleSystems PJSC Sponsored ADR		84,610		770,797
Novatek OAO Sponsored GDR		8,122		1,052,171
Sberbank of Russia PJSC		430,681		1,215,343
Sberbank of Russia PJSC Sponsored ADR (London)		2,107		24,331
Sberbank of Russia PJSC Sponsored ADR (United States)		174,685		2,022,852
Severstal PJSC GDR		18,030		273,412

Description	Shares		Fair Value
X5 Retail Group NV GDR (a)		23,700	$	769,310
Yandex NV Class A (a)		38,704		779,112
				8,873,878
South Africa | 1.1%
FirstRand, Ltd.		81,610		313,833
Mondi PLC		8,715		178,086
Naspers, Ltd., N Shares		3,923		571,602
Petra Diamonds, Ltd. (a)		180,759		347,055
Standard Bank Group, Ltd.		66,091		731,193
				2,141,769
South Korea | 5.6%
Eugene Technology Co., Ltd.		35,493		518,045
Hanwha Life Insurance Co., Ltd. (a)		79,848		431,144
Hyundai Department Store Co., Ltd. (a)		1,542		139,009
Hyundai Mobis Co., Ltd. (a)		4,234		923,436
KC Tech Co., Ltd. (a)		39,766		526,262
Koh Young Technology, Inc. (a)		16,691		623,807
Korea Zinc Co., Ltd. (a)		374		146,928
KT&G Corp.		4,206		351,557
Mando Corp. (a)		2,456		476,271
NCSoft Corp. (a)		3,317		678,214
Samsung Electronics Co., Ltd.		2,007		2,965,459
Shinhan Financial Group Co., Ltd. (a)		24,651		924,244
SK Hynix, Inc. (a)		33,659		1,230,346
Viatron Technologies, Inc. (a)		37,772		790,585
				10,725,307
Taiwan | 5.1%
Advanced Semiconductor Engineering, Inc.		404,000		411,065
Catcher Technology Co., Ltd.		56,000		384,667
Chailease Holding Co., Ltd.		252,280		430,645
Chicony Electronics Co., Ltd.		181,820		421,088
Cleanaway Co., Ltd.		79,000		403,068
Flytech Technology Co., Ltd.		149,000		434,013
Hon Hai Precision Industry Co., Ltd.		113,045		292,843
Hon Hai Precision Industry Co., Ltd. GDR		95,260		483,861
King Slide Works Co., Ltd.		39,000		503,495
Largan Precision Co., Ltd.		5,648		657,267
Makalot Industrial Co., Ltd.		96,758		368,849
Silicon Motion Technology Corp. ADR		20,062		852,234
Sinmag Equipment Corp.		105,334		461,413
Sporton International, Inc.		99,919		528,312
Taiwan Semiconductor Manufacturing Co., Ltd.		160,668		899,747
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		79,251		2,278,466
				9,811,033

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

Annual Report   37

Description	Shares		Fair Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
Thailand | 0.1%
Kasikornbank Public Co. Ltd.		32,503	$	160,566
Turkey | 2.3%
Aselsan Elektronik Sanayi Ve Ticaret AS		208,902		752,593
Emlak Konut Gayrimenkul Yatirim Ortakligi AS REIT		319,138		270,674
KOC Holding AS ADR		42,004		815,718
Soda Sanayii AS		467,641		700,728
Turkcell Iletisim Hizmetleri AS ADR (a)		64,127		442,476
Turkiye Garanti Bankasi AS		199,466		431,218
Turkiye Is Bankasi AS, C Shares		318,971		468,719
Turkiye Sinai Kalkinma Bankasi AS		1,316,300		526,638
				4,408,764
United Arab Emirates | 0.1%
Emaar Properties PJSC		65,450		126,727
United Kingdom | 0.1%
Unilever NV NY Shares		5,994		246,114
United States | 0.8%
Freeport-McMoRan, Inc. (a)		28,488		375,757
Luxoft Holding, Inc. (a)		10,600		595,720
Nexteer Automotive Group, Ltd.		453,000		534,840
				1,506,317
Total Common Stocks (Cost $85,605,969)				89,319,918

Description	Security Currency	Principal Amount (000)		Fair Value
Corporate Bonds | 5.1%
Argentina | 0.1%
Generacion Mediterranea SA, 9.625%, 07/27/23	USD		120	$	123,600
Bangladesh | 0.0%
Banglalink Digital Communications, Ltd., 8.625%, 05/06/19	USD		40		42,248
Barbados | 0.2%
Columbus Cable Barbados, Ltd., 7.375%, 03/30/21	USD		415		441,618

Description	Security Currency	Principal Amount (000)		Fair Value
Brazil | 1.2%
Braskem Finance, Ltd., 5.750%, 04/15/21	USD		200	$	210,500
Gerdau Trade, Inc., 4.750%, 04/15/23	USD		48		45,840
GTL Trade Finance, Inc., 5.893%, 04/29/24	USD		25		24,906
Petrobras Global Finance BV, 8.375%, 05/23/21	USD		1,797		1,936,267
Vale Overseas, Ltd.: 5.875%, 06/10/21	USD		40		41,900
6.250%, 08/10/26	USD		50		52,063
					2,311,476
Canada | 0.2%
First Quantum Minerals, Ltd.: 6.750%, 02/15/20 (b)	USD		335		334,163
7.000%, 02/15/21 (b)	USD		50		49,730
					383,893
Chile | 0.4%
AES Gener SA, 8.375%, 12/18/73	USD		85		90,100
Empresa Electrica Angamos SA, 4.875%, 05/25/29	USD		150		142,302
Guanay Finance, Ltd., 6.000%, 12/15/20	USD		82		83,132
VTR Finance BV, 6.875%, 01/15/24	USD		355		366,537
					682,071
China | 0.1%
Green Dragon Gas, Ltd., 10.000%, 11/20/17 (b)	USD		200		162,000
Colombia | 0.3%
Banco de Bogota SA, 6.250%, 05/12/26 (b)	USD		70		71,400
Bancolombia SA, 6.125%, 07/26/20	USD		60		63,750
Ecopetrol SA, 5.875%, 09/18/23	USD		130		138,125
Millicom International Cellular SA, 6.625%, 10/15/21	USD		80		83,600
Transportadora de Gas Internacional SA, 5.700%, 03/20/22	USD		265		272,950
					629,825

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

38  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
Georgia | 0.1%
BGEO Group JSC, 6.000%, 07/26/23	USD		100	$	100,000
Guatemala | 0.1%
Comcel Trust, 6.875%, 02/06/24	USD		165		166,238
India | 0.5%
Greenko Dutch BV, 8.000%, 08/01/19	USD		300		316,650
JSW Steel, Ltd., 4.750%, 11/12/19	USD		200		196,984
Vedanta Resources PLC:
9.500%, 07/18/18	USD		70		74,146
6.000%, 01/31/19	USD		255		256,275
8.250%, 06/07/21	USD		185		192,131
					1,036,186
Israel | 0.3%
Altice Financing SA, 6.625%, 02/15/23 (b)	USD		280		287,700
7.500%, 05/15/26 (b)	USD		225		234,000
					521,700
Macau | 0.1%
MCE Finance, Ltd., 5.000%, 02/15/21	USD		155		155,000
Studio City Co., Ltd., 7.250%, 11/30/21 (b)	USD		60		62,100
					217,100
Mexico | 0.3%
Cemex Finance LLC, 9.375%, 10/12/22	USD		435		474,150
Cemex SAB de CV, 7.750%, 04/16/26	USD		50		55,312
					529,462
Nigeria | 0.1%
IHS Netherlands Holdco BV, 9.500%, 10/27/21 (b)	USD		155		158,692
Peru | 0.2%
Cia Minera Ares SAC, 7.750%, 01/23/21	USD		120		128,700

Description	Security Currency	Principal Amount (000)		Fair Value
Inkia Energy, Ltd., 8.375%, 04/04/21	USD		250	$	258,750
					387,450
Russia | 0.2%
GTH Finance BV, 7.250%, 04/26/23	USD		400		428,808
Singapore | 0.1%
Puma International Financing SA, 6.750%, 02/01/21	USD		200		205,788
South Africa | 0.1%
MTN Mauritius Investment, Ltd., 5.373%, 02/13/22 (b)	USD		200		202,341
South Korea | 0.1%
SK E&S Co., Ltd., 4.875%, 11/26/19 (e), (f)	USD		90		88,200
Woori Bank, 4.500%, 09/27/21 (e), (f)	USD		90		86,379
					174,579
Thailand | 0.1%
PTT Exploration & Production Public Co. Ltd., 4.875%, 12/29/49 (f)	USD		180		181,605
Turkey | 0.2%
KOC Holding AS, 5.250%, 03/15/23	USD		80		78,700
Turkiye Is Bankasi, 5.000%, 04/30/20	USD		200		194,250
					272,950
United Arab Emirates | 0.1%
MAF Global Securities, Ltd., 7.125%, 10/29/18 (e), (f)	USD		260		272,350
United States | 0.0%
Sable International Finance, Ltd., 6.875%, 08/01/22 (b)	USD		65		67,600
Total Corporate Bonds (Cost $9,647,236)					9,699,580

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

Annual Report  39

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
Foreign Government Obligations | 26.8%
Argentina | 3.9%
Republic of Argentina:
6.875%, 04/22/21	USD		2,050	$	2,183,250
7.500%, 04/22/26	USD		1,985		2,079,287
7.500%, 04/22/26 (b)	USD		1,000		1,047,500
8.280%, 12/31/33	USD		1,725		1,853,845
2.500%, 12/31/38 (g)	USD		430		265,095
					7,428,977
Belize | 0.1%
Republic of Belize, 5.000%, 02/20/38 (g)	USD		316		129,560
Brazil | 3.9%
Brazil Letras do Tesouro Nacional, 0.000%, 01/01/20	BRL		10,440		2,333,920
Brazil NTN-B:
6.000%, 08/15/18	BRL		270		245,575
6.000%, 08/15/26	BRL		220		201,065
6.000%, 05/15/35	BRL		830		771,798
6.000%, 08/15/50	BRL		810		761,344
Brazil NTN-F:
10.000%, 01/01/21	BRL		282		79,288
10.000%, 01/01/23	BRL		4,540		1,243,582
10.000%, 01/01/27	BRL		6,370		1,805,050
					7,441,622
Cameroon | 0.2%
Republic of Cameroon, 9.500%, 11/19/25	USD		340		365,500
Colombia | 0.2%
Colombian Titulos De Tesoreria:
7.000%, 05/04/22	COP		790,000		266,355
10.000%, 07/24/24	COP		228,000		89,414
					355,769
Congo | 0.2%
Republic of Congo, 4.000%, 06/30/29 (g)	USD		551		350,187
Costa Rica | 0.5%
Republic of Costa Rica:
4.250%, 01/26/23	USD		525		481,031
4.375%, 04/30/25	USD		475		420,969

Description	Security Currency	Principal Amount (000)		Fair Value
7.158%, 03/12/45	USD		175	$	162,094
					1,064,094
Dominican Republic | 0.4%
Dominican Republic:
7.500%, 05/06/21	USD		420		455,175
5.500%, 01/27/25	USD		70		67,375
6.875%, 01/29/26	USD		210		217,875
					740,425
Ecuador | 1.6%
Republic of Ecuador:
10.500%, 03/24/20	USD		560		599,900
10.750%, 03/28/22	USD		2,300		2,495,500
					3,095,400
Egypt | 0.4%
Arab Republic of Egypt:
5.875%, 06/11/25	USD		635		575,469
5.875%, 06/11/25 (b)	USD		145		131,406
					706,875
El Salvador | 1.2%
Republic of El Salvador:
7.375%, 12/01/19	USD		1,280		1,318,400
7.750%, 01/24/23	USD		125		129,062
5.875%, 01/30/25	USD		636		579,555
6.375%, 01/18/27	USD		260		236,600
8.250%, 04/10/32	USD		14		14,140
7.625%, 02/01/41	USD		110		99,000
					2,376,757
Ethiopia | 0.2%
Federal Republic of Ethiopia, 6.625%, 12/11/24	USD		385		353,719
Gabon | 0.4%
Gabonese Republic, 6.375%, 12/12/24	USD		805		747,644
Ghana | 1.3%
Ghana Government Bonds:
25.480%, 04/24/17	GHS		160		37,658
24.440%, 05/29/17	GHS		50		11,764
23.230%, 02/19/18	GHS		120		28,400
22.490%, 04/23/18	GHS		20		4,644
23.470%, 05/21/18	GHS		100		23,508
Ghana Treasury Note, 22.500%, 12/10/18	GHS		160		38,241
Republic of Ghana:
9.250%, 09/15/22	USD		1,175		1,256,087
7.875%, 08/07/23	USD		555		545,981

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

40  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
8.125%, 01/18/26	USD		471	$	463,935
					2,410,218
Guatemala | 0.1%
Republic of Guatemala, 5.750%, 06/06/22	USD		174		185,963
Indonesia | 0.4%
Indonesia Government Bonds:
7.875%, 04/15/19	IDR		5,678,000		423,769
8.375%, 09/15/26	IDR		4,071,000		309,725
					733,494
Iraq | 0.4%
Republic of Iraq, 5.800%, 01/15/28	USD		885		732,337
Ivory Coast | 0.6%
Ivory Coast:
5.375%, 07/23/24	USD		5		4,812
6.375%, 03/03/28	USD		300		291,375
6.375%, 03/03/28 (b)	USD		250		242,813
5.750%, 12/31/32	USD		594		548,707
					1,087,707
Jordan | 0.4%
Kingdom of Jordan:
6.125%, 01/29/26	USD		200		201,108
5.750%, 01/31/27 (b)	USD		555		525,862
					726,970
Lebanon | 0.8%
Lebanese Republic:
5.450%, 11/28/19	USD		190		185,060
5.800%, 04/14/20	USD		370		362,156
8.250%, 04/12/21	USD		870		921,156
6.100%, 10/04/22	USD		20		19,350
					1,487,722
Malaysia | 0.3%
Malaysia Government Bonds:
3.580%, 09/28/18	MYR		1,640		365,692
3.800%, 08/17/23	MYR		1,528		332,781
					698,473
Mexico | 0.5%
Mexican Bonos:
6.500%, 06/10/21	MXN		13,750		646,317
5.750%, 03/05/26	MXN		5,910		253,051
					899,368

Description	Security Currency	Principal Amount (000)		Fair Value
Mongolia | 0.4%
Mongolia Government International Bonds:
10.875%, 04/06/21	USD		550	$	575,437
5.125%, 12/05/22	USD		180		153,225
					728,662
Mozambique | 0.5%
Mozambique International Bond, 10.500%, 01/18/23	USD		1,592		943,260
Nigeria | 0.2%
Republic of Nigeria, 6.750%, 01/28/21	USD		400		403,500
Pakistan | 0.1%
Islamic Republic of Pakistan, 8.250%, 04/15/24	USD		200		216,105
Paraguay | 0.1%
Republic of Paraguay:
4.625%, 01/25/23	USD		160		161,800
5.000%, 04/15/26 (b)	USD		50		50,500
6.100%, 08/11/44	USD		95		95,119
					307,419
Poland | 0.3%
Poland Government Bonds:
5.750%, 09/23/22	PLN		1,040		281,845
4.000%, 10/25/23	PLN		1,680		418,052
					699,897
Portugal | 0.7%
Republic of Portugal, 5.125%, 10/15/24	USD		1,503		1,454,152
Romania | 0.2%
Romanian Government Bond, 4.750%, 02/24/25	RON		1,290		323,935
Russia | 0.7%
Russia Government Bonds - OFZ:
7.500%, 08/18/21	RUB		26,400		420,294
7.600%, 07/20/22	RUB		26,300		417,548
7.050%, 01/19/28	RUB		32,000		474,810
					1,312,652
Senegal | 0.1%
Republic of Senegal, 8.750%, 05/13/21	USD		200		222,500

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

Annual Report  41

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
Serbia | 0.1%
Serbia Treasury Bond, 6.000%, 02/22/19	RSD		24,500	$	214,032
South Africa | 0.5%
Republic of South Africa:
6.750%, 03/31/21	ZAR		6,890		474,317
10.500%, 12/21/26	ZAR		5,270		423,085
					897,402
Sri Lanka | 0.8%
Republic of Sri Lanka:
6.250%, 07/27/21	USD		420		425,250
5.750%, 01/18/22	USD		270		265,887
5.750%, 01/18/22 (b)	USD		120		118,050
5.875%, 07/25/22	USD		25		24,563
6.125%, 06/03/25	USD		490		462,437
6.850%, 11/03/25	USD		250		246,562
					1,542,749
Turkey | 0.9%
Republic of Turkey, 5.625%, 03/30/21	USD		730		747,337
Turkey Government Bonds:
10.500%, 01/15/20	TRY		1,240		352,041
10.700%, 02/17/21	TRY		1,350		381,050
10.600%, 02/11/26	TRY		722		198,776
					1,679,204
Uganda | 0.2%
Uganda Government Bonds:
16.375%, 09/05/19	UGX		486,800		131,952
18.375%, 02/18/21	UGX		528,900		150,401
16.500%, 05/13/21	UGX		333,700		90,993
					373,346
Ukraine | 1.9%
Ukraine Government Bonds:
7.750%, 09/01/19	USD		2,040		2,045,100
7.750%, 09/01/20	USD		100		98,750
7.750%, 09/01/26	USD		235		219,725
7.750%, 09/01/27	USD		910		846,300
0.000%, 05/31/40 (e)	USD		1,575		472,500
					3,682,375
Uruguay | 0.1%
Republica Orient Uruguay, 5.000%, 09/14/18	UYU		8,006		267,256

Description	Security Currency	Principal Amount (000)		Fair Value
Vietnam | 0.2%
Socialist Republic of Vietnam, 6.750%, 01/29/20	USD		325	$	352,219
Zambia | 0.8%
Republic of Zambia:
5.375%, 09/20/22	USD		1,090		987,812
8.500%, 04/14/24	USD		525		513,188
					1,501,000
Total Foreign Government Obligations (Cost $52,053,179)					51,240,446
Quasi Government Bonds | 1.4%
Indonesia | 0.2%
Majapahit Holding BV, 7.750%, 01/20/20	USD		75		84,187
Perusahaan Listrik Negara PT, 5.500%, 11/22/21	USD		255		273,169
					357,356
Mexico | 0.6%
Petroleos Mexicanos, 4.607%, 03/11/22 (b), (e)	USD		1,075		1,108,594
South Africa | 0.4%
Eskom Holdings SOC, Ltd.:
5.750%, 01/26/21	USD		375		374,062
6.750%, 08/06/23	USD		370		370,925
					744,987
Venezuela | 0.2%
Petroleos de Venezuela SA:
5.250%, 04/12/17	USD		285		255,788
8.500%, 11/02/17	USD		107		84,000
					339,788
Total Quasi Government Bonds (Cost $2,519,558)					2,550,725
Supranationals | 0.1%
European Investment Bank, 7.200%, 07/09/19 (b) (Cost $231,273)	IDR		3,000,000		218,039
US Treasury Securities | 5.2%
US Treasury Notes: 0.875%, 01/31/17	USD		3,400		3,401,353

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

42  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Multi Asset Portfolio (continued)
0.875%, 02/28/17	USD		3,800	$	3,802,546
0.875%, 04/30/17	USD		2,800		2,803,201
Total US Treasury Securities (Cost $10,007,755)					10,007,100
Description			Shares		Fair Value
Warrants | 0.0%
United Kingdom | 0.0%
Gulf Keystone Petroleum, Ltd. Expires 04/18/17 (Cost $0)			64,000	$	0
Short-Term Investment | 12.4%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $23,737,007)			23,737,007		23,737,007

Description	Counterparty	Number of Contracts		Fair Value
Purchased Options | 0.1%
USD vs BRL May 17 3.3 Put, Expires 05/12/17	JPMS		20,200	$	57,166
USD vs BRL May 17 3.35 Put, Expires 05/18/17	JPMS		11,800		42,244
Total Purchased Options (Cost $60,218)					99,410
Total Investments | 97.9% (Cost $183,862,195) (d), (h)				$	186,872,225
Cash and Other Assets in Excess of Liabilities | 2.1%					4,075,205
Net Assets | 100.0%				$	190,947,430

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, 2016:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
ARS		4,492,800	USD		284,085	BNP	01/06/17	$	—	$	1,424
ARS		1,874,560	USD		116,000	BNP	01/17/17		858		—
ARS		3,313,035	USD		207,000	BNP	01/27/17		—		2,171
ARS		4,136,100	USD		255,000	BNP	02/02/17		—		544
ARS		4,220,250	USD		255,000	BNP	03/03/17		—		398
BRL		152,513	USD		46,000	BNP	01/20/17		644		—
BRL		1,734,884	USD		519,738	BRC	01/04/17		13,302		—
BRL		1,734,884	USD		519,971	BRC	01/04/17		13,068		—
BRL		2,626,454	USD		805,883	BRC	01/04/17		1,089		—
BRL		1,734,884	USD		519,738	CIT	01/04/17		13,302		—
BRL		1,734,884	USD		519,660	CIT	01/04/17		13,380		—
BRL		2,626,452	USD		805,883	CIT	01/04/17		1,089		—
BRL		1,734,884	USD		521,064	JPM	01/04/17		11,975		—
BRL		1,734,884	USD		519,893	JPM	01/04/17		13,146		—
BRL		2,626,454	USD		805,883	JPM	01/04/17		1,089		—
BRL		760,617	USD		234,000	JPM	01/20/17		—		1,374
BRL		842,652	USD		257,000	JPM	01/20/17		715		—
BRL		1,908,985	USD		559,000	JPM	01/20/17		24,840		—
BRL		472,010	USD		144,828	SCB	01/04/17		196		—
BRL		1,734,884	USD		519,582	SCB	01/04/17		13,458		—
BRL		1,734,884	USD		519,815	SCB	01/04/17		13,224		—
BRL		2,626,454	USD		805,883	SCB	01/04/17		1,089		—
BRL		3,744,560	USD		1,148,955	SCB	01/04/17		1,553		—
BRL		1,734,883	USD		519,737	UBS	01/04/17		13,302		—
BRL		1,734,883	USD		520,220	UBS	01/04/17		12,819		—
BRL		2,626,454	USD		805,883	UBS	01/04/17		1,089		—
COP		842,052,000	USD		282,000	SCB	01/13/17		—		1,977
COP		1,439,096,000	USD		464,000	SCB	01/13/17		14,569		—
EGP		1,840,050	USD		174,000	BNP	02/24/17		—		73,881
EGP		1,002,400	USD		56,000	CIT	05/30/17		—		2,773
EUR		192,000	PLN		865,286	JPM	01/20/17		—		4,419
EUR		206,561	RSD		25,592,859	CIT	01/09/17		—		562
EUR		290,000	USD		308,920	JPM	02/01/17		—		3,213
GHS		543,375	USD		115,000	BRC	07/17/17		—		3,089
GHS		481,500	USD		107,000	CIT	04/06/17		—		1,655
HUF		211,946,710	USD		722,000	BNP	02/02/17		79		—
HUF		211,802,310	USD		722,000	BNP	03/02/17		11		—
IDR		4,808,227,813	USD		338,013	BRC	12/11/17		1,523		—
IDR		6,156,547,287	USD		433,072	BRC	12/13/17		1,494		—
IDR		4,808,227,813	USD		333,951	BRC	12/27/17		4,448		—
IDR		6,156,547,287	USD		427,568	BRC	12/27/17		5,726		—
IDR		2,280,370,000	USD		163,000	CIT	03/22/17		4,366		—
IDR		2,310,270,000	USD		159,000	CIT	03/22/17		10,560		—

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

44  Annual Report

Lazard Emerging Markets Multi Asset Portfolio (continued)

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
IDR		2,315,680,000	USD		164,000	CIT	05/02/17	$	5,018	$	—
IDR		10,413,450,000	USD		730,000	CIT	12/14/17		4,889		—
IDR		10,402,500,000	USD		730,000	CIT	12/15/17		3,962		—
IDR		10,402,500,000	USD		721,794	CIT	12/27/17		10,326		—
IDR		10,402,500,000	USD		721,945	CIT	12/27/17		10,176		—
IDR		2,811,050,000	USD		209,000	HSB	01/23/17		—		894
IDR		1,908,900,000	USD		135,000	HSB	05/09/17		4,193		—
IDR		5,576,022,188	USD		391,988	JPM	12/11/17		1,766		—
IDR		4,509,889,709	USD		316,928	JPM	12/13/17		1,406		—
IDR		10,402,500,000	USD		730,000	JPM	12/14/17		4,116		—
IDR		4,509,889,709	USD		313,187	JPM	12/27/17		4,216		—
IDR		5,576,022,188	USD		387,493	JPM	12/27/17		4,943		—
IDR		5,835,916,604	USD		405,216	JPM	12/27/17		5,512		—
ILS		428,591	USD		111,000	BNP	01/25/17		315		—
INR		15,709,400	USD		229,000	JPM	04/17/17		—		313
INR		21,903,375	USD		325,000	SCB	01/09/17		—		2,410
INR		38,999,300	USD		571,000	SCB	01/23/17		2,578		—
KES		24,113,700	USD		229,000	CIT	03/13/17		3,135		—
KRW		386,208,900	USD		330,000	SCB	01/13/17		—		10,238
KZT		77,958,000	USD		213,000	HSB	03/29/17		14,735		—
KZT		75,895,000	USD		215,000	JPM	01/09/17		12,137		—
KZT		75,895,000	USD		226,721	JPM	01/23/17		—		624
KZT		33,312,000	USD		96,000	SCB	01/23/17		3,239		—
KZT		123,855,000	USD		353,871	SCB	02/14/17		12,487		—
MXN		620,656	USD		32,000	CIT	01/26/17		—		2,153
MXN		1,377,691	USD		66,000	CIT	01/26/17		253		—
MYR		296,810	USD		67,000	JPM	03/08/17		—		967
PEN		693,400	USD		200,000	BNP	02/21/17		5,314		—
PEN		1,251,379	USD		364,568	BRC	02/28/17		5,565		—
PEN		740,877	USD		219,000	CIT	01/06/17		1,709		—
PEN		759,246	USD		219,848	CIT	03/06/17		4,515		—
PEN		756,224	USD		219,609	HSB	02/02/17		4,933		—
PEN		1,680,884	USD		493,000	SCB	01/17/17		7,074		—
PHP		10,628,070	USD		211,000	HSB	03/14/17		2,267		—
PHP		21,025,200	USD		420,000	JPM	01/11/17		2,812		—
PHP		18,045,720	USD		360,439	JPM	02/03/17		2,271		—
PLN		995,380	USD		240,000	JPM	01/20/17		—		2,208
RON		984,191	USD		250,577	CIT	04/13/17		—		21,748
RSD		25,592,859	EUR		207,000	CIT	01/09/17		99		—
RSD		25,592,859	EUR		205,979	CIT	02/14/17		—		9
RSD		26,094,600	EUR		210,000	CIT	02/14/17		8		—
RUB		17,418,121	USD		271,080	BRC	01/17/17		12,360		—
RUB		30,632,160	USD		480,000	BRC	01/17/17		18,469		—
RUB		25,446,554	USD		393,000	CAB	01/30/17		19,992		—

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

Annual Report  45

Lazard Emerging Markets Multi Asset Portfolio (continued)

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
RUB		13,519,240	USD		212,000	JPM	01/09/17	$	8,380	$	—
RUB		29,472,657	USD		458,920	JPM	01/17/17		20,681		—
RUB		9,662,094	USD		156,000	JPM	01/30/17		814		—
THB		15,879,830	USD		446,000	SCB	01/09/17		—		2,586
TRY		1,195,819	USD		341,000	JPM	02/23/17		—		5,619
UGX		451,714,262	USD		124,921	CIT	01/10/17		18		—
UGX		555,849,000	USD		153,847	CIT	01/10/17		—		106
UGX		466,431,000	USD		129,997	SCB	01/17/17		—		1,343
USD		520,000	AUD		503,675	SCB	01/17/17		16,325		—
USD		532,320	BRL		533,040	BRC	01/04/17		—		720
USD		532,320	BRL		533,040	BRC	01/04/17		—		720
USD		763,948	BRL		806,973	BRC	01/04/17		—		43,024
USD		515,361	BRL		528,678	BRC	02/02/17		—		13,317
USD		515,468	BRL		528,678	BRC	02/02/17		—		13,210
USD		532,320	BRL		533,040	CIT	01/04/17		—		720
USD		532,320	BRL		533,040	CIT	01/04/17		—		720
USD		763,848	BRL		806,972	CIT	01/04/17		—		43,124
USD		58,000	BRL		59,832	CIT	01/20/17		—		1,832
USD		515,185	BRL		528,678	CIT	02/02/17		—		13,493
USD		515,353	BRL		528,678	CIT	02/02/17		—		13,325
USD		532,320	BRL		533,040	JPM	01/04/17		—		720
USD		532,320	BRL		533,040	JPM	01/04/17		—		720
USD		764,171	BRL		806,973	JPM	01/04/17		—		42,802
USD		515,399	BRL		528,678	JPM	02/02/17		—		13,279
USD		516,673	BRL		528,678	JPM	02/02/17		—		12,005
USD		140,000	BRL		145,024	SCB	01/04/17		—		5,024
USD		532,320	BRL		533,040	SCB	01/04/17		—		720
USD		532,320	BRL		533,040	SCB	01/04/17		—		720
USD		763,959	BRL		806,973	SCB	01/04/17		—		43,013
USD		1,110,816	BRL		1,150,508	SCB	01/04/17		—		39,693
USD		515,215	BRL		528,678	SCB	02/02/17		—		13,462
USD		515,322	BRL		528,678	SCB	02/02/17		—		13,355
USD		532,320	BRL		533,039	UBS	01/04/17		—		720
USD		532,320	BRL		533,039	UBS	01/04/17		—		720
USD		763,970	BRL		806,973	UBS	01/04/17		—		43,002
USD		771,000	BRL		1,087,043	UBS	01/20/17		—		316,043
USD		515,368	BRL		528,677	UBS	02/02/17		—		13,309
USD		515,736	BRL		528,677	UBS	02/02/17		—		12,942
USD		650,000	CAD		639,245	BRC	01/17/17		10,755		—
USD		332,383	CLP		323,924	BRC	01/17/17		8,459		—
USD		332,251	CLP		323,924	JPM	01/17/17		8,327		—
USD		332,256	CLP		323,924	SCB	01/17/17		8,332		—
USD		332,307	CLP		323,924	UBS	01/17/17		8,383		—

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

46  Annual Report

Lazard Emerging Markets Multi Asset Portfolio (continued)

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
USD		175,243	EGP		100,119	BNP	02/24/17		$  75,124		$         —
USD		55,503	EUR		54,382	CIT	03/01/17		1,121		—
USD		463,350	EUR		459,142	CIT	03/01/17		4,208		—
USD		345,000	EUR		342,177	JPM	02/01/17		2,823		—
USD		429,289	EUR		420,175	JPM	02/01/17		9,113		—
USD		1,129,785	EUR		1,085,220	JPM	02/01/17		44,564		—
USD		108,132	GHS		105,345	CIT	04/06/17		2,786		—
USD		116,245	GHS		111,910	CIT	07/17/17		4,334		—
USD		594,039	HUF		554,850	BNP	08/29/17		39,189		—
USD		334,718	IDR		339,535	BRC	12/11/17		—		4,817
USD		428,371	IDR		434,565	BRC	12/13/17		—		6,194
USD		319,103	IDR		323,042	CIT	12/14/17		—		3,938
USD		723,149	IDR		734,116	CIT	12/14/17		—		10,967
USD		723,225	IDR		733,962	CIT	12/15/17		—		10,737
USD		327,859	IDR		326,092	JPM	01/23/17		1,767		—
USD		388,167	IDR		393,754	JPM	12/11/17		—		5,586
USD		313,731	IDR		318,335	JPM	12/13/17		—		4,603
USD		405,836	IDR		411,847	JPM	12/14/17		—		6,011
USD		161,000	IDR		160,394	SCB	01/23/17		606		—
USD		116,155	KES		116,067	CIT	03/13/17		87		—
USD		116,043	KES		116,067	JPM	03/13/17		—		24
USD		520,000	KRW		502,555	SCB	01/17/17		17,445		—
USD		227,401	KZT		227,137	JPM	01/09/17		264		—
USD		225,312	KZT		227,735	JPM	03/29/17		—		2,423
USD		165,000	MXN		148,619	CIT	01/26/17		16,381		—
USD		341,000	MXN		312,296	CIT	01/26/17		28,704		—
USD		286,396	PLN		286,407	JPM	01/20/17		—		11
USD		248,942	RON		228,829	JPM	04/13/17		20,113		—
USD		1,270,000	RUB		1,281,526	BRC	01/17/17		—		11,526
USD		219,184	RUB		220,380	JPM	01/09/17		—		1,197
USD		436,765	RUB		469,687	JPM	01/30/17		—		32,922
USD		366,319	SGD		359,584	BRC	01/17/17		6,735		—
USD		366,324	SGD		359,582	CIT	01/17/17		6,741		—
USD		366,261	SGD		359,584	JPM	01/17/17		6,677		—
USD		366,408	SGD		359,584	SCB	01/17/17		6,824		—
USD		214,000	TRY		211,596	CAB	02/23/17		2,404		—
USD		467,000	TRY		450,490	CAB	02/23/17		16,510		—
USD		335,029	TRY		335,381	JPM	02/23/17		—		352
USD		910,000	TWD		897,798	BRC	01/17/17		12,202		—
USD		265,000	UYU		260,488	CIT	01/23/17		4,512		—
USD		498,000	ZAR		503,731	CIT	02/27/17		—		5,731
ZAR		3,184,389	USD		221,000	CIT	02/27/17		8,525		—
ZAR		10,259,108	USD		740,000	SCB	01/17/17		5,248		—
Total gross unrealized appreciation/depreciation on Forward Currency Contracts									$840,274		$972,191

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

Annual Report  47

Lazard Emerging Markets Multi Asset Portfolio (concluded)

Written Options open at December 31, 2016:

Description	Counterparty	Number of Contracts		Strike Price		Expiration Date	Premium		Fair Value
USD vs BRL May 17 3.15 Put	JPMS		14,800	$	3.15	05/12/17	$	10,671	$	(18,796	)
USD vs BRL May 17 3.15 Put	JPMS		5,400		3.15	05/12/17		4,320		(6,858	)
USD vs BRL May 17 3.15 Put	JPMS		11,800		3.18	05/18/17		8,773		(18,054	)
Total Written Options			32,000				$	23,764	$	(43,708	)

Credit Default Swap Agreements open at December 31, 2016:

Referenced Obligation	Counterparty	Notional Amount	Expiration Date	Buy/ Sell	Receive (Pay) Rate		S&P Credit Rating	Fair Value			Upfront Premiums Paid (Received)			Unrealized Appreciation		Unrealized Depreciation
CDX EM 26	BRC	1,200,000	12/20/21	Sell	1.000	%	CCC - AA-	$	(74,932	)	$	(92,160	)	$	17,228	$	—
CDX EM 26	BRC	6,650,000	12/20/21	Sell	1.000		CCC - AA-		(415,248	)		(505,400	)		90,152		—
CDX EM 26	BRC	450,000	12/20/21	Sell	1.000		CCC - AA-		(28,099	)		(33,525	)		5,426		—
CDX EM 26	BRC	2,400,000	12/20/21	Sell	1.000		CCC - AA-		(149,864	)		(186,000	)		36,136		—
Republic of South Africa	BRC	500,000	12/20/21	Sell	1.000		BBB-		(26,051	)		(35,618	)		9,567		—
Republic of South Africa	BRC	1,100,000	12/20/21	Sell	1.000		BBB-		(57,312	)		(71,287	)		13,975		—
Republic of South Africa	BRC	600,000	12/20/21	Sell	1.000		BBB-		(31,261	)		(42,123	)		10,862		—
Republic of South Africa	BRC	1,500,000	12/20/21	Sell	1.000		BBB-		(78,153	)		(105,807	)		27,654		—
Republic of Turkey	BRC	290,000	12/20/21	Sell	1.000		NR		(22,614	)		(24,211	)		1,597		—
Republic of Turkey	BRC	1,000,000	12/20/21	Sell	1.000		NR		(77,982	)		(82,212	)		4,230		—
Republic of Turkey	BRC	2,400,000	12/20/21	Sell	1.000		NR		(187,161	)		(205,157	)		17,996		—
United Mexican States	BRC	2,650,000	12/20/21	Buy	(1.000	)	BBB+		66,324			103,850			—		37,526
United Mexican States	BRC	1,900,000	12/20/21	Buy	(1.000	)	BBB+		47,553			82,728			—		35,175
United Mexican States	BRC	2,840,000	12/20/21	Buy	(1.000	)	BBB+		71,079			115,230			—		44,151
Total Credit Default Swap Agreements								$	(963,721	)	$	(1,081,692	)	$	234,823	$	116,852

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

48  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio
Corporate Bonds | 4.7%
Argentina | 0.1%
Cablevision SA, 6.500%, 06/15/21	USD		285	$	289,631
Barbados | 0.1%
Columbus Cable Barbados, Ltd., 7.375%, 03/30/21	USD		325		345,846
Brazil | 1.9%
Petrobras Global Finance BV, 8.375%, 05/23/21	USD		4,473		4,819,657
Chile | 0.3%
VTR Finance BV, 6.875%, 01/15/24	USD		600		619,500
Colombia | 0.1%
Transportadora de Gas Internacional SA, 5.700%, 03/20/22	USD		290		298,700
Georgia | 0.2%
BGEO Group JSC, 6.000%, 07/26/23	USD		575		575,000
Guatemala | 0.1%
Comcel Trust, 6.875%, 02/06/24	USD		295		297,213
India | 0.1%
Vedanta Resources PLC, 6.000%, 01/31/19	USD		295		296,475
Israel | 0.2%
Altice Financing SA, 6.625%, 02/15/23 (b)	USD		300		308,250
Delek & Avner Tamar Bond, Ltd., 5.082%, 12/30/23 (b)	USD		195		199,875
					508,125
Mexico | 0.3%
Cemex SAB de CV, 7.250%, 01/15/21	USD		585		623,025

Description	Security Currency	Principal Amount (000)		Fair Value
Morocco | 0.3%
OCP SA, 5.625%, 04/25/24	USD		635	$	655,637
Peru | 0.1%
Consorcio Transmantaro SA, 4.375%, 05/07/23	USD		290		287,463
Qatar | 0.1%
Ooredoo International Finance, Ltd., 3.750%, 06/22/26	USD		300		293,448
Russia | 0.3%
GTH Finance BV, 7.250%, 04/26/23	USD		770		825,455
Turkey | 0.4%
Turkiye Garanti Bankasi AS, 4.750%, 10/17/19	USD		300		298,275
Turkiye Is Bankasi, 5.500%, 04/21/19	USD		590		595,782
					894,057
Total Corporate Bonds (Cost $11,392,194)					11,629,232
Foreign Government Obligations | 76.6%
Angola | 0.4%
Republic of Angola, 9.500%, 11/12/25 (b)	USD		767		741,114
Republic of Angola Northern Lights III BV, 7.000%, 08/16/19	USD		223		225,951
					967,065
Argentina | 3.1%
Republic of Argentina: 7.500%, 04/22/26	USD		2,100		2,199,750
7.500%, 04/22/26 (b)	USD		2,855		2,990,612
2.500%, 12/31/38 (g)	USD		1,785		1,100,453
7.625%, 04/22/46 (b)	USD		1,365		1,358,175
					7,648,990

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

Annual Report  49

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
Armenia | 0.1%
Republic of Armenia, 7.150%, 03/26/25	USD		305	$	320,250
Azerbaijan | 0.4%
Republic of Azerbaijan, 4.750%, 03/18/24	USD		1,105		1,096,712
Belize | 0.2%
Republic of Belize, 5.000%, 02/20/38 (g)	USD		995		407,950
Brazil | 7.9%
Brazil Letras do Tesouro Nacional:
0.000%, 10/01/18	BRL		1,430		365,553
0.000%, 01/01/19	BRL		3,440		857,894
0.000%, 01/01/20	BRL		19,770		4,419,694
Brazil NTN-B, 6.000%, 08/15/50	BRL		2,048		1,924,393
Brazil NTN-F:
10.000%, 01/01/23	BRL		13,700		3,955,046
10.000%, 01/01/27	BRL		22,375		6,340,343
Federal Republic of Brazil:
6.000%, 04/07/26	USD		610		632,113
5.000%, 01/27/45	USD		1,490		1,203,175
					19,698,211
Cameroon | 0.1%
Republic of Cameroon, 9.500%, 11/19/25	USD		225		241,875
Chile | 0.1%
Republic of Chile, 5.500%, 08/05/20	CLP		110,000		172,377
Colombia | 5.1%
Colombian Titulos De Tesoreria:
10.000%, 07/24/24	COP		13,386,500		5,249,720
7.500%, 08/26/26	COP		6,535,000		2,233,503
6.000%, 04/28/28	COP		6,312,000		1,898,688
Republic of Colombia:
4.375%, 07/12/21	USD		600		627,750
4.000%, 02/26/24	USD		220		221,925
4.500%, 01/28/26	USD		825		849,750

Description	Security Currency	Principal Amount (000)		Fair Value
7.375%, 09/18/37	USD		1,250	$	1,515,625
6.125%, 01/18/41	USD		60		64,800
					12,661,761
Costa Rica | 0.6%
Republic of Costa Rica:
4.375%, 04/30/25	USD		740		655,825
5.625%, 04/30/43	USD		875		687,969
7.000%, 04/04/44	USD		45		41,231
					1,385,025
Dominican Republic | 1.3%
Dominican Republic:
7.500%, 05/06/21	USD		970		1,051,237
5.500%, 01/27/25	USD		170		163,625
6.875%, 01/29/26	USD		650		674,375
6.875%, 01/29/26 (b)	USD		405		420,187
7.450%, 04/30/44	USD		655		659,094
6.850%, 01/27/45	USD		355		335,919
					3,304,437
Ecuador | 2.7%
Republic of Ecuador:
10.500%, 03/24/20	USD		410		439,212
10.500%, 03/24/20 (b)	USD		210		224,963
10.750%, 03/28/22	USD		3,568		3,871,280
10.750%, 03/28/22 (b)	USD		990		1,072,912
7.950%, 06/20/24	USD		550		525,250
9.650%, 12/13/26 (b)	USD		680		697,300
					6,830,917
Egypt | 0.3%
Arab Republic of Egypt:
5.750%, 04/29/20	USD		295		297,213
5.875%, 06/11/25	USD		490		444,062
					741,275
El Salvador | 1.7%
Republic of El Salvador:
7.375%, 12/01/19	USD		300		309,000
7.750%, 01/24/23	USD		420		433,650
5.875%, 01/30/25	USD		1,421		1,294,886
6.375%, 01/18/27	USD		1,530		1,392,300
8.250%, 04/10/32	USD		145		146,450
7.650%, 06/15/35	USD		505		464,600
7.625%, 02/01/41	USD		307		276,300
					4,317,186
Ethiopia | 0.1%
Federal Republic of Ethiopia, 6.625%, 12/11/24	USD		315		289,406

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

50  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
Gabon | 0.2%
Gabonese Republic, 6.375%, 12/12/24	USD		620	$	575,825
Georgia | 0.1%
Republic of Georgia, 6.875%, 04/12/21	USD		320		348,384
Ghana | 1.8%
Ghana Government Bonds:
25.480%, 04/24/17	GHS		380		89,439
24.440%, 05/29/17	GHS		80		18,823
23.230%, 02/19/18	GHS		460		108,866
22.490%, 04/23/18	GHS		150		34,832
23.470%, 05/21/18	GHS		390		91,680
19.040%, 09/24/18	GHS		50		11,243
Ghana Treasury Note, 22.500%, 12/10/18	GHS		440		105,163
Republic of Ghana:
9.250%, 09/15/22	USD		1,130		1,207,981
7.875%, 08/07/23	USD		1,770		1,741,238
8.125%, 01/18/26	USD		1,180		1,162,300
					4,571,565
Guatemala | 0.3%
Republic of Guatemala, 4.500%, 05/03/26	USD		671		645,838
Honduras | 0.1%
Republic of Honduras, 8.750%, 12/16/20	USD		310		345,154
Hungary | 0.9%
Hungary Government Bonds:
6.000%, 11/24/23	HUF		311,220		1,306,415
5.500%, 06/24/25	HUF		224,170		910,970
					2,217,385
Indonesia | 6.6%
Indonesia Government Bonds:
7.875%, 04/15/19	IDR		30,938,000		2,309,012
8.375%, 03/15/24	IDR		16,703,000		1,260,892
8.375%, 09/15/26	IDR		37,462,000		2,850,143
9.000%, 03/15/29	IDR		3,987,000		312,001
8.750%, 05/15/31	IDR		52,728,000		4,082,394
8.375%, 03/15/34	IDR		14,838,000		1,103,007

Description	Security Currency	Principal Amount (000)		Fair Value
Indonesia Treasury Bond, 8.250%, 05/15/36	IDR		11,191,000	$	838,235
Republic of Indonesia:
5.875%, 03/13/20	USD		915		998,494
3.750%, 04/25/22	USD		175		175,656
3.375%, 04/15/23	USD		670		652,412
4.125%, 01/15/25 (b)	USD		650		645,937
7.750%, 01/17/38	USD		470		604,537
6.750%, 01/15/44	USD		450		544,661
					16,377,381
Iraq | 0.3%
Republic of Iraq, 5.800%, 01/15/28	USD		845		699,238
Ivory Coast | 1.7%
Ivory Coast:
5.375%, 07/23/24	USD		630		606,331
5.750%, 12/31/32	USD		3,850		3,556,539
					4,162,870
Jamaica | 0.6%
Government of Jamaica:
8.500%, 02/28/36	USD		115		131,675
8.000%, 03/15/39	USD		1,238		1,366,511
					1,498,186
Jordan | 0.2%
Kingdom of Jordan:
6.125%, 01/29/26 (b)	USD		155		155,969
5.750%, 01/31/27 (b)	USD		400		379,000
					534,969
Kazakhstan | 0.7%
Republic of Kazakhstan:
3.875%, 10/14/24	USD		515		515,000
6.500%, 07/21/45 (b)	USD		1,045		1,195,219
					1,710,219
Kenya | 0.6%
Republic of Kenya, 6.875%, 06/24/24	USD		1,560		1,474,200
Lebanon | 1.3%
Lebanese Republic:
5.450%, 11/28/19	USD		1,210		1,178,540
8.250%, 04/12/21	USD		2,040		2,159,952
					3,338,492

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

Annual Report  51

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
Malaysia | 4.3%
Malaysia Government Bonds:
3.814%, 02/15/17	MYR		7,280	$	1,623,933
3.654%, 10/31/19	MYR		4,130		921,102
4.048%, 09/30/21	MYR		20,520		4,607,394
3.620%, 11/30/21	MYR		1,330		295,218
3.795%, 09/30/22	MYR		4,650		1,018,159
3.955%, 09/15/25	MYR		3,440		744,017
4.498%, 04/15/30	MYR		2,540		548,654
4.254%, 05/31/35	MYR		3,910		819,305
					10,577,782
Mexico | 4.7%
Mexican Bonos:
5.000%, 12/11/19	MXN		123,350		5,638,327
10.000%, 12/05/24	MXN		42,347		2,361,408
7.750%, 05/29/31	MXN		26,600		1,283,113
10.000%, 11/20/36	MXN		38,519		2,255,956
Mexican Udibonos, 4.000%, 11/15/40	MXN		3,226		161,967
					11,700,771
Mongolia | 0.7%
Mongolia Government International Bonds:
4.125%, 01/05/18	USD		1,066		1,031,355
10.875%, 04/06/21	USD		280		292,950
5.125%, 12/05/22	USD		580		493,725
					1,818,030
Morocco | 0.3%
Kingdom of Morocco:
4.250%, 12/11/22	USD		355		361,830
5.500%, 12/11/42	USD		330		335,168
					696,998
Mozambique | 0.5%
Mozambique International Bond, 10.500%, 01/18/23	USD		1,913		1,133,452
Namibia | 0.2%
Republic of Namibia, 5.250%, 10/29/25 (b)	USD		495		483,244
Nigeria | 0.2%
Republic of Nigeria, 6.750%, 01/28/21	USD		470		474,113

Description	Security Currency	Principal Amount (000)		Fair Value
Oman | 0.2%
Oman Government International Bond, 3.625%, 06/15/21 (b)	USD		430	$	429,463
Pakistan | 0.3%
Islamic Republic of Pakistan:
7.250%, 04/15/19	USD		240		253,415
8.250%, 04/15/24	USD		555		599,691
					853,106
Panama | 0.2%
Republic of Panama, 8.875%, 09/30/27	USD		304		417,240
Paraguay | 1.0%
Republic of Paraguay:
4.625%, 01/25/23	USD		1,440		1,456,200
5.000%, 04/15/26 (b)	USD		630		636,300
6.100%, 08/11/44 (b)	USD		420		420,525
					2,513,025
Peru | 2.4%
Republic of Peru:
6.350%, 08/12/28 (b)	PEN		941		275,553
6.950%, 08/12/31	PEN		3,500		1,058,599
8.750%, 11/21/33	USD		900		1,314,000
6.900%, 08/12/37	PEN		11,020		3,259,306
					5,907,458
Philippines | 0.2%
Republic of Philippines, 3.625%, 09/09/25	PHP		29,000		533,979
Poland | 2.8%
Poland Government Bonds:
1.500%, 04/25/20	PLN		2,690		621,844
5.250%, 10/25/20	PLN		1,900		496,362
5.750%, 09/23/22	PLN		8,950		2,425,492
3.250%, 07/25/25	PLN		14,850		3,474,552
					7,018,250
Romania | 0.2%
Romanian Government Bond, 4.750%, 02/24/25	RON		1,560		391,735

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

52  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
Russia | 3.2%
Russia Foreign Bonds:
4.750%, 05/27/26 (b)	USD		600	$	613,500
12.750%, 06/24/28	USD		435		737,325
Russia Government Bonds - OFZ:
7.600%, 04/14/21	RUB		48,480		772,532
7.500%, 08/18/21	RUB		202,410		3,222,417
7.000%, 08/16/23	RUB		78,630		1,198,856
7.050%, 01/19/28	RUB		91,020		1,350,537
					7,895,167
Saudi Arabia | 0.1%
Republic of Suriname, 9.250%, 10/26/26 (b)	USD		150		146,025
Senegal | 0.6%
Republic of Senegal:
8.750%, 05/13/21	USD		235		261,437
6.250%, 07/30/24	USD		1,200		1,194,000
					1,455,437
South Africa | 4.9%
Republic of South Africa:
7.750%, 02/28/23	ZAR		22,457		1,566,867
5.875%, 09/16/25	USD		270		288,225
10.500%, 12/21/26	ZAR		57,360		4,604,965
4.300%, 10/12/28	USD		210		194,775
8.250%, 03/31/32	ZAR		60,360		3,958,853
6.250%, 03/08/41	USD		450		491,625
5.375%, 07/24/44	USD		470		461,775
8.750%, 02/28/48	ZAR		7,600		505,333
					12,072,418
Sri Lanka | 1.3%
Republic of Sri Lanka:
6.250%, 07/27/21	USD		210		212,625
5.750%, 01/18/22	USD		70		68,934
5.750%, 01/18/22 (b)	USD		470		462,362
5.875%, 07/25/22	USD		200		196,500
6.125%, 06/03/25	USD		535		504,906
6.850%, 11/03/25	USD		235		231,769
6.850%, 11/03/25 (b)	USD		1,615		1,592,794
					3,269,890

Description	Security Currency	Principal Amount (000)		Fair Value
Thailand | 1.1%
Thailand Government Bonds:
3.625%, 06/16/23	THB		4,210	$	125,317
3.850%, 12/12/25	THB		69,602		2,124,418
3.580%, 12/17/27	THB		18,170		534,661
					2,784,396
Turkey | 3.5%
Republic of Turkey:
7.000%, 03/11/19	USD		230		244,375
7.500%, 11/07/19	USD		115		125,062
5.625%, 03/30/21	USD		540		552,825
6.250%, 09/26/22	USD		885		919,117
4.875%, 10/09/26	USD		965		891,419
6.000%, 01/14/41	USD		535		494,875
Turkey Government Bonds:
7.100%, 03/08/23	TRY		7,280		1,697,648
8.000%, 03/12/25	TRY		15,900		3,757,592
					8,682,913
Ukraine | 2.5%
Ukraine Government Bonds:
7.750%, 09/01/19	USD		1,470		1,473,675
7.750%, 09/01/19 (b)	USD		36		36,090
7.750%, 09/01/20	USD		1,640		1,619,500
7.750%, 09/01/20 (b)	USD		182		179,907
7.750%, 09/01/21	USD		865		844,638
7.750%, 09/01/21 (b)	USD		253		246,675
7.750%, 09/01/22	USD		1,020		984,300
7.750%, 09/01/22 (b)	USD		233		224,845
7.750%, 09/01/23 (b)	USD		142		135,787
7.750%, 09/01/26 (b)	USD		254		237,490
7.750%, 09/01/27 (b)	USD		315		292,950
					6,275,857
Venezuela | 0.7%
Republic of Venezuela:
13.625%, 08/15/18	USD		55		44,440
7.000%, 12/01/18	USD		209		133,760
7.750%, 10/13/19	USD		245		136,587
6.000%, 12/09/20	USD		195		93,600
12.750%, 08/23/22	USD		160		99,600
9.000%, 05/07/23	USD		255		122,400
8.250%, 10/13/24	USD		260		120,250
7.650%, 04/21/25	USD		270		122,175
11.750%, 10/21/26	USD		425		238,000
9.250%, 09/15/27	USD		365		187,975
9.250%, 05/07/28	USD		490		229,075
11.950%, 08/05/31	USD		392		219,520
9.375%, 01/13/34	USD		140		66,150
7.000%, 03/31/38	USD		110		47,025
					1,860,557

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

Annual Report  53

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
Vietnam | 0.2%
Socialist Republic of Vietnam, 4.800%, 11/19/24	USD		540	$	531,822
Zambia | 0.8%
Republic of Zambia:
5.375%, 09/20/22	USD		215		194,844
8.500%, 04/14/24	USD		1,910		1,867,025
					2,061,869
Total Foreign Government Obligations (Cost $199,699,036)					190,568,140
Quasi Government Bonds | 9.0%
Costa Rica | 0.2%
Banco Nacional de Costa Rica, 5.875%, 04/25/21 (b)	USD		540		546,075
Ecuador | 0.2%
EP Petroecuador, 6.627%, 09/24/19 (e)	USD		363		366,789
Indonesia | 1.9%
Perusahaan Penerbit SBSN Indonesia III:
4.325%, 05/28/25 (b)	USD		760		756,200
4.550%, 03/29/26 (b)	USD		830		833,901
PT Pertamina Persero:
4.875%, 05/03/22	USD		1,487		1,532,353
4.300%, 05/20/23	USD		350		347,176
6.000%, 05/03/42	USD		630		607,162
5.625%, 05/20/43	USD		660		606,471
					4,683,263
Kazakhstan | 0.8%
KazMunayGas National Co. JSC, 9.125%, 07/02/18	USD		1,725		1,871,625
Mexico | 1.3%
Banco Nacional de Comercio Exterior SNC, 3.800%, 08/11/26 (b), (e)	USD		640		600,000
Comision Federal de Electricidad, 4.750%, 02/23/27 (b)	USD		380		364,800

Description	Security Currency	Principal Amount (000)		Fair Value
Petroleos Mexicanos:
4.607%, 03/11/22 (b), (e)	USD		635	$	654,844
5.375%, 03/13/22 (b)	USD		635		650,227
5.500%, 06/27/44	USD		1,325		1,102,665
					3,372,536
Oman | 0.4%
Lamar Funding, Ltd., 3.958%, 05/07/25	USD		1,185		1,087,238
Peru | 0.3%
Corp. Financiera de Desarrollo SA, 4.750%, 07/15/25	USD		655		677,925
South Africa | 1.7%
Eskom Holdings SOC, Ltd.:
5.750%, 01/26/21	USD		1,170		1,167,075
6.750%, 08/06/23	USD		950		952,375
7.850%, 04/02/26	ZAR		9,000		570,717
Transnet SOC, Ltd., 9.500%, 05/13/21 (b)	ZAR		24,000		1,636,570
					4,326,737
Tunisia | 0.1%
Banque Centrale de Tunisie SA, 5.750%, 01/30/25	USD		360		334,800
Turkey | 0.4%
Export Credit Bank of Turkey, 5.375%, 02/08/21	USD		635		619,919
TC Ziraat Bankasi AS, 4.750%, 04/29/21	USD		280		267,400
					887,319
Ukraine | 0.7%
Ukreximbank Via Biz Finance PLC:
9.625%, 04/27/22	USD		265		259,038
9.750%, 01/22/25	USD		1,495		1,410,906
					1,669,944
Venezuela | 1.0%
Petroleos de Venezuela SA:
5.250%, 04/12/17	USD		1,205		1,081,487
8.500%, 11/02/17	USD		432		339,937
8.500%, 10/27/20 (b)	USD		285		212,325
9.000%, 11/17/21	USD		235		123,669
12.750%, 02/17/22	USD		270		166,725
6.000%, 05/16/24	USD		310		119,738
6.000%, 11/15/26	USD		375		144,094
5.375%, 04/12/27	USD		367		137,166
9.750%, 05/17/35	USD		255		122,719
5.500%, 04/12/37	USD		290		107,300
					2,555,160

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

54   Annual Report

Description		Shares		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
Total Quasi Government Bonds (Cost $23,853,611)				$	22,379,411
Short-Term Investment | 8.2%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $20,543,082)			20,543,082		20,543,082
Description	Counterparty	Number of Contracts		Fair Value
Purchased Options | 0.1%
USD vs BRL May 17 3.3 Put, Expires 05/12/17	JPMS		46,900	$	132,727
USD vs BRL May 17 3.35 Put, Expires 05/18/17	JPMS		38,900		139,262
Total Purchased Options (Cost $162,400)					271,989

Description	Fair Value
Total Investments | 98.6% (Cost $255,650,323) (d), (h)	$	245,391,854
Cash and Other Assets in Excess of Liabilities | 1.4%		3,386,539
Net Assets | 100.0%	$	248,778,393

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

Annual Report  55

Lazard Emerging Markets Debt Portfolio (continued)

Forward Currency Contracts open at December 31, 2016:

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
BRL	1,263,180	USD	370,000	BRC	01/04/17	$	18,109	$	—
BRL	1,765,416	USD	528,884	BRC	01/04/17		13,536		—
BRL	1,765,416	USD	529,122	BRC	01/04/17		13,298		—
BRL	4,191,766	USD	1,286,173	BRC	01/04/17		1,739		—
BRL	1,765,416	USD	528,884	CIT	01/04/17		13,536		—
BRL	1,765,416	USD	528,805	CIT	01/04/17		13,615		—
BRL	4,191,764	USD	1,286,172	CIT	01/04/17		1,739		—
BRL	1,765,416	USD	530,235	JPM	01/04/17		12,186		—
BRL	1,765,416	USD	529,043	JPM	01/04/17		13,378		—
BRL	4,191,766	USD	1,286,173	JPM	01/04/17		1,739		—
BRL	1,765,416	USD	528,726	SCB	01/04/17		13,694		—
BRL	1,765,416	USD	528,964	SCB	01/04/17		13,457		—
BRL	2,041,484	USD	599,731	SCB	01/04/17		27,511		—
BRL	4,191,766	USD	1,286,173	SCB	01/04/17		1,739		—
BRL	1,765,418	USD	528,885	UBS	01/04/17		13,536		—
BRL	1,765,418	USD	529,377	UBS	01/04/17		13,044		—
BRL	4,191,766	USD	1,286,173	UBS	01/04/17		1,739		—
COP	484,160,000	USD	160,000	SCB	01/17/17		882		—
HUF	316,006,315	USD	1,062,826	BRC	02/17/17		14,123		—
HUF	589,770,230	USD	1,984,489	JPM	02/17/17		25,447		—
HUF	47,510,304	USD	160,000	SCB	01/17/17		1,794		—
HUF	294,885,115	USD	992,111	SCB	02/17/17		12,857		—
IDR	1,181,885,492	USD	80,951	BRC	11/27/17		2,754		—
IDR	1,183,598,492	USD	81,375	BRC	11/27/17		2,452		—
IDR	1,183,598,492	USD	81,319	BRC	11/27/17		2,508		—
IDR	3,495,163,916	USD	236,303	BRC	11/27/17		11,236		—
IDR	1,758,932,382	USD	119,696	BRC	12/04/17		4,695		—
IDR	1,758,932,382	USD	119,982	BRC	12/04/17		4,409		—
IDR	2,970,541,910	USD	208,899	BRC	12/13/17		779		—
IDR	3,481,660,980	USD	244,929	BRC	12/13/17		827		—
IDR	4,663,694,640	USD	329,473	BRC	12/13/17		—		282
IDR	3,463,076,484	USD	242,682	BRC	12/14/17		1,711		—
IDR	49,496,392	USD	3,438	BRC	12/27/17		45		—
IDR	3,463,076,484	USD	240,425	BRC	12/27/17		3,304		—
IDR	4,160,167,116	USD	288,951	BRC	12/27/17		3,839		—
IDR	4,519,497,530	USD	313,876	BRC	12/27/17		4,203		—
IDR	1,998,039,428	USD	140,776	CIT	12/15/17		198		—
IDR	5,720,399,663	USD	402,137	CIT	12/15/17		1,473		—
IDR	7,905,986,130	USD	549,599	CIT	12/20/17		7,634		—
IDR	4,648,750,990	USD	324,294	CIT	12/21/17		3,293		—
IDR	6,893,584,028	USD	480,724	CIT	12/21/17		5,051		—
IDR	1,933,997,070	USD	134,259	CIT	12/27/17		1,855		—
IDR	1,941,599,724	USD	134,974	CIT	12/27/17		1,674		—

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

56   Annual Report

Lazard Emerging Markets Debt Portfolio (continued)

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
IDR	4,641,509,626	USD	321,768	CIT	12/27/17	$	4,898	$	—
IDR	7,718,439,091	USD	535,668	CIT	12/27/17		7,550		—
IDR	7,905,986,130	USD	548,912	CIT	12/27/17		7,505		—
IDR	11,542,335,018	USD	801,551	CIT	12/27/17		10,790		—
IDR	4,966,950,788	USD	339,853	JPM	12/04/17		11,407		—
IDR	3,253,670,937	USD	226,816	JPM	12/22/17		2,415		—
IDR	33,065,552	USD	2,301	JPM	12/27/17		27		—
IDR	3,253,670,937	USD	226,059	JPM	12/27/17		2,932		—
IDR	3,885,945,948	USD	269,296	JPM	12/27/17		4,194		—
IDR	4,998,722,517	USD	351,528	SCB	12/15/17		1,164		—
IDR	3,872,854,298	USD	268,389	SCB	12/27/17		4,180		—
IDR	4,004,739,672	USD	278,688	SCB	12/27/17		3,163		—
IDR	4,998,722,517	USD	346,580	SCB	12/27/17		5,226		—
IDR	7,085,400,000	USD	490,000	SCB	12/27/17		8,665		—
MXN	8,594,939	USD	415,124	BRC	01/17/17		—		1,283
PEN	303,113	USD	87,478	BRC	02/28/17		2,176		—
PEN	4,129,895	USD	1,201,949	BRC	02/28/17		19,591		—
PLN	5,974,213	USD	1,417,096	BRC	01/17/17		10,190		—
PLN	5,974,213	USD	1,418,918	JPM	01/17/17		8,368		—
PLN	751,492	USD	180,000	SCB	01/17/17		—		463
PLN	1,016,496	USD	240,000	SCB	01/17/17		2,849		—
PLN	5,974,213	USD	1,418,564	SCB	01/17/17		8,721		—
RON	4,984,084	USD	1,171,499	BRC	01/17/17		—		14,954
RON	1,903,532	USD	447,721	CIT	01/17/17		—		6,011
RON	1,903,532	USD	447,364	JPM	01/17/17		—		5,653
RON	2,751,791	USD	646,416	SCB	01/17/17		—		7,869
RUB	13,491,139	USD	210,470	BRC	01/17/17		9,067		—
RUB	20,281,375	USD	315,641	BRC	01/17/17		14,392		—
RUB	52,822,713	USD	851,156	BRC	01/17/17		8,414		—
RUB	24,343,766	USD	381,426	JPM	01/17/17		14,713		—
RUB	34,317,477	USD	534,359	JPM	01/17/17		24,080		—
RUB	44,519,361	USD	694,530	JPM	01/17/17		29,922		—
THB	14,693,761	USD	410,268	BRC	02/17/17		—		53
THB	23,394,443	USD	653,659	BRC	02/17/17		—		540
THB	7,234,007	USD	203,128	HSB	02/17/17		—		1,172
THB	93,869,400	USD	2,634,376	JPM	02/17/17		—		13,760
THB	5,044,200	USD	140,000	SCB	02/17/17		822		—
THB	7,155,000	USD	200,000	SCB	02/17/17		—		249
THB	69,075,215	USD	1,938,545	SCB	02/17/17		—		10,125
TRY	1,970,024	USD	557,559	BRC	01/17/17		—		591
TRY	3,840,575	USD	1,096,008	BRC	01/17/17		—		10,194
TRY	3,840,575	USD	1,095,398	JPM	01/17/17		—		9,584
TRY	818,432	USD	230,000	SCB	01/17/17		1,388		—

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

Annual Report   57

Lazard Emerging Markets Debt Portfolio (continued)

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
TRY	1,166,548	USD	332,142	SCB	01/17/17	$	—	$	2,333
TRY	1,486,043	USD	420,523	SCB	01/17/17		—		386
TRY	3,840,575	USD	1,095,648	SCB	01/17/17		—		9,834
TRY	3,840,576	USD	1,096,164	UBS	01/17/17		—		10,350
USD	387,586	BRL	388,110	BRC	01/04/17		—		524
USD	541,688	BRL	542,421	BRC	01/04/17		—		732
USD	541,688	BRL	542,421	BRC	01/04/17		—		732
USD	1,219,245	BRL	1,287,912	BRC	01/04/17		—		68,666
USD	524,430	BRL	537,982	BRC	02/02/17		—		13,551
USD	524,539	BRL	537,982	BRC	02/02/17		—		13,442
USD	541,688	BRL	542,421	CIT	01/04/17		—		732
USD	541,688	BRL	542,421	CIT	01/04/17		—		732
USD	1,219,085	BRL	1,287,911	CIT	01/04/17		—		68,826
USD	524,251	BRL	537,982	CIT	02/02/17		—		13,731
USD	524,423	BRL	537,982	CIT	02/02/17		—		13,559
USD	541,688	BRL	542,421	JPM	01/04/17		—		732
USD	541,688	BRL	542,421	JPM	01/04/17		—		732
USD	1,219,600	BRL	1,287,912	JPM	01/04/17		—		68,311
USD	524,469	BRL	537,982	JPM	02/02/17		—		13,512
USD	525,766	BRL	537,982	JPM	02/02/17		—		12,216
USD	541,688	BRL	542,421	SCB	01/04/17		—		732
USD	541,688	BRL	542,421	SCB	01/04/17		—		732
USD	626,395	BRL	627,242	SCB	01/04/17		—		847
USD	1,219,263	BRL	1,287,912	SCB	01/04/17		—		68,648
USD	524,282	BRL	537,982	SCB	02/02/17		—		13,699
USD	524,391	BRL	537,982	SCB	02/02/17		—		13,590
USD	541,689	BRL	542,421	UBS	01/04/17		—		732
USD	541,689	BRL	542,421	UBS	01/04/17		—		732
USD	1,219,281	BRL	1,287,912	UBS	01/04/17		—		68,631
USD	524,439	BRL	537,982	UBS	02/02/17		—		13,544
USD	524,813	BRL	537,982	UBS	02/02/17		—		13,169
USD	483,208	CLP	470,911	BRC	01/17/17		12,298		—
USD	483,016	CLP	470,911	JPM	01/17/17		12,105		—
USD	483,024	CLP	470,911	SCB	01/17/17		12,113		—
USD	483,097	CLP	470,911	UBS	01/17/17		12,187		—
USD	379,472	COP	381,110	JPM	01/17/17		—		1,639
USD	1,000,000	HUF	1,022,371	SCB	01/17/17		—		22,371
USD	1,555,005	IDR	1,543,868	BRC	01/17/17		11,136		—
USD	3,454	IDR	3,506	BRC	11/27/17		—		51
USD	490,000	IDR	495,393	BRC	11/27/17		—		5,393
USD	314,465	IDR	319,013	BRC	12/13/17		—		4,547
USD	240,826	IDR	244,393	BRC	12/14/17		—		3,567
USD	536,618	IDR	544,584	CIT	12/15/17		—		7,967
USD	549,408	IDR	557,233	CIT	12/20/17		—		7,825

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

58   Annual Report

Lazard Emerging Markets Debt Portfolio (concluded)

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
USD	802,108	IDR	813,361	CIT	12/21/17	$	—	$	11,253
USD	1,554,714	IDR	1,543,868	JPM	01/17/17		10,846		—
USD	2,308	IDR	2,338	JPM	12/04/17		—		30
USD	590,000	IDR	597,702	JPM	12/04/17		—		7,702
USD	226,185	IDR	229,231	JPM	12/22/17		—		3,046
USD	1,556,224	IDR	1,543,868	SCB	01/17/17		12,356		—
USD	460,000	IDR	465,613	SCB	12/13/17		—		5,613
USD	347,134	IDR	352,691	SCB	12/15/17		—		5,558
USD	359,023	MXN	354,802	BRC	01/17/17		4,221		—
USD	1,031,919	PEN	1,047,671	BRC	02/28/17		—		15,752
USD	567,478	PEN	580,589	CIT	02/28/17		—		13,110
USD	1,031,919	PEN	1,047,670	JPM	02/28/17		—		15,752
USD	1,032,220	PEN	1,047,671	SCB	02/28/17		—		15,451
USD	190,000	RON	189,808	SCB	01/17/17		192		—
USD	57,896	RUB	57,621	BRC	01/17/17		276		—
USD	1,980,000	RUB	1,997,969	BRC	01/17/17		—		17,969
USD	262,104	RUB	260,878	JPM	01/17/17		1,226		—
USD	312,331	SGD	306,589	BRC	01/17/17		5,742		—
USD	312,336	SGD	306,589	CIT	01/17/17		5,748		—
USD	312,281	SGD	306,589	JPM	01/17/17		5,693		—
USD	312,407	SGD	306,589	SCB	01/17/17		5,818		—
USD	560,000	TRY	561,780	SCB	01/17/17		—		1,780
USD	1,831,435	ZAR	1,840,957	JPM	01/17/17		—		9,522
ZAR	4,308,898	USD	315,693	BRC	01/17/17		—		2,684
ZAR	7,481,390	USD	531,281	SCB	01/17/17		12,187		—
Total gross unrealized appreciation/depreciation on Forward Currency Contracts						$	659,591	$	770,054

Written Options open at December 31, 2016:

Description	Counterparty		Number of Contracts		Strike Price		Expiration Date	Premium		Fair Value
USD vs BRL May 17 3.15 Put		JPMS		34,360	$	3.15	05/12/17	$	24,774	$	(43,637	)
USD vs BRL May 17 3.15 Put		JPMS		12,540		3.15	05/12/17		10,032		(15,926	)
USD vs BRL May 17 3.15 Put		JPMS		38,900		3.18	05/18/17		28,922		(59,517	)
Total Written Options				85,800				$	63,728	$	(119,080	)

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

Annual Report  59

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio
Corporate Bonds | 12.8%
Argentina | 0.2%
Generacion Mediterranea SA, 9.625%, 07/27/23	USD		430	$	442,900
Bangladesh | 0.1%
Banglalink Digital Communications, Ltd., 8.625%, 05/06/19	USD		140		147,868
Barbados | 0.4%
Columbus Cable Barbados, Ltd., 7.375%, 03/30/21	USD		850		904,519
Brazil | 3.3%
Braskem Finance, Ltd., 5.750%, 04/15/21	USD		610		642,025
Gerdau Trade, Inc., 4.750%, 04/15/23	USD		350		334,250
GTL Trade Finance, Inc., 5.893%, 04/29/24	USD		175		174,344
Petrobras Global Finance BV, 8.375%, 05/23/21	USD		6,211		6,692,352
Vale Overseas, Ltd.:
5.875%, 06/10/21	USD		225		235,688
6.250%, 08/10/26	USD		400		416,500
					8,495,159
Canada | 0.3%
First Quantum Minerals, Ltd.:
6.750%, 02/15/20 (b)	USD		490		488,775
7.000%, 02/15/21 (b)	USD		260		258,596
					747,371
Chile | 0.9%
AES Gener SA, 8.375%, 12/18/73	USD		450		477,000
Empresa Electrica Angamos SA, 4.875%, 05/25/29	USD		650		616,642
VTR Finance BV, 6.875%, 01/15/24	USD		1,225		1,264,812
					2,358,454
China | 0.1%
Green Dragon Gas, Ltd., 10.000%, 11/20/17 (b)	USD		400		324,000

Description	Security Currency	Principal Amount (000)		Fair Value
Colombia | 0.9%
Banco de Bogota SA, 6.250%, 05/12/26 (b)	USD		340	$	346,800
Bancolombia SA, 6.125%, 07/26/20	USD		290		308,125
Ecopetrol SA, 5.875%, 09/18/23	USD		620		658,750
Transportadora de Gas Internacional SA, 5.700%, 03/20/22	USD		905		932,150
					2,245,825
Georgia | 0.2%
BGEO Group JSC, 6.000%, 07/26/23	USD		550		550,000
Guatemala | 0.5%
Comcel Trust, 6.875%, 02/06/24	USD		1,210		1,219,075
India | 1.0%
Greenko Dutch BV, 8.000%, 08/01/19	USD		1,040		1,097,720
JSW Steel, Ltd., 4.750%, 11/12/19	USD		320		315,175
Vedanta Resources PLC:
9.500%, 07/18/18	USD		80		84,739
6.000%, 01/31/19	USD		310		311,550
8.250%, 06/07/21	USD		705		732,174
					2,541,358
Israel | 0.3%
Altice Financing SA,
6.625%, 02/15/23 (b)	USD		300		308,250
7.500%, 05/15/26 (b)	USD		615		639,600
					947,850
Macau | 0.3%
MCE Finance, Ltd., 5.000%, 02/15/21	USD		625		625,000
Studio City Co., Ltd., 7.250%, 11/30/21 (b)	USD		200		207,000
					832,000

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

60  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Mexico | 0.7%
Cemex Finance LLC, 9.375%, 10/12/22	USD		1,490	$	1,624,100
Cemex SAB de CV, 7.750%, 04/16/26	USD		290		320,813
					1,944,913
Nigeria | 0.3%
IHS Netherlands Holdco BV, 9.500%, 10/27/21 (b)	USD		725		742,271
Peru | 0.2%
Cia Minera Ares SAC, 7.750%, 01/23/21	USD		570		611,325
Russia | 1.0%
Evraz Group SA, 6.500%, 04/22/20	USD		310		324,582
Gazprom OAO Via Gaz Capital SA, 5.999%, 01/23/21	USD		570		614,175
GTH Finance BV,
6.250%, 04/26/20	USD		300		314,399
7.250%, 04/26/23	USD		1,200		1,286,424
					2,539,580
Singapore | 0.1%
Puma International Financing SA, 6.750%, 02/01/21	USD		300		308,682
South Africa | 0.3%
MTN Mauritius Investment, Ltd.:
5.373%, 02/13/22 (b)	USD		650		657,610
4.755%, 11/11/24	USD		240		220,200
					877,810
South Korea | 0.3%
Harvest Operations Corp., 6.875%, 10/01/17	USD		65		65,000
SK E&S Co., Ltd., 4.875%, 11/26/19 (e), (f)	USD		310		303,800
Woori Bank, 4.500%, 09/27/21 (e), (f)	USD		320		307,124
					675,924
Thailand | 0.2%
PTT Exploration & Production Public Co. Ltd., 4.875%, 06/18/19 (f)	USD		610		615,437

Description	Security Currency	Principal Amount (000)		Fair Value
Turkey | 0.6%
KOC Holding AS, 5.250%, 03/15/23	USD		645	$	634,519
Turkiye Is Bankasi, 5.000%, 04/30/20	USD		655		636,169
Turkiye Vakiflar Bankasi TAO, 3.750%, 04/15/18	USD		320		315,566
					1,586,254
United Arab Emirates | 0.4%
MAF Global Securities, Ltd., 7.125%, 10/29/18 (e), (f)	USD		910		953,225
United States | 0.1%
Sable International Finance, Ltd., 6.875%, 08/01/22 (b)	USD		220		228,800
Total Corporate Bonds (Cost $32,525,073)					32,840,600
Foreign Government Obligations | 56.6%
Argentina | 9.8%
Republic of Argentina:
6.875%, 04/22/21	USD		510		543,150
6.875%, 04/22/21 (b)	USD		1,345		1,433,770
7.500%, 04/22/26	USD		1,690		1,770,275
7.500%, 04/22/26 (b)	USD		9,050		9,479,875
8.280%, 12/31/33	USD		7,816		8,402,589
2.500%, 12/31/38 (g)	USD		5,970		3,680,505
					25,310,164
Belize | 0.4%
Republic of Belize, 5.000%, 02/20/38 (g)	USD		2,733		1,120,530
Brazil | 7.3%
Brazil Letras do Tesouro Nacional, 0.000%, 01/01/20	BRL		17,900		4,001,645
Brazil NTN-B:
6.000%, 05/15/35	BRL		1,880		1,748,169
6.000%, 08/15/50	BRL		3,490		3,280,327
Brazil NTN-F:
10.000%, 01/01/23	BRL		19,250		5,557,272
10.000%, 01/01/27	BRL		15,155		4,294,431
					18,881,844

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

Annual Report  61

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Cameroon | 0.5%
Republic of Cameroon, 9.500%, 11/19/25	USD		1,180	$	1,268,500
Congo | 1.1%
Republic of Congo, 4.000%, 06/30/29 (g)	USD		4,355		2,765,177
Costa Rica | 0.9%
Republic of Costa Rica:
4.250%, 01/26/23	USD		1,925		1,763,781
4.375%, 04/30/25	USD		200		177,250
7.158%, 03/12/45	USD		515		477,019
					2,418,050
Dominican Republic | 1.0%
Dominican Republic:
7.500%, 05/06/21	USD		1,295		1,403,456
5.500%, 01/27/25 (b)	USD		600		577,500
6.875%, 01/29/26	USD		565		586,188
					2,567,144
Ecuador | 3.9%
Republic of Ecuador:
10.500%, 03/24/20	USD		1,465		1,569,381
10.750%, 03/28/22	USD		7,770		8,430,450
					9,999,831
Egypt | 0.9%
Arab Republic of Egypt:
5.875%, 06/11/25	USD		1,320		1,196,250
5.875%, 06/11/25 (b)	USD		1,325		1,200,781
					2,397,031
El Salvador | 3.1%
Republic of El Salvador:
7.375%, 12/01/19	USD		3,062		3,153,860
7.750%, 01/24/23	USD		1,035		1,068,638
5.875%, 01/30/25	USD		2,493		2,271,746
6.375%, 01/18/27	USD		560		509,600
8.250%, 04/10/32	USD		86		86,860
7.625%, 02/01/41	USD		1,086		977,400
					8,068,104
Ethiopia | 0.5%
Federal Republic of Ethiopia, 6.625%, 12/11/24	USD		1,340		1,231,125

Description	Security Currency	Principal Amount (000)		Fair Value
Gabon | 1.0%
Gabonese Republic:
6.375%, 12/12/24	USD		2,465	$	2,289,369
6.950%, 06/16/25	USD		285		266,415
					2,555,784
Ghana | 3.3%
Ghana Government Bonds:
25.480%, 04/24/17	GHS		380		89,439
24.440%, 05/29/17	GHS		80		18,823
23.230%, 02/19/18	GHS		490		115,966
22.490%, 04/23/18	GHS		160		37,155
23.470%, 05/21/18	GHS		420		98,733
19.040%, 09/24/18	GHS		50		11,243
Ghana Treasury Note, 22.500%, 12/10/18	GHS		450		107,553
Republic of Ghana:
9.250%, 09/15/22	USD		3,115		3,329,966
7.875%, 08/07/23	USD		2,020		1,987,175
8.125%, 01/18/26	USD		3,004		2,958,940
					8,754,993
Guatemala | 0.3%
Republic of Guatemala, 5.750%, 06/06/22	USD		593		633,769
Iraq | 1.1%
Republic of Iraq, 5.800%, 01/15/28	USD		3,275		2,710,062
Ivory Coast | 1.5%
Ivory Coast:
5.375%, 07/23/24	USD		1,055		1,015,364
6.375%, 03/03/28	USD		1,155		1,121,794
6.375%, 03/03/28 (b)	USD		1,105		1,073,231
5.750%, 12/31/32	USD		558		515,785
					3,726,174
Jordan | 1.0%
Kingdom of Jordan, 5.750%, 01/31/27 (b)	USD		2,640		2,501,400
Lebanon | 2.0%
Lebanese Republic:
5.450%, 11/28/19	USD		870		847,380
5.800%, 04/14/20	USD		1,740		1,703,112
8.250%, 04/12/21	USD		2,260		2,392,888
6.100%, 10/04/22	USD		110		106,423
					5,049,803

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

62  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Mongolia | 1.0%
Mongolia Government International Bonds:
10.875%, 04/06/21	USD		1,330	$	1,391,513
5.125%, 12/05/22	USD		1,265		1,076,831
					2,468,344
Mozambique | 1.2%
Mozambique International Bond, 10.500%, 01/18/23	USD		5,308		3,144,990
Nigeria | 0.5%
Republic of Nigeria:
6.750%, 01/28/21	USD		580		585,075
6.375%, 07/12/23	USD		655		632,075
					1,217,150
Pakistan | 0.5%
Islamic Republic of Pakistan, 8.250%, 04/15/24	USD		1,280		1,383,072
Paraguay | 0.6%
Republic of Paraguay:
4.625%, 01/25/23	USD		170		171,913
5.000%, 04/15/26 (b)	USD		470		474,700
6.100%, 08/11/44	USD		280		280,350
6.100%, 08/11/44 (b)	USD		550		550,687
					1,477,650
Portugal | 2.7%
Republic of Portugal:
5.125%, 10/15/24	USD		4,318		4,177,665
5.125%, 10/15/24 (b)	USD		2,775		2,684,812
					6,862,477
Senegal | 0.5%
Republic of Senegal, 8.750%, 05/13/21	USD		1,135		1,262,688
Sri Lanka | 1.9%
Republic of Sri Lanka:
6.250%, 10/04/20	USD		550		563,750
5.750%, 01/18/22	USD		545		536,697
5.750%, 01/18/22 (b)	USD		890		875,538
5.875%, 07/25/22	USD		660		648,450
6.125%, 06/03/25	USD		900		849,375
6.850%, 11/03/25	USD		245		241,631
6.850%, 11/03/25 (b)	USD		625		616,406
6.825%, 07/18/26 (b)	USD		660		650,100
					4,981,947

Description	Security Currency	Principal Amount (000)		Fair Value
Turkey | 1.0%
Republic of Turkey, 5.625%, 03/30/21	USD		2,470	$	2,528,662
Ukraine | 4.9%
Ukraine Government Bonds:
7.750%, 09/01/19	USD		4,975		4,987,437
7.750%, 09/01/20	USD		260		256,750
7.750%, 09/01/22	USD		205		197,825
7.750%, 09/01/24	USD		535		505,575
7.750%, 09/01/26	USD		1,565		1,463,275
7.750%, 09/01/27	USD		2,545		2,366,850
0.000%, 05/31/40 (e)	USD		9,766		2,929,800
					12,707,512
Vietnam | 0.5%
Socialist Republic of Vietnam, 6.750%, 01/29/20	USD		1,155		1,251,731
Zambia | 1.7%
Republic of Zambia:
5.375%, 09/20/22	USD		2,175		1,971,094
8.500%, 04/14/24	USD		2,500		2,443,750
					4,414,844
Total Foreign Government Obligations (Cost $147,348,865)					145,660,552
Quasi Government Bonds | 3.4%
Indonesia | 0.5%
Majapahit Holding BV, 7.750%, 01/20/20	USD		334		374,915
Perusahaan Listrik Negara PT, 5.500%, 11/22/21	USD		805		862,356
					1,237,271
Mexico | 1.4%
Petroleos Mexicanos, 4.607%, 03/11/22 (b), (e)	USD		3,650		3,764,062
South Africa | 1.0%
Eskom Holdings SOC, Ltd.:
5.750%, 01/26/21	USD		1,520		1,516,200
6.750%, 08/06/23	USD		1,015		1,017,538
					2,533,738

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

Annual Report   63

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Venezuela | 0.5%
Petroleos de Venezuela SA:
5.250%, 04/12/17	USD		985	$	884,037
8.500%, 11/02/17	USD		737		580,125
					1,464,162
Total Quasi Government Bonds (Cost $8,889,421)					8,999,233

Description	Shares		Fair Value
Warrants | 0.0%
United Kingdom | 0.0%
Gulf Keystone Petroleum, Ltd. Expires 04/18/2017 (Cost $0)		96,000	$	0
Short-Term Investment | 25.9%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $66,660,424)		66,660,424		66,660,424

Description	Counterparty	Number of Contracts		Fair Value
Purchased Options | 0.2%
USD vs BRL May 17 3.3 Put, Expires 05/12/17	JPMS		95,100	$	269,133
USD vs BRL May 17 3.35 Put, Expires 05/18/17	JPMS		40,400		144,632
Total Purchased Options (Cost $253,748)					413,765
Total Investments | 98.9% (Cost $255,677,531) (d), (h)				$	254,574,574
Cash and Other Assets in Excess of Liabilities | 1.1%					2,933,019
Net Assets | 100.0%				$	257,507,593

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

64  Annual Report

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at December 31, 2016:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
BRL		5,205,089	USD		1,559,344	BRC	01/04/17	$	39,909	$	—
BRL		5,205,089	USD		1,560,045	BRC	01/04/17		39,208		—
BRL		8,957,549	USD		2,748,473	BRC	01/04/17		3,716		—
BRL		5,205,089	USD		1,559,344	CIT	01/04/17		39,909		—
BRL		5,205,089	USD		1,559,110	CIT	01/04/17		40,143		—
BRL		8,957,549	USD		2,748,473	CIT	01/04/17		3,716		—
BRL		5,205,089	USD		1,563,325	JPM	01/04/17		35,929		—
BRL		5,205,089	USD		1,559,811	JPM	01/04/17		39,442		—
BRL		8,957,549	USD		2,748,473	JPM	01/04/17		3,716		—
BRL		842,875	USD		258,622	SCB	01/04/17		350		—
BRL		5,205,089	USD		1,558,877	SCB	01/04/17		40,376		—
BRL		5,205,089	USD		1,559,577	SCB	01/04/17		39,676		—
BRL		6,420,270	USD		1,969,952	SCB	01/04/17		2,663		—
BRL		8,957,549	USD		2,748,473	SCB	01/04/17		3,716		—
BRL		5,205,089	USD		1,559,344	UBS	01/04/17		39,909		—
BRL		5,205,089	USD		1,560,793	UBS	01/04/17		38,460		—
BRL		8,957,549	USD		2,748,473	UBS	01/04/17		3,716		—
IDR		16,466,533,679	USD		1,157,577	BRC	12/11/17		5,216		—
IDR		20,850,173,612	USD		1,466,670	BRC	12/13/17		5,059		—
IDR		16,466,533,679	USD		1,143,668	BRC	12/27/17		15,234		—
IDR		20,850,173,612	USD		1,448,029	BRC	12/27/17		19,390		—
IDR		36,233,100,000	USD		2,540,000	CIT	12/14/17		17,009		—
IDR		36,052,500,000	USD		2,530,000	CIT	12/15/17		13,731		—
IDR		36,052,500,000	USD		2,502,082	CIT	12/27/17		35,266		—
IDR		36,195,000,000	USD		2,511,449	CIT	12/27/17		35,928		—
IDR		19,095,966,322	USD		1,342,423	JPM	12/11/17		6,048		—
IDR		15,273,493,015	USD		1,073,331	JPM	12/13/17		4,763		—
IDR		36,195,000,000	USD		2,540,000	JPM	12/14/17		14,321		—
IDR		15,273,493,015	USD		1,060,659	JPM	12/27/17		14,278		—
IDR		19,095,966,322	USD		1,327,030	JPM	12/27/17		16,930		—
IDR		20,613,813,710	USD		1,431,316	JPM	12/27/17		19,469		—
PEN		4,316,368	USD		1,257,500	BRC	02/28/17		19,195		—
RUB		59,651,101	USD		928,357	BRC	01/17/17		42,330		—
RUB		104,021,710	USD		1,630,000	BRC	01/17/17		62,717		—
RUB		100,933,756	USD		1,571,643	JPM	01/17/17		70,825		—
USD		1,770,000	AUD		1,714,433	SCB	01/17/17		55,567		—
USD		1,597,094	BRL		1,599,253	BRC	01/04/17		—		2,159
USD		2,605,453	BRL		2,752,189	BRC	01/04/17		—		146,735
USD		1,546,211	BRL		1,586,166	BRC	02/02/17		—		39,955
USD		1,546,533	BRL		1,586,166	BRC	02/02/17		—		39,633
USD		1,597,094	BRL		1,599,253	CIT	01/04/17		—		2,159
USD		2,605,112	BRL		2,752,189	CIT	01/04/17		—		147,076
USD		1,545,683	BRL		1,586,166	CIT	02/02/17		—		40,483
USD		1,546,189	BRL		1,586,166	CIT	02/02/17		—		39,977
USD		1,597,094	BRL		1,599,253	JPM	01/04/17		—		2,159
USD		2,606,212	BRL		2,752,189	JPM	01/04/17		—		145,977

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

Annual Report  65

Lazard Explorer Total Return Portfolio (continued)

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
USD		1,546,326	BRL		1,586,166	JPM	02/02/17	$	—	$	39,840
USD		1,550,149	BRL		1,586,166	JPM	02/02/17		—		36,017
USD		250,000	BRL		258,972	SCB	01/04/17		—		8,972
USD		1,597,094	BRL		1,599,253	SCB	01/04/17		—		2,159
USD		1,904,559	BRL		1,972,615	SCB	01/04/17		—		68,056
USD		2,605,491	BRL		2,752,189	SCB	01/04/17		—		146,697
USD		1,545,775	BRL		1,586,166	SCB	02/02/17		—		40,391
USD		1,546,097	BRL		1,586,166	SCB	02/02/17		—		40,069
USD		1,597,094	BRL		1,599,253	UBS	01/04/17		—		2,159
USD		2,605,529	BRL		2,752,189	UBS	01/04/17		—		146,660
USD		1,546,234	BRL		1,586,166	UBS	02/02/17		—		39,932
USD		1,547,338	BRL		1,586,166	UBS	02/02/17		—		38,828
USD		2,210,000	CAD		2,173,434	BRC	01/17/17		36,566		—
USD		1,132,825	CLP		1,103,995	BRC	01/17/17		28,830		—
USD		1,132,375	CLP		1,103,995	JPM	01/17/17		28,380		—
USD		1,132,392	CLP		1,103,995	SCB	01/17/17		28,397		—
USD		1,132,565	CLP		1,103,995	UBS	01/17/17		28,570		—
USD		1,146,295	IDR		1,162,793	BRC	12/11/17		—		16,497
USD		1,450,750	IDR		1,471,728	BRC	12/13/17		—		20,978
USD		1,088,831	IDR		1,102,270	CIT	12/14/17		—		13,439
USD		2,516,163	IDR		2,554,321	CIT	12/14/17		—		38,158
USD		2,506,518	IDR		2,543,731	CIT	12/15/17		—		37,213
USD		1,329,340	IDR		1,348,471	JPM	12/11/17		—		19,132
USD		1,062,504	IDR		1,078,093	JPM	12/13/17		—		15,589
USD		1,433,506	IDR		1,454,739	JPM	12/14/17		—		21,233
USD		1,770,000	KRW		1,710,619	SCB	01/17/17		59,381		—
USD		4,350,000	RUB		4,389,478	BRC	01/17/17		—		39,478
USD		1,298,820	SGD		1,274,940	BRC	01/17/17		23,880		—
USD		1,298,842	SGD		1,274,940	CIT	01/17/17		23,902		—
USD		1,298,613	SGD		1,274,940	JPM	01/17/17		23,673		—
USD		1,299,134	SGD		1,274,940	SCB	01/17/17		24,194		—
USD		3,100,000	TWD		3,058,433	BRC	01/17/17		41,567		—
ZAR		35,075,060	USD		2,530,000	SCB	01/17/17		17,944		—
Total gross unrealized appreciation/depreciation on Forward Currency Contracts								$	1,253,114	$	1,437,810

Written Options open at December 31, 2016:

Description	Counterparty	Number of Contracts		Strike Price		Expiration Date	Premium			Fair Value
USD vs BRL May 17 3.15 Put	JPMS		69,670	$	3.15	05/12/17		$	50,232		$	(88,481	)
USD vs BRL May 17 3.15 Put	JPMS		25,430		3.15	05/12/17			20,344			(32,296	)
USD vs BRL May 17 3.15 Put	JPMS		40,400		3.18	05/18/17			30,037			(61,812	)
Total Written Options			135,500					$	100,613		$	(182,589	)

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

66  Annual Report

Lazard Explorer Total Return Portfolio (concluded)

Credit Default Swap Agreements open at December 31, 2016:

Referenced Obligation	Counterparty	Notional Amount		Expiration Date	Buy/ Sell	Receive (Pay) Rate			S&P Credit Rating	Fair Value			Upfront Premiums Paid (Received)			Unrealized Appreciation		Unrealized Depreciation
CDX EM 26	BRC		3,800,000	12/20/21	Sell		1.000	%	CCC - AA-	$	(237,284	)	$	(291,840	)	$	54,556	$	—
CDX EM 26	BRC		10,600,000	12/20/21	Sell		1.000		CCC - AA-		(661,899	)		(805,600	)		143,701		—
CDX EM 26	BRC		450,000	12/20/21	Sell		1.000		CCC - AA-		(28,099	)		(33,525	)		5,426		—
CDX EM 26	BRC		6,500,000	12/20/21	Sell		1.000		CCC - AA-		(405,881	)		(503,750	)		97,869		—
CDX EM 26	BRC		3,150,000	12/20/21	Sell		1.000		CCC - AA-		(196,697	)		(243,029	)		46,332		—
CDX EM 26	BRC		7,700,000	12/20/21	Sell		1.000		CCC - AA-		(480,813	)		(604,373	)		123,560		—
Republic of South Africa	BRC		2,400,000	12/20/21	Sell		1.000		BBB-		(125,045	)		(170,967	)		45,922		—
Republic of South Africa	BRC		5,250,000	12/20/21	Sell		1.000		BBB-		(273,537	)		(340,235	)		66,698		—
Republic of South Africa	BRC		4,900,000	12/20/21	Sell		1.000		BBB-		(255,301	)		(345,636	)		90,335		—
Republic of Turkey	BRC		1,350,000	12/20/21	Sell		1.000		NR		(105,276	)		(112,708	)		7,432		—
Republic of Turkey	BRC		3,050,000	12/20/21	Sell		1.000		NR		(237,845	)		(250,747	)		12,902		—
Republic of Turkey	BRC		8,200,000	12/20/21	Sell		1.000		NR		(639,454	)		(700,942	)		61,488		—
United Mexican States	BRC		7,820,000	12/20/21	Buy		(1.000	)	BBB+		195,717			306,455			—		110,738
United Mexican States	BRC		6,930,000	12/20/21	Buy		(1.000	)	BBB+		173,442			301,737			—		128,295
United Mexican States	BRC		10,400,000	12/20/21	Buy		(1.000	)	BBB+		260,287			421,966			—		161,679
Total Credit Default Swap Agreements										$	(3,017,685	)	$	(3,373,194	)	$	756,221	$	400,712

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

Annual Report  67

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Income Portfolio
Foreign Government Obligations | 41.0%
Brazil | 11.3%
Brazil Letras do Tesouro Nacional, 0.000%, 04/01/17	BRL		2,870	$	854,613
Brazil NTN-F:
10.000%, 01/01/17	BRL		940		288,604
10.000%, 01/01/27	BRL		880		249,363
					1,392,580
Colombia | 1.1%
Colombian Titulos De Tesoreria, 7.000%, 05/04/22	COP		410,000		138,235
Malaysia | 3.2%
Malaysia Government Bonds:
3.580%, 09/28/18	MYR		190		42,367
3.800%, 08/17/23	MYR		1,578		343,670
					386,037
Mexico | 5.1%
Mexican Bonos:
4.750%, 06/14/18	MXN		4,400		206,184
6.500%, 06/10/21	MXN		5,970		280,619
5.750%, 03/05/26	MXN		3,180		136,159
					622,962
Poland | 5.0%
Poland Government Bonds:
4.750%, 04/25/17	PLN		1,590		383,554
4.000%, 10/25/23	PLN		930		231,422
					614,976
Romania | 1.4%
Romanian Government Bond, 4.750%, 02/24/25	RON		700		175,779
Russia | 8.1%
Russia Government Bonds - OFZ:
7.500%, 08/18/21	RUB		23,100		367,758
7.600%, 07/20/22	RUB		23,100		366,744
7.050%, 01/19/28	RUB		17,550		260,403
					994,905
South Africa | 1.8%
Republic of South Africa, 10.500%, 12/21/26	ZAR		2,680		215,155

Description	Security Currency	Principal Amount (000)		Fair Value
Turkey | 4.0%
Turkey Government Bonds:
10.500%, 01/15/20	TRY		1,030	$	292,421
10.700%, 02/17/21	TRY		720		203,227
					495,648
Total Foreign Government Obligations (Cost $5,279,449)					5,036,277
Supranationals | 1.6%
European Investment Bank, 7.200%, 07/09/19 (b) (Cost $213,115)	IDR		2,700,000		195,663
US Treasury Securities | 53.0%
US Treasury Notes:
0.750%, 01/15/17	USD		500		500,069
0.500%, 01/31/17	USD		400		400,046
0.875%, 01/31/17	USD		500		500,199
0.625%, 02/15/17	USD		500		500,119
0.875%, 02/28/17	USD		500		500,335
0.750%, 03/15/17	USD		500		500,283
0.500%, 03/31/17	USD		500		500,023
0.875%, 04/15/17	USD		500		500,523
0.875%, 04/30/17	USD		350		350,400
0.875%, 05/15/17	USD		400		400,406
0.625%, 05/31/17	USD		500		500,080
0.875%, 06/15/17	USD		500		500,568
0.625%, 06/30/17	USD		350		349,945
0.750%, 06/30/17	USD		500		500,295
Total US Treasury Securities (Cost $6,503,531)					6,503,291

Description	Shares		Fair Value
Short-Term Investment | 7.2%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $887,774)		887,774	$	887,774
Total Investments | 102.8% (Cost $12,883,869) (d), (h)			$	12,623,005
Liabilities in Excess of Cash and Other Assets | (2.8)%				(338,754	)
Net Assets | 100.0%			$	12,284,251

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

68  Annual Report

Lazard Emerging Markets Income Portfolio (continued)

Forward Currency Contracts open at December 31, 2016:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
ARS		1,890,720	USD		117,000	BNP	01/17/17	$	866	$	—
ARS		1,021,860	USD		63,000	BNP	02/02/17		—		134
ARS		1,042,650	USD		63,000	BNP	03/03/17		—		98
BRL		50,595	USD		15,000	CIT	01/20/17		474		—
BRL		19,503	USD		6,000	JPM	01/20/17		—		35
CNY		2,430,225	USD		350,000	SCB	01/13/17		—		1,953
CNY		4,367,256	USD		643,000	SCB	01/13/17		—		17,539
COP		49,624,000	USD		16,000	SCB	01/13/17		502		—
COP		331,446,000	USD		111,000	SCB	01/13/17		—		778
CZK		3,894,150	USD		150,000	CAB	01/30/17		1,893		—
EUR		221,647	USD		238,084	JPM	02/01/17		—		4,433
HUF		85,424,505	USD		291,000	BNP	02/02/17		32		—
HUF		85,366,305	USD		291,000	BNP	03/02/17		4		—
IDR		1,986,580,000	USD		142,000	CIT	03/22/17		3,468		—
IDR		5,841,060,000	USD		402,000	CIT	03/22/17		25,715		—
IDR		988,400,000	USD		70,000	CIT	05/02/17		1,834		—
IDR		660,274,550	USD		47,605	HSB	02/15/17		1,033		—
IDR		961,520,000	USD		68,000	HSB	05/09/17		1,785		—
ILS		239,393	USD		62,000	BNP	01/25/17		176		—
INR		13,034,000	USD		190,000	JPM	04/17/17		—		462
INR		12,805,050	USD		190,000	SCB	01/09/17		—		1,548
INR		48,014,900	USD		703,000	SCB	01/23/17		2,447		—
KRW		1,304,917,950	USD		1,115,000	SCB	01/13/17		—		34,084
KZT		63,848,000	USD		184,000	SCB	01/23/17		6,602		—
MXN		3,103,280	USD		160,000	CIT	01/26/17		—		10,764
MXN		6,499,310	USD		347,000	CIT	01/26/17		—		34,449
MYR		509,450	USD		115,000	JPM	03/08/17		—		1,790
PEN		405,639	USD		117,000	BNP	02/21/17		3,109		—
PEN		371,034	USD		107,437	CIT	03/06/17		2,207		—
PEN		433,007	USD		127,000	SCB	01/17/17		1,822		—
PHP		4,605,520	USD		92,000	JPM	01/11/17		710		—
PHP		9,459,450	USD		188,940	JPM	02/03/17		895		—
RON		208,785	USD		53,287	CIT	08/29/17		—		4,646
RON		527,248	USD		124,000	JPM	02/06/17		—		1,599
RUB		28,489,780	USD		440,000	CAB	01/30/17		21,661		—
RUB		4,591,440	USD		72,000	JPM	01/09/17		2,846		—
RUB		4,645,238	USD		75,000	JPM	01/30/17		274		—
SGD		974,432	USD		685,000	JPM	01/09/17		—		12,149
THB		21,113,765	USD		593,000	SCB	01/09/17		—		3,438
TRY		389,255	USD		111,000	JPM	02/23/17		—		1,829
TWD		2,605,960	USD		82,000	SCB	01/13/17		—		1,526
USD		217,000	BRL		220,039	BNP	01/20/17		—		3,039
USD		443,000	BRL		462,686	JPM	01/20/17		—		19,686

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

Annual Report  69

Lazard Emerging Markets Income Portfolio (concluded)

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
USD		1,097	EUR		1,054	JPM	02/01/17	$	43	$	—
USD		237,642	EUR		232,597	JPM	02/01/17		5,045		—
USD		10,450	HUF		9,761	BNP	08/29/17		689		—
USD		224,057	IDR		222,469	JPM	01/23/17		1,588		—
USD		44,000	IDR		43,760	SCB	01/23/17		240		—
USD		126,000	MXN		115,394	CIT	01/26/17		10,606		—
USD		91,000	PLN		90,163	JPM	01/20/17		837		—
USD		53,275	RON		48,642	BNP	08/29/17		4,634		—
USD		190,000	RON		187,197	JPM	02/06/17		2,803		—
USD		74,440	RUB		74,846	JPM	01/09/17		—		406
USD		239,538	RUB		257,192	JPM	01/30/17		—		17,654
USD		83,000	TRY		80,066	CAB	02/23/17		2,934		—
USD		143,000	TRY		141,394	CAB	02/23/17		1,606		—
USD		109,056	TRY		109,171	JPM	02/23/17		—		115
USD		256,000	ZAR		258,946	CIT	02/27/17		—		2,946
ZAR		4,164,201	USD		289,000	CIT	02/27/17		11,148		—
Total gross unrealized appreciation/depreciation on Forward Currency Contracts								$	122,528	$	177,100

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

70  Annual Report

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2016

(a)	Non-income producing security.
(b)	Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2016, the percentage of net assets for each Portfolio was as follows:

Portfolio	Percentage of Net Assets
Emerging Markets Equity		0.5	%
Emerging Markets Equity Advantage		0.9
Emerging Markets Multi Asset		2.7
Emerging Markets Debt		9.3
Explorer Total Return		11.7
Emerging Markets Income		1.6

(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)	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)
Emerging Markets Equity	$	11,027,368,122	$	1,372,576,969	$	1,640,804,971	$	(268,228,002	)
Emerging Markets Core Equity		119,089,978		10,683,808		6,486,356		4,197,452
Developing Markets Equity		189,897,528		15,971,598		10,109,392		5,862,206
Emerging Markets Equity Advantage		2,933,428		289,421		178,642		110,779
Emerging Markets Equity Blend		292,698,477		17,985,922		21,766,986		(3,781,064	)
Emerging Markets Multi Asset		186,685,330		7,701,889		7,514,994		186,895
Emerging Markets Debt		258,011,078		3,794,235		16,413,459		(12,619,224	)
Explorer Total Return		255,746,019		4,160,331		5,331,776		(1,171,445	)
Emerging Markets Income		12,891,874		82,753		351,622		(268,869	)

(e)	Variable and floating rate securities are securities for which interest rate changes are based on changes in a designated base rate. The rates shown are those in effect on December 31, 2016.
(f)	Date shown is the next perpetual call date.
(g)	Step up bonds are securities which increase the interest payment rate at a specified point in time. Rate shown reflects rate in effect at December 31, 2016 which may step up at a future date.
(h)	The Portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts.
†	Refer to Note 5 in the Notes to Financial Statements for further details related to holdings of 5% voting securities of portfolio companies.

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

Annual Report  71

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:
ARS	— Argentinian Peso
AUD	— Australian Dollar
BRL	— Brazilian Real
CAD	— Canadian Dollar
CLP	— Chilean Peso
CNY	— Yuan Renminbi
COP	— Colombian Peso
CZK	— Czech Koruna
EGP	— Egyptian Pound
EUR	— Euro
GHS	— Ghanaian Cedi
HUF	— Hungarian Forint
IDR	— Indonesian Rupiah
ILS	— Israeli Shekel
INR	— Indian Rupee
KES	— Kenyan Shilling
KRW	— South Korean Won
Counterparty Abbreviations:
BNP	— BNP Paribas SA
BRC	— Barclays Bank PLC
CAB	— Credit Agricole Corporate and Investment Bank
CIT	— Citibank NA
HSB	— HSBC Bank USA NA

NTN-F	— Brazil Sovereign “Nota do Tesouro Nacional” Series F
NVDR	— Non-Voting Depository Receipt
PJSC	— Public Joint Stock Company
REIT	— Real Estate Investment Trust
KZT	— Kazakhstan Tenge
MXN	— Mexican New Peso
MYR	— Malaysian Ringgit
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
JPM	— JPMorgan Chase Bank NA
JPMS	— JPMorgan Securities, Inc.
SCB	— Standard Charter Bank
UBS	— UBS AG

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

72  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
Aerospace & Defense		—	%		—	%		5.3	%		—	%		1.2	%		0.4	%
Airlines		—			—			—			0.8			—			—
Auto Components		1.6			0.9			0.6			0.8			3.4			1.8
Automobiles		3.6			3.3			4.3			1.2			3.4			1.3
Banks		26.0			18.3			22.0			18.9			23.0			11.6
Beverages		1.3			0.6			—			0.3			0.6			0.3
Building Products		—			—			—			0.6			—			—
Capital Markets		—			—			—			0.7			—			—
Chemicals		0.4			3.0			—			3.1			1.5			1.0
Commercial Services & Suppliers		—			—			—			—			0.4			0.2
Communications Equipment		—			—			—			0.2			—			0.1
Construction & Engineering		—			—			2.3			0.9			1.3			0.4
Construction Materials		1.6			—			2.9			1.0			0.9			0.6
Consumer Finance		—			—			0.7			0.8			0.9			0.5
Containers & Packaging		—			—			—			—			0.6			0.3
Distributors		1.0			—			—			—			—			—
Diversified Consumer Services		—			—			2.4			0.5			1.0			0.3
Diversified Financial Services		—			2.3			—			1.1			0.4			0.7
Diversified Telecommunication Services		2.6			2.8			—			2.8			1.0			1.2
Electric Utilities		—			—			—			4.0			—			0.9
Electrical Equipment		0.4			—			0.1			0.8			—			—
Electronic Equipment, Instruments & Components		1.7			3.8			2.4			3.3			4.3			1.8
Energy Equipment & Services		—			1.1			—			—			—			—
Equity Real Estate Investment Trusts (REITs)		—			—			0.9			—			0.5			0.1
Food & Staples Retailing		2.2			—			1.6			1.6			1.4			0.4
Food Products		—			0.7			1.0			2.6			—			0.1
Health Care Equipment & Supplies		—			—			—			0.8			—			—
Health Care Providers & Services		0.7			0.8			—			0.3			—			—
Hotels, Restaurants & Leisure		—			1.0			—			0.8			—			0.2
Household Durables		1.0			1.6			1.2			0.7			0.4			0.2
Household Products		0.7			—			—			0.3			0.5			0.3
Independent Power and Renewable Electricity Producers		—			1.1			—			—			—			0.3
Industrial Conglomerates		1.8			0.6			—			1.3			0.8			0.5
Insurance		3.7			4.0			3.0			2.9			1.9			0.9
Internet & Catalog Retail		—			0.9			0.8			0.4			—			—
Internet Software & Services		5.4			9.6			9.1			7.7			8.7			3.9
IT Services		6.4			1.1			—			2.0			2.6			1.4
Machinery		1.0			—			0.8			0.3			1.4			0.7
Media		—			1.7			1.6			2.0			—			0.5
Metals & Mining		1.8			5.5			4.1			4.3			1.4			1.6
Multiline Retail		0.8			1.5			—			—			—			0.1
Oil, Gas & Consumable Fuels		8.6			7.0			13.3			8.8			8.2			6.0
Paper & Forest Products		—			2.3			—			0.9			—			0.1
Personal Products		0.5			1.5			—			0.3			0.2			0.3
Pharmaceuticals		—			0.8			7.8			1.2			3.1			0.9
Professional Services		—			—			—			—			0.5			0.3
Real Estate Management & Development		—			0.8			—			2.3			—			0.1
Road & Rail		0.8			—			—			—			0.7			0.4

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

Annual Report  73

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
Semiconductors & Semiconductor Equipment		5.4	%		9.0	%		4.0	%		6.7	%		8.4	%		4.3	%
Software		—			0.9			1.5			—			1.2			0.4
Specialty Retail		—			—			—			0.9			0.3			0.1
Technology Hardware, Storage & Peripherals		3.7			6.2			4.0			5.5			4.0			2.0
Textiles, Apparel & Luxury Goods		—			—			—			0.8			1.1			0.6
Thrifts & Mortgage Finance		—			—			—			—			0.6			0.3
Tobacco		1.2			0.6			—			0.7			0.4			0.2
Transportation Infrastructure		1.6			1.8			—			0.6			0.8			0.6
Wireless Telecommunication Services		8.0			2.1			—			2.5			2.9			2.1
Subtotal		95.5			99.2			97.7			101.0			95.9			53.3
Foreign Government Obligations		—			—			—			—			—			26.8
Supranationals		—			—			—			—			—			0.1
US Treasury Securities		—			—			—			—			—			5.2
Purchased Options		—			—			—			—			—			0.1
Short-Term Investments		4.1			0.4			2.0			—			4.0			12.4
Total Investments		99.6	%		99.6	%		99.7	%		101.0	%		99.9	%		97.9	%

Industry*	Lazard Emerging Markets Debt Portfolio			Lazard Explorer Total Return Portfolio
Banks		2.2	%		1.0	%
Chemicals		0.3			0.3
Communications Equipment		—			0.3
Construction Materials		0.2			0.8
Diversified Financial Services		1.0			0.4
Diversified Telecommunication Services		0.3			0.4
Electric Utilities		1.8			2.4
Hotels, Restaurants & Leisure		—			0.3
Independent Power and Renewable Electricity Producers		—			0.6
Industrial Conglomerates		—			0.2
Media		0.4			0.5
Metals & Mining		0.1			1.5
Oil, Gas & Consumable Fuels		6.3			6.0
Transportation Infrastructure		0.7			—
Wireless Telecommunication Services		0.4			1.5
Subtotal		13.7			16.2
Foreign Government Obligations		76.6			56.6
Purchased Options		0.1			0.2
Short-Term Investments		8.2			25.9
Total Investments		98.6	%		98.9	%

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

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

74  Annual Report

[This page intentionally left blank]

Annual Report  75

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2016	Lazard Emerging Markets Equity Portfolio			Lazard Emerging Markets Core Equity Portfolio			Lazard Developing Markets Equity Portfolio
ASSETS
Investments in securities, at fair value	$	10,615,663,528		$	123,287,430		$	195,759,734
Non-controlled affiliated issuers, at fair value (Note 5)		143,476,592			—			—
Cash		—			—			—
Cash collateral due from broker		—			—			—
Foreign currency, at fair value		2,142,577			43,123			579,794
Receivables for:
Capital stock sold		37,133,329			670,283			1,851,200
Investments sold		32,175,010			18			72,767
Dividends and interest		10,013,794			205,824			320,859
Amount due from Investment Manager (Note 3)		—			—			—
Amount due from custodian (Note 3)		291,548			—			37,823
Gross unrealized appreciation on:
Forward currency contracts		—			—			—
Swap agreements		—			—			—
Premium for swap agreements purchased		—			—			—
Deferred offering costs (Note 2(h))		—			—			—
Prepaid expenses		—			—			—
Total assets		10,840,896,378			124,206,678			198,622,177
LIABILITIES
Cash collateral due to broker		—			—			—
Payables for:
Management fees		9,084,739			107,420			169,069
Accrued custodian fees		1,169,424			28,992			52,310
Accrued administration fees		313,331			19,202			22,477
Accrued distribution fees		271,271			266			1,572
Accrued professional services		52,827			27,473			28,285
Capital stock redeemed		19,124,462			289,532			1,780,276
Investments purchased		8,231,961			—			240,708
Dividends		—			—			—
Gross unrealized depreciation on:
Forward currency contracts		—			—			—
Swap agreements		—			—			—
Premium for swap agreements sold		—			—			—
Written options, at fair value		—			—			—
Other accrued expenses and payables		5,445,254			9,331			20,041
Total liabilities		43,693,269			482,216			2,314,738
Net assets	$	10,797,203,109		$	123,724,462		$	196,307,439
NET ASSETS
Paid in capital	$	12,208,696,025		$	131,451,082		$	344,828,466
Undistributed (distributions in excess of) net investment income (loss)		67,416,271			(45,878	)		(252,731	)
Accumulated net realized gain (loss)		(1,259,355,706	)		(13,035,668	)		(163,697,289	)
Net unrealized appreciation (depreciation) on:
Investments		(94,931,542	)		5,355,200			15,434,960
Non-controlled affiliated issuers		(124,646,660	)		—			—
Foreign currency translations and forward currency contracts		24,721			(274	)		(5,967	)
Written options		—			—			—
Swap agreements		—			—			—
Net assets	$	10,797,203,109		$	123,724,462		$	196,307,439
Institutional Shares
Net assets	$	9,311,692,751		$	122,995,141		$	189,035,050
Shares of capital stock outstanding*		583,417,967			13,928,987			18,387,759
Net asset value, offering and redemption price per share	$	15.96		$	8.83		$	10.28
Open Shares
Net assets	$	1,287,551,847		$	729,321		$	7,272,389
Shares of capital stock outstanding*		78,456,674			82,765			707,429
Net asset value, offering and redemption price per share	$	16.41		$	8.81		$	10.28
R6 Shares
Net assets	$	197,958,511			—			—
Shares of capital stock outstanding*		12,405,126			—			—
Net asset value, offering and redemption price per share	$	15.96			—			—
Cost of investments in securities	$	10,705,664,898		$	117,932,230		$	180,324,774
Cost of non-controlled affiliated issuers	$	268,123,252		$	—		$	—
Proceeds received from written options	$	—		$	—		$	—
Cost of foreign currency	$	2,141,305		$	43,266		$	581,968

* $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.

76  Annual Report

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
$	3,044,207		$	288,917,413		$	186,872,225		$	245,391,854		$	254,574,574		$	12,623,005
	—			—			—			—			—			—
	—			—			2,020,448			36,306			614,949			1,100,000
	—			—			1,180,000			—			3,050,000			—
	223			25,709			124,916			944,068			124,282			25,540
	105			368,350			684,981			447,745			152,227			—
	15,319			391,387			271,604			246,804			471,807			—
	4,215			163,317			1,598,895			4,388,492			4,354,560			141,666
	3,909			—			—			—			—			3,791
	—			15,542			15,804			11,003			—			—
	—			—			840,274			659,591			1,253,114			122,528
	—			—			234,823			—			756,221			—
	—			—			301,808			—			1,030,158			—
	—			—			—			4,219			—			—
	—			—			—			42,807			—			—
	3,067,978			289,881,718			194,145,778			252,172,889			266,381,892			14,016,530
	—			—			—			—			320,000			—
	—			249,083			157,845			152,980			203,050			—
	14,724			53,336			64,036			31,983			23,968			9,904
	7,741			27,561			22,386			25,311			25,533			8,510
	28			1,448			194			1,418			247			27
	26,196			27,829			39,974			40,090			34,057			31,263
	—			203,080			107,157			101,460			313,594			8
	—			4,809			275,272			2,136,371			1,522,997			1,501,525
	—			—			—			1,567			307			—
	—			—			972,191			770,054			1,437,810			177,100
	—			—			116,852			—			400,712			—
	—			—			1,383,500			—			4,403,352			—
	—			—			43,708			119,080			182,589			—
	4,020			37,785			15,233			14,182			6,083			3,942
	52,709			604,931			3,198,348			3,394,496			8,874,299			1,732,279
$	3,015,269		$	289,276,787		$	190,947,430		$	248,778,393		$	257,507,593		$	12,284,251
$	3,376,335		$	386,280,483		$	220,413,921		$	304,126,617		$	274,569,079		$	12,887,790
	(1,873	)		(380,821	)		(738,064	)		(7,591,867	)		(2,371,921	)		(281,399	)
	(478,353	)		(105,718,848	)		(31,700,121	)		(37,324,169	)		(13,676,362	)		(5,541	)
	119,157			9,096,026			3,007,618			(10,258,469	)		(1,102,957	)		(260,864	)
	—			—			—			—			—			—
	3			(53	)		(133,951	)		(118,367	)		(183,779	)		(55,735	)
	—			—			(19,944	)		(55,352	)		(81,976	)		—
	—			—			117,971			—			355,509			—
$	3,015,269		$	289,276,787		$	190,947,430		$	248,778,393		$	257,507,593		$	12,284,251
$	2,895,551		$	282,473,262		$	190,102,203		$	240,833,145		$	256,331,221		$	12,156,051
	332,573			29,418,600			23,468,090			30,470,656			29,244,079			1,447,433
$	8.71		$	9.60		$	8.10		$	7.90		$	8.77		$	8.40
$	119,718		$	6,803,525		$	845,227		$	6,800,510		$	1,176,372		$	128,200
	13,749			707,428			104,144			852,546			133,440			15,090
$	8.71		$	9.62		$	8.12		$	7.98		$	8.82		$	8.50
	—			—			—		$	1,144,738			—			—
	—			—			—			144,864			—			—
	—			—			—		$	7.90			—			—
$	2,925,050		$	279,792,361		$	183,862,195		$	255,650,323		$	255,677,531		$	12,883,869
$	—		$	—		$	—		$	—		$	—		$	—
$	—		$	—		$	23,764		$	63,728		$	100,613		$	—
$	224		$	25,732		$	127,671		$	937,856		$	123,679		$	25,138

Annual Report  77

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2016		Lazard Emerging Markets Equity Portfolio			Lazard Emerging Markets Core Equity Portfolio			Lazard Developing Markets Equity Portfolio
Investment Income (Loss)
Income
Dividends
Unaffiliated issuers		$	275,501,401		$	2,577,616		$	4,602,113
Non-controlled affiliated issuers (Note 5)			2,593,640			—			—
Interest			—			—			—
Total investment income*			278,095,041			2,577,616			4,602,113
Expenses
Management fees (Note 3)			103,749,734			1,171,857			2,725,785
Custodian fees			6,405,883			153,282			298,123
Distribution fees (Open Shares)			3,077,509			5,855			20,072
Administration fees			1,188,500			73,552			104,630
Shareholders’ reports			777,984			12,627			45,459
Shareholders’ services			451,230			28,363			37,293
Directors’ fees and expenses			372,557			8,848			16,430
Professional services			323,594			46,584			69,851
Registration fees			100,412			38,829			41,114
Amortization of offering costs (Note 2(h))			383			—			—
Organization expenses (Note 2(h))			—			—			—
Other††			286,483			8,966			21,724
Total gross expenses			116,734,269			1,548,763			3,380,481
Management fees waived and expenses reimbursed			(7,403	)		(17,669	)		(2,324	)
Administration and shareholders’ services fees waived			—			—			—
Reimbursement of custodian fees (Note 3)			(291,548	)		—			(37,823	)
Total net expenses			116,435,318			1,531,094			3,340,334
Net investment income (loss)			161,659,723			1,046,522			1,261,779
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions, Forward Currency Contracts, Options and Swap Agreements
Net realized gain (loss) on:
Investments**			(569,340,951	)		(10,043,626	)		(28,363,008	)
Non-controlled affiliated issuers			(6,946,908	)		—			—
Foreign currency transactions and forward currency contracts			(1,706,588	)		(32,767	)		(268,531	)
Written options			—			—			—
Swap agreements			—			—			—
Total net realized gain (loss) on investments, foreign currency transactions, forward currency contracts, options and swap agreements			(577,994,447	)		(10,076,393	)		(28,631,539	)
Net change in unrealized appreciation (depreciation) on:
Investments†			2,315,828,523			13,205,131			69,298,401
Non-controlled affiliated issuers			26,580,431			—			—
Foreign currency translations and forward currency contracts			175,324			(637	)		(4,982	)
Written options			—			—			—
Swap agreements			—			—			—
Total net change in unrealized appreciation (depreciation) on investments, foreign currency translations, forward currency contracts, options, and swap agreements			2,342,584,278			13,204,494			69,293,419
Net realized and unrealized gain (loss) on investments, foreign currency transactions, forward currency contracts, options and swap agreements			1,764,589,831			3,128,101			40,661,880
Net increase (decrease) in net assets resulting from operations		$	1,926,249,554		$	4,174,623		$	41,923,659
* Net of foreign withholding taxes of		$	36,426,369		$	308,058		$	460,725
** Net of foreign capital gains taxes of		$	48,024		$	—		$	—
†	Includes net change in unrealized appreciation (depreciation) of foreign capital gains taxes of	$	(3,793,172	)	$	—		$	189,409
†† Includes interest on line of credit of		$	—		$	201		$	6,640

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

78  Annual Report

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
$	73,140		$	5,969,639		$	2,646,397		$	—		$	—		$	—
	—			—			—			—			—			—
	—			—			2,820,635			17,976,677			15,009,403			349,048
	73,140			5,969,639			5,467,032			17,976,677			15,009,403			349,048
	24,775			2,802,328			1,806,973			2,030,226			2,470,627			83,897
	88,540			309,837			304,817			181,311			122,674			55,481
	277			17,016			2,377			17,979			3,376			328
	50,465			106,161			86,254			103,692			101,609			52,654
	1,839			107,505			20,313			33,090			7,249			2,000
	23,930			49,806			27,654			37,469			27,251			26,020
	5,101			15,671			11,242			14,819			14,146			5,481
	38,021			89,796			71,552			57,520			51,271			43,278
	31,496			49,052			38,107			49,000			33,739			28,894
	20,526			—			—			3,150			—			—
	—			—			—			2,388			—			—
	5,557			20,428			13,798			32,565			20,760			6,159
	290,527			3,567,600			2,383,087			2,563,209			2,852,702			304,192
	(239,366	)		(19,287	)		(14,523	)		(15,939	)		(11,668	)		(168,688	)
	(18,750	)		—			—			(6,137	)		—			(18,750	)
	—			(15,542	)		(15,804	)		(11,003	)		—			—
	32,411			3,532,771			2,352,760			2,530,130			2,841,034			116,754
	40,729			2,436,868			3,114,272			15,446,547			12,168,369			232,294
	(274,486	)		(25,885,964	)		(10,144,032	)		(4,275,787	)		4,078,767			(106,694	)
	—			—			—			—			—			—
	(2,194	)		(201,039	)		(293,712	)		(3,076,834	)		(2,100,059	)		77,097
	—			—			(39,811	)		—			(357,123	)		—
	—			—			122,899			—			208,946			—
	(276,680	)		(26,087,003	)		(10,354,656	)		(7,352,621	)		1,830,531			(29,597	)
	503,768			54,247,085			22,389,237			14,025,904			4,183,495			37,379
	—			—			—			—			—			—
	9			2,217			(15,509	)		(71,282	)		(956,199	)		140,452
	—			—			(19,944	)		(55,352	)		(81,976	)		—
	—			—			120,746			—			464,370			—
	503,777			54,249,302			22,474,530			13,899,270			3,609,690			177,831
	227,097			28,162,299			12,119,874			6,546,649			5,440,221			148,234
$	267,826		$	30,599,167		$	15,234,146		$	21,993,196		$	17,608,590		$	380,528
$	10,010		$	702,898		$	328,568		$	225,957		$	(1,850	)	$	1,631
$	—		$	201,036		$	3,327		$	72,335		$	—		$	201
$	—		$	168,929		$	27,908		$	—		$	—		$	—
$	2		$	5,020		$	—		$	8,068		$	—		$	51

Annual Report  79

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

		Lazard Emerging Markets Equity Portfolio						Lazard Emerging Markets Core Equity Portfolio
		Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2016			Year Ended December 31, 2015
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	161,659,723		$	227,360,697		$	1,046,522		$	190,867
Net realized gain (loss) on investments and foreign currency transactions			(577,994,447	)		(636,488,846	)		(10,076,393	)		(2,519,787	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations			2,342,584,278			(2,312,934,505	)		13,204,494			(6,842,940	)
Net increase (decrease) in net assets resulting from operations			1,926,249,554			(2,722,062,654	)		4,174,623			(9,171,860	)
Distributions to shareholders
From net investment income
Institutional Shares			(138,953,537	)		(142,503,178	)		(954,083	)		(180,297	)
Open Shares			(15,721,592	)		(11,377,382	)		(6,127	)		—
R6 Shares			(2,890,782	)		(1,330,764	)		—			—
From net realized gains
Institutional Shares			—			(40,346,125	)		—			—
Open Shares			—			(3,878,486	)		—			—
R6 Shares			—			(357,845	)		—			—
Return of capital
Institutional Shares			—			—			—			(88,130	)
Open Shares			—			—			—			—
Net decrease in net assets resulting from distributions			(157,565,911	)		(199,793,780	)		(960,210	)		(268,427	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			1,850,010,111			2,526,892,552			49,454,736			85,622,157
Open Shares			623,041,652			335,817,831			1,099,565			1,562,389
R6 Shares			28,742,036			177,286,490			—			—
Net proceeds from reinvestment of distributions
Institutional Shares			131,660,395			169,829,270			770,627			213,430
Open Shares			15,351,111			14,707,059			6,092			—
R6 Shares			1,340,183			475,012			—			—
Cost of shares redeemed
Institutional Shares			(2,417,690,835	)		(3,976,707,530	)		(32,632,950	)		(14,024,038	)
Open Shares			(416,901,456	)		(732,854,550	)		(2,953,542	)		(4,268,230	)
R6 Shares			(3,035,306	)		(8,971,555	)		—			—
Net increase (decrease) in net assets from capital stock transactions			(187,482,109	)		(1,493,525,421	)		15,744,528			69,105,708
Redemption fees (Note 2(j))
Institutional Shares			25,687			85,894			939			484
Open Shares			5,762			24,702			—			—
Net increase in net assets from redemption fees			31,449			110,596			939			484
Total increase (decrease) in net assets			1,581,232,983			(4,415,271,259	)		18,959,880			59,665,905
Net assets at beginning of period			9,215,970,126			13,631,241,385			104,764,582			45,098,677
Net assets at end of period*		$	10,797,203,109		$	9,215,970,126		$	123,724,462		$	104,764,582
*	Includes undistributed (distributions in excess of) net investment income (loss) of	$	67,416,271		$	64,636,833		$	(45,878	)	$	(273,866	)
(a) The Portfolio commenced operations on May 29, 2015.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			612,915,207			707,314,715			11,913,811			4,141,159
Shares sold			124,977,329			155,548,937			5,746,230			9,340,075
Shares issued to shareholders from reinvestment of distributions			8,256,831			12,506,774			88,375			24,789
Shares redeemed			(162,731,400	)		(262,455,219	)		(3,819,429	)		(1,592,212	)
Net increase (decrease)			(29,497,240	)		(94,399,508	)		2,015,176			7,772,652
Shares outstanding at end of period			583,417,967			612,915,207			13,928,987			11,913,811
Open Shares
Shares outstanding at beginning of period			60,265,874			83,551,356			273,190			547,633
Shares sold			45,190,925			21,125,275			131,958			161,890
Shares issued to shareholders from reinvestment of distributions			934,081			1,053,670			699			—
Shares redeemed			(27,934,206	)		(45,464,427	)		(323,082	)		(436,333	)
Net increase (decrease)			18,190,800			(23,285,482	)		(190,425	)		(274,443	)
Shares outstanding at end of period			78,456,674			60,265,874			82,765			273,190
R6 Shares†
Shares outstanding at beginning of period			10,761,543			—
Shares sold			1,756,087			11,383,985
Shares issued to shareholders from reinvestment of distributions			84,140			34,735
Shares redeemed			(196,644	)		(657,177	)
Net increase (decrease)			1,643,583			10,761,543
Shares outstanding at end of period			12,405,126			10,761,543

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

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

80  Annual Report

Lazard Developing Markets Equity Portfolio						Lazard Emerging Markets Equity Advantage Portfolio						Lazard Emerging Markets Equity Blend Portfolio
Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2016			Period Ended December 31, 2015 (a)			Year Ended December 31, 2016			Year Ended December 31, 2015
$	1,261,779		$	2,201,358		$	40,729		$	24,631		$	2,436,868		$	5,738,043
	(28,631,539	)		(52,150,416	)		(276,680	)		(202,076	)		(26,087,003	)		(67,692,018	)
	69,293,419			(6,254,455	)		503,777			(384,617	)		54,249,302			580,940
	41,923,659			(56,203,513	)		267,826			(562,062	)		30,599,167			(61,373,035	)
	(1,789,340	)		(1,924,292	)		(43,969	)		(43,330	)		(1,412,652	)		(6,648,716	)
	(45,302	)		(13,305	)		(1,641	)		(1,479	)		(13,457	)		(117,959	)
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			(2,269	)		—			—			(222,431	)
	—			—			(85	)		—			—			(3,946	)
	(1,834,642	)		(1,937,597	)		(47,964	)		(44,809	)		(1,426,109	)		(6,993,052	)
	80,883,514			160,628,933			18,704			3,160,000			67,218,772			123,910,759
	1,869,119			4,472,487			31,224			114,935			1,539,531			22,146,753
	—			—			—			—			—			—
	1,496,598			1,804,758			46,238			43,330			1,378,998			6,577,069
	44,974			13,190			1,726			1,479			12,996			120,456
	—			—			—			—			—			—
	(276,473,758	)		(188,831,386	)		(1,350	)		—			(102,375,323	)		(243,837,698	)
	(6,293,824	)		(8,133,436	)		(14,008	)		—			(2,636,302	)		(132,387,511	)
	—			—			—			—			—			—
	(198,473,377	)		(30,045,454	)		82,534			3,319,744			(34,861,328	)		(223,470,172	)
	522			1,622			—			—			359			1,456
	1			3			—			—			1			194
	523			1,625			—			—			360			1,650
	(158,383,837	)		(88,184,939	)		302,396			2,712,873			(5,687,910	)		(291,834,609	)
	354,691,276			442,876,215			2,712,873			—			294,964,697			586,799,306
$	196,307,439		$	354,691,276		$	3,015,269		$	2,712,873		$	289,276,787		$	294,964,697
$	(252,731	)	$	(1,734,548	)	$	(1,873	)	$	(19,129	)	$	(380,821	)	$	(2,005,101	)
	38,037,272			40,927,103			324,964			—			33,751,879			46,286,681
	8,298,641			16,044,111			2,406			319,608			7,548,866			12,895,558
	147,146			202,540			5,357			5,356			145,464			766,558
	(28,095,300	)		(19,136,482	)		(154	)		—			(12,027,609	)		(26,196,918	)
	(19,649,513	)		(2,889,831	)		7,609			324,964			(4,333,279	)		(12,534,802	)
	18,387,759			38,037,272			332,573			324,964			29,418,600			33,751,879
	1,205,398			1,536,338			11,805			—			831,641			12,384,807
	193,542			475,961			3,367			11,622			166,167			2,271,163
	4,422			1,554			200			183			1,368			14,023
	(695,933	)		(808,455	)		(1,623	)		—			(291,748	)		(13,838,352	)
	(497,969	)		(330,940	)		1,944			11,805			(124,213	)		(11,553,166	)
	707,429			1,205,398			13,749			11,805			707,428			831,641

Annual Report  81

		Lazard Emerging Markets Multi Asset Portfolio						Lazard Emerging Markets Debt Portfolio
		Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2016			Year Ended December 31, 2015
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	3,114,272		$	2,723,881		$	15,446,547		$	17,108,605
Net realized gain (loss) on investments, foreign currency transactions, forward currency contracts, options and swap agreements			(10,354,656	)		(16,665,143	)		(7,352,621	)		(43,771,586	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency translations, forward currency contracts, options and swap agreements			22,474,530			(7,135,560	)		13,899,270			(7,785,822	)
Net increase (decrease) in net assets resulting from operations			15,234,146			(21,076,822	)		21,993,196			(34,448,803	)
Distributions to shareholders
From net investment income
Institutional Shares			(1,827,501	)		(1,613,919	)		(5,751,051	)		(5,267	)
Open Shares			(5,679	)		(5,138	)		(154,103	)		(39	)
R6 Shares			—			—			(11,027	)		—
From net realized gains
Institutional Shares			—			—			—			—
Open Shares			—			—			—			—
Return of capital
Institutional Shares			—			—			(9,184,866	)		(16,941,958	)
Open Shares			—			—			(246,113	)		(126,193	)
R6 Shares			—			—			(17,612	)		—
Net decrease in net assets resulting from distributions			(1,833,180	)		(1,619,057	)		(15,364,772	)		(17,073,457	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			35,709,659			14,378,243			44,616,278			177,866,366
Open Shares			347,386			229,591			1,631,298			7,523,204
R6 Shares			—			—			1,179,000			—
Net proceeds from reinvestment of distributions
Institutional Shares			1,825,988			1,456,346			14,870,730			16,649,970
Open Shares			5,679			5,138			399,977			121,551
R6 Shares			—			—			28,637			—
Cost of shares redeemed
Institutional Shares			(22,385,801	)		(26,085,369	)		(83,660,576	)		(210,940,585	)
Open Shares			(346,949	)		(547,125	)		(2,341,664	)		(1,549,327	)
Net increase (decrease) in net assets from capital stock transactions			15,155,962			(10,563,176	)		(23,276,320	)		(10,328,821	)
Redemption fees (Note 2(j))
Institutional Shares			—			—			20			5,758
Open Shares			—	(a)		—			—			389
Net increase in net assets from redemption fees			—	(a)		—			20			6,147
Total increase (decrease) in net assets			28,556,928			(33,259,055	)		(16,647,876	)		(61,844,934	)
Net assets at beginning of period			162,390,502			195,649,557			265,426,269			327,271,203
Net assets at end of period*		$	190,947,430		$	162,390,502		$	248,778,393		$	265,426,269
*	Includes undistributed (distributions in excess of) net investment income (loss) of	$	(738,064	)	$	(1,544,549	)	$	(7,591,867	)	$	(5,377,175	)
(a) Amount is less than $0.50.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			21,518,578			22,650,250			33,508,407			36,913,195
Shares sold			4,477,948			1,774,725			5,473,740			20,813,447
Shares issued to shareholders from reinvestment of distributions			227,396			193,149			1,829,527			2,003,594
Shares redeemed			(2,755,832	)		(3,099,546	)		(10,341,018	)		(26,221,829	)
Net increase (decrease)			1,949,512			(1,131,672	)		(3,037,751	)		(3,404,788	)
Shares outstanding at end of period			23,468,090			21,518,578			30,470,656			33,508,407
Open Shares
Shares outstanding at beginning of period			101,155			139,329			887,388			124,131
Shares sold			45,492			28,018			205,640			937,651
Shares issued to shareholders from reinvestment of distributions			705			680			48,742			15,058
Shares redeemed			(43,208	)		(66,872	)		(289,224	)		(189,452	)
Net increase (decrease)			2,989			(38,174	)		(34,842	)		763,257
Shares outstanding at end of period			104,144			101,155			852,546			887,388
R6 Shares†
Shares outstanding at beginning of period									—
Shares sold									141,367
Shares issued to shareholders from reinvestment of distributions									3,497
Shares redeemed									—
Net increase (decrease)									144,864
Shares outstanding at end of period									144,864

† The inception date for the R6 Shares was July 28, 2016.

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

82  Annual Report

Lazard Explorer Total Return Portfolio						Lazard Emerging Markets Income Portfolio
Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2016			Period Ended December 31, 2015
$	12,168,369		$	8,079,405		$	232,294		$	9,894
	1,830,531			(24,676,918	)		(29,597	)		(791,521	)
	3,609,690			1,855,619			177,831			(366,500	)
	17,608,590			(14,741,894	)		380,528			(1,148,127	)
	(5,422,116	)		(4,046,291	)		(231,326	)		—
	(26,993	)		(85,810	)		—			—
	—			—			—			—
	—			—			(145,213	)		—
	—			—			(1,518	)		—
	(6,655,559	)		(3,943,160	)		—			(13,481	)
	(33,134	)		(83,623	)		—			—
	—			—			—			—
	(12,137,802	)		(8,158,884	)		(378,057	)		(13,481	)
	21,329,605			244,120,989			52,500			11,194,673
	279,048			2,615,494			—			41,513
	—			—			—			—
	12,073,073			7,992,755			376,539			13,479
	59,738			137,674			1,517			—
	—			—			—			—
	(31,730,009	)		(113,908,679	)		(1,074,555	)		(2,243,669	)
	(538,734	)		(8,120,303	)		(29,307	)		(6,955	)
	1,472,721			132,837,930			(673,306	)		8,999,041
	—			—			—			—
	—			3,695			—			—
	—			3,695			—			—
	6,943,509			109,940,847			(670,835	)		7,837,433
	250,564,084			140,623,237			12,955,086			5,117,653
$	257,507,593		$	250,564,084		$	12,284,251		$	12,955,086
$	(2,371,921	)	$	(2,997,827	)	$	(281,399	)	$	(200,481	)
	29,101,055			14,321,463			1,519,965			544,226
	2,459,699			26,643,183			6,241			1,229,484
	1,377,643			899,825			43,853			1,492
	(3,694,318	)		(12,763,416	)		(122,626	)		(255,237	)
	143,024			14,779,592			(72,532	)		975,739
	29,244,079			29,101,055			1,447,433			1,519,965
	155,824			763,194			18,495			14,487
	32,116			282,705			—			4,784
	6,780			15,177			178			—
	(61,280	)		(905,252	)		(3,583	)		(776	)
	(22,384	)		(607,370	)		(3,405	)		4,008
	133,440			155,824			15,090			18,495

Annual Report  83

The Lazard Funds, Inc. Financial Highlights

LAZARD EMERGING MARKETS EQUITY PORTFOLIO

Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	13.44		$	17.19		$	18.67		$	19.54		$	16.80
Income (loss) from investment operations:
Net investment income (loss) (a)		0.24	^		0.30			0.37			0.35			0.35
Net realized and unrealized gain (loss)		2.52			(3.76	)		(1.13	)		(0.51	)		3.39
Total from investment operations		2.76			(3.46	)		(0.76	)		(0.16	)		3.74
Less distributions from:
Net investment income		(0.24	)		(0.23	)		(0.37	)		(0.36	)		(0.36	)
Net realized gains		—			(0.06	)		(0.35	)		(0.35	)		(0.64	)
Total distributions		(0.24	)		(0.29	)		(0.72	)		(0.71	)		(1.00	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	15.96		$	13.44		$	17.19		$	18.67		$	19.54
Total Return (c)		20.52	%^		–20.16	%		–4.16	%		–0.80	%		22.36	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	9,311,693		$	8,238,638		$	12,156,645		$	12,691,329		$	13,315,172
Ratios to average net assets:
Net expenses		1.09	%^		1.10	%		1.09	%		1.09	%		1.10	%
Gross expenses		1.09	%		1.10	%		1.09	%		1.09	%		1.10	%
Net investment income (loss)		1.59	%^		1.83	%		1.97	%		1.80	%		1.85	%
Portfolio turnover rate		12	%		14	%		12	%		16	%		23	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	13.82		$	17.65		$	19.14		$	20.03		$	17.20
Income (loss) from investment operations:
Net investment income (loss) (a)		0.21	^		0.26			0.34			0.30			0.30
Net realized and unrealized gain (loss)		2.58			(3.84	)		(1.16	)		(0.53	)		3.47
Total from investment operations		2.79			(3.58	)		(0.82	)		(0.23	)		3.77
Less distributions from:
Net investment income		(0.20	)		(0.19	)		(0.32	)		(0.31	)		(0.30	)
Net realized gains		—			(0.06	)		(0.35	)		(0.35	)		(0.64	)
Total distributions		(0.20	)		(0.25	)		(0.67	)		(0.66	)		(0.94	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	16.41		$	13.82		$	17.65		$	19.14		$	20.03
Total Return (c)		20.17	%^		–20.33	%		–4.39	%		–1.14	%		22.03	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,287,552		$	832,706		$	1,474,597		$	2,206,930		$	2,625,843
Ratios to average net assets:
Net expenses		1.35	%^		1.37	%		1.37	%		1.37	%		1.40	%
Gross expenses		1.35	%		1.37	%		1.37	%		1.37	%		1.40	%
Net investment income (loss)		1.35	%^		1.58	%		1.76	%		1.55	%		1.58	%
Portfolio turnover rate		12	%		14	%		12	%		16	%		23	%

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

84  Annual Report

						For the Period
Selected data for a share of capital stock		Year Ended				1/19/15* to
outstanding throughout each period		12/31/16				12/31/15
R6 Shares
Net asset value, beginning of period			$	13.44			$	17.26
Income (loss) from investment operations:
Net investment income (loss) (a)				0.23^				0.27
Net realized and unrealized gain (loss)				2.53				(3.80	)
Total from investment operations				2.76				(3.53	)
Less distributions from:
Net investment income				(0.24	)			(0.23	)
Net realized gains				—				(0.06	)
Total distributions				(0.24	)			(0.29	)
Net asset value, end of period			$	15.96			$	13.44
Total Return (c)				20.52	%^			–20.50	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$197,959					$144,626
Ratios to average net assets (d):
Net expenses				1.09	%^			1.12	%
Gross expenses				1.10	%			1.13	%
Net investment income (loss)				1.54	%^			1.79	%
Portfolio turnover rate				12	%			14	%

^	Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the current period. The amount of the reimbursement was on a per share basis at less than $0.005 per share. There was no impact on the total return of the Portfolio. The impact on net expenses and net investment income (loss) ratios of the Portfolio was less than 0.005%.
*	The inception date for the 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 or reimbursed by the Portfolio’s Investment Manager or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Return for 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 EMERGING MARKETS CORE EQUITY PORTFOLIO

										For the Period
Selected data for a share of capital stock	Year Ended									10/31/13* to
outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	8.60		$	9.62		$	9.83		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.08			0.03			0.03			(0.01	)
Net realized and unrealized gain (loss)		0.22			(1.03	)		(0.15	)		(0.16	)
Total from investment operations		0.30			(1.00	)		(0.12	)		(0.17	)
Less distributions from:
Net investment income		(0.07	)		(0.01	)		(0.08	)		—
Return of capital		—			(0.01	)		(0.01	)		—
Total distributions		(0.07	)		(0.02	)		(0.09	)		—
Redemption fees		—	(b)		—	(b)		—			—
Net asset value, end of period	$	8.83		$	8.60		$	9.62		$	9.83
Total Return (c)		3.47	%		–10.36	%		–1.25	%		–1.70	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	122,995		$	102,421		$	39,832		$	3,265
Ratios to average net assets (d):
Net expenses		1.30	%		1.30	%		1.30	%		1.30	%
Gross expenses		1.31	%		1.52	%		2.28	%		24.66	%
Net investment income (loss)		0.89	%		0.32	%		0.28	%		–0.71	%
Portfolio turnover rate		62	%		46	%		45	%		12	%

										For the Period
Selected data for a share of capital stock	Year Ended									10/31/13* to
outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	8.58		$	9.62		$	9.83		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.07			—	(b)		(0.04	)		(0.01	)
Net realized and unrealized gain (loss)		0.20			(1.04	)		(0.11	)		(0.16	)
Total from investment operations		0.27			(1.04	)		(0.15	)		(0.17	)
Less distributions from:
Net investment income		(0.04	)		—			(0.05	)		—
Return of capital		—			—			(0.01	)		—
Total distributions		(0.04	)		—			(0.06	)		—
Redemption fees		—			—			—	(b)		—
Net asset value, end of period	$	8.81		$	8.58		$	9.62		$	9.83
Total Return (c)		3.17	%		–10.81	%		–1.56	%		–1.70	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	729		$	2,344		$	5,266		$	627
Ratios to average net assets (d):
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%
Gross expenses		2.14	%		2.35	%		2.81	%		30.92	%
Net investment income (loss)		0.85	%		–0.04	%		–0.35	%		–0.90	%
Portfolio turnover rate		62	%		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. Return for a period of less than one year is not annualized.
(d)	Annualized for a period of less than one year.

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

86  Annual Report

LAZARD DEVELOPING MARKETS EQUITY PORTFOLIO

Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	9.04		$	10.43		$	11.81		$	12.40		$	10.68
Income (loss) from investment operations:
Net investment income (loss) (a)		0.05	^		0.06			0.09			0.11			0.09
Net realized and unrealized gain (loss)		1.29			(1.40	)		(1.30	)		(0.60	)		1.74
Total from investment operations		1.34			(1.34	)		(1.21	)		(0.49	)		1.83
Less distributions from:
Net investment income		(0.10	)		(0.05	)		(0.17	)		(0.10	)		(0.11	)
Total distributions		(0.10	)		(0.05	)		(0.17	)		(0.10	)		(0.11	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	10.28		$	9.04		$	10.43		$	11.81		$	12.40
Total Return (c)		14.81	%^		–12.84	%		–10.27	%		–3.90	%		17.16	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	189,035		$	343,788		$	426,847		$	558,716		$	339,771
Ratios to average net assets:
Net expenses		1.21	%^		1.20	%		1.19	%		1.17	%		1.21	%
Gross expenses		1.23	%		1.20	%		1.19	%		1.17	%		1.21	%
Net investment income (loss)		0.48	%^		0.55	%		0.80	%		0.96	%		0.74	%
Portfolio turnover rate		56	%		66	%		57	%		48	%		61	%

Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	9.05		$	10.43		$	11.81		$	12.40		$	10.68
Income (loss) from investment operations:
Net investment income (loss) (a)		0.01	^		0.01			0.08			0.11			0.05
Net realized and unrealized gain (loss)		1.28			(1.38	)		(1.33	)		(0.63	)		1.74
Total from investment operations		1.29			(1.37	)		(1.25	)		(0.52	)		1.79
Less distributions from:
Net investment income		(0.06	)		(0.01	)		(0.13	)		(0.07	)		(0.07	)
Total distributions		(0.06	)		(0.01	)		(0.13	)		(0.07	)		(0.07	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	10.28		$	9.05		$	10.43		$	11.81		$	12.40
Total Return (c)		14.31	%^		–13.11	%		–10.57	%		–4.18	%		16.79	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	7,272		$	10,903		$	16,029		$	44,324		$	93,352
Ratios to average net assets:
Net expenses		1.60	%^		1.57	%		1.49	%		1.45	%		1.53	%
Gross expenses		1.65	%		1.57	%		1.49	%		1.45	%		1.53	%
Net investment income (loss)		0.06	%^		0.13	%		0.70	%		0.90	%		0.43	%
Portfolio turnover rate		56	%		66	%		57	%		48	%		61	%

^	Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the current period. The amount of the reimbursement was on a per share basis at less than $0.005 per share. There was no impact on the total return of the Portfolio. For Institutional Shares, the impact on net expenses and net investment income (loss) ratios of the Portfolio was less than 0.005%. For Open Shares, the net expenses and net investment income (loss) ratios of the Portfolio would be unchanged as the change to current period custodian fees was offset against current period expense waivers/reimbursements with no impact to net expenses or net investment income (loss).
(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  87

LAZARD EMERGING MARKETS EQUITY ADVANTAGE PORTFOLIO

						For the Period
Selected data for a share of capital stock		Year Ended				5/29/15* to
outstanding throughout each period		12/31/16				12/31/15
Institutional Shares
Net asset value, beginning of period			$	8.06			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)				0.12				0.08
Net realized and unrealized gain (loss)				0.67				(1.88	)
Total from investment operations				0.79				(1.80	)
Less distributions from:
Net investment income				(0.13	)			(0.14	)
Return of capital				(0.01	)			—
Total distributions				(0.14	)			(0.14	)
Net asset value, end of period			$	8.71			$	8.06
Total Return (b)				9.83	%			–17.97	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$2,896					$2,618
Ratios to average net assets (c):
Net expenses				1.10	%			1.10	%
Gross expenses				9.57	%			11.47	%
Net investment income (loss)				1.41	%			1.54	%
Portfolio turnover rate				57	%			38	%

					For the Period
Selected data for a share of capital stock	Year Ended				5/29/15* to
outstanding throughout each period	12/31/16				12/31/15
Open Shares
Net asset value, beginning of period		$	8.06			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.09				0.06
Net realized and unrealized gain (loss)			0.68				(1.87	)
Total from investment operations			0.77				(1.81	)
Less distributions from:
Net investment income			(0.11	)			(0.13	)
Return of capital			(0.01	)			—
Total distributions			(0.12	)			(0.13	)
Net asset value, end of period		$	8.71			$	8.06
Total Return (b)			9.51	%			–18.13	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	120			$	95
Ratios to average net assets (c):
Net expenses			1.40	%			1.40	%
Gross expenses			20.02	%			26.37	%
Net investment income (loss)			1.06	%			1.18	%
Portfolio turnover rate			57	%			38	%

*	The Portfolio commenced operations on May 29, 2015.
(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. Return for 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.

88  Annual Report

LAZARD EMERGING MARKETS EQUITY BLEND PORTFOLIO

Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	8.53		$	10.00		$	11.18		$	11.45		$	9.77
Income (loss) from investment operations:
Net investment income (loss) (a)		0.08	^		0.12			0.15			0.11			0.11
Net realized and unrealized gain (loss)		1.04			(1.39	)		(1.12	)		(0.24	)		1.68
Total from investment operations		1.12			(1.27	)		(0.97	)		(0.13	)		1.79
Less distributions from:
Net investment income		(0.05	)		(0.19	)		(0.21	)		(0.08	)		(0.11	)
Net realized gains		—			—			—			(0.05	)		—
Return of capital		—			(0.01	)		—	(b)		(0.01	)		—
Total distributions		(0.05	)		(0.20	)		(0.21	)		(0.14	)		(0.11	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	9.60		$	8.53		$	10.00		$	11.18		$	11.45
Total Return (c)		13.12	%^		–12.74	%		–8.66	%		–1.14	%		18.19	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	282,473		$	287,857		$	463,043		$	478,754		$	201,512
Ratios to average net assets:
Net expenses		1.25	%^		1.20	%		1.28	%		1.30	%		1.34	%
Gross expenses		1.26	%		1.20	%		1.28	%		1.33	%		1.34	%
Net investment income (loss)		0.88	%^		1.22	%		1.33	%		1.00	%		1.01	%
Portfolio turnover rate		47	%		38	%		44	%		48	%		57	%

Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	8.55		$	9.99		$	11.17		$	11.44		$	9.76
Income (loss) from investment operations:
Net investment income (loss) (a)		0.05	^		0.11			0.10			0.07			0.09
Net realized and unrealized gain (loss)		1.04			(1.38	)		(1.10	)		(0.24	)		1.66
Total from investment operations		1.09			(1.27	)		(1.00	)		(0.17	)		1.75
Less distributions from:
Net investment income		(0.02	)		(0.17	)		(0.18	)		(0.04	)		(0.07	)
Net realized gains		—			—			—			(0.05	)		—
Return of capital		—			—	(b)		—	(b)		(0.01	)		—
Total distributions		(0.02	)		(0.17	)		(0.18	)		(0.10	)		(0.07	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	9.62		$	8.55		$	9.99		$	11.17		$	11.44
Total Return (c)		12.74	%^		–12.77	%		–8.95	%		–1.47	%		17.97	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	6,804		$	7,107		$	123,756		$	118,594		$	37,648
Ratios to average net assets:
Net expenses		1.60	%^		1.54	%		1.60	%		1.60	%		1.64	%
Gross expenses		1.89	%		1.54	%		1.63	%		1.69	%		1.77	%
Net investment income (loss)		0.54	%^		1.10	%		0.94	%		0.61	%		0.78	%
Portfolio turnover rate		47	%		38	%		44	%		48	%		57	%

^	Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the current period. The amount of the reimbursement was on a per share basis at less than $0.005 per share. There was no impact on the total return of the Portfolio. The impact on net expenses and net investment income (loss) ratios of the Portfolio was less than 0.005%.
(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  89

LAZARD EMERGING MARKETS MULTI ASSET PORTFOLIO

Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	7.51		$	8.58		$	9.28		$	9.70		$	8.57
Income (loss) from investment operations:
Net investment income (loss) (a)		0.14	^		0.13			0.17			0.13			0.09
Net realized and unrealized gain (loss)		0.53			(1.12	)		(0.70	)		(0.37	)		1.11
Total from investment operations		0.67			(0.99	)		(0.53	)		(0.24	)		1.20
Less distributions from:
Net investment income		(0.08	)		(0.08	)		(0.17	)		(0.10	)		(0.07	)
Net realized gains		—			—			—			(0.08	)		—
Return of capital		—			—			—	(b)		—			—
Total distributions		(0.08	)		(0.08	)		(0.17	)		(0.18	)		(0.07	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	8.10		$	7.51		$	8.58		$	9.28		$	9.70
Total Return (c)		8.91	%^		–11.59	%		–5.57	%		–2.41	%		14.02	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	190,102		$	161,629		$	194,451		$	223,328		$	125,019
Ratios to average net assets:
Net expenses		1.30	%^		1.30	%		1.28	%		1.30	%		1.30	%
Gross expenses		1.31	%		1.32	%		1.28	%		1.31	%		1.57	%
Net investment income (loss)		1.73	%^		1.52	%		1.86	%		1.42	%		1.01	%
Portfolio turnover rate		111	%		109	%		122	%		155	%		160	%

Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	7.53		$	8.60		$	9.29		$	9.71		$	8.59
Income (loss) from investment operations:
Net investment income (loss) (a)		0.12^			0.10			0.15			0.10			0.08
Net realized and unrealized gain (loss)		0.52			(1.12	)		(0.70	)		(0.37	)		1.08
Total from investment operations		0.64			(1.02	)		(0.55	)		(0.27	)		1.16
Less distributions from:
Net investment income		(0.05	)		(0.05	)		(0.14	)		(0.07	)		(0.04	)
Net realized gains		—			—			—			(0.08	)		—
Return of capital		—			—			—	(b)		—			—
Total distributions		(0.05	)		(0.05	)		(0.14	)		(0.15	)		(0.04	)
Redemption fees		—	(b)		—			—			—	(b)		—
Net asset value, end of period	$	8.12		$	7.53		$	8.60		$	9.29		$	9.71
Total Return (c)		8.57	%^		–11.85	%		–5.89	%		–2.73	%		13.28	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	845		$	761		$	1,198		$	2,185		$	858
Ratios to average net assets:
Net expenses		1.60	%^		1.60	%		1.60	%		1.60	%		1.60	%
Gross expenses		2.94	%		2.96	%		2.23	%		2.52	%		3.82	%
Net investment income (loss)		1.46	%^		1.22	%		1.63	%		1.03	%		0.82	%
Portfolio turnover rate		111	%		109	%		122	%		155	%		160	%

^	Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the current period. The amount of the reimbursement was on a per share basis at less than $0.005 per share. There was no impact on the total return of the Portfolio. The net expenses and net investment income (loss) ratios of the Portfolio would be unchanged as the change to current period custodian fees was offset against current period expense waivers/reimbursements with no impact to net expenses or net investment income (loss).
(a)	Net investment income (loss) has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.

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

90  Annual Report

LAZARD EMERGING MARKETS DEBT PORTFOLIO

Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	7.71		$	8.84		$	9.53		$	10.85		$	9.76
Income (loss) from investment operations:
Net investment income (loss) (a)		0.48	^		0.39			0.49			0.49			0.48
Net realized and unrealized gain (loss)		0.19			(1.13	)		(0.66	)		(1.25	)		1.33
Total from investment operations		0.67			(0.74	)		(0.17	)		(0.76	)		1.81
Less distributions from:
Net investment income		(0.19	)		—	(b)		(0.15	)		(0.52	)		(0.48	)
Net realized gains		—			—			—			(0.04	)		(0.24	)
Return of capital		(0.29	)		(0.39	)		(0.37	)		—			—
Total distributions		(0.48	)		(0.39	)		(0.52	)		(0.56	)		(0.72	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	7.90		$	7.71		$	8.84		$	9.53		$	10.85
Total Return (c)		8.64	%^		–8.55	%		–2.07	%		–7.13	%		18.95	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	240,833		$	258,517		$	326,165		$	446,180		$	286,163
Ratios to average net assets :
Net expenses		0.96	%^		0.96	%		0.96	%		0.97	%		1.00	%
Gross expenses		0.96	%		0.96	%		0.96	%		0.97	%		1.03	%
Net investment income (loss)		5.90	%^		4.69	%		5.14	%		4.84	%		4.60	%
Portfolio turnover rate		118	%		162	%		204	%		108	%		220	%

Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	7.79		$	8.91		$	9.59		$	10.88		$	9.77
Income (loss) from investment operations:
Net investment income (loss) (a)		0.46	^		0.36			0.46			0.45			0.45
Net realized and unrealized gain (loss)		0.19			(1.11	)		(0.68	)		(1.24	)		1.35
Total from investment operations		0.65			(0.75	)		(0.22	)		(0.79	)		1.80
Less distributions from:
Net investment income		(0.18	)		—	(b)		(0.09	)		(0.46	)		(0.45	)
Net realized gains		—			—			—			(0.04	)		(0.24	)
Return of capital		(0.28	)		(0.37	)		(0.37	)		—			—
Total distributions		(0.46	)		(0.37	)		(0.46	)		(0.50	)		(0.69	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	7.98		$	7.79		$	8.91		$	9.59		$	10.88
Total Return (c)		8.27	%^		–8.64	%		–2.53	%		–7.35	%		18.68	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	6,801		$	6,910		$	1,107		$	9,310		$	1,138
Ratios to average net assets :
Net expenses		1.28	%^		1.30	%		1.30	%		1.30	%		1.30	%
Gross expenses		1.40	%		1.75	%		1.71	%		1.39	%		2.97	%
Net investment income (loss)		5.59	%^		4.54	%		4.80	%		4.45	%		4.26	%
Portfolio turnover rate		118	%		162	%		204	%		108	%		220	%

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

Annual Report  91

	For the Period
Selected data for a share of capital stock	7/28/16* to
outstanding throughout the period	12/31/16
R6 Shares
Net asset value, beginning of period		$	8.34
Income (loss) from investment operations:
Net investment income (loss) (a)			0.20	^
Net realized and unrealized gain (loss)			(0.44	)
Total from investment operations			(0.24	)
Less distributions from:
Net investment income			(0.08	)
Return of capital			(0.12	)
Total distributions			(0.20	)
Net asset value, end of period		$	7.90
Total Return (c)			–2.93	%^
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	1,145
Ratios to average net assets (d):
Net expenses			0.90	%^
Gross expenses			2.21	%
Net investment income (loss)			5.73	%^
Portfolio turnover rate			118	%

^	Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the current period. The amount of the reimbursement was on a per share basis at less than $0.005 per share. For Institutional Shares, there was a 0.14% impact on the total return and the impact on net expenses and net investment income (loss) ratios of the Portfolio was less than 0.005%. For Open and R6 Shares, there was no impact on the total return and the net expenses and net investment income (loss) ratios of the Portfolio would be unchanged as the change to current period custodian fees was offset against current period expense waivers/reimbursements with no impact to net expenses or net investment income (loss).
*	The inception date for the R6 Shares was July 28, 2016.
(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. Return for a period of less than one year is not annualized.
(d)	Annualized for a period of less than one year except for non-recurring expenses.

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

92  Annual Report

LAZARD EXPLORER TOTAL RETURN PORTFOLIO

										For the Period
Selected data for a share of capital stock	Year Ended									6/28/13* to
outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	8.56		$	9.32		$	9.86		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.42			0.28			0.36			0.16
Net realized and unrealized gain (loss)		0.21			(0.75	)		(0.38	)		(0.12	)
Total from investment operations		0.63			(0.47	)		(0.02	)		0.04
Less distributions from:
Net investment income		(0.19	)		(0.15	)		(0.49	)		(0.18	)
Net realized gains		—			—			(0.01	)		—
Return of capital		(0.23	)		(0.14	)		(0.02	)		—
Total distributions		(0.42	)		(0.29	)		(0.52	)		(0.18	)
Redemption fees		—			—			—	(b)		—
Net asset value, end of period	$	8.77		$	8.56		$	9.32		$	9.86
Total Return (c)		7.47	%		–5.13	%		–0.21	%		0.38	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	256,331		$	249,222		$	133,473		$	31,450
Ratios to average net assets (d):
Net expenses		1.12	%		1.16	%		1.24	%		1.30	%
Gross expenses		1.12	%		1.16	%		1.30	%		2.97	%
Net investment income (loss)		4.80	%		3.17	%		3.57	%		3.15	%
Portfolio turnover rate		173	%		262	%		182	%		69	%

										For the Period
Selected data for a share of capital stock	Year Ended									6/28/13* to
outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	8.61		$	9.37		$	9.88		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.39			0.24			0.33			0.14
Net realized and unrealized gain (loss)		0.21			(0.75	)		(0.38	)		(0.11	)
Total from investment operations		0.60			(0.51	)		(0.05	)		0.03
Less distributions from:
Net investment income		(0.17	)		(0.12	)		(0.43	)		(0.15	)
Net realized gains		—			—			(0.01	)		—
Return of capital		(0.22	)		(0.14	)		(0.02	)		—
Total distributions		(0.39	)		(0.26	)		(0.46	)		(0.15	)
Redemption fees		—			0.01			—	(b)		—
Net asset value, end of period	$	8.82		$	8.61		$	9.37		$	9.88
Total Return (c)		7.07	%		–5.42	%		–0.52	%		0.27	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,176		$	1,342		$	7,150		$	2,665
Ratios to average net assets (d):
Net expenses		1.48	%		1.50	%		1.54	%		1.60	%
Gross expenses		2.34	%		1.66	%		1.78	%		5.01	%
Net investment income (loss)		4.46	%		2.62	%		3.26	%		2.78	%
Portfolio turnover rate		173	%		262	%		182	%		69	%

*	The Portfolio commenced operations on June 28, 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. Return for 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  93

LAZARD EMERGING MARKETS INCOME PORTFOLIO

							For the Period
Selected data for a share of capital stock	Year Ended						4/30/14* to
outstanding throughout each period	12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	8.42		$	9.16		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.16			0.01			0.01
Net realized and unrealized gain (loss)		0.08			(0.74	)		(0.85	)
Total from investment operations		0.24			(0.73	)		(0.84	)
Less distributions from:
Net investment income		(0.16	)		—			—
Net realized gains		(0.10	)		—			—
Return of capital		—			(0.01	)		—
Total distributions		(0.26	)		(0.01	)		—
Net asset value, end of period	$	8.40		$	8.42		$	9.16
Total Return (b)		2.82	%		–7.94	%		–8.30	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	12,156		$	12,800		$	4,985
Ratios to average net assets (c):
Net expenses		0.90	%		0.90	%		0.90	%
Gross expenses		2.25	%		2.55	%		5.15	%
Net investment income (loss)		1.80	%		0.09	%		0.10	%
Portfolio turnover rate		174	%		175	%		125	%

							For the Period
Selected data for a share of capital stock	Year Ended						4/30/14* to
outstanding throughout each period	12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	8.39		$	9.14		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.13			(0.02	)		(0.01	)
Net realized and unrealized gain (loss)		0.08			(0.73	)		(0.85	)
Total from investment operations		0.21			(0.75	)		(0.86	)
Less distributions from:
Net realized gains		(0.10	)		—			—
Total distributions		(0.10	)		—			—
Net asset value, end of period	$	8.50		$	8.39		$	9.14
Total Return (b)		2.52	%		–8.21	%		–8.50	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	128		$	155		$	132
Ratios to average net assets (c):
Net expenses		1.20	%		1.20	%		1.20	%
Gross expenses		12.29	%		12.19	%		13.96	%
Net investment income (loss)		1.51	%		–0.18	%		–0.18	%
Portfolio turnover rate		174	%		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. Return for 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.

94  Annual Report

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2016

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-three noload portfolios (each referred to as a “Portfolio”). 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.

The Portfolios, other than Emerging Markets Debt, Explorer Total Return and Emerging Markets Income Portfolios, are operated as “diversified” funds, as defined in the 1940 Act.

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).

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—Market values for securities listed on the New York Stock Exchange (“NYSE”), NASDAQ national market or other US or foreign exchanges or markets are generally based on the last reported sales price on the exchange or market on which the security is principally traded 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, 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 net asset value (“NAV”) per share.

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.

Calculation of a Portfolio’s NAV may not take place contemporaneously with the determination of the prices of portfolio assets used in such calculation. Trading on Europe, Latin and South America and Far East securities exchanges and in over-the-counter markets ordinarily is completed well before the close of business on each business day in New York (i.e., a day on which the NYSE is open). In addition, European or Far Eastern securities trading generally or in a particular country or countries may not take place on all business days in New York and on which the NAV of a Portfolio is calculated.

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

If a significant event materially affecting the value of securities occurs between the close of the exchange or market on which the security is principally traded

Annual Report  95

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 exdividend date except for certain dividends from non-US securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by a Portfolio. Interest income, if any, is accrued daily. A Portfolio amortizes premiums and accretes discounts on fixed-income securities using the effective yield method. A Portfolio may be subject to taxes imposed by non-US 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 recogni-

tion 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 transactions and forward currency contracts represent 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 translations 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 real-

96    Annual Report

ized 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, 2016, the 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, the 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. Put and call options purchased are accounted for in the same manner as portfolio securities and other assets.

The risk involved in writing an option is that the Portfolios bear the market risk of an unfavorable change in the price of the security or currency underlying the written option. A Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolios may not be able to enter into a closing transaction because of an illiquid market. Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. 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, 2016, transactions in options written were as follows:

Emerging Markets Multi Asset Portfolio

Written Options	Number of Contracts			Premiums
Options outstanding at beginning of year		—		$	—
Options written		44,100			40,742
Options exercised		(5,700	)		(8,058	)
Options expired		(6,400	)		(8,920	)
Options outstanding at end of year		32,000		$	23,764

Emerging Markets Debt Portfolio

Written Options	Number of Contracts		Premiums
Options outstanding at beginning of year		—	$	—
Options written		85,800		63,728
Options exercised		—		—
Options expired		—		—
Options outstanding at end of year		85,800	$	63,728

Explorer Total Return Portfolio

Written Options	Number of Contracts			Premiums
Options outstanding at beginning of year		—		$	—
Options written		243,800			252,600
Options exercised		(51,100	)		(79,972	)
Options expired		(57,200	)		(72,015	)
Options outstanding at end of year		135,500		$	100,613

None of the other Portfolios presented traded in options during the year ended December 31, 2016.

(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 transac-

Annual Report   97

tions. 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 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, 2016, Emerging Markets Multi Asset and Explorer Total Return Portfolios traded in swap agreements.

(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, 2016, 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	$	(75,506,433	)	$	(1,130,269,301	)
Emerging Markets Core Equity		(6,786,715	)		(5,091,205	)
Developing Markets Equity		(35,881,173	)		(118,279,846	)
Emerging Markets Equity Advantage		(350,154	)		(119,821	)
Emerging Markets Equity Blend		(10,968,078	)		(82,061,711	)
Emerging Markets Multi Asset		(7,487,533	)		(21,526,281	)
Emerging Markets Debt		(24,002,774	)		(12,319,128	)
Explorer Total Return		(13,588,692	)		—

Under current tax law, post-October capital losses or certain late-year ordinary 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, 2016, the following Portfolios elected to defer such losses as follows:

98   Annual Report

Portfolio		Post-October Capital Loss Deferral			Late-Year Ordinary Loss Deferral
Developing Markets Equity	$	—		$	(196,648	)
Emerging Markets Equity Advantage		—			(1,873	)
Emerging Markets Equity Blend		—			(143,319	)
Emerging Markets Debt		—			(4,297,871	)
Explorer Total Return		—			(313,107	)
Emerging Markets Income		(5,541	)		(296,884	)

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 (2013-2015), or expected to be taken in the Portfolios’ 2016 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, wash sales, passive foreign investment companies, return of capital distributions, certain fixed-income securities, expenses 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	$	(438,507	)	$	(1,314,374	)	$	1,752,881
Emerging Markets Core Equity		(4,347	)		141,676			(137,329	)
Developing Markets Equity		(1,091	)		2,054,680			(2,053,589	)
Emerging Markets Equity Advantage		(23,814	)		24,491			(677	)
Emerging Markets Equity Blend		(2,688	)		613,521			(610,833	)
Emerging Markets Multi Asset		(831,260	)		(474,607	)		1,305,867
Emerging Markets Debt		(7,468,112	)		(2,296,467	)		9,764,579
Explorer Total Return		(6,772,769	)		595,339			6,177,430
Emerging Markets Income		(207,781	)		(81,886	)		289,667

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

	Ordinary Income				Long-Term Capital Gain
Portfolio		2016		2015	2016			2015
Emerging Markets Equity	$	157,565,911	$	155,213,880	$	—	$	44,579,900
Emerging Markets Core Equity*		960,210		180,297		—		—
Developing Markets Equity		1,834,642		1,937,597		—		—
Emerging Markets Equity Advantage*		45,610		44,809		—		—
Emerging Markets Equity Blend*		1,426,109		6,766,675		—		—
Emerging Markets Multi Asset		1,833,180		1,619,057		—		—
Emerging Markets Debt*		5,916,181		5,306		—		—
Explorer Total Return*		5,449,109		4,132,101		—		—
Emerging Markets Income*		240,170		—		137,887		—

* Emerging Markets Core Equity, Emerging Markets Equity Advantage, Emerging Markets Equity Blend, Emerging Markets Debt, Explorer Total Return and Emerging Markets Income Portfolios had return of capital distributions of $0, $2,354, $0, $9,448,591, $6,688,693 and $0 in 2016, and $88,130, $0, $226,377, $17,068,151, $4,026,783 and $13,481 in 2015, respectively.

Annual Report   99

At December 31, 2016, 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
Emerging Markets Equity	$	67,418,937		$	(1,205,775,734	)	$	(273,136,119	)
Emerging Markets Core Equity		29,729			(11,877,920	)		4,121,571
Developing Markets Equity		(196,648	)		(154,161,019	)		5,836,640
Emerging Markets Equity Advantage		(1,873	)		(469,975	)		110,782
Emerging Markets Equity Blend		(143,319	)		(93,029,789	)		(3,830,588	)
Emerging Markets Multi Asset		43,655			(29,013,814	)		(496,332	)
Emerging Markets Debt		(4,297,871	)		(36,321,902	)		(14,728,451	)
Explorer Total Return		(313,107	)		(13,588,692	)		(3,159,687	)
Emerging Markets Income		(296,884	)		(5,541	)		(301,114	)

(h) Offering and Organizational 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. Organizational costs are expensed as incurred.

(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—Until August 15, 2016, the Portfolios imposed 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. As of August 15, 2016, redemption fees no longer apply to transactions in Portfolio shares.

(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 resulting from operations during the reporting period. Actual results could differ from those estimates.

(l) Net Asset Value—NAV per share for each class of each Portfolio is determined each day the NYSE is open for trading as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time). The Fund will not treat an intraday unscheduled disruption in NYSE trading as a closure of the NYSE, and will price its shares as of 4:00 p.m., if the particular disruption directly affects only the NYSE. 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.

3. Investment Management, Administration, Custody, 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:

100   Annual Report

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 (a)	0.75
Explorer Total Return (b)	0.95
Emerging Markets Income	0.65

(a)	From January 1, 2016 to June 28, 2016, percentage was 0.80%.
(b)	From January 1, 2016 to June 28, 2016, percentage was 1.00%.

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” (as defined in Form N-1A) and extraordinary expenses, and excluding shareholder redemption fees or other transaction fees, but including the management fee stated in the Management Agreement between the Investment Manager and the Fund, on behalf of the Portfolios, exceed the following percentages of the value of the Portfolios’ 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	%	2017
Emerging Markets Core Equity	1.30		1.60		N/A		2017
Developing Markets Equity	1.30		1.60		N/A		2017
Emerging Markets Equity Advantage	1.10		1.40		N/A		2017	(a)
Emerging Markets Equity Blend	1.30		1.60		N/A		2017
Emerging Markets Multi Asset	1.30		1.60		N/A		2026	(b)
Emerging Markets Debt	0.95		1.25		0.90		2017	(c)
Explorer Total Return	1.15		1.45		N/A		2017	(d)
Emerging Markets Income	0.90		1.20		N/A		2017

(a)	Agreement is through May 29, 2017.
(b)	Agreement is through April 29, 2026.
(c)	From January 1, 2016 through June 28, 2016, percentages were 1.00%, 1.30% and 0.95%, respectively. From June 29, 2016 through May 1, 2017, percentages are 0.95%, 1.25% and 0.90%, respectively. Agreement extends, for May 2, 2017 through April 29, 2026, at rates of 1.10%, 1.40% and 1.05%, respectively.
(d)	From January 1, 2016 through June 28, 2016, percentages were 1.20% and 1.50%, respectively.

In addition to the Fee Reduction/Waiver, through May 1, 2017, to the extent the “Total Annual Fund Operating Expenses” (as defined in Form N-1A) of the R6 Shares of a Portfolio exceed the Total Annual Fund Operating Expenses of the Portfolio’s Institutional Shares (in each case, not including management fees, custodian fees or other expenses related to the management of the Portfolio’s assets), the Investment Manager will bear the expenses of the R6 Shares in the amount of such excess.

During the year ended December 31, 2016, 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	$	5,113	$	—	$	12,556	$	—
Developing Markets Equity		—		—		2,324		—
Emerging Markets Equity Advantage		23,836		195,674		939		18,917
Emerging Markets Equity Blend		—		—		19,287		—
Emerging Markets Multi Asset		1,874		—		9,495		3,154
Emerging Markets Debt		—		—		8,734		—
Explorer Total Return		—		—		11,668		—
Emerging Markets Income		83,043		71,264		854		13,527

	R6 Shares
Portfolio		Management Fees Waived		Expenses Reimbursed
Emerging Markets Equity	$	7,403	$	—
Emerging Markets Debt		3,765		3,440

The aforementioned waivers and/or reimbursements are not subject to recoupment by the Investment Manager.

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

Annual Report   101

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, 2016, State Street waived its fees as follows:

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

State Street also serves as custodian for the Fund in accordance with a custodian agreement to provide certain custody services.

In December 2015, State Street announced that it had identified inconsistencies in the way in which clients were invoiced for out-of-pocket expenses from 1998 until 2015. The dollar amount difference between what was charged and what should have been charged, plus interest, will be paid back to the affected Portfolios in March 2017 as a reimbursement. This reimbursement was recognized as a change in accounting estimate and reflected as “Reimbursement of custodian fees” in the Statements of Operations. Pursuant to the expense limitations described in Note 3, certain Portfolios have experienced management fee waivers during the year ended December 31, 2016. Accordingly, the reimbursement of out-of-pocket expenses resulted in the reduction in the waiver of management fees for certain Portfolios for the year ended December 31, 2016.

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, 2016, BFDS waived $6,137 of its fee for the Emerging Markets Debt Portfolio.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2016, 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: (1) an annual retainer of $190,000, (2) an additional annual fee of $20,000 to the lead Independent Director (an “Independent Director” is a Director who is not an “interested person” (as defined in the 1940 Act) of the Fund), and (3) an additional annual fee of $10,000 to the Audit Committee Chair. Effective January 1, 2017, the aggregate compensation for Independent Directors for the Lazard Fund Complex is comprised of: (1) an annual retainer of $210,000, (2) an additional annual fee of $30,000 to the lead Independent Director, and (3) an additional annual fee of $20,000 to the Audit Committee Chair. The Independent Directors may be paid additional compensation for participation on ad hoc committees or other work performed on behalf of the Board. The Independent 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. Independent Directors’ fees are allocated among the portfolios in the Lazard Fund Complex at a rate of $5,000 per portfolio with the remainder allocated based upon each portfolio’s proportionate share of combined net assets. The Statements of Operations show the Independent Directors’ fees and expenses paid by each Portfolio.

102   Annual Report

5. Securities Transactions and Transactions with Affiliates

Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2016 were as follows:

Portfolio	Purchases		Sales
Emerging Markets Equity	$	1,237,685,016	$	1,719,037,308
Emerging Markets Core Equity		91,322,664		70,920,074
Developing Markets Equity		149,876,160		345,465,383
Emerging Markets Equity Advantage		1,899,413		1,660,361
Emerging Markets Equity Blend		127,923,896		170,516,945
Emerging Markets Multi Asset		169,292,083		170,946,299
Emerging Markets Debt		298,071,994		341,680,073
Explorer Total Return		356,592,916		393,068,170
Emerging Markets Income		8,225,319		5,437,501

	US Treasury Securities
Portfolio	Purchases		Sales
Emerging Markets Multi Asset	$	5,876,191	$	6,878,014
Explorer Total Return		36,693,936		44,589,447

For the year ended December 31, 2016, the Portfolios did not engage in any cross-trades in accordance with Rule 17a-7 under the 1940 Act, and 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, 2016, the Investment Manager owned 89.62% and 35.29% of the outstanding shares of Emerging Markets Equity Advantage and Emerging Markets Income Portfolios, respectively.

Holdings of 5% Voting Securities of Portfolio Companies

The 1940 Act defines “affiliated persons” to include a portfolio company in which a Portfolio owns 5% or more of the outstanding voting securities. Investments in “affiliated persons” for Emerging Markets Equity Portfolio for the year ended December 31, 2016, were as follows:

Non-Controlled Affiliates	Number of Shares Held at December 31, 2015		Gross Additions		Gross Reductions			Number of Shares Held at December 31, 2016		Fair Value at December 31, 2016			Investment Income			Realized Gain (Loss)
PPC, Ltd.		33,848,906		88,690,211		(36,464,859	)		86,074,258		$	34,452,761		$	607,607		$	(5,186,918	)
Weichai Power Co., Ltd., Class H		57,549,000		15,400,644		(1,859,000	)		71,090,644			109,023,831			1,986,033			(1,759,990	)
Total Affiliated Securities (Fair value is 1.33% of Net Assets)											$	143,476,592		$	2,593,640		$	(6,946,908	)

6. Line of Credit

The Fund has a $50 million Line of Credit Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings was payable at the higher of the Federal Funds rate or One-Month LIBOR rate plus 1.00%, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.20% per annum fee 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, 2016, the following 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 Core Equity	$	791,333	$	1,400,000		1.52	%		6
Developing Markets Equity		6,593,680		14,100,000		1.45			25
Emerging Markets Equity Advantage		7,371		8,600		1.44			7
Emerging Markets Equity Blend		11,465,455		26,100,000		1.43			11
Emerging Markets Debt		8,448,739		17,300,000		1.49			23
Emerging Markets Income		625,000		625,000		1.48			2

* For days borrowings were outstanding.

Annual Report  103

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. A Portfolio’s outstanding line of credit, if any, would be categorized as Level 2 (see Note 9).

7. Investment Risks

(a) Non-US Securities Risk—A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity.

(b) Emerging Market Risk—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. Investments in these countries may be subject to political, economic, legal, market and currency risks. The risks may include less protection of property rights and uncertain political and economic policies, the imposition of capital controls and/or foreign investment limitations by a country, nationalization of businesses and the imposition of sanctions by other countries, such as the US. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies.

(c) Foreign Currency Risk—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 Investment Manager does not intend to actively hedge the Portfolios’ foreign currency exposure.

(d) 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. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening.

Prices of bonds and other debt securities tend to move inversely with changes in interest rates. Typically, a rise in rates will adversely affect debt securities and, accordingly, will cause the value of a Portfolio’s investments in these securities to decline. Interest rate risk is usually greater for fixed-income securities with longer maturities or durations. A rise in interest rates (or the expectation of a rise in interest rates) may result in periods of volatility, decreased liquidity and increased redemptions, and, as a result, the Portfolio may have to liquidate portfolio securities at disadvantageous prices. Risks associated with rising interest rates are heightened given that interest rates in the US and other countries are at or near historic lows.

A Portfolio’s 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 a Portfolio’s 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 prices of high yield securities can fall in response to negative news about the issuer or its industry, or the economy in general to a greater extent than those of higher-rated securities. The market for these securities may be less liquid and therefore these securities may be harder to value or sell at

104  Annual Report

an acceptable price, especially during times of market volatility or decline.

Some fixed-income securities may give the issuer the option to call, or redeem, the securities before their maturity. If securities held by a Portfolio are called during a time of declining interest rates (which is typically the case when issuers exercise options to call outstanding securities), the Portfolio may have to reinvest the proceeds in an investment offering a lower yield (and the Portfolio may not fully benefit from any increase in the value of its portfolio holdings as a result of declining interest rates).

(e) Derivatives Risk—Forward currency contracts, options, futures contracts and credit default swap agreements and other derivatives transactions, including those entered into for hedging purposes (i.e., seeking to protect Portfolio investments), may increase volatility, reduce returns, limit gains or magnify losses, perhaps substantially, particularly since most derivatives have a leverage component that provides investment exposure in excess of the amount invested. Forward currency contracts, swap agreements 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 in which a Portfolio may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related currency, interest rate, security or other reference asset. As such, a small investment could have a potentially large impact on the Portfolio’s performance. In fact, many derivatives may be subject to greater risks than those associated with investing directly in the underlying or other reference asset. Derivatives transactions incur costs, either explicitly or implicitly, which reduce returns, and costs of engaging in such transactions may outweigh any gains or any losses averted from hedging activities. Successful use of derivatives, whether for hedging or for other investment purposes, is subject to the Investment Manager’s ability to predict correctly movements in the direction of the relevant reference asset or market and, for hedging activities, correlation of the derivative instruments used with the investments seeking to be hedged. Use of derivatives trans-

actions, even if entered into for hedging purposes, may cause a 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 assets and liabilities

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

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

Annual Report  105

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

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

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2016:

Description	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2016
Emerging Markets Equity Portfolio
Common Stocks*
Brazil	$	145,811,976		$	992,070,220	$	—	$	1,137,882,196
China		852,310,049			878,780,022		—		1,731,090,071
Egypt		—			89,601,049		—		89,601,049
Hong Kong		—			41,455,846		—		41,455,846
Hungary		—			204,951,445		—		204,951,445
India		—			1,021,990,715		—		1,021,990,715
Indonesia		235,041,526			397,751,285		—		632,792,811
Malaysia		—			68,204,192		—		68,204,192
Pakistan		—			274,064,834		—		274,064,834
Russia		167,822,079			916,396,965		—		1,084,219,044
South Africa		—			966,759,757		—		966,759,757
South Korea		—			1,331,058,870		—		1,331,058,870
Taiwan		—			502,817,342		—		502,817,342
Thailand		—			134,343,417		—		134,343,417
Turkey		—			480,635,378		—		480,635,378
Other		616,596,115			—		—		616,596,115
Short-Term Investment		440,677,038			—		—		440,677,038
Total	$	2,458,258,783		$	8,300,881,337	$	—	$	10,759,140,120

106  Annual Report

Description	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2016
Emerging Markets Core Equity Portfolio
Common Stocks*
Brazil	$	2,007,000		$	7,206,523	$	—	$	9,213,523
China		8,608,320			12,874,094		—		21,482,414
Hong Kong		—			2,473,216		—		2,473,216
India		4,723,239			7,749,298		—		12,472,537
Indonesia		1,483,077			1,790,139		—		3,273,216
Philippines		—			2,416,316		—		2,416,316
Portugal		—			1,518,557		—		1,518,557
Russia		717,996			10,037,515		—		10,755,511
South Africa		—			6,064,302		—		6,064,302
South Korea		—			16,883,379		—		16,883,379
Taiwan		8,775,190			6,164,085		—		14,939,275
Thailand		—			2,667,359		—		2,667,359
Turkey		—			1,973,152		—		1,973,152
United Arab Emirates		—			1,021,595		—		1,021,595
Other		13,799,475			—		—		13,799,475
Preferred Stocks*		1,860,855			—		—		1,860,855
Short-Term Investment		472,748			—		—		472,748
Total	$	42,447,900		$	80,839,530	$	—	$	123,287,430
Developing Markets Equity Portfolio
Common Stocks*
Brazil	$	3,080,857		$	2,691,426	$	—	$	5,772,283
China		14,213,585			36,951,877		—		51,165,462
Colombia		3,357,944			1,232,924		—		4,590,868
Hong Kong		—			3,478,233		—		3,478,233
India		7,123,949			18,599,721		—		25,723,670
Indonesia		—			6,133,146		—		6,133,146
Portugal		—			2,693,449		—		2,693,449
Russia		5,257,570			19,433,791		—		24,691,361
South Africa		—			6,848,242		—		6,848,242
South Korea		—			17,879,231		—		17,879,231
Taiwan		1,470,233			15,503,908		—		16,974,141
Turkey		—			8,372,455		—		8,372,455
Other		14,100,950			—		—		14,100,950
Preferred Stocks*		3,485,420			—		—		3,485,420
Short-Term Investment		3,850,823			—		—		3,850,823
Total	$	55,941,331		$	139,818,403	$	—	$	195,759,734

Annual Report  107

Description	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2016
Emerging Markets Equity Advantage Portfolio
Common Stocks*
Brazil	$	28,266		$	76,113	$	—	$	104,379
China		149,076			559,697		—		708,773
Egypt		7,094			9,951		—		17,045
Greece		—			22,979		—		22,979
Hong Kong		—			41,759		—		41,759
Hungary		—			55,193		—		55,193
India		137,705			35,546		—		173,251
Indonesia		37,325			66,702		—		104,027
Malaysia		40,458			47,859		—		88,317
Philippines		—			63,858		—		63,858
Poland		—			19,150		—		19,150
Russia		—			112,719		—		112,719
South Africa		—			158,778		—		158,778
South Korea		112,268			383,797		—		496,065
Taiwan		173,735			236,832		—		410,567
Thailand		13,670			109,455		—		123,125
Turkey		39,694			5,653		—		45,347
Other		221,015			—		—		221,015
Preferred Stocks*		56,603			20,695		—		77,298
Short-Term Investment		562			—		—		562
Total	$	1,017,471		$	2,026,736	$	—	$	3,044,207
Emerging Markets Equity Blend Portfolio
Common Stocks*
Brazil	$	4,647,964		$	12,691,757	$	—	$	17,339,721
China		22,130,471			45,807,469		—		67,937,940
Egypt		—			1,312,027		—		1,312,027
Georgia		—			1,216,407		—		1,216,407
Hong Kong		—			3,572,888		—		3,572,888
Hungary		—			2,607,946		—		2,607,946
India		5,795,673			23,066,539		—		28,862,212
Indonesia		2,989,775			8,512,345		—		11,502,120
Malaysia		—			785,298		—		785,298
Portugal		—			3,375,578		—		3,375,578
Russia		13,664,257			15,952,873		—		29,617,130
South Africa		—			3,100,634		—		3,100,634
South Korea		—			30,359,433		—		30,359,433
Taiwan		3,126,783			28,312,694		—		31,439,477
Turkey		3,604,194			12,029,662		—		15,633,856
United States		3,627,404			1,550,211		—		5,177,615
Other		23,601,932			—		—		23,601,932
Short-Term Investment		11,475,199			—		—		11,475,199
Total	$	94,663,652		$	194,253,761	$	—	$	288,917,413

108  Annual Report

Description	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)					Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2016
Emerging Markets Multi Asset Portfolio
Assets:
Common Stocks*
Brazil	$	1,833,376		$	5,199,553		$	—	$	7,032,929
China		6,989,334			12,113,257			—		19,102,591
Egypt		—			458,029			—		458,029
Georgia		—			419,739			—		419,739
Hong Kong		—			1,233,845			—		1,233,845
Hungary		—			910,428			—		910,428
India		1,964,792			6,707,726			—		8,672,518
Indonesia		1,532,475			2,413,303			—		3,945,778
Malaysia		—			271,235			—		271,235
Philippines		265,582			142,236			—		407,818
Portugal		—			1,034,654			—		1,034,654
Russia		5,065,385			3,808,493			—		8,873,878
South Africa		—			2,141,769			—		2,141,769
South Korea		—			10,725,307			—		10,725,307
Taiwan		3,130,700			6,680,333			—		9,811,033
Thailand		—			160,566			—		160,566
Turkey		1,258,194			3,150,570			—		4,408,764
United Arab Emirates		—			126,727			—		126,727
United States		971,477			534,840			—		1,506,317
Other		8,075,993			—			—		8,075,993
Corporate Bonds*		—			9,699,580			—		9,699,580
Foreign Government Obligations*		—			51,240,446			—		51,240,446
Quasi Government Bonds*		—			2,550,725			—		2,550,725
Supranationals		—			218,039			—		218,039
US Treasury Securities		—			10,007,100			—		10,007,100
Warrants**		—			—			—		—
Short-Term Investment		23,737,007			—			—		23,737,007
Purchased Options		—			99,410			—		99,410
Other Financial Instruments†
Credit Default Swap Agreements		—			234,823			—		234,823
Forward Currency Contracts		—			840,274			—		840,274
Total	$	54,824,315		$	133,123,007		$	—	$	187,947,322
Liabilities:
Other Financial Instruments†
Credit Default Swap Agreements	$	—		$	(116,852	)	$	—	$	(116,852	)
Forward Currency Contracts		—			(972,191	)		—		(972,191	)
Written Options		—			(43,708	)		—		(43,708	)
Total	$	—		$	(1,132,751	)	$	—	$	(1,132,751	)

Annual Report  109

Description	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)					Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2016
Emerging Markets Debt Portfolio
Assets:
Corporate Bonds*	$	—		$	11,629,232		$	—	$	11,629,232
Foreign Government Obligations*		—			190,568,140			—		190,568,140
Quasi Government Bonds*		—			22,379,411			—		22,379,411
Short-Term Investment		20,543,082			—			—		20,543,082
Purchased Options		—			271,989			—		271,989
Other Financial Instruments†
Forward Currency Contracts		—			659,591			—		659,591
Total	$	20,543,082		$	225,508,363		$	—	$	246,051,445
Liabilities:
Other Financial Instruments†
Forward Currency Contracts	$	—		$	(770,054	)	$	—	$	(770,054	)
Written Options		—			(119,080	)		—		(119,080	)
Total	$	—		$	(889,134	)	$	—	$	(889,134	)
Explorer Total Return Portfolio
Assets:
Corporate Bonds*	$	—		$	32,840,600		$	—	$	32,840,600
Foreign Government Obligations*		—			145,660,552			—		145,660,552
Quasi Government Bonds*		—			8,999,233			—		8,999,233
Warrants**		—			—			—		—
Short-Term Investment		66,660,424			—			—		66,660,424
Purchased Options		—			413,765			—		413,765
Other Financial Instruments†
Credit Default Swap Agreements		—			756,221			—		756,221
Forward Currency Contracts		—			1,253,114			—		1,253,114
Total	$	66,660,424		$	189,923,485		$	—	$	256,583,909
Liabilities:
Other Financial Instruments†
Credit Default Swap Agreements	$	—		$	(400,712	)	$	—	$	(400,712	)
Forward Currency Contracts		—			(1,437,810	)		—		(1,437,810	)
Written Options		—			(182,589	)		—		(182,589	)
Total	$	—		$	(2,021,111	)	$	—	$	(2,021,111	)
Emerging Markets Income Portfolio
Assets:
Foreign Government Obligations*	$	—		$	5,036,277		$	—	$	5,036,277
Supranationals		—			195,663			—		195,663
US Treasury Securities		—			6,503,291			—		6,503,291
Short-Term Investment		887,774			—			—		887,774
Other Financial Instruments†
Forward Currency Contracts		—			122,528			—		122,528
Total	$	887,774		$	11,857,759		$	—	$	12,745,533
Liabilities:
Other Financial Instruments†
Forward Currency Contracts	$	—		$	(177,100	)	$	—	$	(177,100	)

*	Please refer to Portfolios of Investments (pages 23 through 70) and Notes to Portfolios of Investments (pages 73 through 74) for portfolio holdings by country and industry.
**	The warrants were 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).

110  Annual Report

Certain equity securities to which footnote (c) in the Notes to Portfolios of Investments applies are included in Level 2 and were valued based on reference to similar securities that were trading on active markets.

In connection with the 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 (c) in the Notes to Portfolios of Investments) in the Emerging Markets Equity, Emerging Markets Core Equity, Developing 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 procedures and would revert to Level 1 when the fair value pricing procedures are no longer used. 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.

During the year ended December 31, 2016, securities valued at the following amounts were transferred from Level 2 to Level 1:

Portfolio	Amount
Emerging Markets Equity Advantage	$52,822

There were no other transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 2016.

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 a call or put option to seek to realize, through the receipt of premiums or

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, 2016, the approximate average monthly notional exposure for derivative instruments was as follows:

Credit default swap agreements	$	7,800,000
Interest rate swap agreements	$	200,000	*
Forward currency contracts	$	43,300,000
Purchased options	$	100,000	†

*	Represents average daily notional exposure for the eight days the derivative instrument was open during the period.
†	Represents average monthly notional exposure for the nine months the derivative instrument was open during the period.

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2016:

	Fair Value
Asset Derivatives
Credit Risk:
Gross unrealized appreciation on swap agreements	$	234,823
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	840,274
Investments in securities, at fair value	$	99,410
Liability Derivatives
Credit Risk:
Gross unrealized depreciation on swap agreements	$	116,852
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	972,191
Written options, at fair value	$	43,708

Annual Report   111

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2016 was:

	Amount
Realized Gain (Loss) on Derivatives
Credit Risk:
Net realized gain (loss) on swap agreements	$	116,912
Foreign Exchange Risk:
Net realized gain (loss) on foreign currency transactions and forward currency contracts	$	(183,475	)
Net realized gain (loss) on investments	$	(231,215	)
Net realized gain (loss) on written options	$	(39,811	)
Interest Rate Risk:
Net realized gain (loss) on swap agreements	$	5,987
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Credit Risk:
Net change in unrealized appreciation (depreciation) on swap agreements	$	120,746
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on foreign currency translations and forward currency contracts	$	(19,497	)
Net change in unrealized appreciation (depreciation) on investments	$	53,849
Net change in unrealized appreciation (depreciation) on written options	$	(19,944	)

Emerging Markets Debt Portfolio

During the year ended December 31, 2016, the approximate average monthly notional exposure for derivative instruments was as follows:

Forward currency contracts	$	58,100,000
Purchased options	$	200,000	*

* Represents average monthly notional exposure for the two months the derivative instrument was open during the period.

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2016:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	659,591
Investments in securities, at fair value	$	271,989
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	770,054
Written options, at fair value	$	119,080

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2016 was:

	Amount
Realized Gain (Loss) on Derivatives
Foreign Exchange Risk:
Net realized gain (loss) on foreign currency transactions and forward currency contracts	$	(3,049,934	)
Net realized gain (loss) on investments	$	(125,685	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on foreign currency translations and forward currency contracts	$	(131,534	)
Net change in unrealized appreciation (depreciation) on investments	$	109,589
Net change in unrealized appreciation (depreciation) on written options	$	(55,352	)

Explorer Total Return Portfolio

During the year ended December 31, 2016, the approximate average monthly notional exposure for derivative instruments was as follows:

Credit default swap agreements	$	42,100,000
Interest rate swap agreements	$	1,600,000	*
Forward currency contracts	$	98,100,000
Purchased options	$	400,000	†

*	Represents average monthly notional exposure for the one months the derivative instrument was open during the period.
†	Represents average monthly notional exposure for the nine months the derivative instrument was open during the period.

112   Annual Report

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2016:

	Fair Value
Asset Derivatives
Credit Risk:
Gross unrealized appreciation on swap agreements	$	756,221
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	1,253,114
Investments in securities, at fair value	$	413,765
Liability Derivatives
Credit Risk:
Gross unrealized depreciation on swap agreements	$	400,712
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	1,437,810
Written options, at fair value	$	182,589

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2016 was:

		Amount
Realized Gain (Loss) on Derivatives
Credit Risk:
Net realized gain (loss) on swap agreements	$	194,314
Foreign Exchange Risk:
Net realized gain (loss) on foreign currency transactions and forward currency contracts	$	(1,956,100	)
Net realized gain (loss) on investments	$	(1,409,440	)
Net realized gain (loss) on written options	$	(357,123	)
Interest Rate Risk:
Net realized gain (loss) on swap agreements	$	14,632

	Amount
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Credit Risk:
Net change in unrealized appreciation (depreciation) on swap agreements	$	376,152
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on foreign currency translations and forward currency contracts	$	(957,955	)
Net change in unrealized appreciation (depreciation) on investments	$	288,290
Net change in unrealized appreciation (depreciation) on written options	$	(81,976	)
Interest Rate Risk:
Net change in unrealized appreciation (depreciation) on swap agreements	$	88,218

Emerging Markets Income Portfolio

During the year ended December 31, 2016, the approximate average monthly notional exposure for derivative instruments was as follows:

Forward currency contracts $ 17,000,000

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2016:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	122,528
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	177,100

Annual Report   113

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2016 was:

	Amount
Realized Gain (Loss) on Derivatives
Foreign Exchange Risk:
Net realized gain (loss) on foreign currency transactions and forward currency contracts	$	90,368
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on foreign currency translations and forward currency contracts	$	139,969

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, 2016.

As of December 31, 2016, 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.

The required information for the affected Portfolios are presented in the below table, as of December 31, 2016:

114   Annual Report

Emerging Markets Multi Asset Portfolio

Description	Gross Amounts of Recognized Assets			Gross Amounts Offset in the Statement of Assets and Liabilities		Net Amounts of Assets Presented in the Statement of Assets and Liabilities
Credit Default Swap Agreements		$	234,823	$	—	$	234,823
Forward Currency Contracts			840,274		—		840,274
Total		$	1,075,097	$	—	$	1,075,097

				Amounts Not Offset in the
				Statement of Assets and Liabilities
Counterparty	Net Amounts of Assets Presented in the Statement of Assets and Liabilities			Financial Instruments			Collateral Received (a)		Net Amounts of Derivative Assets
Barclays Bank PLC		$	350,018	$	(213,469	)	$	—	$	136,549
BNP Paribas SA			121,534		(78,418	)		—		43,116
Citibank NA			164,204		(133,593	)		—		30,611
Credit Agricole Corporate and Investment Bank			38,906		—			—		38,906
HSBC Bank USA NA			26,128		(894	)		—		25,234
JPMorgan Chase Bank NA			214,467		(141,392	)		—		73,075
Standard Chartered Bank			124,247		(124,247	)		—		—
UBS AG			35,593		(35,593	)		—		—
Total		$	1,075,097	$	(727,606	)	$	—	$	347,491

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		$	116,852	$	—	$	116,852
Forward Currency Contracts			972,191		—		972,191
Total		$	1,089,043	$	—	$	1,089,043

				Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities				Financial Instruments			Collateral Pledged (a)		Net Amounts of Derivative Liabilities
Barclays Bank PLC		$	213,469		$	(213,469	)	$	—	$	—
BNP Paribas SA			78,418			(78,418	)		—		—
Citibank NA			133,593			(133,593	)		—		—
HSBC Bank USA NA			894			(894	)		—		—
JPMorgan Chase Bank NA			141,392			(141,392	)		—		—
Standard Chartered Bank			134,541			(124,247	)		—		10,294
UBS AG			386,736			(35,593	)		—		351,143
Total		$	1,089,043		$	(727,606	)	$	—	$	361,437

(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.

Annual Report   115

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		$659,591	$	—	$	659,591

			Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Assets Presented in the Statement of Assets and Liabilities		Financial Instruments			Collateral Received		Net Amounts pf Derivative Assets
Barclays Bank PLC		$201,070	$	(175,507	)	$	—	$	25,563
Citibank NA		86,559		(86,559	)		—		—
JPMorgan Chase Bank NA		180,678		(162,191	)		—		18,487
Standard Chartered Bank		150,778		(150,778	)		—		—
UBS AG		40,506		(40,506	)		—		—
Total		$659,591	$	(615,541	)	$	—	$	44,050

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		$770,054	$	—	$	770,054

			Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities		Financial Instruments			Collateral Pledged		Net Amounts of Derivative Liabilities
Barclays Bank PLC		$175,507	$	(175,507	)	$	—	$	—
Citibank NA		143,746		(86,559	)		—		57,187
HSBC Bank USA NA		1,172		—			—		1,172
JPMorgan Chase Bank NA		162,191		(162,191	)		—		—
Standard Chartered Bank		180,280		(150,778	)		—		29,502
UBS AG		107,158		(40,506	)		—		66,652
Total		$770,054	$	(615,541	)	$	—	$	154,513

116   Annual Report

Explorer Total Return Portfolio

Description	Gross Amounts of Recognized Assets			Gross Amounts Offset in the Statement of Assets and Liabilities			Net Amounts of Assets Presented in the Statement of Assets and Liabilities
Credit Default Swap Agreements		$	756,221		$	—	$	756,221
Forward Currency Contracts			1,253,114			—		1,253,114
Total		$	2,009,335		$	—	$	2,009,335

				Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Assets Presented in the Statement of Assets and Liabilities				Financial Instruments			Collateral Received (a)		Net Amounts of Derivative Assets
Barclays Bank PLC		$	1,139,038		$	(706,147	)	$	—	$	432,891
Citibank NA			209,604			(209,604	)		—		—
JPMorgan Chase Bank NA			277,774			(277,774	)		—		—
Standard Chartered Bank			272,264			(272,264	)		—		—
UBS AG			110,655			(110,655	)		—		—
Total		$	2,009,335		$	(1,576,444	)	$	—	$	432,891

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		$	400,712	$	—	$	400,712
Forward Currency Contracts			1,437,810		—		1,437,810
Total		$	1,838,522	$	—	$	1,838,522

				Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities			Financial Instruments			Collateral Pledged (a)		Net Amounts of Derivative Liabilities
Barclays Bank PLC		$	706,147	$	(706,147	)	$	—	$	—
Citibank NA			318,505		(209,604	)		—		108,901
JPMorgan Chase Bank NA			279,947		(277,774	)		—		2,173
Standard Chartered Bank			306,344		(272,264	)		—		34,080
UBS AG			227,579		(110,655	)		—		116,924
Total		$	1,838,522	$	(1,576,444	)	$	—	$	262,078

(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.

Annual Report   117

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		$122,528	$	—	$	122,528

				Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Assets Presented in the Statement of Assets and Liabilities			Financial Instruments			Collateral Received		Net Amounts of Derivative Assets
BNP Paribas SA		$	9,510	$	(3,271	)	$	—	$	6,239
Citibank NA			55,452		(52,805	)		—		2,647
Credit Agricole Corporate and Investment Bank			28,094		—			—		28,094
HSBC Bank USA NA			2,818		—			—		2,818
JPMorgan Chase Bank NA			15,041		(15,041	)		—		—
Standard Chartered Bank			11,613		(11,613	)		—		—
Total		$	122,528	$	(82,730	)	$	—	$	39,798

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		$177,100	$	—	$	177,100

				Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities			Financial Instruments			Collateral Pledged		Net Amounts of Derivative Liabilities
BNP Paribas SA		$	3,271	$	(3,271	)	$	—	$	—
Citibank NA			52,805		(52,805	)		—		—
JPMorgan Chase Bank NA			60,158		(15,041	)		—		45,117
Standard Chartered Bank			60,866		(11,613	)		—		49,253
Total		$	177,100	$	(82,730	)	$	—	$	94,370

11. Recent Accounting Pronouncements

In October 2016, the U.S. Securities and Exchange Commission (the “SEC”) adopted new rules and amended existing rules (together, “final rules”) intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017.

Management is currently evaluating the impact that the adoption of the amendments to Regulation S-X will have on the Fund’s financial statements and related disclosures.

12. 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.

118   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 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 “Fund”) as of December 31, 2016, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended, where presented. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. 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, 2016, 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, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended, where presented, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP
New York, New York
February 27, 2017

Annual Report   119

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 (63)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012)
		University of California, Berkeley School of Law, Lecturer (Spring 2017)
		Cornell Law School, Visiting Professor of Practice (2015 – 2016); previously, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)
Kenneth S. Davidson (71)	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 (54)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
		TIAA-CREF Funds (68 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 (45)	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. (72)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		Resource Americas, Inc., a real estate asset management company, Director (2016 – present)
		O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (69)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

120  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 (56)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (56)	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, 2017, 40 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  121

Name (Age) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) Held During the Past Five Years
Officers(3):
Nathan A. Paul (44)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Christopher Snively (32)	Chief Financial Officer (March 2016)	Senior Vice President of the Investment Manager (since November 2015)
		Assurance Manager at PricewaterhouseCoopers LLP (2008 – November 2015)
Stephen St. Clair (58)	Treasurer (May 2003)	Vice President of the Investment Manager
Mark R. Anderson (46)	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 (41)	Assistant Secretary (February 2009)	Director (since February 2016, previously Senior Vice President), and Director of Legal Affairs (since July 2015) of the Investment Manager
Shari L. Soloway (35)	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)
Cesar A. Trelles (42)	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.

122  Annual Report

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

Tax Information

Year Ended December 31, 2016

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2016:

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		100.00
Emerging Markets Equity Advantage		100.00
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, 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 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  123

NOTES

124  Annual Report

NOTES

Annual Report  125

NOTES

126  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, 2016

Equity Funds

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

PRIVACY NOTICE

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 and credit history
	•  Assets and income
	•  Account transactions
	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 and applicable state laws. These measures include computer safeguards and secured files and buildings.
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 may 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.

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
11	Performance Overviews
24	Information About Your Portfolio’s Expenses
28	Portfolio Holdings Presented by Sector
30	Portfolios of Investments
30	Lazard US Equity Concentrated Portfolio
31	Lazard US Strategic Equity Portfolio
33	Lazard US Small-Mid Cap Equity Portfolio
35	Lazard International Equity Portfolio
37	Lazard International Equity Select Portfolio
39	Lazard International Equity Concentrated Portfolio
40	Lazard International Strategic Equity Portfolio
42	Lazard International Equity Advantage Portfolio
45	Lazard International Small Cap Equity Portfolio
47	Lazard Global Equity Select Portfolio
49	Lazard Global Strategic Equity Portfolio
51	Lazard Managed Equity Volatility Portfolio
55	Notes to Portfolios of Investments
60	Statements of Assets and Liabilities
64	Statements of Operations
68	Statements of Changes in Net Assets
73	Financial Highlights
89	Notes to Financial Statements
104	Report of Independent Registered Public Accounting Firm
105	Board of Directors and Officers Information
108	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 each Portfolio’s summary prospectus contain the investment objectives, risks, charges, expenses and other information about each Portfolio of the Fund, which are not detailed in this report.

Distributed by Lazard Asset Management Securities LLC.

Annual Report  1

The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

In 2016, global equity markets generally performed well despite significant bouts of volatility caused by unexpected economic and political events. In Europe, returns were muted as the United Kingdom’s June vote to leave the European Union weighed on the pound sterling and UK assets. In December, Prime Minister Matteo Renzi’s resounding defeat in the Italian referendum on constitutional reform and his subsequent resignation added to uncertainty in the region. A surprise outcome to the US presidential election caused US stocks to rally sharply at year-end in anticipation of lower corporate taxes and regulatory reform. Meanwhile, emerging markets equities snapped their negative streak and ended the year firmly higher, primarily as the price of oil and other commodities stabilized.

In the first half of 2016, yields across most global bond markets fell due to uneven news flow and seesawing risk sentiment. However, yields increased toward the end of the year in response to inflationary pressures, higher oil prices, and strong economic data. The US Federal Reserve (Fed) delivered its long-awaited rate hike in December, and is widely expected to deliver additional hikes in 2017. In contrast, European monetary policy is expected to remain loose, based on announced asset purchase plans from the European Central Bank.

The US dollar continued to strengthen against other major currencies in 2016. The Japanese yen appreciated even after the Bank of Japan adopted a negative interest rate policy early in the year, but weakened considerably in November and December due to Japan’s widening interest rate differential with the United States. Over the year, the biggest currency laggards included the Mexican peso, which was hurt by Donald Trump’s election victory, and the Turkish lira, which was weighed down by a surprise coup attempt in Turkey.

At Lazard Asset Management, we strive to identify ways to help our clients achieve their investment goals. As such, we launched two mutual funds in 2016 with characteristics that we believe can help investors navigate a changing financial landscape.

As always, we appreciate your continued confidence in our investment management capabilities and we 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 12.0% in 2016. Modest gains in the first half of the year masked significant volatility, as markets were down significantly in February on the back of concerns about the Chinese economy and commodity price declines. However, markets resumed their upward trend in the second half of the first quarter, as the Fed’s lowered forecast for 2016 interest rate increases and a rebound in oil prices encouraged investors. Although markets again fell sharply in late June due to the uncertainty caused by the United Kingdom’s vote to leave the European Union (“Brexit”), they recovered in the third quarter, as investors gained more confidence in the US economy’s ability to withstand global geopolitical risks. Economic data were mixed during the period, as employment reports generally exceeded expectations, but the economy continued to grow unevenly, culminating with a strong third quarter reading of 3.2%. In light of an improving employment and inflation picture toward the end of the year, the Federal Open Market Committee elected to raise interest rates by 25 basis points in December. By sector, energy, telecom services, financials, and industrials sectors recorded strong returns, outperforming the S&P 500 benchmark in 2016. In contrast, the consumer discretionary, consumer staples, real estate, and health care sectors underperformed the index.

International Equities

International equities rose in 2016, though in US dollar terms this was tempered by the strength of the US currency. The MSCI EAFE^® Index (the “EAFE Index”) rose 1.00% in 2016 with a recovery in commodity prices the constant through most of the year. In oil, this recovery came from output cuts, first in the US in response to much lower prices and capital expenditures, then in a production-cut agreement from oil-producing countries. In other commodities, it resulted from Chinese government policy that included government-directed spending on infrastructure and state-owned enterprises as well as restricting local coal supply.

Elsewhere, it was a year of two halves. Until the summer, low growth and low or negative interest rates supported higher-return and more defensive stocks,

while a stable dollar and rising commodity prices helped emerging markets. This dynamic peaked after the surprise United Kingdom vote to leave the European Union. Investors, however, quickly decided Brexit was not the feared disaster, and indeed started to believe that reflation was coming, aided by a shift towards more expansionary fiscal policy. Market sentiment received another boost in November with the election of Donald Trump as US president. Investors focused on the potentially stimulative impact of his policies on growth, including lower taxes, less regulation, and higher infrastructure spending, while downplaying Trump’s previous statements on trade, immigration, and foreign policy. This dynamic accelerated the market rotation into stocks perceived to benefit from rising inflation, rising rates and, possibly, rising growth.

In this environment, the commodity-related areas of energy, materials and industrials were strong all year from the commodity lows of February. Banks finished the year broadly flat, after a significant recovery in the second half of the year from weakness in the first half. The higher-return and more stable sectors of the market fell in absolute terms, especially in the fourth quarter of the year. Healthcare was the weakest sector of the year as the rotation out of defensives and into cyclicals was exacerbated by rising commercial and political pressure on pricing and regulation.

Lazard US Equity Concentrated Portfolio

For the year ended December 31, 2016, the Lazard US Equity Concentrated Portfolio’s Institutional Shares posted a total return of 7.37%, while Open Shares posted a total return of 7.06%, as compared with the 11.96% return for the S&P 500 Index. The R6 Shares posted a total return of 0.17% for the period since inception on November 15, 2016 through December 31, 2016, as compared with the 2.96% return for the S&P 500 Index for the same period.

Stock selection in the industrials sector contributed to performance. Shares of salvage vehicle auction holder Copart rose after the company reported quarterly earnings that broadly exceeded expectations, driven by higher volume growth stemming from market share gains and industry-wide volume growth. Stock selec-

Annual Report  3

tion in the consumer staples sector also helped returns. Shares of packaged food maker Kellogg rose after the company reported strong quarterly earnings, with continued improvement in the company’s cereal category. We sold our position in the third quarter, as the stock approached our target valuation.

In contrast, stock selection in the consumer discretionary sector hurt returns. Shares of Norwegian Cruise Line fell in response to concerns about travel demand stemming from the terrorist attacks in Brussels and Orlando and the Zika virus, as well as concerns of a macroeconomic slowdown, and the recent rise in oil prices. We sold our position during the third quarter, as we saw opportunities with better risk-reward profiles elsewhere. A lack of exposure to energy and financials also hurt returns, as the sectors were among the best performers in the benchmark during the year.

Lazard US Strategic Equity Portfolio

For the year ended December 31, 2016, the Lazard US Strategic Equity Portfolio’s Institutional Shares posted a total return of 9.70%, while Open Shares posted a total return of 9.46%, and R6 Shares posted a total return of 9.81%, as compared with the 11.96% return for the S&P 500 Index.

Stock selection in the industrials sector contributed to performance. Shares of salvage vehicle auction holder Copart rose after the company reported quarterly earnings above expectations, driven by higher volume growth stemming from market share gains and industry-wide volume growth. Stock selection in the health care sector also helped returns. Shares of diversified managed care provider Aetna rose after the company reported third-quarter earnings above expectations, driven by continued strength in its government business. We exited our position as we saw opportunities with better risk-reward profiles elsewhere.

In contrast, stock selection in the consumer discretionary sector detracted from performance. Shares of Norwegian Cruise Line fell in response to concerns about travel demand stemming from the terrorist attacks in Brussels and Orlando and the Zika virus, as well as concerns of a macroeconomic slowdown, and

the recent rise in oil prices. We trimmed our position in the fourth quarter, as our thesis had changed. Stock selection and an underweight position in the financials sector also hurt returns. Shares of OneMain fell amid continued concerns about the company’s funding costs in a rising rate environment, as well as its subprime loan exposure. We sold our position as a reassessment of our scenarios resulted in the risk-adjusted upside no longer being favorable.

Lazard US Small-Mid Cap Equity Portfolio

For the year ended December 31, 2016, the Lazard US Small-Mid Cap Equity Portfolio’s Institutional Shares posted a total return of 16.20%, while Open Shares posted a total return of 15.92%, as compared with the 17.59% return for the Russell 2500^® Index.

Stock selection in the information technology sector contributed to performance. Shares of payment technology company NCR rose after the company reported quarterly earnings above expectations, driven by strong margins and order growth. Stock selection and an overweight position in the industrials sector also helped returns. Shares of B/E Aerospace rose after Rockwell Collins announced plans to acquire the company for $8.3 billion. We sold our position after the fourth quarter announcement, as the stock approached our target valuation.

In contrast, stock selection in the financials sector detracted from performance. Shares of OneMain fell amid continued concerns about the company’s funding costs in a rising rate environment, as well as its subprime loan exposure. We sold our position as our thesis had changed. Stock selection and an underweight position in the materials sector also hurt returns. Shares of Kapstone Paper and Packaging fell after the company reported quarterly earnings below expectations and management gave a cautious outlook, citing difficult market conditions. We sold our position after the announcement in February, as our thesis was no longer valid.

Lazard International Equity Portfolio

For the year ended December 31, 2016, the Lazard International Equity Portfolio’s Institutional Shares posted a total return of -4.18%, while Open Shares

4  Annual Report

posted a total return of -4.46%, and R6 Shares posted a total return of -4.17%, as compared with the 1.00% return for the EAFE Index.

During the year, in an environment that saw an extended, strong rotation into cyclicals and lower-quality stocks, the Portfolio lagged its benchmark. Much of the underperformance was due to the rally in stocks with negative to low financial productivity that occurred while stocks with higher financial productivity lagged. As we focus on companies with sustainably high, or improving, financial productivity we were not exposed to some of the best performing stocks. Furthermore, some of our holdings, despite consistent fundamentals, were negatively impacted by the strong sector rotation.

The most significant source of underperformance was our positioning in the industrials sector, where we remain overweight. The sector was generally led higher by stocks with lower financial productivity, and additionally, some of our holdings in this sector under-performed due to the aforementioned rotation into less financially productive stocks, despite consistent fundamentals. One notable example is lock-maker Assa Abloy, which lagged its more cyclical peers.

Stock selection in the health care sector also hurt relative returns, despite low exposure which benefited the Portfolio. Some of this was due to the strong rotation out of traditionally defensive stocks and into cyclicals, which weighed on the sector. Furthermore, increased regulatory scrutiny during the US election cycle also weighed on the sector. Our position in Israeli pharmaceutical company Teva fell on worries about the viability of their Copaxone (for the treatment of multiple sclerosis) patents, as well as concerns on generics pricing.

Additionally, the Portfolio was negatively impacted by our positioning in the financials sector. The opportunity cost of not owning less financially productive financials weighed on the Portfolio. These stocks rallied on the anticipation of earnings improvement, the probability of which is less likely in Europe given the challenging regulatory, tax, and interest rate environment. Elsewhere in the sector, shares of British bank Lloyds (which was sold during the period) declined

following the Brexit referendum result. We remain underweight in financials given the numerous risks still pervasive in the sector.

On a positive note, the Portfolio benefited from positioning in emerging markets, as shares of Taiwan Semiconductor rose on strong demand for mobile phone chips. In Brazil, shares of insurance broker BB Seguridade performed well on improving business conditions. The Portfolio’s positioning in Canada was also beneficial, as shares of National Bank of Canada and Suncor Energy both performed well. Elsewhere, the Portfolio’s low allocation to the underperforming utilities sector was additive to relative returns.

Lazard International Equity Select Portfolio

For the year ended December 31, 2016, the Lazard International Equity Select Portfolio’s Institutional Shares posted a total return of -0.63%, while Open Shares posted a total return of -1.03%, as compared with the 4.50% return for the MSCI All Country World^® Index ex-US.

Much of the Portfolio underperformance was due to the rally in the second half of the year, where stocks with negative to low financial productivity outperformed while stocks with higher financial productivity lagged. As we focus on companies with sustainably high, or improving, financial productivity we were not exposed to some of the best performing stocks. Furthermore, some of our holdings, despite consistent fundamentals, were negatively impacted by the strong sector rotation.

The most significant source of underperformance was the Portfolio’s lower-than-benchmark weights in the strong performing commodity-related sectors of energy and materials. As previously discussed, these areas of the market performed well on the recovery of commodity prices.

Additionally, the Portfolio was negatively impacted by our positioning in the financials sector. The opportunity cost of not owning less financially productive financials weighed on the Portfolio. These stocks rallied on the anticipation of earnings improvement, the probability of which is less likely in Europe given the

Annual Report  5

challenging regulatory, tax, and interest rate environment. Elsewhere in the sector, shares of British bank Lloyds (which was sold during the period) declined following the Brexit referendum result. We remain underweight in financials given the numerous risks still pervasive in the sector.

Stock selection in the health care sector also hurt relative returns. Some of this was due to the strong rotation out of the traditionally defensive stocks and into more cyclical sectors. This rotation weighed on the health care sector. Furthermore, increased regulatory scrutiny during the US election cycle also weighed on the sector. Swiss drugmaker Actelion performed well on a potential bid, but this was outweighed by weakness in Israeli generics company Teva, which fell on worries about the viability of their Copaxone (for the treatment of multiple sclerosis) patents, as well as concerns on generics pricing.

On a positive note, the Portfolio benefited from stock selection in emerging markets, as shares of Taiwan Semiconductor rose on strong demand for mobile phone chips. In Brazil, shares of insurance broker BB Seguridade, water utility SABESP, and for-profit education company Estacio all performed well on improving business conditions.

Lazard International Equity Concentrated Portfolio

For the year ended December 31, 2016, the Lazard International Equity Concentrated Portfolio’s Institutional Shares posted a total return of 4.74%, while Open Shares posted a total return of 4.41%, as compared with the 4.50% return for the MSCI All Country World Index ex-US.

As relative value managers focusing on the tradeoff between valuation and financial productivity, we are pleased with the performance as it occurred during a very challenging environment where less financially productive stocks outperformed those with higher financial productivity. We were also pleased that the performance was driven by stock selection, which we regard as a more repeatable and robust source of outperformance.

Much of the Portfolio’s positive performance during the period stemmed from stock selection in the industrials sector. Wolters Kluwer performed very well as, over the course of the year, the market positively rerated the valuation of the company. This was primarily due to the acceleration of organic revenue growth as the company transitioned towards digital products, which are faster growing and also more profitable. Secondly, the market began to focus more on the subscription nature of the business model, which provides a repeatable source of revenues. Another significant contributor to relative returns during the period was our holding in Weir Group. This stock had been under pressure earlier in the year as the market became concerned about the outlook for its shale pressure-pumping business, the robustness of margins in the mineral pump division, and also feared that the debt of the company was too high. Our analysis revealed that all of these concerns were misplaced: we expected that the pressure pumping division was about to experience a cyclical recovery, that the minerals division was exposed to aftermarket demand that could not be deferred, and that the high financial leverage was being quickly paid down by robust cash generation and some minor asset disposals.

Performance in the consumer discretionary sector was also additive to relative return aided by Valeo, which has been a long-time holding in the Portfolio. Valeo continued to outperform the consumer discretionary sector as the sizeable and growing order book fed into profitable revenue growth. We believe Valeo’s management team has positioned the company to succeed regardless of any possible transition from internal combustion engine to electric vehicles, at a time when this is presenting a challenge for the traditional automotive assemblers. In contrast, the Portfolio’s exposure in the materials sector and energy sector detracted from relative returns as the Portfolio was underweight both sectors, and these sectors returned approximately 30% in absolute terms. In many cases in these sectors, companies with very high debt levels rallied as rising commodity prices were perceived as giving the companies a lifeline, despite the equity component of the capital structure showing very high volatility.

6  Annual Report

The relative value approach of the Portfolio continues to focus on financially productive companies at reasonable valuations. We continue to orient the Portfolio towards more financially productive businesses.

Lazard International Strategic Equity Portfolio

For the year ended December 31, 2016, the Lazard International Strategic Equity Portfolio’s Institutional Shares posted a total return of -5.17%, while Open Shares posted a total return of -5.37%, and R6 Shares posted a total return of -5.17%, as compared with the 1.00% return for the EAFE Index.

The Portfolio materially lagged its benchmark in 2016, as lower-return and more cyclical stocks rose at the expense of the higher-return companies the Portfolio tends to favor. This effect was especially pronounced in the second half of the year and in the fourth quarter. It was most obvious in energy and materials, where holdings of gasoline retailer Caltex and flavors company Symrise lagged the commodity, oil and mining stocks. In industrials, lockmaker Assa Abloy lagged its more cyclical peers, while in the second half of the year, the Portfolio was negatively impacted by its relatively low exposure to banks and high exposure to consumer staples companies. Emerging market holdings were helpful, though gave back much of their outperformance in the fourth quarter after the Trump victory saw a surge in the US dollar.

On the stock specific side, it was a mixed year for the Portfolio. On the positive side, French auto supplier Valeo continued to report very encouraging results, while in healthcare, a potential bid for Swiss drug-maker Actelion outweighed weakness in generics company Teva and in UK specialist pharma stock Shire. In technology, Softbank of Japan purchased UK chip design business ARM Holdings, Taiwan Semiconductor made good progress from a low valuation, and Chinese internet giant Tencent rose from its lows. Brazilian water utility SABESP jumped as its business returned to normal after a drought, and regulatory developments continued to be supportive. In financials, the restructuring of Credit Suisse is proving harder than expected, while Aeon Financial of Japan unexpectedly raised capital. Australian materials com-

pany James Hardie continues to make good progress, but elsewhere the Portfolio saw disappointing results from German engineer GEA, jewelry retailer Signet, and discount apparel retailer Primark (owned by Associated British Foods). Philippine conglomerate Alliance Global saw competitive pressure on its spirits and casino operations, while private hospital operator Mediclinic suffered from a regulatory change in the United Arab Emirates.

Lazard International Equity Advantage Portfolio

For the year ended December 31, 2016, the Lazard International Equity Advantage Portfolio’s Institutional Shares posted a total return of -1.13%, while Open Shares posted a total return of -1.42%, as compared with the 1.00% return for the EAFE Index.

The Portfolio lagged its benchmark for the year despite a relative improvement in the second half. For the year, sector allocation detracted a modest 0.3%, while stock selection detracted -1.2%. A modest underweight to energy and materials were the largest detractors from an allocation perspective. This detractions were partially mitigated by an overweight in industrials and underweight to consumer discretionary holdings. Stock selection was strongest in consumer staples and real estate but gave ground in industrials and consumer discretionary holdings. Overall, the Portfolio outperformed in four out of eleven sectors.

From a stock perspective, the Portfolio benefited from our large position in Mitsubishi Electric Corporation, which rallied for the year on the back of a falling yen and a stronger than expected set of first half results reported in October. Wharf, the Hong Kong retail-centered REIT, also rallied in the first half reflecting a better retail outlook in Hong Kong. Investors were particularly attracted to the company’s 3.5% dividend and inexpensive valuation. Actelion, the Swiss biotech, rose for the year as Johnson & Johnson pursued the company with a series of takeover bids which reached a successful conclusion in January 2017.

Our largest detractor came from our overweight in Danish pharmaceutical stock Novo Nordisk; our large overweight detracted 0.69%, after the stock fell for the

Annual Report  7

year. Principally, this fall came after its second quarter results were announced in August and when the company downgraded its long-term profit guidance on increased competition and pricing pressure in the US. On the back of these results, we immediately and heavily sold down our position towards benchmark weight. BT Group also underperformed notably for the year, dropping after the Brexit vote sent UK bond yields significantly lower, widening the company’s already large pension deficit. This, along with the perceived view that the vote would weaken the UK economic outlook, led the company — solely exposed to the UK — to underperform. Bellway, the London-centered residential real estate developer, also fell sharply after the Brexit vote as investors became concerned that London would lose its status as the financial capital of Europe. We sold our position as the company fell after the vote.

Lazard International Small Cap Equity Portfolio

For the year ended December 31, 2016, the Lazard International Small Cap Equity Portfolio’s Institutional Shares posted a total return of -4.74%, while Open Shares posted a total return of -5.01%, as compared with the 2.18% return for the MSCI EAFE Small Cap^® Index.

Stock selection in a number of sectors contributed to the underperformance, led by information technology and consumer discretionary. Stock selection was positive in energy and industrials but did not offset the weakness in other sectors. Regionally, Canada and Australia contributed to performance, but stock selection in Continental Europe and Japan detracted from performance. Below are some of the individual names that impacted the Portfolio in 2016.

Altus Group, a Canadian-listed company focused on data and analytics solutions for commercial real estate owners and managers as well as property tax consulting, contributed to performance during the year. In the third quarter, the company reported earnings that exceeded expectations, with its key analytics segment seeing strong growth and a higher proportion of recurring revenues. Investor interest in the stock was further increased by its addition to the

S&P/TSX Composite in September. We continue to own the shares.

Seria, a “dollar” store operator in Japan, also contributed to performance in 2016. Outperformance of the stock was mostly driven by share price strength in the first half after positive fiscal year results and guidance were posted by the company. The company has posted 18 consecutive months of positive like-for-like sales growth, evidence of the superiority of Seria’s proprietary point of sale (POS) system and efficient products development and inventory control. Over the course of the year we have adjusted our position size to reflect higher valuations but continue to hold the stock given its market share gains and consistent management executions on its growth strategy.

Permanent TSB, an Irish-listed bank, detracted from performance in 2016. Concerns around financials in general, coupled with an Irish election, uncertainty around bank levies, and timing of non-performing loan recovery all weighed on the shares in the first part of the year. These concerns were amplified after the Brexit vote, which is expected to negatively impact Permanent TSB’s efforts to dispose of some of its UK assets. We have exited the position.

IG Group, a UK-listed exchange that is a leader in the trading of spread betting/contract-for-difference financial products in the United Kingdom and Europe, also detracted from performance. Most of the underperformance came at the end of the year when, in a surprising move, UK regulators announced they would limit customer leverage in these products, likely reducing industry revenues going forward. Several other European countries have introduced their own restrictive measures. While these regulatory moves do hamper industry economics in the nearer term, we expect IG Group as a market leader to benefit longer term as weaker players are forced to exit, and thus we continue to hold the shares.

Lazard Global Equity Select Portfolio

For the year ended December 31, 2016, the Lazard Global Equity Select Portfolio’s Institutional Shares posted a total return of 2.66%, while Open Shares

8  Annual Report

posted a total return of 2.35%, as compared with the 7.86% return for the MSCI All Country World Index.

Stock selection and an overweight position in the industrials sector contributed positively to performance over the past year. Shares of Rockwell Automation, a producer of industrial automation products, climbed on strong fundamental results in addition to positive guidance for 2017. Shares also benefited from the broad rally in US cyclical names on the heels of the election results. We like Rockwell Automation on its superior growth and return profile and low financial leverage. We continue to see prospects for solid secular growth and high returns. Underweight positions in the consumer discretionary and utilities sectors also helped performance.

In contrast, stock selection in the financials sector detracted from performance in the year. Shares of a Nordic property and casualty insurer, Sampo, lagged on concerns a subsidiary could not maintain its pay-out to Sampo, thus impacting Sampo’s dividend. Additionally, Sampo underperformed the lower quality European bank rally in the latter part of the year. We continue to like Sampo due to its cash-generative insurance assets and strong and resilient capital position. We believe Sampo has ample flexibility to maintain and grow its dividend through continued reserve releases due to strong underwriting and an under-levered balance sheet. Lower than benchmark exposure and stock selection in the materials sector hurt performance. Shares of diversified chemical manufacturer Symrise fell on margins that were weaker than expected and on concerns cost pressures could continue to build. We continue to like Symrise on its strong business model and expectation for further earnings growth.

Lazard Global Strategic Equity Portfolio

For the year ended December 31, 2016, the Lazard Global Strategic Equity Portfolio’s Institutional Shares posted a total return of -0.15%, while Open Shares posted a total return of -0.45%, as compared with the 7.86% return for the MSCI All Country World Index.

The Portfolio lagged its benchmark in the year, as lower return and more cyclical stocks rose at the

expense of higher-return stocks in sectors such as energy and materials. The Portfolio was hurt by its low exposure to banks, though it did benefit from its low exposure to real estate and lack of utility exposure. While rotation was a material driver of relative returns, on the stock-specific side, there was a potential bid for both Swiss drugmaker Actelion and for US tobacco company Reynolds. ARM Holdings was bought out by Softbank and subsequently sold post-merger. Offsetting these positives were disappointing results from Credit Suisse in the first half of the year and Lloyds Banking Group, where Brexit had a material impact on the bank in US dollar terms. We sold both positions from the Portfolio. The weakness of the dollar also had a material impact on payments processor Worldpay.

Lazard Managed Equity Volatility Portfolio

For the year ended December 31, 2016, the Lazard Managed Equity Volatility Portfolio’s Institutional Shares posted a total return of 6.45%, while Open Shares posted a total return of 6.14%, as compared with the 7.51% return for the MSCI World^® Index.

Generally, sector positioning detracted from performance, whereas stock selection largely benefited returns for the year. The underweights to the consumer staples and information technology sectors were the largest source of underperformance for the year as these were the two best performing sectors for the year. The overweight to consumer staples and underweight to information technology also detracted from relative returns. Our underweight to health care and overweight in telecom services mitigated the net detraction of sector positioning. Stock selection was favorable in seven out of eleven sectors led by health care and consumer discretionary. Industrials and materials holdings were the two largest underperforming sectors.

Stocks that provided the greatest contribution to the Portfolio’s return included AT&T, which was up for the year. The company was valued for its strong financial position, stable client base, high dividend and the prospect that a lower US tax rate which would have an immediate impact on earnings per share. The benefits of the DirectTV acquisition and cross promotions are

Annual Report  9

also additive to analysts growth projections. 3M was up for the year as the company was expected to benefit from operating leverage in a slower growth global economy. The company’s diversified business mix appeared to be valued by investors. Time Warner rallied sharply after AT&T made a bid to acquire the company.

Detractors for the year included Blackmores, which fell sharply after its strong 2015, as the market remains concerned over the company’s ability to sustain its long-term growth. A stronger Australian dollar and expansion of the company’s distribution channels both present potential headwinds for the stock. We sold our position during the fourth quarter period. BT Group also underperformed notably for the year, dropping after the Brexit vote sent UK bond yields significantly

lower widening the company’s already large pension deficit. This, along with the perceived view that the vote would weaken the UK economic outlook, led the company — solely exposed to the UK — to underperform. We pared back the position after the Brexit vote although more recently have increased it again, as pension risks subside and as the company continues to deliver strong results. Novo Nordisk, a long standing overweight, slumped, reflecting a more subdued growth outlook near-term, and fears about ongoing US pricing pressure. The company has had an absence of clear evidence of recent and upcoming product launches to mitigate these growth concerns. The company also announced a 5% headcount reduction in an effort to align cost growth with slower revenue growth.

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. Return for 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, 2016; 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*
Periods Ended December 31, 2016
	One Year	Five Years	Ten Years	Since Inception	†
Institutional Shares**	7.37%	15.64%	6.33%	7.79%
Open Shares**	7.06%	15.25%	6.01%	7.46%
R6 Shares**	N/A	N/A	N/A	0.17%
S&P 500 Index	11.96%	14.66%	6.95%	7.74% (Institutional and Open Shares) 2.96% (R6 Shares)
Russell 1000 Value/S&P 500 Linked Index	11.96%	14.24%	5.47%	6.85% (Institutional and Open Shares) N/A (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. Return for 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.

Annual Report  11

	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 primarily in 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 created by the Portfolio’s Investment Manager and links the performance of the Russell 1000® Value Index for all periods through May 30, 2012 (when the Portfolio’s benchmark index changed) 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, 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 September 30, 2005 and for the R6 Shares was November 15, 2016.

12  Annual Report

Lazard US Strategic Equity Portfolio

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

Average Annual Total Returns*
Periods Ended December 31, 2016
	One Year	Five Years	Ten Years	Since Inception	†
Institutional Shares**	9.70%	12.07%	5.37%	6.29%
Open Shares**	9.46%	11.74%	5.05%	5.99%
R6 Shares**	9.81%	N/A	N/A	6.29%
S&P 500 Index	11.96%	14.66%	6.95%	7.47% (Institutional and Open Shares) 9.18% (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.
	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.

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*
Periods Ended December 31, 2016
	One Year	Five Years	Ten Years
Institutional Shares**	16.20%	14.71%	7.77%
Open Shares**	15.92%	14.35%	7.43%
Russell 2500 Index	17.59%	14.54%	7.69%
Russell 2000/2500 Linked Index	17.59%	14.54%	7.59%

*	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; 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, also exclude adjustments related to reimbursed custodian out-of-pocket expenses (Note 3 in the Notes to Financial Statements), 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 created by the Portfolio’s Investment Manager and links the performance of the Russell 2000® Index for all periods through August 24, 2008 (when the Portfolio’s benchmark index changed) 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 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, 2016
	One Year	Five Years	Ten Years	Since Inception	†
Institutional Shares**	–4.18%	6.68%	1.83%	5.61%
Open Shares**	–4.46%	6.38%	1.52%	4.28%
R6 Shares**	–4.17%	N/A	N/A	–4.71%
EAFE Index	1.00%	6.53%	0.75%	4.93%
				(Institutional Shares)
				4.36%
				(Open Shares)
				–2.66%
				(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.
	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.

Annual Report  15

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*
Periods Ended December 31, 2016
	One Year	Five Years	Ten Years
Institutional Shares**	–0.63%	5.08%	0.43%
Open Shares**	–1.03%	4.70%	0.09%
MSCI All Country World Index ex-US	4.50%	5.00%	0.96%
MSCI EAFE/All Country World Index ex-US Linked Index	4.50%	5.00%	–0.09%

*	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 created by the Portfolio’s Investment Manager and links the performance of the EAFE Index for all periods through June 30, 2010 (when the Portfolio’s benchmark index changed) 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.

16  Annual Report

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, 2016
	One Year	Since Inception	†
Institutional Shares**	4.74%	–5.37%
Open Shares**	4.41%	–5.58%
MSCI All Country World Index ex-US	4.50%	–4.34%

*	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.

Annual Report  17

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, 2016
	One Year	Five Years	Ten Years	Since Inception	†
Institutional Shares**	–5.17%	7.49%	2.53%	5.13%
Open Shares**	–5.37%	7.24%	2.23%	3.60%
R6 Shares**	–5.17%	N/A	N/A	–3.55%
EAFE Index	1.00%	6.53%	0.75%	3.44%
				(Institutional Shares)
				2.31%
				(Open Shares)
				1.04%
				(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.
	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.

18  Annual Report

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*

Average Annual Total Returns*
Periods Ended December 31, 2016
	One Year	Since Inception	†
Institutional Shares**	–1.13%	–4.89%
Open Shares**	–1.42%	–5.17%
EAFE Index	1.00%	–4.97%

*	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 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.

Annual Report  19

Lazard International Small Cap Equity Portfolio

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

Average Annual Total Returns*
Periods Ended December 31, 2016
	One Year	Five Years	Ten Years
Institutional Shares**	–4.74%	10.10%	1.35%
Open Shares**	–5.01%	9.78%	1.07%
MSCI EAFE Small Cap Index	2.18%	10.56%	2.95%

*	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, also exclude adjustments related to reimbursed custodian out-of-pocket expenses (Note 3 in the Notes to Financial Statements), 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.

20  Annual Report

Lazard Global Equity Select Portfolio

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

Average Annual Total Returns*
Periods Ended December 31, 2016
	One Year	Since Inception	†
Institutional Shares**	2.66%	2.31%
Open Shares**	2.35%	2.03%
MSCI All Country World Index	7.86%	3.13%

*	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 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.

Annual Report  21

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, 2016
	One Year	Since Inception	†
Institutional Shares**	–0.15%	–1.01%
Open Shares**	–0.45%	–1.31%
MSCI All Country World Index	7.86%	0.99%

*	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.

22  Annual Report

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*

Average Annual Total Returns*
Periods Ended December 31, 2016
	One Year	Since Inception	†
Institutional Shares**	6.45%	2.41%
Open Shares**	6.14%	2.11%
MSCI World Index	7.51%	0.90%

*	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 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.

Annual Report  23

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, 2016 through December 31, 2016 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.

24  Annual Report

Portfolio	Beginning Account Value 7/1/16		Ending Account Value 12/31/16		Expenses Paid During Period* 7/1/16 - 12/31/16		Annualized Expense Ratio During Period 7/1/16 - 12/31/16
US Equity Concentrated**
Institutional Shares
Actual	$	1,000.00	$	1,048.70		$3.97		0.77	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.27		$3.91		0.77	%
Open Shares
Actual	$	1,000.00	$	1,047.30		$5.35		1.04	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91		$5.28		1.04	%
R6 Shares†
Actual	$	1,000.00	$	1,000.00		$0.97		0.77	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,005.32		$0.97		0.77	%
US Strategic Equity
Institutional Shares
Actual	$	1,000.00	$	1,091.00		$3.94		0.75	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.37		$3.81		0.75	%
Open Shares
Actual	$	1,000.00	$	1,089.60		$5.52		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.86		$5.33		1.05	%
R6 Shares
Actual	$	1,000.00	$	1,091.10		$3.94		0.75	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.37		$3.81		0.75	%
US Small-Mid Cap Equity**
Institutional Shares
Actual	$	1,000.00	$	1,162.00		$4.89		0.90	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.61		$4.57		0.90	%
Open Shares
Actual	$	1,000.00	$	1,161.20		$6.46		1.19	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.15		$6.04		1.19	%
International Equity
Institutional Shares**
Actual	$	1,000.00	$	981.20		$4.18		0.84	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.91		$4.27		0.84	%
Open Shares**
Actual	$	1,000.00	$	979.90		$5.47		1.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.61		$5.58		1.10	%
R6 Shares
Actual	$	1,000.00	$	981.30		$3.98		0.80	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.11		$4.06		0.80	%
International Equity Select
Institutional Shares
Actual	$	1,000.00	$	975.90		$5.22		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.86		$5.33		1.05	%
Open Shares
Actual	$	1,000.00	$	974.30		$6.70		1.35	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.35		$6.85		1.35	%

Annual Report  25

Portfolio	Beginning Account Value 7/1/16		Ending Account Value 12/31/16		Expenses Paid During Period* 7/1/16 - 12/31/16		Annualized Expense Ratio During Period 7/1/16 - 12/31/16
International Equity Concentrated
Institutional Shares
Actual	$	1,000.00	$	987.70		$5.25		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.86		$5.33		1.05	%
Open Shares
Actual	$	1,000.00	$	985.90		$6.74		1.35	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.35		$6.85		1.35	%
International Strategic Equity**
Institutional Shares
Actual	$	1,000.00	$	963.50		$4.00		0.81	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.06		$4.12		0.81	%
Open Shares
Actual	$	1,000.00	$	962.70		$5.23		1.06	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.81		$5.38		1.06	%
R6 Shares
Actual	$	1,000.00	$	963.50		$4.00		0.81	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.06		$4.12		0.81	%
International Equity Advantage
Institutional Shares
Actual	$	1,000.00	$	1,054.00		$4.65		0.90	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.61		$4.57		0.90	%
Open Shares
Actual	$	1,000.00	$	1,052.10		$6.19		1.20	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.10		$6.09		1.20	%
International Small Cap Equity**
Institutional Shares
Actual	$	1,000.00	$	982.40		$5.33		1.07	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.76		$5.43		1.07	%
Open Shares
Actual	$	1,000.00	$	981.30		$6.57		1.32	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.50		$6.70		1.32	%
Global Equity Select
Institutional Shares
Actual	$	1,000.00	$	1,018.70		$5.33		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.86		$5.33		1.05	%
Open Shares
Actual	$	1,000.00	$	1,017.60		$6.85		1.35	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.35		$6.85		1.35	%
Global Strategic Equity
Institutional Shares
Actual	$	1,000.00	$	1,005.80		$5.55		1.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.61		$5.58		1.10	%
Open Shares
Actual	$	1,000.00	$	1,003.80		$7.05		1.40	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.10		$7.10		1.40	%

26  Annual Report

Portfolio	Beginning Account Value 7/1/16		Ending Account Value 12/31/16		Expenses Paid During Period* 7/1/16 - 12/31/16		Annualized Expense Ratio During Period 7/1/16 - 12/31/16
Managed Equity Volatility
Institutional Shares
Actual	$	1,000.00	$	1,010.70		$3.79		0.75	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.37		$3.81		0.75	%
Open Shares
Actual	$	1,000.00	$	1,009.80		$5.30		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.86		$5.33		1.05	%

*	Expenses are equal to the annualized expense ratio, net of expense waivers and reimbursements, of each Share class multiplied by the average account value over the period, multiplied by 184/366 (to reflect one-half year period).
**	Excludes impact of the custodian out-of-pocket expenses that were reimbursed to the Portfolio during the current period. Refer to Note 3 in the Notes to Financial Statements.
†	The inception date for the R6 Shares was November 15, 2016.

Annual Report  27

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2016

	Lazard			Lazard			Lazard			Lazard			Lazard
	US Equity			US Strategic			US Small-Mid Cap			International			International Equity
Sector*	Concentrated Portfolio			Equity Portfolio			Equity Portfolio			Equity Portfolio			Select Portfolio
Consumer Discretionary		12.2	%		8.8	%		11.5	%		14.6	%		12.5	%
Consumer Staples		23.8			13.2			1.3			11.9			11.8
Energy		—			6.2			6.7			7.5			4.2
Financials		—			11.0			16.2			17.5			15.8
Health Care		11.9			14.3			8.1			8.2			7.6
Industrials		5.0			10.3			16.0			16.1			16.3
Information Technology		34.7			27.6			17.1			6.5			12.6
Materials		5.0			2.0			7.5			5.0			2.3
Real Estate		—			1.0			10.2			2.6			2.4
Telecommunication Services		—			3.1			—			3.5			7.3
Utilities		—			—			3.1			0.9			2.0
Repurchase Agreements		—			—			2.3			5.7			—
Short-Term Investments		7.4			2.5			—			—			5.2
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

										Lazard
	Lazard			Lazard			Lazard			International			Lazard
	International Equity			International Strategic			International Equity			Small Cap			Global Equity
Sector*	Concentrated Portfolio			Equity Portfolio			Advantage Portfolio			Equity Portfolio			Select Portfolio
Consumer Discretionary		21.5	%		21.9	%		13.0	%		17.4	%		5.5	%
Consumer Staples		8.2			15.5			10.1			4.2			14.2
Energy		5.3			7.4			4.3			3.9			3.6
Financials		21.6			19.5			22.0			12.4			14.8
Health Care		6.3			7.6			10.9			6.6			9.5
Industrials		15.1			9.1			13.4			25.1			19.4
Information Technology		14.5			6.5			5.1			14.7			23.6
Materials		—			4.1			5.8			5.3			2.5
Real Estate		—			3.1			4.0			6.7			1.8
Telecommunication Services		3.8			3.5			5.3			0.9			—
Utilities		—			—			3.9			—			—
Short-Term Investments		3.7			1.8			2.2			2.8			5.1
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

28  Annual Report

	Lazard			Lazard
	Global Strategic			Managed Equity
Sector*	Equity Portfolio			Volatility Portfolio
Consumer Discretionary		13.5	%		14.3	%
Consumer Staples		17.1			12.9
Energy		5.8			2.4
Financials		16.1			14.4
Health Care		9.7			12.2
Industrials		8.2			10.2
Information Technology		20.7			9.4
Materials		2.8			3.9
Real Estate		2.1			4.8
Telecommunication Services		0.7			6.0
Utilities		—			9.0
Short-Term Investments		3.3			0.5
Total Investments		100.0	%		100.0	%

*  Represents percentage of total investments.

Annual Report  29

The Lazard Funds, Inc. Portfolios of Investments December 31, 2016

Description	Shares	Fair Value
Lazard US Equity Concentrated Portfolio
Common Stocks | 89.4%
Auto Components | 2.0%
Delphi Automotive PLC	395,315	$	26,624,465
Beverages | 11.1%
Molson Coors Brewing Co., Class B	666,112		64,819,359
The Coca-Cola Co.	2,030,800		84,196,968
			149,016,327
Commercial Services & Supplies | 4.9%
Copart, Inc. (a)	1,172,735		64,981,246
Communications Equipment | 14.6%
Cisco Systems, Inc.	3,665,170		110,761,437
Motorola Solutions, Inc.	1,012,810		83,951,821
			194,713,258
Containers & Packaging | 4.8%
Crown Holdings, Inc. (a)	1,220,865		64,180,873
Food & Staples Retailing | 6.9%
Walgreens Boots Alliance, Inc.	1,120,830		92,759,891
Household Products | 4.9%
The Procter & Gamble Co.	771,660		64,881,173
Internet Software & Services | 14.4%
Alphabet, Inc., Class A (a)	135,932		107,719,313
eBay, Inc. (a)	2,836,650		84,220,139
			191,939,452
Media | 3.1%
The Madison Square Garden Co. Class A (a)	240,775		41,295,320

Description	Shares	Fair Value
Multiline Retail | 0.5%
J.C. Penney Co., Inc. (a)	890,345	$	7,398,767
Pharmaceuticals | 11.5%
Pfizer, Inc.	2,722,402		88,423,617
Zoetis, Inc.	1,214,781		65,027,227
			153,450,844
Semiconductors & Semiconductor Equipment | 4.6%
Skyworks Solutions, Inc.	826,730		61,723,662
Specialty Retail | 3.9%
Advance Auto Parts, Inc.	312,315		52,818,713
Textiles, Apparel & Luxury Goods | 2.2%
Deckers Outdoor Corp. (a)	539,127		29,862,245
Total Common Stocks (Cost $1,111,996,871)			1,195,646,236
Short-Term Investment | 7.2%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $95,590,325)	95,590,325		95,590,325
Total Investments | 96.6% (Cost $1,207,587,196) (b)		$	1,291,236,561
Cash and Other Assets in Excess of Liabilities | 3.4%			44,899,192
Net Assets | 100.0%		$	1,336,135,753

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

30  Annual Report

Description	Shares	Fair Value
Lazard US Strategic Equity Portfolio
Common Stocks | 97.8%
Aerospace & Defense | 2.2%
United Technologies Corp.	17,625	$	1,932,053
Auto Components | 1.3%
Delphi Automotive PLC	16,635		1,120,367
Banks | 4.8%
Bank of America Corp.	144,330		3,189,693
KeyCorp.	54,900		1,003,023
			4,192,716
Beverages | 5.7%
Molson Coors Brewing Co., Class B	24,465		2,380,689
The Coca-Cola Co.	61,900		2,566,374
			4,947,063
Building Products | 1.2%
Johnson Controls International PLC	25,421		1,047,091
Capital Markets | 3.9%
Intercontinental Exchange, Inc.	33,450		1,887,249
The Charles Schwab Corp.	38,120		1,504,596
			3,391,845
Chemicals | 0.5%
PPG Industries, Inc.	4,400		416,944
Commercial Services & Supplies | 0.9%
Copart, Inc. (a)	14,135		783,220
Communications Equipment | 5.1%
Cisco Systems, Inc.	104,725		3,164,789
Motorola Solutions, Inc.	15,000		1,243,350
			4,408,139
Containers & Packaging | 1.5%
Crown Holdings, Inc. (a)	24,625		1,294,536
Diversified Telecommunication Services | 3.1%
AT&T, Inc.	63,450		2,698,529
Electrical Equipment | 2.8%
Eaton Corp. PLC	22,935		1,538,709
Rockwell Automation, Inc.	6,485		871,584
			2,410,293

Description	Shares	Fair Value
Energy Equipment & Services | 1.9%
Schlumberger, Ltd.	20,220	$	1,697,469
Equity Real Estate Investment Trusts (REITs) | 1.0%
Host Hotels & Resorts, Inc.	46,265		871,633
Food & Staples Retailing | 2.0%
Walgreens Boots Alliance, Inc.	21,100		1,746,236
Food Products | 2.1%
Kellogg Co.	25,300		1,864,863
Health Care Equipment & Supplies | 1.6%
Stryker Corp.	11,455		1,372,424
Health Care Providers & Services | 1.3%
Humana, Inc.	5,350		1,091,561
Hotels, Restaurants & Leisure | 2.1%
McDonald’s Corp.	10,900		1,326,748
Norwegian Cruise Line Holdings, Ltd. (a)	10,810		459,749
			1,786,497
Household Products | 3.4%
The Procter & Gamble Co.	35,160		2,956,253
Industrial Conglomerates | 1.0%
Honeywell International, Inc.	7,498		868,643
Insurance | 2.3%
Aon PLC	13,580		1,514,577
The Hartford Financial Services Group, Inc.	9,920		472,688
			1,987,265
Internet Software & Services | 7.8%
Alphabet, Inc., Class A (a)	5,471		4,335,494
Alphabet, Inc., Class C (a)	440		339,601
eBay, Inc. (a)	69,920		2,075,925
			6,751,020
IT Services | 4.9%
Fidelity National Information Services, Inc.	13,460		1,018,114
Vantiv, Inc., Class A (a)	20,000		1,192,400
Visa, Inc., Class A	26,020		2,030,081
			4,240,595
Life Sciences Tools & Services | 0.6%
Quintiles IMS Holdings, Inc. (a)	6,400		486,720

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

Annual Report  31

Description	Shares	Fair Value
Lazard US Strategic Equity Portfolio (concluded)
Machinery | 0.8%
Deere & Co.	7,120	$	733,645
Marine | 0.6%
Kirby Corp. (a)	7,800		518,700
Media | 1.5%
The Madison Square Garden Co. Class A (a)	7,458		1,279,122
Multiline Retail | 0.9%
J.C. Penney Co., Inc. (a)	99,175		824,144
Oil, Gas & Consumable Fuels | 4.2%
Chevron Corp.	14,395		1,694,291
EOG Resources, Inc.	7,575		765,833
Pioneer Natural Resources Co.	4,250		765,298
Valero Energy Corp.	6,500		444,080
			3,669,502
Pharmaceuticals | 11.0%
Allergan PLC (a)	6,185		1,298,912
Pfizer, Inc.	125,519		4,076,857
Zoetis, Inc.	77,504		4,148,789
			9,524,558
Road & Rail | 0.8%
Union Pacific Corp.	6,755		700,358
Semiconductors & Semiconductor Equipment | 2.9%
Applied Materials, Inc.	31,530		1,017,473
Skyworks Solutions, Inc.	20,135		1,503,279
			2,520,752

Description	Shares	Fair Value
Software | 4.9%
Microsoft Corp.	58,600	$	3,641,404
Red Hat, Inc. (a)	8,800		613,360
			4,254,764
Specialty Retail | 2.7%
Advance Auto Parts, Inc.	7,053		1,192,803
L Brands, Inc.	6,200		408,208
Lowe’s Cos., Inc.	10,000		711,200
			2,312,211
Technology Hardware, Storage & Peripherals | 2.1%
Apple, Inc.	15,807		1,830,767
Textiles, Apparel & Luxury Goods | 0.4%
Deckers Outdoor Corp. (a)	6,965		385,791
Total Common Stocks (Cost $75,809,232)			84,918,289
Short-Term Investment | 2.5%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $2,186,613)	2,186,613		2,186,613
Total Investments | 100.3% (Cost $77,995,845) (b)		$	87,104,902
Liabilities in Excess of Cash and Other Assets | (0.3)%			(280,616	)
Net Assets | 100.0%		$	86,824,286

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

32  Annual Report

Description	Shares	Fair Value
Lazard US Small-Mid Cap Equity Portfolio
Common Stocks | 97.7%
Air Freight & Logistics | 0.7%
Echo Global Logistics, Inc. (a)	63,913	$	1,601,021
Airlines | 1.5%
Alaska Air Group, Inc.	38,050		3,376,176
Auto Components | 2.7%
Fox Factory Holding Corp. (a)	101,143		2,806,718
Modine Manufacturing Co. (a)	210,585		3,137,717
			5,944,435
Banks | 8.6%
Comerica, Inc.	54,195		3,691,221
Home Bancshares, Inc.	130,325		3,619,125
PacWest Bancorp	52,161		2,839,645
Signature Bank (a)	20,935		3,144,437
TCF Financial Corp.	115,000		2,252,850
Webster Financial Corp.	63,245		3,432,939
			18,980,217
Biotechnology | 2.1%
Cellectis SA ADR (a)	81,715		1,385,069
United Therapeutics Corp. (a)	22,535		3,232,195
			4,617,264
Building Products | 3.3%
Continental Building Products, Inc. (a)	100,630		2,324,553
Owens Corning	46,955		2,421,000
PGT Innovations, Inc. (a)	214,520		2,456,254
			7,201,807
Capital Markets | 1.2%
Morningstar, Inc.	35,455		2,608,070
Chemicals | 4.7%
Calgon Carbon Corp.	50,760		862,920
Ingevity Corp. (a)	62,050		3,404,063
Innospec, Inc.	41,480		2,841,380
Valvoline, Inc.	146,470		3,149,105
			10,257,468
Commercial Services & Supplies | 1.0%
Deluxe Corp.	30,585		2,190,192
Communications Equipment | 0.7%
Ciena Corp. (a)	61,395		1,498,652

Description	Shares	Fair Value
Containers & Packaging | 2.8%
Crown Holdings, Inc. (a)	62,360	$	3,278,265
Graphic Packaging Holding Co.	235,125		2,934,360
			6,212,625
Electric Utilities | 1.5%
PNM Resources, Inc.	96,955		3,325,556
Electrical Equipment | 3.8%
Atkore International Group, Inc.	113,600		2,716,176
Generac Holdings, Inc. (a)	61,470		2,504,288
Regal-Beloit Corp.	45,880		3,177,190
			8,397,654
Electronic Equipment, Instruments & Components | 2.1%
FLIR Systems, Inc.	82,105		2,971,380
Littelfuse, Inc.	10,720		1,626,974
			4,598,354
Energy Equipment & Services | 2.3%
Newpark Resources, Inc. (a)	229,600		1,722,000
Oceaneering International, Inc.	118,850		3,352,758
			5,074,758
Equity Real Estate Investment Trusts (REITs) | 9.2%
American Campus Communities, Inc.	73,025		3,634,454
DCT Industrial Trust, Inc.	78,973		3,781,227
Extra Space Storage, Inc.	34,130		2,636,201
Kilroy Realty Corp.	49,370		3,614,872
Tanger Factory Outlet Centers, Inc.	88,335		3,160,626
UDR, Inc.	93,545		3,412,522
			20,239,902
Food & Staples Retailing | 1.3%
Sprouts Farmers Market, Inc. (a)	147,055		2,782,281
Health Care Equipment & Supplies | 2.3%
DENTSPLY SIRONA, Inc.	30,250		1,746,332
STERIS PLC	49,925		3,364,446
			5,110,778
Hotels, Restaurants & Leisure | 1.2%
Bloomin’ Brands, Inc.	147,995		2,668,350
Insurance | 6.4%
Arch Capital Group, Ltd. (a)	43,155		3,723,845
Argo Group International Holdings, Ltd.	57,645		3,798,806
Reinsurance Group of America, Inc.	28,010		3,524,498
Validus Holdings, Ltd.	54,215		2,982,367
			14,029,516

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

Annual Report  33

Description	Shares	Fair Value
Lazard US Small-Mid Cap Equity Portfolio (concluded)
Internet Software & Services | 1.5%
j2 Global, Inc.	41,055	$	3,358,299
IT Services | 3.4%
Leidos Holdings, Inc.	64,370		3,291,882
Vantiv, Inc., Class A (a)	70,250		4,188,305
			7,480,187
Leisure Products | 0.6%
Vista Outdoor, Inc. (a)	38,225		1,410,503
Life Sciences Tools & Services | 2.6%
INC Research Holdings, Inc., Class A (a)	51,050		2,685,230
VWR Corp. (a)	118,395		2,963,427
			5,648,657
Machinery | 4.2%
Altra Industrial Motion Corp.	60,364		2,227,432
Tennant Co.	21,710		1,545,752
TriMas Corp. (a)	143,861		3,380,733
Woodward, Inc.	29,695		2,050,440
			9,204,357
Marine | 1.5%
Kirby Corp. (a)	48,415		3,219,597
Media | 1.3%
Scholastic Corp.	58,592		2,782,534
Multi-Utilities | 1.6%
CMS Energy Corp.	85,070		3,540,613
Oil, Gas & Consumable Fuels | 4.4%
Antero Resources Corp. (a)	140,818		3,330,346
Extraction Oil & Gas, Inc.	110,955		2,223,538
HollyFrontier Corp.	54,800		1,795,248
Matador Resources Co. (a)	91,080		2,346,221
			9,695,353
Pharmaceuticals | 1.1%
Catalent, Inc. (a)	92,500		2,493,800
Real Estate Management & Development | 1.0%
Jones Lang LaSalle, Inc.	21,330		2,155,183

Description	Shares	Fair Value
Semiconductors & Semiconductor Equipment | 5.3%
Brooks Automation, Inc.	82,905	$	1,415,188
Cypress Semiconductor Corp.	214,535		2,454,281
MACOM Technology Solutions Holdings, Inc. (a)	44,930		2,079,360
Microsemi Corp. (a)	47,645		2,571,401
Versum Materials, Inc. (a)	112,900		3,169,103
			11,689,333
Software | 3.1%
Bottomline Technologies de, Inc. (a)	106,265		2,658,750
BroadSoft, Inc. (a)	42,720		1,762,200
Red Hat, Inc. (a)	33,555		2,338,784
			6,759,734
Specialty Retail | 4.3%
Advance Auto Parts, Inc.	10,520		1,779,143
Chico’s FAS, Inc.	167,480		2,410,037
Foot Locker, Inc.	37,145		2,633,209
Sally Beauty Holdings, Inc. (a)	97,665		2,580,309
			9,402,698
Technology Hardware, Storage & Peripherals | 1.0%
NCR Corp. (a)	53,945		2,188,009
Textiles, Apparel & Luxury Goods | 1.4%
Steven Madden, Ltd. (a)	83,640		2,990,130
Total Common Stocks (Cost $188,331,645)			214,734,063

Description	Principal Amount (000)	Fair Value
Repurchase Agreement | 2.3%
State Street Bank and Trust Co., 0.01%, 01/03/17 (Dated 12/30/16, collateralized by $5,095,000 United States Treasury Note, 2.125%, 01/31/21, with a fair value of $5,201,134) Proceeds of $5,098,006 (Cost $5,098,000)	$ 5,098	$	5,098,000
Total Investments | 100.0% (Cost $193,429,645) (b)		$	219,832,063
Cash and Other Assets in Excess of Liabilities | 0.0%			93,367
Net Assets | 100.0%		$	219,925,430

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

34  Annual Report

Description	Shares		Fair Value
Lazard International Equity Portfolio
Common Stocks | 94.8%
Australia | 3.7%
BHP Billiton PLC		3,804,075	$	60,146,461
Caltex Australia, Ltd.		1,801,944		39,561,122
				99,707,583
Belgium | 3.4%
Anheuser-Busch InBev SA/NV		690,737		72,946,672
KBC Group NV		293,282		18,153,681
				91,100,353
Brazil | 1.1%
BB Seguridade Participacoes SA		3,395,500		29,392,682
Canada | 5.8%
Canadian National Railway Co.		495,510		33,347,696
MacDonald Dettwiler & Associates, Ltd.		373,000		18,582,631
National Bank of Canada		1,208,400		49,077,609
Suncor Energy, Inc.		1,635,910		53,488,585
				154,496,521
Denmark | 1.1%
Carlsberg A/S, Class B		338,682		29,228,556
Finland | 2.3%
Sampo Oyj, A Shares		1,393,996		62,335,669
France | 10.3%
Air Liquide SA		410,628		45,585,046
Airbus Group SE		292,986		19,336,664
Capgemini SA		604,682		50,997,439
Cie Generale des Etablissements Michelin		345,767		38,459,236
Valeo SA		1,145,792		65,836,750
Vinci SA		783,144		53,268,804
				273,483,939
Germany | 2.4%
SAP SE		728,483		63,665,874
Ireland | 4.9%
James Hardie Industries PLC		1,848,187		29,264,329
Ryanair Holdings PLC Sponsored ADR (a)		360,949		30,052,614
Shire PLC		1,234,841		69,973,707
				129,290,650
Israel | 1.8%
Teva Pharmaceutical Industries, Ltd. Sponsored ADR		1,335,410		48,408,612

Description	Shares		Fair Value
Italy | 0.8%
Azimut Holding SpA		1,222,428	$	20,360,314
Japan | 17.9%
ABC-Mart, Inc.		468,500		26,502,303
Daiwa House Industry Co., Ltd.		2,552,980		69,644,081
Don Quijote Holdings Co., Ltd.		1,636,800		60,467,262
Hoshizaki Corp.		60,800		4,806,276
Isuzu Motors, Ltd.		3,423,000		43,212,688
Japan Tobacco, Inc.		1,064,700		34,979,013
KDDI Corp.		1,408,400		35,559,155
Makita Corp.		577,500		38,631,842
Seven & I Holdings Co., Ltd.		1,125,300		42,824,626
Sony Corp.		2,075,200		57,672,055
Sumitomo Mitsui Financial Group, Inc.		1,240,000		47,008,471
United Arrows, Ltd.		593,700		16,345,401
				477,653,173
Luxembourg | 0.7%
RTL Group SA		239,298		17,539,529
Netherlands | 5.4%
Koninklijke KPN NV		7,335,616		21,722,383
Royal Dutch Shell PLC, A Shares		2,681,741		73,894,584
Wolters Kluwer NV		1,307,193		47,272,950
				142,889,917
Norway | 2.6%
Statoil ASA		1,839,586		33,519,676
Telenor ASA		2,372,049		35,366,301
				68,885,977
Philippines | 0.3%
Alliance Global Group, Inc.		31,976,300		8,220,615
Spain | 0.9%
Red Electrica Corporacion SA		1,325,991		25,003,341
Sweden | 3.5%
Assa Abloy AB, Class B		2,751,641		51,042,926
Swedbank AB, A Shares		1,786,061		43,167,816
				94,210,742
Switzerland | 6.0%
Novartis AG		1,386,468		100,890,974
Wolseley PLC		969,092		59,205,895
				160,096,869
Taiwan | 2.2%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		2,067,700		59,446,375

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

Annual Report  35

Description	Shares		Fair Value
Lazard International Equity Portfolio (concluded)
Turkey | 0.6%
Turkiye Garanti Bankasi AS		7,581,323	$	16,389,789
United Kingdom | 13.7%
British American Tobacco PLC		1,308,767		74,310,360
Diageo PLC		1,146,347		29,657,252
Direct Line Insurance Group PLC		4,137,291		18,763,643
Howden Joinery Group PLC		3,883,705		18,274,480
Informa PLC		3,387,530		28,369,585
Provident Financial PLC		725,051		25,490,793
Prudential PLC		4,300,759		85,783,575
RELX PLC		2,754,126		48,979,641
Unilever PLC		847,984		34,301,057
				363,930,386
United States | 3.4%
Aon PLC		478,175		53,330,858
Signet Jewelers, Ltd.		385,923		36,377,102
				89,707,960
Total Common Stocks (Cost $2,592,930,867)				2,525,445,426

Description	Principal Amount (000)		Fair Value
Repurchase Agreement | 5.8%
State Street Bank and Trust Co., 0.01%, 01/03/17 (Dated 12/30/16, collateralized by $150,765,000 United States Treasury Notes, 2.125% - 3.50%, 05/15/20 - 01/31/21, with a fair value of $156,446,266) Proceeds of $153,374,170 (Cost $153,374,000)	$	153,374	$	153,374,000
Total Investments | 100.6% (Cost $2,746,304,867) (b)			$	2,678,819,426
Liabilities in Excess of Cash and Other Assets | (0.6)%				(14,698,972	)
Net Assets | 100.0%			$	2,664,120,454

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

36  Annual Report

Description	Shares		Fair Value
Lazard International Equity Select Portfolio
Common Stocks | 94.6%
Australia | 1.8%
BHP Billiton, Ltd.		31,027	$	553,831
Belgium | 3.4%
Anheuser-Busch InBev SA/NV		7,820		825,847
KBC Group NV		3,496		216,397
				1,042,244
Brazil | 4.0%
Ambev SA		50,900		251,099
BB Seguridade Participacoes SA		57,700		499,472
Cia de Saneamento Basico do Estado de Sao Paulo		28,100		244,149
Estacio Participacoes SA		45,700		220,743
				1,215,463
Canada | 2.6%
Canadian National Railway Co.		5,900		397,069
Suncor Energy, Inc.		12,100		395,628
				792,697
China | 1.6%
Tencent Holdings, Ltd.		20,300		492,685
Denmark | 1.0%
Carlsberg A/S, Class B		3,469		299,378
Finland | 2.1%
Sampo Oyj, A Shares		14,214		635,611
France | 4.6%
Capgemini SA		3,240		273,254
Valeo SA		10,978		630,791
Vinci SA		7,456		507,151
				1,411,196
Germany | 3.8%
Continental AG		1,635		318,276
GEA Group AG		5,285		211,841
SAP SE		7,041		615,349
				1,145,466
Indonesia | 2.0%
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		20,308		592,181

Description	Shares		Fair Value
Ireland | 3.4%
Ryanair Holdings PLC Sponsored ADR (a)		4,347	$	361,931
Shire PLC		11,915		675,178
				1,037,109
Israel | 1.0%
Teva Pharmaceutical Industries, Ltd. Sponsored ADR		8,390		304,137
Italy | 0.7%
Banca Mediolanum SpA		30,326		217,835
Japan | 14.8%
Daiwa House Industry Co., Ltd.		26,500		722,907
FANUC Corp.		1,900		321,291
Japan Tobacco, Inc.		9,600		315,392
KDDI Corp.		13,400		338,322
Makita Corp.		8,600		575,297
Ryohin Keikaku Co., Ltd.		2,400		469,282
Seven & I Holdings Co., Ltd.		9,717		369,792
SoftBank Group Corp.		7,300		481,927
Sony Corp.		12,600		350,168
Sumitomo Mitsui Financial Group, Inc.		14,176		537,413
				4,481,791
Netherlands | 3.3%
Royal Dutch Shell PLC, A Shares		20,103		546,437
Wolters Kluwer NV		12,408		448,719
				995,156
Norway | 2.2%
Statoil ASA		18,679		340,356
Telenor ASA		22,537		336,018
				676,374
Philippines | 0.6%
Alliance Global Group, Inc.		732,000		188,186
Russia | 0.5%
Mobile TeleSystems PJSC Sponsored ADR		17,616		160,482
South Africa | 2.1%
Mr. Price Group, Ltd.		13,990		161,778
Nampak, Ltd.		100,386		134,606
Sanlam, Ltd.		75,769		346,661
				643,045
South Korea | 1.8%
Samsung Electronics Co., Ltd.		375		554,084

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

Annual Report  37

Description	Shares		Fair Value
Lazard International Equity Select Portfolio (concluded)
Spain | 1.2%
Red Electrica Corporacion SA		19,259	$	363,154
Sweden | 3.3%
Assa Abloy AB, Class B		31,079		576,515
Swedbank AB, A Shares		17,015		411,241
				987,756
Switzerland | 6.7%
Actelion, Ltd.		1,509		326,755
Cie Financiere Richemont SA		3,240		214,611
Novartis AG		13,773		1,002,238
Wolseley PLC		8,247		503,844
				2,047,448
Taiwan | 4.2%
Taiwan Semiconductor Manufacturing Co., Ltd.		228,341		1,278,718
Thailand | 0.7%
Kasikornbank Public Co. Ltd.		40,700		201,059
Turkey | 1.6%
KOC Holding AS		50,653		198,062
Turkcell Iletisim Hizmetleri AS (a)		105,095		290,398
				488,460
United Kingdom | 15.6%
Ashtead Group PLC		15,536		300,988
Associated British Foods PLC		7,121		240,664
British American Tobacco PLC		13,845		786,104

Description	Shares		Fair Value
Compass Group PLC		28,676	$	528,565
Informa PLC		57,216		479,167
London Stock Exchange Group PLC		8,661		311,183
Prudential PLC		45,196		901,486
RELX PLC		20,919		372,026
Unilever PLC		11,888		480,871
Worldpay Group PLC		98,105		325,555
				4,726,409
United States | 4.0%
Accenture PLC, Class A		2,495		292,239
Aon PLC		4,660		519,730
Signet Jewelers, Ltd.		4,377		412,576
				1,224,545
Total Common Stocks (Cost $29,176,375)				28,756,500
Short-Term Investment | 5.2%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $1,571,983)		1,571,983		1,571,983
Total Investments | 99.8% (Cost $30,748,358) (b)			$	30,328,483
Cash and Other Assets in Excess of Liabilities | 0.2%				62,507
Net Assets | 100.0%			$	30,390,990

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

38  Annual Report

Description	Shares		Fair Value
Lazard International Equity Concentrated Portfolio
Common Stocks | 96.5%
Belgium | 5.2%
Anheuser-Busch InBev SA/NV		7,603	$	802,930
Brazil | 5.2%
BB Seguridade Participacoes SA		33,186		287,270
Estacio Participacoes SA		107,300		518,289
				805,559
Canada | 9.6%
National Bank of Canada		16,454		668,258
Suncor Energy, Inc.		25,281		826,601
				1,494,859
China | 3.1%
Tencent Holdings, Ltd.		19,900		482,976
France | 15.3%
Airbus Group SE		4,739		312,768
Capgemini SA		6,427		542,038
Valeo SA		16,134		927,053
Vinci SA		8,929		607,343
				2,389,202
Ireland | 6.3%
Shire PLC		17,341		982,648
Japan | 15.6%
ABC-Mart, Inc.		6,743		381,441
Isuzu Motors, Ltd.		32,800		414,074
KDDI Corp.		23,400		590,801
Sony Corp.		21,600		600,287
Sumitomo Mitsui Financial Group, Inc.		11,700		443,548
				2,430,151
Netherlands | 3.2%
Wolters Kluwer NV		13,586		491,320

Description	Shares		Fair Value
South Korea | 2.9%
Samsung Electronics Co., Ltd. GDR		612	$	455,758
Taiwan | 5.0%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		27,234		782,977
Turkey | 2.0%
Turkiye Garanti Bankasi AS		144,322		312,005
United Kingdom | 17.1%
British American Tobacco PLC		8,281		470,186
Howden Joinery Group PLC		65,832		309,768
Provident Financial PLC		13,383		470,509
Prudential PLC		38,996		777,820
The Weir Group PLC		27,647		640,551
				2,668,834
United States | 6.0%
Aon PLC		3,709		413,665
Signet Jewelers, Ltd.		5,541		522,294
				935,959
Total Common Stocks (Cost $14,752,107)				15,035,178
Short-Term Investment | 3.7%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $579,407)		579,407		579,407
Total Investments | 100.2% (Cost $15,331,514) (b)			$	15,614,585
Liabilities in Excess of Cash and Other Assets | (0.2)%				(27,655	)
Net Assets | 100.0%			$	15,586,930

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

Annual Report  39

Description	Shares		Fair Value
Lazard International Strategic Equity Portfolio
Common Stocks | 97.7%
Australia | 4.0%
Amcor, Ltd.	9,510,159	$	102,443,032
Caltex Australia, Ltd.	5,825,943		127,906,771
carsales.com, Ltd.	5,292,858		43,276,888
			273,626,691
Belgium | 2.5%
Anheuser-Busch InBev SA/NV	1,590,913		168,011,572
Canada | 4.4%
Alimentation Couche-Tard, Inc., Class B	2,237,166		101,440,186
National Bank of Canada	1,895,100		76,967,045
Suncor Energy, Inc.	3,773,818		123,390,765
			301,797,996
China | 2.0%
China Resources Beer Holdings Co., Ltd. (a)	14,617,333		28,878,566
Tencent Holdings, Ltd.	4,453,100		108,077,519
			136,956,085
Denmark | 2.5%
Carlsberg A/S, Class B	2,011,018		173,552,633
Finland | 4.4%
Sampo Oyj, A Shares	6,725,021		300,724,450
France | 8.2%
Faurecia	1,606,065		62,244,279
Iliad SA	453,946		87,194,866
Television Francaise 1	7,822,862		77,807,133
Valeo SA	3,311,724		190,290,336
Vivendi SA	7,463,110		141,780,762
			559,317,376
Germany | 2.6%
Fresenius SE & Co. KGaA	1,294,297		101,102,926
Symrise AG	1,255,725		76,378,528
			177,481,454
Indonesia | 0.4%
PT Media Nusantara Citra Tbk	200,714,700		26,044,411

Description	Shares		Fair Value
Ireland | 6.9%
Bank of Ireland (a)		266,165,231	$	65,459,047
James Hardie Industries PLC		4,747,884		75,178,346
Kerry Group PLC, Class A		1,510,935		108,043,376
Shire PLC		3,884,885		220,141,544
				468,822,313
Italy | 0.5%
Azimut Holding SpA		2,124,202		35,379,933
Japan | 16.1%
AEON Financial Service Co., Ltd.		8,708,400		154,036,875
Asics Corp.		5,624,550		112,114,034
Daiwa House Industry Co., Ltd.		7,736,100		211,037,131
Don Quijote Holdings Co., Ltd.		6,367,200		235,219,423
FANUC Corp.		747,600		126,419,652
Hoshizaki Corp.		618,900		48,924,416
Makita Corp.		1,648,900		110,303,107
Shimano, Inc.		636,600		99,642,601
				1,097,697,239
Mexico | 0.7%
Grupo Financiero Banorte SAB de CV, Class O		9,024,603		44,448,988
Netherlands | 1.4%
Wolters Kluwer NV		2,601,539		94,081,305
New Zealand | 1.0%
Z Energy, Ltd.		13,972,790		70,532,755
Norway | 4.3%
Statoil ASA		9,619,450		175,279,028
Telenor ASA		7,874,690		117,408,475
				292,687,503
Philippines | 1.9%
Alliance Global Group, Inc.		225,380,200		57,941,782
GT Capital Holdings, Inc.		2,741,180		70,015,892
				127,957,674
Singapore | 1.0%
DBS Group Holdings, Ltd.		5,816,900		69,399,941
South Africa | 1.4%
Nampak, Ltd.		15,425,427		20,683,725
Netcare, Ltd.		32,166,779		74,503,401
				95,187,126

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

40  Annual Report

Description	Shares		Fair Value
Lazard International Strategic Equity Portfolio (concluded)
Sweden | 3.2%
Assa Abloy AB, Class B		7,011,462	$	130,062,584
Swedbank AB, A Shares		3,690,530		89,197,468
				219,260,052
Switzerland | 2.4%
Actelion, Ltd.		343,435		74,366,510
Cie Financiere Richemont SA		1,313,289		86,989,437
				161,355,947
Taiwan | 2.0%
Taiwan Semiconductor Manufacturing Co., Ltd.		23,876,000		133,706,489
Thailand | 0.5%
Kasikornbank Public Co. Ltd.		7,017,350		34,665,899
Turkey | 1.3%
Turkcell Iletisim Hizmetleri AS (a)		12,224,891		33,779,766
Turkiye Garanti Bankasi AS		24,199,430		52,315,876
				86,095,642
United Kingdom | 18.7%
Ashtead Group PLC		2,629,882		50,950,287
Associated British Foods PLC		2,982,945		100,812,773
British American Tobacco PLC		3,958,251		224,745,167
Compass Group PLC		7,863,041		144,934,076
ConvaTec Group PLC		14,965,302		43,138,727

Description	Shares		Fair Value
Diageo PLC		5,617,618	$	145,333,927
Informa PLC		21,937,508		183,720,293
Merlin Entertainments PLC		13,520,592		74,708,534
Prudential PLC		10,960,075		218,611,276
Worldpay Group PLC		25,011,459		82,947,853
				1,269,902,913
United States | 3.4%
Accenture PLC, Class A		631,160		73,927,771
Aon PLC		970,780		108,271,093
Signet Jewelers, Ltd.		492,788		46,450,197
				228,649,061
Total Common Stocks (Cost $6,641,684,645)				6,647,343,448
Short-Term Investment | 1.8%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $123,102,451)		123,102,451		123,102,451
Total Investments | 99.5% (Cost $6,764,787,096) (b)			$	6,770,445,899
Cash and Other Assets in Excess of Liabilities | 0.5%				31,211,356
Net Assets | 100.0%			$	6,801,657,255

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

Annual Report  41

Description	Shares		Fair Value
Lazard International Equity Advantage Portfolio
Common Stocks | 100.1%
Australia | 7.7%
Aristocrat Leisure, Ltd.		1,460	$	16,290
BlueScope Steel, Ltd.		1,041		6,927
Cochlear, Ltd.		269		23,747
Computershare, Ltd.		1,437		12,918
CSL, Ltd.		559		40,382
Fortescue Metals Group, Ltd.		1,423		6,009
Harvey Norman Holdings, Ltd.		2,634		9,761
JB Hi-Fi, Ltd.		523		10,559
Magellan Financial Group, Ltd.		444		7,588
Mineral Resources, Ltd.		431		3,750
Newcrest Mining, Ltd.		913		12,873
Whitehaven Coal, Ltd. (a)		3,808		7,147
				157,951
Austria | 0.4%
Erste Group Bank AG		243		7,117
Belgium | 0.2%
Ontex Group NV		138		4,103
Denmark | 1.5%
Novo Nordisk A/S, Class B		552		19,828
Vestas Wind Systems A/S		182		11,828
				31,656
Faeroe Islands | 0.2%
Bakkafrost P/F		119		4,724
Finland | 1.0%
Kone Oyj, Class B		440		19,712
France | 10.4%
Airbus Group SE		127		8,382
AXA SA		1,450		36,589
BNP Paribas SA		553		35,227
CNP Assurances		314		5,816
Elis SA		204		3,637
Faurecia		431		16,704
Hermes International		26		10,662
Orange SA		1,171		17,771
Peugeot SA (a)		1,091		17,786
Rubis SCA		28		2,308
Societe Generale SA		584		28,669

Description	Shares		Fair Value
TOTAL SA		21	$	1,072
Ubisoft Entertainment SA (a)		118		4,198
Unibail-Rodamco SE REIT		16		3,819
Valeo SA		390		22,409
				215,049
Germany | 7.7%
Allianz SE		64		10,579
BASF SE		299		27,885
Bayer AG		163		17,005
Continental AG		72		14,016
Deutsche Post AG		115		3,776
Infineon Technologies AG		733		12,704
MTU Aero Engines AG		58		6,692
Muenchener Rueckversicherungs AG		91		17,211
Rheinmetall AG		54		3,628
SAP SE		200		17,479
Siemens AG		128		15,734
Uniper SE (a)		640		8,782
United Internet AG		85		3,309
				158,800
Hong Kong | 3.8%
CK Hutchison Holdings, Ltd.		500		5,645
Jardine Matheson Holdings, Ltd.		300		16,549
The Wharf Holdings, Ltd.		3,000		19,715
WH Group, Ltd.		31,000		24,959
Wheelock & Co., Ltd.		1,000		5,613
Xinyi Glass Holdings, Ltd.		8,000		6,508
				78,989
Ireland | 1.4%
AerCap Holdings NV (a)		322		13,398
Experian PLC		692		13,395
Smurfit Kappa Group PLC		110		2,548
				29,341
Italy | 0.7%
Assicurazioni Generali SpA		291		4,322
Enel SpA		1,510		6,645
Poste Italiane SpA		634		4,206
				15,173
Japan | 24.6%
Asahi Glass Co., Ltd.		1,000		6,794
Astellas Pharma, Inc.		900		12,475
Central Japan Railway Co. ADR		945		15,526
Daito Trust Construction Co., Ltd.		200		30,038
Daiwa House Industry Co., Ltd.		600		16,368
Foster Electric Co., Ltd.		200		3,775
Fuji Heavy Industries, Ltd.		100		4,068

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

42  Annual Report

Description	Shares		Fair Value
Lazard International Equity Advantage Portfolio (continued)
Fujitsu, Ltd.		1,000	$	5,539
Haseko Corp.		600		6,073
Hitachi High-Technologies Corp.		300		12,075
Idemitsu Kosan Co., Ltd.		200		5,302
ITOCHU Corp.		200		2,651
JTEKT Corp.		600		9,566
Kakaku.com, Inc.		500		8,267
Kanamoto Co., Ltd.		300		7,931
KDDI Corp.		1,500		37,872
Mebuki Financial Group, Inc.		1,200		4,434
Mitsubishi Chemical Holdings Corp.		3,100		19,976
Mitsubishi Electric Corp.		3,600		50,046
Mitsubishi UFJ Financial Group, Inc.		7,300		44,880
Mitsui Chemicals, Inc.		2,000		8,960
Nichirei Corp.		400		8,277
Nippon Light Metal Holdings Co., Ltd.		3,800		8,000
Nippon Telegraph & Telephone Corp.		400		16,814
Nissan Motor Co., Ltd.		3,900		39,127
ORIX Corp.		1,500		23,239
Sumitomo Mitsui Financial Group, Inc.		1,300		49,283
Teijin, Ltd.		500		10,111
Tokyu Fudosan Holdings Corp.		700		4,124
Unitika, Ltd. (a)		5,000		3,574
West Japan Railway Co.		300		18,384
West Japan Railway Co. ADR		203		12,501
				506,050
Jersey | 0.2%
Centamin PLC		2,219		3,746
Netherlands | 2.7%
ASML Holding NV		43		4,818
Heineken Holding NV		58		4,033
Koninklijke Ahold Delhaize NV		267		5,620
Koninklijke Vopak NV		84		3,962
NN Group NV		554		18,760
Royal Dutch Shell PLC, A Shares		672		18,517
				55,710
Norway | 1.3%
Aker BP ASA		598		10,690
DNB ASA		467		6,945
Salmar ASA		164		4,900
Yara International ASA		103		4,056
				26,591

Description	Shares		Fair Value
Portugal | 1.2%
Galp Energia SGPS SA		802	$	11,922
Jeronimo Martins SGPS SA		753		11,680
				23,602
Singapore | 1.2%
CapitaLand, Ltd.		2,400		4,985
Singapore Exchange, Ltd.		1,300		6,425
United Overseas Bank, Ltd.		900		12,630
				24,040
Spain | 4.1%
Amadeus IT Group SA		150		6,814
Banco Bilbao Vizcaya Argentaria SA		1,739		11,732
Banco Santander SA		7,988		41,699
CaixaBank SA		3,921		12,953
Industria de Diseno Textil SA		357		12,183
				85,381
Sweden | 2.0%
Boliden AB		292		7,607
Bonava AB, B Shares (a)		206		3,188
Electrolux AB, Series B		919		22,818
Intrum Justitia AB		201		6,781
				40,394
Switzerland | 9.5%
Actelion, Ltd.		90		19,488
Geberit AG		14		5,612
Logitech International SA		452		11,274
Nestle SA		600		43,042
Partners Group Holding AG		56		26,246
Roche Holding AG		292		66,699
Swiss Life Holding AG		29		8,208
Wolseley PLC		239		14,602
				195,171
United Kingdom | 17.6%
Admiral Group PLC		481		10,786
Bellway PLC		178		5,416
BP PLC		2,436		15,136
British American Tobacco PLC		600		34,067
BT Group PLC		8,578		38,844
Centrica PLC		6,771		19,508
Compass Group PLC		679		12,516
Debenhams PLC		2,767		1,952
Direct Line Insurance Group PLC		613		2,780
GlaxoSmithKline PLC		1,625		31,033
Hargreaves Lansdown PLC		608		9,076
HSBC Holdings PLC		1,275		10,309

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

Annual Report  43

Description	Shares		Fair Value
Lazard International Equity Advantage Portfolio (concluded)
IG Group Holdings PLC		379	$	2,304
Imperial Brands PLC		199		8,657
International Consolidated Airlines Group SA		768		4,144
Petrofac, Ltd.		333		3,559
Phoenix Group Holdings		476		4,307
Reckitt Benckiser Group PLC		474		40,069
Rentokil Initial PLC		1,894		5,181
Rightmove PLC		167		8,026
Sky PLC		1,007		12,251
SSE PLC		2,305		44,063
Subsea 7 SA (a)		1,032		13,045
Taylor Wimpey PLC		1,999		3,754
Unilever NV		454		18,659
William Hill PLC		1,156		4,120
				363,562

Description	Shares		Fair Value
United States | 0.7%
International Game Technology PLC		574	$	14,649
Total Common Stocks (Cost $2,065,741)				2,061,511
Short-Term Investment | 2.2%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $46,381)		46,381		46,381
Total Investments | 102.3% (Cost $2,112,122) (b)			$	2,107,892
Liabilities in Excess of Cash and Other Assets | (2.3)%				(46,408	)
Net Assets | 100.0%			$	2,061,484

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

44  Annual Report

Description	Shares		Fair Value
Lazard International Small Cap Equity Portfolio
Common Stocks | 97.5%
Australia | 3.5%
carsales.com, Ltd.		110,224	$	901,243
MYOB Group, Ltd.		360,025		946,770
Pact Group Holdings, Ltd.		210,446		1,022,593
				2,870,606
Belgium | 1.5%
Kinepolis Group NV		26,895		1,203,055
Canada | 7.2%
Alaris Royalty Corp.		37,900		676,055
Altus Group, Ltd.		46,365		1,069,125
ECN Capital Corp.		102,201		251,192
Element Fleet Management Corp.		78,501		728,501
Exchange Income Corp.		25,600		796,038
Intertape Polymer Group, Inc.		56,600		1,061,474
Sandvine Corp.		241,977		506,428
The Descartes Systems Group, Inc. (a)		38,900		829,484
				5,918,297
Cyprus | 1.2%
Aroundtown Property Holdings PLC		210,262		945,821
Denmark | 2.0%
Dfds AS		17,282		788,017
Nets A/S		48,547		849,249
				1,637,266
Germany | 8.2%
AURELIUS Equity Opportunities SE & Co. KGaA		18,123		1,057,100
CompuGroup Medical SE		24,861		1,019,126
CTS Eventim AG & Co. KGaA		23,320		733,622
Duerr AG		15,587		1,250,619
Grand City Properties SA		55,854		1,014,414
Norma Group SE		18,170		774,298
PATRIZIA Immobilien AG (a)		51,850		858,834
				6,708,013
India | 0.8%
Indiabulls Housing Finance, Ltd.		69,884		664,055
Ireland | 2.7%
Cairn Homes PLC (a)		591,888		840,986
Greencore Group PLC		441,998		1,343,809
				2,184,795

Description	Shares		Fair Value
Italy | 3.1%
Azimut Holding SpA		41,157	$	685,496
Cerved Information Solutions SpA		112,728		934,154
EI Towers SpA (a)		17,426		938,878
				2,558,528
Japan | 26.5%
ABC-Mart, Inc.		14,500		820,242
Ai Holdings Corp.		40,460		803,340
Ain Holdings, Inc.		17,700		1,169,926
Anicom Holdings, Inc.		39,900		827,943
Ariake Japan Co., Ltd.		17,800		949,078
Broadleaf Co., Ltd.		153,500		826,180
Daikyonishikawa Corp.		64,400		824,200
Dip Corp.		43,900		906,581
Financial Products Group Co., Ltd.		126,237		1,092,023
Iriso Electronics Co., Ltd.		17,391		994,019
Jafco Co., Ltd.		36,200		1,184,071
MISUMI Group, Inc.		68,500		1,124,202
Nissei ASB Machine Co., Ltd.		62,900		1,267,616
Rinnai Corp.		8,700		700,834
Sanwa Holdings Corp.		91,400		869,998
Sawai Pharmaceutical Co., Ltd.		13,600		729,078
Seria Co., Ltd.		15,700		1,068,617
Skylark Co., Ltd.		82,100		1,083,677
TechnoPro Holdings, Inc.		29,100		930,032
Temp Holdings Co., Ltd.		55,700		862,011
Toridoll Holdings Corp.		32,900		708,155
USS Co., Ltd.		58,800		934,785
Zenkoku Hosho Co., Ltd.		29,142		935,159
				21,611,767
Luxembourg | 1.2%
Stabilus SA (a)		17,817		956,287
Mexico | 1.4%
Nemak SAB de CV		619,000		554,810
Unifin Financiera SAB de CV SOFOM ENR		247,460		613,587
				1,168,397
Netherlands | 2.1%
Aalberts Industries NV		30,323		982,717
Intertrust NV		39,605		696,429
				1,679,146
New Zealand | 1.1%
Z Energy, Ltd.		180,889		913,103
Norway | 1.2%
Europris ASA		228,015		974,410

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

Annual Report  45

Description	Shares		Fair Value
Lazard International Small Cap Equity Portfolio (concluded)
Portugal | 1.0%
NOS SGPS SA		135,124	$	801,765
Singapore | 1.0%
XP Power, Ltd.		37,295		798,557
Spain | 0.9%
Euskaltel SA (a)		82,309		729,262
Sweden | 6.9%
Alimak Group AB		75,271		1,067,325
Granges AB		86,988		820,791
Indutrade AB		46,162		925,349
Inwido AB		96,203		997,666
Lifco AB, B Shares		34,106		871,291
Loomis AB, B Shares		32,791		974,845
				5,657,267
Switzerland | 1.4%
Kardex AG		12,007		1,123,114
Taiwan | 3.3%
Cleanaway Co., Ltd.		116,000		591,847
Primax Electronics, Ltd.		460,000		625,411
Sporton International, Inc.		150,470		795,595
Zeng Hsing Industrial Co., Ltd.		138,000		686,447
				2,699,300
United Arab Emirates | 1.1%
NMC Health PLC		47,521		902,396
United Kingdom | 16.5%
Ascential PLC		245,110		815,404
Auto Trader Group PLC		199,679		1,005,406
Clinigen Healthcare, Ltd.		136,178		1,188,033

Description	Shares		Fair Value
Dignity PLC		26,478	$	805,303
EMIS Group PLC		54,340		645,979
Equiniti Group PLC		375,940		904,224
Hunting PLC		102,562		790,604
IG Group Holdings PLC		87,242		530,340
John Wood Group PLC		71,046		764,958
Polypipe Group PLC		259,639		1,034,934
Rentokil Initial PLC		347,747		951,282
Rightmove PLC		20,692		994,441
RPC Group PLC		108,204		1,415,595
Savills PLC		104,147		896,816
Workspace Group PLC REIT		71,596		696,401
				13,439,720
United States | 1.7%
Core Laboratories NV		5,800		696,232
Samsonite International SA		236,100		671,701
				1,367,933
Total Common Stocks (Cost $76,622,905)				79,512,860
Short-Term Investment | 2.8%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $2,313,614)		2,313,614		2,313,614
Total Investments | 100.3% (Cost $78,936,519) (b)			$	81,826,474
Liabilities in Excess of Cash and Other Assets | (0.3)%				(254,261	)
Net Assets | 100.0%			$	81,572,213

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

46  Annual Report

Description	Shares		Fair Value
Lazard Global Equity Select Portfolio
Common Stocks | 94.5%
Belgium | 2.2%
Anheuser-Busch InBev SA/NV		6,623	$	699,435
Canada | 1.6%
Canadian National Railway Co.		7,575		509,796
China | 1.3%
Tencent Holdings, Ltd.		17,420		422,787
Denmark | 1.9%
Carlsberg A/S, Class B		4,014		346,412
Novo Nordisk A/S, Class B		6,817		244,863
				591,275
Finland | 1.9%
Sampo Oyj, A Shares		13,271		593,443
Germany | 2.8%
Continental AG		2,267		441,304
Symrise AG		7,485		455,270
				896,574
Hong Kong | 0.9%
AIA Group, Ltd.		53,345		298,533
India | 0.5%
Indiabulls Housing Finance, Ltd. GDR		15,743		150,361
Ireland | 2.0%
Shire PLC		11,230		636,361
Japan | 5.5%
AEON Financial Service Co., Ltd.		19,725		348,902
Daiwa House Industry Co., Ltd.		20,385		556,093
Recruit Holdings Co., Ltd.		10,120		405,254
Ryohin Keikaku Co., Ltd.		2,160		422,354
				1,732,603
Netherlands | 2.6%
NXP Semiconductors NV (a)		3,090		302,851
Wolters Kluwer NV		14,723		532,438
				835,289
South Africa | 0.7%
Sanlam, Ltd.		47,006		215,063

Description	Shares		Fair Value
Sweden | 1.8%
Assa Abloy AB, Class B		31,350	$	581,542
Switzerland | 1.1%
Actelion, Ltd.		1,559		337,582
Taiwan | 1.2%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		13,375		384,531
United Kingdom | 9.4%
Ashtead Group PLC		18,302		354,576
British American Tobacco PLC		5,552		315,236
Compass Group PLC		23,154		426,782
ConvaTec Group PLC		51,562		148,632
Diageo PLC		17,566		454,451
Prudential PLC		18,866		376,304
RELX NV		36,834		619,161
Unilever PLC		6,680		270,207
				2,965,349
United States | 57.1%
Accenture PLC, Class A		5,295		620,203
Alphabet, Inc., Class A (a)		1,057		837,620
Alphabet, Inc., Class C (a)		621		479,300
Aon PLC		4,330		482,925
Apple, Inc.		7,552		874,673
Applied Materials, Inc.		16,815		542,620
AutoZone, Inc. (a)		574		453,339
Bank of America Corp.		21,380		472,498
Cisco Systems, Inc.		17,355		524,468
Comerica, Inc.		4,705		320,458
CVS Health Corp.		3,145		248,172
Eaton Corp. PLC		5,065		339,811
eBay, Inc. (a)		5,390		160,029
EOG Resources, Inc.		3,005		303,805
Fidelity National Information Services, Inc.		5,335		403,539
Honeywell International, Inc.		4,583		530,940
Intercontinental Exchange, Inc.		9,680		546,146
Johnson Controls International PLC		10,745		442,586
Kellogg Co.		3,255		239,926
Manitowoc Foodservice, Inc. (a)		15,335		296,426
Mead Johnson Nutrition Co.		3,035		214,757
Microsoft Corp.		13,890		863,125
Molson Coors Brewing Co., Class B		4,909		477,695
Monsanto Co.		3,140		330,359
Quintiles IMS Holdings, Inc. (a)		5,630		428,161
Reynolds American, Inc.		5,645		316,346

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

Annual Report  47

Description	Shares		Fair Value
Lazard Global Equity Select Portfolio (concluded)
Rockwell Automation, Inc.		3,985	$	535,584
S&P Global, Inc.		3,780		406,501
Schlumberger, Ltd.		9,841		826,152
Snap-on, Inc.		1,955		334,833
The Charles Schwab Corp.		11,875		468,706
The Coca-Cola Co.		10,910		452,329
The Procter & Gamble Co.		5,440		457,395
Thermo Fisher Scientific, Inc.		3,060		431,766
United Technologies Corp.		5,964		653,774
Vantiv, Inc., Class A (a)		8,010		477,556
Visa, Inc., Class A		7,288		568,610
Zoetis, Inc.		14,192		759,698
				18,122,831
Total Common Stocks (Cost $28,395,907)				29,973,355

Description	Shares		Fair Value
Short-Term Investment | 5.1%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $1,625,735)		1,625,735	$	1,625,735
Total Investments | 99.6% (Cost $30,021,642) (b)			$	31,599,090
Cash and Other Assets in Excess of Liabilities | 0.4%				112,799
Net Assets | 100.0%			$	31,711,889

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

48  Annual Report

Description	Shares		Fair Value
Lazard Global Strategic Equity Portfolio
Common Stocks | 96.6%
Australia | 1.5%
Caltex Australia, Ltd.		13,922	$	305,653
Belgium | 1.7%
Anheuser-Busch InBev SA/NV		3,116		329,072
Denmark | 1.6%
Carlsberg A/S, Class B		3,792		327,253
Finland | 2.2%
Sampo Oyj, A Shares		9,580		428,391
France | 3.0%
Faurecia		5,181		200,794
Iliad SA		767		147,327
Vivendi SA		13,025		247,443
				595,564
Greece | 1.2%
OPAP SA		26,977		238,539
Indonesia | 0.5%
PT Media Nusantara Citra Tbk		789,200		102,405
Ireland | 2.3%
Shire PLC		8,208		465,116
Israel | 1.3%
Israel Discount Bank, Ltd., Class A (a)		126,686		262,997
Japan | 5.4%
Ain Holdings, Inc.		2,900		191,683
Asics Corp.		11,900		237,202
Daiwa House Industry Co., Ltd.		15,400		420,105
Don Quijote Holdings Co., Ltd.		6,400		236,431
				1,085,421
New Zealand | 1.7%
Trade Me Group, Ltd.		47,122		163,615
Z Energy, Ltd.		35,447		178,931
				342,546
Norway | 0.9%
Europris ASA		40,769		174,224

Description	Shares		Fair Value
Philippines | 0.8%
Alliance Global Group, Inc.		599,800	$	154,199
South Africa | 3.5%
Nampak, Ltd.		127,888		171,483
Netcare, Ltd.		85,819		198,771
Pioneer Foods Group, Ltd.		9,887		110,807
Sanlam, Ltd.		47,784		218,623
				699,684
Switzerland | 1.1%
Actelion, Ltd.		982		212,640
Taiwan | 2.0%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		13,728		394,680
Turkey | 0.6%
Turkiye Garanti Bankasi AS		59,013		127,578
United Kingdom | 7.6%
British American Tobacco PLC		6,673		378,886
Informa PLC		55,979		468,808
Merlin Entertainments PLC		34,335		189,719
Prudential PLC		11,968		238,715
Worldpay Group PLC		68,809		228,198
				1,504,326
United States | 57.7%
Accenture PLC, Class A		2,554		299,150
Activision Blizzard, Inc.		5,894		212,832
Advance Auto Parts, Inc.		2,501		422,969
Alphabet, Inc., Class A (a)		1,302		1,031,770
Aon PLC		4,015		447,793
Bank of America Corp.		13,600		300,560
Cabot Oil & Gas Corp.		6,900		161,184
Celgene Corp. (a)		2,852		330,119
Cisco Systems, Inc.		6,249		188,845
Comerica, Inc.		4,500		306,495
eBay, Inc. (a)		8,790		260,975
EOG Resources, Inc.		3,296		333,226
Fidelity National Information Services, Inc.		3,108		235,089
Halliburton Co.		3,229		174,657
International Flavors & Fragrances, Inc.		1,668		196,540
Kellogg Co.		2,417		178,157
Manitowoc Foodservice, Inc. (a)		16,748		323,739
Microsoft Corp.		13,324		827,953
Molson Coors Brewing Co., Class B		7,079		688,857
Morningstar, Inc.		2,980		219,209

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

Annual Report  49

Description	Shares		Fair Value
Lazard Global Strategic Equity Portfolio (concluded)
Nielsen Holdings PLC		9,807	$	411,404
Quintiles IMS Holdings, Inc. (a)		3,212		244,273
Reynolds American, Inc.		9,044		506,826
Rockwell Automation, Inc.		1,343		180,499
Snap-on, Inc.		1,245		213,231
The Charles Schwab Corp.		8,847		349,191
The Procter & Gamble Co.		4,668		392,485
Union Pacific Corp.		3,352		347,535
Valvoline, Inc.		8,500		182,750
Vertex Pharmaceuticals, Inc. (a)		2,176		160,306
Visa, Inc., Class A		5,755		449,005
Walgreens Boots Alliance, Inc.		3,709		306,957
Wells Fargo & Co.		5,400		297,594
Zoetis, Inc.		5,967		319,414
				11,501,589
Total Common Stocks (Cost $18,572,272)				19,251,877

Description	Shares		Fair Value
Short-Term Investment | 3.3%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $660,251)		660,251	$	660,251
Total Investments | 99.9% (Cost $19,232,523) (b)			$	19,912,128
Cash and Other Assets in Excess of Liabilities | 0.1%				17,955
Net Assets | 100.0%			$	19,930,083

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

50  Annual Report

Description	Shares		Fair Value
Lazard Managed Equity Volatility Portfolio
Common Stocks | 101.3%
Australia | 5.4%
AGL Energy, Ltd.		439	$	6,985
Aristocrat Leisure, Ltd.		576		6,427
Cochlear, Ltd.		88		7,769
CSL, Ltd.		464		33,519
Goodman Group REIT		1,179		6,083
Harvey Norman Holdings, Ltd.		2,391		8,861
Investa Office Fund REIT		2,242		7,647
JB Hi-Fi, Ltd.		488		9,852
Newcrest Mining, Ltd.		949		13,380
Resolute Mining, Ltd.		7,347		6,597
Sandfire Resources NL		1,574		6,390
Saracen Mineral Holdings, Ltd. (a)		7,533		5,196
Telstra Corp., Ltd.		3,406		12,518
The GPT Group REIT		2,300		8,340
				139,564
Belgium | 0.3%
Telenet Group Holding NV (a)		131		7,268
Canada | 7.7%
Alimentation Couche-Tard, Inc., Class B		191		8,661
BCE, Inc.		497		21,481
Canadian Imperial Bank of Commerce		517		42,187
Canadian National Railway Co.		103		6,932
CI Financial Corp.		784		16,858
Colliers International Group, Inc.		165		6,082
Constellation Software, Inc.		15		6,816
Corus Entertainment, Inc., B Shares		555		5,208
Dollarama, Inc.		120		8,793
Intact Financial Corp.		75		5,368
Inter Pipeline, Ltd.		310		6,843
Magna International, Inc.		159		6,904
Metro, Inc.		648		19,382
Pembina Pipeline Corp.		364		11,376
Quebecor, Inc., Class B		281		7,811
Saputo, Inc.		382		13,517
Transcontinental, Inc., Class A		376		6,214
				200,433

Description	Shares		Fair Value
Denmark | 1.4%
Danske Bank A/S		214	$	6,491
Jyske Bank A/S		328		15,608
Novo Nordisk A/S, Class B		171		6,142
Vestas Wind Systems A/S		122		7,929
				36,170
Finland | 0.4%
Orion Oyj, Class B		252		11,216
Germany | 1.8%
Deutsche Lufthansa AG		814		10,518
Infineon Technologies AG		378		6,551
MTU Aero Engines AG		169		19,498
Muenchener Rueckversicherungs AG		50		9,457
				46,024
Hong Kong | 4.3%
CLP Holdings, Ltd.		2,500		22,843
Jardine Matheson Holdings, Ltd.		500		27,581
Link Real Estate Investment Trust		2,500		16,144
The Wharf Holdings, Ltd.		3,000		19,715
Wheelock & Co., Ltd.		2,000		11,227
Xinyi Glass Holdings, Ltd.		10,000		8,135
Yue Yuen Industrial Holdings, Ltd.		2,000		7,239
				112,884
Ireland | 0.4%
Ryanair Holdings PLC Sponsored ADR (a)		111		9,242
Israel | 1.2%
Bank Hapoalim BM		1,485		8,815
Israel Discount Bank, Ltd., Class A (a)		3,874		8,042
Nice, Ltd.		87		5,968
Orbotech, Ltd. (a)		273		9,121
				31,946
Italy | 0.3%
Recordati SpA		295		8,356
Japan | 7.4%
Amano Corp.		300		5,260
Asahi Glass Co., Ltd.		1,000		6,794
Astellas Pharma, Inc.		900		12,475
Azbil Corp.		300		8,424
Daito Trust Construction Co., Ltd.		200		30,038
Daiwa House Industry Co., Ltd.		500		13,640
Heiwa Corp.		400		9,151
Japan Airlines Co., Ltd.		200		5,836

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

Annual Report  51

Description	Shares		Fair Value
Lazard Managed Equity Volatility Portfolio (continued)
Kaken Pharmaceutical Co., Ltd.		100	$	5,295
KDDI Corp.		500		12,624
Kuraray Co., Ltd.		1,100		16,460
Mitsui Chemicals, Inc.		1,000		4,480
Morinaga & Co., Ltd.		200		8,318
Nichirei Corp.		400		8,277
Nippon Telegraph & Telephone Corp.		100		4,204
Oji Holdings Corp.		2,000		8,130
Rengo Co., Ltd.		1,000		5,435
Sumitomo Osaka Cement Co., Ltd.		2,000		7,520
Teijin, Ltd.		300		6,066
Toray Industries, Inc.		1,000		8,082
West Japan Railway Co.		100		6,128
				192,637
Malta | 0.4%
Kindred Group PLC		1,183		11,093
Netherlands | 0.9%
Koninklijke Vopak NV		167		7,878
NN Group NV		448		15,171
				23,049
New Zealand | 0.3%
Fletcher Building, Ltd.		1,175		8,631
Norway | 1.0%
Aker BP ASA		718		12,836
Leroy Seafood Group ASA		123		6,847
Telenor ASA		466		6,948
				26,631
Portugal | 0.3%
Galp Energia SGPS SA		575		8,547
Singapore | 1.1%
CapitaLand Commercial Trust REIT		7,900		8,029
SATS, Ltd.		2,100		7,016
Singapore Airlines, Ltd.		2,200		14,653
				29,698
Spain | 0.4%
CaixaBank SA		2,091		6,908
Corporacion Financiera Alba SA		60		2,707
				9,615

Description	Shares		Fair Value
Sweden | 0.5%
Axfood AB		438	$	6,877
Electrolux AB, Series B		265		6,580
				13,457
Switzerland | 2.6%
Actelion, Ltd.		47		10,177
Partners Group Holding AG		33		15,466
Roche Holding AG		149		34,035
Swiss Life Holding AG		25		7,075
				66,753
United Kingdom | 6.1%
Admiral Group PLC		309		6,929
Bellway PLC		232		7,059
BT Group PLC		4,143		18,761
Centrica PLC		4,247		12,236
Cineworld Group PLC		407		2,827
Compass Group PLC		1,114		20,534
GlaxoSmithKline PLC		746		14,246
Halma PLC		485		5,346
Hargreaves Lansdown PLC		322		4,807
National Grid PLC		643		7,520
Phoenix Group Holdings		836		7,564
Provident Financial PLC		199		6,996
RELX PLC		360		6,402
Rentokil Initial PLC		4,779		13,073
Subsea 7 SA (a)		574		7,256
William Hill PLC		1,767		6,298
Wm Morrison Supermarkets PLC		3,781		10,741
				158,595
United States | 57.1%
3M Co.		215		38,393
Accenture PLC, Class A		230		26,940
Aetna, Inc.		42		5,208
Akamai Technologies, Inc. (a)		99		6,601
Alphabet, Inc., Class A (a)		8		6,340
Amdocs, Ltd.		144		8,388
American Electric Power Co., Inc.		608		38,280
American Express Co.		93		6,889
Amgen, Inc.		39		5,702
Aon PLC		141		15,726
AT&T, Inc.		1,011		42,998
Automatic Data Processing, Inc.		165		16,959
Baker Hughes, Inc.		123		7,991
Baxter International, Inc.		454		20,130
C.R. Bard, Inc.		80		17,973

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

52  Annual Report

Description	Shares		Fair Value
Lazard Managed Equity Volatility Portfolio (continued)
Cardinal Health, Inc.		98	$	7,053
Carnival Corp.		326		16,972
Carnival PLC		126		6,384
CBOE Holdings, Inc.		245		18,103
Church & Dwight Co., Inc.		169		7,468
Cirrus Logic, Inc. (a)		108		6,106
Citrix Systems, Inc. (a)		80		7,145
Colgate-Palmolive Co.		105		6,871
Darden Restaurants, Inc.		331		24,070
Dr Pepper Snapple Group, Inc.		175		15,867
DTE Energy Co.		86		8,472
Everest Re Group, Ltd.		163		35,273
Exelon Corp.		406		14,409
F5 Networks, Inc. (a)		79		11,433
FactSet Research Systems, Inc.		127		20,756
FedEx Corp.		44		8,193
Fifth Third Bancorp		374		10,087
Fiserv, Inc. (a)		130		13,816
Foot Locker, Inc.		117		8,294
General Mills, Inc.		482		29,773
Genpact, Ltd. (a)		245		5,963
GoDaddy, Inc., Class A (a)		182		6,361
Great Plains Energy, Inc.		860		23,521
Hasbro, Inc.		116		9,024
HCA Holdings, Inc. (a)		87		6,440
IDEXX Laboratories, Inc. (a)		102		11,962
Intel Corp.		250		9,068
Intuit, Inc.		158		18,108
Johnson & Johnson		328		37,789
Kimberly-Clark Corp.		197		22,482
Lear Corp.		56		7,413
Lowe’s Cos., Inc.		72		5,121
Marsh & McLennan Cos., Inc.		284		19,196
MasterCard, Inc., Class A		111		11,461
MetLife, Inc.		250		13,472
Mettler-Toledo International, Inc. (a)		29		12,138
MKS Instruments, Inc.		132		7,841
Motorola Solutions, Inc.		78		6,465
MSCI, Inc.		129		10,163
NIKE, Inc., Class B		303		15,401
Nordstrom, Inc.		193		9,250

Description	Shares		Fair Value
Northrop Grumman Corp.		40	$	9,303
O’Reilly Automotive, Inc. (a)		68		18,932
Omnicom Group, Inc.		257		21,873
Paychex, Inc.		294		17,899
PepsiCo, Inc.		353		36,934
Pinnacle West Capital Corp.		134		10,456
Pool Corp.		193		20,138
Primerica, Inc.		76		5,255
Public Service Enterprise Group, Inc.		627		27,513
Quest Diagnostics, Inc.		127		11,671
Quintiles IMS Holdings, Inc. (a)		82		6,236
Regions Financial Corp.		473		6,792
Republic Services, Inc.		351		20,025
Rockwell Collins, Inc.		174		16,140
Ross Stores, Inc.		335		21,976
S&P Global, Inc.		169		18,174
Sanderson Farms, Inc.		75		7,068
Skyworks Solutions, Inc.		90		6,719
Spirit AeroSystems Holdings, Inc., Class A		183		10,678
Starbucks Corp.		285		15,823
Sysco Corp.		743		41,140
Texas Instruments, Inc.		111		8,100
The Clorox Co.		67		8,041
The Estee Lauder Cos., Inc., Class A		70		5,354
The Kroger Co.		846		29,195
The Procter & Gamble Co.		77		6,474
The Sherwin-Williams Co.		24		6,450
The Southern Co.		737		36,253
The TJX Cos., Inc.		300		22,539
Time Warner, Inc.		174		16,796
Tyson Foods, Inc., Class A		393		24,240
UnitedHealth Group, Inc.		105		16,804
Unum Group		328		14,409
Verizon Communications, Inc.		765		40,836
Wal-Mart Stores, Inc.		263		18,179
Waste Management, Inc.		283		20,068
Waters Corp. (a)		96		12,901
WellCare Health Plans, Inc. (a)		57		7,814
Xcel Energy, Inc.		751		30,566
				1,485,466
Total Common Stocks (Cost $2,531,015)				2,637,275

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

Annual Report  53

Description	Shares		Fair Value
Lazard Managed Equity Volatility Portfolio (concluded)
Short-Term Investment | 0.5%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $13,007)		13,007	$	13,007

Description	Fair Value
Total Investments | 101.8% (Cost $2,544,022) (b)	$	2,650,282
Liabilities in Excess of Cash and Other Assets | (1.8)%		(47,396	)
Net Assets | 100.0%	$	2,602,886

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

54  Annual Report

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2016

(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	$	1,208,371,273	$	87,322,601	$	4,457,313	$	82,865,288
US Strategic Equity		78,332,813		9,230,312		458,223		8,772,089
US Small-Mid Cap Equity		194,558,449		29,993,789		4,720,175		25,273,614
International Equity		2,751,170,226		89,424,519		161,775,319		(72,350,800	)
International Equity Select		31,593,814		1,360,243		2,625,574		(1,265,331	)
International Equity Concentrated		15,517,271		700,348		603,034		97,314
International Strategic Equity		6,791,724,170		396,005,336		417,283,607		(21,278,271	)
International Equity Advantage		2,119,228		97,901		109,237		(11,336	)
International Small Cap Equity		79,902,091		6,263,846		4,339,463		1,924,383
Global Equity Select		30,056,331		2,335,067		792,308		1,542,759
Global Strategic Equity		19,263,247		1,438,718		789,837		648,881
Managed Equity Volatility		2,547,306		186,594		83,618		102,976

Security Abbreviations:

ADR	—	American Depositary Receipt
GDR	—	Global Depositary Receipt
PJSC	—	Public Joint Stock Company
REIT	—	Real Estate Investment Trust

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

Annual Report  55

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
Aerospace & Defense		1.4	%		—	%		2.0	%		—	%		0.7	%
Air Freight & Logistics		—			—			—			—			0.2
Airlines		1.1			1.2			—			—			0.2
Auto Components		3.9			3.1			5.9			3.7			2.9
Automobiles		1.6			—			2.7			—			3.0
Banks		6.5			4.5			9.1			6.4			12.9
Beverages		5.0			4.5			5.2			7.6			0.2
Biotechnology		2.6			3.3			6.3			4.3			2.9
Building Products		1.9			1.9			—			1.9			0.6
Capital Markets		0.8			1.0			—			0.5			2.5
Chemicals		1.7			—			—			1.1			3.4
Commercial Services & Suppliers		—			—			—			—			0.8
Communications Equipment		—			—			—			—			—
Construction & Engineering		2.0			1.7			3.9			—			—
Construction Materials		1.1			—			—			1.1			—
Consumer Finance		1.0			—			3.0			2.3			—
Containers & Packaging		—			0.4			—			1.8			0.1
Distributors		—			—			—			—			—
Diversified Consumer Services		—			0.7			3.3			—			—
Diversified Financial Services		—			0.7			—			1.0			1.1
Diversified Telecommunication Services		2.2			3.1			—			3.0			3.6
Electric Utilities		0.9			1.2			—			—			2.5
Electrical Equipment		—			—			—			—			3.0
Electronic Equipment, Instruments & Components		—			—			—			—			0.6
Energy Equipment & Services		—			—			—			—			0.8
Equity Real Estate Investment Trusts (REITs)		—			—			—			—			0.2
Food & Staples Retailing		1.6			1.2			—			1.5			0.8
Food Products		—			0.8			—			3.1			4.2
Gas Utilities		—			—			—			—			0.1
Health Care Equipment & Supplies		—			—			—			0.6			1.2
Health Care Providers & Services		—			—			—			2.6			—
Health Care Technology		—			—			—			—			—
Hotels, Restaurants & Leisure		—			1.7			—			3.2			2.3
Household Durables		2.2			1.2			3.9			—			2.2
Household Products		—			—			—			—			1.9
Independent Power and Renewable Electricity Producers		—			—			—			—			0.4
Industrial Conglomerates		0.3			1.3			—			0.9			2.0
Insurance		9.4			9.6			9.5			9.2			6.0
Internet & Catalog Retail		—			—			—			—			—
Internet Software & Services		—			1.6			3.1			2.2			1.0
IT Services		1.9			2.9			3.5			2.3			1.2
Leisure Products		—			—			—			1.5			—
Life Sciences Tools & Services		—			—			—			—			—
Machinery		1.6			3.7			4.1			4.2			1.4
Marine		—			—			—			—			—
Media		1.7			1.6			—			6.3			0.6
Metals & Mining		2.3			1.8			—			—			2.4

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

56  Annual Report

Lazard International Small Cap Equity Portfolio		Lazard Global Equity Select Portfolio		Lazard Global Strategic Equity Portfolio		Lazard Managed Equity Volatility Portfolio
—	%	2.1	%	—	%	2.1	%
—		—		—		0.3
1.0		—		—		1.5
1.7		1.4		1.0		0.9
—		—		—		—
—		2.5		6.5		4.0
—		7.7		6.8		2.0
—		3.1		5.9		1.9
3.6		3.2		—		0.3
5.1		4.5		2.9		4.0
—		2.5		1.9		1.6
3.1		—		—		2.3
0.6		1.6		0.9		0.7
—		—		—		—
—		—		—		0.6
0.7		1.1		—		0.5
4.3		—		0.9		0.2
—		—		—		0.8
1.0		—		—		—
4.8		—		—		0.1
2.0		—		0.7		5.7
—		—		—		6.8
1.0		2.8		0.9		0.3
2.2		—		—		1.1
2.8		2.6		0.9		0.6
0.9		—		—		1.8
1.4		0.8		2.5		5.2
2.8		1.4		1.4		3.8
—		—		—		—
—		0.5		—		2.2
2.2		—		1.0		2.1
2.0		—		—		—
2.2		1.3		2.1		4.1
2.7		—		—		0.5
—		1.4		2.0		2.0
—		—		—		—
—		1.7		0.8		2.5
1.0		6.2		6.7		6.0
—		—		0.8		—
4.7		6.0		6.5		0.7
2.1		6.5		6.1		3.9
—		—		—		0.7
1.5		2.7		1.2		1.2
9.1		2.0		2.7		—
1.0		—		—		—
4.4		—		4.1		2.4
1.0		—		—		1.2

Annual Report  57

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

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
Multiline Retail		2.3	%		1.5	%		—	%		3.5	%		0.6	%
Multi-Utilities		—			—			—			—			0.9
Oil, Gas & Consumable Fuels		7.5			4.2			5.3			7.3			3.6
Paper & Forest Products		—			—			—			—			—
Personal Products		1.3			1.6			—			—			1.1
Pharmaceuticals		5.6			4.3			—			—			7.1
Professional Services		3.6			2.7			3.2			1.4			0.6
Real Estate Management & Development		2.6			2.4			—			3.1			3.9
Road & Rail		1.3			1.3			—			—			2.3
Semiconductors & Semiconductor Equipment		2.2			4.2			5.0			2.0			0.9
Software		2.4			2.0			—			—			1.1
Specialty Retail		3.0			1.9			5.8			0.7			1.1
Technology Hardware, Storage & Peripherals		—			1.8			2.9			—			0.5
Textiles, Apparel & Luxury Goods		—			0.7			—			2.9			0.7
Thrifts & Mortgage Finance		—			—			—			—			—
Tobacco		4.1			3.6			3.0			3.3			2.1
Trading Companies & Distributors		2.9			2.7			2.0			0.7			1.9
Transportation Infrastructure		—			—			—			—			—
Water Utilities		—			0.8			—			—			—
Wireless Telecommunication Services		1.3			4.2			3.8			0.5			1.8
Subtotal		94.8			94.6			96.5			97.7			100.1
Repurchase Agreement		5.8			—			—			—			—
Short-Term Investments		—			5.2			3.7			1.8			2.2
Total Investments		100.6	%		99.8	%		100.2	%		99.5	%		102.3	%

* 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

Lazard International Small Cap Equity Portfolio			Lazard Global Equity Select Portfolio			Lazard Global Strategic Equity Portfolio			Lazard Managed Equity Volatility Portfolio
	2.5	%		1.3	%		2.1	%		1.0	%
	—			—			—			2.4
	1.1			1.0			4.9			1.8
	—			—			—			0.3
	—			0.8			—			0.2
	0.9			3.2			1.6			5.0
	4.0			4.9			2.1			0.2
	5.9			1.7			2.1			3.1
	—			1.6			1.7			0.5
	—			3.9			2.0			1.7
	3.2			2.7			5.2			1.5
	2.1			1.4			2.1			3.3
	0.8			2.8			—			—
	0.8			—			1.2			0.9
	0.8			0.5			—			—
	—			2.0			4.4			—
	2.5			1.1			—			—
	—			—			—			0.3
	—			—			—			—
	—			—			—			0.5
	97.5			94.5			96.6			101.3
	—			—			—			—
	2.8			5.1			3.3			0.5
	100.3	%		99.6	%		99.9	%		101.8	%

Annual Report  59

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2016	Lazard US Equity Concentrated Portfolio				Lazard US Strategic Equity Portfolio
ASSETS
Investments in securities, at fair value		$	1,291,236,561		$	87,104,902
Cash			—			—
Foreign currency, at fair value			—			—
Receivables for:
Dividends			631,778			52,358
Capital stock sold			9,658,503			55,459
Investments sold			37,724,385			—
Amount due from custodian (Note 3)			425			—
Deferred offering costs (Note 2(g))			6,440			—
Total assets			1,339,258,092			87,212,719
LIABILITIES
Payables for:
Management fees			795,624			33,834
Accrued distribution fees			23,724			300
Accrued professional services			29,073			26,403
Accrued custodian fees			27,148			10,086
Accrued administration fees			71,238			17,537
Capital stock redeemed			2,106,199			292,430
Investments purchased			—			—
Other accrued expenses and payables			69,333			7,843
Total liabilities			3,122,339			388,433
Net assets		$	1,336,135,753		$	86,824,286
NET ASSETS
Paid in capital		$	1,257,734,837		$	75,939,696
Undistributed (distributions in excess of) net investment income (loss)			7,157			423,346
Accumulated net realized gain (loss)			(5,255,606	)		1,352,187
Net unrealized appreciation (depreciation) on:
Investments			83,649,365			9,109,057
Foreign currency translations			—			—
Net assets		$	1,336,135,753		$	86,824,286
Institutional Shares
Net assets		$	1,230,376,752		$	72,151,420
Shares of capital stock outstanding*			86,904,349			6,202,475
Net asset value, offering and redemption price per share		$	14.16		$	11.63
Open Shares
Net assets		$	105,618,973		$	1,375,581
Shares of capital stock outstanding*			7,411,857			117,822
Net asset value, offering and redemption price per share		$	14.25		$	11.68
R6 Shares
Net assets		$	140,028		$	13,297,285
Shares of capital stock outstanding*			9,872			1,143,030
Net asset value, offering and redemption price per share		$	14.18		$	11.63
Cost of investments in securities		$	1,207,587,196		$	77,995,845
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 Small-Mid Cap Equity Portfolio		Lazard International Equity Portfolio			Lazard International Equity Select Portfolio			Lazard International Equity Concentrated Portfolio
$	219,832,063	$	2,678,819,426		$	30,328,483		$	15,614,585
	359		699			—			—
	—		303,999			131,413			18,760
	222,932		2,431,641			42,350			14,737
	495,179		7,000,433			447,847			—
	55,331		2,438,218			169,051			49
	86,687		341,419			—			—
	—		—			—			—
	220,692,551		2,691,335,835			31,119,144			15,648,131
	139,548		1,677,217			2,134			637
	6,425		226,098			444			25
	26,632		32,826			27,261			27,232
	12,493		88,081			15,805			9,088
	22,955		104,000			14,079			8,547
	550,771		22,883,563			171,869			—
	—		1,964,096			490,432			11,326
	8,297		239,500			6,130			4,346
	767,121		27,215,381			728,154			61,201
$	219,925,430	$	2,664,120,454		$	30,390,990		$	15,586,930
$	190,571,131	$	2,798,023,163		$	33,851,441		$	17,683,730
	263,682		12,983,412			336,642			(14,748	)
	2,688,199		(79,347,787	)		(3,374,119	)		(2,364,813	)
	26,402,418		(67,485,441	)		(419,875	)		283,071
	—		(52,893	)		(3,099	)		(310	)
$	219,925,430	$	2,664,120,454		$	30,390,990		$	15,586,930
$	189,592,971	$	1,511,515,550		$	28,299,142		$	15,472,827
	13,078,287		93,319,210			3,271,065			1,811,118
$	14.50	$	16.20		$	8.65		$	8.54
$	30,332,459	$	1,073,485,826		$	2,091,848		$	114,103
	2,217,138		65,536,029			241,443			13,327
$	13.68	$	16.38		$	8.66		$	8.56
	—	$	79,119,078			—			—
	—		4,890,072			—			—
	—	$	16.18			—			—
$	193,429,645	$	2,746,304,867		$	30,748,358		$	15,331,514
$	—	$	303,046		$	131,684		$	18,806

Annual Report  61

December 31, 2016	Lazard International Strategic Equity Portfolio				Lazard International Equity Advantage Portfolio
ASSETS
Investments in securities, at fair value		$	6,770,445,899		$	2,107,892
Foreign currency, at fair value			140			160
Receivables for:
Investments sold			28,539,215			—
Capital stock sold			20,555,067			—
Dividends			12,607,542			2,026
Amount due from Investment Manager (Note 3)			—			770
Amount due from custodian (Note 3)			53,626			—
Total assets			6,832,201,489			2,110,848
LIABILITIES
Due to custodian			—			—
Payables for:
Management fees			4,383,464			—
Accrued distribution fees			346,697			19
Accrued custodian fees			284,863			10,422
Accrued administration fees			218,049			7,720
Accrued professional services			42,561			27,202
Capital stock redeemed			23,192,556			—
Investments purchased			1,788,387			—
Other accrued expenses and payables			287,657			4,001
Total liabilities			30,544,234			49,364
Net assets		$	6,801,657,255		$	2,061,484
NET ASSETS
Paid in capital		$	7,248,022,203		$	2,260,967
Undistributed (distributions in excess of) net investment income (loss)			(850,287	)		(1,289	)
Accumulated net realized gain (loss)			(450,652,670	)		(193,913	)
Net unrealized appreciation (depreciation) on:
Investments			5,658,803			(4,230	)
Foreign currency translations			(520,794	)		(51	)
Net assets		$	6,801,657,255		$	2,061,484
Institutional Shares
Net assets		$	5,114,356,954		$	1,968,633
Shares of capital stock outstanding*			410,970,431			221,034
Net asset value, offering and redemption price per share		$	12.44		$	8.91
Open Shares
Net assets		$	1,591,016,076		$	92,851
Shares of capital stock outstanding*			126,809,001			10,425
Net asset value, offering and redemption price per share		$	12.55		$	8.91
R6 Shares
Net assets		$	96,284,225			—
Shares of capital stock outstanding*			7,730,925			—
Net asset value, offering and redemption price per share		$	12.45			—
Cost of investments in securities		$	6,764,787,096		$	2,112,122
Cost of foreign currency		$	207		$	160

* $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 Small Cap Equity Portfolio			Lazard Global Equity Select Portfolio			Lazard Global Strategic Equity Portfolio			Lazard Managed Equity Volatility Portfolio
$	81,826,474		$	31,599,090		$	19,912,128		$	2,650,282
	23,670			1,799			31			1,505
	—			—			57,830			—
	64,483			149,572			—			—
	168,836			24,964			13,138			3,933
	42,318			—			—			2,383
	94,332			—			—			—
	82,220,113			31,775,425			19,983,127			2,658,103
	6,807			—			—			—
	—			2,888			1,841			—
	9,783			109			24			36
	109,968			10,132			10,106			13,659
	16,882			14,136			8,782			7,714
	27,380			27,264			27,242			27,204
	469,282			3,952			—			2,591
	150			3			—			—
	7,648			5,052			5,049			4,013
	647,900			63,536			53,044			55,217
$	81,572,213		$	31,711,889		$	19,930,083		$	2,602,886
$	134,887,934		$	30,850,960		$	19,659,277		$	2,571,409
	(332,173	)		(24,815	)		(43,294	)		(3,799	)
	(55,866,711	)		(690,807	)		(365,328	)		(70,971	)
	2,889,955			1,577,448			679,605			106,260
	(6,792	)		(897	)		(177	)		(13	)
$	81,572,213		$	31,711,889		$	19,930,083		$	2,602,886
$	37,049,025		$	31,196,651		$	19,815,821		$	2,430,720
	3,668,073			2,962,172			2,065,337			243,326
$	10.10		$	10.53		$	9.59		$	9.99
$	44,523,188		$	515,238		$	114,262		$	172,166
	4,385,394			48,903			11,910			17,240
$	10.15		$	10.54		$	9.59		$	9.99
	—			—			—			—
	—			—			—			—
	—			—			—			—
$	78,936,519		$	30,021,642		$	19,232,523		$	2,544,022
$	23,823		$	1,788		$	31		$	1,494

Annual Report  63

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2016	Lazard  US Equity  Concentrated Portfolio				Lazard  US Strategic  Equity Portfolio
Investment Income (Loss)
Income
Dividends*		$	12,957,562			$	2,017,504
Expenses
Management fees (Note 3)			7,826,115				760,939
Custodian fees			152,712				69,252
Distribution fees (Open Shares)			288,826				3,493
Shareholders’ reports			55,413				6,891
Administration fees			259,004				71,856
Shareholders’ services			53,934				41,947
Directors’ fees and expenses			39,851				9,277
Professional services			61,145				40,237
Registration fees			123,590				38,771
Organization expenses (Note 2(g))			2,388				—
Amortization of offering costs (Note 2(g))			929				—
Other†			31,623				11,112
Total gross expenses			8,895,530				1,053,775
Management fees waived and expenses reimbursed			(4,921	)			(234,505	)
Administration and shareholders’ services fees waived			(2,041	)			—
Reimbursement of custodian fees (Note 3)			(425	)			—
Total net expenses			8,888,143				819,270
Net investment income (loss)			4,069,419				1,198,234
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Investments			50,690,101				1,463,194
Foreign currency transactions			—				—
Total net realized gain (loss) on investments and foreign currency transactions			50,690,101				1,463,194
Net change in unrealized appreciation (depreciation) on:
Investments			29,061,533				7,058,895
Foreign currency translations			—				—
Total net change in unrealized appreciation (depreciation) on investments and foreign currency translations			29,061,533				7,058,895
Net realized and unrealized gain (loss) on investments and foreign currency transactions			79,751,634				8,522,089
Net increase (decrease) in net assets resulting from operations		$	83,821,053			$	9,720,323
* Net of foreign withholding taxes of		$	—			$	—
† Includes interest on line of credit of		$	—			$	1,178

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

64   Annual Report

Lazard US Small-Mid Cap Equity Portfolio			Lazard International Equity Portfolio			Lazard International Equity Select Portfolio			Lazard International Equity Concentrated Portfolio
$	3,410,103		$	36,836,851		$	616,541		$	409,478
	1,513,604			11,998,666			191,609			136,875
	80,926			417,148			90,085			58,344
	83,768			1,071,323			5,467			335
	15,782			96,832			4,275			2,198
	90,477			307,077			55,224			53,114
	32,481			81,502			27,357			26,017
	12,369			44,891			5,856			5,535
	42,139			92,127			48,516			39,330
	37,283			413,023			32,030			34,265
	—			—			—			—
	—			1,837			—			—
	11,629			44,418			13,728			5,895
	1,920,458			14,568,844			474,147			361,908
	—			(27,955	)		(199,186	)		(182,998	)
	—			—			—			(18,750	)
	(86,687	)		(341,419	)		—			—
	1,833,771			14,199,470			274,961			160,160
	1,576,332			22,637,381			341,580			249,318
	4,381,638			(64,483,681	)		(1,382,504	)		(1,201,146	)
	—			(658,213	)		(5,754	)		(1,315	)
	4,381,638			(65,141,894	)		(1,388,258	)		(1,202,461	)
	24,964,850			(58,864,751	)		1,012,018			1,612,508
	—			(22,369	)		(1,172	)		(123	)
	24,964,850			(58,887,120	)		1,010,846			1,612,385
	29,346,488			(124,029,014	)		(377,412	)		409,924
$	30,922,820		$	(101,391,633	)	$	(35,832	)	$	659,242
$	4,586		$	4,194,727		$	70,663		$	34,927
$	—		$	—		$	19		$	—

Annual Report   65

For the Year Ended December 31, 2016	Lazard International Strategic Equity Portfolio				Lazard International Equity Advantage Portfolio
Investment Income (Loss)
Income
Dividends*		$	173,760,223			$	56,589
Expenses
Management fees (Note 3)			54,954,509				12,359
Distribution fees (Open Shares)			4,603,269				229
Custodian fees			1,735,775				71,739
Administration fees			882,842				50,262
Shareholders’ reports			595,501				2,011
Directors’ fees and expenses			266,025				5,068
Professional services			264,340				39,008
Shareholders’ services			216,186				23,904
Registration fees			210,858				30,197
Amortization of offering costs (Note 2(g))			383				20,526
Other†			158,945				5,710
Total gross expenses			63,888,633				261,013
Management fees waived and expenses reimbursed			(12,436	)			(224,867	)
Administration fees waived			—				(18,750	)
Reimbursement of custodian fees (Note 3)			(53,626	)			—
Total net expenses			63,822,571				17,396
Net investment income (loss)			109,937,652				39,193
Net Realized and Unrealized Gain (Loss) on Investments  and Foreign Currency Transactions
Net realized gain (loss) on:
Investments**			(432,818,420	)			(126,559	)
Foreign currency transactions and forward currency contracts			(5,627,322	)			(219	)
Total net realized gain (loss) on investments and foreign currency transactions			(438,445,742	)			(126,778	)
Net change in unrealized appreciation (depreciation) on:
Investments			(15,327,437	)			71,370
Foreign currency translations			(149,978	)			(26	)
Total net change in unrealized appreciation (depreciation) on investments and foreign currency translations			(15,477,415	)			71,344
Net realized and unrealized gain (loss) on investments and foreign currency transactions			(453,923,157	)			(55,434	)
Net increase (decrease) in net assets resulting from operations		$	(343,985,505	)		$	(16,241	)
* Net of foreign withholding taxes of		$	20,034,541			$	6,743
** Net of foreign capital gains taxes of		$	—			$	—
† Includes interest on line of credit of		$	—			$	—	(a)
(a) Amount is less than $1.

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

66   Annual Report

Lazard International Small Cap Equity Portfolio			Lazard Global Equity  Select Portfolio			Lazard  Global Strategic  Equity Portfolio			Lazard  Managed Equity  Volatility Portfolio
$	2,151,641		$	500,054		$	351,017		$	65,091
	764,409			212,820			160,786			15,181
	141,905			931			288			425
	94,867			71,411			64,891			81,792
	70,499			55,285			53,855			50,388
	13,738			3,725			2,027			1,697
	8,861			5,831			5,579			5,089
	44,696			39,577			42,178			39,022
	32,692			26,704			25,719			23,930
	35,413			45,110			35,137			31,497
	—			—			—			20,526
	11,162			6,173			5,916			5,737
	1,218,242			467,567			396,376			275,284
	—			(182,416	)		(169,069	)		(237,025	)
	—			(6,250	)		(18,750	)		(18,750	)
	(94,332	)		—			—			—
	1,123,910			278,901			208,557			19,509
	1,027,731			221,153			142,460			45,582
	5,958,411			(502,840	)		(58,043	)		(821	)
	38,403			(544	)		(10,859	)		93
	5,996,814			(503,384	)		(68,902	)		(728	)
	(11,400,183	)		992,236			603,478			115,621
	3,142			(330	)		(73	)		—
	(11,397,041	)		991,906			603,405			115,621
	(5,400,227	)		488,522			534,503			114,893
$	(4,372,496	)	$	709,675		$	676,963		$	160,475
$	230,222		$	25,339		$	20,884		$	3,298
$	2,493		$	—		$	—		$	—
$	2,277		$	10		$	47		$	10

Annual Report   67

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

	Lazard US Equity Concentrated Portfolio						Lazard  US Strategic Equity Portfolio
	Year Ended December 31,  2016			Year Ended  December 31,  2015			Year Ended  December 31,  2016			Year Ended  December 31,  2015
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	4,069,419		$	1,887,231		$	1,198,234		$	1,052,843
Net realized gain (loss) on investments and foreign currency transactions		50,690,101			30,074,234			1,463,194			11,091,133
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		29,061,533			5,395,535			7,058,895			(18,663,214	)
Net increase (decrease) in net assets resulting from operations		83,821,053			37,357,000			9,720,323			(6,519,238	)
Distributions to shareholders
From net investment income
Institutional Shares		(3,975,998	)		(1,883,815	)		(580,867	)		(948,959	)
Open Shares		(77,422	)		(3,488	)		(7,216	)		(7,796	)
R6 Shares		(271	)		—			(107,962	)		(108,054	)
From net realized gains
Institutional Shares		(53,706,434	)		(23,437,763	)		(2,332,102	)		(7,489,067	)
Open Shares		(4,859,175	)		(3,760,711	)		(38,995	)		(99,273	)
R6 Shares		(5,549	)		—			(304,611	)		(801,859	)
Net decrease in net assets resulting from distributions		(62,624,849	)		(29,085,777	)		(3,371,753	)		(9,455,008	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		648,051,424			423,064,259			10,159,922			25,689,676
Open Shares		113,049,439			121,735,683			261,466			472,441
R6 Shares		142,746			—			14,880,273			2,204,020
Net proceeds from reinvestment of distributions Institutional Shares		50,279,095			20,824,339			2,894,127			8,349,974
Open Shares		4,847,186			3,751,514			42,191			99,593
R6 Shares		5,820			—			412,573			909,913
Cost of shares redeemed
Institutional Shares		(201,827,230	)		(67,265,283	)		(56,068,764	)		(29,493,938	)
Open Shares		(129,731,839	)		(19,370,112	)		(529,777	)		(5,668,683	)
R6 Shares		(3,292	)		—			(15,717,221	)		(4,177,254	)
Net increase (decrease) in net assets from capital stock transactions		484,813,349			482,740,400			(43,665,210	)		(1,614,258	)
Redemption fees (Note 2(i))
Institutional Shares		5,164			12,106			50			807
Open Shares		6,929			4,689			—			—
R6 Shares		—			—			2,728			16
Net increase in net assets from redemption fees		12,093			16,795			2,778			823
Total increase (decrease) in net assets		506,021,646			491,028,418			(37,313,862	)		(17,587,681	)
Net assets at beginning of period		830,114,107			339,085,689			124,138,148			141,725,829
Net assets at end of period*	$	1,336,135,753		$	830,114,107		$	86,824,286		$	124,138,148
*Includes undistributed (distributions in excess of) net investment income (loss) of	$	7,157		$	(8,199	)	$	423,346		$	—
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		51,761,468			24,685,845			10,051,583			9,645,978
Shares sold		45,788,066			30,399,245			929,872			2,086,312
Shares issued to shareholders from reinvestment of distributions		3,511,078			1,524,476			252,311			770,083
Shares redeemed		(14,156,263	)		(4,848,098	)		(5,031,291	)		(2,450,790	)
Net increase (decrease)		35,142,881			27,075,623			(3,849,108	)		405,605
Shares outstanding at end of period		86,904,349			51,761,468			6,202,475			10,051,583
Open Shares
Shares outstanding at beginning of period		8,216,877			593,582			139,487			547,671
Shares sold		7,944,326			8,729,933			23,584			38,844
Shares issued to shareholders from reinvestment of distributions		336,287			273,036			3,675			9,151
Shares redeemed		(9,085,633	)		(1,379,674	)		(48,924	)		(456,179	)
Net increase (decrease)		(805,020	)		7,623,295			(21,665	)		(408,184	)
Shares outstanding at end of period		7,411,857			8,216,877			117,822			139,487
R6 Shares†
Shares outstanding at beginning of period		—			—			1,127,410			1,202,892
Shares sold		9,686			—			1,332,054			182,429
Shares issued to shareholders from reinvestment of distributions		408			—			35,909			83,995
Shares redeemed		(222	)		—			(1,352,343	)		(341,906	)
Net increase (decrease)		9,872			—			15,620			(75,482	)
Shares outstanding at end of period		9,872			—			1,143,030			1,127,410

† The inception dates for the R6 Shares were November 15, 2016 and April 1, 2015 for Lazard US Equity Concentrated and Lazard International Equity Portfolios, respectively.

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

68   Annual Report

Lazard US Small-Mid Cap Equity Portfolio						Lazard  International Equity Portfolio						Lazard International Equity Select Portfolio
Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2016			Year Ended December 31, 2015
$	1,576,332		$	182,743		$	22,637,381		$	8,980,812		$	341,580		$	263,455
	4,381,638			13,219,228			(65,141,894	)		2,871,498			(1,388,258	)		(417,276	)
	24,964,850			(19,823,465	)		(58,887,120	)		(23,619,729	)		1,010,846			(985,276	)
	30,922,820			(6,421,494	)		(101,391,633	)		(11,767,419	)		(35,832	)		(1,139,097	)
	(1,149,160	)		(17,759	)		(14,872,435	)		(4,038,236	)		(271,128	)		(245,694	)
	(115,498	)		(3,736	)		(2,352,852	)		(262,377	)		(17,608	)		(23,368	)
	—			—			(737,825	)		(355,061	)		—			—
	(4,257,321	)		(11,306,533	)		—			—			—			—
	(822,383	)		(2,473,228	)		—			—			—			—
	—			—			—			—			—			—
	(6,344,362	)		(13,801,256	)		(17,963,112	)		(4,655,674	)		(288,736	)		(269,062	)
	23,332,262			53,059,478			1,204,761,178			483,936,279			24,235,519			19,854,119
	6,849,779			30,739,628			1,131,071,739			49,294,930			560,888			398,667
	—			—			86,088,875			52,923,780			—			—
	5,343,272			10,640,543			12,229,814			3,667,632			255,048			228,299
	912,339			2,419,535			2,260,647			191,128			15,433			21,191
	—			—			737,825			355,061			—			—
	(30,998,353	)		(34,353,142	)		(369,261,739	)		(117,130,557	)		(14,669,520	)		(12,803,474	)
	(18,104,639	)		(7,864,980	)		(96,445,823	)		(26,768,386	)		(622,873	)		(1,146,116	)
	—			—			(53,911,312	)		(23,192	)		—			—
	(12,665,340	)		54,641,062			1,917,531,204			446,446,675			9,774,495			6,552,686
	460			369			63,133			17,911			—			7
	38			528			944			666			—			—
	—			—			—			—			—			—
	498			897			64,077			18,577			—			7
	11,913,616			34,419,209			1,798,240,536			430,042,159			9,449,927			5,144,534
	208,011,814			173,592,605			865,879,918			435,837,759			20,941,063			15,796,529
$	219,925,430		$	208,011,814		$	2,664,120,454		$	865,879,918		$	30,390,990		$	20,941,063
$	263,682		$	95,573		$	12,983,412		$	8,501,153		$	336,642		$	288,663
	13,311,013			11,226,207			43,106,382			22,354,987			2,131,138			1,379,602
	1,743,526			3,608,752			71,824,648			27,180,751			2,779,499			2,111,339
	387,630			830,722			734,086			218,572			27,874			26,424
	(2,363,882	)		(2,354,668	)		(22,345,906	)		(6,647,928	)		(1,667,446	)		(1,386,227	)
	(232,726	)		2,084,806			50,212,828			207,561,395			1,139,927			751,536
	13,078,287			13,311,013			93,319,210			43,106,382			3,271,065			2,131,138
	3,031,413			1,185,030			4,657,031			3,359,468			247,708			329,390
	586,680			2,245,827			66,560,474			2,760,725			62,488			43,521
	70,763			199,577			137,545			11,283			1,681			2,447
	(1,471,718	)		(599,021	)		(5,819,021	)		(1,474,445	)		(70,434	)		(127,650	)
	(814,275	)		1,846,383			60,878,998			1,297,563			(6,265	)		(81,682	)
	2,217,138			3,031,413			65,536,029			4,657,031			241,443			247,708
							2,893,076			—
							5,181,473			2,873,246
							44,477			21,172
							(3,228,954	)		(1,342	)
							1,996,996			2,893,076
							4,890,072			2,893,076

Annual Report   69

	Lazard						Lazard
	International Equity Concentrated Portfolio						International Strategic Equity Portfolio
	Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,
	2016			2015			2016			2015
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	249,318		$	148,315		$	109,937,652		$	69,054,383
Net realized gain (loss) on investments and foreign currency transactions		(1,202,461	)		(998,546	)		(438,445,742	)		4,527,378
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		1,612,385			(1,246,475	)		(15,477,415	)		(245,074,684	)
Net increase (decrease) in net assets resulting from operations		659,242			(2,096,706	)		(343,985,505	)		(171,492,923	)
Distributions to shareholders
From net investment income
Institutional Shares		(234,534	)		(181,952	)		(81,630,952	)		(51,317,972	)
Open Shares		(1,274	)		(564	)		(21,194,078	)		(13,859,242	)
R6 Shares		—			—			(1,469,761	)		(580,506	)
From net realized gains
Institutional Shares		—			—			—			(5,058,079	)
Open Shares		—			—			—			(1,850,926	)
R6 Shares		—			—			—			(74,478	)
Net decrease in net assets resulting from distributions		(235,808	)		(182,516	)		(104,294,791	)		(72,741,203	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		3,211,678			10,473,927			2,006,165,324			2,239,072,574
Open Shares		245,140			116,368			679,135,635			819,153,545
R6 Shares		—			—			30,965,801			73,470,548
Net proceeds from reinvestment of distributions
Institutional Shares		215,511			161,605			75,605,509			52,056,717
Open Shares		1,274			559			19,612,912			14,709,431
R6 Shares		—			—			1,469,761			654,983
Cost of shares redeemed
Institutional Shares		(2,124,011	)		(3,706,741	)		(1,560,801,074	)		(913,346,577	)
Open Shares		(193,637	)		(622,131	)		(778,981,579	)		(563,855,492	)
R6 Shares		—			—			(2,475,164	)		(73	)
Net increase (decrease) in net assets from capital stock transactions		1,355,955			6,423,587			470,697,125			1,721,915,656
Redemption fees (Note 2(i))
Institutional Shares		—			960			13,027			19,798
Open Shares		—			88			8,823			20,689
R6 Shares		—			—			57			—
Net increase in net assets from redemption fees		—			1,048			21,907			40,487
Total increase (decrease) in net assets		1,779,389			4,145,413			22,438,736			1,477,722,017
Net assets at beginning of period		13,807,541			9,662,128			6,779,218,519			5,301,496,502
Net assets at end of period*	$	15,586,930		$	13,807,541		$	6,801,657,255		$	6,779,218,519
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	(14,748	)	$	(28,477	)	$	(850,287	)	$	(865,823	)
(a) The Portfolio commenced operations on May 29, 2015.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		1,663,050			955,107			369,311,964			271,757,135
Shares sold		371,671			1,092,524			156,620,760			159,545,963
Shares issued to shareholders from reinvestment of distributions		25,215			19,740			6,121,904			3,949,675
Shares redeemed		(248,818	)		(404,321	)		(121,084,197	)		(65,940,809	)
Net increase (decrease)		148,068			707,943			41,658,467			97,554,829
Shares outstanding at end of period		1,811,118			1,663,050			410,970,431			369,311,964
Open Shares
Shares outstanding at beginning of period		6,633			58,704			132,713,560			113,872,041
Shares sold		28,536			12,538			52,488,760			57,654,278
Shares issued to shareholders from reinvestment of distributions		148			68			1,575,334			1,106,805
Shares redeemed		(21,990	)		(64,677	)		(59,968,653	)		(39,919,564	)
Net increase (decrease)		6,694			(52,071	)		(5,904,559	)		18,841,519
Shares outstanding at end of period		13,327			6,633			126,809,001			132,713,560
R6 Shares†
Shares outstanding at beginning of period								5,423,697			—
Shares sold								2,381,602			5,374,045
Shares issued to shareholders from reinvestment of distributions								118,913			49,658
Shares redeemed								(193,287	)		(6	)
Net increase (decrease)								2,307,228			5,423,697
Shares outstanding at end of period								7,730,925			5,423,697

† The inception date for the R6 Shares was January 19, 2015 for Lazard International Strategic Equity Portfolio.

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

70  Annual Report

Lazard								Lazard								Lazard
International Equity Advantage Portfolio								International Small Cap Equity Portfolio								Global Equity Select Portfolio
Year Ended				Period Ended				Year Ended				Year Ended				Year Ended				Year Ended
December 31,				December 31,				December 31,				December 31,				December 31,				December 31,
2016				2015 (a)				2016				2015				2016				2015
	$	39,193			$	8,414			$	1,027,731			$	725,577			$	221,153			$	68,886
		(126,778	)			(65,503	)			5,996,814				805,836				(503,384	)			(173,193	)
		71,344				(75,625	)			(11,397,041	)			5,154,435				991,906				5,044
		(16,241	)			(132,714	)			(4,372,496	)			6,685,848				709,675				(99,263	)
		(41,907	)			(23,913	)			(1,048,895	)			(328,065	)			(217,396	)			(72,003	)
		(1,729	)			(1,090	)			(1,179,813	)			(246,359	)			(2,104	)			(144	)
		—				—				—				—				—				—
		—				—				—				—				—				—
		—				—				—				—				—				—
		—				—				—				—				—				—
		(43,636	)			(25,003	)			(2,228,708	)			(574,424	)			(219,500	)			(72,147	)
		239,880				1,922,499				16,105,190				14,608,009				17,081,975				11,664,002
		15,158				100,000				17,033,388				41,435,527				297,481				100,371
		—				—				—				—				—				—
		41,907				23,913				1,017,106				326,139				217,396				72,003
		1,729				1,090				1,157,576				243,764				2,104				144
		—				—				—				—				—				—
		(52,500	)			—				(28,945,249	)			(13,625,461	)			(7,216,304	)			(3,210,527	)
		(14,598	)			—				(25,799,541	)			(7,819,231	)			(75,343	)			(8,078	)
		—				—				—				—				—				—
		231,576				2,047,502				(19,431,530	)			35,168,747				10,307,309				8,617,915
		—				—				—				5				1				198
		—				—				996				767				—				—
		—				—				—				—				—				—
		—				—				996				772				1				198
		171,699				1,889,785				(26,031,738	)			41,280,943				10,797,485				8,446,703
		1,889,785				—				107,603,951				66,323,008				20,914,404				12,467,701
	$	2,061,484			$	1,889,785			$	81,572,213			$	107,603,951			$	31,711,889			$	20,914,404
	$	(1,289	)		$	(14,851	)		$	(332,173	)		$	391,633			$	(24,815	)		$	(26,518	)
		195,042				—				4,752,936				4,628,708				1,996,624				1,188,968
		27,098				192,414				1,520,476				1,350,408				1,640,702				1,102,291
		4,708				2,628				98,839				32,549				20,606				7,045
		(5,814	)			—				(2,704,178	)			(1,258,729	)			(695,760	)			(301,680	)
		25,992				195,042				(1,084,863	)			124,228				965,548				807,656
		221,034				195,042				3,668,073				4,752,936				2,962,172				1,996,624
		10,120				—				5,102,884				1,993,264				28,081				19,499
		1,803				10,000				1,633,512				3,823,167				27,605				9,328
		194				120				111,443				24,231				199				14
		(1,692	)			—				(2,462,445	)			(737,778	)			(6,982	)			(760	)
		305				10,120				(717,490	)			3,109,620				20,822				8,582
		10,425				10,120				4,385,394				5,102,884				48,903				28,081

Annual Report  71

	Lazard								Lazard
	Global Strategic Equity Portfolio								Managed Equity Volatility Portfolio
	Year Ended				Year Ended				Year Ended				Period Ended
	December 31,				December 31,				December 31,				December 31,
	2016				2015				2016				2015 (a)
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	142,460			$	58,085			$	45,582			$	21,248
Net realized gain (loss) on investments and foreign currency transactions			(68,902	)			(284,929	)			(728	)			(64,300	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations			603,405				44,812				115,621				(9,374	)
Net increase (decrease) in net assets resulting from operations			676,963				(182,032	)			160,475				(52,426	)
Distributions to shareholders
From net investment income
Institutional Shares			(133,667	)			(80,504	)			(52,264	)			(36,368	)
Open Shares			(430	)			(643	)			(3,182	)			(2,687	)
Net decrease in net assets resulting from distributions			(134,097	)			(81,147	)			(55,446	)			(39,055	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			11,474,782				2,326,919				136,000				2,270,861
Open Shares			15,705				78,200				36,078				188,580
Net proceeds from reinvestment of distributions
Institutional Shares			133,667				80,503				52,264				36,368
Open Shares			430				643				3,182				2,687
Cost of shares redeemed
Institutional Shares			(1,590,553	)			(8,244	)			(60,203	)			(14,000	)
Open Shares			(15,138	)			(93,404	)			(50,836	)			(11,643	)
Net increase (decrease) in net assets from capital stock transactions			10,018,893				2,384,617				116,485				2,472,853
Total increase (decrease) in net assets			10,561,759				2,121,438				221,514				2,381,372
Net assets at beginning of period			9,368,324				7,246,886				2,381,372				—
Net assets at end of period*		$	19,930,083			$	9,368,324			$	2,602,886			$	2,381,372
* Includes undistributed (distributions in excess of) net investment income (loss) of		$	(43,294	)		$	(40,798	)		$	(3,799	)		$	(15,354	)
(a) The Portfolio commenced operations on May 29, 2015.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			957,062				715,249				229,926				—
Shares sold			1,261,153				234,185				14,243				227,545
Shares issued to shareholders from reinvestment of distributions			13,961				8,430				5,204				3,840
Shares redeemed			(166,839	)			(802	)			(6,047	)			(1,459	)
Net increase (decrease)			1,108,275				241,813				13,400				229,926
Shares outstanding at end of period			2,065,337				957,062				243,326				229,926
Open Shares
Shares outstanding at beginning of period			11,796				13,609				18,287				—
Shares sold			1,598				7,890				3,594				19,199
Shares issued to shareholders from reinvestment of distributions			45				67				317				284
Shares redeemed			(1,529	)			(9,770	)			(4,958	)			(1,196	)
Net increase (decrease)			114				(1,813	)			(1,047	)			18,287
Shares outstanding at end of period			11,910				11,796				17,240				18,287

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

72  Annual Report

The Lazard Funds, Inc. Financial Highlights

LAZARD US EQUITY CONCENTRATED PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	13.83		$	13.41		$	12.59		$	10.71		$	9.24
Income (loss) from investment operations:
Net investment income (loss) (a)		0.06	^		0.05			0.11			0.14			0.20
Net realized and unrealized gain (loss)		0.97			0.88			2.23			3.02			1.37
Total from investment operations		1.03			0.93			2.34			3.16			1.57
Less distributions from:
Net investment income		(0.05	)		(0.04	)		(0.09	)		(0.14	)		(0.10	)
Net realized gains		(0.65	)		(0.47	)		(1.43	)		(1.14	)		—
Total distributions		(0.70	)		(0.51	)		(1.52	)		(1.28	)		(0.10	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	14.16		$	13.83		$	13.41		$	12.59		$	10.71
Total Return (c)		7.37	%^		7.00	%		18.88	%		29.59	%		16.83	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,230,377		$	715,766		$	331,074		$	228,478		$	121,379
Ratios to average net assets:
Net expenses		0.77	%^		0.79	%		0.81	%		0.85	%		0.93	%
Gross expenses		0.77	%		0.79	%		0.81	%		0.85	%		1.28	%
Net investment income (loss)		0.39	%^		0.36	%		0.79	%		1.16	%		1.94	%
Portfolio turnover rate		84	%		74	%		63	%		108	%		116	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	13.92		$	13.50		$	12.68		$	10.77		$	9.30
Income (loss) from investment operations:
Net investment income (loss) (a)		0.02	^		0.01			0.05			0.09			0.15
Net realized and unrealized gain (loss)		0.97			0.88			2.23			3.04			1.39
Total from investment operations		0.99			0.89			2.28			3.13			1.54
Less distributions from:
Net investment income		(0.01	)		—	(b)		(0.03	)		(0.08	)		(0.07	)
Net realized gains		(0.65	)		(0.47	)		(1.43	)		(1.14	)		—
Total distributions		(0.66	)		(0.47	)		(1.46	)		(1.22	)		(0.07	)
Redemption fees		—	(b)		—	(b)		—	(b)		—			—	(b)
Net asset value, end of period	$	14.25		$	13.92		$	13.50		$	12.68		$	10.77
Total Return (c)		7.06	%^		6.67	%		18.28	%		29.21	%		16.51	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	105,619		$	114,348		$	8,011		$	2,181		$	691
Ratios to average net assets:
Net expenses		1.03	%^		1.07	%		1.25	%		1.25	%		1.19	%
Gross expenses		1.03	%		1.07	%		1.46	%		1.87	%		4.84	%
Net investment income (loss)		0.17	%^		0.08	%		0.37	%		0.74	%		1.51	%
Portfolio turnover rate		84	%		74	%		63	%		108	%		116	%

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

Annual Report  73

	For the Period
Selected data for a share of capital	11/15/16* to
stock outstanding throughout the period	12/31/16
R6 Shares
Net asset value, beginning of period		$	14.77
Income (loss) from investment operations:
Net investment income (loss) (a)			—	(b)^
Net realized and unrealized gain (loss)			0.03
Total from investment operations			0.03
Less distributions from:
Net investment income			(0.03	)
Net realized gains			(0.59	)
Total distributions			(0.62	)
Net asset value, end of period		$	14.18
Total Return (c)			0.17	%^
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	140
Ratios to average net assets (d):
Net expenses			0.77	%^
Gross expenses			15.38	%
Net investment income (loss)			0.19	%^
Portfolio turnover rate			84	%

*	The inception date for the R6 Shares was November 15, 2016.
^	Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the current period. The amount of the reimbursement was on a per share basis at less than $0.005 per share. There was no impact on the total return of the Portfolio. The impact on net expenses and net investment income (loss) ratios of the Portfolio was less than 0.005%.
(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. Return for a period of less than one year is not annualized.
(d)	Annualized for a period of less than one year except for non-recurring expenses.

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 period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	10.97		$	12.43		$	12.49		$	10.11		$	9.03
Income (loss) from investment operations:
Net investment income (loss) (a)		0.12			0.09			0.14			0.14			0.14
Net realized and unrealized gain (loss)		0.94			(0.69	)		1.73			2.72			1.17
Total from investment operations		1.06			(0.60	)		1.87			2.86			1.31
Less distributions from:
Net investment income		(0.10	)		(0.10	)		(0.13	)		(0.15	)		(0.23	)
Net realized gains		(0.30	)		(0.76	)		(1.80	)		(0.33	)		—
Total distributions		(0.40	)		(0.86	)		(1.93	)		(0.48	)		(0.23	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	11.63		$	10.97		$	12.43		$	12.49		$	10.11
Total Return (c)		9.70	%		–4.75	%		15.04	%		28.38	%		14.56	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	72,151		$	110,243		$	119,941		$	116,323		$	75,327
Ratios to average net assets:
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Gross expenses		0.94	%		0.90	%		0.90	%		0.93	%		0.99	%
Net investment income (loss)		1.08	%		0.77	%		1.05	%		1.21	%		1.40	%
Portfolio turnover rate		68	%		75	%		69	%		71	%		60	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	11.01		$	12.48		$	12.53		$	10.14		$	9.04
Income (loss) from investment operations:
Net investment income (loss) (a)		0.09			0.06			0.10			0.11			0.11
Net realized and unrealized gain (loss)		0.94			(0.71	)		1.74			2.73			1.16
Total from investment operations		1.03			(0.65	)		1.84			2.84			1.27
Less distributions from:
Net investment income		(0.06	)		(0.06	)		(0.09	)		(0.12	)		(0.17	)
Net realized gains		(0.30	)		(0.76	)		(1.80	)		(0.33	)		—
Total distributions		(0.36	)		(0.82	)		(1.89	)		(0.45	)		(0.17	)
Net asset value, end of period	$	11.68		$	11.01		$	12.48		$	12.53		$	10.14
Total Return (c)		9.46	%		–5.11	%		14.77	%		28.04	%		14.10	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,376		$	1,536		$	6,833		$	7,650		$	8,401
Ratios to average net assets:
Net expenses		1.05	%		1.05	%		1.05	%		1.05	%		1.05	%
Gross expenses		2.13	%		1.51	%		1.31	%		1.33	%		1.37	%
Net investment income (loss)		0.80	%		0.50	%		0.75	%		0.95	%		1.10	%
Portfolio turnover rate		68	%		75	%		69	%		71	%		60	%

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

Annual Report  75

							For the Period
Selected data for a share of capital	Year Ended						5/19/14* to
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14
R6 Shares
Net asset value, beginning of period	$	10.96		$	12.43		$	12.81
Income (loss) from investment operations:
Net investment income (loss) (a)		0.14			0.10			0.09
Net realized and unrealized gain (loss)		0.93			(0.71	)		1.47
Total from investment operations		1.07			(0.61	)		1.56
Less distributions from:
Net investment income		(0.10	)		(0.10	)		(0.14	)
Net realized gains		(0.30	)		(0.76	)		(1.80	)
Total distributions		(0.40	)		(0.86	)		(1.94	)
Redemption fees		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	11.63		$	10.96		$	12.43
Total Return (c)		9.81	%		–4.78	%		12.23	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	13,297		$	12,359		$	14,951
Ratios to average net assets (d):
Net expenses		0.74	%		0.70	%		0.70	%
Gross expenses		1.02	%		1.00	%		1.06	%
Net investment income (loss)		1.27	%		0.82	%		1.14	%
Portfolio turnover rate		68	%		75	%		69	%

*	The inception date for the R6 Shares was May 19, 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 or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Return for 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 SMALL- MID CAP EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	12.86		$	14.05		$	15.97		$	13.29		$	11.82
Income (loss) from investment operations:
Net investment income (loss) (a)		0.11	^		0.02			0.03			0.01			0.05
Net realized and unrealized gain (loss)		1.96			(0.34	)		1.74			4.70			1.77
Total from investment operations		2.07			(0.32	)		1.77			4.71			1.82
Less distributions from:
Net investment income		(0.09	)		—	(b)		(0.01	)		(0.01	)		(0.02	)
Net realized gains		(0.34	)		(0.87	)		(3.68	)		(2.02	)		(0.33	)
Total distributions		(0.43	)		(0.87	)		(3.69	)		(2.03	)		(0.35	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	14.50		$	12.86		$	14.05		$	15.97		$	13.29
Total Return (c)		16.28	%^		–2.14	%		11.39	%		35.81	%		15.45	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	189,593		$	171,152		$	157,742		$	353,565		$	289,855
Ratios to average net assets:
Net expenses		0.86	%^		0.91	%		0.86	%		0.86	%		0.88	%
Gross expenses		0.90	%		0.91	%		0.86	%		0.86	%		0.88	%
Net investment income (loss)		0.84	%^		0.13	%		0.17	%		0.06	%		0.41	%
Portfolio turnover rate		91	%		91	%		91	%		101	%		92	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	12.16		$	13.38		$	15.41		$	12.92		$	11.52
Income (loss) from investment operations:
Net investment income (loss) (a)		0.06	^		(0.02	)		(0.02	)		(0.04	)		—	(b)
Net realized and unrealized gain (loss)		1.85			(0.33	)		1.67			4.56			1.73
Total from investment operations		1.91			(0.35	)		1.65			4.52			1.73
Less distributions from:
Net investment income		(0.05	)		—	(b)		—			(0.01	)		—
Net realized gains		(0.34	)		(0.87	)		(3.68	)		(2.02	)		(0.33	)
Total distributions		(0.39	)		(0.87	)		(3.68	)		(2.03	)		(0.33	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	13.68		$	12.16		$	13.38		$	15.41		$	12.92
Total Return (c)		15.92	%^		–2.47	%		11.01	%		35.47	%		14.97	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	30,332		$	36,860		$	15,851		$	14,665		$	15,984
Ratios to average net assets:
Net expenses		1.16	%^		1.20	%		1.20	%		1.20	%		1.21	%
Gross expenses		1.20	%		1.20	%		1.20	%		1.20	%		1.21	%
Net investment income (loss)		0.51	%^		–0.13	%		–0.15	%		–0.27	%		0.01	%
Portfolio turnover rate		91	%		91	%		91	%		101	%		92	%

^	Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the current period. The impact on the net investment income per share amount was $0.01 per share. There was a 0.08% impact on the total return of the Institutional Shares class of the Portfolio. There was a 0.04% impact on the net expenses and net investment income (loss) ratios of the Portfolio.
(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.

Annual Report  77

LAZARD INTERNATIONAL EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	17.08		$	16.93		$	17.85		$	14.78		$	12.49
Income (loss) from investment operations:
Net investment income (loss) (a)		0.27	^		0.27			0.26			0.23			0.25
Net realized and unrealized gain (loss)		(0.98	)		—			(1.02	)		2.85			2.56
Total from investment operations		(0.71	)		0.27			(0.76	)		3.08			2.81
Less distributions from:
Net investment income		(0.17	)		(0.12	)		(0.16	)		(0.01	)		(0.52	)
Total distributions		(0.17	)		(0.12	)		(0.16	)		(0.01	)		(0.52	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	16.20		$	17.08		$	16.93		$	17.85		$	14.78
Total Return (c)		–4.18	%^		1.62	%		–4.29	%		20.84	%		22.70	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,511,516		$	736,272		$	378,488		$	185,199		$	109,088
Ratios to average net assets:
Net expenses		0.82	%^		0.86	%		0.90	%		0.95	%		1.02	%
Gross expenses		0.84	%		0.87	%		0.90	%		0.95	%		1.02	%
Net investment income (loss)		1.62	%^		1.50	%		1.46	%		1.42	%		1.85	%
Portfolio turnover rate		25	%		30	%		36	%		43	%		48	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	17.23		$	17.07		$	18.00		$	14.94		$	12.59
Income (loss) from investment operations:
Net investment income (loss) (a)		0.13	^		0.23			0.27			0.19			0.21
Net realized and unrealized gain (loss)		(0.90	)		—			(1.09	)		2.88			2.57
Total from investment operations		(0.77	)		0.23			(0.82	)		3.07			2.78
Less distributions from:
Net investment income		(0.08	)		(0.07	)		(0.11	)		(0.01	)		(0.43	)
Total distributions		(0.08	)		(0.07	)		(0.11	)		(0.01	)		(0.43	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	16.38		$	17.23		$	17.07		$	18.00		$	14.94
Total Return (c)		–4.46	%^		1.36	%		–4.57	%		20.55	%		22.30	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,073,486		$	80,221		$	57,350		$	42,370		$	25,610
Ratios to average net assets:
Net expenses		1.07	%^		1.14	%		1.17	%		1.23	%		1.32	%
Gross expenses		1.10	%		1.14	%		1.17	%		1.23	%		1.32	%
Net investment income (loss)		0.80	%^		1.29	%		1.49	%		1.18	%		1.49	%
Portfolio turnover rate		25	%		30	%		36	%		43	%		48	%

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

78  Annual Report

				For the Period
Selected data for a share of capital	Year Ended			4/1/15* to
stock outstanding throughout each period	12/31/16			12/31/15
R6 Shares
Net asset value, beginning of period	$	17.07		$	17.94
Income (loss) from investment operations:
Net investment income (loss) (a)		0.31	^		0.21
Net realized and unrealized gain (loss)		(1.02	)		(0.95	)
Total from investment operations		(0.71	)		(0.74	)
Less distributions from:
Net investment income		(0.18	)		(0.13	)
Total distributions		(0.18	)		(0.13	)
Net asset value, end of period	$	16.18		$	17.07
Total Return (c)		–4.17	%^		–4.10	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	79,119		$	49,387
Ratios to average net assets (d):
Net expenses		0.80	%^		0.80	%
Gross expenses		0.86	%		0.92	%
Net investment income (loss)		1.88	%^		1.55	%
Portfolio turnover rate		25	%		30	%

*	The inception date for the R6 Shares was April 1, 2015.
^	Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the current period. The amount of the reimbursement was on a per share basis at less than $0.005 per share. There was no impact on the total return of the Portfolio. There was a 0.02%, 0.03% and 0.02% impact on the net expenses and net investment income (loss) ratios of the Portfolio’s Institutional, Open and R6 Shares, respectively.
(a)	Net investment income (loss) has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Return for a period of less than one year is not annualized.
(d)	Annualized for a period of less than one year.

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

Annual Report  79

LAZARD INTERNATIONAL EQUITY SELECT PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	8.80		$	9.24		$	9.76		$	8.51		$	7.18
Income (loss) from investment operations:
Net investment income (loss) (a)		0.12			0.12			0.15			0.12			0.12
Net realized and unrealized gain (loss)		(0.17	)		(0.46	)		(0.58	)		1.15			1.43
Total from investment operations		(0.05	)		(0.34	)		(0.43	)		1.27			1.55
Less distributions from:
Net investment income		(0.10	)		(0.10	)		(0.11	)		(0.02	)		(0.22	)
Total distributions		(0.10	)		(0.10	)		(0.11	)		(0.02	)		(0.22	)
Redemption fees		—			—	(b)		0.02			—	(b)		—	(b)
Net asset value, end of period	$	8.65		$	8.80		$	9.24		$	9.76		$	8.51
Total Return (c)		–0.63	%		–3.63	%		–4.29	%		14.93	%		21.59	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	28,299		$	18,757		$	12,749		$	19,212		$	7,571
Ratios to average net assets:
Net expenses		1.05	%		1.06	%		1.15	%		1.15	%		1.15	%
Gross expenses		1.79	%		2.13	%		2.10	%		2.45	%		4.17	%
Net investment income (loss)		1.36	%		1.25	%		1.54	%		1.33	%		1.55	%
Portfolio turnover rate		42	%		51	%		80	%		36	%		46	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	8.82		$	9.25		$	9.79		$	8.57		$	7.20
Income (loss) from investment operations:
Net investment income (loss) (a)		0.10			0.11			0.11			0.10			0.12
Net realized and unrealized gain (loss)		(0.19	)		(0.47	)		(0.57	)		1.14			1.42
Total from investment operations		(0.09	)		(0.36	)		(0.46	)		1.24			1.54
Less distributions from:
Net investment income		(0.07	)		(0.07	)		(0.08	)		(0.02	)		(0.17	)
Total distributions		(0.07	)		(0.07	)		(0.08	)		(0.02	)		(0.17	)
Redemption fees		—			—			—	(b)		—			—	(b)
Net asset value, end of period	$	8.66		$	8.82		$	9.25		$	9.79		$	8.57
Total Return (c)		–1.03	%		–3.85	%		–4.76	%		14.48	%		21.23	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,092		$	2,184		$	3,048		$	3,444		$	2,888
Ratios to average net assets:
Net expenses		1.35	%		1.37	%		1.45	%		1.45	%		1.45	%
Gross expenses		2.59	%		2.75	%		2.70	%		3.03	%		4.77	%
Net investment income (loss)		1.13	%		1.15	%		1.11	%		1.08	%		1.55	%
Portfolio turnover rate		42	%		51	%		80	%		36	%		46	%

(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.

80  Annual Report

LAZARD INTERNATIONAL EQUITY CONCENTRATED PORTFOLIO

							For the Period
Selected data for a share of capital	Year Ended						8/29/14* to
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	8.27		$	9.53			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.14			0.10				(0.01	)
Net realized and unrealized gain (loss)		0.25			(1.25	)			(0.45	)
Total from investment operations		0.39			(1.15	)			(0.46	)
Less distributions from:
Net investment income		(0.12	)		(0.11	)			(0.01	)
Net realized gains		—			—				—	(b)
Total distributions		(0.12	)		(0.11	)			(0.01	)
Redemption fees		—			—	(b)			—
Net asset value, end of period	$	8.54		$	8.27			$	9.53
Total Return (c)		4.74	%		–12.06	%			–4.60	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	15,473		$	13,753			$	9,103
Ratios to average net assets (d):
Net expenses		1.05	%		1.06	%			1.15	%
Gross expenses		2.29	%		2.96	%			7.40	%
Net investment income (loss)		1.64	%		1.13	%			–0.41	%
Portfolio turnover rate		92	%		91	%			45	%
							For the Period
Selected data for a share of capital	Year Ended						8/29/14* to
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	8.29		$	9.53			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.11			0.06				(0.02	)
Net realized and unrealized gain (loss)		0.26			(1.22	)			(0.45	)
Total from investment operations		0.37			(1.16	)			(0.47	)
Less distributions from:
Net investment income		(0.10	)		(0.08	)			—
Net realized gains		—			—				—	(b)
Total distributions		(0.10	)		(0.08	)			—	(b)
Redemption fees		—			—	(b)			—
Net asset value, end of period	$	8.56		$	8.29			$	9.53
Total Return (c)		4.41	%		–12.18	%			–4.66	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	114		$	55			$	559
Ratios to average net assets (d):
Net expenses		1.35	%		1.39	%			1.45	%
Gross expenses		11.98	%		9.93	%			12.39	%
Net investment income (loss)		1.32	%		0.60	%			–0.55	%
Portfolio turnover rate		92	%		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. Return for 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 STRATEGIC EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	13.33		$	13.72		$	14.46		$	11.71		$	9.46
Income (loss) from investment operations:
Net investment income (loss) (a)		0.20	^		0.16			0.19			0.14			0.15
Net realized and unrealized gain (loss)		(0.89	)		(0.40	)		(0.39	)		2.79			2.21
Total from investment operations		(0.69	)		(0.24	)		(0.20	)		2.93			2.36
Less distributions from:
Net investment income		(0.20	)		(0.14	)		(0.16	)		(0.10	)		(0.11	)
Net realized gains		—			(0.01	)		(0.38	)		(0.08	)		—
Total distributions		(0.20	)		(0.15	)		(0.54	)		(0.18	)		(0.11	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	12.44		$	13.33		$	13.72		$	14.46		$	11.71
Total Return (c)		–5.17	%^		–1.70	%		–1.48	%		25.02	%		25.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	5,114,357		$	4,923,328		$	3,727,391		$	2,354,068		$	893,610
Ratios to average net assets:
Net expenses		0.81	%^		0.82	%		0.84	%		0.86	%		0.86	%
Gross expenses		0.81	%		0.82	%		0.84	%		0.86	%		0.86	%
Net investment income (loss)		1.56	%^		1.15	%		1.28	%		1.02	%		1.45	%
Portfolio turnover rate		47	%		37	%		33	%		42	%		52	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	13.44		$	13.82		$	14.57		$	11.80		$	9.53
Income (loss) from investment operations:
Net investment income (loss) (a)		0.18	^		0.13			0.16			0.10			0.09
Net realized and unrealized gain (loss)		(0.90	)		(0.40	)		(0.41	)		2.82			2.26
Total from investment operations		(0.72	)		(0.27	)		(0.25	)		2.92			2.35
Less distributions from:
Net investment income		(0.17	)		(0.10	)		(0.12	)		(0.07	)		(0.08	)
Net realized gains		—			(0.01	)		(0.38	)		(0.08	)		—
Total distributions		(0.17	)		(0.11	)		(0.50	)		(0.15	)		(0.08	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	12.55		$	13.44		$	13.82		$	14.57		$	11.80
Total Return (c)		–5.37	%^		–1.89	%		–1.78	%		24.73	%		24.74	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,591,016		$	1,783,529		$	1,574,106		$	868,730		$	315,811
Ratios to average net assets:
Net expenses		1.06	%^		1.08	%		1.09	%		1.10	%		1.13	%
Gross expenses		1.06	%		1.08	%		1.09	%		1.10	%		1.13	%
Net investment income (loss)		1.34	%^		0.94	%		1.06	%		0.78	%		0.87	%
Portfolio turnover rate		47	%		37	%		33	%		42	%		52	%

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

82  Annual Report

					For the Period
Selected data for a share of capital	Year Ended				1/19/15* to
stock outstanding throughout each period	12/31/16				12/31/15
R6 Shares
Net asset value, beginning of period		$	13.34			$	13.70
Income (loss) from investment operations:
Net investment income (loss) (a)			0.19	^			(0.03	)
Net realized and unrealized gain (loss)			(0.88	)			(0.21	)
Total from investment operations			(0.69	)			(0.24	)
Less distributions from:
Net investment income			(0.20	)			(0.11	)
Net realized gains			—				(0.01	)
Total distributions			(0.20	)			(0.12	)
Redemption fees			—	(b)			—
Net asset value, end of period		$	12.45			$	13.34
Total Return (c)			–5.17	%^			–1.73	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	96,284			$	72,362
Ratios to average net assets (d):
Net expenses			0.81	%^			1.03	%
Gross expenses			0.82	%			1.09	%
Net investment income (loss)			1.46	%^			-0.22	%
Portfolio turnover rate			47	%			37	%

*	The inception date for the R6 Shares was January 19, 2015.
^	Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the current period. The amount of the reimbursement was on a per share basis at less than $0.005 per share. There was no impact on the total return of the Portfolio. The impact on net expenses and net investment income (loss) ratios of the Portfolio was less than 0.005%.
(a)	Net investment income (loss) has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Return for 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 EQUITY ADVANTAGE PORTFOLIO

					For the Period
Selected data for a share of capital	Year Ended				5/29/15* to
stock outstanding throughout each period	12/31/16				12/31/15
Institutional Shares
Net asset value, beginning of period		$	9.21			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.18				0.04
Net realized and unrealized gain (loss)			(0.28	)			(0.70	)
Total from investment operations			(0.10	)			(0.66	)
Less distributions from:
Net investment income			(0.20	)			(0.13	)
Total distributions			(0.20	)			(0.13	)
Net asset value, end of period		$	8.91			$	9.21
Total Return (b)			–1.13	%			–6.63	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	1,969			$	1,797
Ratios to average net assets (c):
Net expenses			0.90	%			0.90	%
Gross expenses			13.12	%			14.93	%
Net investment income (loss)			2.08	%			0.77	%
Portfolio turnover rate			92	%			58	%

					For the Period
Selected data for a share of capital	Year Ended				5/29/15* to
stock outstanding throughout each period	12/31/16				12/31/15
Open Shares
Net asset value, beginning of period		$	9.21			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.15				0.03
Net realized and unrealized gain (loss)			(0.28	)			(0.71	)
Total from investment operations			(0.13	)			(0.68	)
Less distributions from:
Net investment income			(0.17	)			(0.11	)
Total distributions			(0.17	)			(0.11	)
Net asset value, end of period		$	8.91			$	9.21
Total Return (b)			–1.42	%			–6.80	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	93			$	93
Ratios to average net assets (c):
Net expenses			1.20	%			1.20	%
Gross expenses			25.85	%			30.10	%
Net investment income (loss)			1.74	%			0.47	%
Portfolio turnover rate			92	%			58	%

*	The Portfolio commenced operations on May 29, 2015.
(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. Return for 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.

84  Annual Report

LAZARD INTERNATIONAL SMALL CAP EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16				12/31/15				12/31/14				12/31/13				12/31/12
Institutional Shares
Net asset value, beginning of period		$	10.90			$	10.01			$	10.54			$	8.12			$	6.84
Income (loss) from investment operations:
Net investment income (loss) (a)			0.12	^			0.10				0.12				0.11				0.11
Net realized and unrealized gain (loss)			(0.62	)			0.87				(0.40	)			2.34				1.40
Total from investment operations			(0.50	)			0.97				(0.28	)			2.45				1.51
Less distributions from:
Net investment income			(0.30	)			(0.08	)			(0.25	)			(0.03	)			(0.23	)
Total distributions			(0.30	)			(0.08	)			(0.25	)			(0.03	)			(0.23	)
Redemption fees			—				—	(b)			—	(b)			—				—	(b)
Net asset value, end of period		$	10.10			$	10.90			$	10.01			$	10.54			$	8.12
Total Return (c)			–4.64	%^			9.71	%			–2.77	%			30.20	%			22.28	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$37,049				$51,828				$46,329				$51,508				$45,360
Ratios to average net assets:
Net expenses			0.96	%^			1.11	%			1.13	%			1.13	%			1.13	%
Gross expenses			1.06	%			1.11	%			1.15	%			1.19	%			1.18	%
Net investment income (loss)			1.14	%^			0.91	%			1.13	%			1.15	%			1.40	%
Portfolio turnover rate			63	%			48	%			48	%			58	%			48	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16				12/31/15				12/31/14				12/31/13				12/31/12
Open Shares
Net asset value, beginning of period		$	10.93			$	10.03			$	10.56			$	8.17			$	6.86
Income (loss) from investment operations:
Net investment income (loss) (a)			0.10	^			0.07				0.09				0.08				0.08
Net realized and unrealized gain (loss)			(0.63	)			0.88				(0.40	)			2.34				1.41
Total from investment operations			(0.53	)			0.95				(0.31	)			2.42				1.49
Less distributions from:
Net investment income			(0.25	)			(0.05	)			(0.22	)			(0.03	)			(0.18	)
Total distributions			(0.25	)			(0.05	)			(0.22	)			(0.03	)			(0.18	)
Redemption fees			—	(b)			—	(b)			—	(b)			—	(b)			—	(b)
Net asset value, end of period		$	10.15			$	10.93			$	10.03			$	10.56			$	8.17
Total Return (c)			–4.92	%^			9.49	%			–3.05	%			29.65	%			21.96	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$44,523				$55,776				$19,994				$19,639				$17,669
Ratios to average net assets:
Net expenses			1.21	%^			1.38	%			1.43	%			1.43	%			1.43	%
Gross expenses			1.30	%			1.38	%			1.44	%			1.48	%			1.48	%
Net investment income (loss)			0.91	%^			0.63	%			0.85	%			0.85	%			1.08	%
Portfolio turnover rate			63	%			48	%			48	%			58	%			48	%

^	Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the current period. The impact on the net investment income per share amount was $0.01 per share. There was a 0.10% and 0.09% impact on the total return of the Institutional and Open Shares classes, respectively, of the Portfolio. There was a 0.10% and 0.09% impact on the net expenses and net investment income (loss) ratios of the Portfolio’s Institutional and Open Shares, respectively.
(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  85

LAZARD GLOBAL EQUITY SELECT PORTFOLIO

Selected data for a share of capital	Year Ended												Period Ended
stock outstanding throughout each period	12/31/16				12/31/15				12/31/14				12/31/13*
Institutional Shares
Net asset value, beginning of period		$	10.33			$	10.32			$	10.02			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.09				0.04				0.07				—
Net realized and unrealized gain (loss)			0.18				0.01				0.29				0.02
Total from investment operations			0.27				0.05				0.36				0.02
Less distributions from:
Net investment income			(0.07	)			(0.04	)			(0.06	)			—
Total distributions			(0.07	)			(0.04	)			(0.06	)			—
Redemption fees			—	(b)			—	(b)			—	(b)			—
Net asset value, end of period		$	10.53			$	10.33			$	10.32			$	10.02
Total Return (c)			2.66	%			0.46	%			3.84	%			0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$31,197				$20,624				$12,266				$	1,903
Ratios to average net assets (d):
Net expenses			1.07	%			1.10	%			1.10	%			0.00	%
Gross expenses			1.75	%			2.27	%			4.62	%			91.25	%	(e)
Net investment income (loss)			0.86	%			0.41	%			0.64	%			0.00	%
Portfolio turnover rate			40	%			55	%			64	%			0	%
Selected data for a share of capital	Year Ended												Period Ended
stock outstanding throughout each period	12/31/16				12/31/15				12/31/14				12/31/13*
Open Shares
Net asset value, beginning of period			$10.34				$10.32				$10.01				$10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.06				0.01				0.04				—
Net realized and unrealized gain (loss)			0.18				0.02				0.30				0.01
Total from investment operations			0.24				0.03				0.34				0.01
Less distributions from:
Net investment income			(0.04	)			(0.01	)			(0.03	)			—
Total distributions			(0.04	)			(0.01	)			(0.03	)			—
Net asset value, end of period			$10.54				$10.34				$10.32				$10.01
Total Return (c)			2.35	%			0.24	%			3.54	%			0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)			$   515				$   290				$   201				$   100
Ratios to average net assets (d):
Net expenses			1.37	%			1.40	%			1.40	%			0.00	%
Gross expenses			5.38	%			7.42	%			13.34	%			91.25	%	(e)
Net investment income (loss)			0.56	%			0.09	%			0.35	%			0.00	%
Portfolio turnover rate			40	%			55	%			64	%			0	%

*	The Portfolio commenced operations on December 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. Return for 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.

86  Annual Report

LAZARD GLOBAL STRATEGIC EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended								For the Period 8/29/14* to
stock outstanding throughout each period	12/31/16				12/31/15				12/31/14
Institutional Shares
Net asset value, beginning of period		$	9.67			$	9.94			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.07				0.06				—	(b)
Net realized and unrealized gain (loss)			(0.08	)			(0.25	)			(0.04	)
Total from investment operations			(0.01	)			(0.19	)			(0.04	)
Less distributions from:
Net investment income			(0.07	)			(0.08	)			(0.02	)
Return of capital			—				—				—	(b)
Total distributions			(0.07	)			(0.08	)			(0.02	)
Net asset value, end of period		$	9.59			$	9.67			$	9.94
Total Return (c)			–0.15	%			–1.85	%			–0.36	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$19,816				$9,254				$7,112
Ratios to average net assets (d):
Net expenses			1.10	%			1.10	%			1.10	%
Gross expenses			2.03	%			3.83	%			7.11	%
Net investment income (loss)			0.76	%			0.63	%			–0.08	%
Portfolio turnover rate			67	%			65	%			24	%
Selected data for a share of capital	Year Ended								For the Period 8/29/14* to
stock outstanding throughout each period	12/31/16				12/31/15				12/31/14
Open Shares
Net asset value, beginning of period		$	9.67			$	9.94			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.04				0.03				(0.01	)
Net realized and unrealized gain (loss)			(0.08	)			(0.25	)			(0.04	)
Total from investment operations			(0.04	)			(0.22	)			(0.05	)
Less distributions from:
Net investment income			(0.04	)			(0.05	)			(0.01	)
Return of capital			—				—				—	(b)
Total distributions			(0.04	)			(0.05	)			(0.01	)
Net asset value, end of period		$	9.59			$	9.67			$	9.94
Total Return (c)			–0.45	%			–2.16	%			–0.46	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	114			$	114			$	135
Ratios to average net assets (d):
Net expenses			1.40	%			1.40	%			1.40	%
Gross expenses			13.31	%			14.12	%			24.52	%
Net investment income (loss)			0.39	%			0.30	%			–0.32	%
Portfolio turnover rate			67	%			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. Return for 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  87

LAZARD MANAGED EQUITY VOLATILITY PORTFOLIO

Selected data for a share of capital	Year Ended				For the Period 5/29/15* to
stock outstanding throughout each period	12/31/16				12/31/15
Institutional Shares
Net asset value, beginning of period		$	9.59			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.18				0.09
Net realized and unrealized gain (loss)			0.44				(0.33	)
Total from investment operations			0.62				(0.24	)
Less distributions from:
Net investment income			(0.22	)			(0.17	)
Total distributions			(0.22	)			(0.17	)
Net asset value, end of period		$	9.99			$	9.59
Total Return (b)			6.45	%			–2.42	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$2,431				$2,206
Ratios to average net assets (c):
Net expenses			0.75	%			0.75	%
Gross expenses			10.42	%			13.51	%
Net investment income (loss)			1.82	%			1.64	%
Portfolio turnover rate			91	%			56	%
Selected data for a share of capital	Year Ended				For the Period 5/29/15* to
stock outstanding throughout each period	12/31/16				12/31/15
Open Shares
Net asset value, beginning of period		$	9.59			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.15				0.08
Net realized and unrealized gain (loss)			0.44				(0.34	)
Total from investment operations			0.59				(0.26	)
Less distributions from:
Net investment income			(0.19	)			(0.15	)
Total distributions			(0.19	)			(0.15	)
Net asset value, end of period		$	9.99			$	9.59
Total Return (b)			6.14	%			–2.60	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	172			$	175
Ratios to average net assets (c):
Net expenses			1.05	%			1.05	%
Gross expenses			17.27	%			23.94	%
Net investment income (loss)			1.52	%			1.33	%
Portfolio turnover rate			91	%			56	%

*	The Portfolio commenced operations on May 29, 2015.
(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. Return for 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.

88  Annual Report

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2016

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-three no-load portfolios (each referred to as a “Portfolio”). This report includes only the financial statements of US Equity Concentrated, US Strategic Equity, US Small-Mid Cap Equity, 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.

The Portfolios, other than US Equity Concentrated and International Equity Concentrated Portfolios, are operated as “diversified” funds, as defined in the 1940 Act.

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).

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 CodificationTopic 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—Market values for securities listed on the New York Stock Exchange (“NYSE”), NASDAQ national market or other US or foreign exchanges or markets are generally based on the last reported sales price on the exchange or market on which the security is principally traded on each valuation date; securities not traded on the valuation date are valued at the most recent quoted bid price.

The Fund values NASDAQ-traded securities at the NASDAQ Official Closing Price, which may not be the last reported sales price in certain instances. Investments in money market funds are valued at the fund’s net asset value (“NAV”) per share. Repurchase agreements are valued at the principal amounts plus accrued interest.

Calculation of a Portfolio’s NAV may not take place contemporaneously with the determination of the prices of portfolio assets used in such calculation. Trading on Europe, Latin and South America and Far East securities exchanges and in over-the-counter markets ordinarily is completed well before the close of business on each business day in New York (i.e., a day on which the NYSE is open). In addition, European or Far Eastern securities trading generally or in a particular country or countries may not take place on all business days in New York and on which the NAV of a Portfolio is calculated.

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

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

Annual Report  89

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 non-US securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by a Portfolio. Interest income, if any, is accrued daily.

A Portfolio may be subject to taxes imposed by non-US 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.

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 tax reclaims for previously withheld taxes on dividends earned in those countries. These 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, 2016, the US Small-Mid Cap Equity and International Equity Portfolios had investments in repurchase agreements with a value of $5,098,000 and $153,374,000, respectively, as shown on the Portfolios of Investments. The value of the related collateral exceeded the value of the repurchase agreements at period end.

(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 transactions represents net foreign currency gain (loss) from disposition of foreign currencies, cur-

90  Annual Report

rency 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 translations 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, 2016, the following Portfolios had unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains as follows:

Portfolio	Expiring 2017			Expiring 2018
International Equity	$	(8,988,349	)	$	(5,103,235	)
International Equity Select		(38,626	)		(1,173,332	)
International Small Cap Equity		(50,821,243	)		(4,306,477	)

Portfolio	Short-Term*			Long-Term*
International Equity	$	(41,604,214	)	$	(18,786,630	)
International Equity Select		(1,009,114	)		(307,591	)
International Equity Concentrated		(1,948,172	)		(230,884	)
International Strategic Equity		(275,934,904	)		(147,780,692	)
International Equity Advantage		(142,429	)		(46,351	)
Global Equity Select		(665,251	)		—
Global Strategic Equity		(326,984	)		(7,620	)
Managed Equity Volatility		(70,049	)		—

*  Non-Expiring 

Under current tax law, post-October capital losses or certain late-year ordinary 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, 2016, the following Portfolios elected to defer such losses as follows:

Portfolio	Post-October Capital Loss Deferral			Late-Year Ordinary Loss Deferral
US Equity Concentrated	$	(4,471,531	)	$	—
International Strategic Equity		—			(872,435	)
International Small Cap Equity		—			(105,592	)
Global Equity Select		—			(207	)
Global Strategic Equity		—			(3,859	)
Managed Equity Volatility		—			(1,436	)

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 (2013-2015), or expected to be taken in the Portfolios’ 2016 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.

Annual Report  91

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, expiring capital loss carryovers, certain 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		$	(372	)	$	371
US Strategic Equity		2			(78,843	)		78,841
US Small-Mid Cap Equity		(1	)		(143,565	)		143,566
International Equity		—			(192,010	)		192,010
International Equity Select		(889	)		(4,865	)		5,754
International Equity Concentrated		(240	)		219			21
International Strategic Equity		—			(5,627,325	)		5,627,325
International Equity  Advantage		(16,408	)		18,005			(1,597	)
International Small Cap Equity		(2,419,026	)		477,171			1,941,855
Global Equity Select		(10,148	)		50			10,098
Global Strategic Equity		(2	)		(10,859	)		10,861
Managed Equity Volatility		(16,142	)		21,419			(5,277	)

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

	Ordinary Income				Long-Term Capital Gain
Portfolio		2016		2015		2016		2015
US Equity Concentrated	$	30,745,381	$	3,972,198	$	31,879,468	$	25,113,579
US Strategic Equity		900,038		1,179,141		2,471,715		8,275,867
US Small-Mid Cap Equity		1,407,443		818,333		4,936,919		12,982,923
International Equity		17,963,112		4,655,674		—		—
International Equity Select		288,736		269,062		—		—

	Ordinary Income				Long-Term Capital Gain
Portfolio		2016		2015		2016		2015
International Equity Concentrated	$	235,808	$	182,516	$	—	$	—
International Strategic Equity		104,294,791		65,762,209		—		6,978,994
International Equity Advantage		43,636		25,003		—		—
International Small Cap Equity		2,228,708		574,424		—		—
Global Equity Select		219,500		72,147		—		—
Global Strategic Equity		134,097		81,147		—		—
Managed Equity Volatility		55,446		39,055		—		—

At December 31, 2016, 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	$	13,599		$	(4,471,531	)	$	82,858,848
US Strategic Equity		423,347			1,689,155			8,772,088
US Small-Mid Cap Equity		263,682			3,817,003			25,273,614
International Equity		12,979,135			(74,482,428	)		(72,399,416	)
International Equity  Select		336,803			(2,528,663	)		(1,268,591	)
International Equity  Concentrated		30,548			(2,179,056	)		51,708
International Strategic Equity		(872,435	)		(423,715,596	)		(21,776,917	)
International Equity  Advantage		684			(188,780	)		(11,387	)
International Small Cap Equity		(105,592	)		(55,127,720	)		1,917,591
Global Equity Select		(207	)		(665,251	)		1,526,387
Global Strategic Equity		(3,859	)		(334,604	)		609,269
Managed Equity Volatility		(1,436	)		(70,049	)		102,962

(g) Offering and Organizational Costs—Costs incurred by the Fund in connection with the offering of shares

92  Annual Report

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. Organizational costs are expensed as incurred.

(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—Until August 15, 2016, the Portfolios imposed 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. As of August 15, 2016, redemption fees no longer apply to transactions in Portfolio shares.

(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 resulting from operations during the reporting period. Actual results could differ from those estimates.

(k) Net Asset Value—NAV per share for each class of each Portfolio is determined each day the NYSE is open for trading as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time). The Fund will not treat an intraday unscheduled disruption in NYSE trading as a closure of the NYSE, and will price its shares as of 4:00 p.m., if the particular disruption directly affects only the NYSE. 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.

3. Investment Management, Administration, Custody, 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 Small-Mid Cap Equity		0.75
International Equity		0.75
International Equity Select		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 (a)		0.80
Global Strategic Equity		0.85
Managed Equity Volatility		0.60

(a) From January 1, 2016 to June 28, 2016, 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” (as defined in Form N-1A) and extraordinary expenses, and excluding shareholder redemption fees or other transaction fees, but including the management fee stated in the Management Agreement between the Investment Manager and the Fund, on behalf of the Portfolios, exceed the following percentages of the value of the Portfolios’ average daily net assets for the respective shares:

Annual Report  93

Portfolio	Institutional Shares			Open Shares			R6 Shares			Year
US Equity Concentrated		0.95	%		1.25	%		0.90	%		2017	(a)
US Strategic Equity		0.75			1.05			0.75			2017	(b)
US Small-Mid Cap Equity		1.15			1.45			N/A			2017
International Equity		0.85			1.15			0.80			2017
International Equity Select		1.05			1.35			N/A			2017	(c)
International Equity Concentrated		1.05			1.35			N/A			2017
International Strategic Equity		1.15			1.45			1.10			2017
International Equity Advantage		0.90			1.20			N/A			2017	(d)
International  Small Cap Equity		1.13			1.43			N/A			2017
Global Equity Select		1.05			1.35			N/A			2017	(e)
Global Strategic Equity		1.10			1.40			N/A			2017
Managed Equity Volatility		0.75			1.05			N/A			2017	(d)

(a)	Agreement extends, for May 2, 2017 through April 29, 2026, at rates of 1.10%,1.40% and 1.05%, respectively.
(b)	From January 1, 2016 to April 28, 2016, percentage was 0.70% for R6 Shares.
(c)	Agreement extends, for May 2, 2017 through April 29, 2026, at rates of 1.15% and 1.45%, respectively.
(d)	Agreement is through May 29, 2017.
(e)	From January 1, 2016 to June 28, 2016, percentages were 1.10% and 1.40%, respectively.

In addition to the Fee Reduction/Waiver, through May 1, 2017, to the extent the “Total Annual Fund Operating Expenses” (as defined in Form N-1A) of the R6 Shares of a Portfolio exceed the Total Annual Fund Operating Expenses of the Portfolio’s Institutional Shares (in each case, not including management fees, custodian fees or other expenses related to the management of the Portfolio’s assets), the Investment Manager will bear the expenses of the R6 Shares in the amount of such excess.

During the year ended December 31, 2016, 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	$	179,472	$	—	$	9,796	$	5,270
International Equity Select		171,999		—		16,424		10,763
International Equity Concentrated		135,670		33,264		1,205		12,859
International Equity Advantage		11,765		191,474		594		21,034
Global Equity Select		167,360		—		3,090		11,966
Global Strategic Equity		155,451		—		980		12,638
Managed Equity Volatility		14,159		196,501		1,022		25,343

	R6 Shares
Portfolio	Management Fees Waived
US Equity Concentrated	$	4,921
US Strategic Equity		39,967
International Equity		27,955
International Strategic Equity		12,436

The aforementioned waivers and/or reimbursements are not subject to recoupment by the Investment Manager.

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, 2016, State Street waived its fees as follows:

Portfolio	Amount
International Equity Concentrated	$	18,750
International Equity Advantage		18,750
Global Equity Select		6,250
Global Strategic Equity		18,750
Managed Equity Volatility		18,750

94  Annual Report

State Street also serves as custodian for the Fund in accordance with a custodian agreement to provide certain custody services.

In December 2015, State Street announced that it had identified inconsistencies in the way in which clients were invoiced for out-of-pocket expenses from 1998 until 2015. The dollar amount difference between what was charged and what should have been charged, plus interest, will be paid back to the affected Portfolios in March 2017 as a reimbursement. This reimbursement was recognized as a change in accounting estimate and reflected as “Reimbursement of custodian fees” in the Statements of Operations. Pursuant to the expense limitations described in Note 3, certain Portfolios have experienced management fee waivers during the year ended December 31, 2016. Accordingly, the reimbursement of out-of-pocket expenses resulted in the reduction in the waiver of management fees for certain Portfolios for the year ended December 31, 2016.

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, 2016, BFDS waived $2,041 of its fee for the US Equity Concentrated Portfolio.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2016, 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: (1) an annual retainer of $190,000, (2) an additional annual fee of $20,000 to the lead Independent Director (an “Independent Director” is a Director who is not an “interested person” (as defined in the 1940 Act) of the Fund), and (3) an additional annual fee of $10,000 to the Audit Committee Chair. Effective January 1, 2017, the aggregate compensation for Independent Directors for the Lazard Fund Complex is comprised of: (1) an annual retainer of $210,000, (2) an additional annual fee of $30,000 to the lead Independent Director, and (3) an additional annual fee of $20,000 to the Audit Committee Chair. The Independent Directors may be paid additional compensation for participation on ad hoc committees or other work performed on behalf of the Board. The Independent 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. Independent Directors’ fees are allocated among the portfolios in the Lazard Fund Complex at a rate of $5,000 per portfolio with the remainder allocated based upon each portfolio’s proportionate share of combined net assets. The Statements of Operations show the Independent Directors’ fees and expenses paid by each Portfolio.

Annual Report  95

5. Securities Transactions and Transactions with Affiliates

Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2016 were as follows:

Portfolio	Purchases		Sales
US Equity Concentrated	$	1,220,943,434	$	868,449,367
US Strategic Equity		72,134,692		115,467,790
US Small-Mid Cap Equity		179,783,468		198,533,203
International Equity		2,221,081,697		376,220,225
International Equity Select		19,170,795		10,190,834
International Equity Concentrated		15,315,567		13,372,534
International Strategic Equity		3,771,399,312		3,312,183,694
International Equity Advantage		2,001,963		1,775,832
International Small Cap Equity		63,158,026		81,752,639
Global Equity Select		19,492,859		9,945,853
Global Strategic Equity		21,680,316		12,221,623
Managed Equity Volatility		2,479,418		2,297,456

For the year ended December 31, 2016, the Portfolios did not engage in any cross-trades in accordance with Rule 17a-7 under the 1940 Act, and 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, 2016, the Investment Manager owned 89.54% and 79.79% of the outstanding shares of International Equity Advantage and Managed Equity Volatility Portfolios, 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 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 0.20% per annum fee 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, 2016, the following 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	$	1,426,750	$	11,000,000		1.49	%		20
International
Equity Select		235,000		460,000		1.44			2
International
Equity Advantage		5,300		6,800		1.64			6
International
Small Cap Equity		1,726,242		19,660,000		1.49			33
Global Equity
Select		250,000		250,000		1.44			1
Global Strategic
Equity		132,778		180,000		1.43			9
Managed Equity
Volatility		13,594		47,000		1.48			17

* 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. A Portfolio’s outstanding line of credit, if any, would be categorized as Level 2 (see Note 9).

7. Non-US Securities Risk

(a) Non-US Securities Risk—A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity.

(b) Emerging Market Risk—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

96  Annual Report

continue or worsen. Investments in these countries may be subject to political, economic, legal, market and currency risks. The risks may include less protection of property rights and uncertain political and economic policies, the imposition of capital controls and/or foreign investment limitations by a country, nationalization of businesses and the imposition of sanctions by other countries, such as the US. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies.

(c) Foreign Currency Risk—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 Investment Manager does not intend to actively hedge the Portfolios’ foreign currency exposure.

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 meas-

urement 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 assets and liabilities

• 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 transfers 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  97

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2016:

Description	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2016
US Equity Concentrated Portfolio
Common Stocks*	$	1,195,646,236		$	—	$	—	$	1,195,646,236
Short-Term Investment		95,590,325					—		95,590,325
Total	$	1,291,236,561		$	—	$	—	$	1,291,236,561
US Strategic Equity Portfolio
Common Stocks*	$	84,918,289		$	—	$	—	$	84,918,289
Short-Term Investment		2,186,613					—		2,186,613
Total	$	87,104,902		$	—	$	—	$	87,104,902
US Small-Mid Cap Equity Portfolio
Common Stocks*	$	214,734,063		$	—	$	—	$	214,734,063
Repurchase Agreement		—			5,098,000		—		5,098,000
Total	$	214,734,063		$	5,098,000	$	—	$	219,832,063
International Equity Portfolio
Common Stocks*
Australia	$	—		$	99,707,583	$	—	$	99,707,583
Belgium		—			91,100,353		—		91,100,353
Brazil		—			29,392,682		—		29,392,682
Canada		154,496,521			—		—		154,496,521
Denmark		—			29,228,556		—		29,228,556
Finland		—			62,335,669		—		62,335,669
France		—			273,483,939		—		273,483,939
Germany		—			63,665,874		—		63,665,874
Ireland		30,052,614			99,238,036		—		129,290,650
Italy		—			20,360,314		—		20,360,314
Japan		—			477,653,173		—		477,653,173
Luxembourg		—			17,539,529		—		17,539,529
Netherlands		—			142,889,917		—		142,889,917
Norway		—			68,885,977		—		68,885,977
Philippines		—			8,220,615		—		8,220,615
Spain		—			25,003,341		—		25,003,341
Sweden		—			94,210,742		—		94,210,742
Switzerland		100,890,974			59,205,895		—		160,096,869
Turkey		—			16,389,789		—		16,389,789
United Kingdom		—			363,930,386		—		363,930,386
United States		89,707,960			—		—		89,707,960
Other		107,854,987			—		—		107,854,987
Repurchase Agreement		—			153,374,000		—		153,374,000
Total	$	483,003,056		$	2,195,816,370	$	—	$	2,678,819,426

98  Annual Report

Description	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2016
International Equity Select Portfolio
Common Stocks*
Australia	$	—		$	553,831	$	—	$	553,831
Belgium		—			1,042,244		—		1,042,244
Brazil		—			1,215,463		—		1,215,463
Canada		792,697			—		—		792,697
China		—			492,685		—		492,685
Denmark		—			299,378		—		299,378
Finland		—			635,611		—		635,611
France		—			1,411,196		—		1,411,196
Germany		—			1,145,466		—		1,145,466
Ireland		361,931			675,178		—		1,037,109
Italy		—			217,835		—		217,835
Japan		—			4,481,791		—		4,481,791
Netherlands		—			995,156		—		995,156
Norway		—			676,374		—		676,374
Philippines		—			188,186		—		188,186
South Africa		—			643,045		—		643,045
South Korea		—			554,084		—		554,084
Spain		—			363,154		—		363,154
Sweden		—			987,756		—		987,756
Switzerland		1,543,604			503,844		—		2,047,448
Taiwan		—			1,278,718		—		1,278,718
Thailand		—			201,059		—		201,059
Turkey		—			488,460		—		488,460
United Kingdom		—			4,726,409		—		4,726,409
United States		1,224,545			—		—		1,224,545
Other		1,056,800			—		—		1,056,800
Short-Term Investment		1,571,983			—		—		1,571,983
Total	$	6,551,560		$	23,776,923	$	—	$	30,328,483
International Equity Concentrated Portfolio
Common Stocks*
Belgium	$	—		$	802,930	$	—	$	802,930
Brazil		—			805,559		—		805,559
Canada		1,494,859			—		—		1,494,859
China		—			482,976		—		482,976
France		—			2,389,202		—		2,389,202
Ireland		—			982,648		—		982,648
Japan		—			2,430,151		—		2,430,151
Netherlands		—			491,320		—		491,320
South Korea		—			455,758		—		455,758
Turkey		—			312,005		—		312,005
United Kingdom		—			2,668,834		—		2,668,834
United States		935,959			—		—		935,959
Other		782,977			—		—		782,977
Short-Term Investment		579,407			—		—		579,407
Total	$	3,793,202		$	11,821,383	$	—	$	15,614,585

Annual Report  99

Description	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2016
International Strategic Equity Portfolio
Common Stocks*
Australia	$	—		$	273,626,691	$	—	$	273,626,691
Belgium		—			168,011,572		—		168,011,572
Canada		301,797,996			—		—		301,797,996
China		—			136,956,085		—		136,956,085
Denmark		—			173,552,633		—		173,552,633
Finland		—			300,724,450		—		300,724,450
France		—			559,317,376		—		559,317,376
Germany		—			177,481,454		—		177,481,454
Indonesia		—			26,044,411		—		26,044,411
Ireland		—			468,822,313		—		468,822,313
Italy		—			35,379,933		—		35,379,933
Japan		—			1,097,697,239		—		1,097,697,239
Netherlands		—			94,081,305		—		94,081,305
New Zealand		—			70,532,755		—		70,532,755
Norway		—			292,687,503		—		292,687,503
Philippines		—			127,957,674		—		127,957,674
Singapore		—			69,399,941		—		69,399,941
South Africa		—			95,187,126		—		95,187,126
Sweden		—			219,260,052		—		219,260,052
Taiwan		—			133,706,489		—		133,706,489
Thailand		—			34,665,899		—		34,665,899
Turkey		—			86,095,642		—		86,095,642
United Kingdom		43,138,727			1,226,764,186		—		1,269,902,913
United States		228,649,061			—		—		228,649,061
Other		205,804,935			—		—		205,804,935
Short-Term Investment		123,102,451			—		—		123,102,451
Total	$	902,493,170		$	5,867,952,729	$	—	$	6,770,445,899
International Equity Advantage Portfolio
Common Stocks*
Australia	$	—		$	157,951	$	—	$	157,951
Belgium		—			4,103		—		4,103
Denmark		—			31,656		—		31,656
Faeroe Islands		—			4,724		—		4,724
Finland		—			19,712		—		19,712
France		3,819			211,230		—		215,049
Germany		—			158,800		—		158,800
Hong Kong		—			78,989		—		78,989
Ireland		13,398			15,943		—		29,341
Italy		—			15,173		—		15,173
Japan		28,027			478,023		—		506,050
Jersey		—			3,746		—		3,746
Netherlands		—			55,710		—		55,710
Norway		—			26,591		—		26,591
Portugal		—			23,602		—		23,602
Singapore		—			24,040		—		24,040
Spain		—			85,381		—		85,381
Sweden		—			40,394		—		40,394
Switzerland		180,569			14,602		—		195,171
United Kingdom		—			363,562		—		363,562
Other		21,766			—		—		21,766
Short-Term Investment		46,381			—		—		46,381
Total	$	293,960		$	1,813,932	$	—	$	2,107,892

100  Annual Report

Description	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2016
International Small Cap Equity Portfolio
Common Stocks*
Australia	$	—		$	2,870,606	$	—	$	2,870,606
Belgium		—			1,203,055		—		1,203,055
Canada		5,918,297			—		—		5,918,297
Cyprus		—			945,821		—		945,821
Denmark		—			1,637,266		—		1,637,266
Germany		—			6,708,013		—		6,708,013
India		—			664,055		—		664,055
Ireland		—			2,184,795		—		2,184,795
Italy		—			2,558,528		—		2,558,528
Japan		—			21,611,767		—		21,611,767
Luxembourg		—			956,287		—		956,287
Netherlands		—			1,679,146		—		1,679,146
New Zealand		—			913,103		—		913,103
Norway		—			974,410		—		974,410
Portugal		—			801,765		—		801,765
Singapore		—			798,557		—		798,557
Spain		—			729,262		—		729,262
Sweden		—			5,657,267		—		5,657,267
Taiwan		—			2,699,300		—		2,699,300
United Arab Emirates		—			902,396		—		902,396
United Kingdom		—			13,439,720		—		13,439,720
United States		696,232			671,701		—		1,367,933
Other		2,291,511			—		—		2,291,511
Short-Term Investment		2,313,614			—		—		2,313,614
Total	$	11,219,654		$	70,606,820	$	—	$	81,826,474
Global Equity Select Portfolio
Common Stocks*
Belgium	$	—		$	699,435	$	—	$	699,435
Canada		509,796			—		—		509,796
China		—			422,787		—		422,787
Denmark		—			591,275		—		591,275
Finland		—			593,443		—		593,443
Germany		—			896,574		—		896,574
Hong Kong		—			298,533		—		298,533
Ireland		—			636,361		—		636,361
Japan		—			1,732,603		—		1,732,603
Netherlands		302,851			532,438		—		835,289
South Africa		—			215,063		—		215,063
Sweden		—			581,542		—		581,542
United Kingdom		148,632			2,816,717		—		2,965,349
United States		18,122,831			—		—		18,122,831
Other		872,474			—		—		872,474
Short-Term Investment		1,625,735			—		—		1,625,735
Total	$	21,582,319		$	10,016,771	$	—	$	31,599,090

Annual Report  101

Description	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2016
Global Strategic Equity Portfolio
Common Stocks*
Australia	$	—		$	305,653	$	—	$	305,653
Belgium		—			329,072		—		329,072
Denmark		—			327,253		—		327,253
Finland		—			428,391		—		428,391
France		—			595,564		—		595,564
Greece		—			238,539		—		238,539
Indonesia		—			102,405		—		102,405
Ireland		—			465,116		—		465,116
Israel		—			262,997		—		262,997
Japan		—			1,085,421		—		1,085,421
New Zealand		—			342,546		—		342,546
Norway		—			174,224		—		174,224
Philippines		—			154,199		—		154,199
South Africa		—			699,684		—		699,684
Turkey		—			127,578		—		127,578
United Kingdom		—			1,504,326		—		1,504,326
United States		11,501,589			—		—		11,501,589
Other		607,320			—		—		607,320
Short-Term Investment		660,251			—		—		660,251
Total	$	12,769,160		$	7,142,968	$	—	$	19,912,128
Managed Equity Volatility Portfolio
Common Stocks*
Australia	$	—		$	139,564	$	—	$	139,564
Belgium		—			7,268		—		7,268
Canada		200,433			—		—		200,433
Denmark		—			36,170		—		36,170
Finland		—			11,216		—		11,216
Germany		—			46,024		—		46,024
Hong Kong		—			112,884		—		112,884
Israel		9,121			22,825		—		31,946
Italy		—			8,356		—		8,356
Japan		—			192,637		—		192,637
Malta		—			11,093		—		11,093
Netherlands		—			23,049		—		23,049
New Zealand		—			8,631		—		8,631
Norway		—			26,631		—		26,631
Portugal		—			8,547		—		8,547
Singapore		—			29,698		—		29,698
Spain		—			9,615		—		9,615
Sweden		—			13,457		—		13,457
United Kingdom		—			158,595		—		158,595
United States		1,479,082			6,384		—		1,485,466
Other		75,995			—		—		75,995
Short-Term Investment		13,007			—		—		13,007
Total	$	1,777,638		$	872,644	$	—	$	2,650,282

* Please refer to Portfolios of Investments (pages 30 through 54) and Notes to Portfolios of Investments (pages 56 through 59) for portfolio holdings by country and industry.

102  Annual Report

In connection with the implementation of fair value pricing procedures with respect to non-US securities (see Note 2(a)), certain equity securities 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 procedures and would revert to Level 1 when the fair value pricing procedures are no longer used. 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.

During the year ended December 31, 2016, securities valued at the following amounts were transferred from Level 1 to Level 2:

Portfolio	Amount
International Equity Select		$165,159

During the year ended December 31, 2016, securities valued at the following amounts were transferred from Level 2 to Level 1:

Portfolio	Amount
International Equity Select	$	1,267,989
International Strategic Equity		192,887,297
International Equity Advantage		149,222
International Small Cap Equity		1,323,386
Global Equity Select		338,815
Global Strategic Equity		158,651
Managed Equity Volatility		25,071

There were no other transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 2016.

For further information regarding security characteristics see Portfolios of Investments.

10. Recent Accounting Pronouncements

In October 2016, the U.S. Securities and Exchange Commission (the “SEC”) adopted new rules and amended existing rules (together, “final rules”) intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017. Management is currently evaluating the impact that the adoption of the amendments to Regulation S-X will have on the Fund’s financial statements and related disclosures.

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  103

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 Small-Mid Cap Equity 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 Small-Mid Cap Equity 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”), twelve of the portfolios constituting The Lazard Funds, Inc. (the “Fund”) as of December 31, 2016, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. 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, 2016, 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 Small-Mid Cap Equity 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, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the three 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 27, 2017

104  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 (63)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012)
		University of California, Berkeley School of Law, Lecturer (Spring 2017)
		Cornell Law School, Visiting Professor of Practice (2015 – 2016); previously, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)
Kenneth S. Davidson (71)	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 (54)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
		TIAA-CREF Funds (68 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 (45)	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. (72)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		Resource Americas, Inc., a real estate asset management company, Director (2016 – present)
		O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (69)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

Annual Report  105

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 (56)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (56)	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, 2017, 40 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.

106  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 (44)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Christopher Snively (32)	Chief Financial Officer (March 2016)	Senior Vice President of the Investment Manager (since November 2015)
		Assurance Manager at PricewaterhouseCoopers LLP (2008 – November 2015)
Stephen St. Clair (58)	Treasurer (May 2003)	Vice President of the Investment Manager
Mark R. Anderson (46)	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 (41)	Assistant Secretary (February 2009)	Director (since February 2016, previously Senior Vice President), and Director of Legal Affairs (since July 2015) of the Investment Manager
Shari L. Soloway (35)	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)
Cesar A. Trelles (42)	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  107

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

Tax Information

Year Ended December 31, 2016

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2016:

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

Portfolio	Percentage
US Equity Concentrated	41.05	%
US Strategic Equity	100.00
US Small-Mid Cap Equity	100.00
International Equity	100.00
International Equity Select	100.00
International Equity Concentrated	100.00
International Strategic Equity	100.00
International Equity Advantage	100.00
International Small Cap Equity	100.00
Global Equity Select	100.00
Global Strategic Equity	100.00
Managed Equity Volatility	100.00

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	40.80	%
US Strategic Equity	99.34
US Small-Mid Cap Equity	86.31
International Equity	—
International Equity Select	—
International Equity Concentrated	—
International Strategic Equity	—
International Equity Advantage	—
International Small Cap Equity	—
Global Equity Select	90.14
Global Strategic Equity	97.28
Managed Equity Volatility	49.56

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

Proxy Voting

A description of the policies and procedures used to determine how proxies relating to Fund portfolio securities are voted is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on 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.

108  Annual Report

NOTES

Annual Report  109

NOTES

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
LZDPS020

Lazard Funds Annual Report

December 31, 2016

Fixed Income Funds

Lazard US Corporate Income Portfolio

Lazard US Short Duration Fixed Income Portfolio

Lazard Global Fixed Income Portfolio

PRIVACY NOTICE

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 and credit history • Assets and income • Account transactions 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 and applicable state laws. These measures include computer safeguards and secured files and buildings.
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 may 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.

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
19	Lazard US Short Duration Fixed Income Portfolio
21	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
36	Notes to Financial Statements
47	Report of Independent Registered Public Accounting Firm
48	Board of Directors and Officers Information
51	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 each Portfolio’s summary prospectus contain the investment objectives, risks, charges, expenses and other information about each Portfolio of the Fund, which are not detailed in this report.

Distributed by Lazard Asset Management Securities LLC.

Annual Report  1

The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

In 2016, global equity markets generally performed well despite significant bouts of volatility caused by unexpected economic and political events. In Europe, returns were muted as the United Kingdom’s June vote to leave the European Union weighed on the pound sterling and UK assets. In December, Prime Minister Matteo Renzi’s resounding defeat in the Italian referendum on constitutional reform and his subsequent resignation added to uncertainty in the region. A surprise outcome to the US presidential election caused US stocks to rally sharply at year-end in anticipation of lower corporate taxes and regulatory reform. Meanwhile, emerging markets equities snapped their negative streak and ended the year firmly higher, primarily as the price of oil and other commodities stabilized.

In the first half of 2016, yields across most global bond markets fell due to uneven news flow and seesawing risk sentiment. However, yields increased toward the end of the year in response to inflationary pressures, higher oil prices, and strong economic data. The US Federal Reserve (Fed) delivered its long-awaited rate hike in December, and is widely expected to deliver additional hikes in 2017. In contrast, European monetary policy is expected to remain loose, based on announced asset purchase plans from the European Central Bank.

The US dollar continued to strengthen against other major currencies in 2016. The Japanese yen appreciated even after the Bank of Japan adopted a negative interest rate policy early in the year, but weakened considerably in November and December due to Japan’s widening interest rate differential with the United States. Over the year, the biggest currency laggards included the Mexican peso, which was hurt by Donald Trump’s election victory, and the Turkish lira, which was weighed down by a surprise coup attempt in Turkey.

At Lazard Asset Management, we strive to identify ways to help our clients achieve their investment goals. As such, we launched two mutual funds in 2016 with characteristics that we believe can help investors navigate a changing financial landscape.

As always, we appreciate your continued confidence in our investment management capabilities and we 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

Over the course of the year, the US high yield market experienced strong demand, pushing prices up and leading to returns well in excess of the coupon earned. A growing US economy, low global yields, and a rebound in key commodity prices all contributed to the market’s strong return this year. The strongest returns came from the riskiest subsectors of the market, especially those that were among the poorest performers last year. Prices for CCC rated and distressed securities as well as beaten down commodity-related industries such as energy, metals/mining, and steel all generated outsized returns. The high yield market also benefitted from significant spread narrowing despite only a modest year-over-year increase in rates across the Treasury curve. The Bank of America Merrill Lynch BB-B US Cash Pay Non-Distressed High Yield^® Index (the “Cash Pay Index”) returned 12.74%, significantly outperforming the investment-grade corporate sector that returned 5.96%, and the Bloomberg Barclays Capital US Aggregate Bond^® Index, which returned 2.65%, as well as intermediate Treasuries which returned 1.34%. Equities also underperformed, with the S&P 500^® Index returning 11.93%.

High yield market spreads narrowed by an impressive 272 basis points (bps) during the year to 414 bps over Treasuries. The CCC rated sector narrowed significantly by 715 bps to 932 bps and the B rated sector narrowed by 307 bps to 410 bps. The BB rated sector, which narrowed the least of the rating sectors at 153 bps, now stands at 271 bps over Treasuries. The yield on the Bank of America Merrill Lynch 5 to 7 year US Treasury^® Index increased 17 bps, ending at 2.12% on December 31, 2016. For the year, high-yield mutual fund market flows were positive, totaling about $8.2 billion. This compares very favorably to the $16.6 billion that was withdrawn in 2015. New US high yield bond issuance was lower at $286 billion for the year versus $293 billion in 2015. The domestic high yield market capitalization is now approximately $1.31 trillion. The Standard & Poor’s US speculative-grade trailing 12-month issuer default rate was 5.1% as of December 31, 2016, up from 2.8% in December 2015.

US Short Duration Fixed Income

The post-US presidential election world is a new paradigm, and we believe investors need to rethink the risk exposure in their fixed income portfolios. A key part of this process is to consider the typical core reasons for a US fixed income allocation: capital preservation, diversification of equity exposure, and incremental income.

The cyclical bottom in the yield trade likely occurred on July 8, 2016, when Brexit fears drove the 10-year US Treasury yield down to a low of 1.36%. Since then, the collapse has been extraordinary as rates have nearly doubled to 2.6%. We have long been waiting for US monetary policy to normalize and start reflecting the underlying fundamentals of the US economy—we are finally getting it. Concurrently, we are also seeing a handoff from ultra-easy accommodative, and some may say oppressive, monetary policy to the anticipation of a more pro-growth fiscal policy focused on tax reform and deregulation. This combination has boosted equity markets and sapped demand for the US Treasury safety trade. While some investors appear unnerved by the rapid move in rates, we find it notable that rates have mostly just unwound the 2016 fear-induced rally and are only slightly higher than they were at the end of 2015.

While many investors fear that the eventual Fed rate hikes could cause another market debacle, we have a different view. We believe healthier market underpinnings and an economy that is gradually improving (but still on the mend) may cause a more benign reaction than many fear. Rather than focusing on the timing of an interest rate rise, we are more concerned about the illiquidity we have been observing in the fixed income market, and the potential opportunities that can arise from this dynamic.

Global Fixed Income

In the first half of 2016, yields across most global bond markets fell due to uneven news flow and seesawing risk sentiment. Market trends that began during the second half of 2015 carried over into 2016. A fresh decline in oil prices and equity markets worldwide further intensified investor risk aversion and buoyed many core global government bond markets

Annual Report  3

during the first quarter of the year. The decision from the Bank of Japan (BoJ) to follow in the footsteps of the European Central Bank (ECB) by introducing more monetary easing via a negative deposit rate caused the entire Japanese yield curve to rally dramatically at the end of January and into February. March was a period of strong risk sentiment and “reversion to the mean” for many markets. In contrast to the prior two months, core government bond markets were relatively stable, while bonds in smaller and emerging markets performed strongly.

Volatility dominated global bond markets during the second quarter as investors traded largely on risk assessments of macro events. Risk appetites remained fairly strong as prices of oil and other commodities rose significantly. Fed Chair Janet Yellen was more hawkish about US interest rates in May, warning that improving US economic conditions may warrant further monetary tightening toward the middle of the year. However, extremely soft US payroll data for May and the affirmative vote on June 23 by the British public to leave the European Union (Brexit) unnerved global financial markets and forced Yellen to resume a more dovish posture in June.

Interest rates in major bond markets rose modestly for most of July and August, reversing a sizable part of the late-June bond rally in Brexit’s aftermath. However, global bonds ended the third quarter with a small rally following the Fed’s September decision to keep US interest rates on hold, combined with new worries over the European banking system. UK gilts initially strengthened following the unexpected quantitative easing (QE) program announced by the Bank of England in August, but they were one of the worst-performing bond markets in September as UK economic data was robust. Meanwhile, the policy actions taken by the BoJ and the ECB both underwhelmed expectations, especially in terms of new monetary stimulus, which we believe has been damaging to bank profits and pension fund balance sheets in Japan and Europe.

Global bond yields moved higher during the fourth quarter, in response to a combination of inflationary pressures, higher oil prices, and generally strong eco-

nomic data. The Fed delivered its long-awaited rate hike in December, and investors took note of the “Fed dots,” which indicated the possibility of three additional rate hikes in 2017. (Notably, this estimate has rarely been realized, and these expectations are already discounted to some degree in market pricing.) Potential Trump/Republican policies regarding fiscal spending, trade tariffs, and protectionism stoked inflationary pressures; thus, the US yield curve steepened during the quarter. Yields for 10-year and 30-year US Treasury bonds ended the year at 2.45% and 3.07%, respectively. These were over 75 bps higher than their September 30 levels, but were only slightly higher than their 2015 year-end levels. The US market bore the brunt of the backup in rates, while euro zone and Japanese bonds only retraced roughly one-half of their rallies for the year, and the 10-year German and Japanese government bond yields ended the year in barely positive territory. In other parts of the world, bond movements were mixed. Underperformers included Mexico (a flashpoint for US politics/Donald Trump’s election win), Singapore, and Australia.

Credit markets had a poor start to the year as spreads widened across most sectors. Global stagnation fears and concerns over central banks’ ability to prop up growth weighed heavily on these markets in January. By March, credit sectors’ performance reversed dramatically, and high yield corporate bonds outperformed investment-grade corporates, which was a trend that continued almost without interruption as flows were supportive throughout the year. Within the high yield market, the lowest-rated CCC securities outperformed higher quality BB-rated bonds by a wide margin. This pattern was evident across the entire credit spectrum. Investment grade corporate bond spreads narrowed on average to 129 bps by the end of December. This was in contrast to mid-February, when credit spreads were at their widest for the year at 221 bps.

Early in the year, volatility remained elevated in currency markets and the dispersion of returns was quite wide, in line with global macroeconomic and domestic events. The Japanese yen appreciated sharply in February, which may have seemed counterintuitive given the BoJ’s surprise move to negative rates; how-

4  Annual Report

ever, the yen strengthened further, in step with the “flight to quality” Treasury rally. Yen strength was exacerbated by technical factors as short-yen market positioning was painfully reversed.

At year-end, currency markets were extremely active but performance was mixed as volatility increased following the unexpected election result, which favored the US dollar given the more sizable backup in US interest rates. The Japanese yen reversed its strength earlier in the year, weakening considerably in November and December due to Japan’s widening interest differential with the United States. Over the full year, the biggest currency laggards included the Mexican peso (which was hurt by Trump’s election victory), the Turkish lira (weighed down by a surprise coup attempt in Turkey), and the British pound (hurt by the affirmative Brexit vote). We found it interesting that this rate differentials theme overrode what should have been a much weaker dollar, related to higher oil prices that pierced through and stabilized above the psychologically important level of $50 a barrel, based on the surprising agreement by the Organization of the Petroleum Exporting Countries to freeze/cut back on oil production.

Lazard US Corporate Income Portfolio

For the year ended December 31, 2016, the Lazard US Corporate Income Portfolio’s Institutional Shares posted a total return of 10.09%, while Open Shares posted a total return of 9.74%, as compared with the 12.74% return for the Cash Pay Index. The R6 Shares posted a total return of 1.37% for the period since inception on November 3, 2016 through December 31, 2016, as compared with the 1.39% return for the Cash Pay Index for the same period.

The Portfolio underperformed during the year due, in part, to its higher quality focus relative to the Cash Pay Index. The Portfolio’s overweight position in BB rated securities and underweight in B rated securities detracted from performance. In addition, the Portfolio’s shorter maturity structure relative to the Cash Pay Index, hurt performance. The Portfolio’s effective duration was approximately 3.9 years as compared to the Cash Pay Index duration of 4.4 years. Performance was helped by underweight positions in the banking,

healthcare, and insurance sectors. Performance was hurt by overweight positions in energy and media. To a lesser extent, an underweight position in the telecommunications sector also detracted from performance. Throughout the market volatility of the past few years, we have maintained our credit discipline. As of December 31, 2016, approximately 72% of the holdings by market value were rated BB- or better by Standard & Poor’s and 87% were rated B+ or better.

Lazard US Short Duration Fixed Income Portfolio

For the year ended December 31, 2016, the Lazard US Short Duration Fixed Income Portfolio’s Institutional Shares posted a total return of 1.00%, while Open Shares posted a total return of 0.70%, as compared with the 0.88% return for the BofA Merrill Lynch 1-3 Year US Treasury^® Index.

Overweighting to US financials and energy corporates as well as BBB-rated securities helped performance. Overweight to consumer asset-backed securities (ABS) also helped performance during the year. An underweight to the two-to-three year part of the yield curve hurt performance as this part of the curve outperformed in 2016.

We maintain a duration positioning that is relatively short compared to the index as we are concerned about the possibility of increasing short-term rates. The Portfolio maintains a healthy allocation to credit positions, particularly in BBB corporates. US financials remain a sizable portion of the credit positioning. We have also increased weightings in consumer ABS, which reflects ongoing strength in consumer lending. We remain significantly underweight US Treasury securities as they appear relatively expensive.

Lazard Global Fixed Income Portfolio

For the year ended December 31, 2016, the Lazard Global Fixed Income Portfolio’s Institutional Shares posted a total return of 0.22%, while Open Shares posted a total return of -0.07%, as compared with the 2.09% return for the Bloomberg Barclays Capital Global Aggregate Bond^® Index.

The Portfolio’s performance was helped by country allocation, in particular overweight exposures to rela-

Annual Report  5

tively high quality debt of countries such as Australia and New Zealand. In addition, the team’s currency management added value through overweight exposure to the Australian dollar and the New Zealand dollar. Underweight exposure to the Japanese yen (specifically in the fourth quarter) and the Korean won also contributed to returns. Performance was also helped by the Portfolio’s sector allocation, which included overweight positions in a diverse selection of global credits and a general underweight in government securities. Conversely, the Portfolio’s under-

weight exposure to core Europe and Japan, and the resulting duration underweight, detracted from performance, as did its exposure to Mexico (on a fully-hedged basis).

The Portfolio management team utilizes forward currency contracts, both opportunistically and defensively, for hedging purposes. In aggregate, currency positioning (defined as the net currency exposure of underlying bonds plus currency hedges) was a positive contributor to relative performance.

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. Return for 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, 2016; 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*

Periods Ended December 31, 2016

	One Year	Five Years	Ten Years	Since Inception†
Institutional Shares**	10.09%	6.08%	5.80%	4.34%
Open Shares**	9.74%	5.76%	5.51%	3.81%
R6 Shares**	N/A	N/A	N/A	1.37%
Cash Pay Index	12.74%	7.05%	6.29%	6.52% (Institutional Shares) 6.47% (Open Shares) 1.39%
				(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. Return for 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 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, 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 January 2, 1998, for the Open Shares was February 24, 1998 and for the R6 Shares was November 3, 2016.

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, 2016

	One Year			Five Years			Since   Inception†
Institutional Shares**		1.00	%		0.53	%		1.21	%
Open Shares**		0.70	%		0.47	%		1.11	%
BofA Merrill Lynch 1-3 Year US Treasury Index		0.88	%		0.57	%		0.74	%

*	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 Bloomberg Barclays Capital Global Aggregate Bond^® Index*

Average Annual Total Returns*

Periods Ended December 31, 2016

	One Year			Since   Inception†
Institutional Shares**		0.22	%		–1.00	%
Open Shares**		–0.07	%		–1.29	%
Bloomberg Barclays Capital Global Aggregate Bond Index		2.09	%		0.04	%

*	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 Bloomberg 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, 2016 through December 31, 2016 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

Portfolio	Beginning Account Value 7/1/16		Ending Account Value 12/31/16		Expenses Paid During Period* 7/1/16 - 12/31/16		Annualized Expense Ratio During Period 7/1/16 - 12/31/16
US Corporate Income
Institutional Shares
Actual	$	1,000.00	$	1,040.80	$	2.82		0.55	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,022.37	$	2.80		0.55	%
Open Shares
Actual	$	1,000.00	$	1,039.20	$	4.36		0.85	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.86	$	4.32		0.85	%
R6 Shares†
Actual	$	1,000.00	$	1,000.00	$	0.87		0.55	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,007.05	$	0.87		0.55	%
US Short Duration Fixed Income
Institutional Shares
Actual	$	1,000.00	$	1,000.50	$	2.01		0.40	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,023.13	$	2.03		0.40	%
Open Shares
Actual	$	1,000.00	$	998.00	$	3.52		0.70	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.62	$	3.56		0.70	%
Global Fixed Income
Institutional Shares
Actual	$	1,000.00	$	941.00	$	3.71		0.76	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.32	$	3.86		0.76	%
Open Shares
Actual	$	1,000.00	$	939.60	$	5.17		1.06	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.81	$	5.38		1.06	%

*	Expenses are equal to the annualized expense ratio, net of expense waivers and reimbursements, of each Share class multiplied by the average account value over the period, multiplied by 184/366 (to reflect one-half year period).
†	The inception date for the R6 Shares was November 3, 2016.

Annual Report  11

The Lazard Funds, Inc. Portfolio Holdings Presented by Credit Rating December 31, 2016

S&P Credit Rating*	Lazard US Corporate Income Portfolio			Lazard US Short Duration Fixed Income Portfolio			Lazard Global Fixed Income Portfolio
AAA		—	%		5.1	%		12.4	%
AA+		—			43.5			15.2
AA		—			—			1.5
AA-		—			2.3			9.4
A+		—			0.7			7.7
A		—			4.0			8.5
A-		—			5.6			8.3
BBB+		—			20.2			9.7
BBB		1.8			5.0			3.4
BBB-		7.8			2.0			5.9
BB+		16.6			—			3.6
BB		19.6			—			0.5
BB-		24.3			—			0.5
B+		14.1			—			—
B		8.9			—			—
B-		2.7			—			—
CCC+		1.1			—			—
NA		0.6			9.5			5.7
NR		0.2			—			3.1
Short-Term Investments		2.3			2.1			4.6
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, 2016

Description	Principal Amount (000)		Fair Value
Lazard US Corporate Income Portfolio
Corporate Bonds | 95.8%
Aerospace & Defense | 1.2%
Bombardier, Inc., 7.750%, 03/15/20 (a)	$	975	$	1,026,188
KLX, Inc., 5.875%, 12/01/22 (a)		1,400		1,442,000
Triumph Group, Inc., 4.875%, 04/01/21		1,400		1,313,200
				3,781,388
Auto Components | 0.6%
The Goodyear Tire & Rubber Co., 5.125%, 11/15/23		1,800		1,854,000
Automobiles | 0.6%
Fiat Chrysler Automobiles NV, 5.250%, 04/15/23		1,800		1,832,940
Beverages | 0.3%
Constellation Brands, Inc., 7.250%, 05/15/17		950		969,000
Biotechnology | 0.5%
Grifols Worldwide Operations, Ltd., 5.250%, 04/01/22		1,475		1,526,625
Building Products | 0.8%
Griffon Corp., 5.250%, 03/01/22		1,800		1,823,850
USG Corp., 8.250%, 01/15/18		675		714,656
				2,538,506
Capital Markets | 1.6%
Icahn Enterprises LP, 6.000%, 08/01/20		1,500		1,531,875
MPT Operating Partnership LP, 6.375%, 03/01/24		1,810		1,893,713
PetSmart, Inc., 7.125%, 03/15/23 (a)		1,600		1,632,000
				5,057,588

Description	Principal Amount (000)		Fair Value
Chemicals | 3.4%
Chemtura Corp., 5.750%, 07/15/21	$	1,400	$	1,456,000
Huntsman International LLC, 4.875%, 11/15/20		1,600		1,658,000
Mosaic Global Holdings, Inc., 7.300%, 01/15/28		775		896,002
NOVA Chemicals Corp., 5.250%, 08/01/23 (a)		1,800		1,818,000
Platform Specialty Products Corp., 6.500%, 02/01/22 (a)		1,700		1,712,750
Westlake Chemical Corp., 4.625%, 02/15/21 (a)		1,400		1,449,000
WR Grace & Co-Conn, 5.125%, 10/01/21 (a)		1,700		1,772,250
				10,762,002
Commercial Services & Supplies | 3.8%
ACCO Brands Corp.:
6.750%, 04/30/20		1,750		1,837,500
5.250%, 12/15/24 (a)		1,800		1,812,384
Ashtead Capital, Inc., 6.500%, 07/15/22 (a)		1,700		1,780,750
Avis Budget Car Finance, Inc., 5.125%, 06/01/22 (a)		1,600		1,568,000
Clean Harbors, Inc., 5.250%, 08/01/20		1,750		1,791,562
The ADT Corp., 6.250%, 10/15/21		1,400		1,519,000
West Corp., 5.375%, 07/15/22 (a)		1,750		1,690,938
				12,000,134
Communications Equipment | 1.1%
CommScope, Inc., 5.000%, 06/15/21 (a)		1,500		1,545,000
Plantronics, Inc., 5.500%, 05/31/23 (a)		1,750		1,767,500
				3,312,500
Construction Materials | 0.6%
Standard Industries, Inc., 5.375%, 11/15/24 (a)		1,750		1,798,125

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

Annual Report  13

Description	Principal Amount (000)		Fair Value
Lazard US Corporate Income Portfolio (continued)
Containers & Packaging | 4.4%
Ball Corp., 4.000%, 11/15/23	$	1,900	$	1,862,000
Cascades, Inc., 5.500%, 07/15/22 (a)		1,500		1,522,500
Crown Americas LLC, 4.500%, 01/15/23		1,800		1,836,000
Owens-Brockway Glass Container, Inc., 5.000%, 01/15/22 (a)		1,892		1,934,570
Reynolds Group Issuer, Inc., 5.750%, 10/15/20		1,500		1,546,875
Sealed Air Corp., 4.875%, 12/01/22 (a)		1,700		1,746,750
Silgan Holdings, Inc., 5.000%, 04/01/20		1,475		1,500,812
Smurfit Kappa Acquisitions, 4.875%, 09/15/18 (a)		1,050		1,078,875
Smurfit Kappa Treasury Funding, Ltd., 7.500%, 11/20/25		750		870,000
				13,898,382
Diversified Consumer Services | 0.6%
The ServiceMaster Co. LLC, 5.125%, 11/15/24 (a)		1,800		1,827,000
Diversified Financial Services | 1.7%
Herc Rentals, Inc., 7.750%, 06/01/24 (a)		1,700		1,787,125
INEOS Group Holdings SA, 5.625%, 08/01/24 (a)		1,700		1,687,250
Level 3 Financing, Inc., 5.125%, 05/01/23		1,800		1,806,750
				5,281,125
Diversified Telecommunication Services | 2.3%
CenturyLink, Inc., 5.625%, 04/01/20		1,800		1,903,500
Frontier Communications Corp., 8.125%, 10/01/18		1,500		1,620,000
Hughes Satellite Systems Corp., 5.250%, 08/01/26 (a)		1,891		1,853,180
SBA Communications Corp., 4.875%, 09/01/24 (a)		1,800		1,777,500
				7,154,180

Description	Principal Amount (000)		Fair Value
Electronic Equipment, Instruments & Components | 0.6%
Belden, Inc., 5.500%, 09/01/22 (a)	$	1,750	$	1,802,500
Energy Equipment & Services | 0.8%
Transocean, Inc., 9.000%, 07/15/23 (a)		1,250		1,281,250
Weatherford International, Ltd., 8.250%, 06/15/23		1,250		1,271,875
				2,553,125
Equity Real Estate Investment Trusts (REITs) | 3.4%
Communications Sales & Leasing, Inc., 6.000%, 04/15/23 (a)		1,700		1,755,250
Crown Castle International Corp., 4.875%, 04/15/22		1,500		1,597,200
Equinix, Inc., 4.875%, 04/01/20		1,872		1,928,160
ESH Hospitality, Inc., 5.250%, 05/01/25 (a)		1,800		1,791,000
Iron Mountain, Inc., 6.000%, 08/15/23		1,700		1,806,250
RHP Hotel Properties LP, 5.000%, 04/15/23		1,775		1,792,750
				10,670,610
Food & Staples Retailing | 1.7%
Albertsons Cos. LLC, 6.625%, 06/15/24 (a)		1,750		1,824,375
Ingles Markets, Inc., 5.750%, 06/15/23		1,750		1,798,125
Performance Food Group, Inc., 5.500%, 06/01/24 (a)		1,805		1,818,537
				5,441,037
Food Products | 2.4%
B&G Foods, Inc., 4.625%, 06/01/21		1,500		1,530,000
Darling Ingredients, Inc., 5.375%, 01/15/22		850		881,875
Lamb Weston Holdings, Inc., 4.625%, 11/01/24 (a)		1,800		1,804,500
Post Holdings, Inc., 5.000%, 08/15/26 (a)		1,800		1,723,500
TreeHouse Foods, Inc., 4.875%, 03/15/22		1,500		1,537,500
				7,477,375

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

14  Annual Report

Description	Principal Amount (000)		Fair Value
Lazard US Corporate Income Portfolio (continued)
Gas Utilities | 0.9%
AmeriGas Partners LP, 5.625%, 05/20/24	$	1,800	$	1,840,500
Ferrellgas LP, 6.500%, 05/01/21		500		495,000
Ferrellgas Partners LP, 8.625%, 06/15/20		520		512,200
				2,847,700
Health Care Equipment & Supplies | 1.2%
Hill-Rom Holdings, Inc., 5.750%, 09/01/23 (a)		1,800		1,858,500
Hologic, Inc., 5.250%, 07/15/22 (a)		1,800		1,894,500
				3,753,000
Health Care Providers & Services | 4.8%
Centene Corp., 6.125%, 02/15/24		1,750		1,844,062
Community Health Systems, Inc., 8.000%, 11/15/19		1,400		1,162,000
DaVita, Inc., 5.125%, 07/15/24		1,800		1,795,500
Fresenius Medical Care US Finance II, Inc., 5.625%, 07/31/19 (a)		1,097		1,168,305
HCA, Inc., 6.500%, 02/15/20		1,600		1,750,400
HealthSouth Corp., 5.125%, 03/15/23		1,801		1,782,990
LifePoint Health, Inc.:
5.500%, 12/01/21		1,400		1,456,000
5.875%, 12/01/23		400		405,000
Molina Healthcare, Inc., 5.375%, 11/15/22		1,700		1,725,500
Tenet Healthcare Corp.:
4.750%, 06/01/20		700		703,500
4.375%, 10/01/21		1,250		1,231,250
				15,024,507
Hotels, Restaurants & Leisure | 6.9%
1011778 BC ULC, 4.625%, 01/15/22 (a)		1,800		1,836,000
Boyd Gaming Corp., 6.875%, 05/15/23		1,700		1,827,500
Brinker International, Inc., 5.000%, 10/01/24 (a)		2,000		1,995,000
Cedar Fair LP, 5.250%, 03/15/21		1,800		1,858,500

Description	Principal Amount (000)		Fair Value
Cinemark USA, Inc., 4.875%, 06/01/23	$	1,800	$	1,822,500
Diamond Resorts International, Inc., 7.750%, 09/01/23 (a)		1,500		1,515,000
GLP Capital LP, 4.875%, 11/01/20		1,500		1,575,000
Hilton Worldwide Finance LLC, 5.625%, 10/15/21		1,750		1,807,750
International Game Technology PLC:
5.625%, 02/15/20 (a)		250		263,750
6.250%, 02/15/22 (a)		1,450		1,555,125
MGM Resorts International:
6.625%, 12/15/21		1,000		1,117,500
4.625%, 09/01/26		800		770,000
Six Flags Entertainment Corp., 5.250%, 01/15/21 (a)		1,400		1,431,500
Wynn Las Vegas LLC, 5.375%, 03/15/22		2,007		2,054,666
				21,429,791
Household Durables | 0.6%
Tempur Sealy International, Inc., 5.625%, 10/15/23		1,750		1,806,875
Household Products | 0.6%
Energizer Holdings, Inc., 5.500%, 06/15/25 (a)		1,750		1,754,375
Independent Power & Renewable Electricity Producers | 0.9%
AES Corp., 7.375%, 07/01/21		1,095		1,219,721
Calpine Corp., 6.000%, 01/15/22 (a)		1,500		1,567,500
				2,787,221
Internet & Direct Marketing Retail | 0.5%
Netflix, Inc., 5.375%, 02/01/21		1,450		1,558,750
Internet Software & Services | 0.6%
VeriSign, Inc., 4.625%, 05/01/23		1,800		1,827,000
IT Services | 0.6%
First Data Corp.:
6.750%, 11/01/20 (a)		260		269,750
5.375%, 08/15/23 (a)		1,600		1,660,000
				1,929,750

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

Annual Report  15

Description	Principal Amount (000)		Fair Value
Lazard US Corporate Income Portfolio (continued)
Machinery | 1.6%
Amsted Industries, Inc., 5.000%, 03/15/22 (a)	$	1,700	$	1,700,000
SPX FLOW, Inc., 5.625%, 08/15/24 (a)		1,750		1,763,125
Terex Corp., 6.500%, 04/01/20		1,600		1,632,000
				5,095,125
Marine | 0.2%
Hapag-Lloyd AG, 9.750%, 10/15/17 (a)		533		533,000
Media | 13.6%
AMC Networks, Inc., 4.750%, 12/15/22		1,500		1,507,500
Cable One, Inc., 5.750%, 06/15/22 (a)		1,750		1,802,500
Cablevision Systems Corp., 7.750%, 04/15/18		1,500		1,582,500
CBS Radio, Inc., 7.250%, 11/01/24 (a)		1,500		1,567,500
CCO Holdings LLC, 5.250%, 03/15/21		1,950		2,008,500
Cequel Communications Holdings I LLC, 6.375%, 09/15/20 (a)		1,800		1,854,000
Clear Channel Worldwide Holdings, Inc., 6.500%, 11/15/22		1,750		1,789,375
DISH DBS Corp., 5.125%, 05/01/20		1,600		1,656,000
Lamar Media Corp., 5.875%, 02/01/22		1,685		1,735,550
LIN Television Corp., 5.875%, 11/15/22		1,750		1,780,625
Live Nation Entertainment, Inc., 4.875%, 11/01/24 (a)		1,800		1,804,500
Mediacom Broadband LLC, 5.500%, 04/15/21		1,500		1,533,750
Outfront Media Capital LLC, 5.250%, 02/15/22		1,500		1,556,250
Regal Entertainment Group, 5.750%, 03/15/22		1,850		1,937,875
Sinclair Television Group, Inc., 5.375%, 04/01/21		1,900		1,957,000

Description	Principal Amount (000)		Fair Value
Sirius XM Radio, Inc.:
5.750%, 08/01/21 (a)	$	1,500	$	1,561,875
5.375%, 04/15/25 (a)		400		398,000
Starz LLC, 5.000%, 09/15/19		725		732,250
TEGNA, Inc., 6.375%, 10/15/23		1,900		2,010,485
The McClatchy Co., 9.000%, 12/15/22		1,100		1,171,500
Time, Inc., 5.750%, 04/15/22 (a)		1,425		1,474,875
Tribune Media Co., 5.875%, 07/15/22		1,800		1,824,750
Unitymedia Hessen GmbH & Co. KG, 5.500%, 01/15/23 (a)		1,800		1,874,250
Univision Communications, Inc., 5.125%, 05/15/23 (a)		1,800		1,773,000
Videotron, Ltd., 5.000%, 07/15/22		1,808		1,853,200
WMG Acquisition Corp., 4.875%, 11/01/24 (a)		1,850		1,840,750
				42,588,360
Metals & Mining | 3.2%
Alcoa Nederland Holding BV, 6.750%, 09/30/24 (a)		1,800		1,953,000
Anglo American Capital PLC, 4.875%, 05/14/25 (a)		1,900		1,926,125
ArcelorMittal, 6.500%, 03/01/21		1,400		1,533,000
Freeport-McMoRan, Inc., 4.550%, 11/14/24		2,200		2,062,500
Glencore Funding LLC, 4.625%, 04/29/24 (a)		2,000		2,045,000
Tronox Finance LLC, 6.375%, 08/15/20		650		607,750
				10,127,375
Multiline Retail | 1.2%
Dollar Tree, Inc., 5.750%, 03/01/23		1,750		1,852,935
J.C. Penney Corp., Inc., 5.875%, 07/01/23 (a)		1,800		1,856,250
				3,709,185
Oil, Gas & Consumable Fuels | 12.5%
Antero Resources Corp., 5.125%, 12/01/22		1,850		1,868,500
Cenovus Energy, Inc., 3.800%, 09/15/23		2,000		1,949,986

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

16  Annual Report

Description	Principal Amount (000)		Fair Value
Lazard US Corporate Income Portfolio (continued)
Continental Resources, Inc., 4.500%, 04/15/23	$	2,000	$	1,960,000
Diamondback Energy, Inc., 4.750%, 11/01/24 (a)		1,800		1,764,000
Energy Transfer Equity LP:
7.500%, 10/15/20		1,250		1,393,750
5.875%, 01/15/24		750		774,375
Gulfport Energy Corp., 6.000%, 10/15/24 (a)		1,700		1,729,750
Holly Energy Partners LP, 6.000%, 08/01/24 (a)		1,840		1,918,200
Kinder Morgan, Inc.:
7.000%, 06/15/17		650		665,069
5.000%, 02/15/21 (a)		1,275		1,357,039
Murphy Oil Corp., 6.875%, 08/15/24		1,500		1,597,500
Newfield Exploration Co., 5.625%, 07/01/24		1,900		1,980,750
Northern Tier Energy LLC, 7.125%, 11/15/20		1,250		1,298,437
ONEOK Partners LP, 5.000%, 09/15/23		2,000		2,174,044
PBF Holding Co. LLC:
8.250%, 02/15/20		900		922,500
7.000%, 11/15/23 (a)		900		895,500
Range Resources Corp., 5.000%, 08/15/22 (a)		1,700		1,689,375
Regency Energy Partners LP, 5.750%, 09/01/20		1,300		1,404,797
Rockies Express Pipeline LLC, 6.850%, 07/15/18 (a)		1,450		1,531,562
Southwestern Energy Co., 6.700%, 01/23/25		1,800		1,840,500
Suburban Propane Partners LP, 7.375%, 08/01/21		1,531		1,584,585
Sunoco LP, 6.375%, 04/01/23		1,700		1,721,250
Targa Resources Partners LP, 5.250%, 05/01/23		1,800		1,818,000
Tesoro Logistics LP, 6.125%, 10/15/21		1,383		1,452,150
Whiting Petroleum Corp., 5.750%, 03/15/21		900		896,256
WPX Energy, Inc., 6.000%, 01/15/22		900		922,500
				39,110,375

Description	Principal Amount (000)		Fair Value
Personal Products | 1.0%
First Quality Finance Co., Inc., 4.625%, 05/15/21 (a)	$	1,500	$	1,485,000
Revlon Consumer Products Corp., 6.250%, 08/01/24		1,750		1,793,750
				3,278,750
Pharmaceuticals | 1.0%
Endo Finance LLC, 5.750%, 01/15/22 (a)		1,600		1,424,000
Mallinckrodt International Finance SA, 5.750%, 08/01/22 (a)		1,700		1,636,250
				3,060,250
Professional Services | 1.2%
IHS Markit, Ltd., 5.000%, 11/01/22 (a)		1,750		1,815,625
Nielsen Finance LLC, 5.000%, 04/15/22 (a)		1,800		1,831,500
				3,647,125
Real Estate Management & Development | 0.5%
DuPont Fabros Technology LP, 5.875%, 09/15/21		1,400		1,464,750
Road & Rail | 0.5%
The Hertz Corp., 5.500%, 10/15/24 (a)		1,800		1,572,750
Semiconductors & Semiconductor Equipment | 0.5%
Amkor Technology, Inc., 6.625%, 06/01/21		1,400		1,438,500
Software | 1.0%
Inception Merger Sub, Inc., 8.625%, 11/15/24 (a)		1,500		1,587,675
Nuance Communications, Inc., 5.375%, 08/15/20 (a)		1,373		1,412,474
				3,000,149
Specialty Retail | 1.2%
Group 1 Automotive, Inc., 5.000%, 06/01/22		1,912		1,888,100
Penske Automotive Group, Inc., 5.500%, 05/15/26		1,800		1,777,500
				3,665,600

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

Annual Report  17

Description	Principal Amount (000)		Fair Value
Lazard US Corporate Income Portfolio (concluded)
Technology Hardware, Storage & Peripherals | 2.3%
Diamond 1 Finance Corp., 7.125%, 06/15/24 (a)	$	1,775	$	1,969,757
NCR Corp., 4.625%, 02/15/21		1,568		1,596,224
Seagate HDD Cayman, 4.750%, 01/01/25		1,900		1,810,120
Western Digital Corp., 7.375%, 04/01/23 (a)		1,700		1,870,000
				7,246,101
Trading Companies & Distributors | 2.6%
Aircastle, Ltd., 5.125%, 03/15/21		1,500		1,597,500
HD Supply, Inc., 5.250%, 12/15/21 (a)		1,500		1,582,500
International Lease Finance Corp., 8.750%, 03/15/17		500		506,875
United Rentals North America, Inc.:
4.625%, 07/15/23		1,100		1,122,000
5.750%, 11/15/24		1,650		1,732,500
WESCO Distribution, Inc., 5.375%, 12/15/21		1,600		1,652,000
				8,193,375

Description	Principal Amount (000)		Fair Value
Wireless Telecommunication Services | 1.7%
Inmarsat Finance PLC, 4.875%, 05/15/22 (a)	$	1,750	$	1,701,875
Sprint Capital Corp., 6.900%, 05/01/19		1,475		1,561,656
T-Mobile USA, Inc., 6.250%, 04/01/21		1,850		1,924,000
				5,187,531
Total Corporate Bonds (Cost $293,585,846)				299,175,412
Description	Shares		Fair Value
Short-Term Investment | 2.2%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $6,991,667)		6,991,667	$	6,991,667
Total Investments | 98.0% (Cost $300,577,513) (b)			$	306,167,079
Cash and Other Assets in Excess of Liabilities | 2.0%				6,144,955
Net Assets | 100.0%			$	312,312,034

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

18  Annual Report

Description	Principal Amount (000)		Fair Value
Lazard US Short Duration Fixed Income Portfolio
Asset-Backed Securities | 16.7%
Automobiles | 11.9%
Ally Auto Receivables Trust:
1.390%, 09/16/19	$	1,275	$	1,275,917
1.470%, 04/15/20		1,750		1,750,698
BMW Vehicle Lease Trust, 1.400%, 09/20/18		2,175		2,176,946
GM Financial Automobile Leasing Trust, 1.610%, 12/20/19		2,225		2,218,001
GMF Floorplan Owner Revolving Trust, 1.650%, 05/15/20 (a)		1,200		1,198,924
Mercedes-Benz Auto Lease Trust, 1.350%, 08/15/19		1,325		1,321,234
World Omni Automobile Lease Securitization Trust, 1.450%, 08/15/19		2,350		2,342,953
				12,284,673
Banks | 4.8%
Citibank Credit Card Issuance Trust, 5.650%, 09/20/19		2,550		2,629,026
Wells Fargo Bank NA, 1.750%, 05/24/19		2,385		2,372,548
				5,001,574
Total Asset-Backed Securities (Cost $17,388,425)				17,286,247
Corporate Bonds | 35.3%
Banks | 11.7%
Bank of America Corp.:
2.000%, 01/11/18		3,287		3,294,330
5.650%, 05/01/18		900		942,853
Citigroup, Inc.:
1.800%, 02/05/18		3,360		3,358,999
2.050%, 06/07/19		843		839,466
JPMorgan Chase & Co., 6.300%, 04/23/19		3,325		3,631,951
				12,067,599
Biotechnology | 4.1%
AbbVie, Inc., 1.800%, 05/14/18		2,100		2,101,268
Amgen, Inc., 5.700%, 02/01/19		1,983		2,130,603
				4,231,871

Description	Principal Amount (000)		Fair Value
Capital Markets | 7.6%
Morgan Stanley, 2.125%, 04/25/18	$	3,991	$	4,006,338
The Goldman Sachs Group, Inc., 7.500%, 02/15/19		3,475		3,850,960
				7,857,298
Consumer Finance | 2.1%
Ford Motor Credit Co. LLC, 5.000%, 05/15/18		2,125		2,207,865
Diversified Telecommunication Services | 2.1%
Verizon Communications, Inc., 3.650%, 09/14/18		2,135		2,205,092
Food & Staples Retailing | 3.7%
CVS Health Corp., 1.900%, 07/20/18		2,175		2,182,995
The Kroger Co., 2.300%, 01/15/19		1,575		1,584,239
				3,767,234
Oil, Gas & Consumable Fuels | 3.2%
Marathon Oil Corp., 6.000%, 10/01/17		1,959		2,017,423
ONEOK Partners LP, 2.000%, 10/01/17		1,300		1,303,532
				3,320,955
Semiconductors & Semiconductor Equipment | 0.8%
QUALCOMM, Inc., 1.400%, 05/18/18		775		774,779
Total Corporate Bonds (Cost $36,553,787)				36,432,693
Municipal Bonds | 1.9%
Kentucky | 1.9%
Kentucky State Asset Liability Commission General Funding Revenue, 3.165%, 04/01/18 (Cost $1,965,274)		1,939		1,953,687

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

Annual Report  19

Description	Principal Amount (000)		Fair Value
Lazard US Short Duration Fixed Income Portfolio (concluded)
US Government Securities | 23.0%
Mortgage-Backed Securities | 23.0%
Federal Home Loan Mortgage Corp.:
Pool# 1B4676, 3.023%, 05/01/40 (c)	$	616	$	653,901
Pool# 1B8709, 2.689%, 08/01/34 (c)		1,630		1,713,961
Pool# 1H2577, 2.777%, 09/01/35 (c)		955		1,009,184
Pool# 848138, 2.815%, 07/01/38 (c)		885		937,120
Pool# 848514, 2.927%, 03/01/32 (c)		1,822		1,919,586
Pool# 848517, 2.791%, 12/01/34 (c)		1,229		1,299,570
Pool# 849414, 2.814%, 07/01/35 (c)		1,571		1,657,451
Pool# G13867, 5.000%, 06/01/25		368		394,323
Federal National Mortgage Association:
Pool# 725296, 2.636%, 03/01/34 (c)		714		751,428
Pool# 725429, 5.000%, 05/01/19		220		225,705
Pool# 889735, 5.500%, 07/01/23		308		332,476
Pool# 889828, 5.000%, 10/01/19		162		166,660
Pool# 963058, 3.025%, 05/01/38 (c)		686		728,290
Pool# 995609, 3.107%, 04/01/35 (c)		827		877,414
Pool# AD0701, 2.812%, 02/01/37 (c)		919		964,002
Pool# AE0149, 2.700%, 12/01/36 (c)		804		850,813
Pool# AE0315, 4.500%, 02/01/21		58		59,908
Pool# AE0887, 3.016%, 09/01/40 (c)		370		391,834
Pool# AL0345, 3.023%, 11/01/35 (c)		708		748,587
Pool# AL3232, 3.072%, 02/01/40 (c)		405		429,656
Pool# AL3260, 2.976%, 07/01/38 (c)		490		522,190
Pool# AL3739, 2.742%, 07/01/38 (c)		273		287,512
Pool# AL3746, 2.734%, 01/01/37 (c)		934		985,002
Pool# AL3941, 6.000%, 03/01/24		379		403,806
Pool# AL4118, 3.136%, 05/01/35 (c)		592		621,240
Pool# AL4545, 2.738%, 05/01/39 (c)		737		776,774
Pool# AL4660, 2.908%, 11/01/41 (c)		791		837,653
Pool# AL5574, 2.712%, 12/01/40 (c)		1,301		1,370,895
Pool# AL5642, 2.775%, 05/01/39 (c)		1,679		1,770,875
Total US Government Securities (Cost $23,723,145)				23,687,816
US Treasury Securities | 20.2%
US Treasury Notes:
1.375%, 02/28/19		7,490		7,509,062
1.625%, 03/31/19		13,280		13,381,446
Total US Treasury Securities (Cost $21,056,611)				20,890,508

Description	Shares		Fair Value
Short-Term Investment | 2.1%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield)
(Cost $2,187,152)		2,187,152	$	2,187,152
Total Investments | 99.2% (Cost $102,874,394) (b)			$	102,438,103
Cash and Other Assets in Excess of Liabilities | 0.8%				779,950
Net Assets | 100.0%			$	103,218,053

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

20  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Fixed Income Portfolio
Corporate Bonds | 41.3%
Australia | 2.6%
Telstra Corp., Ltd.:
4.000%, 11/15/17	AUD		110	$	80,362
4.000%, 09/16/22	AUD		10		7,380
Toyota Finance Australia, Ltd., 4.250%, 05/15/19	AUD		35		26,083
					113,825
Belgium | 1.3%
Anheuser-Busch InBev Finance, Inc., 2.650%, 02/01/21	USD		55		55,252
Canada | 3.1%
Shaw Communications, Inc., 5.650%, 10/01/19	CAD		55		44,706
The Toronto-Dominion Bank:
2.250%, 11/05/19	USD		55		55,300
2.621%, 12/22/21	CAD		45		34,373
					134,379
France | 1.6%
Orange SA, 5.375%, 07/08/19	USD		65		70,017
Germany | 2.8%
BMW Finance NV, 3.375%, 12/14/18	GBP		60		77,684
Fresenius Medical Care US Finance II, Inc., 4.125%, 10/15/20	USD		40		41,400
					119,084
Netherlands | 1.4%
Bank Nederlandse Gemeenten NV, 5.000%, 09/16/20	NZD		80		58,152
Norway | 1.5%
Statoil ASA, 3.700%, 03/01/24	USD		60		62,729
United Kingdom | 4.1%
GKN Holdings PLC, 6.750%, 10/28/19	GBP		30		42,144
Rolls-Royce PLC, 6.750%, 04/30/19	GBP		50		70,072
SSE PLC, 5.000%, 10/01/18	GBP		50		66,150
					178,366

Description	Security Currency	Principal Amount (000)		Fair Value
United States | 22.9%
Alphabet, Inc., 3.625%, 05/19/21	USD		25	$	26,489
Amazon.com, Inc., 3.800%, 12/05/24	USD		45		47,230
Apple, Inc., 3.850%, 05/04/43	USD		95		90,661
Citigroup, Inc., 3.305%, 05/04/21 (c)	AUD		95		68,856
Constellation Brands, Inc., 7.250%, 05/15/17	USD		30		30,600
General Electric Co., 5.500%, 02/01/17	NZD		90		62,667
HCA, Inc., 6.500%, 02/15/20	USD		25		27,350
John Deere Canada Funding, Inc.:
2.300%, 01/17/18	CAD		35		26,368
2.050%, 09/17/20	CAD		35		26,179
John Deere Capital Corp., 2.300%, 09/16/19	USD		40		40,415
JPMorgan Chase & Co., 4.500%, 01/24/22	USD		45		48,482
Microsoft Corp., 4.450%, 11/03/45	USD		70		74,427
Nestle Holdings, Inc.:
2.500%, 07/10/17	NOK		250		29,117
2.750%, 04/15/20	NOK		340		41,182
NIKE, Inc., 2.375%, 11/01/26	USD		40		37,680
Sealed Air Corp., 4.875%, 12/01/22	USD		20		20,550
The Goldman Sachs Group, Inc.:
5.200%, 12/17/19	NZD		110		78,599
3.625%, 01/22/23	USD		15		15,306
The Home Depot, Inc., 2.625%, 06/01/22	USD		45		45,169
Union Pacific Corp., 4.163%, 07/15/22	USD		40		43,061
United Rentals North America, Inc., 4.625%, 07/15/23	USD		45		45,900
Valero Energy Corp., 6.125%, 02/01/20	USD		30		33,092
Wells Fargo & Co., 3.075%, 07/27/21 (c)	AUD		35		25,345
					984,725
Total Corporate Bonds (Cost $1,904,724)					1,776,529

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

Annual Report  21

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Fixed Income Portfolio (continued)
Foreign Government Obligations | 38.0%
Australia | 1.9%
Queensland Treasury Corp., 5.500%, 06/21/21	AUD		55	$	44,699
Western Australian Treasury Corp., 6.000%, 10/16/23	AUD		45		38,638
					83,337
Bahamas | 1.8%
Commonwealth of Bahamas, 6.950%, 11/20/29	USD		70		75,775
Canada | 3.5%
City of Vancouver, 2.900%, 11/20/25	CAD		50		37,759
Province of Ontario, 2.450%, 06/29/22	USD		45		44,926
Province of Quebec, 3.500%, 07/29/20	USD		65		68,461
					151,146
Chile | 1.4%
Republic of Chile, 5.500%, 08/05/20	CLP		37,500		58,765
Czech Republic | 1.5%
Czech Republic, 0.060%, 12/09/20 (c)	CZK		1,650		65,530
Dominican Republic | 0.5%
Dominican Republic, 9.040%, 01/23/18	USD		20		20,313
Hungary | 2.0%
Hungary Government Bond, 5.500%, 06/24/25	HUF		21,540		87,533
Ireland | 1.3%
Irish Treasury, 3.400%, 03/18/24	EUR		45		57,593

Description	Security Currency	Principal Amount (000)		Fair Value
Mexico | 3.3%
Mexican Bonos:
6.500%, 06/09/22	MXN		1,410	$	65,639
7.750%, 05/29/31	MXN		450		21,707
United Mexican States, 6.750%, 02/06/24	GBP		38		56,139
					143,485
New Zealand | 3.7%
New Zealand Government Bonds:
6.000%, 12/15/17	NZD		50		35,893
3.000%, 04/15/20	NZD		130		91,708
6.000%, 05/15/21	NZD		40		30,633
					158,234
Norway | 2.9%
Oslo Kommune, 3.550%, 02/12/21	NOK		1,000		122,626
Philippines | 2.8%
Republic of Philippines, 4.950%, 01/15/21	PHP		6,000		119,487
Poland | 4.3%
Poland Government Bond, 1.790%, 01/25/21 (c)	PLN		555		130,421
Republic of Poland, 3.000%, 03/17/23	USD		55		53,890
					184,311
Romania | 1.8%
Romanian Government Bonds:
3.625%, 04/24/24	EUR		28		32,900
4.750%, 02/24/25	RON		175		43,945
					76,845
Singapore | 3.2%
Singapore Government Bond, 3.000%, 09/01/24	SGD		190		136,712
Spain | 2.1%
Spain Government Bonds:
1.600%, 04/30/25	EUR		40		43,582
1.950%, 07/30/30	EUR		45		48,206
					91,788
Total Foreign Government Obligations (Cost $1,807,435)					1,633,480

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

22  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Fixed Income Portfolio (continued)
Quasi Government Bonds | 1.2%
Canada | 0.7%
Hydro-Quebec, 9.625%, 07/15/22	CAD		30	$	31,373
Germany | 0.5%
Landeskreditbank Baden-Wuerttemberg Foerderbank, 3.000%, 05/22/17	NOK		160		18,635
Total Quasi Government Bonds (Cost $61,029)					50,008
Supranationals | 7.3%
Asian Development Bank, 2.125%, 03/19/25	USD		60		57,835
Corporacion Andina de Fomento, 4.375%, 06/15/22	USD		44		46,678
European Bank for Reconstruction & Development, 10.000%, 11/16/18	IDR		300,000		22,768
European Investment Bank, 1.125%, 09/16/21 (a)	CAD		75		54,381
Inter-American Development Bank:
6.000%, 09/05/17	INR		1,550		22,836
6.000%, 12/15/17	NZD		65		46,586
International Finance Corp., 6.450%, 10/30/18	INR		4,160		61,906
Total Supranationals (Cost $330,331)					312,990
US Municipal Bonds | 6.2%
Alaska | 2.0%
Alaska State Qualified School Construction Bond, 5.342%, 08/01/27	USD		75		87,727

Description	Security Currency	Principal Amount (000)		Fair Value
California | 1.1%
California State Build America Bond, 7.500%, 04/01/34	USD		35	$	49,472
Texas | 3.1%
University of Texas Build America Bond Series B, 6.276%, 08/15/41	USD		70		77,295
Texas State Build America Bond Series A, 4.123%, 04/01/25	USD		50		54,633
					131,928
Total US Municipal Bonds (Cost $275,000)					269,127
US Treasury Securities | 5.1%
US Treasury Notes:
1.625%, 05/15/26	USD		185		172,513
2.500%, 05/15/46	USD		55		48,756
Total US Treasury Securities (Cost $226,383)					221,269
Description		Shares		Fair Value
Short-Term Investment | 4.8%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $205,972)			205,972	$	205,972
Total Investments | 103.9% (Cost $4,810,874) (b), (d)				$	4,469,375
Liabilities in Excess of Cash and Other Assets | (3.9)%					(169,244	)
Net Assets | 100.0%				$	4,300,131

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, 2016:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
CAD		66,446	USD		50,285	CIT	02/16/17	$	—	$	770
CAD		75,571	USD		56,935	CIT	02/16/17		—		620
CHF		34,943	USD		35,762	HSB	02/16/17		—		1,349
CZK		133,183	USD		5,480	CIT	07/11/17		—		224
CZK		112,388	USD		4,411	HSB	07/11/17		24		—
DKK		395,118	USD		55,800	HSB	02/16/17		275		—
EUR		36,162	USD		37,852	CIT	02/16/17		294		—
EUR		561,900	USD		614,940	CIT	02/16/17		—		22,208
EUR		41,489	USD		45,000	HSB	02/16/17		—		1,234
EUR		47,595	USD		51,300	HSB	02/16/17		—		1,094
EUR		306,565	USD		335,462	HSB	02/16/17		—		12,075
GBP		12,585	USD		15,719	HSB	02/16/17		—		193
HUF		4,144,973	USD		13,940	JPM	02/16/17		185		—
JPY		42,541,223	USD		394,417	CIT	02/16/17		—		29,628
JPY		9,835,924	USD		89,000	HSB	02/16/17		—		4,657
JPY		53,221,412	USD		493,401	HSB	02/16/17		—		37,030
KRW		61,521,900	USD		51,500	HSB	01/23/17		—		563
MXN		173,971	USD		8,304	HSB	02/16/17		39		—
MXN		451,757	USD		21,962	HSB	02/16/17		—		296
MYR		53,945	USD		12,836	HSB	01/31/17		—		822
PHP		300,900	USD		6,000	HSB	02/16/17		45		—
PLN		29,620	USD		7,015	HSB	02/16/17		58		—
PLN		34,641	USD		8,190	HSB	02/16/17		81		—
PLN		106,932	USD		26,564	HSB	02/16/17		—		1,030
RON		33,569	USD		7,766	HSB	04/27/17		40		—
SEK		235,453	USD		26,143	CIT	02/16/17		—		232
SEK		195,975	USD		21,782	HSB	02/16/17		—		215
SEK		368,852	USD		40,100	HSB	02/16/17		491		—
SGD		14,750	USD		10,354	CIT	02/16/17		—		172
USD		54,608	AUD		51,689	CIT	02/16/17		2,919		—
USD		4,860	AUD		4,601	HSB	02/16/17		258		—
USD		7,567	AUD		7,482	HSB	02/16/17		85		—
USD		167,338	AUD		158,447	HSB	02/16/17		8,891		—
USD		42,809	CAD		42,998	CIT	02/16/17		—		189
USD		192,746	CAD		193,595	CIT	02/16/17		—		849
USD		8,249	CAD		8,230	HSB	02/16/17		19		—
USD		19,595	CAD		19,685	HSB	02/16/17		—		89
USD		27,300	CAD		27,435	HSB	02/16/17		—		135
USD		57,572	CLP		57,670	CIT	02/16/17		—		97
USD		20,168	CZK		19,739	HSB	07/11/17		429		—
USD		54,374	CZK		50,955	JPM	07/11/17		3,419		—
USD		74,400	EUR		73,469	CIT	02/16/17		931		—
USD		70,100	EUR		70,028	HSB	02/16/17		72		—

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

24  Annual Report

Lazard Global Fixed Income Portfolio (concluded)

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
USD		74,400	EUR		73,586	HSB	02/16/17	$	814	$	—
USD		150,000	EUR		151,661	HSB	02/16/17		—		1,661
USD		63,684	GBP		62,114	CIT	02/16/17		1,570		—
USD		24,933	GBP		24,321	HSB	02/16/17		613		—
USD		102,624	HUF		99,059	JPM	02/16/17		3,565		—
USD		65,900	INR		66,267	CIT	01/17/17		—		367
USD		53,800	JPY		49,020	CIT	02/16/17		4,780		—
USD		38,100	JPY		37,533	HSB	02/16/17		567		—
USD		53,800	JPY		49,130	HSB	02/16/17		4,670		—
USD		22,290	MXN		21,996	HSB	02/16/17		294		—
USD		89,048	MXN		89,471	HSB	02/16/17		—		423
USD		217,177	NOK		210,100	HSB	02/16/17		7,077		—
USD		23,683	NZD		22,425	CIT	02/16/17		1,258		—
USD		349,590	NZD		331,016	CIT	02/16/17		18,575		—
USD		23,126	NZD		21,901	HSB	02/16/17		1,225		—
USD		128,035	PHP		128,497	HSB	02/16/17		—		462
USD		167,129	PLN		160,650	HSB	02/16/17		6,480		—
USD		50,612	RON		48,584	HSB	04/27/17		2,028		—
USD		148,071	SGD		143,977	CIT	02/16/17		4,094		—
Total gross unrealized appreciation/depreciation on Forward Currency Contracts								$	76,165	$	118,684

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, 2016

(a) Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2016, the percentage of net assets for each Portfolio was as follows:

Portfolio	Percentage of Net Assets
US Corporate Income		41.3	%
US Short Duration Fixed Income		1.2
Global Fixed Income		1.3

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

Portfolio	Aggregate Cost		Aggregate Gross Unrealized Appreciation		Aggregate Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)
US Corporate Income	$	300,577,513	$	7,520,806	$	1,931,240	$	5,589,566
US Short Duration Fixed Income		102,875,891		86,918		524,706		(437,788	)
Global Fixed Income		4,813,742		12,080		356,447		(344,367	)

(c)	Variable and floating rate securities are securities for which interest rate changes are based on changes in a designated base rate. The rates shown are those in effect on December 31, 2016.
(d)	The Portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts.

Currency Abbreviations:
AUD	—	Australian Dollar	KRW	—	South Korean Won
CAD	—	Canadian Dollar	MXN	—	Mexican New Peso
CHF	—	Swiss Franc	MYR	—	Malaysian Ringgit
CLP	—	Chilean Peso	NOK	—	Norwegian Krone
CZK	—	Czech Koruna	NZD	—	New Zealand Dollar
DKK	—	Danish Krone	PHP	—	Philippine Peso
EUR	—	Euro	PLN	—	Polish Zloty
GBP	—	British Pound Sterling	RON	—	New Romanian Leu
HUF	—	Hungarian Forint	SEK	—	Swedish Krona
IDR	—	Indonesian Rupiah	SGD	—	Singapore Dollar
INR	—	Indian Rupee	USD	—	United States Dollar
JPY	—	Japanese Yen
Counterparty Abbreviations:
CIT	—	Citibank NA
HSB	—	HSBC Bank USA NA
JPM	—	JPMorgan Chase Bank 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:

Industry*	Lazard Global Fixed Income Portfolio
Aerospace & Defense		1.6	%
Automobiles		3.4
Banks		7.2
Beverages		2.0
Capital Markets		2.2
Containers & Packaging		0.5
Diversified Telecommunication Services		3.7
Electric Utilities		1.5
Food Products		1.6
Health Care Providers & Services		1.6
Independent Power and Renewable Electricity Producers		0.7
Industrial Conglomerates		1.5
Internet & Catalog Retail		1.1
Internet Software & Services		0.6
Machinery		2.2
Media		1.0
Oil, Gas & Consumable Fuels		2.2
Road & Rail		1.0
Software		1.7
Specialty Retail		1.1
Technology Hardware, Storage & Peripherals		2.1
Textiles, Apparel & Luxury Goods		0.9
Trading Companies & Distributors		1.1
Subtotal		42.5
Foreign Government Obligations		38.0
Supranationals		7.3
US Municipal Bonds		6.2
US Treasury Securities		5.1
Short-Term Investment		4.8
Total Investments		103.9	%

* 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

	Lazard			Lazard			Lazard
	US Corporate			US Short Duration			Global Fixed
December 31, 2016	Income Portfolio			Fixed Income Portfolio			Income Portfolio
ASSETS
Investments in securities, at fair value	$	306,167,079		$	102,438,103		$	4,469,375
Cash		1,709,752			—			—
Receivables for:
Dividends and interest		4,347,897			725,907			53,174
Capital stock sold		628,515			160,516			—
Amount due from Investment Manager (Note 3)		—			—			10,297
Gross unrealized appreciation on forward currency contracts		—			—			76,165
Deferred offering costs (Note 2(f))		5,021			—			—
Total assets		312,858,264			103,324,526			4,609,011
LIABILITIES
Foreign currency due to custodian		—			—			5
Payables for:
Management fees		93,629			13,251			—
Accrued professional services		32,404			27,926			31,246
Accrued administration fees		27,783			17,730			8,128
Accrued custodian fees		16,201			8,357			10,072
Accrued distribution fees		1,532			9			7
Capital stock redeemed		232,098			25,201			13,963
Dividends		118,110			6,307			—
Investments purchased		—			—			121,177
Gross unrealized depreciation on forward currency contracts		—			—			118,684
Other accrued expenses and payables		24,473			7,692			5,598
Total liabilities		546,230			106,473			308,880
Net assets	$	312,312,034		$	103,218,053		$	4,300,131
NET ASSETS
Paid in capital	$	316,450,017		$	103,903,222		$	4,793,848
Undistributed (distributions in excess of) net investment income (loss)		(28,231	)		(79,634	)		(95,855	)
Accumulated net realized gain (loss)		(9,699,318	)		(169,244	)		(12,350	)
Net unrealized appreciation (depreciation) on: Investments		5,589,566			(436,291	)		(341,499	)
Foreign currency translations and forward currency contracts		—			—			(44,013	)
Net assets	$	312,312,034		$	103,218,053		$	4,300,131
Institutional Shares
Net assets	$	302,996,794		$	103,174,510		$	4,266,206
Shares of capital stock outstanding*		62,254,314			10,468,785			497,927
Net asset value, offering and redemption price per share	$	4.87		$	9.86		$	8.57
Open Shares
Net assets	$	7,617,801		$	43,543		$	33,925
Shares of capital stock outstanding*		1,557,470			4,412			3,958
Net asset value, offering and redemption price per share	$	4.89		$	9.87		$	8.57
R6 Shares
Net assets	$	1,697,439			—			—
Shares of capital stock outstanding*		348,256			—			—
Net asset value, offering and redemption price per share	$	4.87			—			—
Cost of investments in securities	$	300,577,513		$	102,874,394		$	4,810,874

* $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

	Lazard			Lazard			Lazard
	US Corporate			US Short Duration			Global Fixed
For the Year Ended December 31, 2016	Income Portfolio			Fixed Income Portfolio			Income Portfolio
Investment Income (Loss)
Income
Interest*	$	14,258,252		$	1,718,627		$	155,781
Expenses
Management fees (Note 3)		1,470,817			253,236			26,587
Administration fees		103,599			71,239			52,218
Custodian fees		90,159			51,848			60,792
Professional services		49,008			45,925			43,112
Registration fees		45,663			39,575			37,121
Shareholders’ services		34,125			26,358			25,892
Shareholders’ reports		30,896			10,233			5,930
Distribution fees (Open Shares)		14,557			101			140
Directors’ fees and expenses		14,087			8,690			5,204
Organization expenses (Note 2(f))		2,388			—			—
Amortization of offering costs (Note 2(f))		948			—			—
Other†		20,664			11,914			5,912
Total gross expenses		1,876,911			519,119			262,908
Management fees waived and expenses reimbursed		(385,436	)		(113,345	)		(203,884	)
Administration and shareholders’ services fees waived		(2,039	)		—			(18,750	)
Total net expenses		1,489,436			405,774			40,274
Net investment income (loss)		12,768,816			1,312,853			115,507
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions and Forward Currency Contracts
Net realized gain (loss) on:
Investments		(3,913,794	)		(414,373	)		(104,487	)
Foreign currency transactions and forward currency contracts		—			—			53,605
Total net realized gain (loss) on investments, foreign currency transactions and forward currency contracts		(3,913,794	)		(414,373	)		(50,882	)
Net change in unrealized appreciation (depreciation) on: Investments		15,763,093			80,159			34,624
Foreign currency translations and forward currency contracts		—			—			(58,701	)
Total net change in unrealized appreciation (depreciation) on investments, foreign currency translations and forward currency contracts		15,763,093			80,159			(24,077	)
Net realized and unrealized gain (loss) on investments,foreign currency transactions and forward currency contracts		11,849,299			(334,214	)		(74,959	)
Net increase (decrease) in net assets resulting from operations	$	24,618,115		$	978,639		$	40,548
* Net of foreign withholding taxes of	$	—		$	—		$	15
† Includes interest on line of credit of	$	—		$	—		$	200

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			Year Ended
	December 31,			December 31,
	2016			2015
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	12,768,816		$	11,177,779
Net realized gain (loss) on investments, foreign currency transactions and forward currency contracts		(3,913,794	)		(2,509,607	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency translations and forward currency contracts		15,763,093			(11,499,834	)
Net increase (decrease) in net assets resulting from operations		24,618,115			(2,831,662	)
Distributions to shareholders
From net investment income
Institutional Shares		(12,499,252	)		(11,082,202	)
Open Shares		(258,296	)		(92,905	)
R6 Shares		(11,198	)		—
Return of capital
Institutional Shares		—			(2,650	)
Open Shares		—			(22	)
Net decrease in net assets resulting from distributions		(12,768,746	)		(11,177,779	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		95,408,716			103,760,701
Open Shares		9,863,972			590,855
R6 Shares		1,681,000			—
Net proceeds from reinvestment of distributions
Institutional Shares		11,795,283			10,752,436
Open Shares		201,575			66,616
R6 Shares		11,198			—
Cost of shares redeemed
Institutional Shares		(59,510,739	)		(42,854,354	)
Open Shares		(4,667,884	)		(398,515	)
Net increase (decrease) in net assets from capital stock transactions		54,783,121			71,917,739
Redemption fees (Note 2(h))
Institutional Shares		19			714
Open Shares		3			299
Net increase in net assets from redemption fees		22			1,013
Total increase (decrease) in net assets		66,632,512			57,909,311
Net assets at beginning of period		245,679,522			187,770,211
Net assets at end of period*	$	312,312,034		$	245,679,522
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	(28,231	)	$	(28,301	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		52,508,225			37,885,592
Shares sold		19,776,933			21,150,137
Shares issued to shareholders from reinvestment of distributions		2,460,421			2,213,078
Shares redeemed		(12,491,265	)		(8,740,582	)
Net increase (decrease)		9,746,089			14,622,633
Shares outstanding at end of period		62,254,314			52,508,225
Open Shares
Shares outstanding at beginning of period		421,909			367,106
Shares sold		2,063,436			122,785
Shares issued to shareholders from reinvestment of distributions		41,726			13,627
Shares redeemed		(969,601	)		(81,609	)
Net increase (decrease)		1,135,561			54,803
Shares outstanding at end of period		1,557,470			421,909
R6 Shares†
Shares outstanding at beginning of period		—
Shares sold		345,949
Shares issued to shareholders from reinvestment of distributions		2,307
Net increase (decrease)		348,256
Shares outstanding at end of period		348,256

† The inception date for the R6 Shares was November 3, 2016.

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

30  Annual Report

Lazard US Short Duration Fixed Income Portfolio						Lazard Global Fixed Income Portfolio
Year Ended			Year Ended			Year Ended			Year Ended
December 31,			December 31,			December 31,			December 31,
2016			2015			2016			2015
$	1,312,853		$	1,174,056		$	115,507		$	128,031
	(414,373	)		(507,922	)		(50,882	)		(240,152	)
	80,159			(676,638	)		(24,077	)		(148,224	)
	978,639			(10,504	)		40,548			(260,345	)
	(914,257	)		(664,052	)		(66,063	)		—
	(291	)		(188	)		(609	)		—
	—			—			—			—
	(398,178	)		(508,960	)		(48,389	)		(126,858	)
	(127	)		(144	)		(446	)		(1,173	)
	(1,312,853	)		(1,173,344	)		(115,507	)		(128,031	)
	26,780,847			25,424,572			882,388			1,251,885
	31,810			87			2,014			2,586
	—			—			—			—
	1,216,009			1,003,241			114,473			127,008
	418			528			1,055			1,013
	—			—			—			—
	(27,638,140	)		(36,799,462	)		(2,451,240	)		(1,696,122	)
	(15,123	)		(10,092	)		(24,760	)		—
	375,821			(10,381,126	)		(1,476,070	)		(313,630	)
	—			2			—			2
	—			1			—			—
	—			3			—			2
	41,607			(11,564,971	)		(1,551,029	)		(702,004	)
	103,176,446			114,741,417			5,851,160			6,553,164
$	103,218,053		$	103,176,446		$	4,300,131		$	5,851,160
$	(79,634	)	$	(112,388	)	$	(95,855	)	$	(75,332	)
	10,433,735			11,477,378			663,320			698,777
	2,706,917			2,549,311			96,230			137,334
	122,938			100,774			12,685			14,136
	(2,794,805	)		(3,693,728	)		(274,308	)		(186,927	)
	35,050			(1,043,643	)		(165,393	)		(35,457	)
	10,468,785			10,433,735			497,927			663,320
	2,688			3,637			6,452			6,051
	3,210			9			221			288
	42			53			117			113
	(1,528	)		(1,011	)		(2,832	)		—
	1,724			(949	)		(2,494	)		401
	4,412			2,688			3,958			6,452

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 period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	4.64		$	4.91		$	5.01		$	5.01		$	4.78
Income (loss) from investment operations:
Net investment income (loss) (a)		0.23			0.24			0.26			0.30			0.33
Net realized and unrealized gain (loss)		0.23			(0.27	)		(0.09	)		—	(b)		0.23
Total from investment operations		0.46			(0.03	)		0.17			0.30			0.56
Less distributions from:
Net investment income		(0.23	)		(0.24	)		(0.27	)		(0.30	)		(0.33	)
Return of capital		—			—	(b)		—			—			—
Total distributions		(0.23	)		(0.24	)		(0.27	)		(0.30	)		(0.33	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	4.87		$	4.64		$	4.91		$	5.01		$	5.01
Total Return (c)		10.09	%		–0.71	%		3.31	%		6.17	%		12.02	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	302,997		$	243,712		$	185,959		$	175,154		$	182,749
Ratios to average net assets:
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Gross expenses		0.69	%		0.69	%		0.71	%		0.73	%		0.71	%
Net investment income (loss)		4.78	%		4.94	%		5.28	%		6.00	%		6.67	%
Portfolio turnover rate		14	%		17	%		28	%		22	%		26	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each period		12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	4.66		$	4.93		$	5.03		$	5.04		$	4.80
Income (loss) from investment operations:
Net investment income (loss) (a)		0.21			0.23			0.25			0.29			0.32
Net realized and unrealized gain (loss)		0.24			(0.27	)		(0.10	)		(0.01	)		0.24
Total from investment operations		0.45			(0.04	)		0.15			0.28			0.56
Less distributions from:
Net investment income		(0.22	)		(0.23	)		(0.25	)		(0.29	)		(0.32	)
Return of capital		—			—	(b)		—			—			—
Total distributions		(0.22	)		(0.23	)		(0.25	)		(0.29	)		(0.32	)
Redemption fees		—	(b)		—	(b)		—			—			—	(b)
Net asset value, end of period	$	4.89		$	4.66		$	4.93		$	5.03		$	5.04
Total Return (c)		9.74	%		–0.98	%		3.01	%		5.64	%		11.89	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	7,618		$	1,968		$	1,811		$	2,620		$	4,249
Ratios to average net assets:
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Gross expenses		1.18	%		1.69	%		1.55	%		1.41	%		1.24	%
Net investment income (loss)		4.44	%		4.65	%		5.00	%		5.69	%		6.37	%
Portfolio turnover rate		14	%		17	%		28	%		22	%		26	%

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

32   Annual Report

	For the Period
Selected data for a share of capital	11/3/16* to
stock outstanding throughout the period	12/31/16
R6 Shares
Net asset value, beginning of period	$	4.84
Income (loss) from investment operations:
Net investment income (loss) (a)		0.04
Net realized and unrealized gain (loss)		0.03
Total from investment operations		0.07
Less distributions from:
Net investment income		(0.04	)
Total distributions		(0.04	)
Net asset value, end of period	$	4.87
Total Return (c)		1.37	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,697
Ratios to average net assets (d):
Net expenses		0.55	%
Gross expenses		1.73	%
Net investment income (loss)		4.71	%
Portfolio turnover rate		14	%

*	The inception date for the R6 Shares was November 3, 2016.
(a)	Net investment income (loss) has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Return for a period of less than one year is not annualized.
(d)	Annualized for a period of less than one year except for non-recurring expenses.

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

Annual Report  33

LAZARD US SHORT DURATION FIXED INCOME PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	9.89		$	9.99		$	10.03		$	10.31		$	10.23
Income (loss) from investment operations:
Net investment income (loss) (a)		0.13			0.10			0.09			0.11			0.14
Net realized and unrealized gain (loss)		(0.03	)		(0.09	)		(0.04	)		(0.25	)		0.12
Total from investment operations		0.10			0.01			0.05			(0.14	)		0.26
Less distributions from:
Net investment income		(0.09	)		(0.06	)		(0.05	)		(0.11	)		(0.14	)
Net realized gains		—			—			—			(0.03	)		(0.04	)
Return of capital		(0.04	)		(0.05	)		(0.04	)		—			—
Total distributions		(0.13	)		(0.11	)		(0.09	)		(0.14	)		(0.18	)
Redemption fees		—			—	(b)		—			—	(b)		—	(b)
Net asset value, end of period	$	9.86		$	9.89		$	9.99		$	10.03		$	10.31
Total Return (c)		1.00	%		0.05	%		0.49	%		–1.39	%		2.54	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	103,175		$	103,150		$	114,705		$	68,086		$	19,726
Ratios to average net assets:
Net expenses		0.40	%		0.40	%		0.40	%		0.40	%		0.40	%
Gross expenses		0.50	%		0.48	%		0.52	%		0.90	%		1.41	%
Net investment income (loss)		1.30	%		1.05	%		0.87	%		1.06	%		1.34	%
Portfolio turnover rate		157	%		57	%		46	%		161	%		77	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	9.90		$	10.01		$	10.03		$	10.31		$	10.23
Income (loss) from investment operations:
Net investment income (loss) (a)		0.10			0.17			0.06			0.06			0.14
Net realized and unrealized gain (loss)		(0.03	)		(0.09	)		(0.02	)		(0.23	)		0.09
Total from investment operations		0.07			0.08			0.04			(0.17	)		0.23
Less distributions from:
Net investment income		(0.07	)		(0.14	)		(0.02	)		(0.08	)		(0.11	)
Net realized gains		—			—			—			(0.03	)		(0.04	)
Return of capital		(0.03	)		(0.05	)		(0.04	)		—			—
Total distributions		(0.10	)		(0.19	)		(0.06	)		(0.11	)		(0.15	)
Redemption fees		—			—	(b)		—			—			—
Net asset value, end of period	$	9.87		$	9.90		$	10.01		$	10.03		$	10.31
Total Return (c)		0.70	%		0.77	%		0.38	%		–1.70	%		2.24	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	44		$	27		$	36		$	328		$	4
Ratios to average net assets:
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Gross expenses		31.22	%		42.51	%		17.62	%		8.10	%		38.11	%
Net investment income (loss)		1.00	%		1.68	%		0.60	%		0.65	%		1.32	%
Portfolio turnover rate		157	%		57	%		46	%		161	%		77	%

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

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

34  Annual Report

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	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	8.74		$	9.30		$	9.51		$	10.16		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.20			0.19			0.22			0.23			0.17
Net realized and unrealized gain (loss)		(0.17	)		(0.56	)		(0.21	)		(0.65	)		0.16
Total from investment operations		0.03			(0.37	)		0.01			(0.42	)		0.33
Less distributions from:
Net investment income		(0.12	)		—			(0.17	)		—			(0.07	)
Net realized gains		—			—			—			(0.01	)		—
Return of capital		(0.08	)		(0.19	)		(0.05	)		(0.22	)		(0.10	)
Total distributions		(0.20	)		(0.19	)		(0.22	)		(0.23	)		(0.17	)
Redemption fees		—			—	(b)		—			—	(b)		—
Net asset value, end of period	$	8.57		$	8.74		$	9.30		$	9.51		$	10.16
Total Return (c)		0.22	%		–4.03	%		0.08	%		–4.13	%		3.30	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	4,266		$	5,795		$	6,497		$	5,522		$	4,814
Ratios to average net assets (d):
Net expenses		0.75	%		0.76	%		0.80	%		0.80	%		0.80	%
Gross expenses		4.70	%		4.26	%		4.12	%		4.94	%		8.81	%
Net investment income (loss)		2.18	%		2.08	%		2.28	%		2.38	%		2.24	%
Portfolio turnover rate		47	%		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	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	8.74		$	9.30		$	9.51		$	10.16		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.17			0.16			0.19			0.20			0.15
Net realized and unrealized gain (loss)		(0.17	)		(0.56	)		(0.21	)		(0.65	)		0.16
Total from investment operations		—	(b)		(0.40	)		(0.02	)		(0.45	)		0.31
Less distributions from:
Net investment income		(0.10	)		—			(0.14	)		—			(0.06	)
Net realized gains		—			—			—			(0.01	)		—
Return of capital		(0.07	)		(0.16	)		(0.05	)		(0.19	)		(0.09	)
Total distributions		(0.17	)		(0.16	)		(0.19	)		(0.20	)		(0.15	)
Redemption fees		—			—			—	(b)		—			—
Net asset value, end of period	$	8.57		$	8.74		$	9.30		$	9.51		$	10.16
Total Return (c)		–0.07	%		–4.31	%		–0.22	%		–4.41	%		3.08	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	34		$	56		$	56		$	56		$	55
Ratios to average net assets (d):
Net expenses		1.05	%		1.06	%		1.10	%		1.10	%		1.10	%
Gross expenses		27.52	%		27.72	%		20.84	%		28.86	%		26.46	%
Net investment income (loss)		1.88	%		1.80	%		2.01	%		2.09	%		2.02	%
Portfolio turnover rate		47	%		60	%		78	%		66	%		47	%

*	The Portfolio commenced operations on March 30, 2012.
(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. Return for 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  35

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2016

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-three no-load portfolios (each referred to as a “Portfolio”). 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.

The Portfolios are operated as “diversified” funds, as defined in the 1940 Act.

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).

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—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 net asset value (“NAV”) per share.

Calculation of a Portfolio’s NAV may not take place contemporaneously with the determination of the prices of portfolio assets used in such calculation. Trad-

ing on Europe, Latin and South America and Far East securities exchanges and in over-the-counter markets ordinarily is completed well before the close of business on each business day in New York (i.e., a day on which the New York Stock Exchange (“NYSE”) is open). In addition, European or Far Eastern securities trading generally or in a particular country or countries may not take place on all business days in New York and on which the NAV of a Portfolio is calculated.

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

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

36  Annual Report

(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. A Portfolio amortizes premiums and accretes discounts on fixed-income securities using the effective yield method and mortgage-backed securities using the level yield method.

A Portfolio may be subject to taxes imposed by non-US 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 transactions and forward currency contracts represent 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 translations 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, 2016, the Global Fixed Income Portfolio traded in forward currency contracts.

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

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.

Annual Report  37

At December 31, 2016, 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	$	(3,002,562	)	$	(3,420,839	)
US Short Duration Fixed Income		(75,610	)		(92,136	)
Global Fixed Income		(11,563	)		—

* Non-expiring

Under current tax law, post-October capital losses or certain late-year ordinary 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, 2016, the following Portfolios elected to defer such losses as follows:

	Post-October		Late-Year
	Capital Loss		Ordinary Loss
Portfolio	Deferral		Deferral
US Short Duration Fixed Income	$	—	$	(42,923	)
Global Fixed Income		—		(127,570	)

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 (2013-2015), or expected to be taken in the Portfolios’ 2016 tax returns.

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

				Undistributed
				(Distributions in			Accumulated
	Paid in			Excess of) Net			Net Realized
Portfolio	Capital			Investment Income			Gain (Loss)
US Corporate Income	$	(1	)	$	—		$	1
US Short Duration Fixed Income		(398,304	)		32,754			365,550
Global Fixed Income		(48,836	)		(20,523	)		69,359

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2016		2015		2016		2015
US Corporate Income*	$	12,768,746	$	11,175,107	$	—	$	—
US Short Duration Fixed Income**		914,548		664,240		—		—
Global Fixed Income†		66,672		—		—		—

*	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 $398,305 and $509,104 in 2016 and 2015, respectively.
†	Global Fixed Income Portfolio had return of capital distributions of $48,835 and $128,031 in 2016 and 2015, respectively.

At December 31, 2016, the components of distributable earnings, on a tax basis, were as follows:

							Net Unrealized
	Undistributed			Undistributed			Appreciation
	Ordinary			Long-Term			(Depreciation)
	Income/			Capital Gain/			Including
	Deferred			Deferred			Foreign
Portfolio	Ordinary Losses			Capital Losses			Currency
US Corporate Income	$	89,879		$	(9,699,319	)	$	5,471,457
US Short Duration Fixed Income		(42,923	)		(167,746	)		(474,500	)
Global Fixed Income		(127,570	)		(11,563	)		(354,584	)

(f) Offering and Organizational Costs—Costs incurred by the Fund in connection with the offering of shares of a new Portfolio are deferred and amortized on a

38  Annual Report

straight line basis over a twelve-month period from the date of commencement of operations of the Portfolio. Organizational costs are expensed as incurred.

(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—Until August 15, 2016, the Portfolios, other than the US Short Duration Fixed Income Portfolio, imposed 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. As of August 15, 2016, redemption fees no longer apply to transactions in Portfolio shares.

(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 resulting from operations during the reporting period. Actual results could differ from those estimates.

(j) Net Asset Value—NAV per share for each class of each Portfolio is determined each day the NYSE is open for trading as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time). The Fund will not treat an intraday unscheduled disruption in NYSE trading as a closure of the NYSE, and will price its shares as of 4:00 p.m., if the particular disruption directly affects only the NYSE. 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.

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 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, 2017 if annualized operating expenses, exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Funds” (as defined in Form N-1A) and extraordinary expenses, and excluding shareholder redemption fees or other transaction fees, but including the management fee stated in the Management Agreement between the Investment Manager and the Fund, on behalf of the Portfolios, exceed the following percentages of the value of the Portfolios’ average daily net assets for the respective shares:

	Institutional			Open			R6
Portfolio	Shares			Shares			Shares
US Corporate Income		0.55	%		0.85	%		0.55	%
US Short Duration Fixed Income		0.40			0.70			N/A
Global Fixed Income		0.75			1.05			N/A

In addition to the Fee Reduction/Waiver, through May 1, 2017, to the extent the “Total Annual Fund Operating Expenses” (as defined in Form N-1A) of the R6 Shares of a Portfolio exceed the Total Annual Fund Operating Expenses of the Portfolio’s Institutional Shares (in

Annual Report  39

each case, not including management fees, custodian fees or other expenses related to the management of the Portfolio’s assets), the Investment Manager will bear the expenses of the R6 Shares in the amount of such excess.

During the year ended December 31, 2016, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:

	Institutional Shares				Open Shares
	Management		Expenses		Management		Expenses
Portfolio	Fees Waived		Reimbursed		Fees Waived		Reimbursed
US Corporate Income	$	360,892	$	—	$	19,222	$	—
US Short Duration Fixed Income		100,525		—		106		12,714
Global Fixed Income		26,306		162,924		281		14,373

	R6 Shares
	Management		Expenses
Portfolio	Fees Waived		Reimbursed
US Corporate Income	$	1,306	$	4,016

The aforementioned waivers and/or reimbursements are not subject to recoupment by the Investment Manager.

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, 2016, 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. During the year ended December 31, 2016, BFDS waived $2,039 of its fee for the US Corporate Income Portfolio.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2016, 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: (1) an annual retainer of $190,000, (2) an additional annual fee of $20,000 to the lead Independent Director (an “Independent Director” is a Director who is not an “interested person” (as defined in the 1940 Act) of the Fund), and (3) an additional annual fee of $10,000 to the Audit Committee Chair. Effective January 1, 2017, the aggregate compensation for Independent Directors for the Lazard Fund Complex is comprised of: (1) an annual retainer of $210,000, (2) an additional annual fee of $30,000 to the lead Independent Director, and (3) an additional annual fee of $20,000 to the Audit Committee Chair. The Independent Directors may be paid additional compensation for participation on ad hoc committees or other work performed on behalf of the Board. The Independent Directors also

40  Annual Report

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. Independent Directors’ fees are allocated among the portfolios in the Lazard Fund Complex at a rate of $5,000 per portfolio with the remainder allocated based upon each portfolio’s proportionate share of combined net assets. The Statements of Operations show the Independent 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, 2016 were as follows:

Portfolio	Purchases		Sales
US Corporate Income	$	94,827,212	$	36,235,816
US Short Duration Fixed Income		44,472,887		36,213,515
Global Fixed Income		2,137,802		3,229,391

	US Government and Treasury Securities
Portfolio	Purchases		Sales
US Short Duration Fixed Income		$129,395,228		$113,761,649
Global Fixed Income		247,075		271,398

For the year ended December 31, 2016, the Portfolios did not engage in any cross-trades in accordance with Rule 17a-7 under the 1940 Act, and no brokerage commissions were paid to affiliates of the Investment Manager or other affiliates of the Fund for portfolio transactions executed on behalf of the Fund.

6. Line of Credit

The Fund has a $50 million Line of Credit Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings was payable at the higher of the Federal Funds rate or One-Month LIBOR rate plus 1.00%, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.20% per annum fee 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, 2016, the following Portfolio had borrowings under the Agreement as follows:

								Number of
					Weighted			Days
	Average		Maximum		Average			Borrowings
	Daily Loan		Daily Loan		Interest			were
Portfolio	Balance*		Outstanding		Rate			Outstanding
Global Fixed Income	$	182,654	$	700,000		1.46	%		28

* 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. A Portfolio’s outstanding line of credit, if any, would be categorized as Level 2 (see Note 9).

7. Investment Risks

(a) Non-US Securities Risk—A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity.

(b) Emerging Market Risk—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. Investments in these countries may be subject to political, economic, legal, market and currency risks. The risks may include less protection of property rights and uncertain political and economic policies, the imposition of capital controls and/or foreign investment limitations by a country, nationalization of businesses and the imposition of sanctions by other countries, such as the US. Significant devaluation of emerging market currencies against the US dollar

Annual Report  41

may occur subsequent to acquisition of investments denominated in emerging market currencies.

(c) Foreign Currency Risk—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 Investment Manager does not intend to actively hedge the Portfolios’ foreign currency exposure.

(d) 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. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening.

Prices of bonds and other debt securities tend to move inversely with changes in interest rates. Typically, a rise in rates will adversely affect debt securities and, accordingly, will cause the value of a Portfolio’s investments in these securities to decline. Interest rate risk is usually greater for fixed-income securities with longer maturities or durations. A rise in interest rates (or the expectation of a rise in interest rates) may result in periods of volatility, decreased liquidity and increased redemptions, and, as a result, the Portfolio may have to liquidate portfolio securities at disadvantageous prices. Risks associated with rising interest rates are heightened given that interest rates in the US and other countries are at or near historic lows.

A Portfolio’s 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 a Portfolio’s 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 prices of high yield securities can fall in response to negative news about the issuer or its industry, or the economy in general to a greater extent than those of higher-rated securities. 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.

Some fixed-income securities may give the issuer the option to call, or redeem, the securities before their maturity. If securities held by a Portfolio are called during a time of declining interest rates (which is typically the case when issuers exercise options to call outstanding securities), the Portfolio may have to reinvest the proceeds in an investment offering a lower yield (and the Portfolio may not fully benefit from any increase in the value of its portfolio holdings as a result of declining interest rates).

(e) Mortgage-Related and Asset-Backed Securities Risk—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.

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,

42  Annual Report

these securities may provide a Portfolio with a less effective security interest in the related collateral than do mortgage-related securities.

(f) Derivatives Risk—Forward currency contracts, options, futures contracts and credit default swap agreements and other derivatives transactions, including those entered into for hedging purposes (i.e., seeking to protect Portfolio investments), may increase volatility, reduce returns, limit gains or magnify losses, perhaps substantially, particularly since most derivatives have a leverage component that provides investment exposure in excess of the amount invested. Forward currency contracts, swap agreements 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 in which a Portfolio may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related currency, interest rate, security or other reference asset. As such, a small investment could have a potentially large impact on the Portfolio’s performance. In fact, many derivatives may be subject to greater risks than those associated with investing directly in the underlying or other reference asset. Derivatives transactions incur costs, either explicitly or implicitly, which reduce returns, and costs of engaging in such transactions may outweigh any gains or any losses averted from hedging activities. Successful use of derivatives, whether for hedging or for other investment purposes, is subject to the Investment Manager’s ability to predict correctly movements in the direction of the relevant reference asset or market and, for hedging activities, correlation of the derivative instruments used with the investments seeking to be hedged. Use of derivatives transactions, even if entered into for hedging purposes, may cause a 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 assets and liabilities

• 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 transfers 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  43

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2016:

	Unadjusted
	Quoted Prices in
	Active Markets		Significant Other			Significant
	for Identical		Observable			Unobservable
	Assets and Liabilities		Inputs			Inputs		Balance as of
Description	(Level 1)		(Level 2)			(Level 3)		December 31, 2016
US Corporate Income Portfolio
Corporate Bonds*	$	—	$	299,175,412		$	—	$	299,175,412
Short-Term Investment		6,991,667		—			—		6,991,667
Total	$	6,991,667	$	299,175,412		$	—	$	306,167,079
US Short Duration Fixed Income Portfolio
Asset-Backed Securities*	$	—	$	17,286,247		$	—	$	17,286,247
Corporate Bonds*		—		36,432,693			—		36,432,693
Municipal Bonds		—		1,953,687			—		1,953,687
US Government Securities		—		23,687,816			—		23,687,816
US Treasury Securities		—		20,890,508			—		20,890,508
Short-Term Investment		2,187,152		—			—		2,187,152
Total	$	2,187,152	$	100,250,951		$	—	$	102,438,103
Global Fixed Income Portfolio
Assets:
Corporate Bonds*	$	—	$	1,776,529		$	—	$	1,776,529
Foreign Government Obligations*		—		1,633,480			—		1,633,480
Quasi Government Bonds*		—		50,008			—		50,008
Supranationals		—		312,990			—		312,990
US Municipal Bonds		—		269,127			—		269,127
US Treasury Securities		—		221,269			—		221,269
Short-Term Investment		205,972		—			—		205,972
Other Financial Instruments†
Forward Currency Contracts		—		76,165			—		76,165
Total	$	205,972	$	4,339,568		$	—	$	4,545,540
Liabilities:
Other Financial Instruments†
Forward Currency Contracts	$	—	$	(118,684	)	$	—	$	(118,684	)

*	Please refer to Portfolios of Investments (pages 13 through 25) 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, 2016.

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, 2016, the approximate average monthly notional exposure for derivative instruments was as follows:

Forward currency contracts $5,300,000

44  Annual Report

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2016:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$ 76,165
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$118,684

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2016 was:

	Amount
Realized Gain (Loss) on Derivatives
Foreign Exchange Risk:
Net realized gain (loss) on foreign currency transactions and forward currency contracts	$ 57,730
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on foreign currency translations and forward currency contracts	$(58,221)

See Note 2(c) 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, 2016.

As of December 31, 2016, 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, 2016:

Global Fixed Income Portfolio

			Net Amounts of
		Gross Amounts Offset	Assets Presented
	Gross Amounts of	in the Statement of	in the Statement of
Description	Recognized Assets	Assets and Liabilities	Assets and Liabilities
Forward Currency Contracts	$ 76,165	$ —	$ 76,165

				Amounts Not Offset in the
				Statement of Assets and Liabilities
	Net Amounts of
	Assets Presented
	in the Statement of			Financial			Collateral		Net Amounts of
Counterparty	Assets and Liabilities			Instruments			Received		Derivative Assets
Citibank NA		$	34,421	$	(34,421	)	$	—	$	—
HSBC Bank USA NA			34,575		(34,575	)		—		—
JPMorgan Chase Bank NA			7,169		—			—		7,169
Total		$	76,165	$	(68,996	)	$	—	$	7,169

Annual Report  45

			Net Amounts of
		Gross Amounts Offset	Liabilities Presented
	Gross Amounts of	in the Statement of	in the Statement of
Description	Recognized Liabilities	Assets and Liabilities	Assets and Liabilities
Forward Currency Contracts	$118,684	$ —	$118,684

				Amounts Not Offset in the
				Statement of Assets and Liabilities
	Net Amounts of
	Liabilities Presented
	in the Statement of			Financial			Collateral		Net Amounts of
Counterparty	Assets and Liabilities			Instruments			Pledged		Derivative Liabilities
Citibank NA		$	55,356	$	(34,421	)	$	—	$	20,935
HSBC Bank USA NA			63,328		(34,575	)		—		28,753
Total		$	118,684	$	(68,996	)	$	—	$	49,688

11. Recent Accounting Pronouncements

In October 2016, the U.S. Securities and Exchange Commission (the “SEC”) adopted new rules and amended existing rules (together, “final rules”) intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017.

Management is currently evaluating the impact that the adoption of the amendments to Regulation S-X will have on the Fund’s financial statements and related disclosures.

12. 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.

46  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 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 “Fund”), as of December 31, 2016, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. 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, 2016, 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, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the three 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 27, 2017

Annual Report  47

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 (63)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012)
		University of California, Berkeley School of Law, Lecturer (Spring 2017)
		Cornell Law School, Visiting Professor of Practice (2015 – 2016); previously, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)
Kenneth S. Davidson (71)	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 (54)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
		TIAA-CREF Funds (68 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 (45)	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. (72)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		Resource Americas, Inc., a real estate asset management company, Director (2016 – present)
		O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (69)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

48  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 (56)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (56)	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, 2017, 40 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  49

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 (44)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Christopher Snively (32)	Chief Financial Officer (March 2016)	Senior Vice President of the Investment Manager (since November 2015)
		Assurance Manager at PricewaterhouseCoopers LLP (2008 – November 2015)
Stephen St. Clair (58)	Treasurer (May 2003)	Vice President of the Investment Manager
Mark R. Anderson (46)	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 (41)	Assistant Secretary (February 2009)	Director (since February 2016, previously Senior Vice President), and Director of Legal Affairs (since July 2015) of the Investment Manager
Shari L. Soloway (35)	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)
Cesar A. Trelles (42)	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.

50  Annual Report

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

Tax Information

Year Ended December 31, 2016

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2016:

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 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  51

NOTES

52  Annual Report

NOTES

Annual Report  53

NOTES

54  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
LZDPS026  

Lazard Funds Annual Report

December 31, 2016

Real Asset Funds

Lazard US Realty Income Portfolio

Lazard US Realty Equity Portfolio

Lazard Global Realty Equity Portfolio

Lazard Global Listed Infrastructure Portfolio

Lazard Real Assets and Pricing Opportunities Portfolio

PRIVACY NOTICE

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 and credit history
	•  Assets and income
	•  Account transactions
	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 and applicable state laws. These measures include computer safeguards and secured files and buildings.
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 may 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.

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
8	Performance Overviews
12	Information About Your Portfolio’s Expenses
14	Portfolio Holdings Presented by Sector
15	Portfolios of Investments
15	Lazard US Realty Income Portfolio
16	Lazard US Realty Equity Portfolio
17	Lazard Global Realty Equity Portfolio
19	Lazard Global Listed Infrastructure Portfolio
21	Lazard Real Assets and Pricing Opportunities Portfolio
28	Notes to Portfolios of Investments
32	Statements of Assets and Liabilities
34	Statements of Operations
36	Statements of Changes in Net Assets
38	Financial Highlights
43	Notes to Financial Statements
59	Report of Independent Registered Public Accounting Firm
60	Board of Directors and Officers Information
63	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 each Portfolio’s summary prospectus contain the investment objectives, risks, charges, expenses and other information about each Portfolio of the Fund, which are not detailed in this report.

Distributed by Lazard Asset Management Securities LLC.

Annual Report  1

The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

In 2016, global equity markets generally performed well despite significant bouts of volatility caused by unexpected economic and political events. In Europe, returns were muted as the United Kingdom’s June vote to leave the European Union weighed on the pound sterling and UK assets. In December, Prime Minister Matteo Renzi’s resounding defeat in the Italian referendum on constitutional reform and his subsequent resignation added to uncertainty in the region. A surprise outcome to the US presidential election caused US stocks to rally sharply at year-end in anticipation of lower corporate taxes and regulatory reform. Meanwhile, emerging markets equities snapped their negative streak and ended the year firmly higher, primarily as the price of oil and other commodities stabilized.

In the first half of 2016, yields across most global bond markets fell due to uneven news flow and seesawing risk sentiment. However, yields increased toward the end of the year in response to inflationary pressures, higher oil prices, and strong economic data. The US Federal Reserve (Fed) delivered its long-awaited rate hike in December, and is widely expected to deliver additional hikes in 2017. In contrast, European monetary policy is expected to remain loose, based on announced asset purchase plans from the European Central Bank.

The US dollar continued to strengthen against other major currencies in 2016. The Japanese yen appreciated even after the Bank of Japan adopted a negative interest rate policy early in the year, but weakened considerably in November and December due to Japan’s widening interest rate differential with the United States. Over the year, the biggest currency laggards included the Mexican peso, which was hurt by Donald Trump’s election victory, and the Turkish lira, which was weighed down by a surprise coup attempt in Turkey.

At Lazard Asset Management, we strive to identify ways to help our clients achieve their investment goals. As such, we launched two mutual funds in 2016 with characteristics that we believe can help investors navigate a changing financial landscape.

As always, we appreciate your continued confidence in our investment management capabilities and we 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

In the United States, after a tough fourth quarter in which real estate investment trusts (REITs) were down over 3% (as represented by the FTSE NAREIT All Equity REITs^® Index) on the heels of higher interest rates, REITs posted returns of approximately 8% in 2016 which lagged broader equity returns of over 11% (as represented by the S&P 500^® Index). As such, 2016 marked the eighth consecutive year in which the REIT asset class posted positive returns. With eight years of positive performance and modest levels of new supply in certain sectors and submarkets (e.g., lodging, high-end apartments, and self-storage), we believe the real estate cycle is solidly in its mature phase, and likely in the later stages of that phase. However, commercial property fundamentals remain solid and should exhibit operating income growth exceeding inflation in 2017, which we believe should lead REITs to post positive earnings growth for the next few years. Furthermore, the potential for economic stimulus measures from the new administration in the form of tax reform and de-regulation could serve to extend this cycle. Specifically, commercial real estate generally benefits from stronger job and GDP growth, as well as household formations. Sustaining current growth levels would continue to drive new real estate demand, and have the ability to accelerate growth levels if higher confidence levels result in faster business spending and household formations. Recent data pointing to wage growth and heightened consumer confidence levels support this view and should drive consistent rent and occupancy gains into 2017, resulting in organically driven earnings growth and modest increases in real estate asset prices, both exceeding the rate of inflation. In addition, whether from a price/net asset value, price/funds from operations, or spreads over US Treasuries/corporate bonds, valuation levels, while not cheap, do not seem stretched, in our opinion.

Notwithstanding the recent rise in long-term rates, investor demand for yield has worked to drive property yields and borrowing costs down to near-decade lows. REIT’s access to debt, preferred equity, and common equity markets is abundant despite a heightened risk of refinancing in the commercial real estate mortgage market. While valuations have moved

upward over the last year, initial spreads relative to bonds and borrowing costs have remained at levels that continue to spur investor demand. Looking globally, concerns over Europe’s long-term growth potential and the political and economic uncertainty created by Brexit has led to a flow of capital into lower risk assets backed by stable developed markets currencies which has benefited US real estate. We see these conditions continuing for the foreseeable future, though there may be a likely pause in transaction activity until there is a bit more policy clarity from the new Trump administration.

While our outlook may suggest a generally benign-to-positive expectation for US REITs, a cautious and risk-balanced tone is warranted as macro uncertainty has increased after the US election and the Fed interest rate hike, and this will likely boost global capital markets volatility through the first half of 2017. The potential headwinds of higher interest rates from today’s levels also exacerbate this cautious tone; however, the positive underlying fundamentals of the real estate securities sector—growing demand, limited new supply, and low levels of debt—remain fully intact and should continue to drive predictable property level total returns.

We find compelling opportunities in the United States employing a barbell approach to stock selection. On one hand, we see good value in mall and office companies, which continue to trade near historic discounts to net asset value despite strong private bids for the underlying properties. On the other hand, we find investments in residential, storage, and health care companies very compelling given the attractive demand demographics that support a strong growth rate and limited new supply in the underlying markets.

In 2016, global real estate securities posted a 3.75% total return (as represented by the FTSE EPRA/NAREIT Global^® Index) as the asset class weathered an array of macro forces including changing government fiscal policies and stimulus measures, shifting political leadership, a stronger US dollar, and rising interest rates. The result was a flight toward high-quality real estate assets in large, gateway cities that are favored as safe-havens due to their percep-

Annual Report   3

tion of predictable cash flow, capital preservation, and attractive total returns.

Looking to 2017, many of these factors are likely to remain with added volatility from uncertainty surrounding President Trump’s policy initiatives and numerous elections in Europe. Despite this, the underpinnings for stable real estate markets driven by modest GDP growth, slowly increasing interest rates, and limited new construction financing are firm. In addition, the demand for global real estate continues to remain strong amidst pervasive low interest rates, a gradual uptick in inflation, and ample supply of debt for stabilized property. This combination should help support current valuation levels and drive real estate company earnings and dividend growth.

Globally, we see 2017 as strong for developed markets based on growth-oriented economic policies and an attempt to overhaul their respective trade agreements. In the United Kingdom we’re finding attractive valuations, considerably so in London-centric landlords that continue to trade at an attractive discount (in the aftermath of Brexit) to the replacement value of their underlying real estate portfolios.

In continental Europe, while the institutional grade property markets are solid and recent economic data points to a better-than-perceived economy, upcoming 2017 elections in the Netherlands, France, and Germany create enough uncertainty to cause us to view the market neutrally.

The developed Asian markets have been additional safe-haven markets even though real estate fundamentals in Australia, Hong Kong, and Singapore remain choppy. In particular, Singapore and Australia continue to offer investors strong dividend yields. Japan continues to be bolstered by government stimulus policies with developers better positioned than many Japanese REITs to provide earnings and NAV growth.

Turning to emerging markets, we expect 2017 to be volatile for emerging markets against the backdrop of expected subsequent interest rate hikes in the United States, a strengthening US dollar, and lack of clarity

around the stance of new government regimes in the United States, the United Kingdom, and some European countries. We see the best total return ideas in Mexico and selective Asian property markets. In China, we remain cautious as overheated residential prices and bulging credit markets create bubble risk even against a stabilizing economy with 6-7% GDP growth. We maintain a majority of our concentration in stocks trading at attractive discounts to our estimate of net asset values, and exhibiting strong growth at reasonable price characteristics.

Global Listed Infrastructure

Equity markets experienced significant volatility in 2016 with an array of unexpected economic and political events. In the United States, uncertainty over the Fed’s potential rate hike and the US presidential election raised investor anxiety throughout the year. A surprise outcome in the US elections caused a sharp rally in US stocks as investors were buoyed by the prospect of lower corporate taxes and regulatory reform. In Europe, the Brexit referendum wrong-footed financial markets across the globe, as the United Kingdom voted to leave the European Union after 43 years of membership. Concerns around the impact Brexit would have on trade and investment continued to weigh on the pound sterling and UK assets through the second half of the year. In December, the resounding defeat of the Italian referendum on constitutional reform and subsequent resignation of Prime Minister Matteo Renzi had been widely anticipated and continues the ongoing political uncertainty in Europe.

Lazard US Realty Income Portfolio

For the year ended December 31, 2016, the Lazard US Realty Income Portfolio’s Institutional Shares posted a total return of 8.01%, while Open Shares posted a total return of 7.58%, as compared with the 6.32% 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 of common and preferred securities helped relative performance, as did individual security selection. On average, the Portfolio was invested as follows: 75% in common securities

4  Annual Report

and 23% in preferred securities, with the remainder in cash and bonds. On a weighted average basis, both the Portfolio’s common and preferred stock holdings outperformed their respective indices.

In terms of individual securities, an overweight position in Communication Sales & Leasing, a communications infrastructure REIT, contributed most to relative performance. The company completed multiple acquisitions that were accretive to earnings and also helped diversify its asset and revenue base. An overweight position in Washington Prime Group, a mall REIT, was the second-largest contributor to relative performance as its shares rose sharply on M&A speculation following a CEO change. An overweight to STAG Industrial, an industrial REIT, was the third-largest contributor to relative performance. Industrials was the best performing property subsector, driven largely by limited new supply and growing ecommerce demand.

Detracting most from relative performance was an overweight position in NorthStar Realty Finance, a diversified REIT, which underperformed due to negative market sentiment towards its external management structure and diversified property portfolio. An overweight position in Ashford Hospitality Trust, a hotel REIT, hurt relative performance, as the company’s above-average financial leverage became an increasing concern with higher interest rates. An overweight in LaSalle Hotel Properties, a lodging REIT, was the third-largest detractor from relative performance. The company traded off in the midst of uncertainty over the near-term future of hotel fundamentals, exacerbated by its abandonment of providing earnings guidance.

Lazard US Realty Equity Portfolio

For the year ended December 31, 2016, the Lazard US Realty Equity Portfolio’s Institutional Shares posted a total return of 5.31%, while Open Shares posted a total return of 4.99%, as compared with the 8.63% return for the FTSE NAREIT All Equity REITs Index.

Both stock selection and subsector allocation detracted from the Portfolio’s performance relative to the index.

In terms of individual securities, the Portfolio benefited from an overweight in American Homes 4 Rent, a single family housing REIT. The company posted surprising gains in occupancy and operating margins. Also helping the Portfolio was an overweight position in Rexford Industrial Realty, a US-based industrial REIT, whose high-barrier Southern California markets yielded organic growth well in excess of the national average. Also among the top contributors to relative performance was an overweight in Sunstone Hotel Investors, a US hotel REIT, which rallied as Donald Trump’s presidential election spurred hope for an acceleration of business-related travel.

An overweight position in CBRE Group, a US commercial broker, hurt relative performance most, as rising interest rates raised concerns over future transaction volume. The second-largest detractor from relative performance was Realogy Holdings, a US residential broker, which similarly suffered as higher interest rates stoked investors’ concerns over future single family housing transactions. The third-largest detractor from relative performance was Public Storage, a storage REIT, which underperformed as its organic growth decelerated notably during the year.

Lazard Global Realty Equity Portfolio

For the year ended December 31, 2016, the Lazard Global Realty Equity Portfolio’s Institutional Shares posted a total return of 2.85%, while Open Shares posted a total return of 2.54%, as compared with the 3.75% return for the FTSE EPRA/NAREIT Global Index.

Currency contributed positively to relative performance but country allocation and individual security selection detracted from returns relative to the index.

In terms of individual securities, the Portfolio’s top contributor was an overweight position in Multiplan Empreendimentos Imobiliarios, a Brazilian mall owner, whose shares rallied on a combination of improving tenant metrics, unexpected mall acquisitions, and the Brazilian economy showing signs of a bottom. The second-leading contributor was an overweight position in Rexford Industrial Realty, a US-based industrial REIT, whose high-barrier Southern California markets yielded organic growth well in

Annual Report  5

excess of the national average. An overweight position in American Homes 4 Rent, a single family housing REIT, was the third-largest contributor to relative performance, due to strong gains in occupancy and operating margins.

An overweight position in Invincible Investment, a Japanese hotel REIT, hurt relative performance most, as the company is a tourism-focused hotel owner and as a result is very sensitive to appreciation in the yen, which was impacted heavily by Brexit. The Portfolio’s second-and third-largest detractors from relative performance were a pair of British REITs, Great Portland Estates and BigYellow Group. These companies saw their shares drop materially in the wake of the United Kingdom’s vote to leave the European Union, though neither company’s financial results have deteriorated.

Lazard Global Listed Infrastructure Portfolio

For the year ended December 31, 2016, the Lazard Global Listed Infrastructure Portfolio’s Institutional Shares posted a total return of 9.30%, while Open Shares posted a total return of 9.01%, as compared with the 11.81% return for the Custom Infrastructure Index (USD Hedged)¹ and 7.51% return for the MSCI World^® Index.

The Portfolio is passively hedged 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. The impact of this hedging was positive for the Portfolio for the year. Stock contributors are ranked on the basis of performance contribution in local currency terms.

US freight railway businesses CSX, Norfolk Southern, and Union Pacific were among the top contributors to performance during the year. At the beginning of the year, positive performance contributions were largely driven by the companies’ first quarter results, in which all of the railroads demonstrated their ability to generate significant productivity gains and cost reductions in the face of volume declines and mixed headwinds. All three railroads increased core prices above inflation. In the second half of the year, there were two key drivers for strong performance across

these businesses. First, improving carload volumes, which were largely due to a rise in coal volumes. This represented the first increase in coal volumes in eight quarters. Second, the market’s interpretation of the US election outcome as a positive driver for the US freight railway sector. President Donald Trump promised fiscal stimulus—which should raise carload volumes, lower tax rates, and protect the coal industry. Trump is also able to nominate three new Surface Transportation Board members. However, we believe Trump’s promises of trade protectionism would be negative for railway earnings. Specifically, in late November, CSX’s CFO raised fourth quarter earnings guidance, reflecting an asset sale and further progress in efficiency initiatives.

World-leading, France-based satellite operator Eutelsat (ETL) was the largest detractor to performance during the year. During May, ETL shares fell by more than a third, following the company’s third quarter sales and profit warning release. The result actually beat market expectations; however, ETL downgraded revenue and EBITDA (earnings before interest, tax, depreciation, and amortization) guidance for the next two fiscal-years. The reason for the revised outlook was two-fold. First was the loss of a Russian Pay-TV client in Europe. However, Europe is the most densely used satellite coverage area in the world and we would expect this client to be replaced within a 12-month period. The second reason for downgrading revenue and EBITDA was a softening of forecast demand for telecommunication data backhaul capacity in Latin America. New high throughput satellite operators can offer a similar functionality for telecommunications operators as a traditional geostationary satellite can offer, but at a less expensive cost. We believe that, over the next three years, overall growth will be subdued for Eutelsat in Latin America as the current book of data backhaul capacity is replaced by traditional video/Pay-TV. Thus, we view the downgrade as more of a timing issue rather than a permanent destruction of capital. Eutelsat still has 43 satellites; as such, the downgrade relates to only 3% of its business. We remain comfortable with our decision to increase our position in Eutelsat.

6  Annual Report

World-leading, Luxembourg-based satellite operator SES was also a key detractor to performance during the year. The fall in its share price was also two-fold. First, an overreaction to rival satellite operator Eutelsat’s cut in outlook, which the market interpreted as an industry-wide growth slowdown in satellite services. This was despite SES’s first quarter results where revenues, margins, and EBITDA all remained solid. Second, while the market was digesting the news relating to Eutelsat, SES announced it had moved to acquire 100% of its minority owned subsidiary O3b Networks (O3b), a HTS operator, announcing a large capital raising of € 1 billion. The issue price of the private placement of stock to O3b was a 15% discount to the previous trading price and almost a 30% discount to the average trading price only a month earlier. We took the opportunity of a lower share price to increase our position in SES. In October, the company’s shares continued to fall after lowering its fiscal year 2016 guid-

ance for both revenue and margin citing a modestly uncertain outlook on a number of fronts during its third quarter results. The area of most acute pain was wholesale point-to-point data which is now less than 2% of SES earnings. Assuming almost a full decline by the end of 2017, the impact to earnings per share would be low. We remain confident SES can generate growth in revenues, free cash flow, and dividends.

New Fund Launched: Lazard Real Assets and Pricing Opportunities Portfolio

We are pleased to announce the December 30, 2016 launch of the Lazard Real Assets and Pricing Opportunities Portfolio. Fund commentary is not available at this time due to the short interval between the Portfolio’s inception date and the end date of the period covered by this annual report. However, we look forward to providing you with a performance review of this Portfolio in the next Lazard Funds semi-annual report.

Notes to Investment Overviews:

All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of a Portfolio may have been waived or reimbursed by Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager’), State Street Bank and Trust Company, the Fund’s administrator (“State Street”), or Boston Financial Data Services, Inc., the Fund’s transfer and dividend disbursing agent (“BFDS”); without such waiver/reimbursement of expenses, 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, 2016; 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 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.

Annual Report  7

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, 2016

	Institutional Shares												Open Shares
	One			Five			Since			One			Five			Since
	Year			Years			Inception		†	Year			Years			Inception		†
US Realty Income Portfolio**		8.01	%		8.45	%		9.92	%		7.58	%		8.16	%		9.48	%
FTSE NAREIT All Equity REITs Index		8.63	%		11.98	%		14.02	%		8.63	%		11.98	%		8.06	%
Wells Fargo Hybrid and Preferred Securities REIT Index		3.65	%		6.86	%		7.31	%		3.65	%		6.86	%		10.89	%
Hybrid Index		6.32	%		9.56	%		10.84	%		6.32	%		9.56	%		9.99	%
S&P 500 Index		11.96	%		14.66	%		16.20	%		11.96	%		14.66	%		9.18	%

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

8  Annual Report

Lazard US Realty Equity Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2016

	Institutional Shares										Open Shares
		One Year		Five Years		Since   Inception		†	One Year		Five Years			Since Inception		†
US Realty Equity Portfolio**		5.31	%	11.24	%		14.69	%	4.99	%		10.95	%		18.89	%
FTSE NAREIT All Equity REITs Index		8.63	%	11.98	%		14.05	%	8.63	%		11.98	%		15.29	%

*	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.

Annual Report  9

Lazard Global Realty Equity Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2016

	Institutional Shares								Open Shares
		One Year		Five Years		Since Inception		†		One Year		Five Years		Since Inception		†
Global Realty Equity Portfolio**		2.85	%	10.78	%		10.22	%		2.54	%	10.45	%		13.52	%
FTSE EPRA/NAREIT Global Index		3.75	%	8.88	%		9.64	%		3.75	%	8.88	%		11.19	%
Global Realty Linked Index		3.75	%	10.36	%		10.11	%		3.75	%	10.36	%		11.15	%

*	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 created by the Portfolio’s Investment Manager and links the performance of the FTSE EPRA/NAREIT Global ex-US® Index for all periods through August 14, 2013 (when the Portfolio’s benchmark index changed) 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.

10  Annual Report

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, 2016

	One Year			Five Years			Since   Inception		†
Institutional Shares**		9.30	%		16.05	%		11.99	%
Open Shares**		9.01	%		15.71	%		11.64	%
The Custom Infrastructure Index (USD Hedged)		11.81	%		12.55	%		9.31	%
MSCI World Index		7.51	%		10.41	%		8.17	%

*	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 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.

Annual Report  11

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, 2016 through December 31, 2016 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.

12  Annual Report

Portfolio	Beginning Account Value 7/1/16		Ending Account Value 12/31/16		Expenses Paid During Period* 7/1/16 - 12/31/16		Annualized Expense Ratio During Period 7/1/16 - 12/31/16
US Realty Income†
Institutional Shares
Actual	$	1,000.00	$	1,006.50	$	5.09		1.01	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.06	$	5.13		1.01	%
Open Shares
Actual	$	1,000.00	$	1,005.00	$	6.60		1.31	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.55	$	6.65		1.31	%
US Realty Equity
Institutional Shares
Actual	$	1,000.00	$	966.30	$	5.19		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.86	$	5.33		1.05	%
Open Shares
Actual	$	1,000.00	$	964.60	$	6.57		1.33	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.45	$	6.75		1.33	%
Global Realty Equity
Institutional Shares
Actual	$	1,000.00	$	951.40	$	4.91		1.00	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.11	$	5.08		1.00	%
Open Shares
Actual	$	1,000.00	$	950.30	$	6.37		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.60	$	6.60		1.30	%
Global Listed Infrastructure†
Institutional Shares
Actual	$	1,000.00	$	1,057.30	$	5.02		0.97	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.26	$	4.93		0.97	%
Open Shares
Actual	$	1,000.00	$	1,056.60	$	6.31		1.22	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.00	$	6.19		1.22	%

*	Expenses are equal to the annualized expense ratio, net of expense waivers and reimbursements, of each Share class multiplied by the average account value over the period, multiplied by 184/366 (to reflect one-half year period).
†	Excludes impact of the custodian out-of-pocket expenses that were reimbursed to the Portfolio during the current period. Refer to Note 3 in the Notes to Financial Statements.

Annual Report  13

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2016

Sector*	Lazard US Realty Income Portfolio			Lazard US Realty Equity Portfolio			Lazard Global Realty Equity Portfolio			Lazard Global Listed Infrastructure Portfolio			Lazard Real Assets and Pricing Opportunities Portfolio
Consumer Discretionary		—	%		—	%		—	%		9.7	%		5.7	%
Consumer Staples		—			—			—			—			2.8
Energy		—			—			—			4.9			6.1
Financials		10.3			1.3			—			—			3.9
Health Care		—			—			—			—			3.0
Industrials		—			—			—			49.9			11.2
Information Technology		—			—			—			—			2.0
Materials		—			—			—			—			2.8
Real Estate		89.7			97.6			97.4			—			19.6
Telecommunication Services		—			—			—			—			1.7
Utilities		—			—			—			28.9			7.2
Exchange-Traded Notes		—			—			—			—			11.9
Sovereign Debt		—			—			—			—			12.2
US Treasury Securities		—			—			—			—			9.9
Short-Term Investments		—			1.1			2.6			6.6			—
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

14  Annual Report

The Lazard Funds, Inc. Portfolios of Investments December 31, 2016

Description	Shares		Fair Value
Lazard US Realty Income Portfolio
Preferred Stocks | 30.6%
Equity Real Estate Investment Trusts (REITs) | 29.3%
Alexandria Real Estate Equities, Inc., Series D, 7.000%		37,246	$	1,274,558
American Homes 4 Rent, Series E, 6.350%		31,176		764,124
Ashford Hospitality Prime, Inc., Series b, 5.500%		43,591		932,412
Ashford Hospitality Trust, Inc., Series G, 7.375%		24,490		566,699
CBL & Associates Properties, Inc., Series D, 7.375%		33,264		813,305
City Office REIT, Inc., Series A, 6.625%		9,600		218,880
DDR Corp., Series K, 6.250%		22,541		537,152
Digital Realty Trust, Inc., Series G, 5.875%		43,838		1,049,043
Equity LifeStyle Properties, Inc., Series C, 6.750%		4,300		108,016
Kilroy Realty Corp., Series H, 6.375%		17,700		443,031
Kimco Realty Corp., Series J, 5.500%		38,700		905,193
National Retail Properties, Inc., Series F, 5.200%		15,300		330,174
Pebblebrook Hotel Trust, Series C, 6.500%		36,949		898,230
PS Business Parks, Inc., Series U, 5.750%		45,223		1,052,791
Public Storage, Series E, 4.900%		25,900		546,490
Taubman Centers, Inc., Series K, 6.250%		26,467		655,058
VEREIT, Inc., Series F, 6.700%		27,405		693,073
Washington Prime Group, Inc., Series I, 6.875%		8,900		220,720
				12,008,949
Mortgage Real Estate Investment Trusts (REITs) | 1.3%
Apollo Commercial Real Estate Finance, Inc.,
Series A, 8.625%		21,300		538,038
Total Preferred Stocks (Cost $12,256,863)				12,546,987

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

Description	Shares		Fair Value
Real Estate Investment Trusts | 68.2%
Equity Real Estate Investment Trusts (REITs) | 59.4%
American Farmland Co.		154,861	$	1,234,242
AvalonBay Communities, Inc.		6,657		1,179,288
Communications Sales & Leasing, Inc.		57,979		1,473,246
DDR Corp.		45,541		695,411
Education Realty Trust, Inc.		22,324		944,305
EPR Properties		7,549		541,792
Essex Property Trust, Inc.		8,334		1,937,655
Extra Space Storage, Inc.		9,400		726,056
Farmland Partners, Inc.		74,570		832,201
MGM Growth Properties LLC, Class A		56,334		1,425,813
National Health Investors, Inc.		15,991		1,186,052
National Storage Affiliates Trust		86,808		1,915,853
Pennsylvania Real Estate Investment Trust		43,050		816,228
Physicians Realty Trust		99,483		1,886,198
Retail Opportunity Investments Corp.		42,751		903,329
Simon Property Group, Inc.		7,246		1,287,397
Spirit Realty Capital, Inc.		37,800		410,508
STAG Industrial, Inc. Series B		8,600		214,570
Sun Communities, Inc.		16,810		1,287,814
The Macerich Co.		8,300		587,972
Ventas, Inc.		7,100		443,892
VEREIT, Inc.		219,422		1,856,310
Vornado Realty Trust		5,400		563,598
				24,349,730
Mortgage Real Estate Investment Trusts (REITs) | 8.8%
Blackstone Mortgage Trust, Inc., Class A		30,073		904,295
Colony Capital, Inc., Class A		71,475		1,447,369
Starwood Property Trust, Inc.		57,858		1,269,983
				3,621,647
Total Real Estate Investment Trusts (Cost $28,923,030)				27,971,377
Total Investments | 98.8% (Cost $41,179,893) (a)			$	40,518,364
Cash and Other Assets in Excess of Liabilities | 1.2%				505,245
Net Assets | 100.0%			$	41,023,609

Annual Report   15

Description	Shares		Fair Value
Lazard US Realty Equity Portfolio
Real Estate Investment Trusts | 98.9%
Equity Real Estate Investment Trusts (REITs) | 97.6%
Acadia Realty Trust		11,146	$	364,251
Alexandria Real Estate Equities, Inc.		16,566		1,840,980
American Homes 4 Rent, Class A		125,253		2,627,808
American Tower Corp.		59,445		6,282,148
Apartment Investment & Management Co., Class A		58,863		2,675,323
AvalonBay Communities, Inc.		20,642		3,656,730
Boston Properties, Inc.		30,891		3,885,470
Colony Starwood Homes		46,515		1,340,097
Digital Realty Trust, Inc.		25,710		2,526,265
Education Realty Trust, Inc.		44,623		1,887,553
Empire State Realty Trust, Inc., Class A		117,105		2,364,350
Equinix, Inc.		10,018		3,580,533
Equity LifeStyle Properties, Inc.		36,109		2,603,459
Essex Property Trust, Inc.		14,890		3,461,925
Extra Space Storage, Inc.		12,195		941,942
Federal Realty Investment Trust		12,890		1,831,798
General Growth Properties, Inc.		114,561		2,861,734
HCP, Inc.		54,375		1,616,025
Host Hotels & Resorts, Inc.		67,803		1,277,408
National Storage Affiliates Trust		101,258		2,234,764
Physicians Realty Trust		157,692		2,989,840
Prologis, Inc.		61,058		3,223,252
Public Storage		13,127		2,933,884

Description	Shares		Fair Value
Retail Opportunity Investments Corp.		102,144	$	2,158,303
Rexford Industrial Realty, Inc.		76,137		1,765,617
Simon Property Group, Inc.		34,792		6,181,495
SL Green Realty Corp.		9,481		1,019,682
Sun Communities, Inc.		15,761		1,207,450
Sunstone Hotel Investors, Inc.		97,556		1,487,729
Ventas, Inc.		38,341		2,397,079
VEREIT, Inc.		112,100		948,366
Weyerhaeuser Co.		28,805		866,742
				77,040,002
Mortgage Real Estate Investment Trusts (REITs) | 1.3%
Colony Capital, Inc., Class A		50,111		1,014,748
Total Real Estate Investment Trusts (Cost $68,879,945)				78,054,750
Short-Term Investment | 1.1%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $844,713)		844,713		844,713
Total Investments | 100.0% (Cost $69,724,658) (a)			$	78,899,463
Cash and Other Assets in Excess of Liabilities | 0.0%				32,473
Net Assets | 100.0%			$	78,931,936

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

16   Annual Report

Description	Shares		Fair Value
Lazard Global Realty Equity Portfolio
Common Stocks | 22.6%
Brazil | 1.7%
BR Properties SA (b)		9,740	$	22,512
Multiplan Empreendimentos Imobiliarios SA		2,400		43,639
				66,151
China | 1.8%
China Overseas Land & Investment, Ltd.		14,000		36,926
China Resources Land, Ltd.		16,000		36,074
				73,000
Germany | 3.8%
Vonovia SE		4,658		151,729
Hong Kong |  5.6%
Cheung Kong Property Holdings, Ltd.		18,500		112,187
China Overseas Property Holdings, Ltd.		6,000		1,026
Sun Hung Kai Properties, Ltd.		9,000		112,681
				225,894
Japan | 6.4%
Hulic Co., Ltd.		9,800		86,928
Mitsubishi Estate Co., Ltd.		2,000		39,645
Mitsui Fudosan Co., Ltd.		5,680		131,068
				257,641
Philippines | 1.0%
Megaworld Corp.		545,000		39,052
Singapore |0.8%
Frasers Centrepoint, Ltd.		30,500		33,165
United Arab Emirates | 1.0%
Emaar Properties PJSC		20,096		38,911
United States | 0.5%
CBRE Group, Inc., Class A (b)		662		20,846
Total Common Stocks (Cost $986,673)				906,389

Description	Shares		Fair Value
Real Estate Investment Trusts | 75.3%
Australia | 6.4%
Charter Hall Group		8,400	$	28,808
Investa Office Fund		6,503		22,180
Mirvac Group		38,088		58,462
Scentre Group		5,996		20,125
The GPT Group		11,230		40,722
Westfield Corp.		12,600		85,516
				255,813
Canada | 2.2%
Boardwalk Real Estate Investment Trust		2,456		88,992
France | 1.2%
Klepierre		649		25,491
Unibail-Rodamco SE		93		22,169
				47,660
Hong Kong | 3.6%
Link Real Estate Investment Trust		22,519		145,416
Italy | 0.7%
Beni Stabili SpA		47,369		27,060
Japan | 1.2%
Activia Properties, Inc.		10		47,147
Mexico | 1.5%
Fibra Uno Administracion SA de CV		41,000		62,658
Singapore | 0.4%
CapitaMall Trust		12,300		15,947
United Kingdom | 6.6%
Big Yellow Group PLC		7,441		63,152
Great Portland Estates PLC		13,542		111,368
Land Securities Group PLC		4,349		57,451
Workspace Group PLC		3,192		31,048
				263,019

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

Annual Report   17

Description	Shares		Fair Value
Lazard Global Realty Equity Portfolio (concluded)
United States | 51.5%
Alexandria Real Estate Equities, Inc.		320	$	35,562
American Homes 4 Rent, Class A		4,157		87,214
American Tower Corp.		576		60,872
AvalonBay Communities, Inc.		802		142,074
Boston Properties, Inc.		594		74,713
Colony Starwood Homes		1,202		34,630
Digital Realty Trust, Inc.		752		73,892
Education Realty Trust, Inc.		1,868		79,016
Empire State Realty Trust, Inc., Class A		3,769		76,096
Equinix, Inc.		198		70,767
Equity Lifestyle Properties, Inc.		1,035		74,624
Essex Property Trust, Inc.		525		122,062
General Growth Properties, Inc.		2,138		53,407
HCP, Inc.		1,700		50,524
Host Hotels & Resorts, Inc.		3,653		68,823
National Storage Affiliates Trust		4,104		90,575
NorthStar Realty Europe Corp.		4,213		52,957
Physicians Realty Trust		4,370		82,855
Prologis, Inc.		1,953		103,099
Public Storage		503		112,421

Description	Shares		Fair Value
Retail Opportunity Investments Corp.		4,268	$	90,183
Rexford Industrial Realty, Inc.		3,249		75,344
Simon Property Group, Inc.		1,269		225,463
Sunstone Hotel Investors, Inc.		4,236		64,599
Ventas, Inc.		937		58,581
				2,060,353
Total Real Estate Investment Trusts (Cost $2,874,709)				3,014,065
Short-Term Investment |  2.6%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $102,723)		102,723		102,723
Total Investments |  100.5% (Cost $3,964,105) (a)			$	4,023,177
Liabilities in Excess of Cash and Other Assets |  (0.5)%				(20,582	)
Net Assets |  100.0%			$	4,002,595

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

18   Annual Report

Description	Shares		Fair Value
Lazard Global Listed Infrastructure Portfolio
Common Stocks |  93.0%
Australia | 13.4%
AusNet Services		15,829,521	$	18,030,109
DUET Group		75,076,073		148,361,595
Macquarie Atlas Roads Group		17,202,864		62,681,486
Spark Infrastructure Group		54,701,662		93,825,320
Transurban Group		17,723,760		131,993,411
				454,891,921
France | 14.0%
Aeroports de Paris		877,219		93,977,243
Eutelsat Communications SA		8,301,921		160,710,073
Vinci SA		3,252,431		221,227,653
				475,914,969
Germany | 3.6%
Fraport AG		2,044,050		120,731,316
Italy | 21.8%
ASTM SpA		834,619		9,089,844
Atlantia SpA		11,188,572		261,798,579
Hera SpA		21,854,051		50,365,333
Italgas SpA (b)		17,273,152		67,966,524
Snam SpA		40,496,547		166,576,106
Societa Iniziative Autostradali e Servizi SpA		2,166,147		18,453,052
Terna SpA		35,969,866		164,549,596
				738,799,034
Luxembourg | 4.9%
SES SA		7,634,712		168,125,370
Portugal | 0.7%
REN - Redes Energeticas Nacionais SGPS SA		7,994,279		22,700,271

Description	Shares		Fair Value
Spain | 4.7%
Abertis Infraestructuras SA		11,510,390	$	161,045,063
United Kingdom | 4.0%
Pennon Group PLC		13,265,868		134,849,279
United States | 25.9%
Ameren Corp.		2,199,600		115,391,016
CSX Corp.		7,046,159		253,168,493
Genesee & Wyoming, Inc., Class A (b)		392,601		27,250,435
Norfolk Southern Corp.		1,496,437		161,719,947
PG&E Corp.		2,639,699		160,414,508
Union Pacific Corp.		1,550,000		160,704,000
				878,648,399
Total Common Stocks (Cost $3,104,527,277)				3,155,705,622
Short-Term Investment | 6.6%
State Street Institutional Treasury Money Market Fund, Premier Class, 0.40% (7 day yield) (Cost $223,433,371)		223,433,371		223,433,371
Total Investments | 99.6% (Cost $3,327,960,648) (a), (c)			$	3,379,138,993
Cash and Other Assets in Excess of Liabilities |  0.4%				14,634,713
Net Assets |  100.0%			$	3,393,773,706

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, 2016:

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
USD	55,985,823	AUD	53,805,178	CIT	03/21/17	$	2,180,645	$	—
USD	67,151,469	AUD	64,535,923	CIT	03/21/17		2,615,546		—
USD	22,780,708	AUD	22,296,305	HSB	03/21/17		484,403		—
USD	23,077,824	AUD	23,230,290	HSB	03/21/17		—		152,466
USD	43,419,671	AUD	41,731,595	HSB	03/21/17		1,688,076		—
USD	51,545,070	AUD	49,541,094	HSB	03/21/17		2,003,977		—
USD	80,014,383	AUD	76,903,573	HSB	03/21/17		3,110,810		—
USD	48,404,158	AUD	46,508,270	RBC	03/21/17		1,895,888		—
USD	24,827,892	AUD	24,794,662	SCB	03/21/17		33,230		—
USD	53,537,805	AUD	51,450,107	SSB	03/21/17		2,087,697		—
USD	216,658,627	EUR	219,226,326	BNP	03/21/17		—		2,567,698
USD	79,001,201	EUR	80,054,373	CAN	03/21/17		—		1,053,173
USD	138,644,133	EUR	140,222,133	CAN	03/21/17		—		1,578,000
USD	135,958,034	EUR	137,571,955	CIT	03/21/17		—		1,613,922
USD	173,554,502	EUR	175,614,721	CIT	03/21/17		—		2,060,219
USD	69,187,743	EUR	69,732,275	HSB	03/21/17		—		544,532
USD	75,426,744	EUR	75,967,847	HSB	03/21/17		—		541,103
USD	111,790,986	EUR	113,112,070	HSB	03/21/17		—		1,321,084
USD	165,589,322	EUR	167,546,165	HSB	03/21/17		—		1,956,843
USD	115,859,065	EUR	117,198,822	MEL	03/21/17		—		1,339,756
USD	214,027,867	EUR	216,457,643	RBC	03/21/17		—		2,429,776
USD	159,419,358	EUR	161,312,556	SSB	03/21/17		—		1,893,197
USD	4,221,279	GBP	4,096,638	CIT	03/21/17		124,641		—
USD	5,707,900	GBP	5,539,364	CIT	03/21/17		168,537		—
USD	6,282,468	GBP	6,317,914	CIT	03/21/17		—		35,446
USD	10,959,762	GBP	10,636,155	CIT	03/21/17		323,608		—
USD	14,611,408	GBP	14,179,979	CIT	03/21/17		431,429		—
USD	16,619,950	GBP	16,597,160	CIT	03/21/17		22,790		—
USD	4,427,807	GBP	4,370,363	HSB	03/21/17		57,444		—
USD	10,128,603	GBP	9,826,872	HSB	03/21/17		301,731		—
USD	17,256,475	GBP	16,742,406	HSB	03/21/17		514,070		—
USD	14,355,879	GBP	13,930,386	SSB	03/21/17		425,494		—
USD	33,160,661	GBP	32,177,812	SSB	03/21/17		982,849		—
Total gross unrealized appreciation/depreciation on Forward Currency Contracts						$	19,452,865	$	19,087,215

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

20  Annual Report

Description	Shares		Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (d)
Common Stocks | 65.0%
Australia | 2.9%
AusNet Services		9,597	$	10,931
BHP Billiton PLC		1,516		23,970
Credit Corp. Group, Ltd.		465		6,005
CSL, Ltd.		615		44,428
Domino’s Pizza Enterprises, Ltd.		112		5,253
DUET Group		47,242		93,357
Harvey Norman Holdings, Ltd.		3,718		13,778
Macquarie Atlas Roads Group		9,107		33,183
Ramsay Health Care, Ltd.		532		25,887
Telstra Corp., Ltd.		13,042		47,932
Transurban Group		10,047		74,823
				379,547
Austria | 0.0%
Conwert Immobilien Invest SE		338		5,771
Belgium | 0.7%
Aedifica SA REIT		197		14,740
Befimmo SA REIT		275		15,447
Cofinimmo SA REIT		335		38,314
Ontex Group NV		300		8,919
Warehouses De Pauw CVA REIT		158		14,119
				91,539
Canada | 4.3%
Atco, Ltd., Class I		204		6,786
Barrick Gold Corp.		1,668		26,697
BCE, Inc.		687		29,693
Canadian Apartment Properties REIT		900		21,028
Canadian Imperial Bank of Commerce		323		26,357
Canadian National Railway Co.		577		38,832
Chartwell Retirement Residences		3,200		34,916
CI Financial Corp.		1,391		29,910
Cominar Real Estate Investment Trust REIT		2,300		25,216
Constellation Software, Inc.		34		15,450
Dollarama, Inc.		628		46,015
Enbridge, Inc.		460		19,357
Granite Real Estate Investment Trust REIT		900		30,050
H&R Real Estate Investment Trust REIT		1,000		16,661
Killam Apartment Real Estate Investment Trust REIT		1,100		9,782

Description	Shares		Fair Value
Laurentian Bank of Canada		245	$	7,733
Magna International, Inc.		161		6,991
Pure Industrial Real Estate Trust REIT		5,504		22,915
Royal Bank of Canada		544		36,818
Smart Real Estate Investment Trust REIT		1,300		31,264
Suncor Energy, Inc.		986		32,239
Telus Corp.		479		15,251
The Toronto-Dominion Bank		739		36,448
				566,409
France | 2.2%
Aeroports de Paris		545		58,386
Eutelsat Communications SA		5,138		99,463
Gecina SA REIT		46		6,365
ICADE REIT		90		6,422
Mercialys SA REIT		659		13,350
Vinci SA		1,483		100,873
				284,859
Germany | 1.4%
alstria office REIT-AG		1,614		20,235
Deutsche EuroShop AG		202		8,223
Deutsche Wohnen AG		169		5,308
Fraport AG		1,120		66,152
GAGFAH SA (a)		384		6,569
Hamborner REIT AG		1,266		12,043
LEG Immobilien AG		154		11,964
TAG Immobilien AG		1,185		15,667
ThyssenKrupp AG		776		18,494
TLG Immobilien AG		644		12,134
				176,789
Hong Kong | 1.0%
Champion REIT		49,000		26,539
CLP Holdings, Ltd.		3,500		31,980
Hongkong Land Holdings, Ltd.		1,400		8,792
Hysan Development Co., Ltd.		1,000		4,133
Jardine Matheson Holdings, Ltd.		500		27,775
Link Real Estate Investment Trust		2,000		12,915
Prosperity REIT		24,000		9,471
Xinyi Glass Holdings, Ltd.		10,000		8,135
				129,740
Ireland | 0.4%
CRH PLC		1,136		39,408
Irish Residential Properties REIT PLC		5,031		6,196
Ryanair Holdings PLC Sponsored ADR (a)		96		7,993
				53,597

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

Annual Report  21

Description	Shares		Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (continued)
Italy | 3.0%
ASTM SpA		631	$	6,872
Atlantia SpA		4,296		100,521
Hera SpA		14,968		34,496
Italgas SpA (a)		8,750		34,430
Snam SpA		22,441		92,307
Societa Iniziative Autostradali e Servizi SpA		1,827		15,564
Terna SpA		22,485		102,861
				387,051
Japan | 2.8%
Central Japan Railway Co.		100		16,424
Daiwa House REIT Investment Corp. REIT		8		20,234
Electric Power Development Co., Ltd.		400		9,206
Frontier Real Estate Investment Corp. REIT		2		8,548
Industrial & Infrastructure Fund Investment Corp. REIT		6		28,595
Japan Excellent, Inc. REIT		4		5,075
Japan Logistics Fund, Inc. REIT		14		29,515
Japan Prime Realty Investment Corp. REIT		2		7,880
Japan Retail Fund Investment Corp.		2		4,049
JFE Holdings, Inc.		1,600		24,368
Kenedix Office Investment Corp. REIT		2		11,499
Mori Trust Sogo Reit, Inc. REIT		4		6,311
Morinaga & Co., Ltd.		500		20,794
Nichirei Corp.		300		6,207
Nippon Accommodations Fund, Inc. REIT		6		26,233
Nippon Steel & Sumitomo Metal Corp.		1,400		31,228
Nitto Denko Corp.		400		30,628
Nomura Real Estate Master Fund, Inc. REIT		5		7,564
Okamura Corp.		800		7,194
Premier Investment Corp. REIT		8		9,460
S Foods, Inc.		200		5,194
The Nisshin Oillio Group, Ltd.		2,000		9,206
TOC Co., Ltd.		500		3,991
Tokyu REIT, Inc.		4		5,069
West Japan Railway Co.		500		30,640
				365,112
Luxembourg | 1.0%
SES SA		4,664		102,707
Tenaris SA ADR		750		26,782
				129,489
Netherlands | 0.1%
NN Group NV		540		18,286

Description	Shares		Fair Value
New Zealand | 0.2%
Air New Zealand, Ltd.		6,602	$	10,067
Spark New Zealand, Ltd.		4,561		10,805
				20,872
Norway | 0.2%
Statoil ASA		1,788		32,580
Singapore | 1.4%
Ascendas Real Estate Investment Trust		10,000		15,675
CapitaMall Trust REIT		22,800		29,560
DBS Group Holdings, Ltd.		1,100		13,124
Lippo Malls Indonesia Retail Trust REIT		23,000		5,877
Mapletree Logistics Trust REIT		44,500		31,343
SATS, Ltd.		5,400		18,041
Singapore Airlines, Ltd.		4,100		27,308
United Overseas Bank, Ltd.		2,900		40,698
				181,626
Spain | 0.8%
Abertis Infraestructuras SA		7,088		99,170
Sweden | 0.1%
Wihlborgs Fastigheter AB		856		15,916
Switzerland | 1.0%
Actelion, Ltd.		34		7,362
Allreal Holding AG		97		14,412
Flughafen Zuerich AG		124		23,003
Mobimo Holding AG		101		25,267
PSP Swiss Property AG		73		6,309
Swiss Prime Site AG		622		50,912
				127,265
United Kingdom | 3.8%
BAE Systems PLC		2,042		14,885
Bellway PLC		450		13,692
Big Yellow Group PLC REIT		861		7,307
Centrica PLC		4,630		13,339
Compass Group PLC		809		14,912
CVS Group PLC		544		7,372
Debenhams PLC		6,519		4,599
Electrocomponents PLC		1,543		9,065
Grainger PLC		1,593		4,669
Great Portland Estates PLC REIT		924		7,599
Halma PLC		516		5,687

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

22  Annual Report

Description	Shares		Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (continued)
Hansteen Holdings PLC REIT		6,585	$	9,211
Land Securities Group PLC REIT		453		5,984
LondonMetric Property PLC REIT		8,719		16,709
National Grid PLC		6,012		70,312
Pennon Group PLC		7,612		77,377
Provident Financial PLC		228		8,016
Reckitt Benckiser Group PLC		387		32,715
Rentokil Initial PLC		5,954		16,288
Safestore Holdings PLC REIT		3,041		13,117
Shaftesbury PLC REIT		1,761		19,728
SSE PLC		2,349		44,904
UBM PLC		1,256		11,323
Unilever NV		831		34,154
Workspace Group PLC REIT		947		9,211
WPP PLC		1,419		31,758
				503,933
United States | 37.7%
3M Co.		301		53,750
Acadia Realty Trust REIT		600		19,608
Agree Realty Corp. REIT		1,000		46,050
Alphabet, Inc., Class A (a)		9		7,132
Ameren Corp.		1,490		78,165
American Campus Communities, Inc. REIT		800		39,816
American Electric Power Co., Inc.		440		27,702
American Homes 4 Rent, Class A REIT		1,700		35,666
American Tower Corp. REIT		800		84,544
American Water Works Co., Inc.		833		60,276
Anadarko Petroleum Corp.		366		25,521
Antero Resources Corp. (a)		966		22,846
Aon PLC		145		16,172
Apartment Investment & Management Co., Class A REIT		600		27,270
Apple Hospitality REIT, Inc.		1,700		33,966
Apple, Inc.		176		20,384
AT&T, Inc.		1,404		59,712
Automatic Data Processing, Inc.		302		31,040
AutoZone, Inc. (a)		31		24,483
AvalonBay Communities, Inc. REIT		300		53,145
Biogen, Inc. (a)		28		7,940
Brinker International, Inc.		214		10,599
Bristol-Myers Squibb Co.		214		12,506
Brixmor Property Group, Inc. REIT		600		14,652
Camden Property Trust REIT		300		25,221

Description	Shares		Fair Value
Campbell Soup Co.		742	$	44,869
Cardinal Health, Inc.		296		21,303
Carnival Corp.		301		15,670
Chevron Corp.		223		26,247
Cimarex Energy Co.		182		24,734
Columbia Property Trust, Inc. REIT		600		12,960
Concho Resources, Inc. (a)		136		18,034
Consolidated Edison, Inc.		500		36,840
Continental Resources, Inc. (a)		360		18,554
Copart, Inc. (a)		136		7,536
Core Laboratories NV		268		32,171
Cracker Barrel Old Country Store, Inc.		58		9,685
Crown Castle International Corp. REIT		800		69,416
Crown Holdings, Inc. (a)		359		18,873
CSX Corp.		2,650		95,214
CubeSmart REIT		800		21,416
Darden Restaurants, Inc.		484		35,196
Deere & Co.		249		25,657
Delek US Holdings, Inc.		797		19,184
Delta Air Lines, Inc.		180		8,854
Diamondback Energy, Inc. (a)		244		24,659
Digital Realty Trust, Inc. REIT		700		68,782
Douglas Emmett, Inc. REIT		800		29,248
DuPont Fabros Technology, Inc. REIT		300		13,179
Edison International		300		21,597
Education Realty Trust, Inc. REIT		1,000		42,300
Eli Lilly & Co.		105		7,723
Empire State Realty Trust, Inc., Class A REIT		300		6,057
EOG Resources, Inc.		364		36,800
EPR Properties REIT		400		28,708
EQT Corp.		345		22,563
Equifax, Inc.		66		7,803
Equinix, Inc. REIT		82		29,308
Equity Commonwealth REIT (a)		800		24,192
Equity Lifestyle Properties, Inc. REIT		700		50,470
Equity Residential REIT		400		25,744
Essex Property Trust, Inc. REIT		200		46,500
Everest Re Group, Ltd.		49		10,604
Extra Space Storage, Inc. REIT		400		30,896
Federal Realty Investment Trust REIT		300		42,633
First Potomac Realty Trust REIT		600		6,582
Gaming and Leisure Properties, Inc. REIT		500		15,310
General Dynamics Corp.		70		12,086
General Growth Properties, Inc. REIT		200		4,996
General Mills, Inc.		709		43,795

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

Annual Report  23

Description	Shares		Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (continued)
Genesee & Wyoming, Inc., Class A (a)		480	$	33,317
Getty Realty Corp. REIT		1,503		38,311
Gilead Sciences, Inc.		123		8,808
Halliburton Co.		596		32,238
Hasbro, Inc.		137		10,657
HCA Holdings, Inc. (a)		167		12,361
HCP, Inc. REIT		400		11,888
Healthcare Realty Trust, Inc. REIT		1,100		33,352
Helix Energy Solutions Group, Inc. (a)		2,413		21,283
Highwoods Properties, Inc. REIT		200		10,202
Hilltop Holdings, Inc.		300		8,940
HollyFrontier Corp.		586		19,197
Honeywell International, Inc.		152		17,609
Hormel Foods Corp.		152		5,291
Hospitality Properties Trust REIT		400		12,696
Huntington Ingalls Industries, Inc.		41		7,552
Intel Corp.		917		33,260
International Paper Co.		363		19,261
Intuit, Inc.		216		24,756
J.B. Hunt Transport Services, Inc.		171		16,599
Johnson & Johnson		492		56,683
KeyCorp.		621		11,346
Kinder Morgan, Inc.		4,700		97,337
Life Storage, Inc. REIT		100		8,526
LifePoint Health, Inc. (a)		136		7,725
Lockheed Martin Corp.		87		21,745
LTC Properties, Inc. REIT		300		14,094
Luminex Corp. (a)		307		6,211
LyondellBasell Industries NV, Class A		292		25,048
Mack-Cali Realty Corp. REIT		700		20,314
Marathon Oil Corp.		1,043		18,054
Marathon Petroleum Corp.		261		13,141
Marriott International, Inc., Class A		80		6,614
Marsh & McLennan Cos., Inc.		428		28,928
Martin Marietta Materials, Inc.		173		38,325
MasterCard, Inc., Class A		122		12,596
McCormick & Co., Inc.		71		6,626
McDonald’s Corp.		492		59,886
McKesson Corp.		71		9,972
Medical Properties Trust, Inc. REIT		600		7,380
Merck & Co., Inc.		106		6,240
Mettler-Toledo International, Inc. (a)		52		21,765
Microsoft Corp.		276		17,151

Description	Shares		Fair Value
Motorola Solutions, Inc.		267	$	22,132
National Health Investors, Inc. REIT		600		44,502
National HealthCare Corp.		100		7,579
National Retail Properties, Inc. REIT		100		4,420
New Senior Investment Group, Inc. REIT		600		5,874
Nielsen Holdings PLC		125		5,244
NIKE, Inc., Class B		245		12,453
Norfolk Southern Corp.		930		100,505
Northrop Grumman Corp.		76		17,676
NRG Energy, Inc.		520		6,375
O’Reilly Automotive, Inc. (a)		131		36,472
Omnicom Group, Inc.		662		56,343
Paychex, Inc.		406		24,717
PepsiCo, Inc.		318		33,272
PG&E Corp.		1,650		100,270
Physicians Realty Trust REIT		300		5,688
Piedmont Office Realty Trust, Inc. REIT		2,600		54,366
Pioneer Natural Resources Co.		138		24,850
PNC Financial Services Group, Inc.		99		11,579
Pool Corp.		365		38,084
Prudential Financial, Inc.		99		10,302
PS Business Parks, Inc. REIT		400		46,608
Public Storage REIT		100		22,350
Quality Care Properties, Inc. REIT (a)		80		1,240
Quest Diagnostics, Inc.		116		10,660
Quintiles IMS Holdings, Inc. (a)		106		8,061
Ramco-Gershenson Properties Trust REIT		300		4,974
Range Resources Corp.		900		30,924
Raytheon Co.		51		7,242
Realty Income Corp. REIT		600		34,488
Regency Centers Corp. REIT		200		13,790
Regions Financial Corp.		1,069		15,351
Republic Services, Inc.		1,073		61,215
Retail Opportunity Investments Corp. REIT		1,400		29,582
Rockwell Collins, Inc.		132		12,244
Ryman Hospitality Properties, Inc. REIT		100		6,301
Saul Centers, Inc. REIT		300		19,983
Schlumberger, Ltd.		381		31,985
Select Income REIT		700		17,640
Simon Property Group, Inc. REIT		200		35,534
Skyworks Solutions, Inc.		138		10,303
Southwest Gas Corp.		850		65,127
Spirit AeroSystems Holdings, Inc., Class A		185		10,795
Starbucks Corp.		763		42,362
Steel Dynamics, Inc.		699		24,870

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

24  Annual Report

Description	Shares		Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (continued)
STORE Capital Corp. REIT		700	$	17,297
Sun Communities, Inc. REIT		300		22,983
Sunstone Hotel Investors, Inc. REIT		500		7,625
Sysco Corp.		856		47,397
Tanger Factory Outlet Centers, Inc.		400		14,312
Taubman Centers, Inc. REIT		100		7,393
Terreno Realty Corp. REIT		500		14,245
Texas Instruments, Inc.		145		10,581
The Allstate Corp.		277		20,531
The Boeing Co.		88		13,700
The Ensign Group, Inc.		344		7,640
The Kroger Co.		713		24,606
The Macerich Co. REIT		300		21,252
The Southern Co.		156		7,674
The TJX Cos., Inc.		259		19,459
The Travelers Cos., Inc.		135		16,527
Thermo Fisher Scientific, Inc.		209		29,490
Tyson Foods, Inc., Class A		560		34,541
UDR, Inc. REIT		700		25,536
Union Pacific Corp.		910		94,349
UnitedHealth Group, Inc.		82		13,123
Universal Health Realty Income Trust REIT		200		13,118
Urstadt Biddle Properties, Inc. Class A REIT		800		19,288
Valero Energy Corp.		380		25,962
Ventas, Inc. REIT		600		37,512
Verizon Communications, Inc.		923		49,270
Visa, Inc., Class A		232		18,101
Vornado Realty Trust REIT		200		20,874
Vulcan Materials Co.		155		19,398
Wal-Mart Stores, Inc.		96		6,636
Washington Real Estate Investment Trust		900		29,421
Waste Management, Inc.		344		24,393
Waters Corp. (a)		91		12,229
Welltower, Inc. REIT		300		20,079
Westlake Chemical Corp.		339		18,981
Weyerhaeuser Co. REIT		592		17,813
				4,936,067
Total Common Stocks
(Cost $8,505,618)				8,505,618

Description		Shares	Fair Value
Closed-End Management Investment Companies | 0.2%
F&C Commercial Property Trust, Ltd.		5,398	$	9,074
The Picton Property Income, Ltd.		6,895		6,436
UK Commercial Property Trust, Ltd.		9,855		10,263
Total Closed-End Management Investment Companies (Cost $25,773)				25,773
Exchange-Traded Notes | 11.7%
Guernsey | 11.7%
iPath Bloomberg Commodity Index Total Return ETN (Cost $1,533,929)		63,307		1,533,929
Description	Security Currency	Principal Amount (000)	Fair Value
Foreign Government Obligations | 12.0%
Australia | 0.7%
Australia Government Bond, 3.000%, 09/20/25	AUD	88	$	88,776
Canada | 0.7%
Canadian Government Real Return Bond, 2.000%, 12/01/41	CAD	89		89,510
France | 2.3%
French Republic Government Bond OAT, 1.850%, 07/25/27	EUR	224		301,357
Italy | 0.9%
Italy Buoni Poliennali Del Tesoro, 3.100%, 09/15/26	EUR	92		118,154
Mexico | 1.7%
Mexican Udibonos, 2.500%, 12/10/20	MXN	847		228,061

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

Annual Report  25

Description	Security Currency	Principal Amount (000)	Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (continued)
Spain | 1.1%
Spain Government Inflation Linked Bond, 1.800%, 11/30/24	EUR	123	$	147,443
United Kingdom | 4.6%
United Kingdom Gilt Inflation Linked:
0.750%, 03/22/34	GBP	163		298,823
0.125%, 03/22/44	GBP	154		300,182
				599,005
Total Foreign Government Obligations (Cost $1,572,306)				1,572,306

Description	Security Currency	Principal Amount (000)	Fair Value
US Treasury Securities | 9.8%
Treasury Inflation Protected Securities:
1.125%, 01/15/21	USD	538	$	564,513
2.375%, 01/15/25	USD	130		148,707
2.500%, 01/15/29	USD	222		267,504
2.125%, 02/15/40	USD	243		300,550
Total US Treasury Securities (Cost $1,281,274)				1,281,274
Total Investments | 98.7% (Cost $12,918,900) (a), (c)			$	12,918,900
Cash and Other Assets in Excess of Liabilities | 1.3%				171,078
Net Assets | 100.0%			$	13,089,978

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

26  Annual Report

Lazard Real Assets and Pricing Opportunities Portfolio (concluded)

Forward Currency Contracts open at December 31, 2016:

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
USD	210,151	AUD	210,777	CIT	03/21/17		$	—		$	626
USD	90,477	AUD	90,719	HSB	02/16/17			—			242
USD	18,207	CAD	18,214	CIT	02/16/17			—			7
USD	80,417	CAD	80,448	HSB	02/16/17			—			32
USD	22,507	CHF	22,575	CIT	03/21/17			—			68
USD	88,121	EUR	88,366	CIT	03/21/17			—			245
USD	808,380	EUR	810,629	CIT	03/21/17			—			2,247
USD	543,428	EUR	544,664	HSB	02/16/17			—			1,237
USD	28,093	GBP	28,126	CIT	02/16/17			—			33
USD	8,925	GBP	8,935	CIT	03/21/17			—			10
USD	133,729	GBP	133,879	CIT	03/21/17			—			150
USD	535,210	GBP	535,878	HSB	02/16/17			—			669
USD	225,289	MXN	225,367	HSB	02/16/17			—			78
USD	2,095	PLN	2,097	HSB	02/16/17			—			2
Total gross unrealized appreciation/depreciation on Forward Currency Contracts							$	—		$	5,646

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

Annual Report  27

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2016

(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	$	41,197,621	$	864,887	$	1,544,144	$	(679,257	)
US Realty Equity		69,906,866		9,497,805		505,208		8,992,597
Global Realty Equity		4,004,784		265,699		247,306		18,393
Global Listed Infrastructure		3,370,220,273		196,671,673		187,752,953		8,918,720
Real Assets and Pricing Opportunities		12,918,900		—		—		—

(b)	Non-income producing security.
(c)	The Portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts.
(d)	Lazard Real Assets and Pricing Opportunities Portfolio’s Portfolio of Investments and accompanying notes are presented on a consolidated basis.

Security Abbreviations:

ADR	—	American Depositary Receipt
ETN	—	Exchange-Traded Notes
PJSC	—	Public Joint Stock Company
REIT	—	Real Estate Investment Trust

Currency Abbreviations:

AUD	—	Australian Dollar	GBP	—	British Pound Sterling
CAD	—	Canadian Dollar	MXN	—	Mexican New Peso
CHF	—	Swiss Franc	PLN	—	Polish Zloty
EUR	—	Euro	USD	—	United States Dollar

Counterparty Abbreviations:

BNP	—	BNP Paribas SA	MEL	—	The Bank of New York Mellon Corp.
CAN	—	Canadian Imperial Bank of Commerce	RBC	—	Royal Bank of Canada
CIT	—	Citibank NA	SCB	—	Standard Chartered Bank
HSB	—	HSBC Bank USA NA	SSB	—	State Street Bank and Trust Co.

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

28  Annual Report

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

Industry*	Lazard Global Realty Equity Portfolio			Lazard Global Listed Infrastructure Portfolio			Lazard Real Assets and Pricing Opportunities Portfolio
Aerospace & Defense		—	%		—	%		0.9	%
Airlines		—			—			0.4
Auto Components		—			—			0.1
Banks		—			—			1.6
Beverages		—			—			0.3
Biotechnology		—			—			0.5
Capital Markets		—			—			0.2
Chemicals		—			—			0.6
Commercial Services & Suppliers		—			—			0.9
Communications Equipment		—			—			0.2
Construction & Engineering		—			6.5			0.8
Construction Materials		—			—			0.7
Consumer Finance		—			—			0.1
Containers & Packaging		—			—			0.3
Distributors		—			—			0.3
Diversified Telecommunication Services		—			—			1.6
Electric Utilities		—			12.9			2.7
Electronic Equipment, Instruments & Components		—			—			0.1
Energy Equipment & Services		—			—			1.1
Equity Real Estate Investment Trusts (REITs)		75.3			—			18.6
Food & Staples Retailing		—			—			0.6
Food Products		—			—			1.3
Gas Utilities		—			2.0			0.8
Health Care Providers & Services		—			—			1.2
Hotels, Restaurants & Leisure		—			—			1.5
Household Durables		—			—			0.1
Household Products		—			—			0.3
Independent Power and Renewable Electricity Producers		—			—			0.1
Industrial Conglomerates		—			—			0.8
Insurance		—			—			0.9
Internet Software & Services		—			—			0.1
IT Services		—			—			0.7
Leisure Products		—			—			0.1
Life Sciences Tools & Services		—			—			0.6
Machinery		—			—			0.2
Media		—			9.7			2.3
Metals & Mining		—			—			1.1
Multiline Retail		—			—			0.5
Multi-Utilities		—			9.9			2.5
Oil, Gas & Consumable Fuels		—			4.9			4.9
Personal Products		—			—			0.3
Pharmaceuticals		—			—			0.6
Professional Services		—			—			0.1
Real Estate Management & Development		22.6			—			1.7

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

Annual Report  29

Industry*	Lazard Global Realty Equity Portfolio			Lazard Global Listed Infrastructure Portfolio			Lazard Real Assets and Pricing Opportunities Portfolio
Road & Rail		—	%		17.8	%		3.3	%
Semiconductors & Semiconductor Equipment		—			—			0.4
Software		—			—			0.4
Specialty Retail		—			—			0.6
Technology Hardware, Storage & Peripherals		—			—			0.2
Textiles, Apparel & Luxury Goods		—			—			0.1
Transportation Infrastructure		—			25.3			3.8
Water Utilities		—			4.0			1.1
Subtotal		97.9			93.0			65.2
Exchange-Traded Notes		—			—			11.7
Foreign Government Obligations		—			—			12.0
US Treasury Securities		—			—			9.8
Short-Term Investments		2.6			6.6			—
Total Investments		100.5	%		99.6	%		98.7	%

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

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

30  Annual Report

[This page intentionally left blank]

Annual Report  31

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2016	Lazard US Realty Income Portfolio			Lazard US Realty Equity Portfolio
ASSETS
Investments in securities, at fair value	$	40,518,364		$	78,899,463
Cash		628			—
Foreign currency, at fair value		—			—
Receivables for:
Capital stock sold		1,035			33,880
Dividends and interest		361,198			388,803
Investments sold		1,580,697			—
Accrued interest		—			—
Amount due from Investment Manager (Note 3)		—			—
Amount due from custodian (Note 3)		930			—
Gross unrealized appreciation on forward currency contracts		—			—
Deferred offering costs (Note 2(f))		—			—
Total assets		42,462,852			79,322,146
LIABILITIES
Payables for:
Management fees		21,805			52,917
Accrued administration fees		14,836			16,701
Accrued distribution fees		4,948			12,704
Accrued custodian fees		8,108			7,185
Accrued professional services		26,285			26,364
Investments purchased		24,988			—
Capital stock redeemed		167,332			263,811
Offering costs		—			—
Gross unrealized depreciation on forward currency contracts		—			—
Line of credit outstanding		1,163,000			—
Other accrued expenses and payables		7,941			10,528
Total liabilities		1,439,243			390,210
Net assets	$	41,023,609		$	78,931,936
NET ASSETS
Paid in capital	$	57,549,106		$	68,412,628
Undistributed (distributions in excess of) net investment income (loss)		—			—
Accumulated net realized gain (loss)		(15,863,968	)		1,344,503
Net unrealized appreciation (depreciation) on:
Investments		(661,529	)		9,174,805
Foreign currency translations and forward currency contracts		—			—
Net assets	$	41,023,609		$	78,931,936
Institutional Shares
Net assets	$	17,815,352		$	19,625,120
Shares of capital stock outstanding*		2,420,955			1,013,228
Net asset value, offering and redemption price per share	$	7.36		$	19.37
Open Shares
Net assets	$	23,208,257		$	59,306,816
Shares of capital stock outstanding*		3,161,749			3,050,064
Net asset value, offering and redemption price per share	$	7.34		$	19.44
Cost of investments in securities	$	41,179,893		$	69,724,658
Cost of foreign currency	$	—		$	—

*	$0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total.
(a)	Consolidated Statement of Assets and Liabilities.

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

32  Annual Report

Lazard Global Realty Equity Portfolio			Lazard Global Listed Infrastructure Portfolio			Lazard Real Assets and Pricing Opportunities Portfolio (a)
$	4,023,177		$	3,379,138,993		$	12,918,900
	—			—			101,400
	3			2,712,404			2,480
	—			17,826,378			—
	16,099			7,406,296			19,887
	—			—			—
	—			—			52,957
	16,258			—			28,568
	—			22,833			—
	—			19,452,865			—
	—			—			134,301
	4,055,537			3,426,559,769			13,258,493
	—			2,506,538			—
	8,079			116,622			—
	327			96,689			—
	11,041			92,692			—
	26,445			41,404			16,500
	—			8,078,194			—
	—			2,532,703			—
	—			—			134,301
	—			19,087,215			5,646
	—			—			—
	7,050			234,006			12,068
	52,942			32,786,063			168,515
$	4,002,595		$	3,393,773,706		$	13,089,978
$	3,993,574		$	3,269,897,342		$	13,089,978
	21,651			74,531,919			5,646
	(71,487	)		(2,062,478	)		—
	59,072			51,178,345			—
	(215	)		228,578			(5,646	)
$	4,002,595		$	3,393,773,706		$	13,089,978
$	2,442,817		$	2,931,161,127		$	13,089,978
	172,535			206,858,471			1,309,562
$	14.16		$	14.17		$	10.00
$	1,559,778		$	462,612,579			—
	110,297			32,579,713			—
$	14.14		$	14.20			—
$	3,964,105		$	3,327,960,648		$	12,918,900
$	4		$	2,719,359		$	2,480

Annual Report   33

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2016	Lazard US Realty Income Portfolio			Lazard US Realty Equity Portfolio
Investment Income (Loss)
Income
Dividends*	$	1,332,666		$	2,216,080
Expenses
Management fees (Note 3)		405,391			704,624
Distribution fees (Open Shares)		75,079			168,353
Custodian fees		49,139			45,546
Administration fees		60,925			67,730
Professional services		38,967			39,764
Shareholders’ reports		8,798			17,407
Registration fees		35,132			35,863
Directors’ fees and expenses		7,378			8,325
Shareholders’ services		29,257			36,345
Organization expenses (Note 2(f))		—			—
Other†		9,320			9,341
Total gross expenses		719,386			1,133,298
Management fees waived and expenses reimbursed		(85,494	)		(14,690	)
Administration fees waived		—			—
Reimbursement of custodian fees (Note 3)		(930	)		—
Total net expenses		632,962			1,118,608
Net investment income (loss)		699,704			1,097,472
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions and Forward Currency Contracts
Net realized gain (loss) on:
Investments		(7,000,121	)		1,617,975
Foreign currency transactions and forward currency contracts		—			—
Total net realized gain (loss) on investments, foreign currency transactions  and forward currency contracts		(7,000,121	)		1,617,975
Net change in unrealized appreciation (depreciation) on:
Investments		9,880,295			1,020,449
Foreign currency translations and forward currency contracts		—			—
Total net change in unrealized appreciation (depreciation) on investments, foreign currency translations and forward currency contracts		9,880,295			1,020,449
Net realized and unrealized gain (loss) on investments, foreign currency transactions and forward currency contracts		2,880,174			2,638,424
Net increase (decrease) in net assets resulting from operations	$	3,579,878		$	3,735,896
* Net of foreign withholding taxes of	$	—		$	—
† Includes interest on line of credit of	$	1,630		$	826

(a)	Consolidated Statement of Operations.
(b)	From the Portfolio’s commencement of operations on December 30, 2016.

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

34  Annual Report

Lazard Global Realty Equity Portfolio			Lazard Global Listed Infrastructure Portfolio			Lazard Real Assets and Pricing Opportunities Portfolio (a) (b)
$	130,752		$	97,308,482		$	—
	43,370			26,881,058			—
	4,327			1,244,810			—
	64,404			551,867			—
	51,093			448,793			—
	44,147			219,318			16,500
	2,348			196,280			—
	33,351			166,746			—
	5,197			106,798			2,356
	26,182			95,972			—
	—			—			9,712
	5,614			99,166			—
	280,033			30,010,808			28,568
	(204,996	)		—			(28,568	)
	(18,750	)		—			—
	—			(22,833	)		—
	56,287			29,987,975			—
	74,465			67,320,507			—
	51,922			37,907,672			—
	(14	)		85,106,819			—
	51,908			123,014,491			—
	86,948			86,176,981			—
	(145	)		(4,983,601	)		(5,646	)
	86,803			81,193,380			(5,646	)
	138,711			204,207,871			(5,646	)
$	213,176		$	271,528,378		$	(5,646	)
$	7,152		$	11,317,910		$	—
$	37		$	—		$	—

Annual Report  35

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

	Lazard US Realty Income Portfolio								Lazard US Realty Equity Portfolio
	Year Ended December 31, 2016				Year Ended December 31, 2015				Year Ended December 31, 2016				Year Ended December 31, 2015
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	699,704			$	5,496,514			$	1,097,472			$	1,459,207
Net realized gain (loss) on investments, foreign currency transactions and forward currency contracts			(7,000,121	)			(9,078,718	)			1,617,975				6,745,327
Net change in unrealized appreciation (depreciation) on investments, foreign currency translations and forward currency contracts			9,880,295				(8,478,364	)			1,020,449				(4,368,401	)
Net increase (decrease) in net assets resulting from operations			3,579,878				(12,060,568	)			3,735,896				3,836,133
Distributions to shareholders
From net investment income
Institutional Shares			(947,450	)			(2,328,929	)			(309,698	)			(388,970	)
Open Shares			(1,134,154	)			(2,647,759	)			(774,528	)			(1,212,464	)
From net realized gains
Institutional Shares			—				(1,172,590	)			(276,265	)			(1,323,795	)
Open Shares			—				(1,227,569	)			(860,553	)			(4,827,172	)
Return of capital
Institutional Shares			(42,957	)			—				—				—
Open Shares			(51,422	)			—				—				—
Net decrease in net assets resulting from distributions			(2,175,983	)			(7,376,847	)			(2,221,044	)			(7,752,401	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			1,946,921				13,886,139				3,069,870				5,414,090
Open Shares			1,187,060				20,321,841				12,642,246				23,669,007
Net proceeds from reinvestment of distributions
Institutional Shares			955,382				3,238,252				576,599				1,690,029
Open Shares			1,164,957				3,824,336				1,565,295				5,757,961
Cost of shares redeemed
Institutional Shares			(18,324,402	)			(42,092,318	)			(5,517,860	)			(6,912,046	)
Open Shares			(20,504,685	)			(61,283,643	)			(31,969,969	)			(39,361,469	)
Net increase (decrease) in net assets from capital stock transactions			(33,574,767	)			(62,105,393	)			(19,633,819	)			(9,742,428	)
Redemption fees (Note 2(h))
Institutional Shares			3				1,494				983				762
Open Shares			104				11,432				7				4,951
Net increase in net assets from redemption fees			107				12,926				990				5,713
Total increase (decrease) in net assets			(32,170,765	)			(81,529,882	)			(18,117,977	)			(13,652,983	)
Net assets at beginning of period			73,194,374				154,724,256				97,049,913				110,702,896
Net assets at end of period*		$	41,023,609			$	73,194,374			$	78,931,936			$	97,049,913
* Includes undistributed (distributions in excess of) net investment income (loss) of		$	—			$	347,518			$	—			$	—
(a) Consolidated Statement of Changes in Net Assets.
(b) The Portfolio commenced operations on December 30, 2016.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			4,614,237				7,953,633				1,116,969				1,106,356
Shares sold			270,587				1,669,318				156,260				268,008
Shares issued to shareholders from reinvestment of distributions			132,107				425,265				29,391				90,600
Shares redeemed			(2,595,976	)			(5,433,979	)			(289,392	)			(347,995	)
Net increase (decrease)			(2,193,282	)			(3,339,396	)			(103,741	)			10,613
Shares outstanding at end of period			2,420,955				4,614,237				1,013,228				1,116,969
Open Shares
Shares outstanding at beginning of period			5,692,814				10,454,927				3,995,207				4,494,866
Shares sold			164,138				2,368,278				641,672				1,168,358
Shares issued to shareholders from reinvestment of distributions			161,817				501,448				79,255				307,541
Shares redeemed			(2,857,020	)			(7,631,839	)			(1,666,070	)			(1,975,558	)
Net increase (decrease)			(2,531,065	)			(4,762,113	)			(945,143	)			(499,659	)
Shares outstanding at end of period			3,161,749				5,692,814				3,050,064				3,995,207

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

36  Annual Report

Lazard Global Realty Equity Portfolio								Lazard Global Listed Infrastructure Portfolio								Lazard Real Assets and Pricing Opportunities Portfolio (a)
Year Ended December 31, 2016				Year Ended December 31, 2015				Year Ended December 31, 2016				Year Ended December 31, 2015				Period Ended December 31, 2016 (b)
	$	74,465			$	92,981			$	67,320,507			$	48,927,552			$	—
		51,908				201,000				123,014,491				168,086,643				—
		86,803				(230,407	)			81,193,380				(68,185,142	)			(5,646	)
		213,176				63,574				271,528,378				148,829,053				(5,646	)
		(83,166	)			(132,219	)			(65,512,225	)			(167,086,540	)			—
		(43,091	)			(64,198	)			(10,807,540	)			(27,657,141	)			—
		(582	)			(105,753	)			(28,350,404	)			(52,586,746	)			—
		(264	)			(55,339	)			(4,660,792	)			(9,109,533	)			—
		—				—				—				—				—
		—				—				—				—				—
		(127,103	)			(357,509	)			(109,330,961	)			(256,439,960	)			—
		45,475				578,622				1,234,639,826				1,120,901,903				13,095,624
		306,048				169,139				348,608,641				375,261,831				—
		83,748				237,972				79,785,759				184,644,431				—
		40,932				113,054				15,328,444				36,467,389				—
		(1,320,190	)			(1,866,316	)			(675,758,638	)			(436,076,801	)			—
		(608,645	)			(364,500	)			(321,183,690	)			(141,660,638	)			—
		(1,452,632	)			(1,132,029	)			681,420,342				1,139,538,115				13,095,624
		27				279				25,179				20,425				—
		—				—				19,942				46,495				—
		27				279				45,121				66,920				—
		(1,366,532	)			(1,425,685	)			843,662,880				1,031,994,128				13,089,978
		5,369,127				6,794,812				2,550,110,826				1,518,116,698				—
	$	4,002,595			$	5,369,127			$	3,393,773,706			$	2,550,110,826			$	13,089,978
	$	21,651			$	(10,956	)		$	74,531,919			$	(2,773,741	)		$	5,646
		250,075				314,965				160,699,463				99,989,007				—
		3,050				36,999				89,610,493				77,905,344				1,309,562
		5,780				16,882				5,708,087				13,815,164				—
		(86,370	)			(118,771	)			(49,159,572	)			(31,010,052	)			—
		(77,540	)			(64,890	)			46,159,008				60,710,456				1,309,562
		172,535				250,075				206,858,471				160,699,463				1,309,562
		128,369				133,021				29,287,607				10,615,342				—
		20,832				10,727				25,457,936				25,897,867				—
		2,843				8,037				1,095,859				2,724,299				—
		(41,747	)			(23,416	)			(23,261,689	)			(9,949,901	)			—
		(18,072	)			(4,652	)			3,292,106				18,672,265				—
		110,297				128,369				32,579,713				29,287,607				—

Annual Report  37

The Lazard Funds, Inc. Financial Highlights

LAZARD US REALTY INCOME PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	7.11		$	8.42		$	7.44		$	8.57		$	7.46
Income (loss) from investment operations:
Net investment income (loss) (a)		0.11	^		0.37			0.29			0.47			0.49
Net realized and unrealized gain (loss)		0.45			(1.15	)		1.30			(0.27	)		1.23
Total from investment operations		0.56			(0.78	)		1.59			0.20			1.72
Less distributions from:
Net investment income		(0.30	)		(0.37	)		(0.32	)		(0.34	)		(0.37	)
Net realized gains		—			(0.16	)		(0.29	)		(0.99	)		(0.24	)
Return of capital		(0.01	)		—			—			—			—
Total distributions		(0.31	)		(0.53	)		(0.61	)		(1.33	)		(0.61	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	7.36		$	7.11		$	8.42		$	7.44		$	8.57
Total Return (c)		8.01	%^		-9.50	%		21.54	%		2.37	%		23.32	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	17,815		$	32,806		$	66,942		$	47,222		$	52,024
Ratios to average net assets:
Net expenses		1.00	%^		0.98	%		0.96	%		0.95	%		1.15	%
Gross expenses		1.20	%		0.98	%		0.96	%		0.98	%		1.16	%
Net investment income (loss)		1.42	%^		4.59	%		3.52	%		5.29	%		5.94	%
Portfolio turnover rate		75	%		60	%		53	%		104	%		42	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	7.09		$	8.40		$	7.43		$	8.56		$	7.45
Income (loss) from investment operations:
Net investment income (loss) (a)		0.09	^		0.34			0.26			0.44			0.51
Net realized and unrealized gain (loss)		0.45			(1.15	)		1.30			(0.26	)		1.19
Total from investment operations		0.54			(0.81	)		1.56			0.18			1.70
Less distributions from:
Net investment income		(0.28	)		(0.34	)		(0.30	)		(0.32	)		(0.35	)
Net realized gains		—			(0.16	)		(0.29	)		(0.99	)		(0.24	)
Return of capital		(0.01	)		—			—			—			—
Total distributions		(0.29	)		(0.50	)		(0.59	)		(1.31	)		(0.59	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	7.34		$	7.09		$	8.40		$	7.43		$	8.56
Total Return (c)		7.73	%^		-9.77	%		21.35	%		1.99	%		23.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	23,208		$	40,388		$	87,782		$	66,834		$	55,393
Ratios to average net assets:
Net expenses		1.30	%^		1.23	%		1.24	%		1.22	%		1.45	%
Gross expenses		1.44	%		1.23	%		1.24	%		1.24	%		1.47	%
Net investment income (loss)		1.19	%^		4.20	%		3.19	%		4.86	%		6.18	%
Portfolio turnover rate		75	%		60	%		53	%		104	%		42	%

^	Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the current period. The amount of the reimbursement was on a per share basis at less than $0.005 per share. There was no impact on the total return of the Portfolio. The net expenses and net investment income (loss) ratios of the Portfolio would be unchanged as the change to current period custodian fees was offset against current period expense waivers/reimbursements with no impact to net expenses or net investment income (loss).
(a)	Net investment income (loss) has been computed using the average shares method.
(b)	Amount is less than $0.01 per share.
(c)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.

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

38  Annual Report

LAZARD US REALTY EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	18.93		$	19.71		$	16.05		$	17.40		$	14.89
Income (loss) from investment operations:
Net investment income (loss) (a)		0.29			0.33			0.28			0.41			0.31
Net realized and unrealized gain (loss)		0.72			0.55			3.85			(0.10	)		2.79
Total from investment operations		1.01			0.88			4.13			0.31			3.10
Less distributions from:
Net investment income		(0.31	)		(0.38	)		(0.20	)		(0.25	)		(0.17	)
Net realized gains		(0.26	)		(1.28	)		(0.27	)		(1.41	)		(0.42	)
Total distributions		(0.57	)		(1.66	)		(0.47	)		(1.66	)		(0.59	)
Redemption fees		—	(b)		—	(b)		—	(b)		—			—	(b)
Net asset value, end of period	$	19.37		$	18.93		$	19.71		$	16.05		$	17.40
Total Return (c)		5.31	%		4.63	%		25.70	%		1.77	%		20.83	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	19,625		$	21,143		$	21,806		$	7,844		$	2,794
Ratios to average net assets:
Net expenses		1.05	%		1.05	%		1.05	%		1.13	%		1.20	%
Gross expenses		1.12	%		1.09	%		1.18	%		1.27	%		2.34	%
Net investment income (loss)		1.50	%		1.64	%		1.50	%		2.28	%		1.86	%
Portfolio turnover rate		41	%		51	%		43	%		98	%		52	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	19.00		$	19.78		$	16.11		$	17.45		$	14.92
Income (loss) from investment operations:
Net investment income (loss) (a)		0.23			0.26			0.19			0.33			0.30
Net realized and unrealized gain (loss)		0.72			0.56			3.90			(0.06	)		2.76
Total from investment operations		0.95			0.82			4.09			0.27			3.06
Less distributions from:
Net investment income		(0.25	)		(0.32	)		(0.15	)		(0.20	)		(0.12	)
Net realized gains		(0.26	)		(1.28	)		(0.27	)		(1.41	)		(0.42	)
Total distributions		(0.51	)		(1.60	)		(0.42	)		(1.61	)		(0.54	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		0.01
Net asset value, end of period	$	19.44		$	19.00		$	19.78		$	16.11		$	17.45
Total Return (c)		4.99	%		4.34	%		25.33	%		1.58	%		20.58	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	59,307		$	75,907		$	88,897		$	60,823		$	65,387
Ratios to average net assets:
Net expenses		1.34	%		1.32	%		1.35	%		1.36	%		1.50	%
Gross expenses		1.34	%		1.32	%		1.42	%		1.41	%		1.78	%
Net investment income (loss)		1.17	%		1.32	%		1.01	%		1.83	%		1.74	%
Portfolio turnover rate		41	%		51	%		43	%		98	%		52	%

(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.

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

Annual Report  39

LAZARD GLOBAL REALTY EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	14.19		$	15.17		$	15.49		$	16.98		$	12.18
Income (loss) from investment operations:
Net investment income (loss) (a)		0.22			0.27			0.34			0.30			0.22
Net realized and unrealized gain (loss)		0.19			(0.24	)		1.29			(0.18	)		5.27
Total from investment operations		0.41			0.03			1.63			0.12			5.49
Less distributions from:
Net investment income		(0.44	)		(0.56	)		(0.61	)		(0.50	)		(0.57	)
Net realized gains		—	(b)		(0.45	)		(1.34	)		(0.96	)		(0.12	)
Return of capital		—			—			—			(0.15	)		—
Total distributions		(0.44	)		(1.01	)		(1.95	)		(1.61	)		(0.69	)
Redemption fees		—	(b)		—	(b)		—			—			—	(b)
Net asset value, end of period	$	14.16		$	14.19		$	15.17		$	15.49		$	16.98
Total Return (c)		2.85	%		0.36	%		10.35	%		0.89	%		45.14	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,443		$	3,549		$	4,779		$	5,320		$	2,797
Ratios to average net assets:
Net expenses		1.00	%		1.05	%		1.13	%		1.22	%		1.30	%
Gross expenses		5.25	%		4.97	%		3.79	%		5.49	%		5.84	%
Net investment income (loss)		1.56	%		1.74	%		2.04	%		1.79	%		1.50	%
Portfolio turnover rate		38	%		56	%		84	%		81	%		42	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	14.18		$	15.16		$	15.48		$	16.97		$	12.17
Income (loss) from investment operations:
Net investment income (loss) (a)		0.19			0.23			0.29			0.25			0.19
Net realized and unrealized gain (loss)		0.16			(0.24	)		1.29			(0.18	)		5.25
Total from investment operations		0.35			(0.01	)		1.58			0.07			5.44
Less distributions from:
Net investment income		(0.39	)		(0.52	)		(0.56	)		(0.45	)		(0.52	)
Net realized gains		—	(b)		(0.45	)		(1.34	)		(0.96	)		(0.12	)
Return of capital		—			—			—			(0.15	)		—
Total distributions		(0.39	)		(0.97	)		(1.90	)		(1.56	)		(0.64	)
Redemption fees		—			—			—			—	(b)		—	(b)
Net asset value, end of period	$	14.14		$	14.18		$	15.16		$	15.48		$	16.97
Total Return (c)		2.47	%		0.06	%		10.05	%		0.60	%		44.81	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,560		$	1,820		$	2,016		$	2,365		$	2,209
Ratios to average net assets:
Net expenses		1.30	%		1.35	%		1.43	%		1.54	%		1.60	%
Gross expenses		5.96	%		5.55	%		4.26	%		5.81	%		6.13	%
Net investment income (loss)		1.28	%		1.47	%		1.76	%		1.45	%		1.25	%
Portfolio turnover rate		38	%		56	%		84	%		81	%		42	%

(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.

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

40  Annual Report

LAZARD GLOBAL LISTED INFRASTRUCTURE PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Institutional Shares
Net asset value, beginning of period	$	13.42		$	13.72		$	13.13		$	10.96		$	9.78
Income (loss) from investment operations:
Net investment income (loss) (a)		0.31	^		0.33			0.34			0.35			0.31
Net realized and unrealized gain (loss)		0.92			0.89			2.01			2.53			1.43
Total from investment operations		1.23			1.22			2.35			2.88			1.74
Less distributions from:
Net investment income		(0.34	)		(1.17	)		(1.04	)		(0.33	)		(0.35	)
Net realized gains		(0.14	)		(0.35	)		(0.72	)		(0.38	)		(0.21	)
Total distributions		(0.48	)		(1.52	)		(1.76	)		(0.71	)		(0.56	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	14.17		$	13.42		$	13.72		$	13.13		$	10.96
Total Return (c)		9.30	%^		9.30	%		17.95	%		26.56	%		18.05	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,931,161		$	2,156,325		$	1,372,216		$	641,127		$	125,112
Ratios to average net assets:
Net expenses		0.96	%^		0.96	%		0.98	%		1.01	%		1.14	%
Gross expenses		0.96	%		0.96	%		0.98	%		1.01	%		1.14	%
Net investment income (loss)		2.29	%^		2.32	%		2.35	%		2.80	%		3.01	%
Portfolio turnover rate		35	%		34	%		41	%		35	%		26	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/16			12/31/15			12/31/14			12/31/13			12/31/12
Open Shares
Net asset value, beginning of period	$	13.45		$	13.74		$	13.15		$	10.97		$	9.78
Income (loss) from investment operations:
Net investment income (loss) (a)		0.29^			0.31			0.29			0.30			0.28
Net realized and unrealized gain (loss)		0.91			0.88			2.02			2.55			1.42
Total from investment operations		1.20			1.19			2.31			2.85			1.70
Less distributions from:
Net investment income		(0.31	)		(1.13	)		(1.00	)		(0.29	)		(0.30	)
Net realized gains		(0.14	)		(0.35	)		(0.72	)		(0.38	)		(0.21	)
Total distributions		(0.45	)		(1.48	)		(1.72	)		(0.67	)		(0.51	)
Redemption fees		—	(b)		—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	14.20		$	13.45		$	13.74		$	13.15		$	10.97
Total Return (c)		9.01	%^		9.06	%		17.61	%		26.24	%		17.54	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	462,613		$	393,786		$	145,901		$	41,095		$	12,715
Ratios to average net assets:
Net expenses		1.22	%^		1.23	%		1.29	%		1.32	%		1.50	%
Gross expenses		1.22	%		1.23	%		1.29	%		1.32	%		1.50	%
Net investment income (loss)		2.09	%^		2.19	%		2.04	%		2.42	%		2.66	%
Portfolio turnover rate		35	%		34	%		41	%		35	%		26	%

^	Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the current period. The amount of the reimbursement was on a per share basis at less than $0.005 per share. There was no impact on the total return of the Portfolio. The impact on net expenses and net investment income (loss) ratios of the Portfolio was less than 0.005%.
(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.

Annual Report  41

LAZARD REAL ASSETS AND PRICING OPPORTUNITIES PORTFOLIO (a)

	Period
Selected data for a share of capital	Ended
stock outstanding throughout the period	12/31/16*
Institutional Shares
Net asset value, beginning of period	$	10.00
Income (loss) from investment operations:
Net investment income (loss)		—
Net realized and unrealized gain (loss)		—	(b)
Total from investment operations		—	(b)
Net asset value, end of period	$	10.00
Total Return (c)		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	13,090
Ratios to average net assets (d):
Net expenses		0.00	%
Gross expenses		3.49	%
Net investment income (loss)		0.00	%
Portfolio turnover rate		0	%

*	The inception date for Institutional Shares was December 30, 2016.
(a)	Consolidated Financial Highlights.
(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. Return for a period of less than one year is not annualized.
(d)	Annualized for a period of less than one year except for non-recurring expenses.

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

42  Annual Report

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2016

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-three no-load portfolios (each referred to as a “Portfolio”). This report includes only the financial statements of US Realty Income, US Realty Equity, Global Realty Equity, Global Listed Infrastructure and Real Assets and Pricing Opportunities Portfolios. The financial statements of other Portfolios are presented separately.

The Portfolios, other than US Realty Equity and Global Realty Equity Portfolios, are operated as “diversified” funds, as defined in the 1940 Act.

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).

Lazard Real Assets and Pricing Opportunities Portfolio commenced investment operations and issued Institutional Shares on December 30, 2016. Lazard Real Assets and Pricing Opportunities Portfolio, Ltd. (the “Subsidiary”) organized under the laws of the Cayman Islands, was incorporated on October 7, 2016 and commenced operations on December 30, 2016. The Subsidiary acts as an investment vehicle for the Portfolio in order to effect certain investments on behalf of the Portfolio, consistent with its investment objectives and policies as described in its prospectus. The Portfolio expects that it will achieve a significant portion of its exposure to commodities and commodities-related investments through investment in the Subsidiary. The Portfolio may invest up to 25% of its total assets in the Subsidiary. The financial statements of the Portfolio have been consolidated and include the accounts of both the Portfolio and the Subsidiary. All significant inter-company balances and transactions have been eliminated in consolidation. As of and for the year ended December 31, 2016, the Portfolio did not own any shares in the Subsidiary.

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—Market values for securities listed on the New York Stock Exchange (“NYSE”), NASDAQ national market or other US or foreign exchanges or markets are generally based on the last reported sales price on the exchange or market on which the security is principally traded 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. Investments in money market funds and the Subsidiary are valued at their net asset value (“NAV”) per share.

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.

Calculation of a Portfolio’s NAV may not take place contemporaneously with the determination of the prices of portfolio assets used in such calculation. Trading on Europe, Latin and South America and Far East securities exchanges and in over-the-counter markets ordinarily is completed well before the close of business on each business day in New York (i.e., a day on which the NYSE is open). In addition, European or Far Eastern securities trading generally or in a particular country or countries may not take place on all business days in New York and on which the NAV of a Portfolio is calculated.

Annual Report  43

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

If a significant event materially affecting the value of securities occurs between the close of the exchange or market on which the security is principally traded and the time when a Portfolio’s NAV is calculated, or when current market quotations otherwise are determined not to be readily available or 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 identi-

fication basis. Dividend income is recorded on the ex-dividend date except for certain dividends from non-US securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by a Portfolio. Interest income, if any, is accrued daily. A Portfolio amortizes premiums and accretes discounts on fixed-income securities using the effective yield method.

A Portfolio may be subject to taxes imposed by non-US 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 transactions and forward currency contracts represent 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 translations reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.

44  Annual Report

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, 2016, only the Global Listed Infrastructure and Real Assets and Pricing Opportunities Portfolios traded in forward currency contracts.

(d) Federal Income Taxes—The Fund’s policy is 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, 2016, 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
US Realty Income	$(2,214,210)	$(13,632,030)
Global Realty Equity	(44,401)	—

Under current tax law, post-October capital losses or certain late-year ordinary 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, 2016, the Portfolios had no such losses to defer.

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 (2013-2015; not applicable for Real Assets and Pricing Opportunities Portfolio), or expected to be taken in the Portfolios’ 2016 tax returns.

(e) 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:

Annual Report  45

Portfolio	Paid in Capital			Undistributed (Distributions in Excess of) Net Investment Income			Accumulated Net Realized Gain (Loss)
US Realty Income	$	(1,171,475	)	$	1,128,761		$	42,714
US Realty Equity		(1	)		(13,246	)		13,247
Global Realty Equity		2			84,399			(84,401	)
Global Listed Infrastructure		1			86,304,918			(86,304,919	)
Real Assets and Pricing Opportunities		(5,646	)		5,646			—

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

		Ordinary Income				Long-Term Capital Gain
Portfolio		2016		2015		2016		2015
US Realty Income*	$	2,081,604	$	5,504,357	$	—	$	1,872,490
US Realty Equity		1,077,683		2,876,975		1,143,361		4,875,426
Global Realty Equity		126,977		283,828		126		73,681
Global Listed Infrastructure		83,080,443		216,909,361		26,250,518		39,530,599

* US Realty Income Portfolio had return of capital distributions of $94,379 in 2016.

At December 31, 2016, 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 Realty Income	$	—	$	(15,846,240	)	$	(679,257	)
US Realty Equity		—		1,526,711			8,992,597
Global Realty Equity		35,244		(44,401	)		18,178
Global Listed Infrastructure		105,361,687		9,733,029			8,781,648

Net income and realized gains from investments held by the Subsidiary will be treated as ordinary income for tax purposes. Accordingly, the net investment income (loss) and realized gains (losses) reported in Real Assets and Pricing Opportunities Portfolio’s consolidated financial statements presented under GAAP for such investments held by the Subsidiary may differ significantly from distributions. As such, any net gain will pass through to Real Assets and Pricing Opportunities Portfolio as ordinary income for federal income tax purposes.

If a net loss is realized by the Subsidiary in any taxable year, the loss will generally not be available to offset the Real Assets and Pricing Opportunities Portfolio’s ordinary income and/or capital gains for that year.

(f) Offering and Organizational 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. Organizational costs are expensed as incurred.

(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—Until August 15, 2016, the Portfolios imposed 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. As of August 15, 2016, redemption fees no longer apply to transactions in Portfolio shares.

(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 resulting from operations during the reporting period. Actual results could differ from those estimates.

(j) Net Asset Value—NAV per share for each class of each Portfolio is determined each day the NYSE is open for trading as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time). The Fund will not treat an intraday unscheduled disruption in

46  Annual Report

NYSE trading as a closure of the NYSE, and will price its shares as of 4:00 p.m., if the particular disruption directly affects only the NYSE. 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.

3. Investment Management, Administration, Custody, 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 Realty Income		0.75	%
US Realty Equity		0.80
Global Realty Equity		0.85
Global Listed Infrastructure		0.90
Real Assets and Pricing Opportunities		0.70

The Investment Manager provides investment management and other services to the Subsidiary. The Investment Manager does not receive separate compensation from the Subsidiary for providing such services. However, Real Assets and Pricing Opportunities Portfolio pays the Investment Manager based on its net assets, which include the assets of the Subsidiary.

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” (as defined in Form N-1A) and extraordinary expenses, and excluding shareholder redemption fees or other transaction fees, but includ-

ing the management fee stated in the Management Agreement between the Investment Manager and the Fund, on behalf of the Portfolios, exceed the following percentages of the value of the Portfolios’ average daily net assets for the respective shares:

Portfolio	Institutional Shares			Open Shares			Year
US Realty Income		1.00	%		1.30	%		2017
US Realty Equity		1.05			1.35			2026	(a)
Global Realty Equity		1.00			1.30			2017
Global Listed Infrastructure		1.30			1.60			2026	(a)
Real Assets and Pricing Opportunities		0.90			N/A			2018	(b)

(a)	Agreement is through April 29, 2026.
(b)	Agreement is through December 30, 2018.

During the year ended December 31, 2016, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:

	Institutional Shares				Open Shares
Portfolio	Management Fees Waived			Expenses Reimbursed	Management Fees Waived			Expenses Reimbursed
US Realty Income	$	45,397	$	—	$	40,097	$	—
US Realty Equity		14,690		—		—		—
Global Realty
Equity		28,637		102,001		14,733		59,625
Real Assets and Pricing Opportunities		—		28,568		N/A		N/A

The aforementioned waivers and/or reimbursements are not subject to recoupment by the Investment Manager.

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, 2016, State Street waived $18,750 of its fee for the Global Realty Equity Portfolio.

Annual Report  47

State Street also serves as custodian for the Fund in accordance with a custodian agreement to provide certain custody services.

In December 2015, State Street announced that it had identified inconsistencies in the way in which clients were invoiced for out-of-pocket expenses from 1998 until 2015. The dollar amount difference between what was charged and what should have been charged, plus interest, will be paid back to the affected Portfolios directly in March 2017 as a reimbursement. This reimbursement was recognized as a change in accounting estimate and reflected as “Reimbursement of custodian fees” in the Statements of Operations. Pursuant to the expense limitations described in Note 3, certain Portfolios have experienced management fee waivers during the year ended December 31, 2016. Accordingly, the reimbursement of out-of-pocket expenses resulted in the reduction in the waiver of management fees for certain Portfolios for the year ended December 31, 2016.

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, 2016, 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: (1) an annual retainer of $190,000, (2) an additional annual fee of $20,000 to the lead Independent Director (an “Independent Director” is a Director who is not an “interested person” (as defined in the 1940 Act) of the Fund), and (3) an additional annual fee of $10,000 to the Audit Committee Chair. Effective January 1, 2017, the aggregate compensation for Independent Directors for the Lazard Fund Complex is comprised of: (1) an annual retainer of $210,000, (2) an additional annual fee of $30,000 to the lead Independent Director, and (3) an additional annual fee of $20,000 to the Audit Committee Chair. The Independent Directors may be paid additional compensation for participation on ad hoc committees or other work performed on behalf of the Board. The Independent 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. Independent Directors’ fees are allocated among the portfolios in the Lazard Fund Complex at a rate of $5,000 per portfolio with the remainder allocated based upon each portfolio’s proportionate share of combined net assets. The Statements of Operations show the Independent Directors’ fees and expenses paid by each Portfolio.

48  Annual Report

5. Securities Transactions and Transactions with Affiliates

Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2016 were as follows:

Portfolio	Purchases		Sales
US Realty Income	$	40,643,383	$	73,088,840
US Realty Equity		35,638,745		55,719,986
Global Realty Equity		1,899,721		3,448,450
Global Listed Infrastructure		1,605,600,501		985,268,411
Real Assets and Pricing Opportunities*		—		—

* The Portfolio commenced operations on 12/30/16. The portfolio securities held at year end represent a subscription in kind.

For the year ended December 31, 2016, the Portfolios did not engage in any cross-trades in accordance with Rule 17a-7 under the 1940 Act, and 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, 2016, the Investment Manager owned 46.96% of the outstanding shares of the 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 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 0.20% per annum fee 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, 2016, the following 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	$	452,874	$	1,607,000		1.47	%	95
US Realty Equity		516,940		1,565,000		1.48		43
Global Realty Equity		30,620		58,000		1.45		30

* 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. A Portfolio’s outstanding line of credit, if any, would be categorized as Level 2 (see Note 9).

7. Investment Risks

(a) Non-US Securities Risk—A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity.

(b) Emerging Market Risk—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. Investments in these countries may be subject to political, economic, legal, market and currency risks. The risks may include less protection of property rights and uncertain political and economic policies, the imposition of capital controls and/or foreign investment limitations by a country, nationalization of businesses and the imposition of sanctions by other countries, such as the US. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies.

(c) Foreign Currency Risk—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. For Portfolios other than the Global Listed Infrastructure Portfolio, the Investment Manager does not intend to actively hedge the Portfolios’ foreign currency exposure.

Annual Report   49

(d) Realty Companies, Real Estate Investments and REITs Risk—Portfolios that invest in Realty Companies, Real Estate Investments and/or REITs 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 a Portfolio 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 a Portfolio 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 and Real Estate Investments 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.

REITS are subject to similar risks as Real Estate Investments and Realty Companies. The risks related to investments in Real Estate Investments and Realty Companies include, but are not limited to: adverse changes in general economic and local market conditions; adverse developments in employment; changes in supply or demand for similar or competing properties; unfavorable changes in applicable taxes, governmental regulations and interest rates; operating or development expenses; and lack of available financing. Due to certain special considerations that apply to REITs, investments in REITs may carry additional risks not necessarily present in investments in other securities. REIT securities (including those trading on national exchanges) typically have trading volumes that are less than those of common stocks of other stocks traded on national exchanges, which may affect a Portfolio’s ability to trade or liquidate those securities. An investment in REITs may be adversely affected if the REIT fails to comply with applicable

laws and regulations. Failure to qualify with any of these requirements could jeopardize a company’s status as a REIT. A Portfolio generally will have no control over the operations and policies of a REIT, and they generally will have no ability to cause a REIT to take the actions necessary to qualify as a REIT.

(e) Infrastructure Companies Risk—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.

(f) Subsidiary Risk—Real Assets and Pricing Opportunities Portfolio invests in the Subsidiary, which is not registered as an investment company under the 1940 Act. A regulatory change in the US or the Cayman Islands, under which the Portfolio and the Subsidiary, respectively, are organized, that impacts the Subsidiary or how the Portfolio invests in the Subsidiary, such as a change in tax law, could adversely affect the Portfolio. By investing in the Subsidiary, the Portfolio is exposed to the risks associated with the Subsidiary’s investments, which generally include the risks of investing in commodity-related derivative instruments.

(g)Tax Status Risk—Income and gains from commodities or certain commodity-linked derivative instruments do not constitute “qualifying income” to Real Assets and Pricing Opportunities Portfolio for purposes of qualification as a “regulated investment company” for federal income tax purposes. Without such qualification, the Portfolio could be subject to tax. The tax treatment of some of the Portfolio’s investments in

50   Annual Report

the Subsidiary and commodity-linked derivatives may be adversely affected by future legislation, regulations of the US Treasury Department or guidance issued by the Internal Revenue Service, or otherwise affect the character, timing and/or amount of the Portfolio’s taxable income or any gains and distributions made by the Portfolio.

(h) 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. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening.

Prices of bonds and other debt securities tend to move inversely with changes in interest rates. Typically, a rise in rates will adversely affect debt securities and, accordingly, will cause the value of a Portfolio’s investments in these securities to decline. Interest rate risk is usually greater for fixed-income securities with longer maturities or durations. A rise in interest rates (or the expectation of a rise in interest rates) may result in periods of volatility, decreased liquidity and increased redemptions, and, as a result, the Portfolio may have to liquidate portfolio securities at disadvantageous prices. Risks associated with rising interest rates are heightened given that interest rates in the US and other countries are at or near historic lows.

A Portfolio’s 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 a Portfolio’s 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 prices of high yield securities can fall in response to negative news about the issuer or its industry, or the economy in general to a greater extent than those of higher-rated securities. 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.

Some fixed-income securities may give the issuer the option to call, or redeem, the securities before their maturity. If securities held by a Portfolio are called during a time of declining interest rates (which is typically the case when issuers exercise options to call outstanding securities), the Portfolio may have to reinvest the proceeds in an investment offering a lower yield (and the Portfolio may not fully benefit from any increase in the value of its portfolio holdings as a result of declining interest rates).

(i) Natural Resources Risk—Investments related to natural resources may be affected by numerous factors, including events occurring in nature, inflationary pressures and domestic and international politics. For example, events occurring in nature (such as earthquakes or fires in prime natural resource areas) and political events (such as coups or military confrontations) can affect the overall supply of a natural resource and the value of companies involved in such natural resource. Political risks and other risks to which non-US companies are subject also may affect US companies if they have significant operations or investments in non-US countries. In addition, interest rates, prices of raw materials and other commodities, international economic developments, energy conservation, tax and other government regulations (both US and non-US) may affect the supply of and demand for natural resources, which can affect the profitability and value of securities issued by companies in the natural resources category. Securities of companies within specific natural resources sub-categories can perform differently than the overall market. This may be due to changes in such things as the regulatory or competitive environment or to changes in investor perceptions.

Annual Report   51

(j) Commodities-Related Investments Risk—Exposure to the commodities markets may subject a Portfolio and the Subsidiary to greater volatility than other types of investments. The values of commodities and commodity-linked derivative instruments are affected by events that may have less impact on the values of equity and fixed income securities. Investments linked to the prices of commodities are considered speculative. Because the value of a commodity-linked derivative instrument, such as a futures contract on a physical commodity, typically is based upon the price movements of the underlying reference asset, index or rate, the value of these instruments will rise or fall in response to changes in the underlying reference asset, index or rate. Prices of commodities and commodity-linked investments may fluctuate significantly over short periods for a variety of factors, including: changes in supply and demand relationships; weather; agricultural or livestock markets; agricultural or livestock disease or pestilence; trade relationships; fiscal, monetary and exchange control programs; and embargoes, tariffs, terrorism and international economic, political, military and regulatory developments.

(k) Inflation-Indexed Security Risk—Interest payments on inflation-indexed securities can be unpredictable and will vary as the principal and/or interest is periodically adjusted based on the rate of inflation. If the index measuring inflation falls, the interest payable on these securities will be reduced. The US Treasury has guaranteed that, in the event of a drop in prices, it would repay the par amount of its inflation-indexed securities. Inflation-indexed securities issued by corporations generally do not guarantee repayment of principal. Any increase in the principal amount of an inflation-indexed security will be considered taxable ordinary income, even though investors do not receive their principal until maturity. As a result, a Portfolio may be required to make annual distributions to shareholders that exceed the cash the Portfolio received, which may cause the Portfolio to liquidate certain investments when it is not advantageous to do so. Also, if the principal value of an inflation-indexed security is adjusted downward due to deflation, amounts previously distributed may be characterized in some circumstances as a return of capital.

(l) Derivatives Risk—Forward currency contracts, options, futures contracts and credit default swap agreements and other derivatives transactions, including those entered into for hedging purposes (i.e., seeking to protect Portfolio investments), may increase volatility, reduce returns, limit gains or magnify losses, perhaps substantially, particularly since most derivatives have a leverage component that provides investment exposure in excess of the amount invested. Forward currency contracts, swap agreements 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 in which a Portfolio may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related currency, interest rate, security or other reference asset. As such, a small investment could have a potentially large impact on the Portfolio’s performance. In fact, many derivatives may be subject to greater risks than those associated with investing directly in the underlying or other reference asset. Derivatives transactions incur costs, either explicitly or implicitly, which reduce returns, and costs of engaging in such transactions may outweigh any gains or any losses averted from hedging activities. Successful use of derivatives, whether for hedging or for other investment purposes, is subject to the Investment Manager’s ability to predict correctly movements in the direction of the relevant reference asset or market and, for hedging activities, correlation of the derivative instruments used with the investments seeking to be hedged. Use of derivatives transactions, even if entered into for hedging purposes, may cause a 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.

52   Annual Report

9. Fair Value Measurements

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

• 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 transfers 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   53

The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2016:

Description	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2016
US Realty Income Portfolio
Preferred Stocks*	$	12,546,987		$	—		$	—	$	12,546,987
Real Estate Investment Trusts*		27,971,377			—			—		27,971,377
Total	$	40,518,364		$	—		$	—	$	40,518,364
US Realty Equity Portfolio
Real Estate Investment Trusts*	$	78,054,750		$	—		$	—	$	78,054,750
Short-Term Investment		844,713			—			—		844,713
Total	$	78,899,463		$	—		$	—	$	78,899,463
Global Realty Equity Portfolio
Common Stocks*
Brazil	$	—		$	66,151		$	—	$	66,151
China		—			73,000			—		73,000
Germany		—			151,729			—		151,729
Hong Kong		—			225,894			—		225,894
Japan		—			257,641			—		257,641
Philippines		—			39,052			—		39,052
Singapore		—			33,165			—		33,165
United Arab Emirates		—			38,911			—		38,911
United States		20,846			—			—		20,846
Real Estate Investment Trusts*
Australia		—			255,813			—		255,813
France		—			47,660			—		47,660
Hong Kong		—			145,416			—		145,416
Italy		—			27,060			—		27,060
Japan		—			47,147			—		47,147
Singapore		—			15,947			—		15,947
United Kingdom		—			263,019			—		263,019
United States		2,060,353			—			—		2,060,353
Other		151,650			—			—		151,650
Short-Term Investment		102,723			—			—		102,723
Total	$	2,335,572		$	1,687,605		$	—	$	4,023,177
Global Listed Infrastructure Portfolio
Assets:
Common Stocks*
Australia	$	—		$	454,891,921		$	—	$	454,891,921
France		—			475,914,969			—		475,914,969
Germany		—			120,731,316			—		120,731,316
Italy		67,966,524			670,832,510			—		738,799,034
Luxembourg		—			168,125,370			—		168,125,370
Portugal		—			22,700,271			—		22,700,271
Spain		—			161,045,063			—		161,045,063
United Kingdom		—			134,849,279			—		134,849,279
United States		878,648,399			—			—		878,648,399
Short-Term Investment		223,433,371			—			—		223,433,371
Other Financial Instruments†
Forward Currency Contracts		—			19,452,865			—		19,452,865
Total	$	1,170,048,294		$	2,228,543,564		$	—	$	3,398,591,858
Liabilities:
Other Financial Instruments†
Forward Currency Contracts	$	—		$	(19,087,215	)	$	—	$	(19,087,215	)

54   Annual Report

Description	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2016
Real Assets and Pricing Opportunities Portfolio
Assets:
Common Stocks*
Australia	$	31,140		$	348,407		$	—	$	379,547
Belgium		82,620			8,919			—		91,539
France		26,137			258,722			—		284,859
Germany		110,637			66,152			—		176,789
Hong Kong		76,710			53,030			—		129,740
Italy		—			387,051			—		387,051
Japan		358,905			6,207			—		365,112
Netherlands		—			18,286			—		18,286
Norway		—			32,580			—		32,580
Singapore		52,895			128,731			—		181,626
Spain		—			99,170			—		99,170
United Kingdom		130,465			373,468			—		503,933
United States		4,936,067			—			—		4,936,067
Other		919,319			—			—		919,319
Closed-End Management Investment Companies		25,773			—			—		25,773
Exchange-Traded Notes*		1,533,929			—			—		1,533,929
Foreign Government Obligations*		—			1,572,306			—		1,572,306
US Treasury Securities		—			1,281,274			—		1,281,274
Total	$	8,284,597		$	4,634,303		$	—	$	12,918,900
Liabilities:
Other Financial Instruments†
Forward Currency Contracts	$	—		$	(5,646	)	$	—	$	(5,646	)

*	Please refer to Portfolios of Investments (pages 15 through 27) and Notes to Portfolios of Investments (pages 29 through 30) for portfolio holdings by country and industry.
†	Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation (depreciation).

In connection with the implementation of fair value pricing procedures with respect to non-US securities (see Note 2(a)), certain equity securities in the Global Realty Equity, Global Listed Infrastructure and Real Assets and Pricing Opportunities Portfolios can transfer from Level 1 to Level 2 as a result of fair value pricing procedures and would revert to Level 1 when the fair value pricing procedures are no longer used. 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, 2016.

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 Listed Infrastructure Portfolio

During the year ended December 31, 2016, the approximate average monthly notional exposure for derivative instruments was as follows:

Forward currency contracts $2,068,300,000

Annual Report   55

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2016:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	19,452,865
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	19,087,215

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2016 was:

	Amount
Realized Gain (Loss) on Derivatives
Foreign Exchange Risk:
Net realized gain (loss) on foreign currency transactions and forward currency contracts	$	85,953,031
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on foreign currency translations and forward currency contracts	$	(4,917,984	)

Real Assets and Pricing Opportunities Portfolio

During the year ended December 31, 2016, the approximate average monthly notional exposure for derivative instruments was as follows:

Forward currency contracts $2,800,000*

* Represents the notional exposure outstanding on 12/30/16 when the Portfolio commenced operations.

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2016:

	Fair Value
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	5,646

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2016 was:

	Amount
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on foreign currency translations and forward currency contracts	$	(5,646	)

See Note 2(c) 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, 2016.

As of December 31, 2016, Global Listed Infrastructure and Real Assets and Pricing Opportunities 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.

56   Annual Report

The required information for the affected Portfolios are presented in the below table, as of December 31, 2016:

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		$	19,452,865	$	—	$	19,452,865

				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 of Derivative Assets
Citibank NA		$	5,867,196	$	(3,709,587	)	$	—	$	2,157,609
HSBC Bank USA NA			8,160,511		(4,516,028	)		—		3,644,483
Royal Bank of Canada			1,895,888		(1,895,888	)		—		—
Standard Chartered Bank			33,230		—			—		33,230
State Street Bank and Trust Co.			3,496,040		(1,893,197	)		—		1,602,843
Total		$	19,452,865	$	(12,014,700	)	$	—	$	7,438,165

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		$	19,087,215	$	—	$	19,087,215

				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 of Derivative  Liabilities
BNP Paribas SA		$	2,567,698	$	—		$	—	$	2,567,698
Canadian Imperial Bank of Commerce			2,631,173		—			—		2,631,173
Citibank NA			3,709,587		(3,709,587	)		—		—
HSBC Bank USA NA			4,516,028		(4,516,028	)		—		—
Royal Bank of Canada			2,429,776		(1,895,888	)		—		533,888
State Street Bank and Trust Co.			1,893,197		(1,893,197	)		—		—
The Bank of New York Mellon Corp.			1,339,756		—			—		1,339,756
Total		$	19,087,215	$	(12,014,700	)	$	—	$	7,072,515

Annual Report   57

Real Assets and Pricing Opportunities Portfolio

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		$	5,646	$	—		$	5,646

				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 of Derivative Liabilities
Citibank NA		$	3,386	$	—	$	—		$	3,386
HSBC Bank USA NA			2,260		—		—			2,260
Total		$	5,646	$	—	$	—		$	5,646

11. Recent Accounting Pronouncements

In October 2016, the U.S. Securities and Exchange Commission (the “SEC”) adopted new rules and amended existing rules (together, “final rules”) intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017.

Management is currently evaluating the impact that the adoption of the amendments to Regulation S-X will have on the Fund’s financial statements and related disclosures.

12. 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.

58   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, Lazard Global Listed Infrastructure Portfolio and Lazard Real Assets and Pricing Opportunities 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, four of the portfolios constituting The Lazard Funds, Inc. (the “Fund”) as of December 31, 2016, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended. We have also audited the accompanying consolidated statement of assets and liabilities, including the consolidated portfolio of investments, of Lazard Real Assets and Pricing Opportunities Portfolio, one of the portfolios constituting the Fund, (collectively with the portfolios mentioned above, the “Portfolios”), as of December 31, 2016, and the related consolidated statements of operations and changes in net assets and consolidated financial highlights for the period from December 30, 2016 (commencement of operations) through December 31, 2016. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the 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, 2016, 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, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended, and the consolidated financial position of Lazard Real Assets and Pricing Opportunities Portfolio, of The Lazard Funds, Inc. as of December 31, 2016, the consolidated results of its operations, the consolidated changes in its net assets and the consolidated financial highlights for the period from December 30, 2016 (commencement of operations) through December 31, 2016, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

New York, New York

February 27, 2017

Annual Report   59

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 (63)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012)
		University of California, Berkeley School of Law, Lecturer (Spring 2017)
		Cornell Law School, Visiting Professor of Practice (2015 – 2016); previously, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014)
Kenneth S. Davidson (71)	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 (54)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
		TIAA-CREF Funds (68 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 (45)	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. (72)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		Resource Americas, Inc., a real estate asset management company, Director (2016 – present)
		O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012)
Robert M. Solmson (69)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

60  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 (56)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present)
Ashish Bhutani (56)	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, 2017, 40 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  61

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 (44)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Christopher Snively (32)	Chief Financial Officer (March 2016)	Senior Vice President of the Investment Manager (since November 2015)
		Assurance Manager at PricewaterhouseCoopers LLP (2008 – November 2015)
Stephen St. Clair (58)	Treasurer (May 2003)	Vice President of the Investment Manager
Mark R. Anderson (46)	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 (41)	Assistant Secretary (February 2009)	Director (since February 2016, previously Senior Vice President), and Director of Legal Affairs (since July 2015) of the Investment Manager
Shari L. Soloway (35)	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)
Cesar A. Trelles (42)	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.

62  Annual Report

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

Tax Information

Year Ended December 31, 2016

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2016:

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

Portfolio	Percentage
US Realty Income		0.56	%
US Realty Equity		—
Global Realty Equity		31.09
Global Listed Infrastructure		92.17
Real Assets and Pricing Opportunities		—

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		0.50	%
US Realty Equity		—
Global Realty Equity		—
Global Listed Infrastructure		11.95
Real Assets and Pricing Opportunities		—

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 SEC website at http://www.sec.gov.

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

Form N-Q

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

Board Consideration of Management Agreement

Lazard Real Assets and Pricing Opportunities Portfolio

At a meeting of the Board held on November 9, 2016, the Board considered the approval of the Management Agreement between the Fund, on behalf of Lazard Real Assets and Pricing Opportunities Portfolio (the “New Portfolio”), and the Investment Manager (the “New Portfolio Management Agreement”). The Independent Directors were assisted in their review by independent legal counsel, who advised the Board on relevant legal standards and met with the Independent Directors in executive session separate from representatives of the Investment Manager.

Services Provided

The Board previously had received and discussed information addressing, among other matters, the nature, extent and quality of services that the Investment Manager provides to the Fund, including a discussion of the Investment Manager and its clients (of which the existing Lazard Funds complex of 39 active funds comprises approximately $31 billion (as of September 30, 2016) of the approximately $205 billion of total assets under the management of the Investment Manager and its global affiliates as of September 30, 2016); the Investment Manager’s global research, portfolio management, operations, technology, legal and compliance and marketing infrastructure; and the Investment Manager’s personnel, resources, financial condition and experience. The Board received a presentation on the New Portfolio from members of the New Portfolio’s proposed portfolio management team, including the strategies to be employed for the New Portfolio and the New Portfolio’s portfolio management team, including professional biographies.

Annual Report  63

The Directors considered the various services to be provided by the Investment Manager including the Investment Manager’s research and portfolio management capabilities and oversight of day-to-day operations, including supervision of fund accounting and administration-related services and assistance in meeting legal and regulatory requirements. The Directors also considered the Investment Manager’s infrastructure and agreed that the New Portfolio would be expected to benefit from the services and infrastructure provided by the Investment Manager. The Directors accepted management’s assertion that such services and infrastructure would be greater than those typically provided to a $31 billion fund complex not managed by a large, global firm such as the Investment Manager.

Comparative Fee, Expense Ratio and Performance Information

The Directors reviewed comparative fee and expense ratio information prepared by Strategic Insight, an independent provider of investment company data.

Advisory Fee and Expense Ratios. The Directors discussed the proposed management fee to be paid to the Investment Manager (referred to in the Strategic Insight materials as the “advisory fee”) and expense ratios for the New Portfolio (as limited by the Investment Manager) and the comparisons provided by Strategic Insight, which compared the contractual advisory fee and expense ratios for the New Portfolio to its respective groups¹ of comparison funds (“Groups”), and the Directors noted the methodology and assumptions used by Strategic Insight. The proposed contractual advisory fee and expense ratios for the New Portfolio were below the medians for the Groups. The Board also considered the fees paid by a discretionary account advised by the Investment Manager with investment objectives, policies and strategies similar to those of the New Portfolio (the “Real Assets Other Account”).

Performance. The Directors considered the performance of the Real Assets Other Account compared to a 3-month LIBOR index (the “LIBOR Index”) and certain other securities indexes (the “Other Indexes”),

although the Real Assets Other Account had less than two years of performance. The performance of the Real Assets Other Account (net of fees) was above that of the LIBOR Index, and was generally competitive with the Other Indexes for most periods, and with lower volatility (since inception) than the Other Indexes.

Investment Manager Profitability and Economies of Scale

Representatives of the Investment Manager noted that because the New Portfolio is newly formed, has not commenced operations and the eventual aggregate amount of the New Portfolio’s assets was uncertain, specific information concerning the cost of services to be provided to the New Portfolio and the expected profits to be realized by the Investment Manager and its affiliates from their relationships with the New Portfolio and economies of scale would be subject to a number of assumptions and would be speculative and not meaningful. The Investment Manager’s representatives stated that they did not expect the Investment Manager to realize any current profits on the New Portfolio initially, noting the Investment Manager’s agreement to waive its fees and/or reimburse expenses of the New Portfolio for at least two years following the New Portfolio’s commencement of operations to maintain the expense ratios reflected in the Strategic Insight materials. The Board determined to revisit this issue no later than when it next reviewed the investment management fee in connection with renewal of the New Portfolio Management Agreement. The Investment Manager’s representatives noted that neither the Investment Manager nor its affiliates were expected to receive any significant indirect benefits from the Investment Manager acting as investment adviser to the New Portfolio. The Investment Manager’s representatives reviewed with the Board information provided on the Investment Manager’s brokerage and soft dollar practices. The representatives of the Investment Manager stated that the Investment Manager intends to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted

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

64  Annual Report

that the New Portfolio would not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the New Portfolio’s Open Shares.

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

• The Board concluded that the nature, extent and quality of the services to be provided by the Investment Manager are adequate and appropriate, noting the benefits of advisory and research services and other services and infrastructure (as discussed above) associated with an approximately $205 billion global asset management business.

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

• The Board concluded that the New Portfolio’s fee to be paid to the Investment Manager supported the approval of the New Portfolio Management Agreement in light of the considerations discussed above.

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

In evaluating the New Portfolio Management Agreement, the Board relied on the information described above as well as other information provided by the Investment Manager. The Board considered these conclusions and determinations in their totality and determined to approve the New Portfolio Management Agreement. In deciding whether to vote to approve the New Portfolio Management Agreement, each Director may have accorded different weights to different factors so that each Director may have had a different basis for his or her decision.

Annual Report  65

NOTES

66  Annual Report

NOTES

Annual Report  67

NOTES

68  Annual Report

NOTES

Annual Report  69

NOTES

70  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

LZDPS028

ITEM 2. CODE OF ETHICS.

The Registrant amended its Code during the period covered by this report. These amendments consisted of the following: (1) requiring that each Covered Officer, upon becoming a Covered Officer, must affirm in writing to the Fund’s Chief Compliance Officer (the “CCO”) that he has received, read, and understands the Code, and annually thereafter affirm to the CCO that he has complied with the requirements of the Code, rather than making such affirmations to the Registrant’s Board of Directors, and (2) certain other stylistic and non-substantive changes.

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 $1,083,682 in 2015 and $698,307 in 2016 (plus expenses in each case).

(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.

The aggregate fees billed in the Reporting Periods for non-audit assurance and related services provided 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”) that were reasonably related to the performance of the annual audit of the Service Affiliate which required pre-approval by the Audit Committee were $160,000 in 2015 and $163,000 in 2016.

(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 $368,291 in 2015 and $325,955 in 2016. These Tax 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. Additionally, the aggregate fees billed related to European Union tax reclaim filing services rendered by the Auditor were $158,216 in 2015 and $114,275 in 2016.

The aggregate fees billed in the Reporting Periods for Tax Services provided by the Auditor to Service Affiliates which required pre-approval by the Audit Committee were $509 in 2015 and $0 in 2016.

(d)     All Other Fees. There were no fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) above.

There were no fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) above, which required pre-approval by the Audit Committee.

(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 either the Registrant or Service Affiliates that were approved pursuant to paragraph (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 $906,230 in 2015 and $1,152,787 in 2016.

(h)     Auditor Independence. The Audit Committee considered whether provision of non-audit services to Service Affiliates that were not required to be preapproved is compatible with maintaining the Auditor’s independence.

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/ Nathan A. Paul
	Nathan A. Paul
	Chief Executive Officer
Date	March 9, 2017

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/ Nathan A. Paul
	Nathan A. Paul
	Chief Executive Officer
Date	March 9, 2017

By	/s/ Christopher Snively
	Christopher Snively
	Chief Financial Officer
Date	March 9, 2017