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)

Mark R. Anderson, 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: 12/31/17

ITEM 1. REPORTS TO STOCKHOLDERS.

Lazard Funds Annual Report

December 31, 2017

Alternatives 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 • Assets and income • Account transactions • Credit history • Transaction history When you are no longer our customer, we continue to share your information as described in this notice.
How?	All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information, the reasons Lazard chooses to share, and whether you can limit this sharing.

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

Questions? Call 800-823-6300 or go to https://www.lazardassetmanagement.com

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

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
5	Performance Overviews
7	Information About Your Portfolio’s Expenses
9	Portfolio Holdings Presented by Sector
10	Portfolios of Investments
10	Lazard Enhanced Opportunities Portfolio
16	Lazard Fundamental Long/Short Portfolio
19	Notes to Portfolios of Investments
21	Statements of Assets and Liabilities
22	Statements of Operations
23	Statements of Changes in Net Assets
24	Financial Highlights
26	Notes to Financial Statements
39	Report of Independent Registered Public Accounting Firm
40	Proxy Voting Results
41	Board of Directors and Officers Information
44	Tax and Other Information

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

Record high global stock prices were supported by synchronized global economic growth in 2017. Markets also benefited from benign inflation, accommodative central bank policy, and strong corporate profits. Volatility remained at historic lows despite tension between North Korea and the United States and political uncertainty in Brazil, Spain, and the United Kingdom.

Emerging markets equity and debt advanced strongly in 2017. Emerging markets continued to benefit from low inflation, modest but steady growth, and improving profitability as global demand recovers and businesses tighten fiscal discipline. Earnings improvement in China and Korea drove returns in emerging markets. While our outlook for the asset class remains positive, our emerging markets investment teams are vigilant about potential risks. This includes an increase in developed markets inflation that could lead to central banks raising rates too quickly and, in effect, a global growth slowdown.

European equity markets performed well in 2017 as the region’s economic recovery deepened and investors grew more confident in its underlying strength. During the year, a market-friendly result to France’s presidential election helped buoy European sentiment. UK equities generated solid absolute returns amid a challenging political backdrop and Brexit negotiations. In addition, the European Central Bank announced that it would extend its monthly bond-buying program into 2018, but plans to reduce the pace of these purchases.

The US economy also advanced strongly during 2017. A new US tax bill represented one of the most significant changes to the US tax code in over 30 years as it changes individual, corporate, and international taxes. The US yield curve continued to flatten as short-term rates moved higher, driven by the three US rate hikes during 2017 and the prospect of additional hikes in 2018.

We are privileged that you have turned to Lazard for your investment needs and value your continued confidence in our investment management capabilities. Be assured that our specialist investment teams, supported by our global infrastructure, are continuing to strive for the long-term patterns of performance that you expect.

Sincerely,

Lazard Asset Management LLC

2  Annual Report

The Lazard Funds, Inc. Investment Overviews

Lazard Alternatives

As was the case through most of 2016, risk assets, generally performed well in 2017, which benefited convertible products broadly. Global growth accelerated, particularly in Europe, Japan, and the United States. The 10-Year US Treasury yield ended the year at 2.4%, just 4 basis points lower for the year. Most equity indices moved higher in 2017, with particular strength in emerging markets. Credit, as measured by the ICE BofAML High Yield Cash^® Index, gained 7.48%. US equity market volatility, as measured by the CBOE Volatility^® Index, remained subdued, with intermittent episodes of heightened volatility intra-year. Convertible trading volumes during the year were largely in line with historical levels, and pricing was well supported in our view by both long-only and hedge fund investors. 2017 new issuance exceeded $61 billion.

Lazard Enhanced Opportunities Portfolio

For the year ended December 31, 2017, the Lazard Enhanced Opportunities Portfolio’s Institutional Shares posted a total return of 5.56%, while Open Shares posted a total return of 5.16%, as compared with the 15.70% return for the ICE BofAML U.S. Convertible ex Mandatory^® Index and 5.99% return for the HFRX Global Hedge Fund^® Index.

Generally speaking, the improving macroeconomic backdrop was supportive of convertible valuations in 2017. Idiosyncratic developments, including bond-for-bond exchanges, debt-for-equity exchanges and timely directional biases on selected securities, helped pace returns. Specifically, a long directional bias on Quidel 3% bonds due 2020, and Chesapeake Energy and Liberty Media bonds all contributed positively to returns. Also, the continued strong bid for bonds with convex return profiles supported convertible valuations broadly, particularly in sectors with strong underlying fundamentals and/or technicals.

Detractors in the year included losses in selected alternative energy positions. Separately, valuations continued to improve on a relative and absolute basis, whether measured by implied spread or yield/premium relationships. With absolute yields in the high-yield universe near three-year lows and equity markets seemingly still well-supported, non-traditional or cross-over

(i.e., traditional long-only or directional) investors continued to allocate assets to convertibles.

The Portfolio uses currency forwards. For the year, the use of these derivatives had no material impact on absolute performance.

Lazard Fundamental Long/Short Portfolio

For the year ended December 31, 2017, the Lazard Fundamental Long/Short Portfolio’s Institutional Shares posted a total return of 5.67%, while Open Shares posted a total return of 5.43%, as compared with the 10.06% return for the HFRX Equity Hedge^® Index and 21.83% return for the S&P 500^® Index.

A long position in AutoZone detracted from performance, as shares fell after the company reported quarterly earnings below expectations, hurt by weaker revenues. We sold our position after the announcement in May, as we saw opportunities with better risk-reward profiles elsewhere. A short position in Teradata also hurt returns, as shares rose after quarterly results were broadly strong, and management commentary on the pipeline for its cloud business encouraged investors. We covered our position in November, as our thesis had changed. The Portfolio was also hurt by a long position in beer company Molson Coors, as shares fell after management stumbled in communicating medium-term EBITDA (earnings before interest, tax, depreciation, and amortization) targets, and, as a result, consensus estimates declined.

In contrast, a long position in Floor and Décor contributed to performance, as shares rose following the company’s IPO in April. We sold our position in May, as the stock approached our target valuation, and reinitiated a long position in July, after which shares again rose on the back of strong quarterly earnings. The Portfolio also benefited from its long position in Alphabet, as results showed solid growth in its core business, disciplined expense management, and increased optimism around more nascent, growth initiatives such as the company’s cloud computing business. A long position in Intercontinental Exchange also helped returns, as shares rose after the company’s monthly futures volumes showed signs of improvement, and management offered more details around the outlook for its data business at its investor day.

Annual Report  3

Notes to Investment Overviews:

All Portfolios’ 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, 2017; 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.

4  Annual Report

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, ICE BofAML U.S. Convertible ex Mandatory^® Index and HFRX Global Hedge Fund^® Index*

 

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year			Since Inception			†
Institutional Shares**		5.56	%		2.52	%
Open Shares**		5.16	%		2.18	%
ICE BofAML U.S. Convertible ex Mandatory Index		15.70	%		7.92	%
HFRX Global Hedge Fund Index		5.99	%		1.54	%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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”), if any, and may differ from amounts reported in the financial highlights. For Institutional Shares and Open Shares, a one-time voluntary reimbursement by the administrator increased the total return ratio by 0.49%.
	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 Portfolio shares, 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 ICE BofAML 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.

Annual Report  5

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, 2017

	One Year			Since Inception			†
Institutional Shares**		5.67	%		4.51	%
Open Shares**		5.43	%		4.24	%
S&P 500 Index		21.83	%		12.36	%
HFRX Equity Hedge Index		10.06	%		2.46	%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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 companies in leading industries of the US economy. The HFRX Equity Hedge Index consists of equity hedge funds that maintain positions both long and short in primarily equity and equity derivative securities. 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.

6  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 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, 2017 through December 31, 2017 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.

Annual Report  7

Portfolio†	Beginning Account Value 7/1/17	Ending Account Value 12/31/17	Expenses Paid During Period* 7/1/17 - 12/31/17	Annualized Expense Ratio During Period 7/1/17 - 12/31/17
Enhanced Opportunities
Institutional Shares
Actual	$1,000.00	$1,019.50	$19.90	3.91%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,005.49	$19.76	3.91%
Open Shares
Actual	$1,000.00	$1,018.00	$21.31	4.19%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,004.08	$21.17	4.19%
Fundamental Long/Short
Institutional Shares
Actual	$1,000.00	$1,023.00	$17.95	3.52%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,007.46	$17.81	3.52%
Open Shares
Actual	$1,000.00	$1,020.50	$19.61	3.85%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,005.80	$19.46	3.85%

*	Expenses are equal to the annualized expense ratio, net of expenses waivers and reimbursements, with the exception of a one-time voluntary reimbursement by the adminstrator for the Enhanced Opportunities Portfolio, of each Share class multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period).
†	The expense ratios include broker expense and dividend expense on securities sold short.

8  Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2017

	Lazard Enhanced Opportunities Portfolio						Lazard Fundamental Long/Short Portfolio
Sector	Long*			Short†			Long*			Short†
Consumer Discretionary		4.2	%		–6.9	%		8.2	%		–19.6	%
Consumer Staples		0.4			–0.6			0.8			–2.8
Energy		2.1			–2.6			5.1			—
Financials		9.8			–8.5			14.4			–6.8
Health Care		11.0			–19.8			4.9			–20.3
Industrials		6.9			–13.8			11.6			–19.5
Information Technology		9.4			–16.4			11.9			–24.4
Materials		4.1			–4.4			1.2			–6.6
Real Estate		3.7			–9.8			1.6			—
Exchange-Traded Funds		4.2			–16.4			—			—
Short-Term Investments		43.4			—			38.8			—
Telecommunication Services		—			—			1.5			—
Utilities		0.8			–0.8			—			—
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.

Annual Report  9

The Lazard Funds, Inc. Portfolios of Investments December 31, 2017

Description	Shares		Fair Value
Lazard Enhanced Opportunities Portfolio
Common Stocks | 8.3%
Austria | 0.0%
IMMOFINANZ AG		695	$	1,783
Canada | 0.1%
ECN Capital Corp.		1,495		4,674
Element Fleet Management Corp.		48		363
Teck Resources, Ltd., Class B		639		16,722
				21,759
Mexico | 0.2%
Cemex SAB de CV Sponsored ADR (*), (±)		4,468		33,510
United States | 8.0%
AK Steel Holding Corp. (*)		9,600		54,336
Allscripts Healthcare Solutions, Inc. (*)		300		4,365
Altra Industrial Motion Corp.		9,379		472,702
American Homes 4 Rent, Class A REIT		1,200		26,208
Arconic, Inc. (±)		78		2,125
Atlas Air Worldwide Holdings, Inc. (*)		309		18,123
Bottomline Technologies de, Inc. (*)		587		20,357
BroadSoft, Inc. (*)		800		43,920
CalAtlantic Group, Inc.		600		33,834
Chesapeake Energy Corp. (*)		10,700		42,372
Cisco Systems, Inc.		4,810		184,223
DISH Network Corp., Class A (*)		400		19,100
Dycom Industries, Inc. (*)		100		11,143
Encore Capital Group, Inc. (*)		449		18,903
Ensco PLC, Class A (±)		1,240		7,328
Ford Motor Co.		469		5,858
Green Plains, Inc.		2,300		38,755
Intercept Pharmaceuticals, Inc. (*)		600		35,052
Marriott Vacations Worldwide Corp. (±)		393		53,138
Molson Coors Brewing Co., Class B		300		24,621
Navistar International Corp. (*)		200		8,576
Pandora Media, Inc. (*)		500		2,410
PRA Group, Inc. (*)		100		3,320
Shutterfly, Inc. (*)		179		8,905
The Greenbrier Cos., Inc.		600		31,980
Trinity Industries, Inc.		200		7,492
Workday, Inc., Class A (*)		400		40,696
				1,219,842
Total Common Stocks (Cost $1,070,683)				1,276,894

Description	Security Currency	Principal Amount (000)	Fair Value
Convertible Corporate Bonds | 68.7%
Canada | 2.6%
Element Fleet Management Corp.:
5.125%, 06/30/19 (±)	CAD	255	$	206,414
4.250%, 06/30/20 (±)	CAD	234		185,692
				392,106
China | 0.5%
Weibo Corp., 1.250%, 11/15/22 (#), (±)	USD	65		71,378
Japan | 3.5%
Kansai Paint Co., Ltd., 0.000%, 06/17/22 (±)	JPY	10,000		98,181
Kyushu Electric Power Co., Inc.:
0.000%, 03/31/20 (*),(±)	JPY	10,000		90,304
0.000%, 03/31/22 (*),(±)	JPY	10,000		90,526
Mirait Holdings Corp., 0.000%, 12/30/21 (±)	JPY	5,000		56,412
Mitsubishi Chemical Holdings Corp.:
0.000%, 03/30/22 (±)	JPY	10,000		99,379
0.000%, 03/29/24 (±)	JPY	10,000		102,063
				536,865
Mexico | 1.0%
Cemex SAB de CV, 3.720%, 03/15/20 (±)	USD	155		161,394
United States | 61.1%
Aerojet Rocketdyne Holdings, Inc., 2.250%, 12/15/23 (±)	USD	124		170,732
Air Transport Services Group, Inc., 1.125%, 10/15/24 (±)	USD	50		51,625
AK Steel Corp., 5.000%, 11/15/19 (±)	USD	144		189,360
Allscripts Healthcare Solutions, Inc., 1.250%, 07/01/20 (±)	USD	62		66,301
American Residential Properties OP LP, 3.250%, 11/15/18 (#), (±)	USD	232		288,985
Amicus Therapeutics, Inc., 3.000%, 12/15/23 (#), (±)	USD	191		474,396
AmTrust Financial Services, Inc., 2.750%, 12/15/44 (±)	USD	65		46,800
Atlas Air Worldwide Holdings, Inc., 1.875%, 06/01/24 (±)	USD	62		73,005

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

10  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
BioMarin Pharmaceutical, Inc., 0.599%, 08/01/24 (±)	USD		62	$	61,768
CalAmp Corp., 1.625%, 05/15/20 (±)	USD		125		132,187
Carbonite, Inc., 2.500%, 04/01/22 (±)	USD		105		128,363
Carriage Services, Inc., 2.750%, 03/15/21 (±)	USD		97		120,826
Chart Industries, Inc., 1.000%, 11/15/24 (±)	USD		31		32,492
Cleveland-Cliffs, Inc., 1.500%, 01/15/25 (±)	USD		94		102,930
Colony NorthStar, Inc., 3.875%, 01/15/21 (±)	USD		74		73,538
Cowen, Inc., 3.000%, 12/15/22 (±)	USD		162		165,240
Cypress Semiconductor Corp.:
4.500%, 01/15/22 (±)	USD		106		139,125
2.000%, 02/01/23 (±)	USD		57		59,102
Dermira, Inc., 3.000%, 05/15/22 (#), (±)	USD		71		78,233
DexCom, Inc., 0.750%, 05/15/22 (±)	USD		31		29,121
DISH Network Corp., 2.375%, 03/15/24 (#), (±)	USD		35		33,622
Encore Capital Group, Inc., 3.250%, 03/15/22 (±)	USD		212		236,777
Everbridge, Inc., 1.500%, 11/01/22 (±)	USD		107		118,302
EZCORP, Inc.:
2.125%, 06/15/19 (±)	USD		109		112,134
2.875%, 07/01/24 (#), (±)	USD		125		174,453
FireEye, Inc., 1.625%, 06/01/35 (±)	USD		61		55,739
Flexion Therapeutics, Inc., 3.375%, 05/01/24 (±)	USD		60		72,863
Forest City Realty Trust, Inc.:
4.250%, 08/15/18 (±)	USD		159		185,434
3.625%, 08/15/20 (±)	USD		81		93,808
Granite Point Mortgage Trust, Inc., 5.625%, 12/01/22 (±)	USD		63		62,685
Green Plains, Inc.:
3.250%, 10/01/18 (±)	USD		269		293,378
4.125%, 09/01/22 (±)	USD		93		87,478

Description	Security Currency	Principal Amount (000)		Fair Value
HCI Group, Inc., 4.250%, 03/01/37 (#), (±)	USD		40	$	33,875
Herbalife, Ltd., 2.000%, 08/15/19 (±)	USD		63		63,315
Hercules Capital, Inc., 4.375%, 02/01/22 (#), (±)	USD		57		58,603
Horizon Global Corp., 2.750%, 07/01/22 (±)	USD		125		117,344
HubSpot, Inc., 0.250%, 06/01/22 (#), (±)	USD		44		50,628
IAC FinanceCo, Inc., 0.875%, 10/01/22 (±)	USD		12		12,675
IH Merger Sub LLC:
3.000%, 07/01/19 (±)	USD		213		273,971
3.500%, 01/15/22 (#), (±)	USD		158		183,477
II-VI, Inc., 0.250%, 09/01/22 (#), (±)	USD		88		105,820
Impax Laboratories, Inc., 2.000%, 06/15/22 (±)	USD		25		24,250
Innoviva, Inc.:
2.125%, 01/15/23 (±)	USD		178		175,997
2.500%, 08/15/25 (±)	USD		55		58,300
Inphi Corp., 1.125%, 12/01/20 (±)	USD		62		71,804
Insulet Corp., 1.375%, 11/15/24 (±)	USD		63		63,827
InterDigital, Inc., 1.500%, 03/01/20 (±)	USD		50		59,625
Invacare Corp., 5.000%, 02/15/21 (±)	USD		183		224,747
Kaman Corp., 3.250%, 05/01/24 (±)	USD		151		167,893
Knowles Corp., 3.250%, 11/01/21 (±)	USD		121		134,159
Liberty Interactive LLC:
4.000%, 11/15/29 (±)	USD		235		163,480
3.750%, 02/15/30 (±)	USD		64		44,160
Liberty Media Corp-Liberty Formula One, 1.000%, 01/30/23 (#), (±)	USD		62		69,208
Microchip Technology, Inc.:
1.625%, 02/15/27 (±)	USD		116		135,937
2.250%, 02/15/37 (±)	USD		26		30,550
Micron Technology, Inc., 3.000%, 11/15/43 (±)	USD		63		90,838

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)
Navistar International Corp.:
4.500%, 10/15/18 (±)	USD		124	$	127,953
4.750%, 04/15/19 (±)	USD		119		128,817
Neurocrine Biosciences, Inc., 2.250%, 05/15/24 (#), (±)	USD		113		144,287
ON Semiconductor Corp., 1.625%, 10/15/23 (#), (±)	USD		32		39,420
OSI Systems, Inc., 1.250%, 09/01/22 (#), (±)	USD		44		39,600
Pacira Pharmaceuticals, Inc., 2.375%, 04/01/22 (±)	USD		25		26,125
PDL BioPharma, Inc., 2.750%, 12/01/21 (±)	USD		127		122,158
PRA Group, Inc.:
3.000%, 08/01/20 (±)	USD		50		47,750
3.500%, 06/01/23 (±)	USD		108		107,798
Quidel Corp., 3.250%, 12/15/20 (±)	USD		73		110,093
Radius Health, Inc., 3.000%, 09/01/24 (±)	USD		191		179,659
Rambus, Inc., 1.375%, 02/01/23 (#), (±)	USD		127		126,841
Redwood Trust, Inc., 4.750%, 08/15/23 (±)	USD		101		97,465
RTI International Metals, Inc., 1.625%, 10/15/19 (±)	USD		53		60,486
RWT Holdings, Inc., 5.625%, 11/15/19 (±)	USD		138		139,035
Sarepta Therapeutics, Inc., 1.500%, 11/15/24 (±)	USD		63		67,331
ServiceNow, Inc., 0.000%, 06/01/22 (±)	USD		30		34,331
Silicon Laboratories, Inc., 1.375%, 03/01/22 (±)	USD		19		21,862
Square, Inc., 0.375%, 03/01/22 (#), (±)	USD		32		52,180
Starwood Property Trust, Inc., 4.375%, 04/01/23 (±)	USD		63		64,024
Sucampo Pharmaceuticals, Inc., 3.250%, 12/15/21	USD		50		60,719
Teladoc, Inc., 3.000%, 12/15/22 (±)	USD		63		70,836
TerraVia Holdings, Inc., 5.000%, 10/01/19 (Π), (±)	USD		216		19,980

Description	Security Currency	Principal Amount (000)		Fair Value
Tesla, Inc., 2.375%, 03/15/22 (±)	USD		198	$	230,299
The Greenbrier Cos., Inc., 2.875%, 02/01/24 (#), (±)	USD		28		33,355
The Medicines Co., 2.750%, 07/15/23 (±)	USD		63		57,606
Trinity Industries, Inc., 3.875%, 06/01/36 (±)	USD		124		195,222
Viavi Solutions, Inc., 1.000%, 03/01/24 (#), (±)	USD		50		49,281
Wayfair, Inc., 0.375%, 09/01/22 (±)	USD		63		65,756
Workday, Inc., 0.250%, 10/01/22 (±)	USD		63		62,291
Wright Medical Group NV, 2.250%, 11/15/21 (±)	USD		153		186,277
Wright Medical Group, Inc., 2.000%, 02/15/20 (±)	USD		125		128,203
Zillow Group, Inc., 2.000%, 12/01/21 (±)	USD		44		47,960
					9,370,285
Total Convertible Corporate Bonds (Cost $10,198,861)					10,532,028
Description		Shares		Fair Value
Preferred Stocks | 1.3%
United States | 1.3%
2017 Mandatory Exchangeable Trust (±)			819	$	84,521
Virtus Investment Partners, Inc. (±)			1,142		116,369
Total Preferred Stocks (Cost $197,341)					200,890
Exchange-Traded Funds | 6.3%
Energy Select Sector SPDR Fund			1,200		86,712
iShares Russell 2000 ETF			1,200		182,952
SPDR S&P 500 ETF Trust			2,400		640,464
SPDR S&P Retail ETF			1,200		54,216
Total Exchange-Traded Funds (Cost $885,032)					964,344

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

12  Annual Report

Description	Counterparty	Notional Amount		Number of Contracts			Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
Purchased Options | 0.0%
Call
AK Steel Holding Corp. 7, Expires 01/19/18	RBS	$	6,400		64		$	192
DISH Network Corp. 52.5, Expires 01/19/18	RBS		300		3			135
Trinity Industries, Inc. 37, Expires 01/19/18	RBS		400		4			460
Total Purchased Options (Cost $2,678)								787
Description				Shares				Fair Value
Short-Term Investments | 65.0%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $9,957,985)					9,957,985		$	9,957,985
Total Investments excluding Securities Sold Short | 149.6% (Cost $22,312,580)								22,932,928
Securities Sold Short | (48.3)%
Common Stocks | (40.4)%
Austria | 0.0%
IMMOFINANZ AG					(695	)		(1,783	)
Canada | (0.2)%
ECN Capital Corp.					(1,495	)		(4,674	)
Element Fleet Management Corp.					(2,045	)		(15,455	)
Teck Resources, Ltd., Class B					(639	)		(16,723	)
								(36,852	)
China | (0.2)%
Weibo Corp. Sponsored ADR (*)					(268	)		(27,727	)

Description	Shares			Fair Value
Japan | (0.8)%
Kansai Paint Co., Ltd.		(1,300	)	$	(33,756	)
Kyushu Electric Power Co., Inc.		(5,700	)		(59,707	)
Mirait Holdings Corp.		(800	)		(11,910	)
Mitsubishi Chemical Holdings Corp.		(1,600	)		(17,565	)
					(122,938	)
Mexico | (0.5)%
Cemex SAB de CV Sponsored ADR (*)		(9,015	)		(67,613	)
United States | (38.7)%
Aerojet Rocketdyne Holdings, Inc. (*)		(2,626	)		(81,931	)
Air Transport Services Group, Inc. (*)		(1,022	)		(23,649	)
AK Steel Holding Corp. (*)		(28,849	)		(163,285	)
Allscripts Healthcare Solutions, Inc. (*)		(2,333	)		(33,945	)
Altra Industrial Motion Corp.		(9,379	)		(472,702	)
American Homes 4 Rent, Class A REIT		(10,783	)		(235,501	)
Amicus Therapeutics, Inc. (*)		(29,094	)		(418,663	)
AmTrust Financial Services, Inc.		(632	)		(6,364	)
Atlas Air Worldwide Holdings, Inc. (*)		(981	)		(57,536	)
BioMarin Pharmaceutical, Inc. (*)		(300	)		(26,751	)
Bottomline Technologies de, Inc. (*)		(587	)		(20,357	)
BroadSoft, Inc. (*)		(800	)		(43,920	)
CalAmp Corp. (*)		(2,111	)		(45,239	)
CalAtlantic Group, Inc.		(600	)		(33,834	)
Carbonite, Inc. (*)		(2,832	)		(71,083	)
Carriage Services, Inc.		(3,128	)		(80,421	)
Chart Industries, Inc. (*)		(254	)		(11,902	)
Chesapeake Energy Corp. (*)		(1,400	)		(5,544	)
Cisco Systems, Inc.		(4,810	)		(184,223	)
Cleveland-Cliffs, Inc. (*)		(3,831	)		(27,621	)
Colony NorthStar, Inc., Class A REIT		(1,800	)		(20,538	)
Cowen, Inc. (*)		(5,185	)		(70,775	)
Cypress Semiconductor Corp.		(5,907	)		(90,023	)
Dermira, Inc. (*)		(766	)		(21,302	)
DexCom, Inc. (*)		(166	)		(9,527	)
DISH Network Corp., Class A (*)		(651	)		(31,085	)
Dycom Industries, Inc. (*)		(100	)		(11,143	)
Encore Capital Group, Inc. (*)		(4,099	)		(172,568	)
Everbridge, Inc. (*)		(1,746	)		(51,891	)
EZCORP, Inc. Class A (*)		(11,770	)		(143,594	)
Flexion Therapeutics, Inc. (*)		(1,040	)		(26,042	)
Ford Motor Co.		(469	)		(5,858	)
Forest City Realty Trust, Inc., Class A REIT		(7,772	)		(187,305	)
Green Plains, Inc.		(10,986	)		(185,114	)
HCI Group, Inc.		(389	)		(11,631	)
Herbalife, Ltd. (*)		(352	)		(23,837	)
Hercules Capital, Inc.		(637	)		(8,357	)

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

Annual Report  13

Description	Shares			Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
Horizon Global Corp. (*)		(3,213	)	$	(45,046	)
HubSpot, Inc. (*)		(270	)		(23,868	)
II-VI, Inc. (*)		(1,272	)		(59,720	)
Impax Laboratories, Inc. (*)		(44	)		(733	)
Innoviva, Inc. (*)		(7,732	)		(109,717	)
Inphi Corp. (*)		(1,029	)		(37,661	)
Insulet Corp. (*)		(377	)		(26,013	)
Intercept Pharmaceuticals, Inc. (*)		(600	)		(35,052	)
InterDigital, Inc.		(365	)		(27,795	)
Invacare Corp.		(8,987	)		(151,431	)
Invitation Homes, Inc. REIT		(11,908	)		(280,672	)
Kaman Corp.		(995	)		(58,546	)
KB Home		(273	)		(8,722	)
Knowles Corp. (*)		(3,615	)		(52,996	)
Liberty Media Corp-Liberty Formula One (*)		(1,143	)		(39,045	)
Marriott Vacations Worldwide Corp.		(331	)		(44,754	)
Microchip Technology, Inc.		(1,616	)		(142,014	)
Micron Technology, Inc. (*)		(2,096	)		(86,188	)
Molson Coors Brewing Co., Class B		(300	)		(24,621	)
Navistar International Corp. (*)		(1,742	)		(74,697	)
Neurocrine Biosciences, Inc. (*)		(1,026	)		(79,607	)
ON Semiconductor Corp. (*)		(903	)		(18,909	)
OSI Systems, Inc. (*)		(195	)		(12,554	)
Pacira Pharmaceuticals, Inc. (*)		(188	)		(8,582	)
Pandora Media, Inc. (*)		(500	)		(2,410	)
PDL BioPharma, Inc. (*)		(24,834	)		(68,045	)
PRA Group, Inc. (*)		(1,764	)		(58,565	)
Quidel Corp. (*)		(1,719	)		(74,519	)
Radius Health, Inc. (*)		(2,661	)		(84,540	)
Rambus, Inc. (*)		(4,026	)		(57,250	)
Redwood Trust, Inc. REIT		(2,274	)		(33,701	)
Sarepta Therapeutics, Inc. (*)		(604	)		(33,607	)
ServiceNow, Inc. (*)		(89	)		(11,605	)
Shutterfly, Inc. (*)		(179	)		(8,905	)
Silicon Laboratories, Inc. (*)		(131	)		(11,567	)
Square, Inc. Class A (*)		(1,255	)		(43,511	)

Description	Shares			Fair Value
Starwood Property Trust, Inc. REIT		(577	)	$	(12,319	)
Sucampo Pharmaceuticals, Inc., Class A (*)		(2,109	)		(37,857	)
Teladoc, Inc. (*)		(1,016	)		(35,408	)
Tesla, Inc. (*)		(440	)		(136,994	)
The Greenbrier Cos., Inc.		(846	)		(45,092	)
The Medicines Co. (*)		(694	)		(18,974	)
The New York Times Co., Class A		(2,470	)		(45,695	)
Trinity Industries, Inc.		(4,541	)		(170,106	)
Viavi Solutions, Inc. (*)		(2,477	)		(21,649	)
Virtus Investment Partners, Inc.		(777	)		(89,394	)
Wayfair, Inc., Class A (*)		(390	)		(31,305	)
Workday, Inc., Class A (*)		(572	)		(58,195	)
Wright Medical Group NV (*)		(7,370	)		(163,614	)
Zillow Group, Inc. Class C (*)		(387	)		(15,836	)
					(5,934,667	)
Total Common Stocks (Proceeds $5,838,545)					(6,191,580	)
Exchange-Traded Funds | (7.9)%
Energy Select Sector SPDR Fund		(1,200	)		(86,712	)
iShares 7-10 Year Treasury Bond ETF		(2,411	)		(254,529	)
iShares Russell 2000 ETF		(1,200	)		(182,952	)
SPDR S&P 500 ETF Trust		(2,400	)		(640,464	)
SPDR S&P Retail ETF		(1,200	)		(54,216	)
Total Exchange-Traded Funds (Proceeds $1,193,402)					(1,218,873	)
Total Securities Sold Short (Proceeds $7,031,947)					(7,410,453	)
Total Investments | 101.3% (Cost and short proceeds $15,280,633) (¤)				$	15,522,475
Liabilities in Excess of Cash and Other Assets | (1.3)%					(199,060	)
Net Assets | 100.0%				$	15,323,415

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

14  Annual Report

Lazard Enhanced Opportunities Portfolio (concluded)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
USD		402,938	CAD		515,000	SSB	03/15/18		$	—		$	7,162
USD		26,096	EUR		22,000	SSB	03/15/18			—			413
USD		364,616	JPY		40,789,000	SSB	03/15/18			1,346			—
Total gross unrealized appreciation/depreciation on Forward Currency Contracts									$	1,346		$	7,575

Written Options open at December 31, 2017:

Description	Counterparty	Number of Contracts	Strike Price	Expiration Date	Notional Amount		Premiums		Fair Value
Put
AK Steel Holding Corp. 5.5	RBS	32	$5.50	01/19/18		$3,200		$1,223		$(608	)

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

Annual Report  15

Description	Shares	Fair Value
Lazard Fundamental Long/Short Portfolio
Common Stocks | 86.9%
Banks | 17.4%
Citigroup, Inc. (±)	36,185	$	2,692,526
Citizens Financial Group, Inc. (±)	70,945		2,978,271
Comerica, Inc. (±)	34,755		3,017,081
Sterling Bancorp (±)	93,245		2,293,827
SunTrust Banks, Inc. (±)	37,100		2,396,289
			13,377,994
Beverages | 1.1%
Molson Coors Brewing Co., Class B	10,040		823,983
Biotechnology | 3.9%
Agios Pharmaceuticals, Inc. (*)	9,505		543,401
Biogen, Inc. (*), (±)	6,370		2,029,291
BioMarin Pharmaceutical, Inc. (*)	4,935		440,054
			3,012,746
Capital Markets | 3.0%
Intercontinental Exchange, Inc. (±)	32,755		2,311,193
Communications Equipment | 5.7%
Cisco Systems, Inc. (±)	69,930		2,678,319
Motorola Solutions, Inc.	18,817		1,699,928
			4,378,247
Diversified Telecommunication Services | 2.1%
AT&T, Inc.	41,970		1,631,794
Electrical Equipment | 1.8%
Eaton Corp. PLC	17,550		1,386,625
Energy Equipment & Services | 3.6%
NCS Multistage Holdings, Inc.	35,900		529,166
U.S. Silica Holdings, Inc. (±)	67,715		2,204,800
			2,733,966
Equity Real Estate Investment Trusts (REITs) | 2.4%
Prologis, Inc.	28,135		1,814,989
Health Care Equipment & Supplies | 1.5%
Medtronic PLC	14,512		1,171,844
Health Care Providers & Services | 1.5%
Humana, Inc.	4,678		1,160,471

Description	Shares	Fair Value
Industrial Conglomerates | 2.6%
Honeywell International, Inc. (±)	12,964	$	1,988,159
Internet Software & Services | 4.5%
Alphabet, Inc., Class C (*)	810		847,584
eBay, Inc. (*), (±)	70,150		2,647,461
			3,495,045
IT Services | 4.1%
CoreLogic, Inc. (*)	18,200		841,022
DXC Technology Co. (±)	24,701		2,344,125
			3,185,147
Machinery | 12.1%
Allison Transmission Holdings, Inc.	18,900		814,023
Caterpillar, Inc.	12,200		1,922,476
Deere & Co. (±)	18,724		2,930,493
Parker-Hannifin Corp. (±)	18,166		3,625,570
			9,292,562
Media | 1.2%
Comcast Corp., Class A	23,395		936,970
Metals & Mining | 1.8%
Steel Dynamics, Inc.	31,490		1,358,164
Multiline Retail | 1.2%
Dollar Tree, Inc. (*)	8,900		955,059
Oil, Gas & Consumable Fuels | 3.7%
ConocoPhillips (±)	51,620		2,833,422
Semiconductors & Semiconductor Equipment | 2.5%
Cypress Semiconductor Corp.	79,886		1,217,462
Skyworks Solutions, Inc.	7,145		678,418
			1,895,880
Specialty Retail | 7.6%
Floor & Decor Holdings, Inc., Class A	46,300		2,253,884
Lowe’s Cos., Inc. (±)	38,182		3,548,635
			5,802,519
Textiles, Apparel & Luxury Goods | 1.6%
Lululemon Athletica, Inc. (*)	15,810		1,242,508
Total Common Stocks (Cost $57,789,651)			66,789,287

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

16  Annual Report

Description	Shares		Fair Value
Lazard Fundamental Long/Short Portfolio (continued)
Short-Term Investments | 55.0%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $42,276,942)	42,276,942		$	42,276,942
Total Investments excluding Securities Sold Short | 141.9% (Cost $100,066,593)				109,066,229
Securities Sold Short | (41.8)%
Common Stocks | (41.8)%
Airlines | (0.8)%
United Continental Holdings, Inc. (*)	(9,220	)		(621,428	)
Banks | (0.9)%
United Bankshares, Inc.	(19,085	)		(663,204	)
Beverages | (0.6)%
Dr Pepper Snapple Group, Inc.	(4,815	)		(467,344	)
Biotechnology | (2.8)%
Bioverativ, Inc. (*)	(7,800	)		(420,576	)
Regeneron Pharmaceuticals, Inc. (*)	(1,925	)		(723,723	)
United Therapeutics Corp. (*)	(6,781	)		(1,003,249	)
				(2,147,548	)
Capital Markets | (2.0)%
Thomson Reuters Corp.	(17,400	)		(758,466	)
Waddell & Reed Financial, Inc., Class A	(34,763	)		(776,605	)
				(1,535,071	)
Commercial Services & Supplies | (1.1)%
Ritchie Bros Auctioneers, Inc.	(14,600	)		(436,978	)
Stericycle, Inc. (*)	(5,710	)		(388,223	)
				(825,201	)
Communications Equipment | (0.4)%
Infinera Corp. (*)	(45,434	)		(287,597	)
Construction & Engineering | (1.5)%
Fluor Corp.	(21,854	)		(1,128,759	)

Description	Shares			Fair Value
Containers & Packaging | (2.8)%
International Paper Co.	(8,500	)	$	(492,490	)
Owens-Illinois, Inc. (*)	(23,345	)		(517,558	)
Packaging Corp. of America	(4,845	)		(584,065	)
WestRock Co.	(8,500	)		(537,285	)
				(2,131,398	)
Electronic Equipment, Instruments & Components | (1.8)%
AU Optronics Corp. Sponsored ADR	(173,400	)		(721,344	)
LG Display Co., Ltd. ADR	(49,700	)		(683,872	)
				(1,405,216	)
Food Products | (0.5)%
Post Holdings, Inc. (*)	(5,275	)		(417,938	)
Health Care Providers & Services | (0.7)%
LifePoint Health, Inc. (*)	(11,035	)		(549,543	)
Health Care Technology | (0.6)%
athenahealth, Inc. (*)	(3,475	)		(462,314	)
Hotels, Restaurants & Leisure | (3.2)%
Cracker Barrel Old Country Store, Inc.	(8,378	)		(1,331,180	)
The Cheesecake Factory, Inc.	(22,750	)		(1,096,095	)
				(2,427,275	)
Internet Software & Services | (0.4)%
TrueCar, Inc. (*)	(26,600	)		(297,920	)
IT Services | (4.3)%
Acxiom Corp. (*)	(18,635	)		(513,580	)
Amdocs, Ltd.	(13,646	)		(893,540	)
Cognizant Technology Solutions Corp., Class A	(5,437	)		(386,136	)
Convergys Corp.	(32,100	)		(754,350	)
Infosys, Ltd. Sponsored ADR	(25,462	)		(412,994	)
Square, Inc. Class A (*)	(9,315	)		(322,951	)
				(3,283,551	)
Life Sciences Tools & Services | (1.2)%
Waters Corp. (*)	(4,869	)		(940,642	)
Machinery | (0.7)%
Graco, Inc.	(11,751	)		(531,380	)

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

Annual Report  17

Description	Shares		Fair Value
Lazard Fundamental Long/Short Portfolio (concluded)
Media | (1.8)%
Altice USA, Inc., Class A	(21,165	)	$	(449,333	)
Omnicom Group, Inc.	(7,190	)		(523,648	)
The Interpublic Group of Cos., Inc.	(19,165	)		(386,366	)
				(1,359,347	)
Multiline Retail | (1.3)%
Macy’s, Inc.	(40,956	)		(1,031,682	)
Pharmaceuticals | (3.1)%
Allergan PLC	(3,810	)		(623,240	)
Merck & Co., Inc.	(13,284	)		(747,491	)
Roche Holding AG Sponsored ADR	(19,000	)		(600,020	)
Sanofi ADR	(10,507	)		(451,801	)
				(2,422,552	)
Professional Services | (1.1)%
Equifax, Inc.	(3,730	)		(439,842	)
The Dun & Bradstreet Corp.	(3,261	)		(386,135	)
				(825,977	)
Road & Rail | (0.8)%
Canadian National Railway Co.	(7,110	)		(586,575	)
Software | (2.5)%
Blackline, Inc. (*)	(7,700	)		(252,560	)
Electronic Arts, Inc. (*)	(5,070	)		(532,654	)
Workiva, Inc. (*)	(36,300	)		(776,820	)
Zendesk, Inc. (*)	(10,200	)		(345,168	)
				(1,907,202	)

Description	Shares		Fair Value
Technology Hardware, Storage & Peripherals | (0.8)%
Hewlett Packard Enterprise Co.	(44,356	)	$	(636,952	)
Textiles, Apparel & Luxury Goods | (1.9)%
Hanesbrands, Inc.	(40,138	)		(839,286	)
VF Corp.	(8,700	)		(643,800	)
				(1,483,086	)
Trading Companies & Distributors | (2.2)%
HD Supply Holdings, Inc. (*)	(14,800	)		(592,444	)
MSC Industrial Direct Co., Inc., Class A	(5,600	)		(541,296	)
WW Grainger, Inc.	(2,488	)		(587,790	)
				(1,721,530	)
Total Securities Sold Short (Proceeds $30,607,069)				(32,098,232	)
Total Investments | 100.1% (Cost and short proceeds $69,459,524)			$	76,967,997
Liabilities in Excess of Cash and Other Assets | (0.1)%				(100,400	)
Net Assets | 100.0%			$	76,867,597

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

18  Annual Report

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2017

(*)	Non-income producing security.
(±)	Some or all of this security position has been pledged to cover collateral requirements on securities sold short.
(#)	Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2017, the percentage of net assets for the following Portfolio was as follows:

Portfolio	Percentage of Net Assets
Enhanced Opportunities	13.8%

(Π)	Issue in default.
(¤)	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.

Annual Report  19

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	1.1	%	–0.5	%
Air Freight & Logistics	0.9		–0.5
Auto Components	0.8		–0.3
Automobiles	1.5		–0.9
Beverages	0.2		–0.2
Biotechnology	7.6		–5.0
Capital Markets	2.2		–1.1
Chemicals	2.1		–0.3
Communications Equipment	2.8		–1.8
Construction & Engineering	0.4		–0.2
Construction Materials	1.3		–0.4
Consumer Finance	4.6		–2.4
Diversified Consumer Services	0.8		–0.5
Diversified Financial Services	3.1		–0.1
Electric Utilities	1.2		–0.4
Electronic Equipment, Instruments & Components	1.8		–0.8
Energy Equipment & Services	0.1		—
Equity Real Estate Investment Trusts (REITs)	8.2		–4.7
Health Care Equipment & Supplies	4.8		–2.8
Health Care Technology	0.9		–0.5
Hotels, Restaurants & Leisure	0.3		–0.3
Household Durables	0.2		–0.3
Insurance	0.5		–0.1
Internet & Direct Marketing Retail	0.5		–0.3
Internet Software & Services	1.7		–0.8
IT Services	0.3		–0.3
Machinery	6.8		–5.0
Media	2.2		–0.8
Metals & Mining	2.8		–1.4
Mortgage Real Estate Investment Trusts (REITs)	1.5		–0.3
Oil, Gas & Consumable Fuels	3.0		–1.2
Personal Products	0.4		–0.2
Pharmaceuticals	3.1		–1.3
Semiconductors & Semiconductor Equipment	4.7		–2.9
Software	2.8		–1.4
Trading Companies & Distributors	1.1		–0.4
Subtotal	78.3		–40.4
Exchange-Traded Funds	6.3		–7.9
Short-Term Investments	65.0		—
Total Investments	149.6	%	–48.3	%

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

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

20  Annual Report

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2017	Lazard Enhanced Opportunities Portfolio			Lazard Fundamental Long/Short Portfolio
ASSETS
Investments in securities, at fair value	$	22,932,928		$	109,066,229
Cash collateral due from broker on options		36,600			—
Receivables for:
Dividends and interest		83,631			104,538
Capital stock sold		—			103,736
Investments sold		78,441			—
Amount due from administrator		67,455			—
Amount due from Investment Manager (Note 3)		12,701			—
Gross unrealized appreciation on forward currency contracts		1,346			—
Prepaid expenses		4,822			6,483
Total assets		23,217,924			109,280,986
LIABILITIES
Securities sold short, at fair value		7,410,453			32,098,232
Due to custodian		5,250			2,340
Payables for:
Management fees		—			98,950
Accrued distribution fees		25			3,498
Accrued custodian fees		142,176			84,218
Accrued professional services		22,491			25,065
Accrued shareholders’ reports		170			16,301
Dividends on securities sold short		8,427			52,613
Capital stock redeemed		200,000			27,534
Investments purchased		94,728			—
Gross unrealized depreciation on forward currency contracts		7,575			—
Written options, at fair value		608			—
Other accrued expenses and payables		2,606			4,638
Total liabilities		7,894,509			32,413,389
Net assets	$	15,323,415		$	76,867,597
NET ASSETS
Paid in capital	$	15,999,331		$	82,009,517
Undistributed (Distributions in excess of) net investment income (loss)		(85,269	)		(62,150	)
Accumulated net realized gain (loss)		(826,911	)		(12,588,243	)
Net unrealized appreciation (depreciation) on:
Investments		620,348			8,999,636
Securities sold short		(378,506	)		(1,491,163	)
Foreign currency translations and forward currency contracts		(6,193	)		—
Written options		615			—
Net assets	$	15,323,415		$	76,867,597
Institutional Shares
Net assets	$	15,206,047		$	60,241,488
Shares of capital stock outstanding*		1,754,786			5,209,211
Net asset value, offering and redemption price per share	$	8.67		$	11.56
Open Shares
Net assets	$	117,368		$	16,626,109
Shares of capital stock outstanding*		13,575			1,451,456
Net asset value, offering and redemption price per share	$	8.65		$	11.45
Cost of investments in securities	$	22,312,580		$	100,066,593
Proceeds received from securities sold short	$	7,031,947		$	30,607,069
Proceeds received from written options	$	1,223		$	—

* $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.

Annual Report  21

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2017	Lazard Enhanced Opportunities Portfolio			Lazard Fundamental Long/Short Portfolio
Investment Income (Loss)
Income
Dividends	$	33,296		$	1,935,924
Interest		545,663			—
Total investment income*		578,959			1,935,924
Expenses
Management fees (Note 3)		195,988			1,511,293
Custodian fees		169,668			60,923
Professional services		49,363			47,698
Distribution fees (Open Shares)		292			37,932
Shareholders’ reports		5,476			30,973
Administration fees		16,781			30,446
Shareholders’ services		26,056			27,678
Directors’ fees and expenses		5,505			9,368
Shareholders’ meeting		2,280			4,843
Other		43,068			41,243
Total gross expenses before expenses on securities sold short		514,477			1,802,397
Broker expense on securities sold short		132,963			773,077
Dividend expense on securities sold short		96,351			1,297,581
Total gross expenses		743,791			3,873,055
Management fees waived and expenses reimbursed		(269,589	)		—
Administration fees waived		(4,688	)		—
Voluntary reimbursement by administrator		(64,341	)		—
Total net expenses		405,173			3,873,055
Net investment income (loss)		173,786			(1,937,131	)
Net Realized and Unrealized Gain (Loss) on Investments, Securities Sold Short, Foreign Currency Transactions, Forward Currency Contracts and Options
Net realized gain (loss) on:
Investments		1,889,592			17,158,408
Securities sold short		(1,349,362	)		(11,515,564	)
Foreign currency transactions		(5,233	)		(54	)
Forward currency contracts		(23,571	)		—
Written options		51,117			—
Total net realized gain (loss) on investments, securities sold short, foreign currency transactions, forward currency contracts and options		562,543			5,642,790
Net change in unrealized appreciation (depreciation) on:
Investments		(219,625	)		1,099,353
Securities sold short		251,687			1,335,615
Foreign currency translations		158			—
Forward currency contracts		(8,398	)		—
Written options		(11,355	)		—
Total net change in unrealized appreciation (depreciation) on investments, securities sold short, foreign currency translations, forward currency contracts and options		12,467			2,434,968
Net realized and unrealized gain (loss) on investments, securities sold short, foreign currency transactions, forward currency contracts and options		575,010			8,077,758
Net increase (decrease) in net assets resulting from operations	$	748,796		$	6,140,627
* Net of foreign withholding taxes of	$	313		$	1,862

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

22  Annual Report

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

	Lazard Enhanced Opportunities Portfolio							Lazard Fundamental Long/Short Portfolio
	Year Ended December 31, 2017				Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	173,786		$	114,285		$	(1,937,131	)	$	(1,204,224	)
Net realized gain (loss) on investments, securities sold short, foreign currency transactions, forward currency contracts and options			562,543			218,650			5,642,790			(17,455,124	)
Net change in unrealized appreciation (depreciation) on investments, securities sold short, foreign currency translations, forward currency contracts and options			12,467			469,942			2,434,968			(4,510,403	)
Net increase (decrease) in net assets resulting from operations			748,796			802,877			6,140,627			(23,169,751	)
Distributions to shareholders
From net investment income
Institutional Shares			(274,175	)		(133,630	)		—			—
Open Shares			(1,785	)		(675	)		—			—
From net realized gains
Institutional Shares			(1,360,895	)		(87,176	)		—			—
Open Shares			(10,286	)		(618	)		—			—
Net decrease in net assets resulting from distributions			(1,647,141	)		(222,099	)		—			—
Capital stock transactions
Net proceeds from sales
Institutional Shares			3,913,116			20,015,000			22,134,379			182,640,613
Open Shares			2,100			—			6,160,051			22,492,177
Net proceeds from reinvestment of distributions
Institutional Shares			1,608,034			198,202			—			—
Open Shares			12,071			1,293			—			—
Cost of shares redeemed
Institutional Shares			(3,500,001	)		(11,536,647	)		(76,325,182	)		(229,087,765	)
Open Shares			(2,057	)		(2,445	)		(4,076,341	)		(51,413,266	)
Net increase (decrease) in net assets from capital stock transactions			2,033,263			8,675,403			(52,107,093	)		(75,368,241	)
Redemption fees (Note 2 (i))
Institutional Shares			—			—			—			1,872
Open Shares			—			—			—			3,016
Net increase in net assets from redemption fees			—			—			—			4,888
Total increase (decrease) in net assets			1,134,918			9,256,181			(45,966,466	)		(98,533,104	)
Net assets at beginning of period			14,188,497			4,932,316			122,834,063			221,367,167
Net assets at end of period*		$	15,323,415		$	14,188,497		$	76,867,597		$	122,834,063
*Includes undistributed (distributions in excess of) net investment income (loss) of		$	(85,269	)	$	(70,690	)	$	(62,150	)	$	(78,636	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			1,537,093			542,467			9,973,109			14,687,573
Shares sold			409,971			2,243,832			1,961,981			16,178,691
Shares issued to shareholders from reinvestment of distributions			181,646			21,685			—			—
Shares redeemed			(373,924	)		(1,270,891	)		(6,725,879	)		(20,893,155	)
Net increase (decrease)			217,693			994,626			(4,763,898	)		(4,714,464	)
Shares outstanding at end of period			1,754,786			1,537,093			5,209,211			9,973,109
Open Shares
Shares outstanding at beginning of period			12,204			12,328			1,267,969			3,948,574
Shares sold			224			—			548,164			1,999,992
Shares issued to shareholders from reinvestment of distributions			1,365			141			—			—
Shares redeemed			(218	)		(265	)		(364,677	)		(4,680,597	)
Net increase (decrease)			1,371			(124	)		183,487			(2,680,605	)
Shares outstanding at end of period			13,575			12,204			1,451,456			1,267,969

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

Annual Report  23

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	12/31/17			12/31/16			12/31/15			12/31/14*
Institutional Shares
Net asset value, beginning of period	$	9.16		$	8.89		$	10.00		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.11	^		0.05			(0.02	)		—	(b)
Net realized and unrealized gain (loss)		0.40			0.35			(0.21	)		—	(b)
Total from investment operations		0.51			0.40			(0.23	)		—	(b)
Less distributions from:
Net investment income		(0.17	)		(0.08	)		(0.14	)		—
Net realized gains		(0.83	)		(0.05	)		(0.35	)		—
Return of capital		—			—			(0.39	)		—
Total distributions		(1.00	)		(0.13	)		(0.88	)		—
Net asset value, end of period	$	8.67		$	9.16		$	8.89		$	10.00
Total Return (c)		5.56	%^		4.50	%		–2.32	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	15,206		$	14,077		$	4,823		$	4,899
Ratios to average net assets (d):
Net expenses		2.78	%^		1.79	%		1.70	%		1.70	%
Gross expenses		5.02	%^		3.60	%		13.45	%		69.35	%(e)
Gross expenses, excluding expenses on securities sold short		3.45	%		3.51	%		13.45	%		69.35	%
Net investment income (loss)		1.20	%^		0.57	%		–0.22	%		–1.70	%
Portfolio turnover rate:
Excluding securities sold short		210	%		247	%		639	%		37	%
Including securities sold short		310	%		340	%		N/A			N/A
Selected data for a share of capital	Year Ended									Period Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14*
Open Shares
Net asset value, beginning of period	$	9.15		$	8.89		$	10.00		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.10	^		0.04			(0.05	)		—	(b)
Net realized and unrealized gain (loss)		0.37			0.33			(0.21	)		—	(b)
Total from investment operations		0.47			0.37			(0.26	)		—	(b)
Less distributions from:
Net investment income		(0.14	)		(0.06	)		(0.11	)		—
Net realized gains		(0.83	)		(0.05	)		(0.35	)		—
Return of capital		—			—			(0.39	)		—
Total distributions		(0.97	)		(0.11	)		(0.85	)		—
Net asset value, end of period	$	8.65		$	9.15		$	8.89		$	10.00
Total Return (c)		5.16	%^		4.13	%		–2.57	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	117		$	112		$	110		$	100
Ratios to average net assets (d):
Net expenses		3.01	%^		2.07	%		1.95	%		1.95	%
Gross expenses		16.40	%^		15.58	%		26.46	%		69.36	%(e)
Gross expenses, excluding expenses on securities sold short		14.85	%		15.46	%		26.46	%		69.36	%
Net investment income (loss)		1.06	%^		0.45	%		–0.46	%		–1.95	%
Portfolio turnover rate:
Excluding securities sold short		210	%		247	%		639	%		37	%
Including securities sold short		310	%		340	%		N/A			N/A

^	A one-time voluntary reimbursement by the administrator increased the net investment income per share amount of $0.04 per share. For Institutional Shares and Open Shares, the one-time voluntary reimbursement by the administrator increased the total return ratio by 0.49%, decreased the gross expense and net expense ratios by 0.44% and increased the net investment income (loss) ratio by 0.44%.
*	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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are 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.

24  Annual Report

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	12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	10.94		$	11.89		$	11.26		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		(0.20	)		(0.05	)		(0.31	)		(0.14	)
Net realized and unrealized gain (loss)		0.82			(0.90	)		0.98			1.55
Total from investment operations		0.62			(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	$	11.56		$	10.94		$	11.89		$	11.26
Total Return (c)		5.67	%		–7.99	%		5.97	%		14.15	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	60,241		$	109,058		$	174,601		$	40,273
Ratios to average net assets (d):
Net expenses		3.55	%		3.15	%		3.56	%		3.20	%
Gross expenses		3.55	%		3.15	%		3.59	%		5.51	%
Gross expenses, excluding expenses on securities sold short		1.63	%		1.57	%		1.73	%		4.01	%
Net investment income (loss)		–1.75	%		–0.44	%		–2.64	%		–1.94	%
Portfolio turnover rate:
Excluding securities sold short		104	%		257	%		183	%		132	%
Including securities sold short		180	%		313	%		263	%		277	%
										For the Period
Selected data for a share of capital	Year Ended									4/30/14* to
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	10.86		$	11.84		$	11.24		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		(0.23	)		(0.10	)		(0.33	)		(0.17	)
Net realized and unrealized gain (loss)		0.82			(0.88	)		0.97			1.56
Total from investment operations		0.59			(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	$	11.45		$	10.86		$	11.84		$	11.24
Total Return (c)		5.43	%		–8.28	%		5.71	%		14.05	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	16,626		$	13,776		$	46,766		$	10,808
Ratios to average net assets (d):
Net expenses		3.85	%		3.42	%		3.81	%		3.41	%
Gross expenses		3.85	%		3.42	%		3.89	%		6.28	%
Gross expenses, excluding expenses on securities sold short		1.92	%		1.85	%		2.02	%		4.82	%
Net investment income (loss)		–2.04	%		–0.88	%		–2.89	%		–2.34	%
Portfolio turnover rate:
Excluding securities sold short		104	%		257	%		183	%		132	%
Including securities sold short		180	%		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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are 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  25

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2017

1. Organization

The Lazard Funds, Inc. 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-four no-load 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 accordance with 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—Equity securities traded on a securities exchange or market, including exchange-traded option contracts, rights and warrants, are valued at the last reported sales price (for domestic equity securities) or the closing price (for foreign equity securities) on the exchange or market on which the security is principally traded or, for securities trading on the NASDAQ National Market System (“NASDAQ”), the NASDAQ Official Closing Price. If there is no available closing price for a foreign equity security, the last reported sales price is used. If there are no reported sales of a security on the valuation date, the security is valued at the most recent quoted bid price on such date reported by such principal exchange or market. Forward currency contracts gen-

erally 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 New York Stock Exchange (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

26  Annual Report

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 dividend expenses on short sales are 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 and/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/or 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 represents net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency 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

Annual Report  27

value at the time it was opened and the value at the time it was closed.

During the year ended December 31, 2017, the Enhanced Opportunities Portfolio 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, 2017, the Enhanced Opportunities Portfolio traded in options transactions.

(e) Short Sales—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 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, 2017, 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 State Street. At December 31, 2017, the Enhanced Opportunities and Fundamental Long/Short Portfolios had pledged $10,782,767 and $40,206,819, respectively, of long securities as collateral under such arrangements.

For the year ended December 31, 2017, 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	$	44,953,586	$	48,247,917
Fundamental Long/Short		128,764,265		179,570,409

28  Annual Report

(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, 2017, 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	$(12,209,845)

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, 2017, the Portfolios had no such losses to defer.

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)
Enhanced Opportunities	$	16,069,773	$	426,037	$	1,090,896	$	(664,859	)
Fundamental Long/Short		69,837,922		10,130,309		3,000,234		7,130,075

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 tax returns filed for any open tax years (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction’s statute of limitations. The Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.

(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 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	$	(132	)	$	87,595	$	(87,463	)
Fundamental Long/Short		(1,973,878	)		1,953,617		20,261

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2017		2016		2017		2016
Enhanced Opportunities	$	1,482,118	$	222,099	$	165,023	$	—
Fundamental Long/Short		—		—		—		—

At December 31, 2017, the components of distributable earnings and unrealized appreciation, 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
Enhanced Opportunities		$19,161	$	28,399		$	(723,476	)
Fundamental Long/Short		—		(12,209,845	)		7,067,925

Annual Report  29

(h) Allocation of Expenses—Expenses common to the Fund, Lazard Retirement Series, Inc., Lazard Global Total Return and Income Fund, Inc. and Lazard World Dividend & Income Fund, Inc. (each a “Lazard Fund” and collectively, the “Lazard Fund Complex”), each a registered management investment company advised by the Investment Manager, not directly chargeable to one or more specific Lazard Funds are allocated to the Fund and among its Portfolios primarily on the basis of relative net assets. Expenses of the Fund not directly chargeable to one or more Portfolios are similarly allocated among the Portfolios 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 were 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, and provides the Portfolios with administrative, operational and compliance assistance services. 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 (a)		1.30	%
Fundamental Long/Short		1.40

(a)  From January 1, 2017 to June 6, 2017, percentage was 1.40%. Effective January 19, 2018, percentage is 0.95%.

The Investment Manager has voluntarily agreed to waive its fees and, if necessary, reimburse the Portfolios until May 1, 2018 if the aggregate direct expenses of the Portfolios, 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, 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
Enhanced Opportunities (a)		1.60	%		1.85	%
Fundamental Long/Short		1.70			1.95

(a) From January 1, 2017 through June 6, 2017, percentages were 1.70% and 1.95%, respectively. Effective January 19, 2018, percentages are 1.25% and 1.50%, respectively.

30  Annual Report

During the year ended December 31, 2017, 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		$194,423		$60,181		$1,565		$13,420

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

State Street provides the Fund with custody and certain fund administration and accounting services. For the year ended December 31, 2017, State Street waived $4,688 of its fund administration 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.

On January 1, 2018, BFDS changed its name to DST Asset Manager Solutions, Inc.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2017, each Director who is not an affiliated person of the Investment Manager or any of its affiliates was paid by the Lazard Fund Complex: (1) an annual retainer of $210,000, (2) an additional annual fee of $30,000 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 $20,000 to the Audit Committee Chair. Effective January 1, 2018, the aggregate compensation for Independent Directors for the Lazard Fund Complex is comprised of: (1) an annual retainer of $225,000, (2) an additional annual fee of $32,500 to the lead Independent Director, and (3) an additional annual fee of $22,500 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 and short sales) for the year ended December 31, 2017 were as follows:

Portfolio	Purchases		Sales
Enhanced Opportunities	$	39,217,995	$	49,502,496
Fundamental Long/Short		98,600,716		169,767,017

For the year ended December 31, 2017, the Portfolios did not engage in any cross-trades in accordance with Rule 17a-7 under the 1940 Act, and no brokerage com-

Annual Report  31

missions 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, 2017, the Investment Manager owned 35.12% of the outstanding shares of the 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 is 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, 2017, the Portfolios had no borrowings under the Agreement.

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 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 cur-

rency 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. A Portfolio’s currency investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies. 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. During periods of reduced market liquidity, a

32  Annual Report

Portfolio may not be able to readily sell debt securities at prices at or near their perceived value. An unexpected increase in Portfolio redemption requests, including requests from shareholders who may own a significant percentage of a Portfolio’s shares, which may be triggered by market turmoil or an increase in interest rates, could cause the Portfolio to sell its holdings at a loss or at undesirable prices and adversely affect the Portfolio’s share price and increase the Portfolio’s liquidity risk, Portfolio expenses and/or taxable distributions. Economic and other developments can adversely affect debt securities markets.

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) Underlying Funds Risk—Shares of ETFs, closed-end funds and exchange-traded notes (“ETNs” and collectively with ETFs and closed-end funds, “Underlying Funds”) in which certain 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 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 not trade in the secondary market, 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 Portfolio’s management fees and operating expenses, but also their proportional share of the management fees and operating expenses of the ETFs and closed-end funds in which the Portfolio invests. While ETNs do not have management fees, they are subject to certain investor fees. ETNs are debt securities that, like ETFs, typically are listed on exchanges and their terms generally provide for a return that tracks specified market indexes. However, unlike ETFs and closed-end funds, ETNs are not registered investment companies and thus are not registered under the 1940 Act. In addition, as debt securities, ETNs are subject to the additional risk of the creditworthiness of the issuer. ETNs typically do not make interest payments.

These Portfolios may be limited by the 1940 Act in the amount of their 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 Portfolios may rely or an exemption is available.

Many ETFs have received an exemptive order from the SEC providing an exemption from the 1940 Act limits on the amount of assets that may be invested in ETFs and closed-end funds, and a Portfolio’s reliance on an order is conditioned on compliance with certain conditions of the order. If an exemptive order has not been received and an exemption is not available

Annual Report  33

under the 1940 Act, the Portfolio will be limited in the amount it can invest in Underlying Funds that are registered investment companies to: (1) 3% or less of an Underlying Fund’s voting shares, (2) an Underlying Fund’s shares in value equal to or less than 5% of the Portfolio’s assets and (3) shares of Underlying Funds in the aggregate in value equal to or less than 10% of the Portfolio’s total assets.

(f) Short Position Risk—Short sales or positions may involve substantial risks. If a short position appreciates in value during the period of the 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.

Short sales of securities also may involve additional transaction-related costs such as those in connection with borrowing the securities sold short.

There is a risk that certain Portfolios may be unable to fully implement their investment strategies due to a lack of available securities to borrow to effect short sales or for some other reason.

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.

(g) Derivatives and Hedging Risk—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. Over-the-counter swap agreements, forward currency contracts, writing or purchasing over-the-counter options on securities (including options on ETFs and ETNs), indexes and currencies and other over-the-counter derivatives transactions are subject to the risk of default by the counterparty and can be illiquid. Changes in liquidity may result in significant, rapid and unpredictable changes in the prices for derivatives. These derivatives transactions, as well as the exchange-traded futures and options in which certain Portfolios may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related index, commodity, interest rate, currency, security or other reference asset. As such, a small investment could have a potentially large impact on a Portfolio’s performance. Purchasing options will reduce returns by the amount of premiums paid for options that are not exercised. 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 when entered into for hedging purposes, may cause a

34  Annual Report

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 indemnification provisions. 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. The fair value measurement level within the fair value hierarchy for the assets and liabilities of the Fund 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 assets and liabilities, interest rates, prepayment speeds, credit risk, etc.)

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

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’ assets and liabilities by each fair value hierarchy level as of December 31, 2017:

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, 2017
Enhanced Opportunities Portfolio
Assets:
Common Stocks*
Austria	$	—		$	1,783		$	—	$	1,783
Canada		21,759			—			—		21,759
Mexico		33,510			—			—		33,510
United States		1,219,842			—			—		1,219,842
Convertible Corporate Bonds*		—			10,532,028			—		10,532,028
Preferred Stocks*		200,890			—			—		200,890
Exchange-Traded Funds		964,344			—			—		964,344
Purchased Options*		787			—			—		787
Short-Term Investments		9,957,985			—			—		9,957,985
Other Financial Instruments†
Forward Currency Contracts		—			1,346			—		1,346
Total	$	12,399,117		$	10,535,157		$	—	$	22,934,274
Liabilities:
Securities Sold Short
Common Stocks*
Austria	$	—		$	(1,783	)	$	—	$	(1,783	)
Canada		(36,852	)		—			—		(36,852	)
China		(27,727	)		—			—		(27,727	)
Japan		—			(122,938	)		—		(122,938	)
Mexico		(67,613	)		—			—		(67,613	)
United States		(5,934,667	)		—			—		(5,934,667	)
Exchange-Traded Funds		(1,218,873	)		—			—		(1,218,873	)
Other Financial Instruments†
Forward Currency Contracts		—			(7,575	)		—		(7,575	)
Written Options		(608	)		—			—		(608	)
Total	$	(7,286,340	)	$	(132,296	)	$	—	$	(7,418,636	)
Fundamental Long/Short Portfolio
Assets:
Common Stocks*	$	66,789,287		$	—		$	—	$	66,789,287
Short-Term Investments		42,276,942			—			—		42,276,942
Total	$	109,066,229		$	—		$	—	$	109,066,229
Liabilities:
Securities Sold Short
Common Stocks*	$	(32,098,232	)	$	—		$	—	$	(32,098,232	)

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

36  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 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. 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, 2017.

For further information regarding security characteristics see Portfolios of Investments.

10. Derivative Instruments

The Enhanced Opportunities Portfolio may use derivative instruments, including forward currency contracts or options.

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

The 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.

During the year ended December 31, 2017, the approximate average monthly notional exposure for derivative instruments was as follows:

Forward currency contracts $800,000

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

The Portfolio also traded in written 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, 2017:

	Fair Value
Asset Derivatives
Equity Risk:
Investments in securities, at fair value	$	787
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	1,346
Liability Derivatives
Equity Risk:
Written options, at fair value	$	608
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	7,575

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2017 was:

	Amount
Realized Gain (Loss) on Derivatives
Equity Risk:
Net realized gain (loss) on investments	$	(109,627	)
Net realized gain (loss) on written options	$	51,117
Foreign Exchange Risk:
Net realized gain (loss) on forward currency contracts	$	(23,571	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Equity Risk:
Net change in unrealized appreciation (depreciation) on investments	$	14,151
Net change in unrealized appreciation (depreciation) on written options	$	(11,355	)
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on forward currency contracts	$	(8,398	)

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

During the year ended December 31, 2017, the Fundamental Long/Short Portfolio did not trade in derivative instruments.

Annual Report  37

As of December 31, 2017, the Enhanced Opportunities Portfolio held 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, 2017:

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		$1,346	$	—		$1,346

			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.		$1,346		$(1,346	)	$	—	$	—

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		$7,575	$	—		$7,575

			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.		$7,575		$(1,346	)	$	—	$	6,229

11. Subsequent Events

Management has evaluated subsequent events affecting the Fund through the issuance of the financial statements and has determined that, aside from items

previously disclosed within the Notes to Financial Statements, 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 Shareholders of Lazard Enhanced Opportunities Portfolio and Lazard Fundamental Long/Short Portfolio:

Opinion on the Financial Statements and Financial Highlights

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, 2017, 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, the financial highlights for each of the periods presented, and the related notes to the financial statements. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Portfolios, as of December 31, 2017, and 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 periods presented, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolios’ management. Our responsibility is to express an opinion on the Portfolios’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolios in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Portfolios are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2017, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

New York, New York

February 28, 2018

We have served as the auditor of one or more Lazard Fund Complex investment companies since 2004.

Annual Report  39

The Lazard Funds, Inc. Proxy Voting Results (unaudited)

A Joint Special Meeting of Shareholders of the Fund and Lazard Retirement Series, Inc. was held on October 20, 2017, to vote on the following proposal. The proposal received the required number of votes of shareholders and was adopted.

Proposal 1:

To elect each of Franci J. Blassberg, Trevor W. Morrison and Nathan A. Paul as a Fund Director.

Director	For	Withhold Authority
Franci J. Blassberg	1,322,185,144	18,431,907
Trevor W. Morrison	1,323,575,840	17,041,212
Nathan A. Paul	1,331,727,319	8,889,732

40  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 (64)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present)
		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 (72)	Director (August 1995)	Davidson Capital Management Corporation, an investment manager, President (1978 – present)
		Landseer Advisors LLC, an investment manager, Senior Advisor (2012 – 2014)
Nancy A. Eckl (55)	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)
Trevor W. Morrison (46)	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. (73)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		Resource Americas, Inc., a real estate asset management company, Director (2016 – present)
Robert M. Solmson (70)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

Annual Report  41

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):
Ashish Bhutani (57)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present)
		Lazard Ltd, Vice Chairman and Director (2010 – present)
Nathan A. Paul (45)	Director (October 2017) Chief Executive Officer and President (February 2017)	Investment Manager, Chief Business Officer (April 2017 – present) and Managing Director (2003 – present)
		Investment Manager, General Counsel (2002 – April 2017)

(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, 2018, 41 active investment portfolios). Each Director serves an indefinite term, until his or her successor is elected, and each Director serves in the same capacity for the other funds in the Lazard Fund Complex.
(3)	“Independent Directors” are not “interested persons” (as defined in the 1940 Act) of the Fund.
(4)	Messrs. Bhutani and Paul 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.lazardassetmanagement.com.

42  Annual Report

Name (Age) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) During the Past Five Years
Officers(3):
Mark R. Anderson (47)	Chief Compliance Officer (September 2014), Vice President and Secretary (February 2017)	Managing Director (since February 2017, previously Director), General Counsel (since April 2017) and Chief Compliance Officer (since September 2014) of the Investment Manager
		Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014)
Christopher Snively (33)	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 (59)	Treasurer (May 2003)	Vice President of the Investment Manager
Tamar Goldstein (42)	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 (36)	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 (43)	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 Nathan A. Paul, Chief Executive Officer and President (since February 2017; previously, Vice President and Secretary since April 2002), whose information is included in the Interested Directors section above.

Annual Report  43

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

Tax Information

Year Ended December 31, 2017

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2017:

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

Portfolio	Percentage
Enhanced Opportunities		1.51	%
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		1.36	%
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 https://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 https://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 https://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330.

44  Annual Report

The Lazard Funds, Inc.

30 Rockefeller Plaza

New York, New York 10112-6300

Telephone: 800-823-6300

https://www.lazardassetmanagement.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

DST Asset Manager Solutions, 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

Proskauer Rose LLP

Eleven Times Square

New York, New York 10036-8299

http://www.proskauer.com

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

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

LZDPS031

 

Lazard Funds Annual Report

December 31, 2017

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 • Assets and income • Account transactions • Credit history • Transaction history When you are no longer our customer, we continue to share your information as described in this notice.
How?	All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information, the reasons Lazard chooses to share, and whether you can limit this sharing.

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

Questions? Call 800-823-6300 or go to https://www.lazardassetmanagement.com

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

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
5	Performance Overviews
7	Information About Your Portfolio’s Expenses
8	Portfolio Holdings Presented by Sector
9	Portfolios of Investments
9	Lazard Capital Allocator Opportunistic Strategies Portfolio
11	Lazard Global Dynamic Multi-Asset Portfolio
21	Notes to Portfolios of Investments
23	Statements of Assets and Liabilities
24	Statements of Operations
25	Statements of Changes in Net Assets
26	Financial Highlights
28	Notes to Financial Statements
42	Report of Independent Registered Public Accounting Firm
43	Proxy Voting Results
44	Board of Directors and Officers Information
47	Tax and Other Information

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

Record high global stock prices were supported by synchronized global economic growth in 2017. Markets also benefited from benign inflation, accommodative central bank policy, and strong corporate profits. Volatility remained at historic lows despite tension between North Korea and the United States and political uncertainty in Brazil, Spain, and the United Kingdom.

Emerging markets equity and debt advanced strongly in 2017. Emerging markets continued to benefit from low inflation, modest but steady growth, and improving profitability as global demand recovers and businesses tighten fiscal discipline. Earnings improvement in China and Korea drove returns in emerging markets. While our outlook for the asset class remains positive, our emerging markets investment teams are vigilant about potential risks. This includes an increase in developed markets inflation that could lead to central banks raising rates too quickly and, in effect, a global growth slowdown.

European equity markets performed well in 2017 as the region’s economic recovery deepened and investors grew more confident in its underlying strength. During the year, a market-friendly result to France’s presidential election helped buoy European sentiment. UK equities generated solid absolute returns amid a challenging political backdrop and Brexit negotiations. In addition, the European Central Bank announced that it would extend its monthly bond-buying program into 2018, but plans to reduce the pace of these purchases.

The US economy also advanced strongly during 2017. A new US tax bill represented one of the most significant changes to the US tax code in over 30 years as it changes individual, corporate, and international taxes. The US yield curve continued to flatten as short-term rates moved higher, driven by the three US rate hikes during 2017 and the prospect of additional hikes in 2018.

We are privileged that you have turned to Lazard for your investment needs and value your continued confidence in our investment management capabilities. Be assured that our specialist investment teams, supported by our global infrastructure, are continuing to strive for the long-term patterns of performance that you expect.

Sincerely,

Lazard Asset Management LLC

2  Annual Report

The Lazard Funds, Inc. Investment Overviews

Asset Allocation

Global equities had strong gains over the year with the MSCI World^® Index generating positive month-end returns for twelve consecutive months in 2017, in US dollar terms. This pattern reflected a very low-volatility environment. European equities outperformed despite important elections in France and Germany. The Japanese market also did well due in part to some evidence of improving corporate governance. In terms of sectors, investors continued to push up prices of technology stocks, while defensive sectors such as utilities and consumer staples lagged. The energy sector struggled throughout the year, despite a recovery in crude prices toward the second half of the year.

The global economy ended 2017 on a strong note, fueled by a supportive monetary and fiscal policy environment, solid labor markets, robust global trade and manufacturing activity, and benign inflation in many countries. Interest rate movements were relatively subdued toward year-end, as rate markets in parts of Europe and the United States sold off slightly given exceptionally strong economic growth reports in these regions. German export and inflation data continued to surge, which helped the economies of Germany’s neighboring countries, especially in eastern Europe.

During the fourth quarter, Jerome Powell was named to succeed Janet Yellen as Chairman of the Federal Reserve (Fed) and is widely expected to maintain current Fed policy. The European Central Bank (ECB) also announced that it would extend its quantitative easing program through September 2018, lowering its monthly bond purchases to 30 billion euro.

The environment of synchronized global growth and stable inflation supported risk appetite during the year (more so in equities than fixed income) as did the passage of the US Tax Cuts and Jobs Act. This improved sentiment helped many smaller markets around the world, except for countries such as Venezuela and Turkey, which experienced events that were generally negative for interest rates and flows in these regions.

Global credit sectors and spreads continued their march forward, underpinned by strong investor

demand and capital inflows, along with generally robust equity markets. The global sovereign and corporate issuance market was active and a variety of higher and lower quality credits came to market, possibly as issuers take advantage of the relatively stable environment.

Currency markets yielded mixed results in 2017 as interest rate differentials, inflation trends, politics, and idiosyncratic events influenced price action. The US dollar weakened overall for the year despite progress on US tax reforms and stronger economic data, which propelled the US dollar higher in October.

The euro, Japanese yen, and British pound gained 14.2%, 3.8%, and 9.5% versus the US dollar in 2017, respectively. We believe the euro’s strength is supported by the ECB’s pivot toward a reduction of monetary stimulus in 2018. The Japanese yen is supported by rapidly improving growth metrics, a slight shift in monetary policy rhetoric, and supportive technical factors.

Lazard Capital Allocator Opportunistic Strategies Portfolio

For the year ended December 31, 2017, the Lazard Capital Allocator Opportunistic Strategies Portfolio’s Institutional Shares posted a total return of 17.74%, while Open Shares posted a total return of 17.48%, as compared with the 22.40% return for the MSCI World Index and 14.58% return for the Global Asset Allocation Blended Index.¹

Thematic investments, which represented 35% of the Portfolio at the end of the period, outperformed both indices. Positions in North American technology, global financials, and global materials were the largest contributors to performance. We held exposure to a basket of short-cycle industrial companies through a total return swap position.

Diversifying investments, which represented 20% of the Portfolio at year-end, outperformed the broad US fixed income market (as measured by the Bloomberg Barclays US Aggregate^® Index) but lagged the Global Asset Allocation Blended Index. This category was boosted by positions in long-term US Treasuries.

Annual Report  3

Contrarian investments, which represented 41% of the Portfolio at the end of the period, outpaced the Global Asset Allocation Blended Index and slightly lagged the MSCI World Index. Positions in European large caps and Japanese chemicals contributed positively to the Portfolio. A position in oil & gas services detracted from performance. We held exposure to Japanese chemical companies through a total return swap position.

Discounted investments, which represented 4% of the Portfolio at the end of the year, outperformed due to our position in a US small cap closed-end fund.

Lazard Global Dynamic Multi-Asset Portfolio

For the year ended December 31, 2017, the Lazard Global Dynamic Multi-Asset Portfolio’s Institutional Shares posted a total return of 20.69%, while Open Shares posted a total return of 20.33%, as compared with the 22.40% return for the MSCI World Index and 14.69% return of its blended benchmark, which is a 50/50 blend of the MSCI World Index and the Bloomberg Barclays Global Aggregate^® Index (the “GDMA Index”).

Changes to the market forecast in 2017 reflected a generally cautious stance. However, some underlying considerations shifted to more upbeat views on the back of broadly recognized synchronized global

growth and some liquidity indicators. On the other hand, our assessment of geopolitical risk remained elevated through the year.

The Portfolio’s average overweight of equity versus fixed income helped performance, as did stock selection in the financials, healthcare, and industrials sector. Our underweight exposure to the energy sector and stock selection in Canada, Germany, and the United States also benefited returns. Within fixed income, country allocation; underweight exposure to bonds across core Europe and Japan; overweight exposure to bonds in the United States, Singapore, and New Zealand helped relative returns. Performance was also boosted by sector selection within fixed income: underweight government bonds and overweight positioning in diversified global credit sectors; currency exposure within fixed income: tactical positioning in Australian dollar, New Zealand dollar, and Swedish krona.

In contrast, performance was hurt by stock selection in the consumer discretionary, telecommunication services, and utilities sectors, and stock selection in the United Kingdom. Country allocation within fixed income: exposure to bonds in the Czech Republic and Mexico; and currency exposure within fixed income: underweight positioning in the Canadian dollar also hurt performance.

Notes to Investment Overviews:

All Portfolios’ 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, 2017; 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 a blended index constructed by the Investment Manager that is comprised of 60% MSCI World Index and 40% Bloomberg Barclays US Aggregate Index and is rebalanced quarterly.

4  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, 2017

	Institutional Shares					Open Shares
	One	Five	Since		One		Five	Since
	Year	Years	Inception	†	Year		Years	Inception	†
Capital Allocator Opportunistic Strategies Portfolio**	17.74%	6.93%	4.69%		17.48%		6.52%	4.38%
MSCI World Index	22.40%	11.64%	6.13%		22.40%		11.64%	6.19%
Global Asset Allocation Blended Index	14.58%	7.84%	5.68%		14.58%		7.84%	5.71%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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”), if any, 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 Portfolio shares, 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 index that is designed to measure global developed markets equity performance. The MSCI World Index consists of 23 developed markets country indices. The Global Asset Allocation Blended Index is a blended index constructed by the Investment Manager that is comprised of 60% MSCI World Index and 40% Bloomberg Barclays US Aggregate® Index and is rebalanced quarterly. The Bloomberg Barclays US Aggregate Index covers the investment-grade, US dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities, with maturities of no less than one year. The 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 the Open Shares was March 31, 2008.

Annual Report  5

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*  

Average Annual Total Returns*

Periods Ended December 31, 2017

	One	Since
	Year	Inception	†
Institutional Shares**	20.69%	12.85%
Open Shares**	20.33%	12.51%
MSCI World Index	22.40%	17.31%
GDMA Index	14.69%	9.60%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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 a blended index constructed by the Investment Manager that is comprised of 50% MSCI World Index and 50% Bloomberg Barclays Global Aggregate® Index and is rebalanced monthly. The MSCI World Index is a free-float-adjusted market capitalization index that is designed to measure global developed markets equity performance. The MSCI World Index consists of 23 developed markets country indices. The Bloomberg Barclays Global Aggregate 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 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.

6  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 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, 2017 through December 31, 2017 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.

Portfolio	Beginning Account Value 7/1/17	Ending Account Value 12/31/17	Expenses Paid During Period* 7/1/17 - 12/31/17	Annualized Expense Ratio During Period 7/1/17 - 12/31/17
Capital Allocator Opportunistic Strategies†
Institutional Shares
Actual	$1,000.00	$1,084.60	$5.67	1.08%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.76	$5.50	1.08%
Open Shares
Actual	$1,000.00	$1,083.80	$7.25	1.38%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.25	$7.02	1.38%
Global Dynamic Multi-Asset
Institutional Shares
Actual	$1,000.00	$1,099.20	$4.76	0.90%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.67	$4.58	0.90%
Open Shares
Actual	$1,000.00	$1,097.90	$6.35	1.20%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.16	$6.11	1.20%

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

Annual Report  7

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2017

Asset Class/Sector*	Lazard Capital Allocator Opportunistic Strategies Portfolio
Equity†
Consumer Discretionary		5.7	%
Consumer Staples		3.0
Energy		2.3
Financials		20.3
Health Care		4.3
Industrials		10.7
Information Technology		5.6
Materials		13.4
Real Estate		1.0
Telecommunication Services		1.4
Utilities		0.9
Fixed Income		13.8
Short-Term Investments		17.6
Total Investments		100.0	%
Sector*	Lazard Global Dynamic Multi- Asset Portfolio
Consumer Discretionary		11.4	%
Consumer Staples		7.9
Energy		5.1
Financials		16.1
Health Care		10.5
Industrials		12.0
Information Technology		13.6
Materials		2.7
Real Estate		2.9
Telecommunication Services		3.4
Utilities		3.5
Municipal		0.3
Sovereign Debt		8.1
US Treasury Securities		1.2
Short-Term Investments		1.3
Total Investments		100.0	%

*	Represents percentage of total investments.
†	Equity sector breakdown is based upon the underlying holdings of exchange-traded funds and closed-end management investment companies held by the Portfolio.

8  Annual Report

The Lazard Funds, Inc. Portfolios of Investments December 31, 2017

Description	Shares		Fair Value
Lazard Capital Allocator Opportunistic Strategies Portfolio
Exchange-Traded Funds | 75.9%
Equity Funds | 62.5%
Financial Select Sector SPDR Fund	253,035	$	7,062,207
iShares Core MSCI Europe ETF	201,500		10,109,255
iShares Global Financials ETF	188,400		13,174,812
iShares Global Materials ETF	150,300		10,532,273
iShares Latin America 40 ETF	69,300		2,367,981
iShares MSCI Europe Financials ETF	150,500		3,508,155
iShares MSCI Eurozone ETF	258,200		11,200,716
iShares MSCI Japan ETF	259,200		15,533,856
iShares Nasdaq Biotechnology ETF	28,425		3,034,937
iShares North American Tech ETF	20,400		3,443,316
PowerShares Dynamic Oil & Gas Services Portfolio	130,500		1,244,970
Vanguard FTSE Emerging Markets ETF	133,490		6,128,526
Xtrackers MSCI Japan Hedged Equity ETF	177,600		7,830,384
			95,171,388
Fixed-Income Funds | 13.4%
iShares iBoxx $ Investment Grade Corporate Bond ETF	60,695		7,378,084
Vanguard Short-Term Corporate Bond ETF	163,400		12,957,620
			20,335,704
Total Exchange-Traded Funds (Cost $103,614,811)			115,507,092

Description	Shares		Fair Value
Closed-End Management Investment Companies | 3.6%
Royce Value Trust, Inc. (Cost $4,585,988)	338,290	$	5,470,149
Short-Term Investments | 17.0%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $25,845,744)	25,845,744		25,845,744
Total Investments | 96.5% (Cost $134,046,543)		$	146,822,985
Cash and Other Assets in Excess of Liabilities | 3.5%			5,372,207
Net Assets | 100.0%		$	152,195,192

Total Return Swap Agreements open at December 31, 2017: 

Pay	Currency	Counterparty	Notional Amount		Expiration Date	Receive	Payment Frequency	Unrealized Appreciation
1 Month JPY LIBOR plus 0.40%	JPY	GSC	$	7,284,730	06/14/18	Appreciation, and dividends paid, on securities in a custom momentum basket	Monthly	$	228,682
1 Month USD LIBOR plus 0.45%	USD	GSC		8,470,706	07/06/18	Appreciation, and dividends paid, on securities in a custom momentum basket	Monthly		110,412
Total gross unrealized appreciation on Total Return Swap Agreements								$	339,094	*

* Include accrued dividends and financing charges of $4,833.

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

Annual Report  9

Lazard Capital Allocator Opportunistic Strategies Portfolio (concluded)

The following tables represent the shares of the individual securities and related fair values underlying the custom total return basket swap agreements with GSC, as of December 31, 2017:

Security	Shares		Fair Value
3M Co.	2,061	$	485,152
ABB, Ltd.	10,890		292,644
American Airlines Group, Inc.	7,867		409,339
Aptiv PLC	2,863		242,897
Delphi Technologies PLC	954		50,059
Eaton Corp. PLC	10,140		801,183
Honeywell International, Inc.	5,557		852,181
Illinois Tool Works, Inc.	2,724		454,426
Johnson Controls International PLC	6,989		266,361
Parker-Hannifin Corp.	5,642		1,126,030
Raytheon Co.	4,715		885,749
Rockwell Automation, Inc.	5,550		1,089,700
Schneider Electric SE	3,294		281,261
Union Pacific Corp.	7,362		987,271
United Technologies Corp.	2,760		352,032
Total Fair Value		$	8,576,285

Security	Shares		Fair Value
Air Water, Inc.	10,202	$	215,312
Asahi Kasei Corp.	35,607		459,325
Daicel Corp.	16,003		182,080
DIC Corp.	5,201		196,638
Hitachi Chemical Co., Ltd.	6,401		164,412
Kansai Paint Co., Ltd.	8,402		218,326
Kuraray Co., Ltd.	10,002		188,720
Mitsubishi Chemical Holdings Corp.	68,814		755,158
Mitsubishi Gas Chemical Co., Inc.	9,002		258,447
Mitsui Chemicals, Inc.	7,001		225,248
Nippon Paint Holdings Co., Ltd.	14,203		449,369
Nitto Denko Corp.	4,401		390,969
Shin-Etsu Chemical Co., Ltd.	9,402		955,408
Showa Denko K. K.	13,603		581,287
Sumitomo Chemical Co., Ltd.	68,414		491,809
Taiyo Nippon Sanso Corp.	17,604		246,377
Tokai Carbon Co., Ltd.	31,006		383,876
Tokuyama Corp.	7,882		256,713
Toray Industries, Inc.	22,204		209,381
Tosoh Corp.	18,704		423,953
Zeon Corp.	18,004		260,604
Total Fair Value		$	7,513,412

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

10  Annual Report

Description	Shares		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio
Common Stocks | 84.1%
Australia | 2.4%
AGL Energy, Ltd.	1,407	$	26,702
Aristocrat Leisure, Ltd.	13,147		242,268
Cochlear, Ltd.	1,045		139,510
Computershare, Ltd.	2,237		28,431
CSL, Ltd.	5,693		626,580
Investa Office Fund REIT	6,693		23,743
Newcrest Mining, Ltd.	2,545		45,219
Platinum Asset Management, Ltd.	25,835		155,027
Qantas Airways, Ltd.	36,528		143,396
Sandfire Resources NL	4,802		25,800
Stockland REIT	33,837		118,354
The Star Entertainment Group, Ltd.	5,352		25,304
Woodside Petroleum, Ltd.	1,699		43,912
			1,644,246
Austria | 0.3%
Erste Group Bank AG	2,018		87,027
Lenzing AG	269		33,955
Raiffeisen Bank International AG (*)	1,922		69,597
			190,579
Belgium | 0.0%
Proximus SADP	1,021		33,512
Canada | 3.7%
Alimentation Couche-Tard, Inc., Class B	844		44,040
ARC Resources, Ltd.	1,709		20,054
BCE, Inc.	639		30,694
CAE, Inc.	7,435		137,994
Canadian Imperial Bank of Commerce	225		21,934
Canadian National Railway Co.	2,475		204,188
CI Financial Corp.	2,549		60,369
Colliers International Group, Inc.	529		31,929
Crescent Point Energy Corp.	2,955		22,521
Detour Gold Corp. (*)	2,290		26,926
Dollarama, Inc.	393		49,102
Genworth MI Canada, Inc.	4,062		140,571
Husky Energy, Inc. (*)	16,947		239,307
IAMGOLD Corp. (*)	4,469		26,060
Kirkland Lake Gold, Ltd.	1,376		21,094
Metro, Inc.	751		24,048
National Bank of Canada	2,037		101,639

Description	Shares		Fair Value
Norbord, Inc.	1,170	$	39,605
Royal Bank of Canada	3,167		258,626
Suncor Energy, Inc.	10,421		382,601
Teck Resources, Ltd., Class B	4,031		105,409
The Bank of Nova Scotia	4,160		268,464
The Toronto-Dominion Bank	482		28,241
Thomson Reuters Corp.	5,930		258,476
			2,543,892
Denmark | 0.9%
Carlsberg A/S, Class B Sponsored ADR	7,515		180,961
Danske Bank A/S	675		26,241
Jyske Bank A/S	518		29,397
Novo Nordisk A/S, Class B	6,120		328,921
Vestas Wind Systems A/S	1,036		71,014
			636,534
Finland | 0.3%
Outokumpu OYJ	4,135		38,377
Sampo Oyj, A Shares ADR	5,020		137,925
			176,302
France | 2.2%
Air France-KLM (*)	11,235		182,655
AXA SA	6,028		178,661
Credit Agricole SA	5,411		89,388
Faurecia	305		23,785
Peugeot SA	4,754		96,571
Schneider Electric SE	2,012		170,640
Societe Generale SA	716		36,915
TOTAL SA	10,013		552,470
Ubisoft Entertainment SA ADR (*)	10,810		165,609
			1,496,694
Germany | 2.4%
Allianz SE	189		43,284
Bayer AG	1,582		196,761
Continental AG	691		186,553
Continental AG Sponsored ADR	3,830		206,360
Covestro AG	1,410		144,980
Deutsche Lufthansa AG	7,853		288,678
Deutsche Telekom AG	3,281		58,187
Rheinmetall AG	712		90,410
RWE AG (*)	2,015		41,089
SAP SE	411		46,085
Siltronic AG (*)	989		143,548
Symrise AG ADR	11,285		240,822
			1,686,757

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

Annual Report  11

Description	Shares		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Hong Kong | 1.3%
AIA Group, Ltd. Sponsored ADR	6,795	$	232,627
CK Asset Holdings, Ltd.	16,000		139,854
Jardine Matheson Holdings, Ltd.	255		15,482
Kerry Properties, Ltd.	3,500		15,745
Sun Hung Kai Properties, Ltd.	2,000		33,316
Swire Pacific, Ltd., Class A	2,500		23,140
Techtronic Industries Co., Ltd.	6,000		39,107
The Wharf Holdings, Ltd.	18,435		63,747
Wharf Real Estate Investment Co., Ltd. (*)	15,585		103,729
Wheelock & Co., Ltd.	23,504		167,934
Yue Yuen Industrial Holdings, Ltd.	9,090		35,669
			870,350
Ireland | 0.3%
Shire PLC ADR	1,555		241,212
Israel | 0.2%
Israel Discount Bank, Ltd., ADR (*)	4,300		128,871
Israel Discount Bank, Ltd., Class A (*)	7,816		22,703
Nice, Ltd.	266		24,280
			175,854
Italy | 0.2%
Assicurazioni Generali SpA	2,602		47,373
Intesa Sanpaolo SpA	30,629		101,582
			148,955
Japan | 7.6%
Amano Corp.	1,095		28,644
ANA Holdings, Inc.	3,500		146,071
Asahi Glass Co., Ltd.	2,900		125,433
Asahi Kasei Corp.	3,000		38,646
Central Japan Railway Co.	190		34,003
Chugai Pharmaceutical Co., Ltd.	1,100		56,247
Daito Trust Construction Co., Ltd.	155		31,574
Daiwa House Industry Co., Ltd.	1,300		49,942
Daiwa House Industry Co., Ltd. ADR	5,800		222,633
Dexerials Corp.	3,500		45,063
East Japan Railway Co.	600		58,495
Ferrotec Holdings Corp.	2,600		52,787
Haseko Corp.	9,002		139,330
Itochu Techno-Solutions Corp.	2,500		108,359
Japan Petroleum Exploration Co., Ltd.	5,700		150,919
Juki Corp.	5,900		97,553
Kaken Pharmaceutical Co., Ltd.	500		25,806
Kamigumi Co., Ltd.	1,700		37,574

Description	Shares		Fair Value
Kao Corp.	600	$	40,583
Kao Corp. Sponsored ADR	2,169		146,570
KDDI Corp.	4,100		102,079
KDDI Corp. ADR	15,815		195,640
Keyence Corp.	100		55,837
Kinden Corp.	2,700		43,951
Kobe Bussan Co., Ltd.	800		30,630
Kuraray Co., Ltd.	1,300		24,537
Maeda Corp.	3,000		41,255
Maruha Nichiro Corp.	700		21,058
Marvelous, Inc.	4,900		45,182
Maxell Holdings, Ltd.	2,000		42,734
Megmilk Snow Brand Co., Ltd.	800		23,648
Mitsubishi UFJ Financial Group, Inc.	75,277		552,337
Mitsui Chemicals, Inc.	1,200		38,622
Morinaga Milk Industry Co., Ltd.	600		27,161
MS&AD Insurance Group Holdings, Inc.	700		23,702
Nagoya Railroad Co., Ltd.	1,000		25,167
Nichirei Corp.	1,025		28,306
Nippon Telegraph & Telephone Corp.	795		37,409
Nishimatsu Construction Co., Ltd.	2,400		67,326
Nitto Denko Corp.	500		44,442
Nomura Holdings, Inc.	7,400		43,697
NTT DOCOMO, Inc.	2,900		68,503
Obayashi Corp.	2,000		24,185
Oji Holdings Corp.	5,000		33,238
ORIX Corp.	3,813		64,471
Penta-Ocean Construction Co., Ltd.	3,900		29,082
Prima Meat Packers, Ltd.	4,000		29,305
Rengo Co., Ltd.	5,080		36,976
Ryohin Keikaku Co., Ltd. ADR	4,215		263,775
Sekisui Chemical Co., Ltd.	7,900		158,411
Shionogi & Co., Ltd.	400		21,627
Showa Corp.	4,200		52,162
Sompo Holdings, Inc.	6,600		254,456
Start Today Co., Ltd.	2,200		66,904
Sumitomo Heavy Industries, Ltd.	1,200		50,830
Taisei Corp.	600		29,844
Takeuchi Manufacturing Co., Ltd.	1,913		45,470
Teijin, Ltd.	4,175		93,038
The Chugoku Electric Power Co., Inc.	3,631		38,977
The Shizuoka Bank, Ltd.	3,000		31,003
Tokyo Electron, Ltd.	800		143,302
Tokyo Gas Co., Ltd.	1,927		44,006
Topcon Corp.	2,400		51,848
Toyobo Co., Ltd.	1,300		23,595

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

12  Annual Report

Description	Shares		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
V Technology Co., Ltd.	200	$	32,259
West Japan Railway Co.	300		21,886
Yamaha Corp. Sponsored ADR	3,515		131,004
Yaskawa Electric Corp.	5,400		235,958
			5,227,067
Luxembourg | 0.2%
B&M European Value Retail SA	22,157		126,350
Malta | 0.0%
Kindred Group PLC	2,047		29,280
Netherlands | 1.5%
BE Semiconductor Industries NV	659		55,060
Royal Dutch Shell PLC, A Shares	21,914		733,610
Wolters Kluwer NV	445		23,173
Wolters Kluwer NV Sponsored ADR	4,720		246,290
			1,058,133
New Zealand | 0.1%
Fisher & Paykel Healthcare Corp., Ltd., Class C	2,670		27,075
Spark New Zealand, Ltd.	13,213		33,983
			61,058
Norway | 1.7%
Aker BP ASA	9,638		236,954
Leroy Seafood Group ASA	4,372		23,418
Marine Harvest ASA	1,766		29,895
Statoil ASA	36,603		783,014
Telenor ASA	3,848		82,427
			1,155,708
Singapore | 1.0%
Best World International, Ltd.	45,700		45,209
CapitaLand, Ltd.	9,200		24,239
Oversea-Chinese Banking Corp., Ltd. ADR	8,320		155,168
Singapore Airlines, Ltd.	5,930		47,234
United Overseas Bank, Ltd.	8,100		159,791
UOL Group, Ltd.	23,900		158,464
Venture Corp., Ltd.	6,600		100,855
			690,960
Spain | 0.6%
Banco Bilbao Vizcaya Argentaria SA	5,119		43,575
Banco Santander SA	40,186		263,514
Corporacion Financiera Alba SA	190		10,868
Mapfre SA	11,954		38,324
Telefonica SA	7,271		70,795
			427,076

Description	Shares		Fair Value
Sweden | 1.0%
Assa Abloy AB ADR	12,720	$	131,270
Axfood AB	1,381		26,602
Electrolux AB, Series B	4,620		148,587
Hennes & Mauritz AB, B Shares	1,016		20,935
Hexagon AB ADR	3,190		160,298
Nordea Bank AB Sponsored ADR	10,440		126,428
Svenska Cellulosa AB SCA, Class B	5,277		54,267
Swedish Orphan Biovitrum AB (*)	2,798		38,302
			706,689
Switzerland | 1.7%
Adecco Group AG	582		44,482
Julius Baer Group, Ltd. ADR	10,245		124,989
Partners Group Holding AG	395		270,668
Roche Holding AG	2,492		630,335
STMicroelectronics NV	2,619		56,877
Swiss Life Holding AG	79		27,961
			1,155,312
United Kingdom | 5.4%
Admiral Group PLC	1,456		39,264
Ashtead Group PLC ADR	1,850		201,289
Associated British Foods PLC	2,234		84,929
AstraZeneca PLC	2,176		149,324
BP PLC	17,366		122,474
British American Tobacco PLC Sponsored ADR	4,800		321,552
Centrica PLC	44,700		82,765
Coca-Cola European Partners PLC	4,040		160,994
Compass Group PLC	2,376		51,376
Compass Group PLC Sponsored ADR	8,487		186,332
Crest Nicholson Holdings PLC	5,974		43,745
CVS Group PLC	2,191		30,764
Diageo PLC Sponsored ADR	1,635		238,759
Electrocomponents PLC	4,008		33,854
Fevertree Drinks PLC	3,254		100,211
Hargreaves Lansdown PLC	1,031		25,079
International Consolidated Airlines Group SA	24,009		208,463
Land Securities Group PLC REIT	2,909		39,452
Lloyds Banking Group PLC	50,701		46,427
Moneysupermarket.com Group PLC	5,090		24,450
Persimmon PLC	2,815		103,954
Prudential PLC ADR	3,805		193,218
Redrow PLC	2,552		22,607
RELX NV Sponsored ADR	10,535		243,042
Rio Tinto PLC Sponsored ADR	2,245		118,828

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)
Smith & Nephew PLC	1,889	$	32,686
SSE PLC	18,879		336,324
SSP Group PLC	6,811		62,584
Taylor Wimpey PLC	34,927		97,296
Unilever PLC	2,613		144,759
Unilever PLC Sponsored ADR	2,555		141,394
Wm Morrison Supermarkets PLC	8,834		26,218
			3,714,413
United States | 49.1%
3M Co.	3,892		916,060
AbbVie, Inc.	4,665		451,152
Accenture PLC, Class A	5,687		870,623
Adobe Systems, Inc. (*)	1,411		247,264
Advanced Energy Industries, Inc. (*)	316		21,324
Air Lease Corp.	1,037		49,869
Allergan PLC	362		59,216
Ally Financial, Inc.	4,609		134,398
Alphabet, Inc., Class A (*)	353		371,850
Alphabet, Inc., Class C (*)	144		150,682
Altria Group, Inc.	764		54,557
Amazon.com, Inc. (*)	145		169,573
AMC Networks, Inc., Class A (*)	477		25,796
Amdocs, Ltd.	468		30,645
Ameren Corp.	4,969		293,121
American Axle & Manufacturing Holdings, Inc. (*)	7,042		119,925
American Electric Power Co., Inc.	494		36,344
American Express Co.	3,070		304,882
Ameriprise Financial, Inc.	1,991		337,415
Anthem, Inc.	1,114		250,661
Aon PLC	2,554		342,236
Apple, Inc.	5,023		850,042
Applied Materials, Inc.	6,687		341,839
Aptiv PLC	974		82,624
AT&T, Inc.	25,632		996,572
Atkore International Group, Inc. (*)	1,359		29,151
AutoZone, Inc. (*)	215		152,945
Bank of America Corp.	7,618		224,883
Baxter International, Inc.	749		48,415
BGC Partners, Inc., Class A	2,400		36,264
Biogen, Inc. (*)	570		181,585
Bloomin’ Brands, Inc.	1,157		24,690
Bristol-Myers Squibb Co.	3,614		221,466
Campbell Soup Co.	999		48,062
Cardtronics PLC, Class A (*)	1,548		28,669

Description	Shares		Fair Value
Carnival Corp.	2,796	$	185,571
Carnival PLC	1,562		102,703
Celgene Corp. (*)	1,784		186,178
Centene Corp. (*)	1,619		163,325
Cigna Corp.	1,293		262,595
Cisco Systems, Inc.	4,125		157,988
Citigroup, Inc.	6,757		502,788
Cognizant Technology Solutions Corp., Class A	1,197		85,011
Comcast Corp., Class A	18,546		742,767
Comerica, Inc.	2,825		245,238
Commerce Bancshares, Inc.	1,743		97,329
ConocoPhillips	900		49,401
Consolidated Edison, Inc.	1,284		109,076
Costco Wholesale Corp.	1,576		293,325
Crown Holdings, Inc. (*)	2,872		161,550
Cummins, Inc.	1,319		232,988
CVS Health Corp.	1,281		92,873
Darden Restaurants, Inc.	1,167		112,055
Deckers Outdoor Corp. (*)	321		25,760
Delphi Technologies PLC (*)	324		17,000
Discovery Communications, Inc., Class C (*)	1,212		25,658
DXC Technology Co.	2,295		217,795
Eastman Chemical Co.	2,744		254,204
Eaton Corp. PLC	1,955		154,465
eBay, Inc. (*)	3,805		143,601
EchoStar Corp., Class A (*)	661		39,594
Eli Lilly & Co.	2,326		196,454
Eversource Energy	1,308		82,639
Exelon Corp.	505		19,902
F5 Networks, Inc. (*)	410		53,800
Facebook, Inc., Class A (*)	2,878		507,852
Fifth Third Bancorp	2,777		84,254
Fiserv, Inc. (*)	578		75,793
Five Below, Inc. (*)	2,005		132,972
General Motors Co.	1,780		72,962
Genpact, Ltd.	1,091		34,628
Hanesbrands, Inc.	1,224		25,594
Hasbro, Inc.	228		20,723
HCA Healthcare, Inc. (*)	2,619		230,053
Honeywell International, Inc.	1,795		275,281
Humana, Inc.	97		24,063
Huntington Ingalls Industries, Inc.	578		136,235
ICON PLC (*)	308		34,542
IDEXX Laboratories, Inc. (*)	234		36,593
Intel Corp.	2,187		100,952

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)
Intercontinental Exchange, Inc.	3,710	$	261,778
Intuit, Inc.	914		144,211
IPG Photonics Corp. (*)	474		101,498
IQVIA Holdings, Inc. (*)	2,145		209,995
Johnson & Johnson	5,263		735,346
Johnson Controls International PLC	4,043		154,079
JPMorgan Chase & Co.	5,719		611,590
Kimberly-Clark Corp.	793		95,683
Koppers Holdings, Inc. (*)	919		46,777
Las Vegas Sands Corp.	1,635		113,616
Lear Corp.	470		83,030
Lincoln National Corp.	6,393		491,430
Lockheed Martin Corp.	681		218,635
Lowe’s Cos., Inc.	6,986		649,279
Marsh & McLennan Cos., Inc.	1,004		81,716
Masimo Corp. (*)	258		21,878
MasterCard, Inc., Class A	2,562		387,784
Medtronic PLC	2,040		164,730
MetLife, Inc.	3,770		190,611
MGM Growth Properties LLC, REIT Class A	1,317		38,391
Michael Kors Holdings, Ltd. (*)	418		26,313
Microsoft Corp.	6,025		515,378
Mitel Networks Corp. (*)	5,143		42,327
Molson Coors Brewing Co., Class B	1,820		149,367
Monsanto Co.	1,035		120,867
Motorola Solutions, Inc.	1,550		140,027
Nasdaq, Inc.	330		25,354
NIKE, Inc., Class B	338		21,142
Northrop Grumman Corp.	1,545		474,176
NVIDIA Corp.	900		174,150
Park Hotels & Resorts, Inc. REIT	1,837		52,814
Paychex, Inc.	1,295		88,164
PayPal Holdings, Inc. (*)	531		39,092
PepsiCo, Inc.	9,942		1,192,245
PG&E Corp.	5,667		254,052
Pinnacle West Capital Corp.	424		36,116
Pioneer Natural Resources Co.	171		29,557
PNM Resources, Inc.	563		22,773
Prudential Financial, Inc.	1,093		125,673
Quest Diagnostics, Inc.	316		31,123
Radian Group, Inc.	2,500		51,525
Raytheon Co.	172		32,310
Regions Financial Corp.	5,781		99,896
Republic Services, Inc.	708		47,868
Rockwell Automation, Inc.	1,225		240,529

Description	Shares		Fair Value
Ross Stores, Inc.	7,965	$	639,191
Royal Caribbean Cruises, Ltd.	1,101		131,327
S&P Global, Inc.	1,440		243,936
Sabra Health Care REIT, Inc.	1,715		32,191
Schlumberger, Ltd.	2,910		196,105
Silgan Holdings, Inc.	2,072		60,896
Simon Property Group, Inc. REIT	3,636		624,447
Sirius XM Holdings, Inc.	19,404		104,005
Skyworks Solutions, Inc.	1,107		105,110
Snap-on, Inc.	820		142,926
Southwest Airlines Co.	736		48,171
Starbucks Corp.	4,992		286,691
Synopsys, Inc. (*)	1,732		147,636
Sysco Corp.	2,469		149,942
The Boeing Co.	2,325		685,666
The Charles Schwab Corp.	4,205		216,011
The Coca-Cola Co.	7,135		327,354
The Estee Lauder Cos., Inc., Class A	2,142		272,548
The Gap, Inc.	811		27,623
The Home Depot, Inc.	803		152,193
The J.M. Smucker Co.	1,430		177,663
The Procter & Gamble Co.	237		21,776
The TJX Cos., Inc.	4,488		343,152
The Toro Co.	1,427		93,083
Thermo Fisher Scientific, Inc.	1,115		211,716
Time Warner, Inc.	1,659		151,749
United Continental Holdings, Inc. (*)	574		38,688
United Rentals, Inc. (*)	659		113,289
United Technologies Corp.	1,635		208,577
UnitedHealth Group, Inc.	2,979		656,750
Validus Holdings, Ltd.	1,119		52,503
Vantiv, Inc., Class A (*)	4,025		296,039
Verizon Communications, Inc.	7,781		411,848
Versum Materials, Inc.	2,082		78,804
Visa, Inc., Class A	4,875		555,847
VMware, Inc., Class A (*)	1,421		178,080
Wal-Mart Stores, Inc.	3,423		338,021
Waste Management, Inc.	1,851		159,741
WEC Energy Group, Inc.	357		23,716
Welbilt, Inc. (*)	5,760		135,418
Wells Fargo & Co.	800		48,536
Williams-Sonoma, Inc.	464		23,989
Xcel Energy, Inc.	12,064		580,399
Zoetis, Inc.	4,225		304,369
			33,943,547
Total Common Stocks (Cost $50,798,659)			58,140,480

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

Annual Report  15

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Corporate Bonds | 4.4%
Australia | 0.1%
Telstra Corp., Ltd., 4.000%, 09/16/22	AUD	90	$	73,054
Toyota Finance Australia, Ltd., 4.250%, 05/15/19	AUD	25		19,993
				93,047
Belgium | 0.1%
Anheuser-Busch InBev Finance, Inc., 2.650%, 02/01/21	USD	95		95,468
Canada | 0.4%
The Bank of Nova Scotia, 2.125%, 09/11/19	USD	105		104,876
The Toronto-Dominion Bank:
2.250%, 11/05/19	USD	70		70,034
2.621%, 12/22/21	CAD	130		104,179
				279,089
Denmark | 0.2%
Carlsberg Breweries A/S, 2.500%, 05/28/24	EUR	100		131,768
France | 0.2%
Orange SA, 5.375%, 07/08/19	USD	133		139,012
Germany | 0.2%
BMW Finance NV, 3.375%, 12/14/18	GBP	100		138,333
Netherlands | 0.1%
Bank Nederlandse Gemeenten NV, 5.000%, 09/16/20	NZD	80		59,726
New Zealand | 0.1%
Fonterra Cooperative Group, Ltd., 5.500%, 02/26/24	AUD	100		86,560
Spain | 0.2%
Iberdrola International BV, 1.125%, 04/21/26	EUR	100		120,222

Description	Security Currency	Principal Amount (000)		Fair Value
United Kingdom | 0.1%
Rolls-Royce PLC, 6.750%, 04/30/19	GBP	50	$	72,661
United States | 2.7%
Alphabet, Inc., 3.625%, 05/19/21	USD	50		52,337
Amazon.com, Inc., 3.800%, 12/05/24	USD	105		110,873
Apple, Inc.:
2.850%, 02/23/23	USD	22		22,295
3.850%, 05/04/43	USD	130		134,942
Citigroup, Inc., 3.250% (BBSW 3 Month + 1.550%), 05/04/21 (§)	AUD	165		131,293
General Electric Co., 4.250%, 01/17/18	NZD	140		99,288
John Deere Canada Funding, Inc., 2.050%, 09/17/20	CAD	135		106,692
John Deere Capital Corp., 2.300%, 09/16/19	USD	40		40,021
Johnson & Johnson, 3.625%, 03/03/37	USD	65		68,619
JPMorgan Chase & Co., 4.500%, 01/24/22	USD	75		80,245
Microsoft Corp., 4.450%, 11/03/45	USD	157		183,848
Morgan Stanley, 3.625%, 01/20/27	USD	105		107,432
NIKE, Inc., 2.375%, 11/01/26	USD	110		104,768
The Goldman Sachs Group, Inc.:
5.200%, 12/17/19	NZD	145		107,325
3.625%, 01/22/23	USD	85		87,795
The Home Depot, Inc., 2.625%, 06/01/22	USD	105		105,573
Union Pacific Corp., 4.163%, 07/15/22	USD	95		101,820
Wells Fargo & Co., 3.010% (BBSW 3 Month + 1.320%), 07/27/21 (§)	AUD	175		138,648
Wells Fargo Canada Corp., 3.040%, 01/29/21	CAD	75		60,839
				1,844,653
Total Corporate Bonds (Cost $2,967,174)				3,060,539

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

16  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Foreign Government Obligations | 7.3%
Australia | 0.5%
Queensland Treasury Corp.:
5.500%, 06/21/21	AUD	120	$	103,348
3.000%, 03/22/24	AUD	125		99,155
Western Australian Treasury Corp., 6.000%, 10/16/23	AUD	125		114,611
				317,114
Bermuda | 0.3%
Government of Bermuda, 4.854%, 02/06/24	USD	200		216,526
Canada | 0.9%
Province of Alberta, 4.000%, 12/01/19	CAD	95		78,623
Province of British Columbia:
3.700%, 12/18/20	CAD	115		96,058
4.700%, 06/18/37	CAD	50		50,825
Province of Ontario, 1.950%, 01/27/23	CAD	165		129,249
Province of Quebec:
3.500%, 07/29/20	USD	105		108,237
1.650%, 03/03/22	CAD	55		42,921
2.500%, 04/20/26	USD	90		88,002
				593,915
Cayman Islands | 0.1%
Cayman Islands Government Bonds, 5.950%, 11/24/19	USD	100		107,010
Chile | 0.3%
Republic of Chile, 3.125%, 01/21/26	USD	200		202,750
Czech Republic | 0.4%
Czech Republic: 1.100% (PRIBOR 1 Year + 0.650%), 04/18/23 (§)	CZK	3,020		152,297
2.500%, 08/25/28	CZK	3,120		157,360
				309,657
France | 0.3%
Government of France, 1.750%, 06/25/39	EUR	170		214,903

Description	Security Currency	Principal Amount (000)		Fair Value
Hungary | 0.3%
Hungary Government Bonds, 5.500%, 06/24/25	HUF	43,940	$	213,672
Italy | 0.1%
Italy Buoni Poliennali Del Tesoro, 2.250%, 09/01/36	EUR	90		99,780
Japan | 0.3%
Japan International Cooperation Agency, 2.125%, 10/20/26	USD	200		188,416
Mexico | 0.5%
Mexican Bonos, 6.500%, 06/09/22	MXN	4,000		194,784
United Mexican States, 6.750%, 02/06/24	GBP	100		166,912
				361,696
New Zealand | 0.4%
New Zealand Government Bonds:
6.000%, 05/15/21	NZD	260		203,774
4.500%, 04/15/27	NZD	110		83,040
				286,814
Norway | 0.8%
City of Oslo Norway:
4.600%, 06/22/20	NOK	1,000		132,067
2.300%, 03/14/24	NOK	1,000		122,752
Kommunalbanken AS, 1.375%, 10/26/20 (#)	USD	200		195,516
Oslo Kommune, 1.600%, 05/05/22	NOK	1,000		119,751
				570,086
Poland | 0.5%
Poland Government Bonds: 1.810% (WIBOR 6 Month), 01/25/21 (§)	PLN	799		229,721
2.500%, 07/25/26	PLN	425		115,568
				345,289
Romania | 0.2%
Romanian Government Bonds, 2.875%, 10/28/24	EUR	92		121,977
Singapore | 0.7%
Singapore Government Bonds, 3.000%, 09/01/24	SGD	596		475,258

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

Annual Report  17

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Spain | 0.2%
Spain Government Bonds, 1.600%, 04/30/25	EUR	94	$	117,929
Sweden | 0.3%
Kommuninvest I Sverige AB, 1.500%, 04/23/19	USD	200		198,667
United Kingdom | 0.2%
United Kingdom Gilt, 1.500%, 07/22/47	GBP	85		107,994
Total Foreign Government Obligations (Cost $4,894,572)				5,049,453
Quasi Government Bonds | 0.8%
Canada | 0.6%
Canada Housing Trust No. 1, 2.400%, 12/15/22	CAD	130		104,637
Export Development Canada, 1.800%, 09/01/22	CAD	35		27,505
Hydro-Quebec: 1.560% (CDOR 3 Month + 0.140%), 12/01/19 (§)	CAD	260		208,008
9.625%, 07/15/22	CAD	55		57,510
				397,660
Germany | 0.2%
KFW, 1.125%, 12/23/19	GBP	100		136,411
Total Quasi Government Bonds (Cost $510,614)				534,071
Supranationals | 0.7%
African Development Bank, 2.375%, 09/23/21	USD	50		50,203
Asian Development Bank:
1.875%, 04/12/19	USD	100		99,881
2.125%, 03/19/25	USD	115		112,138
European Investment Bank, 1.125%, 09/16/21 (#)	CAD	135		103,780
International Bank for Reconstruction & Development, 3.500%, 01/22/21	NZD	55		39,948

Description	Security Currency	Principal Amount (000)		Fair Value
International Finance Corp., 3.625%, 05/20/20	NZD	140	$	101,824
Total Supranationals (Cost $506,989)				507,774
US Municipal Bonds | 0.3%
California | 0.2%
California State Build America Bonds, 7.500%, 04/01/34	USD	95		140,678
Georgia | 0.1%
Georgia State Build America Bonds Series B, 2.380%, 02/01/27	USD	100		95,441
Total US Municipal Bonds (Cost $242,746)				236,119
US Treasury Securities | 1.2%
US Treasury Notes:
2.125%, 05/15/25	USD	155		152,593
1.625%, 05/15/26	USD	426		401,124
3.125%, 11/15/41	USD	100		107,395
2.500%, 05/15/46	USD	180		171,031
Total US Treasury Securities (Cost $825,684)				832,143
Description		Shares		Fair Value
Short-Term Investments | 1.3%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $904,332)		904,332	$	904,332
Total Investments | 100.1% (Cost $61,650,770) (¤)			$	69,264,911
Liabilities in Excess of Cash and Other Assets | (0.1)%				(90,106	)
Net Assets | 100.0%			$	69,174,805

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

18  Annual Report

Lazard Global Dynamic Multi-Asset Portfolio (continued)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
AUD	118,737	USD	91,589	CIT	02/22/18		$	1,050		$	—
AUD	265,572	USD	203,745	CIT	02/22/18			3,456			—
AUD	65,239	USD	50,000	HSB	02/22/18			900			—
CAD	80,614	USD	63,351	CIT	02/22/18			827			—
CAD	139,625	USD	110,000	CIT	02/22/18			1,157			—
CHF	57,321	USD	58,094	HSB	02/22/18			933			—
CHF	42,302	USD	43,114	SSB	03/28/18			561			—
EUR	8,313	USD	10,000	CIT	01/11/18			—			21
EUR	32,996	USD	39,000	CIT	01/11/18			609			—
EUR	140,128	USD	165,498	CIT	01/11/18			2,714			—
EUR	1,407,520	USD	1,662,580	HSB	01/11/18			27,032			—
EUR	574,538	USD	685,265	SSB	03/28/18			7,629			—
GBP	17,066	USD	22,681	HSB	02/22/18			397			—
GBP	158,428	USD	212,841	SSB	03/28/18			1,665			—
JPY	11,025,828	USD	99,000	CIT	01/11/18			—			1,115
JPY	69,312,615	USD	619,817	CIT	01/11/18			—			4,475
JPY	143,867,166	USD	1,286,380	HSB	01/11/18			—			9,158
KRW	112,581,020	USD	103,561	HSB	03/09/18			2,009			—
NZD	59,634	USD	40,555	HSB	02/22/18			1,681			—
SEK	776,721	USD	92,371	CIT	02/22/18			2,596			—
SEK	235,356	USD	27,985	HSB	02/22/18			792			—
USD	905,333	AUD	1,193,175	CIT	02/22/18			—			25,593
USD	331,065	AUD	429,394	SSB	03/28/18			—			3,912
USD	23,521	CAD	30,004	CIT	02/22/18			—			365
USD	50,780	CAD	65,186	CIT	02/22/18			—			1,116
USD	997,757	CAD	1,269,645	CIT	02/22/18			—			13,025
USD	635,709	CAD	809,214	SSB	03/28/18			—			8,773
USD	151,885	CZK	3,285,718	CIT	01/17/18			—			2,541
USD	63,866	CZK	1,399,557	HSB	01/17/18			—			1,912
USD	14,779	CZK	317,945	HSB	02/26/18			—			192
USD	75,287	CZK	1,651,455	JPM	01/17/18			—			2,330
USD	61,947	DKK	386,658	SSB	03/28/18			—			707
USD	98,956	GBP	74,456	HSB	02/22/18			—			1,732
USD	198,833	HKD	1,552,286	SSB	03/28/18			—			181
USD	79,479	HUF	21,153,712	JPM	02/22/18			—			2,405
USD	127,838	HUF	33,870,980	JPM	02/22/18			—			3,273
USD	63,210	ILS	219,857	SSB	03/28/18			—			195
USD	81,389	MXN	1,577,345	HSB	02/22/18			1,888			—
USD	87,397	MXN	1,679,530	HSB	02/22/18			2,746			—
USD	257,914	NOK	2,130,162	CIT	02/22/18			—			1,888
USD	111,019	NOK	917,076	HSB	02/22/18			—			831
USD	96,282	NOK	800,364	SSB	03/28/18			—			1,427
USD	613,124	NZD	901,573	HSB	02/22/18			—			25,417

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

Annual Report  19

Lazard Global Dynamic Multi-Asset Portfolio (concluded)

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
USD	164,010	PLN	590,074	CIT	02/22/18		$	—		$	5,515
USD	150,959	PLN	543,512	HSB	02/22/18			—			5,188
USD	798	SEK	6,624	SSB	03/28/18			—			13
USD	457,575	SGD	620,207	HSB	02/22/18			—			6,491
USD	106,796	SGD	143,409	SSB	03/28/18			—			570
Total gross unrealized appreciation/depreciation on Forward Currency Contracts							$	60,642		$	130,361

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

20  Annual Report

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2017

(*)	Non-income producing security.
(§)	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, 2017.
(#)	Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2017, the percentage of net assets for the following Portfolio was as follows:

Portfolio	Percentage of Net Assets
Global Dynamic Multi-Asset	0.4%

(¤) 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
BBSW	—	Bank Bill Swap Rate
CDOR	—	Canadian Depository Offered Rate
ETF	—	Exchange-Traded Fund
LIBOR	—	London Interbank Offered Rate
PRIBOR	—	Prague Interbank Offered Rate
REIT	—	Real Estate Investment Trust
WIBOR	—	Warsaw Interbank Offered Rate

Currency Abbreviations:
AUD	—	Australian Dollar
CAD	—	Canadian Dollar
CHF	—	Swiss Franc
CZK	—	Czech Koruna
DKK	—	Danish Krone
EUR	—	Euro
GBP	—	British Pound Sterling
HKD	—	Hong Kong Dollar
HUF	—	Hungarian Forint
ILS	—	Israeli Shekel
Counterparty Abbreviations:
CIT	—	Citibank NA
GSC	—	Goldman Sachs International
HSB	—	HSBC Bank USA NA
JPM	—	JPMorgan Chase Bank NA
SSB	—	State Street Bank and Trust Co.

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

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

Annual Report  21

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

Industry†	Lazard Global Dynamic Multi- Asset Portfolio
Aerospace & Defense		2.8	%
Airlines		1.6
Auto Components		1.1
Automobiles		0.5
Banks		7.8
Beverages		3.7
Biotechnology		2.5
Building Products		0.6
Capital Markets		3.4
Chemicals		1.6
Commercial Services & Suppliers		0.3
Communications Equipment		0.6
Construction & Engineering		0.3
Consumer Finance		0.6
Containers & Packaging		0.4
Diversified Financial Services		0.2
Diversified Telecommunication Services		2.9
Electric Utilities		2.2
Electrical Equipment		1.0
Electronic Equipment, Instruments & Components		1.2
Energy Equipment & Services		0.3
Equity Real Estate Investment Trusts (REITs)		1.3
Food & Staples Retailing		1.5
Food Products		0.8
Gas Utilities		0.1
Health Care Equipment & Supplies		0.7
Health Care Providers & Services		2.4
Hotels, Restaurants & Leisure		2.3
Household Durables		1.2
Household Products		0.2
Independent Power and Renewable Electricity Producers		0.4
Industrial Conglomerates		2.0
Insurance		3.6

Industry†	Lazard Global Dynamic Multi- Asset Portfolio
Internet & Catalog Retail		0.5	%
Internet Software & Services		1.8
IT Services		4.1
Leisure Products		0.2
Life Sciences Tools & Services		0.7
Machinery		1.4
Media		1.5
Metals & Mining		0.6
Multiline Retail		0.6
Multi-Utilities		0.8
Oil, Gas & Consumable Fuels		4.9
Paper & Forest Products		0.2
Personal Products		1.1
Pharmaceuticals		4.3
Professional Services		0.8
Real Estate Management & Development		1.5
Road & Rail		0.7
Semiconductors & Semiconductor Equipment		1.8
Software		2.5
Specialty Retail		3.3
Technology Hardware, Storage & Peripherals		1.5
Textiles, Apparel & Luxury Goods		0.4
Thrifts & Mortgage Finance		0.3
Tobacco		0.6
Trading Companies & Distributors		0.5
Transportation Infrastructure		0.1
Wireless Telecommunication Services		0.5
Subtotal		89.3
Foreign Government Obligations		7.3
Supranationals		0.7
US Municipal Bonds		0.3
US Treasury Securities		1.2
Short-Term Investments		1.3
Total Investments		100.1	%

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

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

22  Annual Report

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2017	Lazard Capital Allocator Opportunistic Strategies Portfolio				Lazard Global Dynamic Multi- Asset Portfolio
ASSETS
Investments in securities, at fair value		$	146,822,985			$	69,264,911
Cash			—				1,146
Foreign currency, at fair value			232				29,776
Receivables for:
Capital stock sold			5,797,759				650
Dividends and interest			49,456				158,036
Gross unrealized appreciation on swap agreements			339,094				—
Gross unrealized appreciation on forward currency contracts			—				60,642
Prepaid expenses			3,575				7,152
Total assets			153,013,101				69,522,313
LIABILITIES
Cash collateral due to broker on swap agreements			370,000				—
Payables for:
Management fees			151,594				49,000
Accrued custodian fees			27,323				110,629
Accrued professional services			25,071				29,411
Accrued distribution fees			90				86
Capital stock redeemed			218,435				—
Investments purchased			—				24,845
Gross unrealized depreciation on forward currency contracts			—				130,361
Other accrued expenses and payables			25,396				3,176
Total liabilities			817,909				347,508
Net assets		$	152,195,192			$	69,174,805
NET ASSETS
Paid in capital		$	137,113,406			$	61,748,410
Undistributed (Distributions in excess of) net investment income (loss)			(354,162	)			(119,957	)
Accumulated net realized gain (loss)			2,320,403				287
Net unrealized appreciation (depreciation) on:
Investments			12,776,442				7,614,141
Foreign currency translations and forward currency contracts			9				(68,076	)
Swap agreements			339,094				—
Net assets		$	152,195,192			$	69,174,805
Institutional Shares
Net assets		$	151,767,417			$	68,761,146
Shares of capital stock outstanding*			14,316,598				5,986,168
Net asset value, offering and redemption price per share		$	10.60			$	11.49
Open Shares
Net assets		$	427,775			$	413,659
Shares of capital stock outstanding*			40,563				36,012
Net asset value, offering and redemption price per share		$	10.55			$	11.49
Cost of investments in securities		$	134,046,543			$	61,650,770
Cost of foreign currency		$	219			$	29,739

* $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.

Annual Report  23

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2017	Lazard Capital Allocator Opportunistic Strategies Portfolio				Lazard Global Dynamic Multi- Asset Portfolio
Investment Income (Loss)
Income
Dividends		$	2,868,996			$	1,133,488
Interest			231,311				225,453
Total investment income*			3,100,307				1,358,941
Expenses
Management fees (Note 3)			1,519,002				472,950
Professional services			50,357				48,292
Custodian fees			41,820				191,113
Administration fees			36,630				23,062
Registration fees			34,809				36,301
Shareholders’ reports			30,815				4,461
Shareholders’ services			26,790				26,155
Directors’ fees and expenses			10,076				6,655
Shareholders’ meeting			4,064				2,568
Distribution fees (Open Shares)			1,335				782
Amortization of offering costs (Note 2(h))			—				31,402
Other			9,646				7,021
Total gross expenses before expenses on securities sold short			1,765,344				850,762
Dividend expense on securities sold short			46,428				—
Total gross expenses			1,811,772				850,762
Management fees waived and expenses reimbursed			(213,767	)			(317,520	)
Total net expenses			1,598,005				533,242
Net investment income (loss)			1,502,302				825,699
Net Realized and Unrealized Gain (Loss) on Investments, Securities Sold Short, Foreign Currency Transactions, Forward Currency Contracts and Swap Agreements
Net realized gain (loss) on:
Investments			10,686,557				2,522,567
Securities sold short			56,396				—
Foreign currency transactions			(2,965	)			10,024
Forward currency contracts			—				(64,758	)
Swap agreements			3,114,315				—
Total net realized gain (loss) on investments, securities sold short, foreign currency transactions, forward currency contracts and swap agreements			13,854,303				2,467,833
Net change in unrealized appreciation (depreciation) on:
Investments			9,029,756				7,671,186
Foreign currency translations			24				692
Forward currency contracts			—				27,744
Swap agreements			409,790				—
Total net change in unrealized appreciation (depreciation) on investments, foreign currency translations, forward currency contracts and swap agreements			9,439,570				7,699,622
Net realized and unrealized gain (loss) on investments, securities sold short, foreign currency transactions, forward currency contracts and swap agreements			23,293,873				10,167,455
Net increase (decrease) in net assets resulting from operations		$	24,796,175			$	10,993,154
* Net of foreign withholding taxes of		$	—			$	58,208

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

24  Annual Report

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			Year Ended			Period Ended
	December 31,			December 31,			December 31,			December 31,
	2017			2016			2017			2016 (a)
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	1,502,302		$	2,619,791		$	825,699		$	146,778
Net realized gain (loss) on investments, securities sold short, foreign currency transactions, forward currency contracts and swap agreements		13,854,303			(2,030,624	)		2,467,833			658
Net change in unrealized appreciation (depreciation) on investments, foreign currency translations, forward currency contracts and swap agreements		9,439,570			6,931,900			7,699,622			(153,557	)
Net increase (decrease) in net assets resulting from operations		24,796,175			7,521,067			10,993,154			(6,121	)
Distributions to shareholders
From net investment income
Institutional Shares		(1,886,787	)		(2,125,006	)		(788,919	)		(239,979	)
Open Shares		(4,028	)		(10,062	)		(3,510	)		(661	)
From net realized gains
Institutional Shares		(9,179,964	)		—			(2,498,089	)		(16,276	)
Open Shares		(25,934	)		—			(14,937	)		(70	)
Return of capital
Institutional Shares		—			(246,932	)		—			—
Open Shares		—			(1,169	)		—			—
Net decrease in net assets resulting from distributions		(11,096,713	)		(2,383,169	)		(3,305,455	)		(256,986	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		35,317,474			18,930,615			9,364,602			48,568,527
Open Shares		49,791			349,702			267,652			230,070
Net proceeds from reinvestment of distributions
Institutional Shares		10,077,754			2,219,667			3,280,747			256,255
Open Shares		29,181			11,030			18,447			731
Cost of shares redeemed
Institutional Shares		(48,762,309	)		(55,399,225	)		(77,323	)		(18,315	)
Open Shares		(533,355	)		(284,038	)		(121,195	)		(19,985	)
Net increase (decrease) in net assets from capital stock transactions		(3,821,464	)		(34,172,249	)		12,732,930			49,017,283
Redemption fees (Note 2(j))
Institutional Shares		—			1,002			—			—
Net increase in net assets from redemption fees		—			1,002			—			—
Total increase (decrease) in net assets		9,877,998			(29,033,349	)		20,420,629			48,754,176
Net assets at beginning of period		142,317,194			171,350,543			48,754,176			—
Net assets at end of period*	$	152,195,192		$	142,317,194		$	69,174,805		$	48,754,176
*Includes undistributed (distributions in excess of) net investment income (loss) of	$	(354,162	)	$	50,483		$	(119,957	)	$	(177,277	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		14,593,661			18,234,761			4,855,126			—
Shares sold		3,454,939			2,073,664			850,861			4,831,304
Shares issued to shareholders from reinvestment of distributions		953,430			228,596			286,980			25,600
Shares redeemed		(4,685,432	)		(5,943,360	)		(6,799	)		(1,778	)
Net increase (decrease)		(277,063	)		(3,641,100	)		1,131,042			4,855,126
Shares outstanding at end of period		14,316,598			14,593,661			5,986,168			4,855,126
Open Shares
Shares outstanding at beginning of period		85,313			77,778			21,043			—
Shares sold		4,746			36,303			24,809			22,963
Shares issued to shareholders from reinvestment of distributions		2,774			1,142			1,613			73
Shares redeemed		(52,270	)		(29,910	)		(11,453	)		(1,993	)
Net increase (decrease)		(44,750	)		7,535			14,969			21,043
Shares outstanding at end of period		40,563			85,313			36,012			21,043

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

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

Annual Report  25

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	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	9.70		$	9.36		$	10.02		$	10.24		$	10.03
Income (loss) from investment operations:
Net investment income (loss) (a)		0.10			0.16	^		0.07			0.04			0.09
Net realized and unrealized gain (loss)		1.62			0.34			(0.46	)		0.41			1.12
Total from investment operations		1.72			0.50			(0.39	)		0.45			1.21
Less distributions from:
Net investment income		(0.14	)		(0.14	)		(0.03	)		(0.28	)		(0.48	)
Net realized gains		(0.68	)		—			(0.24	)		(0.39	)		(0.52	)
Return of capital		—			(0.02	)		—	(b)		—			—
Total distributions		(0.82	)		(0.16	)		(0.27	)		(0.67	)		(1.00	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	10.60		$	9.70		$	9.36		$	10.02		$	10.24
Total Return (c)		17.74	%		5.36	%^		-3.80	%		4.40	%		12.22	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	151,767		$	141,494		$	170,626		$	185,489		$	214,161
Ratios to average net assets:
Net expenses		1.05	%		1.02	%^		1.02	%		1.02	%		1.02	%
Gross expenses		1.18	%		1.19	%		1.18	%		1.15	%		1.13	%
Gross expenses, excluding expenses on securities sold short		1.15	%		1.19	%		1.18	%		1.15	%		1.13	%
Net investment income (loss)		0.99	%		1.72	%^		0.66	%		0.35	%		0.89	%
Portfolio turnover rate:
Excluding securities sold short		142	%		238	%		255	%		265	%		193	%
Including securities sold short		153	%		N/A			N/A			N/A			N/A
Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	9.65		$	9.32		$	10.02		$	10.24		$	10.03
Income (loss) from investment operations:
Net investment income (loss) (a)		0.05			0.13	^		0.01			0.01			0.06
Net realized and unrealized gain (loss)		1.64			0.33			(0.47	)		0.41			1.12
Total from investment operations		1.69			0.46			(0.46	)		0.42			1.18
Less distributions from:
Net investment income		(0.11	)		(0.11	)		—	(b)		(0.25	)		(0.45	)
Net realized gains		(0.68	)		—			(0.24	)		(0.39	)		(0.52	)
Return of capital		—			(0.02	)		—	(b)		—			—
Total distributions		(0.79	)		(0.13	)		(0.24	)		(0.64	)		(0.97	)
Redemption fees		—			—			—			—	(b)		—
Net asset value, end of period	$	10.55		$	9.65		$	9.32		$	10.02		$	10.24
Total Return (c)		17.48	%		4.97	%^		-4.51	%		4.10	%		11.90	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	428		$	823		$	725		$	3,950		$	2,616
Ratios to average net assets:
Net expenses		1.34	%		1.32	%^		1.32	%		1.32	%		1.32	%
Gross expenses		3.87	%		3.31	%		1.66	%		1.81	%		1.84	%
Gross expenses, excluding expenses on securities sold short		3.85	%		3.31	%		1.66	%		1.81	%		1.84	%
Net investment income (loss)		0.53	%		1.43	%^		0.15	%		0.14	%		0.60	%
Portfolio turnover rate:
Excluding securities sold short		142	%		238	%		255	%		265	%		193	%
Including securities sold short		153	%		N/A			N/A			N/A			N/A

^	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 period. The amount of the reimbursement was 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 the period custodian fees was offset against the 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 may have been waived or reimbursed by the 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.

26  Annual Report

LAZARD GLOBAL DYNAMIC MULTI-ASSET PORTFOLIO

	Year			For the Period
Selected data for a share of capital	Ended			5/27/16* to
stock outstanding throughout each period	12/31/17			12/31/16
Institutional Shares
Net asset value, beginning of period	$	10.00		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.15			0.06
Net realized and unrealized gain (loss)		1.92			(0.01	)
Total from investment operations		2.07			0.05
Less distributions from:
Net investment income		(0.14	)		(0.05	)
Net realized gains		(0.44	)		—	(b)
Total distributions		(0.58	)		(0.05	)
Net asset value, end of period	$	11.49		$	10.00
Total Return (c)		20.69	%		0.53	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	68,761		$	48,544
Ratios to average net assets (d):
Net expenses		0.90	%		0.90	%
Gross expenses		1.42	%		2.14	%
Net investment income (loss)		1.40	%		0.95	%
Portfolio turnover rate		102	%		67	%
	Year			For the Period
Selected data for a share of capital	Ended			5/27/16* to
stock outstanding throughout each period	12/31/17			12/31/16
Open Shares
Net asset value, beginning of period	$	10.00		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.12			0.04
Net realized and unrealized gain (loss)		1.91			(0.01	)
Total from investment operations		2.03			0.03
Less distributions from:
Net investment income		(0.10	)		(0.03	)
Net realized gains		(0.44	)		—	(b)
Total distributions		(0.54	)		(0.03	)
Net asset value, end of period	$	11.49		$	10.00
Total Return (c)		20.33	%		0.35	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	414		$	210
Ratios to average net assets (d):
Net expenses		1.20	%		1.20	%
Gross expenses		5.79	%		9.43	%
Net investment income (loss)		1.09	%		0.72	%
Portfolio turnover rate		102	%		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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are 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  27

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2017

1. Organization

The Lazard Funds, Inc. 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-four 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 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 accordance with 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—Equity securities traded on a securities exchange or market, including exchange-traded option contracts, rights and warrants, are valued at the last reported sales price (for domestic equity securities) or the closing price (for foreign equity securities) on the exchange or market on which the security is principally traded or, for securities trading on the NASDAQ National Market System (“NASDAQ”), the NASDAQ Official Closing Price. If there is no available closing price for a foreign equity security, the last reported sales price is used. If there are no reported sales of a security on the valuation date, the security is valued at the most recent quoted bid price on such date reported by such principal exchange or market. Swap agreements, such as credit

default, interest rate and total return swap agreements, 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 New York Stock Exchange (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

28  Annual Report

derivative instruments), such securities will be valued at their fair value as determined by, or in accordance with procedures approved by, the Board. The fair value of non-US securities may be determined with the assistance of an independent pricing service using correlations between the movement of prices of such securities and indices of US securities and other appropriate indicators, such as closing market prices of relevant ADRs or futures contracts. Non-US securities may trade on days when a Portfolio is not open for business, thus affecting the value of the Portfolio’s assets on days when Portfolio shareholders may not be able to buy or sell Portfolio shares.

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

(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Dividend income and dividend expenses on short sales are 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 and/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/or 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 represents net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency 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.

Annual Report  29

During the year ended December 31, 2017, the Global Dynamic Multi-Asset Portfolio traded in forward currency contracts.

(d) Swap Agreements—Swap agreements on equity securities involve commitments to pay interest in exchange for a market linked return based on a notional amount. The counterparty pays out the total return of the equity security or basket of equity securities and, in return, receives a regular stream of payments, based on an agreed-upon interest rate. To the extent the total return of the security or basket of securities underlying the transaction exceeds (or falls short of) the offsetting interest rate obligation, a Portfolio will receive a payment from (or make a payment to) the counterparty.

Swap agreements generally are valued by an independent pricing service, and the change in value, if any, is recorded as 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, 2017, the Capital Allocator Opportunistic Strategies Portfolio traded in swap agreements.

(e) Short Sales—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 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 pursuant to short sale arrangements, a Portfolio has 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 Portfolio 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 Portfolio and State Street. At December 31, 2017, there were no outstanding short sales positions for the Portfolios.

For the year ended December 31, 2017, the following Portfolio 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
Capital Allocator Opportunistic Strategies		$15,260,704		$15,204,308

(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, 2017, the Portfolios had no unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains.

30  Annual Report

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, 2017, the Portfolios had no such losses to defer.

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)
Capital Allocator Opportunistic Strategies	$	134,046,543		$12,905,037		$128,596		$12,776,441
Global Dynamic Multi-Asset		61,744,516		8,058,816		743,733		7,315,083

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 tax returns filed for any open tax years (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction’s statute of limitations. The Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.

(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		$(3,081	)		$(16,132	)	$  19,213
Global Dynamic Multi-Asset		—			24,050		(24,050)

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2017		2016		2017		2016
Capital Allocator Opportunistic Strategies*	$	10,390,559	$	2,135,068	$	706,154	$	—
Global Dynamic Multi-Asset		3,113,472		256,695		191,983		291

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

At December 31, 2017, 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		$980,968		$1,339,435		$12,761,383
Global Dynamic Multi-Asset		148,478		12,566		7,265,351

(h) Offering and Organizational Costs—Costs incurred by the Fund in connection with the offering of shares of a new Portfolio or share class of a 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 or share class. Organizational costs are expensed as incurred.

Annual Report  31

(i) Allocation of Expenses—Expenses common to the Fund, Lazard Retirement Series, Inc., Lazard Global Total Return and Income Fund, Inc. and Lazard World Dividend & Income Fund, Inc. (each a “Lazard Fund” and collectively, the “Lazard Fund Complex”), each a registered management investment company advised by the Investment Manager, not directly chargeable to one or more specific Lazard Funds are allocated to the Fund and among its Portfolios primarily on the basis of relative net assets. Expenses of the Fund not directly chargeable to one or more Portfolios are similarly allocated among the Portfolios 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 were 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 deter-

mined 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, and provides the Portfolios with administrative, operational and compliance assistance services. 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		0.80

The Investment Manager has voluntarily agreed to waive its fees and, if necessary, reimburse the Portfolios until May 1, 2018 if the aggregate direct expenses of the Portfolios, 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, 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

32  Annual Report

During the year ended December 31, 2017, 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
Capital Allocator Opportunistic Strategies		$200,190	$	—		$5,369		$  8,208
Global Dynamic Multi-Asset		303,180		—		2,497		11,843

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

State Street provides the Fund with custody and certain fund administration and accounting services.

In December 2015, State Street announced that it had identified inconsistencies in the way in which clients were invoiced for custody out-of-pocket expenses from 1998 until 2015.The dollar amount difference between what was charged and what should have been charged, plus interest, was recorded as a reimbursement when determined in 2016. Pursuant to the expense limitations described above, certain Portfolios 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.

On January 1, 2018, BFDS changed its name to DST Asset Manager Solutions, Inc.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2017, each Director who is not an affiliated person of the Investment Manager or any of its affiliates was paid by the Lazard Fund Complex: (1) an annual retainer of $210,000, (2) an additional annual fee of $30,000 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 $20,000 to the Audit Committee Chair. Effective January 1, 2018, the aggregate compensation for Independent Directors for the Lazard Fund Complex is comprised of: (1) an annual retainer of $225,000, (2) an additional annual fee of $32,500 to the lead Independent Director, and (3) an additional annual fee of $22,500 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 Inde-

Annual Report  33

pendent 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, 2017 were as follows:

Portfolio	Purchases		Sales
Capital Allocator Opportunistic Strategies	$	176,301,488	$	167,621,337
Global Dynamic Multi-Asset		68,882,736		58,395,193

	US Treasury Securities
Portfolio	Purchases		Sales
Global Dynamic Multi-Asset		$633,888		$496,973

For the year ended December 31, 2017, 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 is 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, 2017, the Portfolios had no borrowings under the Agreement.

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 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. A Portfolio’s currency investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies. The Investment Manager does not intend to actively hedge the Portfolios’ foreign currency exposure.

(d) Underlying Funds Risk—Shares of ETFs, closed-end funds and exchange-traded notes (“ETNs” and collectively with ETFs and closed-end funds, “Underlying Funds”) in which certain 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 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

34  Annual Report

passive index-based strategy may diverge from the performance of the index. ETNs may not trade in the secondary market, 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 Portfolio’s management fees and operating expenses, but also their proportional share of the management fees and operating expenses of the ETFs and closed-end funds in which the Portfolio invests. While ETNs do not have management fees, they are subject to certain investor fees. ETNs are debt securities that, like ETFs, typically are listed on exchanges and their terms generally provide for a return that tracks specified market indexes. However, unlike ETFs and closed-end funds, ETNs are not registered investment companies and thus are not registered under the 1940 Act. In addition, as debt securities, ETNs are subject to the additional risk of the creditworthiness of the issuer. ETNs typically do not make interest payments.

These Portfolios may be limited by the 1940 Act in the amount of their 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 Portfolios may rely or an exemption is available.

Many ETFs have received an exemptive order from the SEC providing an exemption from the 1940 Act limits on the amount of assets that may be invested in ETFs and closed-end funds, and a Portfolio’s reliance on an order is conditioned on compliance with certain conditions of the order. If an exemptive order has not been received and an exemption is not available under the 1940 Act, the Portfolio will be limited in the amount it can invest in Underlying Funds that are registered investment companies to: (1) 3% or less of an Underlying Fund’s voting shares, (2) an Underlying Fund’s shares in value equal to or less than 5% of the Portfolio’s assets and (3) shares of Underlying Funds in the aggregate in value equal to or less than 10% of the Portfolio’s total assets.

(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. During periods of reduced market liquidity, a Portfolio may not be able to readily sell debt securities at prices at or near their perceived value. An unexpected increase in Portfolio redemption requests, including requests from shareholders who may own a significant percentage of a Portfolio’s shares, which may be triggered by market turmoil or an increase in interest rates, could cause the Portfolio to sell its holdings at a loss or at undesirable prices and adversely affect the Portfolio’s share price and increase the Portfolio’s liquidity risk, Portfolio expenses and/or taxable distributions. Economic and other developments can adversely affect debt securities markets.

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

Annual Report  35

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).

Adjustable rate securities provide a Portfolio with a certain degree of protection against rises in interest rates, although such securities will participate in any declines in interest rates as well. Certain adjustable rate securities, such as those with interest rates that fluctuate directly or indirectly based on multiples of a stated index, are designed to be highly sensitive to changes in interest rates and can subject the holders thereof to extreme reductions of yield and possibly loss of principal.

(f) Short Position Risk—Short sales or positions may involve substantial risks. If a short position appreciates in value during the period of the 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.

Short sales of securities also may involve additional transaction-related costs such as those in connection with borrowing the securities sold short.

There is a risk that certain Portfolios may be unable to fully implement their investment strategies due to a lack of available securities to borrow to effect short sales or for some other reason.

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.

(g) Derivatives and Hedging Risk—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. Over-the-counter swap agreements, forward currency contracts, writing or purchasing over-the-counter options on securities (including options on ETFs and ETNs), indexes and currencies and other over-the-counter derivatives transactions

36  Annual Report

are subject to the risk of default by the counterparty and can be illiquid. Changes in liquidity may result in significant, rapid and unpredictable changes in the prices for derivatives. These derivatives transactions, as well as the exchange-traded futures and options in which certain Portfolios may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related index, commodity, interest rate, currency, security or other reference asset. As such, a small investment could have a potentially large impact on a Portfolio’s performance. Purchasing options will reduce returns by the amount of premiums paid for options that are not exercised. 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 when 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 indemnification provisions. 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 lia-

bility, 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. The fair value measurement level within the fair value hierarchy for the assets and liabilities of the Fund 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 assets and liabilities, interest rates, prepayment speeds, credit risk, etc.)

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

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  37

The following table summarizes the valuation of the Portfolios’ assets and liabilities by each fair value hierarchy level as of December 31, 2017:

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, 2017
Capital Allocator Opportunistic Strategies Portfolio
Assets:
Exchange-Traded Funds	$	115,507,092	$	—		$	—	$	115,507,092
Closed-End Management Investment Companies		5,470,149		—			—		5,470,149
Short-Term Investments		25,845,744		—			—		25,845,744
Other Financial Instruments†
Swap Agreements		—		339,094			—		339,094
Total	$	146,822,985	$	339,094		$	—	$	147,162,079
Global Dynamic Multi-Asset Portfolio
Assets:
Common Stocks*
Australia	$	—	$	1,644,246		$	—	$	1,644,246
Austria		—		190,579			—		190,579
Belgium		—		33,512			—		33,512
Canada		2,543,892		—			—		2,543,892
Denmark		180,961		455,573			—		636,534
Finland		137,925		38,377			—		176,302
France		165,609		1,331,085			—		1,496,694
Germany		447,182		1,239,575			—		1,686,757
Hong Kong		336,356		533,994			—		870,350
Ireland		241,212		—			—		241,212
Israel		128,871		46,983			—		175,854
Italy		—		148,955			—		148,955
Japan		959,622		4,267,445			—		5,227,067
Luxembourg		—		126,350			—		126,350
Malta		—		29,280			—		29,280
Netherlands		246,290		811,843			—		1,058,133
New Zealand		—		61,058			—		61,058
Norway		—		1,155,708			—		1,155,708
Singapore		155,168		535,792			—		690,960
Spain		—		427,076			—		427,076
Sweden		417,996		288,693			—		706,689
Switzerland		124,989		1,030,323			—		1,155,312
United Kingdom		1,805,408		1,909,005			—		3,714,413
United States		33,840,844		102,703			—		33,943,547
Corporate Bonds*		—		3,060,539			—		3,060,539
Foreign Government Obligations*		—		5,049,453			—		5,049,453
Quasi Government Bonds*		—		534,071			—		534,071
Supranationals		—		507,774			—		507,774
US Municipal Bonds		—		236,119			—		236,119
US Treasury Securities		—		832,143			—		832,143
Short-Term Investments		904,332		—			—		904,332
Other Financial Instruments†
Forward Currency Contracts		—		60,642			—		60,642
Total	$	42,636,657	$	26,688,896		$	—	$	69,325,553
Liabilities:
Other Financial Instruments†
Forward Currency Contracts	$	—	$	(130,361	)	$	—	$	(130,361	)

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

38  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.

During the year ended December 31, 2017, securities valued at the following amounts were transferred from Level 1 to Level 2:

Portfolio	Amount
Global Dynamic Multi-Asset	$690,235

There were no other transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 2017.

For further information regarding security characteristics see Portfolios of Investments.

10. Derivative Instruments

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

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

A Portfolio enters into swap agreements in an attempt to obtain a particular exposure when it is considered desirable to do so, possibly at a lower cost to such Portfolio than if it had invested directly in the asset that yielded the desired exposure.

Capital Allocator Opportunistic Strategies Portfolio

During the year ended December 31, 2017, the approximate average monthly notional exposure for derivative instruments was as follows:

Swap agreements $10,900,000

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2017:

	Fair Value
Asset Derivatives
Equity Risk:
Gross unrealized appreciation on swap agreements	$339,094

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2017 was:

	Amount
Realized Gain (Loss) on Derivatives
Equity Risk:
Net realized gain (loss) on swap agreements	$3,114,315
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Equity Risk:
Net change in unrealized appreciation (depreciation) on swap agreements	$409,790

Global Dynamic Multi-Asset Portfolio

During the year ended December 31, 2017, the approximate average monthly notional exposure for derivative instruments was as follows:

Forward currency contracts $12,500,000

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2017:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts		$  60,642
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts		$130,361

Annual Report  39

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2017 was:

	Amount
Realized Gain (Loss) on Derivatives
Foreign Exchange Risk:
Net realized gain (loss) on forward currency contracts		$(64,758	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on forward currency contracts		$ 27,744

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

As of December 31, 2017, the Capital Allocator Opportunistic Strategies and Global Dynamic Multi-Asset Portfolios held 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, 2017:

Capital Allocator Opportunistic Strategies 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
Swap Agreements		$339,094		$   —		$339,094

			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
Goldman Sachs International		$339,094		$  —		$(339,094)		$  —

(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.

40  Annual Report

Global Dynamic Multi-Asset Portfolio

Description	Gross Amounts of Recognized Assets			Gross Amounts Offset in the Statement of Assets and Liabilities		Net Amounts of Assets Presented in the Statement of Assets and Liabilities
Forward Currency Contracts		$	60,642		$   —		$60,642

			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
Citibank NA		$12,409		$(12,409	)		$   —		$   —
HSBC Bank USA NA		38,378		(38,378	)		—		—
State Street Bank and Trust Co.		9,855		(9,855	)		—		—
Total		$60,642		$(60,642	)		$   —		$   —

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		$	130,361		$   —		$130,361

			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
Citibank NA		$ 55,654		$(12,409	)		$   —		$43,245
HSBC Bank USA NA		50,921		(38,378	)		—		12,543
JPMorgan Chase Bank NA		8,008		—			—		8,008
State Street Bank and Trust Co.		15,778		(9,855	)		—		5,923
Total		$130,361		$(60,642	)		$   —		$69,719

11. Subsequent Events

Management has evaluated subsequent events affecting the Fund through the issuance of the financial statements and has determined that, aside from items

previously disclosed within the Notes to Financial Statements, there were no subsequent events that required adjustment or disclosure.

Annual Report  41

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:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Lazard Capital Allocator Opportunistic Strategies Portfolio and Lazard Global Dynamic Multi-Asset Portfolio (collectively, the “Portfolios”), two of the portfolios constituting The Lazard Funds, Inc. (the “Fund”), as of December 31, 2017, 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, the financial highlights for each of the four years in the period then ended for Lazard Capital Allocator Opportunistic Strategies Portfolio and each of the periods presented for Lazard Global Dynamic Multi-Asset Portfolio, and the related notes to the financial statements. The financial highlights for the year ended December 31, 2013 were audited by other auditors whose report, dated February 28, 2014, expressed an unqualified opinion on those financial highlights. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Portfolios, as of December 31, 2017, and 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 four years in the period then ended for Lazard Capital Allocator Opportunistic Strategies Portfolio and each of the periods presented for Lazard Global Dynamic Multi-Asset Portfolio, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolios’ management. Our responsibility is to express an opinion on the Portfolios’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolios in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Portfolios are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2017, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE &TOUCHE LLP

New York, New York

February 28, 2018

We have served as the auditor of one or more Lazard Fund Complex investment companies since 2004.

42  Annual Report

The Lazard Funds, Inc. Proxy Voting Results (unaudited)

A Joint Special Meeting of Shareholders of the Fund and Lazard Retirement Series, Inc. was held on October 20, 2017, to vote on the following proposals. The proposals received the required number of votes of shareholders and were adopted.

Proposal 1:

To elect each of Franci J. Blassberg, Trevor W. Morrison and Nathan A. Paul as a Fund Director.

Director	For		Withhold Authority
Franci J. Blassberg		1,322,185,144		18,431,907
Trevor W. Morrison		1,323,575,840		17,041,212
Nathan A. Paul		1,331,727,319		8,889,732

Proposal 2A:

To approve revising the Portfolio’s fundamental investment restrictions on issuing senior securities, borrowing and pledging or mortgaging its assets.

Portfolio	For		Against		Abstain
Capital Allocator Opportunistic Strategies		10,464,168		31,604		67,492
Global Dynamic Multi-Asset		746,772		—		—

Proposal 2B:

To approve revising the Portfolio’s fundamental investment restrictions on purchasing or selling commodities or commodities contracts.

Portfolio	For		Against		Abstain
Capital Allocator Opportunistic Strategies		10,473,740		20,285		69,239
Global Dynamic Multi-Asset		746,772		—		—

Proposal 2C:

To approve revising the Portfolio’s fundamental investment restriction on purchasing securities on margin.

Portfolio	For		Against		Abstain
Capital Allocator Opportunistic Strategies		10,472,881		21,144		69,239
Global Dynamic Multi-Asset		746,772		—		—

Annual Report  43

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

Name (Age) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years(2)
Independent Directors(3):
Franci J. Blassberg (64)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present)
		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 (72)	Director (August 1995)	Davidson Capital Management Corporation, an investment manager, President (1978 – present)
		Landseer Advisors LLC, an investment manager, Senior Advisor (2012 – 2014)
Nancy A. Eckl (55)	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 AccountVA-1, Member of the Management Committee (2007 – present)
Trevor W. Morrison (46)	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. (73)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		Resource Americas, Inc., a real estate asset management company, Director (2016 – present)
Robert M. Solmson (70)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

44  Annual Report

Name (Age) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years(2)
Interested Directors(4):
Ashish Bhutani (57)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present)
		Lazard Ltd, Vice Chairman and Director (2010 – present)
Nathan A. Paul (45)	Director (October 2017) Chief Executive Officer and President (February 2017)	Investment Manager, Chief Business Officer (April 2017 – present) and Managing Director (2003 – present)
		Investment Manager, General Counsel (2002 – April 2017)

(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, 2018, 41 active investment portfolios). Each Director serves an indefinite term, until his or her successor is elected, and each Director serves in the same capacity for the other funds in the Lazard Fund Complex.
(3)	“Independent Directors” are not “interested persons” (as defined in the 1940 Act) of the Fund.
(4)	Messrs. Bhutani and Paul 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.lazardassetmanagement.com.

Annual Report  45

Name (Age) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) During the Past Five Years
Officers(3):
Mark R. Anderson (47)	Chief Compliance Officer (September 2014), Vice President and Secretary (February 2017)	Managing Director (since February 2017, previously Director), General Counsel (since April 2017) and Chief Compliance Officer (since September 2014) of the Investment Manager
		Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014)
Christopher Snively (33)	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 (59)	Treasurer (May 2003)	Vice President of the Investment Manager
Tamar Goldstein (42)	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 (36)	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 (43)	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 Nathan A. Paul, Chief Executive Officer and President (since February 2017; previously, Vice President and Secretary since April 2002), whose information is included in the Interested Directors section above.

46  Annual Report

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

Tax Information

Year Ended December 31, 2017

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2017:

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

Portfolio	Percentage
Capital Allocator Opportunistic Strategies	12.39	%
Global Dynamic Multi-Asset	35.01

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	7.29	%
Global Dynamic Multi-Asset	17.11

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 https://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 https://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 https://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330.

Annual Report  47

The Lazard Funds, Inc.

30 Rockefeller Plaza

New York, New York 10112-6300

Telephone: 800-823-6300

https://www.lazardassetmanagement.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

DST Asset Manager Solutions, 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

Proskauer Rose LLP

Eleven Times Square

New York, New York 10036-8299

http://www.proskauer.com

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

Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardassetmanagement.com LZDPS030

 

Lazard Funds Annual Report

December 31, 2017

Emerging Markets 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 • Assets and income • Account transactions • Credit history • Transaction history When you are no longer our customer, we continue to share your information as described in this notice.
How?	All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information, the reasons Lazard chooses to share, and whether you can limit this sharing.

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

Questions? Call 800-823-6300 or go to https://www.lazardassetmanagement.com

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

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
52	Lazard Emerging Markets Debt Portfolio
65	Lazard Explorer Total Return Portfolio
77	Lazard Emerging Markets Income Portfolio
80	Notes to Portfolios of Investments
84	Statements of Assets and Liabilities
86	Statements of Operations
88	Statements of Changes in Net Assets
92	Financial Highlights
103	Notes to Financial Statements
129	Report of Independent Registered Public Accounting Firm
131	Proxy Voting Results
133	Board of Directors and Officers Information
136	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.lazardassetmanagement.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,

Record high global stock prices were supported by synchronized global economic growth in 2017. Markets also benefited from benign inflation, accommodative central bank policy, and strong corporate profits. Volatility remained at historic lows despite tension between North Korea and the United States and political uncertainty in Brazil, Spain, and the United Kingdom.

Emerging markets equity and debt advanced strongly in 2017. Emerging markets continued to benefit from low inflation, modest but steady growth, and improving profitability as global demand recovers and businesses tighten fiscal discipline. Earnings improvement in China and Korea drove returns in emerging markets. While our outlook for the asset class remains positive, our emerging markets investment teams are vigilant about potential risks. This includes an increase in developed markets inflation that could lead to central banks raising rates too quickly and, in effect, a global growth slowdown.

European equity markets performed well in 2017 as the region’s economic recovery deepened and investors grew more confident in its underlying strength. During the year, a market-friendly result to France’s presidential election helped buoy European sentiment. UK equities generated solid absolute returns amid a challenging political backdrop and Brexit negotiations. In addition, the European Central Bank announced that it would extend its monthly bond-buying program into 2018, but plans to reduce the pace of these purchases.

The US economy also advanced strongly in 2017. A new US tax bill represented one of the most significant changes to the US tax code in over 30 years as it changes individual, corporate, and international taxes. The US yield curve continued to flatten as short-term rates moved higher, driven by the three US rate hikes during 2017 and the prospect of additional hikes in 2018.

We are privileged that you have turned to Lazard for your investment needs and value your continued confidence in our investment management capabilities. Be assured that our specialist investment teams, supported by our global infrastructure, are continuing to strive for the long-term patterns of performance that you expect.

Sincerely,

Lazard Asset Management LLC

2   Annual Report

The Lazard Funds, Inc. Investment Overviews

Emerging Markets Equities, Debt, and Currency

Emerging markets equities enjoyed a strong year, driven by investor optimism about higher anticipated global economic growth. The MSCI Emerging Markets^® Index increased by more than 37%, as measured in US dollar terms, in 2017, driven to a large extent by earnings improvements in China and Korea. Stocks in Asia substantially outperformed stocks in Latin America and eastern Europe. Information technology was, by some margin, the best-performing sector, aided by high revenue and profit growth. Commodity prices were generally weak in the first half of the year, but then strengthened in the second half with copper and crude oil prices rising markedly. The year also had political and economic tensions, including several missile launches by North Korea and the first year of the Trump administration, which involved some changes to long-term US policy, such as protectionism, as well as some reflationary effects.

The election victory of Emmanuel Macron in France was an important factor in supporting markets in eastern Europe. Returns were decent in the Czech Republic and strong in Hungary. Returns were particularly strong in Poland, where the nationalist policies of the government had been scrutinized. Stocks in Turkey were affected by a constitutional vote and worsening relations with many European nations, but ultimately finished modestly stronger than the index as investors became more confident of corporate earnings growth. South Africa also endured a turbulent year under President Jacob Zuma’s leadership, but finally flourished as Cyril Ramaphosa was narrowly elected the African National Congress President. Qatari equities suffered as several of its regional neighbors labeled it a sponsor of terrorism and cut off diplomatic relations.

Although all Latin American equities markets registered positive returns over the year, the performance within countries varied. Mexican stocks rebounded in the first half of the year as it appeared that the North American Free Trade Agreement renegotiation would proceed more smoothly only to see this trend reverse in the second half of the year. Brazilian stocks experienced high volatility and considerable weakness after a recording of President Michel Temer apparently condoning corruption were made public. Temer fought

against impeachment attempts and stayed in place, although this delayed, and may still diminish, any significant reforms. Chilean equities were helped by rebounding copper prices as well as Sebastian Pinera’s presidential victory.

Chinese stocks performed very strongly in 2017. Particularly impressive returns were witnessed in the internet-related industry where stocks like Tencent and Alibaba rose sharply amid considerably high revenue growth expectations. Despite the impeachment of President Park and a jail sentence for Samsung Electronics’ acting CEO, Korean stocks were bolstered due to improving expectations for exports as well as stronger and more stable semiconductor prices. Indian equities benefited from several Bharatiya Janata Party state election victories as well as measures announced to recapitalize the government-controlled banks. Thai stocks were aided by increasing exports and a strengthening economy. Pakistan was the worst-performing country in the MSCI Emerging Markets Index, negatively affected by a corruption scandal involving the president as well as technical changes involving the country’s move between frontier and emerging markets.

All sectors recorded positive returns in 2017. Information technology substantially outperformed all other industries. In addition, real estate and consumer discretionary sectors performed well. The weakest-performing sectors during the year were utilities and telecommunication services.

Lazard Emerging Markets Equity Portfolio

For the year ended December 31, 2017, the Lazard Emerging Markets Equity Portfolio’s Institutional Shares posted a total return of 28.02%, while Open Shares posted a total return of 27.73%, and R6 Shares posted a total return of 28.02%, as compared with the 37.28% return for the MSCI Emerging Markets Index.

In the fourth quarter, Magnit, a Russian food retailer, reported disappointing results amid increased competitive pressure. Shares of Habib Bank, a Pakistani bank, fell after the company was fined $225 million by the Department of Financial Services, the New York financial regulator, over compliance failures by its

Annual Report   3

New York branch, which was subsequently shut down. Shares of Gazprom, a Russian gas company, declined as hopes for an increased dividend payout ratio diminished. Shares of Life Healthcare, a South African hospital operator, declined as local health insurance companies applied pressure through the medical procedure approval process. Oil & Gas Development, a Pakistani energy company, was hurt by declining oil prices and political concerns as the prime minister was called to testify in a “Panama Papers” probe. Stock selection within the information technology, consumer discretionary, and financials sectors and within China hurt performance. A higher-than-index exposure to the telecom services sector and to Russia and Pakistan, and a lower-than-index exposure to China detracted from performance.

In contrast, Samsung Electronics, a leading Korean technology company, continued to benefit from stronger memory pricing, the acceleration of organic light-emitting diode technology, and stronger pre-orders for its Galaxy Note 8. Shares of Taiwan Semiconductor Manufacturing gained amid expectations for a strong Apple-led ramp-up in the second half of the year. NetEase, a Chinese publisher of online games and web portal company, provided an upbeat assessment of its 2018 games pipeline on its third quarter earnings call. SK Hynix, a Korean semiconductor company, performed well due to stronger-than-expected memory prices. Shares of Sberbank, a Russian bank, rose after management provided an upbeat guidance for 2017 with improving loan growth and increased deposits, allowing for a high-teens projected return on equity (ROE). Stock selection within Russia, overall, added value.

Lazard Emerging Markets Core Equity Portfolio

For the year ended December 31, 2017, the Lazard Emerging Markets Core Equity Portfolio’s Institutional Shares posted a total return of 40.35%, while Open Shares posted a total return of 39.80%, as compared with the 37.28% return for the MSCI Emerging Markets Index.

During the year, HDFC Bank, India’s second largest private bank, performed well after it reported stronger credit growth during the second half of the year. Shares

of Korea-based Samsung Electronics, a global technology leader, rose as the company reported solid earnings and announced that it would entirely cancel its treasury shares, improving shareholder returns. SK Hynix, a Korean semiconductor manufacturer, strengthened over the year as it has benefited from higher DRAM spot prices in a healthier demand and tighter supply environment. NCSoft, a Korean online and mobile games company, strengthened as user interest grew in anticipation of the release of its game Lineage M. Stock selection within China, India, Korea, and Taiwan was positive for performance. Additionally, stock selection within the financials and information technology sectors, along with a higher-than-index exposure to the information technology sector, lifted returns.

In contrast, shares of LUKOIL, a Russian energy company, underperformed due to a generally stronger ruble, which weighed on profitability, and as the price of crude oil dropped on news of a nine-month extension of OPEC production cuts. Tenaris, a manufacturer of seamless steel pipes for the oil and gas industry with assets in Mexico and Argentina, underperformed due to generally weaker crude oil markets and concerns surrounding near-term sequential margin growth after reporting first quarter earnings. Shares of Vipshop Holdings, a Chinese online retailer specializing in flash sales, fell as the company reported a weaker second quarter gross profit margin from increased industry competition and aggressive promotions. We sold the position. Quarterly results for Tata Motors, an Indian auto company and owner of the Jaguar Land Rover brand, fell short of expectations on lower-than-expected volumes and an increase in incentives. Stock selection within Brazil weighed on returns. A higher-than-index exposure to Russia and a lower-than-index exposure to China also was negative for performance. Stock selection within the real estate and energy sectors hurt relative performance.

Lazard Developing Markets Equity Portfolio

For the year ended December 31, 2017, the Lazard Developing Markets Equity Portfolio’s Institutional Shares posted a total return of 41.15%, while Open Shares posted a total return of 40.56%, as compared with the 37.28% return for the MSCI Emerging Markets Index.

4   Annual Report

Stock selection within the financials, consumer discretionary, industrials, information technology and utilities sectors, as well as in Russia, South Africa, China, Indonesia and Taiwan, helped relative performance. Lower-than-index exposure to the consumer staples, telecommunication services and utilities sectors, as well as lack of exposure to Qatar, UAE and Malaysia, and higher-than-index exposure to China all added value. Shares in Tencent, a Chinese gaming and social media company, rose following the release of solid results, the potential listing of various subsidiaries and the increased investment flow by mainlanders into Hong Kong-listed stocks. Alibaba, a Chinese e-commerce company, rose on strong results. Ping An, a large insurance group in China, outperformed after reporting strong operating metrics in its long-term protection business. In contrast, Samsung Electronics, a leading Korean technology company, continued to benefit from stronger memory pricing, the acceleration of organic light-emitting diode technology, and stronger pre-orders for its Galaxy Note 8. Brilliance China Automotive, a manufacturer of BMW models in China, outperformed on strong monthly sales of their high-margin models.

In contrast, stock selection within the consumer staples, healthcare and real estate sectors, as well as in Brazil, Korea and India, detracted from relative performance. Higher-than index-exposure within the energy, industrials and healthcare sectors, as well as to Russia, and a lower-than-index exposure within the information technology sector also hurt performance. Qudian, an online small loan lender in China, performed poorly after Chinese regulators imposed new restrictions on lending rates. Korean Aerospace Industries, a Korean defense contractor, fell on weaker earnings growth and an ongoing dispute with the Korean government, its largest customer. Novatek, a Russian energy company, underperformed as the company transitioned from legacy-based output, to new fields under development. Petra Diamonds, a South African diamonds miner, corrected on worries that the diamond industry might face impending oversupply. Glenmark, an Indian generics pharmaceutical manufacturer, underperformed on weak earnings, resulting from pricing pressure and greater competition. We sold our position.

Lazard Emerging Markets Equity Advantage Portfolio

For the year ended December 31, 2017, the Lazard Emerging Markets Equity Advantage Portfolio’s Institutional Shares posted a total return of 42.52%, while Open Shares posted a total return of 42.09%, as compared with the 37.28% return for the MSCI Emerging Markets Index.

Favorable stock selection and sector and regional allocations all benefited the Portfolio, with the majority of excess return attributable to stock selection. Sector allocation was aided by an underweight to the consumer staples sector and an overweight to the information technology sector. This was partially offset by our overweight to the energy and utilities sectors. Regionally, the Portfolio benefited from an underweight to Latin America and overweight to Asian markets. Stock selection was favorable in ten of eleven sectors with consumer discretionary and information technology holdings providing the greatest contribution to relative performance. Holdings in the industrials sector lagged and, along with cash, detracted from return.

Stocks that provided the largest source of the year’s excess return included Geely Automobile, the owner of Volvo, which rallied as the new Volvo models have been very well received by the market. We have trimmed our position recently in light of the valuation but remain overweight. Sunny Optical surged for most of 2017 as demand for their lens from smart phone manufacturers for the dual lens smart phones and auto manufacturers for backup cameras benefited the stock. The stock gave back some of its gains in December as demand softened. Press Metal Aluminium, a Malaysia-based company engaged in the manufacturing and trading of aluminum products, announced record earnings for the year. Cost saving initiatives have enabled the company to grow its margins, and demand has remained high. The lack of exposure to Steinhoff International, the South African international retail holding company and a large index component, helped, as the stock fell precipitously after disclosing accounting irregularities and terminating its CEO.

Detractors for the year included a number of positions where we were underweight to the benchmark. Ping

Annual Report   5

An Insurance more than doubled during the year. While we initiated a position in the fourth quarter, our underweight detracted from relative returns. Naspers, the South African cable TV operator, rallied sharply all year largely based on its ownership interest in the Chinese internet company Tencent. Lack of exposure to China Evergrande, a Chinese REIT, and China’s second-largest property developer by sales, also hurt relative performance, as the stock soared during the year. Our position in Gentera, the Mexican regional bank, sold off early in the year in response to the US elections and related political rhetoric. The stock rebounded on optimism for favorable negotiations only to sell off again after announcing weak third quarter results. We sold our position given the negative sentiment surrounding the stock.

Lazard Emerging Markets Equity Blend Portfolio

For the year ended December 31, 2017, the Lazard Emerging Markets Equity Blend Portfolio’s Institutional Shares posted a total return of 35.98%, while Open Shares posted a total return of 35.38%, as compared with the 37.28% return for the MSCI Emerging Markets Index.

Asset allocation with an average overweight of growth versus value boosted performance, as did security selection in the consumer discretionary, financials, and industrials sectors and overweight exposure to the information technology sector. Stock selection in Brazil, Indonesia, Russia, and Taiwan and an overweight exposure to Argentina also benefited performance.

In contrast, a small cap allocation hurt performance, as did security selection in the information technology, materials, and real estate sectors. Stock selection in India and Mexico, and an overweight to Russia also hurt performance.

Lazard Emerging Markets Multi-Asset Portfolio

For the year ended December 31, 2017, the Lazard Emerging Markets Multi-Asset Portfolio’s Institutional Shares posted a total return of 22.08%, while Open Shares posted a total return of 21.64%, as compared with the 37.28% return for the MSCI Emerging Markets Index.

Portfolio performance was helped by stock selection in the consumer discretionary, financials, and industrials sectors and overweight exposure to the information technology sector. Stock selection in Brazil, Indonesia, Russia, and Taiwan and an overweight exposure to Argentina also benefited performance. Exposure to hard currency debt in Ukraine, Ghana, and Argentina; and exposure to local currencies in Egypt, India, and Poland also helped performance.

In contrast, the fixed income and small cap allocations hurt returns, as did stock selection in the information technology, materials, real estate, and utilities sectors. Stock selection in India, Mexico, and Turkey and overweight exposure to Russia as well as underweight exposure to China detracted. Exposure to hard currency debt in Venezuela; and exposure to local currencies in Hungary, Romania, South Africa, Israel, and Korea also hurt performance.

The Portfolio uses currency forwards, credit default swaps and interest rate swaps both opportunistically (for direct exposure) and defensively (for hedging purposes). For the year, the use of derivatives had no material impact on absolute performance.

Lazard Emerging Markets Debt Portfolio

For the year ended December 31, 2017, the Lazard Emerging Markets Debt Portfolio’s Institutional Shares posted a total return of 12.70%, while Open Shares posted a total return of 12.43%, and R6 Shares posted a total return of 12.76%, as compared with the 12.74% blended return for the 50% JPMorgan EMBI Global Diversified^® Index/50% JPMorgan GBI-EM Global Diversified^® Index (the “Global Diversified Index”).

From a top-down perspective, asset allocation detracted from relative performance, as an overweight position in external debt during the first quarter was detrimental to returns. We were more conservatively positioned at the start of the year, with an overweight position in external debt as we had concerns over US dollar strength due to the potential for significant fiscal stimulus in the United States and uncertainty over potential trade wars. As these concerns dissipated, we moved to a local currency overweight in late March.

6   Annual Report

These losses were offset by bottom-up country selection decisions within the Portfolio’s dollar-denominated bond allocation. Specifically, a general overweight to high yield countries was beneficial, with key contributors including Argentina, Ukraine, and Ecuador. The Portfolio also benefited from an off-index position in Petrobras, the Brazilian oil and gas company, which made significant progress on its turnaround with solid earnings and continued deleveraging.

In local currency debt, bottom-up duration positioning was beneficial, but it was more than offset by positioning in individual currencies. In currencies, we favored countries with attractive carry profiles (higher-yielding currencies that we expected to remain relatively stable on a spot basis) over low yielding countries. We believed that higher yielding countries would outperform in an environment of muted global inflation, solid global growth momentum, more stable commodity prices, and low volatility. However, the strong spot appreciation of lower yielding euro-related currencies detracted from performance.

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

Lazard Explorer Total Return Portfolio

For the year ended December 31, 2017, the Lazard Explorer Total Return Portfolio’s Institutional Shares posted a total return of 6.65%, while Open Shares posted a total return of 6.26%, as compared with the 12.74% return for the Global Diversified Index.

Throughout the year, we tactically adjusted the Portfolio’s net exposure, which ranged from roughly 20% to 115%. Bottom-up positioning in external sovereigns and local rates were the largest drivers of performance. Key sovereign credit positions in countries with positive reform momentum, such as Argentina, Ukraine, and Ghana, meaningfully drove absolute performance, as did positions in stressed/distressed credits such as Congo, Mozambique, and Belize. The

only notable detractor in sovereign credit was a small position in Venezuela.

With regard to the Portfolio’s idiosyncratic local rates positions, key long positions in Brazil and Russia were the primary drivers. Rates rallied significantly in both countries on low and falling inflation, which allowed each central bank to significantly ease monetary policy. To a lesser extent, the Portfolio benefited from a strategic long exposure to short-dated high yield corporates and a more tactical exposure to longer-dated high quality sovereigns. Both of these themes were designed to capture the attractive carry within their respective segments of the market.

In currencies, we began the year with a long position in emerging markets currencies with solid to improving fundamentals and opted to fund these positions in lower yielding proxies for the euro and yen due to our concerns about potential dollar strength. Specifically, we were concerned about the potential for significant fiscal stimulus in the United States and its impact on monetary policy as well as uncertainty over US trade policy. We were correct in our bullish view on emerging markets currencies but, counter to our expectations, the currencies we chose to fund these long positions appreciated significantly. As we became less concerned about dollar strength at the end of the first quarter, we also added an outright long position in emerging markets currencies that we funded in dollars in an effort to capture more of the beta, or broad market movement, in the local currency rally. In July, we completely shifted our funding currencies to the dollar, which we maintained for the duration of the year.

Lastly, Portfolio hedges detracted slightly from returns, mainly due to a short risk position in CDX.EM, the Markit CDX Emerging Markets^® Index, which is composed of 15 sovereign reference entities that trade in the CDS market, in order to mitigate the beta, or market exposure, inherent in our idiosyncratic sovereign credit positions. This detracted from performance as credit spreads continued to grind tighter during the first half of the year. We started to reduce this hedge in May, and we fully exited the position by early June.

Annual Report   7

The Portfolio management team uses currency forwards and options, credit default swaps and interest rate swaps. For the year, the use of derivatives detracted from the Portfolio’s absolute performance.

Lazard Emerging Markets Income Portfolio

For the year ended December 31, 2017, the Lazard Emerging Markets Income Portfolio’s Institutional Shares posted a total return of 11.73%, while Open Shares posted a total return of 11.42%, as compared with the 11.54% return for the JPMorgan Emerging Local Markets^® Index Plus.

Off-index exposure in Kazakhstan, Egypt, Dominican Republic, Morocco, and Uruguay added 80 basis points (bps) to returns. Egypt accounted for more than half of this result on high yield/stable foreign exchange (FX), ongoing macro and policy adjustment, and reserve rebuilding following an FX devaluation in 2016 and International Monetary Fund-supported agreement to restore the stability of the country’s finances. Security selection and overweight currency exposure in Brazil, Indonesia, Malaysia, and Russia

benefited relative performance as the synchronized global recovery, much-improved emerging markets fundamentals, and discounted valuations supported emerging markets currency and local debt markets. Overweight Czech exposure added to relative returns.

Conversely,Taiwan, Mexico, and Singapore detracted from performance during the year. Underweights in Taiwan and Singapore detracted 57 bps of relative performance. We held underweight positions in each due to low or negative yields and we believed limited scope for currency appreciation. However, sharp equity inflows and stability in China fostered currency rallies across these markets. Security selection and active currency management in Mexico cost 20 bps. Performance was hurt by underweight exposure during the first quarter’s relief rally as North American Free Trade Agreement (NAFTA) renegotiations were shelved, as did security selection late in the year as renewed NAFTA concerns, rising political risk ahead of presidential election set for mid-2018, “sticky” inflation, and higher US yields resulted in peso and local debt weakness.

Notes to Investment Overviews:

All Portfolios’ 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, 2017; 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 MSCI Emerging Markets^® Index*

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year	Five Years	Ten Years	Since Inception			†
Institutional Shares**	28.02%	3.21%	2.51%		7.38	%
Open Shares**	27.73%	2.94%	2.20%		7.20	%
R6 Shares**	28.02%	N/A	N/A		7.15	%
MSCI Emerging Markets Index	37.28%	4.35%	1.68%		6.07	%
				(Institutional Shares)
					6.72	%
				(Open Shares)
					9.18	%
				(R6 Shares)

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived by the 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”), if any, 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 Portfolio shares, 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 Emerging Markets Index is a free-float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The MSCI Emerging Markets Index consists of 24 emerging-market country indices. 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 MSCI Emerging Markets Index*

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year	Since Inception	†
Institutional Shares**	40.35%	5.77%
Open Shares**	39.80%	5.39%
MSCI Emerging Markets Index	37.28%	5.17%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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 Emerging Markets Index is a free-float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The MSCI Emerging Markets Index consists of 24 emerging-market country indices. 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 MSCI Emerging Markets Index*

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year			Five Years			Since Inception			†
Institutional Shares**		41.15	%		4.02	%		6.88	%
Open Shares**		40.56	%		3.65	%		6.53	%
MSCI Emerging Markets Index		37.28	%		4.35	%		6.77	%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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 Emerging Markets Index is a free-float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The MSCI Emerging Markets Index consists of 24 emerging-market country indices. 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 MSCI Emerging Markets Index*

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year			Since Inception			†
Institutional Shares**		42.52	%		10.11	%
Open Shares**		42.09	%		9.78	%
MSCI Emerging Markets Index		37.28	%		8.25	%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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 Emerging Markets Index is a free-float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The MSCI Emerging Markets Index consists of 24 emerging-market country indices. 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 MSCI Emerging Markets Index*  

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year		Five Years		Since Inception	†
Institutional Shares**	35.98	%	3.92	%	4.73%
Open Shares**	35.38	%	3.62	%	4.43%
MSCI Emerging Markets Index	37.28	%	4.35	%	5.50%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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 Emerging Markets Index is a free-float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The MSCI Emerging Markets Index consists of 24 emerging-market country indices. 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 MSCI Emerging Markets Index*

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year		Five Years		Since Inception	†
Institutional Shares**	22.08	%	1.59	%	0.92%
Open Shares**	21.64	%	1.25	%	0.59%
MSCI Emerging Markets Index	37.28	%	4.35	%	2.34%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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 Emerging Markets Index is a free-float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The MSCI Emerging Markets Index consists of 24 emerging-market country indices. 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, 2017

	One Year		Five Years		Since Inception	†
Institutional Shares**	12.70	%	0.36	%	3.08%
Open Shares**	12.43	%	0.06	%	2.78%
R6 Shares**	12.76	%	N/A		6.42%
JPMorgan EMBI Global Diversified Index	10.26	%	4.58	%	6.94%
					(Institutional and Open Shares) 5.71% (R6 Shares)
JPMorgan GBI-EM Global Diversified Index	15.21	%	–1.55	%	0.88%
					(Institutional and Open Shares) 7.93% (R6 Shares)
Global Diversified Index	12.74	%	1.53	%	3.94%
					(Institutional and Open Shares) 6.85% (R6 Shares)

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, also exclude one-time 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 Portfolio shares, 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. The JPMorgan GBI-EM Global Diversified Index is a uniquely weighted version of the GBI-EM Global. 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 countries covered in both indices are identical. The Global Diversified Index is an unmanaged index created by the Investment Manager and 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, 2017

	One Year	Since Inception	†
Institutional Shares**	6.65%	1.86%
Open Shares**	6.26%	1.53%
JPMorgan EMBI Global Diversified Index	10.26%	7.00%
JPMorgan GBI-EM Global Diversified Index	15.21%	–0.09%
Global Diversified Index	12.74%	3.47%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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. The JPMorgan GBI-EM Global Diversified Index is a uniquely weighted version of the GBI-EM Global. 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 countries covered in both indices are identical. The Global Diversified Index is an unmanaged index created by the Investment Manager and 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, 2017

	One Year	Since Inception		†
Institutional Shares**	11.73%	–0.86	%
Open Shares**	11.42%	–1.15	%
JPMorgan Emerging Local Markets Index Plus	11.54%	–0.43	%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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. 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 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, 2017 through December 31, 2017 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.

Annual Report  19

Portfolio	Beginning Account Value 7/1/17	Ending Account Value 12/31/17	Expenses Paid During Period* 7/1/17 - 12/31/17	Annualized Expense Ratio During Period 7/1/17 - 12/31/17
Emerging Markets Equity
Institutional Shares
Actual	$1,000.00	$1,135.10	$5.81	1.08%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.76	$5.50	1.08%
Open Shares
Actual	$1,000.00	$1,134.20	$7.15	1.33%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.50	$6.77	1.33%
R6 Shares
Actual	$1,000.00	$1,135.10	$5.81	1.08%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.76	$5.50	1.08%
Emerging Markets Core Equity
Institutional Shares
Actual	$1,000.00	$1,169.10	$6.40	1.17%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.31	$5.96	1.17%
Open Shares
Actual	$1,000.00	$1,166.40	$8.74	1.60%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,017.14	$8.13	1.60%
Developing Markets Equity
Institutional Shares
Actual	$1,000.00	$1,182.60	$6.33	1.15%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.41	$5.85	1.15%
Open Shares
Actual	$1,000.00	$1,180.60	$8.57	1.56%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,017.34	$7.93	1.56%
Emerging Markets Equity Advantage
Institutional Shares
Actual	$1,000.00	$1,165.60	$6.00	1.10%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.66	$5.60	1.10%
Open Shares
Actual	$1,000.00	$1,164.30	$7.64	1.40%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.15	$7.12	1.40%
Emerging Markets Equity Blend
Institutional Shares
Actual	$1,000.00	$1,144.10	$6.59	1.22%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.06	$6.21	1.22%
Open Shares
Actual	$1,000.00	$1,141.40	$8.64	1.60%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,017.14	$8.13	1.60%
Emerging Markets Multi-Asset
Institutional Shares
Actual	$1,000.00	$1,101.20	$6.41	1.21%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.11	$6.16	1.21%
Open Shares
Actual	$1,000.00	$1,097.30	$8.46	1.60%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,017.14	$8.13	1.60%

20  Annual Report

Portfolio	Beginning Account Value 7/1/17	Ending Account Value 12/31/17	Expenses Paid During Period* 7/1/17 - 12/31/17	Annualized Expense Ratio During Period 7/1/17 - 12/31/17
Emerging Markets Debt
Institutional Shares
Actual	$1,000.00	$1,042.10	$4.74	0.92%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.57	$4.69	0.92%
Open Shares
Actual	$1,000.00	$1,041.80	$6.18	1.20%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.16	$6.11	1.20%
R6 Shares
Actual	$1,000.00	$1,042.30	$4.63	0.90%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.67	$4.58	0.90%
Explorer Total Return
Institutional Shares
Actual	$1,000.00	$1,033.50	$5.28	1.03%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.01	$5.24	1.03%
Open Shares
Actual	$1,000.00	$1,031.50	$7.17	1.40%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.15	$7.12	1.40%
Emerging Markets Income
Institutional Shares
Actual	$1,000.00	$1,038.20	$4.68	0.91%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.62	$4.63	0.91%
Open Shares
Actual	$1,000.00	$1,037.40	$5.44	1.06%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.86	$5.40	1.06%

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

Annual Report  21

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector and Region December 31, 2017

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		9.4	%		12.1	%		12.2	%		8.4	%		13.2	%		9.1	%
Consumer Staples		5.9			3.2			1.8			6.1			2.8			2.0
Energy		7.8			6.5			8.3			7.5			7.4			6.2
Financials		28.8			25.3			27.1			24.4			23.3			16.7
Health Care		0.7			0.2			2.8			2.1			2.2			1.5
Industrials		5.5			4.7			10.5			5.1			7.8			5.3
Information Technology		24.2			29.8			26.4			27.9			26.1			17.7
Materials		2.9			9.7			4.4			8.1			5.5			3.8
Real Estate		—			0.5			0.9			3.3			0.9			0.6
Telecommunication Services		11.2			2.8			—			4.8			3.5			2.7
Utilities		1.2			0.6			2.8			2.0			2.5			2.5
Sovereign Debt		—			—			—			—			—			16.0
US Treasury Securities		—			—			—			—			—			10.6
Purchased Options		—			—			—			—			—			0.4
Short-Term Investments		2.4			4.6			2.8			0.3			4.8			4.9
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		15.5	%		13.4	%		9.7	%
Asia		18.5			8.3			9.6
Europe		25.0			16.5			8.0
North America		9.8			29.2			57.6
South America		30.3			25.8			6.8
Short-Term Investments		0.9			6.8			8.3
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, 2017

Description	Shares		Fair Value
Lazard Emerging Markets Equity Portfolio
Common Stocks | 97.7%
Argentina | 1.6%
YPF SA Sponsored ADR		9,289,994	$	212,833,763
Brazil | 10.5%
Ambev SA ADR		30,958,640		199,992,814
Banco do Brasil SA		30,244,534		288,998,353
BB Seguridade Participacoes SA		24,962,600		213,994,675
CCR SA		39,136,834		190,098,508
Cia de Saneamento Basico do Estado de Sao Paulo		4,478,000		46,636,683
Cielo SA		36,526,919		257,922,740
Localiza Rent a Car SA		13,888,686		92,317,850
Petrobras Distribuidora SA		18,841,100		97,127,856
Suzano Papel e Celulose SA		397,900		2,241,944
				1,389,331,423
China | 17.0%
AAC Technologies Holdings, Inc.		5,750,000		102,260,887
Baidu, Inc. Sponsored ADR (*)		1,329,139		311,297,645
China Construction Bank Corp., Class H		629,235,220		578,785,823
China Mobile, Ltd. Sponsored ADR		7,315,000		369,700,100
China Shenhua Energy Co., Ltd., Class H		45,609,610		117,986,422
CNOOC, Ltd.		64,517,000		92,752,000
ENN Energy Holdings, Ltd.		15,589,000		110,602,617
Hengan International Group Co., Ltd.		2,798,000		31,056,105
NetEase, Inc. ADR		1,084,064		374,077,964
Weichai Power Co., Ltd., Class H (^)		142,098,288		155,656,904
				2,244,176,467
Egypt | 0.8%
Commercial International Bank Egypt SAE GDR		23,264,559		101,082,275
Hungary | 1.7%
OTP Bank Nyrt.		5,457,797		225,446,697
India | 9.9%
Axis Bank, Ltd.		26,982,778		238,369,326
Bajaj Auto, Ltd.		2,552,965		133,095,609
HCL Technologies, Ltd.		11,352,102		158,394,997
Hero MotoCorp, Ltd.		3,514,953		208,364,456
Punjab National Bank (*)		53,721,628		144,212,151
Tata Consultancy Services, Ltd.		9,819,005		415,499,767
				1,297,936,306

Description	Shares		Fair Value
Indonesia | 5.2%
PT Astra International Tbk		245,485,600	$	150,059,408
PT Bank Mandiri (Persero) Tbk		417,274,342		245,757,564
PT Semen Indonesia (Persero) Tbk		105,061,400		76,667,775
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		6,601,210		212,690,986
				685,175,733
Malaysia | 0.6%
British American Tobacco Malaysia Berhad		8,363,100		82,661,401
Mexico | 3.2%
America Movil SAB de CV, Class L Sponsored ADR		15,125,471		259,401,828
Grupo Mexico SAB de CV, Series B		24,648,547		81,369,978
Kimberly-Clark de Mexico SAB de CV, Series A		46,936,795		82,713,792
				423,485,598
Pakistan | 1.6%
Habib Bank, Ltd.		28,492,480		43,213,343
Oil & Gas Development Co., Ltd.		39,752,949		58,586,391
Pakistan Petroleum, Ltd.		61,230,202		114,091,025
				215,890,759
Philippines | 0.7%
PLDT, Inc. Sponsored ADR		3,193,885		96,072,061
Russia | 9.1%
ALROSA PAO		71,292,511		92,763,748
Gazprom PJSC Sponsored ADR		22,103,721		97,464,236
LUKOIL PJSC Sponsored ADR		4,328,754		247,627,152
Magnit PJSC Sponsored GDR (#), (‡)		904,765		24,745,323
Magnit PJSC Sponsored GDR		1,737,092		47,511,936
Mobile TeleSystems PJSC Sponsored ADR		19,204,443		195,693,274
Sberbank of Russia PJSC		126,912,226		495,942,422
				1,201,748,091
South Africa | 10.5%
Imperial Holdings, Ltd.		8,640,318		182,857,871
Life Healthcare Group Holdings, Ltd.		43,938,547		98,485,700
Nedbank Group, Ltd.		6,039,648		124,999,964
PPC, Ltd. (*), (^)		83,815,165		47,196,829
Sanlam, Ltd.		21,516,897		151,183,614
Shoprite Holdings, Ltd.		12,782,130		228,502,898
Standard Bank Group, Ltd.		9,456,875		149,354,295
The Bidvest Group, Ltd.		10,099,059		177,541,831
Vodacom Group, Ltd.		10,800,859		126,908,791
Woolworths Holdings, Ltd.		17,827,293		94,106,158
				1,381,137,951

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

Annual Report  23

Description	Shares		Fair Value
Lazard Emerging Markets Equity Portfolio (concluded)
South Korea | 14.0%
Coway Co., Ltd.		1,863,551	$	169,785,424
Hanwha Life Insurance Co., Ltd.		16,644,726		107,315,585
Hyundai Mobis Co., Ltd.		822,225		202,121,116
KB Financial Group, Inc.		2,957,243		174,847,542
KT&G Corp.		781,353		84,314,321
Samsung Electronics Co., Ltd.		243,239		577,893,212
Shinhan Financial Group Co., Ltd.		4,660,107		215,080,049
SK Hynix, Inc.		4,378,883		309,187,407
				1,840,544,656
Taiwan | 5.2%
Hon Hai Precision Industry Co., Ltd.		34,882,032		111,115,355
Taiwan Semiconductor Manufacturing Co., Ltd.		74,168,284		569,913,859
				681,029,214
Thailand | 1.3%
Kasikornbank Public Co. Ltd.		11,376,054		83,143,239
The Siam Cement Public Co. Ltd.		5,636,700		84,616,769
				167,760,008

Description	Shares		Fair Value
Turkey | 4.8%
Akbank Turk AS		43,447,498	$	112,898,332
KOC Holding AS		23,704,247		115,586,286
Tupras Turkiye Petrol Rafinerileri AS		2,818,444		90,341,532
Turk Telekomunikasyon AS (*)		50,510,504		85,813,115
Turkcell Iletisim Hizmetleri AS		29,122,471		118,926,537
Turkiye Is Bankasi, C Shares		57,223,312		105,292,313
				628,858,115
Total Common Stocks
(Cost $10,532,956,065)				12,875,170,518
Short-Term Investments | 2.4%
State Street Institutional Treasury
Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $311,664,480)		311,664,480		311,664,480
Total Investments | 100.1%
(Cost $10,844,620,545)			$	13,186,834,998
Liabilities in Excess of Cash and Other Assets | (0.1)%				(13,193,403	)
Net Assets | 100.0%			$	13,173,641,595

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 | 98.6%
Argentina | 1.7%
Grupo Supervielle SA Sponsored ADR	71,000	$	2,081,720
Loma Negra Cia Industrial Argentina SA ADR	80,900		1,863,936
			3,945,656
Brazil | 7.5%
AES Tiete Energia SA	393,100		1,508,068
Azul SA ADR	78,700		1,875,421
Banco do Brasil SA	420,900		4,021,864
Braskem SA A Shares	210,150		2,745,059
CCR SA	415,000		2,015,771
Rumo SA (*)	622,400		2,423,428
Telefonica Brasil SA ADR	189,900		2,816,217
			17,405,828
China | 24.0%
Alibaba Group Holding, Ltd. Sponsored ADR (*)	55,600		9,587,108
Baidu, Inc. Sponsored ADR (*)	10,654		2,495,273
Brilliance China Automotive Holdings, Ltd.	702,000		1,865,101
Industrial & Commercial Bank of China, Ltd., Class H	11,666,633		9,355,677
JD.com, Inc. ADR (*)	73,700		3,052,654
NetEase, Inc. ADR	9,600		3,312,672
New Oriental Education & Technology Group, Inc. Sponsored ADR	34,586		3,251,084
PICC Property & Casualty Co., Ltd., Class H	1,403,180		2,691,704
Ping An Insurance (Group) Co. of China, Ltd., Class H	475,500		4,949,094
Tencent Holdings, Ltd.	284,200		14,691,714
Wuxi Biologics Cayman, Inc.	92,500		518,069
			55,770,150
Colombia | 2.1%
Bancolombia SA Sponsored ADR	47,600		1,887,816
Ecopetrol SA Sponsored ADR	209,200		3,060,596
			4,948,412
Hong Kong | 1.2%
Techtronic Industries Co., Ltd.	422,000		2,750,525
Hungary | 1.3%
MOL Hungarian Oil & Gas PLC	249,566		2,896,217

Description	Shares		Fair Value
India | 9.4%
HDFC Bank, Ltd. ADR	63,569	$	6,463,060
Hindalco Industries, Ltd.	587,770		2,518,241
Hindustan Zinc, Ltd.	529,679		2,554,663
Maruti Suzuki India, Ltd.	23,472		3,572,260
Motherson Sumi Systems, Ltd.	444,117		2,639,613
Tata Motors, Ltd. Sponsored ADR (*)	63,657		2,105,137
UPL, Ltd.	173,653		2,073,577
			21,926,551
Indonesia | 2.2%
PT Bank Mandiri (Persero) Tbk	5,331,300		3,139,918
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR	64,060		2,064,013
			5,203,931
Luxembourg | 2.1%
Tenaris SA ADR	46,400		1,478,304
Ternium SA Sponsored ADR	104,100		3,288,519
			4,766,823
Mexico | 3.1%
Arca Continental SAB de CV	259,945		1,797,041
Gruma SAB de CV, Class B	164,103		2,080,655
Grupo Aeroportuario del Pacifico SAB de CV ADR	14,300		1,469,468
Grupo Financiero Banorte SAB de CV, Class O	334,600		1,834,961
			7,182,125
Peru | 0.9%
Credicorp, Ltd.	10,450		2,167,643
Philippines | 1.8%
BDO Unibank, Inc.	834,491		2,740,349
GT Capital Holdings, Inc.	58,715		1,519,755
			4,260,104
Portugal | 1.0%
Galp Energia SGPS SA	129,284		2,375,090
Russia | 6.7%
LUKOIL PJSC Sponsored ADR (London)	100,842		5,768,685
LUKOIL PJSC Sponsored ADR (United States)	1,717		98,985
Sberbank of Russia PJSC Sponsored ADR (London)	374,190		6,333,510
Sberbank of Russia PJSC Sponsored ADR (United States)	53,682		914,204
Severstal PJSC GDR	150,738		2,310,892
			15,426,276

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 Africa | 5.6%
FirstRand, Ltd.	533,822	$	2,901,141
Mondi PLC	100,927		2,631,309
Naspers, Ltd., N Shares	18,263		5,088,608
The Bidvest Group, Ltd.	139,229		2,447,651
			13,068,709
South Korea | 12.7%
Coway Co., Ltd.	20,666		1,882,849
DB Insurance Co., Ltd.	33,305		2,214,276
Korea Zinc Co., Ltd.	4,164		1,915,692
KT&G Corp.	11,197		1,208,247
Lotte Chemical Corp.	4,702		1,612,716
NCSoft Corp.	5,735		2,395,841
Samsung Electronics Co., Ltd.	5,984		14,216,935
SK Hynix, Inc. (*)	57,234		4,041,220
			29,487,776
Taiwan | 10.3%
Advanced Semiconductor Engineering, Inc. ADR	273,700		1,773,576
Far EasTone Telecommunications Co., Ltd.	814,000		2,010,227
Hon Hai Precision Industry Co., Ltd.	938,500		2,989,555
Largan Precision Co., Ltd.	25,000		3,366,818
Silicon Motion Technology Corp. ADR	40,310		2,134,818
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR	291,449		11,555,953
			23,830,947
Thailand | 1.4%
Bangkok Bank Public Co. Ltd.	212,900		1,430,213
Kasikornbank Public Co. Ltd.	249,100		1,820,577
			3,250,790

Description	Shares		Fair Value
Turkey | 2.0%
Arcelik	206,279	$	1,170,439
KOC Holding AS	251,670		1,227,190
Tofas Turk Otomobil Fabrikasi AS	247,275		2,150,277
			4,547,906
United Arab Emirates | 0.5%
Emaar Properties PJSC	667,719		1,260,365
United Kingdom | 1.1%
Unilever NV NY Shares	46,400		2,613,248
Total Common Stocks
(Cost $171,870,071)			229,085,072
Preferred Stocks | 1.3%
Brazil | 1.3%
Itau Unibanco Holding SA Sponsored ADR (Cost $1,943,924)	228,817		2,974,621
Short-Term Investments | 4.8%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $11,088,660)	11,088,660		11,088,660
Total Investments | 104.7%
(Cost $184,902,655)		$	243,148,353
Liabilities in Excess of Cash and Other Assets | (4.7)%			(10,978,203	)
Net Assets | 100.0%		$	232,170,150

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 | 96.4%
Argentina | 0.9%
YPF SA Sponsored ADR		110,020	$	2,520,558
Brazil | 2.5%
Petrobras Distribuidora SA		447,900		2,308,972
Petroleo Brasileiro SA Sponsored ADR (*)		492,900		4,845,207
				7,154,179
Canada | 1.3%
First Quantum Minerals, Ltd.		252,755		3,540,983
China | 34.4%
AAC Technologies Holdings, Inc.		111,140		1,976,570
Agricultural Bank of China, Ltd., Class H		6,526,500		3,037,196
Alibaba Group Holding, Ltd. Sponsored ADR (*)		54,610		9,416,402
Anhui Conch Cement Co., Ltd., Class H		1,037,500		4,879,220
Baidu, Inc. Sponsored ADR (*)		36,617		8,576,068
Beijing Enterprises Water Group, Ltd.		5,406,000		4,182,823
Brilliance China Automotive Holdings, Ltd.		2,295,827		6,099,642
China Medical System Holdings, Ltd.		2,571,000		5,991,985
China Merchants Bank Co., Ltd., Class H		1,161,211		4,620,918
China State Construction International Holdings, Ltd.		4,568,160		6,372,938
Kingsoft Corp., Ltd.		1,150,000		3,814,755
Li Ning Co., Ltd. (*)		3,832,500		3,101,833
Minth Group, Ltd.		715,020		4,302,789
New Oriental Education & Technology Group, Inc. Sponsored ADR		49,544		4,657,136
Ping An Insurance (Group) Co. of China, Ltd., Class H		600,500		6,250,118
Qudian, Inc. Sponsored ADR		68,900		864,006
Tencent Holdings, Ltd.		188,600		9,749,674
Zhuzhou CRRC Times Electric Co., Ltd., Class H		578,600		3,758,434
ZTO Express Cayman, Inc. ADR (*)		322,085		5,105,047
				96,757,554
Colombia | 0.9%
Bancolombia SA Sponsored ADR		65,247		2,587,696

Description	Shares		Fair Value
Hong Kong | 4.1%
China Gas Holdings, Ltd.	1,338,000	$	3,690,987
SMI Holdings Group, Ltd.	2,339,200		1,227,758
Techtronic Industries Co., Ltd.	1,002,000		6,530,868
			11,449,613
India | 10.6%
Aurobindo Pharma, Ltd.	183,252		1,974,551
HDFC Bank, Ltd. ADR	50,885		5,173,478
ICICI Bank, Ltd. Sponsored ADR	562,501		5,473,135
Petronet LNG, Ltd.	764,758		3,048,351
Reliance Industries, Ltd.	316,384		4,564,329
Shriram Transport Finance Co., Ltd.	260,120		6,020,345
Tata Motors, Ltd. Sponsored ADR (*)	104,485		3,455,319
			29,709,508
Indonesia | 2.8%
PT Bank Rakyat Indonesia (Persero)Tbk	29,571,000		7,916,921
Mexico | 0.9%
Grupo Financiero Banorte SAB de CV, Class O	478,757		2,625,524
Peru | 1.9%
Credicorp, Ltd.	25,555		5,300,874
Philippines | 1.4%
BDO Unibank, Inc.	1,240,605		4,073,969
Portugal | 2.0%
Galp Energia SGPS SA	301,173		5,532,881
Russia | 7.3%
Mail.Ru Group, Ltd. GDR (*)	159,142		4,583,166
Novatek OAO Sponsored GDR (London)	6,111		734,309
Novatek OAO Sponsored GDR (United States)	18,525		2,226,705
Sberbank of Russia PJSC	1,790,717		6,998,169
X5 Retail Group NV GDR (*)	82,140		3,100,042
Yandex NV Class A (*)	84,335		2,761,971
			20,404,362
South Africa | 3.3%
Capitec Bank Holdings, Ltd.	47,511		4,206,413
Petra Diamonds, Ltd. (*)	1,030,891		1,088,297
Standard Bank Group, Ltd.	256,422		4,049,723
			9,344,433

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

Annual Report  27

Description	Shares		Fair Value
Lazard Developing Markets Equity Portfolio (concluded)
South Korea | 7.9%
Doosan Bobcat, Inc. (*)	141,482	$	4,732,050
Korea Aerospace Industries, Ltd.	65,383		2,893,961
NCSoft Corp.	6,407		2,676,574
Partron Co., Ltd.	244,710		2,155,570
Samsung Electronics Co., Ltd.	3,256		7,735,685
SPC Samlip Co., Ltd.	13,039		1,908,130
			22,101,970
Taiwan | 10.0%
Advanced Semiconductor Engineering, Inc.	3,185,578		4,089,386
Catcher Technology Co., Ltd.	192,670		2,114,455
Hiwin Technologies Corp.	432,407		4,657,975
Hota Industrial Manufacturing Co., Ltd.	545,766		2,686,986
Largan Precision Co., Ltd.	18,860		2,539,928
MediaTek, Inc.	357,000		3,519,289
Silicon Motion Technology Corp. ADR	70,210		3,718,322
Taiwan Semiconductor Manufacturing Co., Ltd.	640,000		4,917,801
			28,244,142
Turkey | 3.2%
Aselsan Elektronik Sanayi Ve Ticaret AS	239,429		2,010,611
Emlak Konut Gayrimenkul Yatirim Ortakligi AS REIT (*)	3,414,769		2,531,298
Turkiye Garanti Bankasi AS	1,557,677		4,412,223
			8,954,132

Description	Shares		Fair Value
United Kingdom | 1.0%
KAZ Minerals PLC (*)		240,086	$	2,877,720
Total Common Stocks (Cost $201,487,446)				271,097,019
Preferred Stocks | 1.0%
Brazil | 1.0%
Banco Bradesco SA ADR (Cost $1,867,354)		263,579		2,699,049
Short-Term Investments | 2.8%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $7,940,103)		7,940,103		7,940,103
Total Investments | 100.2%
(Cost $211,294,903)			$	281,736,171
Liabilities in Excess of Cash and Other Assets | (0.2)%				(436,857	)
Net Assets | 100.0%			$	281,299,314

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 | 99.0%
Brazil | 3.7%
Banco do Brasil SA		500	$	4,778
BB Seguridade Participacoes SA		3,700		31,719
Cia de Saneamento de Minas Gerais-COPASA		700		9,122
EcoRodovias Infraestrutura e Logistica SA		2,000		7,386
Fibria Celulose SA		600		8,821
Guararapes Confeccoes SA		200		9,004
M Dias Branco SA		700		10,988
Magazine Luiza SA		400		9,641
Petroleo Brasileiro SA (Preference Shares) (*)		6,000		29,346
Qualicorp SA		800		7,465
Vale SA		3,309		40,332
				168,602
Chile | 0.7%
Empresa Nacional de Electricidad SA
Sponsored ADR		809		21,770
Enel Chile SA		1,452		8,247
				30,017
China | 26.6%
AAC Technologies Holdings, Inc.		500		8,892
Agile Group Holdings, Ltd.		6,000		9,105
Agricultural Bank of China, Ltd., Class H		13,000		6,050
Air China, Ltd.		8,000		9,688
Alibaba Group Holding, Ltd. Sponsored ADR (*)		931		160,532
Anhui Conch Cement Co., Ltd., Class H		3,000		14,109
Autohome, Inc. ADR (*)		86		5,562
Baidu, Inc. Sponsored ADR (*)		166		38,879
Bank of China, Ltd., Class H		69,000		33,859
Beijing Capital International Airport Co., Ltd., Class H		10,000		15,042
China Construction Bank Corp., Class H		102,000		93,822
China Huarong Asset Management Co., Ltd.		26,000		12,245
China Mobile, Ltd.		3,500		35,428
China Overseas Land & Investment, Ltd.		4,000		12,874
China Petroleum & Chemical Corp., Class H		36,000		26,378
China Resources Gas Group, Ltd.		2,000		7,226
China Shenhua Energy Co., Ltd., Class H		6,500		16,815
China Telecom Corp., Ltd. Class H		14,000		6,661
CIFI Holdings Group Co., Ltd.		20,000		12,018
CNOOC, Ltd.		26,000		37,378

Description	Shares		Fair Value
Country Garden Holdings Co., Ltd.		22,000	$	41,802
CSPC Pharmaceutical Group, Ltd.		10,000		20,190
Dali Foods Group Co., Ltd.		10,500		9,553
Dongfeng Motor Group Co., Ltd., Class H		12,000		14,526
Geely Automobile Holdings, Ltd.		12,000		41,175
Guangzhou Automobile Group Co., Ltd. Class H		8,000		18,896
Haitian International Holdings, Ltd.		3,000		9,022
Industrial & Commercial Bank of China, Ltd., Class H		86,000		68,965
JD.com, Inc. ADR (*)		367		15,201
Jiangsu Expressway Co., Ltd., Class H		6,000		9,137
Longfor Properties Co., Ltd.		6,500		16,287
Momo, Inc. Sponsored ADR (*)		182		4,455
New Oriental Education & Technology Group, Inc. Sponsored ADR		120		11,280
PetroChina Co., Ltd., Class H		20,000		13,957
PICC Property & Casualty Co., Ltd., Class H		4,000		7,673
Ping An Insurance (Group) Co. of China, Ltd., Class H		2,000		20,816
Sunny Optical Technology Group Co., Ltd.		2,000		25,335
Tencent Holdings, Ltd.		4,200		217,119
Tianneng Power International, Ltd.		10,000		10,375
Tingyi (Cayman Islands) Holding Corp.		12,000		23,325
TravelSky Technology, Ltd. Class H		5,000		14,984
Weibo Corp. Sponsored ADR (*)		113		11,691
YY, Inc. ADR (*)		100		11,306
Zhongsheng Group Holdings, Ltd.		5,000		11,363
				1,210,996
Colombia | 0.9%
Bancolombia SA Sponsored ADR		657		26,057
Ecopetrol SA Sponsored ADR		1,165		17,044
				43,101
Egypt | 0.5%
Commercial International Bank Egypt SAE ADR		5,456		23,734
Greece | 0.4%
JUMBO SA		450		8,031
Motor Oil (Hellas) Corinth Refineries SA		418		9,419
				17,450
Hong Kong | 0.9%
Kingboard Chemical Holdings, Ltd.		1,500		8,094
Lee & Man Paper Manufacturing, Ltd.		9,000		10,642
Nine Dragons Paper Holdings, Ltd.		7,000		11,214
Sino Biopharmaceutical, Ltd.		7,000		12,387
				42,337

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)
Hungary | 1.7%
Magyar Telekom Telecommunications PLC		8,117	$	14,351
MOL Hungarian Oil & Gas PLC		3,808		44,192
Richter Gedeon Nyrt.		667		17,463
				76,006
India | 6.9%
Axis Bank, Ltd. GDR		192		8,386
Dr Reddy’s Laboratories, Ltd. ADR		254		9,540
HDFC Bank, Ltd. ADR		503		51,140
ICICI Bank, Ltd. Sponsored ADR		880		8,563
Infosys, Ltd. Sponsored ADR		2,822		45,773
Reliance Industries, Ltd. Sponsored GDR (#)		979		27,928
State Bank of India GDR		442		21,514
Tata Motors, Ltd. Sponsored ADR (*)		719		23,777
Tata Steel, Ltd. GDR		1,811		20,518
Vedanta, Ltd. ADR		893		18,601
Wipro, Ltd. ADR		6,065		33,176
WNS Holdings, Ltd. ADR (*)		1,071		42,979
				311,895
Indonesia | 3.7%
Kalbe Farma Tbk PT		63,800		7,950
PT Adaro Energy Tbk		45,200		6,177
PT Bank Central Asia Tbk		10,200		16,442
PT Bank Negara Indonesia (Persero) Tbk		28,100		20,479
PT Bank Rakyat Indonesia (Persero) Tbk		130,500		34,938
PT Gudang Garam Tbk		2,500		15,442
PT Hanjaya Mandala Sampoerna Tbk		22,600		7,883
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		1,596		51,423
PT United Tractors Tbk		3,400		8,861
				169,595
Luxembourg | 0.6%
Ternium SA Sponsored ADR		909		28,715
Malaysia | 3.6%
AirAsia Berhad		12,100		10,025
Astro Malaysia Holdings Berhad		24,400		16,002
Hartalega Holdings Berhad		3,600		9,491
Hong Leong Bank Berhad		4,300		18,103
Inari Amertron Berhad		16,900		14,197
IOI Properties Group Berhad		9,800		4,479
Nestle Malaysia Berhad		1,200		30,546
Petronas Chemicals Group Berhad		12,600		23,944
Press Metal Aluminium Holdings Berhad		13,480		17,922

Description	Shares		Fair Value
SKP Resources Berhad		18,500	$	10,422
Sunway Construction Group Berhad		13,800		8,550
				163,681
Mexico | 1.7%
Alfa SAB de CV, Series A		4,500		4,948
America Movil SAB de CV, Class L Sponsored ADR		388		6,654
Cemex SAB de CV Sponsored ADR (*)		1,390		10,425
Grupo Carso SAB de CV, Series A1		1,500		4,953
Grupo Financiero Banorte SAB de CV, Class O		2,800		15,355
Wal-Mart de Mexico SAB de CV		13,400		32,842
				75,177
Philippines | 2.2%
Ayala Land, Inc.		35,100		31,287
Cebu Air, Inc.		7,180		14,383
DMCI Holdings, Inc.		61,300		17,674
JG Summit Holdings, Inc.		5,570		8,036
Megaworld Corp.		74,500		7,702
Metro Pacific Investments Corp.		44,400		6,101
Semirara Mining & Power Corp.		19,160		14,046
				99,229
Poland | 2.6%
Ciech SA (*)		279		4,606
Dino Polska SA		546		12,347
Enea SA		2,871		9,452
Grupa Lotos SA		551		9,131
Jastrzebska Spolka Weglowa SA (*)		283		7,797
PGE Polska Grupa Energetyczna SA (*)		4,459		15,433
Polski Koncern Naftowy ORLEN SA		448		13,606
Polskie Gornictwo Naftowe i Gazownictwo SA		13,395		24,162
Powszechny Zaklad Ubezpieczen SA		1,194		14,433
Tauron Polska Energia SA (*)		6,287		5,499
				116,466
Russia | 2.5%
Gazprom PJSC Sponsored ADR		2,566		11,314
LUKOIL PJSC Sponsored ADR		474		27,115
MMC Norilsk Nickel PJSC ADR		484		9,032
Novolipetsk Steel PJSC GDR		353		9,003
Sberbank of Russia PJSC Sponsored ADR		3,331		56,380
				112,844
Singapore | 0.2%
China Yuchai International, Ltd.		416		9,984

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)
South Africa | 5.0%
AVI, Ltd.		2,117	$	18,878
Barclays Africa Group, Ltd.		725		10,663
Clicks Group, Ltd.		761		11,139
Coronation Fund Managers, Ltd.		1,426		8,503
FirstRand, Ltd.		1,464		7,956
Gold Fields, Ltd. Sponsored ADR		1,958		8,419
Mondi, Ltd.		593		15,278
Mr. Price Group, Ltd.		560		11,075
MTN Group, Ltd.		1,394		15,409
Naspers, Ltd., N Shares		279		77,738
Sappi, Ltd.		1,663		12,028
Standard Bank Group, Ltd.		1,142		18,036
Tiger Brands, Ltd.		297		11,036
				226,158
South Korea | 17.4%
CJ Corp.		45		7,634
Daewoo Engineering & Construction Co., Ltd. (*)		1,089		6,022
DB Insurance Co., Ltd.		328		21,807
Hana Financial Group, Inc.		479		22,288
Hanwha General Insurance Co., Ltd.		1,852		14,074
Hyosung Corp.		56		7,303
Hyundai Marine & Fire Insurance Co., Ltd.		865		37,933
Industrial Bank of Korea (*)		738		11,317
KB Financial Group, Inc. (*)		265		15,668
KB Financial Group, Inc. ADR (*)		1,028		60,148
Korea Electric Power Corp. Sponsored ADR (*)		756		13,389
Korea PetroChemical Ind Co., Ltd.		34		8,378
Korea United Pharm, Inc.		333		9,461
KT&G Corp. GDR (#), (*)		393		21,200
LG Chem, Ltd. (*)		25		9,447
LG Corp.		122		10,364
LG Electronics, Inc. (*)		382		37,797
LG Household & Health Care, Ltd.		17		18,847
LG Uplus Corp.		1,433		18,738
Lotte Chemical Corp.		34		11,662
LOTTE Himart Co., Ltd.		128		8,235
Meritz Fire & Marine Insurance Co., Ltd.		997		21,898
NAVER Corp.		11		8,931
NH Investment & Securities Co., Ltd.		528		6,845
POSCO		30		9,315
Samsung Electronics Co., Ltd. GDR		207		247,719
Shinhan Financial Group Co., Ltd. ADR (*)		537		24,917
SK Hynix, Inc. (*)		781		55,145

Description	Shares		Fair Value
SK Telecom Co., Ltd. Sponsored ADR		819	$	22,858
SKCKOLONPI, Inc. (*)		249		10,958
Woori Bank		781		11,484
				791,782
Taiwan | 12.2%
Chailease Holding Co., Ltd.		5,000		14,534
China Petrochemical Development Corp. (*)		18,000		9,318
Compeq Manufacturing Co., Ltd.		18,000		23,190
Eva Airways Corp.		17,000		9,047
Feng TAY Enterprise Co., Ltd.		3,000		13,649
Formosa Chemicals & Fibre Corp.		4,000		13,835
Fubon Financial Holding Co., Ltd.		27,000		45,936
General Interface Solution Holding, Ltd.		1,000		6,674
HannStar Display Corp.		24,000		8,077
Hiwin Technologies Corp.		2,000		21,544
Hon Hai Precision Industry Co., Ltd. GDR		2,152		13,549
Innolux Corp.		76,000		31,602
Kung Long Batteries Industrial Co., Ltd.		2,000		9,635
President Chain Store Corp.		3,000		28,589
Sunny Friend Environmental Technology Co., Ltd.		2,000		17,159
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		5,633		223,349
Walsin Lihwa Corp.		25,000		14,763
Winbond Electronics Corp.		9,000		7,076
Yuanta Financial Holding Co., Ltd.		96,000		44,472
				555,998
Thailand | 3.1%
Advanced Info Service Public Co. Ltd. (‡)		4,700		27,545
Bangkok Bank Public Co. Ltd. NVDR		1,900		11,775
Beauty Community Public Co. Ltd. NVDR		32,524		20,839
Central Pattana Public Co. Ltd. NVDR		6,400		16,717
GFPT Public Co. Ltd. (‡)		14,000		6,057
Hana Microelectronics Public Co. Ltd. NVDR		7,900		10,770
Indorama Ventures Public Co. Ltd. NVDR		6,300		10,296
Intouch Holdings Public Co. Ltd. NVDR		4,500		7,758
PTT Global Chemical Public Co. Ltd. (‡)		3,700		9,650
PTT Public Co. Ltd. (‡)		600		8,101
Tisco Financial Group Public Co. Ltd. NVDR		4,100		11,131
				140,639
Turkey | 1.5%
BIM Birlesik Magazalar AS		885		18,233
Ford Otomotiv Sanayi AS		581		9,240
Turk Telekomunikasyon AS ADR (*)		3,902		13,212
Turkiye Garanti Bankasi AS ADR		7,348		20,795
Turkiye Vakiflar Bankasi TAO, Class D		4,580		8,187
				69,667

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)
United States | 0.4%
Yum China Holdings, Inc.		409	$	16,368
Total Common Stocks (Cost $3,394,055)				4,500,441
Preferred Stocks | 1.4%
Brazil | 1.4%
Banco Bradesco SA ADR		3,339		34,191
Itau Unibanco Holding SA Sponsored ADR		2,415		31,395
Total Preferred Stocks (Cost $48,893)				65,586

Description	Shares		Fair Value
Short-Term Investments | 0.3%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $13,391)		13,391	$	13,391
Total Investments | 100.7% (Cost $3,456,339)			$	4,579,418
Liabilities in Excess of Cash and Other Assets | (0.7)%				(32,427	)
Net Assets | 100.0%			$	4,546,991

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 | 95.2%
Argentina | 2.1%
Transportadora de Gas del Sur SA (*)		93,775	$	2,084,618
YPF SA Sponsored ADR		274,767		6,294,912
				8,379,530
Brazil | 7.9%
Ambev SA ADR		369,975		2,390,038
Banco do Brasil SA		353,057		3,373,598
CCR SA		534,800		2,597,673
Cia de Saneamento do Parana (*)		137,900		2,490,190
Cielo SA Sponsored ADR		441,150		3,140,988
Iochpe Maxion SA		384,245		2,647,582
JSL SA (*)		143,400		356,426
Localiza Rent a Car SA		463,005		3,077,586
Movida Participacoes SA		903,100		1,921,076
Petrobras Distribuidora SA		796,600		4,106,557
Petroleo Brasileiro SA Sponsored ADR (*)		531,700		5,226,611
				31,328,325
Canada | 1.1%
First Quantum Minerals, Ltd.		315,915		4,425,826
Chile | 0.1%
Geopark, Ltd. (*)		39,150		387,976
China | 28.1%
Alibaba Group Holding, Ltd.
Sponsored ADR (*)		55,531		9,575,210
Anhui Conch Cement Co., Ltd., Class H		1,250,000		5,878,578
Baidu, Inc. Sponsored ADR (*)		50,104		11,734,858
Beijing Enterprises Water Group, Ltd.		5,256,000		4,066,763
Brilliance China Automotive Holdings, Ltd.		1,962,193		5,213,230
China Construction Bank Corp., Class H		6,724,281		6,185,157
China Medical System Holdings, Ltd.		2,816,000		6,562,984
China Mobile, Ltd. Sponsored ADR		74,716		3,776,147
China Shenhua Energy Co., Ltd., Class H		1,040,000		2,690,351
China State Construction International Holdings, Ltd.		4,972,249		6,936,673
CNOOC, Ltd.		1,181,800		1,698,999
Fufeng Group, Ltd.		3,906,000		2,549,424
JNBY Design, Ltd.		274,500		333,699
Kingsoft Corp., Ltd.		1,533,000		5,085,235
Minth Group, Ltd.		762,000		4,585,501
NetEase, Inc. ADR		20,405		7,041,153

Description	Shares		Fair Value
New Oriental Education & Technology Group, Inc. Sponsored ADR		78,012	$	7,333,128
Noah Holdings, Ltd. Sponsored ADR (*)		47,035		2,176,780
Ping An Insurance (Group) Co. of China, Ltd., Class H		706,500		7,353,386
RISE Education Cayman, Ltd. ADR		180,900		2,675,511
Tianyun International Holdings, Ltd.		2,798,000		457,915
Yestar Healthcare Holdings Co., Ltd.		4,312,500		1,832,510
ZTO Express Cayman, Inc. ADR (*)		346,900		5,498,365
				111,241,557
Colombia | 0.7%
Bancolombia SA Sponsored ADR		64,792		2,569,651
Egypt | 0.5%
Commercial International Bank Egypt SAE GDR		364,105		1,582,001
Credit Agricole Egypt SAE		154,105		372,695
				1,954,696
Georgia | 0.6%
BGEO Group PLC		43,148		2,067,786
TBC Bank Group PLC		19,245		453,305
				2,521,091
Hong Kong | 3.9%
China Gas Holdings, Ltd.		1,214,000		3,348,923
Man Wah Holdings, Ltd.		2,129,305		2,016,343
NewOcean Energy Holdings, Ltd. (*)		826,000		216,148
Techtronic Industries Co., Ltd.		1,116,500		7,277,159
TK Group Holdings, Ltd.		636,000		396,889
Tongda Group Holdings, Ltd.		8,389,114		2,144,807
				15,400,269
Hungary | 0.6%
OTP Bank Nyrt.		61,918		2,557,664
India | 9.2%
Axis Bank, Ltd.		684,839		6,049,956
Bajaj Auto, Ltd.		48,834		2,545,899
Dewan Housing Finance Corp., Ltd.		246,957		2,247,597
HCL Technologies, Ltd.		162,008		2,260,485
ICICI Bank, Ltd. Sponsored ADR		769,883		7,490,962
Kiri Industries, Ltd. (*)		48,822		384,060
Mirza International, Ltd.		109,825		273,033
Reliance Industries, Ltd.		369,103		5,324,882
Shriram Transport Finance Co., Ltd.		91,894		2,126,840
Tata Consultancy Services, Ltd.		80,543		3,408,247
Tata Motors, Ltd. Sponsored ADR (*)		108,468		3,587,037
The South Indian Bank, Ltd.		632,716		307,204
Uflex, Ltd.		56,983		433,665
				36,439,867

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)
Indonesia | 4.1%
PT Bank Mandiri (Persero) Tbk		6,267,500	$	3,691,302
PT Bank Pembangunan Daerah Jawa Timur Tbk		3,607,800		188,665
PT Bank Rakyat Indonesia (Persero) Tbk		34,019,590		9,107,924
PT Bekasi Fajar Industrial Estate Tbk		19,239,500		354,795
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		83,330		2,684,893
				16,027,579
Kenya | 0.1%
KCB Group, Ltd.		1,005,700		415,985
Kuwait | 0.1%
Human Soft Holding Co. KSC		19,568		242,459
Mexico | 2.3%
Alpek SAB de CV		2,158,600		2,574,402
America Movil SAB de CV, Class L
Sponsored ADR		97,243		1,667,717
Credito Real SAB de CV		169,900		212,218
Grupo Mexico SAB de CV, Series B		330,101		1,089,732
Kimberly-Clark de Mexico SAB de CV, Series A		919,700		1,620,730
Nemak SAB de CV		2,877,100		2,083,657
				9,248,456
Morocco | 0.1%
Residences Dar Saada		15,936		260,576
Oman | 0.1%
Ooredoo		266,960		360,285
Pakistan | 0.2%
Bank Alfalah, Ltd. (*)		782,000		301,376
Kohinoor Textile Mills, Ltd.		271,890		163,282
Pak Elektron, Ltd.		364,900		157,020
				621,678
Peru | 1.0%
Credicorp, Ltd.		18,192		3,773,567
Philippines | 0.2%
PLDT, Inc. Sponsored ADR		28,102		845,308
Russia | 7.5%
Gazprom PJSC Sponsored ADR		251,605		1,109,428
LUKOIL PJSC Sponsored ADR (United States)		47,073		2,713,758

Description	Shares		Fair Value
Mail.Ru Group, Ltd. GDR (*)		171,144	$	4,928,815
Mobile TeleSystems PJSC Sponsored ADR		246,100		2,507,759
Sberbank of Russia PJSC		1,836,185		7,175,859
Sberbank of Russia PJSC Sponsored ADR		385,847		6,570,974
X5 Retail Group NV GDR (London) (*)		107,553		4,059,153
X5 Retail Group NV GDR (United States) (*)		15,362		580,223
				29,645,969
Singapore | 0.6%
BOC Aviation, Ltd.		473,900		2,523,538
South Africa | 1.4%
Petra Diamonds, Ltd. (*)		2,520,634		2,660,997
Standard Bank Group, Ltd.		191,359		3,022,171
				5,683,168
South Korea | 9.7%
Douzone Bizon Co., Ltd.		53,470		1,660,598
Eugene Technology Co., Ltd.		106,757		2,093,804
Hanwha Life Insurance Co., Ltd.		158,433		1,021,484
HS Industries Co., Ltd.		239,000		2,286,985
Hyundai Mobis Co., Ltd.		13,093		3,218,549
Innocean Worldwide, Inc.		31,685		2,165,967
KT&G Corp.		12,131		1,309,033
Nice Information &Telecommunication, Inc.		16,851		359,585
Samjin Pharmaceutical Co., Ltd.		10,754		359,847
Samsung Electronics Co., Ltd.		5,768		13,703,757
Shinhan Financial Group Co., Ltd.		71,529		3,301,311
SK Hynix, Inc.		68,183		4,814,316
Viatron Technologies, Inc.		100,004		1,928,425
				38,223,661
Taiwan | 8.4%
Catcher Technology Co., Ltd.		261,000		2,864,342
Egis Technology, Inc. (*)		30,000		228,415
Elite Material Co., Ltd.		594,000		2,024,731
Gourmet Master Co., Ltd.		140,600		2,051,969
Hon Hai Precision Industry Co., Ltd.		550,671		1,754,141
Largan Precision Co., Ltd.		25,614		3,449,507
MediaTek, Inc.		241,000		2,375,767
Primax Electronics, Ltd.		969,000		2,565,928
Realtek Semiconductor Corp.		608,000		2,222,649
Silicon Motion Technology Corp. ADR		95,681		5,067,266
Sunny Friend Environmental
Technology Co., Ltd.		226,000		1,938,969
Taiwan Semiconductor
Manufacturing Co., Ltd.		863,720		6,636,880
				33,180,564

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)
Turkey | 4.1%
Emlak Konut Gayrimenkul Yatirim Ortakligi AS REIT (*)		3,852,183	$	2,855,544
KOC Holding AS ADR		122,467		2,991,991
Soda Sanayii AS		1,303,949		1,733,432
Turk Tuborg Bira ve Malt Sanayii AS		84,632		225,528
Turkcell Iletisim Hizmetleri AS ADR		185,575		1,892,865
Turkiye Garanti Bankasi AS		1,731,831		4,905,526
Turkiye Is Bankasi, C Shares		925,827		1,703,545
				16,308,431
Ukraine | 0.1%
Kernel Holding SA (*)		25,389		346,567
United Arab Emirates | 0.4%
ADES International Holding, Ltd.		113,223		1,520,918
Total Common Stocks (Cost $307,786,050)				376,435,161

Description	Shares		Fair Value
Warrants | 0.0%
Brazil | 0.0%
Iochpe Maxion SA,
Expires 06/03/19 (Cost $0)		15,354	$	48,093
Short-Term Investments | 4.8%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $18,910,881)		18,910,881		18,910,881
Total Investments | 100.0% (Cost $326,696,931)			$	395,394,135
Liabilities in Excess of Cash and Other Assets | 0.0%				(174,619	)
Net Assets | 100.0%			$	395,219,516

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 | 64.2%
Argentina | 1.4%
Transportadora de Gas del Sur SA (*)		35,770	$	795,167
YPF SA Sponsored ADR		118,656		2,718,409
				3,513,576
Brazil | 5.3%
Ambev SA ADR		155,500		1,004,530
Banco do Brasil SA		148,445		1,418,450
CCR SA		226,100		1,098,231
Cia de Saneamento do Parana (*)		52,620		950,209
Cielo SA Sponsored ADR		185,343		1,319,642
Iochpe Maxion SA		146,649		1,010,463
JSL SA (*)		69,000		171,502
Localiza Rent a Car SA		196,452		1,305,813
Movida Participacoes SA		344,600		733,033
Petrobras Distribuidora SA		350,400		1,806,349
Petroleo Brasileiro SA Sponsored ADR (*)		233,200		2,292,356
				13,110,578
Canada | 0.8%
First Quantum Minerals, Ltd.		137,969		1,932,883
Chile | 0.1%
Geopark, Ltd. (*)		18,755		185,862
China | 19.3%
Alibaba Group Holding, Ltd. Sponsored ADR (*)		24,255		4,182,290
Anhui Conch Cement Co., Ltd., Class H		548,000		2,577,169
Baidu, Inc. Sponsored ADR (*)		21,761		5,096,644
Beijing Enterprises Water Group, Ltd.		2,304,000		1,782,691
Brilliance China Automotive Holdings, Ltd.		857,313		2,277,742
China Construction Bank Corp., Class H		2,835,065		2,607,762
China Medical System Holdings, Ltd.		1,235,000		2,878,297
China Mobile, Ltd. Sponsored ADR		31,738		1,604,038
China Shenhua Energy Co., Ltd., Class H		438,986		1,135,602
China State Construction International Holdings, Ltd.		2,180,068		3,041,364
CNOOC, Ltd.		498,000		715,943
Fufeng Group, Ltd.		1,488,000		971,209
JNBY Design, Ltd.		132,000		160,467
Kingsoft Corp., Ltd.		674,000		2,235,778
Minth Group, Ltd.		332,000		1,997,882
NetEase, Inc. ADR		8,565		2,955,525
New Oriental Education & Technology Group, Inc. Sponsored ADR		34,243		3,218,842

Description	Shares		Fair Value
Noah Holdings, Ltd. Sponsored ADR (*)		17,945	$	830,495
Ping An Insurance (Group) Co. of China, Ltd., Class H		310,900		3,235,906
RISE Education Cayman, Ltd. ADR		69,000		1,020,510
Tianyun International Holdings, Ltd.		1,346,000		220,284
Yestar Healthcare Holdings Co., Ltd.		1,642,500		697,947
ZTO Express Cayman, Inc. ADR (*)		152,100		2,410,785
				47,855,172
Colombia | 0.5%
Bancolombia SA Sponsored ADR		28,280		1,121,585
Egypt | 0.3%
Commercial International Bank Egypt SAE GDR		153,168		665,500
Credit Agricole Egypt SAE		74,080		179,159
				844,659
Georgia | 0.4%
BGEO Group PLC		16,464		789,006
TBC Bank Group PLC		9,404		221,506
				1,010,512
Hong Kong | 2.6%
China Gas Holdings, Ltd.		532,000		1,467,568
Man Wah Holdings, Ltd.		811,760		768,695
NewOcean Energy Holdings, Ltd. (*)		398,000		104,149
Techtronic Industries Co., Ltd.		489,500		3,190,479
TK Group Holdings, Ltd.		306,000		190,956
Tongda Group Holdings, Ltd.		3,200,049		818,142
				6,539,989
Hungary | 0.4%
OTP Bank Nyrt.		26,498		1,094,560
India | 6.2%
Axis Bank, Ltd.		288,592		2,549,459
Bajaj Auto, Ltd.		20,527		1,070,149
Dewan Housing Finance Corp., Ltd.		94,229		857,594
HCL Technologies, Ltd.		68,132		950,641
ICICI Bank, Ltd. Sponsored ADR		337,462		3,283,505
Kiri Industries, Ltd. (*)		23,498		184,848
Mirza International, Ltd.		52,811		131,292
Reliance Industries, Ltd.		161,876		2,335,312
Shriram Transport Finance Co., Ltd.		35,063		811,515
Tata Consultancy Services, Ltd.		33,628		1,422,998
Tata Motors, Ltd. Sponsored ADR (*)		47,346		1,565,732
The South Indian Bank, Ltd.		303,931		147,569
Uflex, Ltd.		27,401		208,533
				15,519,147

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)
Indonesia | 2.8%
PT Bank Mandiri (Persero) Tbk		2,644,400	$	1,557,444
PT Bank Pembangunan Daerah Jawa Timur Tbk		1,733,800		90,667
PT Bank Rakyat Indonesia (Persero) Tbk		14,855,500		3,977,201
PT Bekasi Fajar Industrial Estate Tbk		9,246,400		170,513
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		35,184		1,133,628
				6,929,453
Kenya | 0.1%
KCB Group, Ltd.		483,500		199,989
Kuwait | 0.0%
Human Soft Holding Co. KSC		9,409		116,583
Mexico | 1.5%
Alpek SAB de CV		823,700		982,366
America Movil SAB de CV, Class L Sponsored ADR		41,013		703,373
Credito Real SAB de CV		81,700		102,050
Grupo Mexico SAB de CV, Series B		139,809		461,538
Kimberly-Clark de Mexico SAB de CV, Series A		390,535		688,215
Nemak SAB de CV		1,097,800		795,050
				3,732,592
Morocco | 0.1%
Residences Dar Saada		7,658		125,219
Oman | 0.1%
Ooredoo		128,359		173,231
Pakistan | 0.1%
Bank Alfalah, Ltd. (*)		376,000		144,907
Kohinoor Textile Mills, Ltd.		130,380		78,299
Pak Elektron, Ltd.		175,500		75,520
				298,726
Peru | 0.7%
Credicorp, Ltd.		7,913		1,641,394
Philippines | 0.1%
PLDT, Inc. Sponsored ADR		11,840		356,147
Russia | 5.1%
Gazprom PJSC Sponsored ADR		106,727		470,602
LUKOIL PJSC Sponsored ADR		19,758		1,139,049

Description	Shares		Fair Value
Mail.Ru Group, Ltd. GDR (*)		75,058	$	2,161,612
Mobile TeleSystems PJSC Sponsored ADR		103,610		1,055,786
Sberbank of Russia PJSC		801,829		3,133,569
Sberbank of Russia PJSC Sponsored ADR (London)		3,482		58,936
Sberbank of Russia PJSC Sponsored ADR (United States)		160,430		2,732,123
X5 Retail Group NV GDR (*)		53,884		2,033,633
				12,785,310
Singapore | 0.4%
BOC Aviation, Ltd.		180,800		962,768
South Africa | 0.9%
Petra Diamonds, Ltd. (*)		961,787		1,015,345
Standard Bank Group, Ltd.		80,836		1,276,659
				2,292,004
South Korea | 6.4%
Douzone Bizon Co., Ltd.		20,400		633,556
Eugene Technology Co., Ltd.		40,735		798,928
Hanwha Life Insurance Co., Ltd.		64,650		416,826
HS Industries Co., Ltd.		91,092		871,657
Hyundai Mobis Co., Ltd.		5,560		1,366,771
Innocean Worldwide, Inc.		12,090		826,465
KT&G Corp.		5,156		556,374
Nice Information &Telecommunication, Inc.		8,109		173,039
Samjin Pharmaceutical Co., Ltd.		5,176		173,198
Samsung Electronics Co., Ltd.		2,490		5,915,803
Shinhan Financial Group Co., Ltd. (*)		30,193		1,393,511
SK Hynix, Inc. (*)		28,776		2,031,837
Viatron Technologies, Inc.		38,156		735,780
				15,893,745
Taiwan | 5.5%
Catcher Technology Co., Ltd.		114,000		1,251,092
Egis Technology, Inc. (*)		14,000		106,594
Elite Material Co., Ltd.		227,000		773,761
Gourmet Master Co., Ltd.		53,500		780,799
Hon Hai Precision Industry Co., Ltd. GDR		114,105		718,386
Largan Precision Co., Ltd.		10,648		1,433,995
MediaTek, Inc.		106,000		1,044,943
Primax Electronics, Ltd.		370,000		979,766
Realtek Semiconductor Corp.		232,000		848,116
Silicon Motion Technology Corp. ADR		39,842		2,110,032
Sunny Friend Environmental Technology Co., Ltd.		86,000		737,838
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		70,385		2,790,765
				13,576,087

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)
Turkey | 2.8%
Emlak Konut Gayrimenkul Yatirim Ortakligi AS REIT (*)		1,682,179	$	1,246,965
KOC Holding AS ADR		51,504		1,258,294
Soda Sanayii AS		496,726		660,333
Turk Tuborg Bira ve Malt Sanayii AS		40,685		108,418
Turkcell Iletisim Hizmetleri AS ADR		78,627		801,996
Turkiye Garanti Bankasi AS		756,260		2,142,156
Turkiye Is Bankasi, C Shares		390,698		718,894
				6,937,056
Ukraine | 0.1%
Kernel Holding SA		12,214		166,724
United Arab Emirates | 0.2%
ADES International Holding, Ltd.		43,156		579,712
Total Common Stocks (Cost $133,886,475)				159,495,263

Description	Security Currency	Principal Amount (000)		Fair Value
Corporate Bonds | 3.2%
Argentina | 0.3%
AES Argentina Generacion SA, 7.750%, 02/02/24	USD		120	$	129,966
Generacion Mediterranea SA, 9.625%, 07/27/23	USD		250		279,263
Genneia SA, 8.750%, 01/20/22 (#)	USD		95		104,404
YPF SA, 7.000%, 12/15/47 (#)	USD		200		198,200
					711,833
Bangladesh | 0.1%
Banglalink Digital Communications, Ltd., 8.625%, 05/06/19	USD		175		181,563
Brazil | 0.7%
Gerdau Trade, Inc., 4.750%, 04/15/23	USD		48		49,020
GTL Trade Finance, Inc., 5.893%, 04/29/24	USD		25		26,812

Description	Security Currency	Principal Amount (000)		Fair Value
Itau Unibanco Holding SA, 6.125%, 12/12/22 (#), (§), (¶)	USD		200	$	199,909
Petrobras Global Finance BV, 8.375%, 05/23/21	USD		1,350		1,539,675
					1,815,416
Byelorussian Ssr | 0.1%
Eurotorg LLC Via Bonitron DAC, 8.750%, 10/30/22 (#)	USD		200		202,280
Canada | 0.1%
First Quantum Minerals, Ltd., 7.000%, 02/15/21 (#)	USD		50		51,875
7.500%, 04/01/25 (#)	USD		200		217,000
					268,875
Chile | 0.3%
AES Gener SA, 8.375%, 12/18/73	USD		200		209,154
Guanay Finance, Ltd., 6.000%, 12/15/20	USD		108		110,925
VTR Finance BV, 6.875%, 01/15/24	USD		315		332,325
					652,404
China | 0.0%
Green Dragon Gas, Ltd., 10.000%, 11/20/18 (#), (Ø)	USD		200		94,000
Colombia | 0.2%
Ecopetrol SA, 5.875%, 09/18/23	USD		130		143,650
Transportadora de Gas Internacional SA, 5.700%, 03/20/22	USD		265		271,757
					415,407
Guatemala | 0.1%
Comcel Trust, 6.875%, 02/06/24	USD		165		170,681
Israel | 0.1%
Altice Financing SA, 6.625%, 02/15/23	USD		280		293,188
Mauritius | 0.1%
Liquid Telecommunications Financing PLC, 8.500%, 07/13/22 (#)	USD		270		284,442

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)
Mexico | 0.1%
Banco Mercantil del Norte SA, 6.875%, 07/06/22 (#), (§), (¶)	USD		125	$	131,719
Nigeria | 0.1%
IHS Netherlands Holdco BV:
9.500%, 10/27/21 (#)	USD		155		166,810
9.500%, 10/27/21	USD		200		215,239
					382,049
Peru | 0.1%
Inkia Energy, Ltd., 5.875%, 11/09/27 (#)	USD		200		201,152
InRetail Shopping Malls, 6.500%, 07/09/21	USD		175		182,219
					383,371
Russia | 0.2%
GTH Finance BV, 7.250%, 04/26/23	USD		200		224,800
Sberbank of Russia, 5.500%, 02/26/24 (§)	USD		200		203,060
TMK OAO Via TMK Capital SA, 6.750%, 04/03/20	USD		200		210,489
					638,349
Saudi Arabia | 0.1%
Acwa Power Management And Investments One, Ltd., 5.950%, 12/15/39 (#)	USD		250		255,925
Singapore | 0.2%
Puma International Financing SA:
6.750%, 02/01/21	USD		203		206,577
5.125%, 10/06/24 (#)	USD		200		203,957
					410,534
South Korea | 0.1%
SK E&S Co., Ltd., 4.875%, 11/26/19 (§), (¶)	USD		90		90,108
Woori Bank, 4.500%, 09/27/21 (§), (¶)	USD		90		89,275
					179,383
Turkey | 0.1%
Turkiye Is Bankasi, 5.000%, 04/30/20	USD		200		202,115

Description	Security Currency	Principal Amount (000)		Fair Value
United Arab Emirates | 0.1%
MAF Global Securities, Ltd., 7.125%, 10/29/18 (§), (¶)	USD		260	$	265,888
United States | 0.0%
Sable International Finance, Ltd., 6.875%, 08/01/22 (#)	USD		65		68,900
Total Corporate Bonds (Cost $7,853,107)					8,008,322
Foreign Government Obligations | 15.7%
Angola | 0.3%
Republic of Angola, 9.500%, 11/12/25	USD		595		685,738
Argentina | 1.7%
Argentina POM Politica Monetaria, 28.750% (ARPP7DRR), 06/21/20 (§)	ARS		8,990		513,861
Provincia de Buenos Aires, 7.875%, 06/15/27	USD		150		166,125
Republic of Argentina:
26.055% (BADLARPP + 2.750%), 03/01/18 (§)	ARS		4,060		216,746
22.750%, 03/05/18	ARS		5,600		296,723
21.200%, 09/19/18	ARS		1,070		55,733
25.854% (BADLARPP + 2.500%), 03/11/19 (§)	ARS		1,300		70,108
7.500%, 04/22/26	USD		55		62,178
6.875%, 01/26/27	USD		260		284,115
7.625%, 04/22/46	USD		170		192,143
7.125%, 06/28/2117	USD		1,090		1,125,697
7.125%, 06/28/2117 (#)	USD		1,180		1,218,645
					4,202,074
Brazil | 1.1%
Brazil Letras do Tesouro Nacional, 0.000%, 04/01/18	BRL		2,200		652,471
Brazil NTN-B:
6.000%, 05/15/35	BRL		410		401,447
6.000%, 08/15/50	BRL		470		464,439
Brazil NTN-F:
10.000%, 01/01/21	BRL		962		298,387
10.000%, 01/01/27	BRL		2,760		823,128
					2,639,872

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)
Chile | 0.2%
Republic of Chile, 3.860%, 06/21/47	USD		485	$	497,731
Colombia | 0.2%
Republic of Colombia, 5.000%, 06/15/45	USD		470		497,730
Congo | 0.4%
Republic of Congo, 6.000%, 06/30/29 (Ø)	USD		1,035		905,688
Dominican Republic | 0.1%
Dominican Republic Bonds:
15.950%, 06/04/21 (#)	DOP		4,200		107,496
10.500%, 04/07/23 (#)	DOP		5,000		112,594
					220,090
Ecuador | 0.4%
Republic of Ecuador:
10.500%, 03/24/20	USD		200		221,250
8.750%, 06/02/23	USD		250		275,896
9.625%, 06/02/27	USD		200		228,755
8.875%, 10/23/27 (#)	USD		200		219,139
					945,040
Egypt | 0.9%
Arab Republic of Egypt, 8.500%, 01/31/47 (#)	USD		265		304,419
Egypt Treasury Bills:
0.000%, 01/02/18	EGP		2,600		146,232
0.000%, 07/03/18	EGP		7,850		403,826
0.000%, 07/10/18	EGP		300		15,319
0.000%, 07/24/18	EGP		9,100		464,955
0.000%, 08/21/18	EGP		19,300		966,715
					2,301,466
El Salvador | 0.1%
Republic of El Salvador:
7.375%, 12/01/19	USD		135		142,890
5.875%, 01/30/25	USD		145		145,906
					288,796
Ghana | 0.3%
Ghana Government Bonds:
23.230%, 02/19/18	GHS		120		26,713
22.490%, 04/23/18	GHS		20		4,485
23.470%, 05/21/18	GHS		100		22,522

Description	Security Currency	Principal Amount (000)		Fair Value
Ghana Treasury Notes:
22.500%, 12/10/18	GHS		160	$	36,916
21.000%, 01/07/19	GHS		870		198,593
Republic of Ghana:
7.875%, 08/07/23	USD		335		367,244
8.125%, 01/18/26	USD		206		228,917
					885,390
India | 0.3%
India Government Bonds, 7.720%, 05/25/25	INR		50,000		801,821
Indonesia | 0.6%
Indonesia Government Bonds:
7.875%, 04/15/19	IDR		5,678,000		430,218
8.250%, 07/15/21	IDR		3,084,000		243,333
8.375%, 09/15/26	IDR		4,071,000		338,162
Republic of Indonesia, 5.250%, 01/08/47	USD		430		486,975
					1,498,688
Jordan | 0.1%
Kingdom of Jordan, 7.375%, 10/10/47 (#)	USD		290		302,141
Kazakhstan | 0.2%
Republic of Kazakhstan, 6.500%, 07/21/45	USD		435		557,235
Lebanon | 0.5%
Lebanese Republic:
6.375%, 03/09/20	USD		24		23,980
6.150%, 06/19/20	USD		27		26,738
8.250%, 04/12/21	USD		81		84,443
6.100%, 10/04/22	USD		40		38,850
6.000%, 01/27/23	USD		110		105,188
6.650%, 04/22/24	USD		219		212,978
6.250%, 11/04/24	USD		407		387,158
6.600%, 11/27/26	USD		159		151,448
6.850%, 03/23/27	USD		125		120,781
6.650%, 11/03/28	USD		53		49,555
					1,201,119
Malaysia | 0.5%
Malaysia Government Bonds:
4.240%, 02/07/18	MYR		1,490		368,656
3.580%, 09/28/18	MYR		2,240		555,995
3.759%, 03/15/19	MYR		1,298		323,243
					1,247,894

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)
Mexico | 0.6%
Mexican Bonos:
6.500%, 06/10/21	MXN		13,750	$	675,692
5.750%, 03/05/26	MXN		5,910		265,998
United Mexican States, 5.750%, 10/12/10	USD		470		495,733
					1,437,423
Mozambique | 0.4%
Mozambique International Bonds, 10.500%, 01/18/23	USD		1,137		932,340
Nigeria | 0.3%
Republic of Nigeria, 7.625%, 11/28/47 (#)	USD		720		772,177
Panama | 0.2%
Republic of Panama:
4.500%, 05/15/47	USD		60		64,530
4.300%, 04/29/53	USD		408		425,850
					490,380
Paraguay | 0.2%
Republic of Paraguay, 6.100%, 08/11/44	USD		380		433,675
Peru | 0.5%
Republic of Peru:
6.350%, 08/12/28	PEN		2,070		696,887
5.625%, 11/18/50	USD		385		496,650
					1,193,537
Philippines | 0.2%
Republic of Philippines:
3.950%, 01/20/40	USD		140		144,200
3.700%, 02/02/42	USD		340		337,875
					482,075
Romania | 0.2%
Romania Government Bonds:
5.850%, 04/26/23	RON		380		106,186
6.125%, 01/22/44	USD		385		496,650
					602,836
Russia | 2.2%
Russian Foreign Bonds - Eurobond, 5.250%, 06/23/47	USD		400		418,000

Description	Security Currency	Principal Amount (000)		Fair Value
Russia Government Bonds - OFZ:
6.400%, 05/27/20	RUB		10,400	$	178,539
7.600%, 04/14/21	RUB		16,300		289,228
7.500%, 08/18/21	RUB		33,000		582,363
7.750%, 09/16/26	RUB		223,670		3,968,343
					5,436,473
South Africa | 1.1%
Republic of South Africa:
6.750%, 03/31/21	ZAR		6,180		486,974
7.750%, 02/28/23	ZAR		5,600		448,503
10.500%, 12/21/26	ZAR		3,460		311,829
8.250%, 03/31/32	ZAR		10,000		736,902
8.750%, 02/28/48	ZAR		9,400		685,325
					2,669,533
Sri Lanka | 0.0%
Sri Lanka Government Bonds, 9.250%, 05/01/20	LKR		8,000		51,720
Turkey | 0.3%
Turkey Government Bonds:
10.400%, 03/27/19	TRY		1,370		349,503
2.000%, 10/26/22	TRY		1,742		442,354
					791,857
Ukraine | 0.6%
Ukraine Government Bonds:
7.750%, 09/01/19	USD		125		131,250
7.750%, 09/01/20	USD		420		444,675
7.750%, 09/01/23	USD		270		286,537
7.750%, 09/01/27	USD		155		160,532
7.375%, 09/25/32 (#)	USD		110		108,118
7.375%, 09/25/32	USD		295		290,206
					1,421,318
United Arab Emirates | 0.2%
Abu Dhabi Government International Bonds, 4.125%, 10/11/47 (#)	USD		495		491,288
Uruguay | 0.4%
Republica Orient Uruguay:
5.000%, 09/14/18	UYU		9,238		326,870
5.100%, 06/18/50	USD		455		507,325
Uruguay Notas del Tesoro, 13.250%, 04/08/18	UYU		1,600		56,329
Uruguay Treasury Bills, 0.000%, 06/01/18	UYU		680		22,827

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)
0.000%, 02/08/18	UYU		2,490	$	85,930
0.000%, 03/08/18	UYU		3,022		103,547
0.000%, 04/05/18	UYU		920		31,316
					1,134,144
Venezuela | 0.1%
Republic of Venezuela:
8.250%, 10/13/24	USD		145		29,544
7.650%, 04/21/25 (∏)	USD		180		36,900
9.250%, 05/07/28 (∏)	USD		105		21,394
9.375%, 01/13/34	USD		115		24,006
7.000%, 03/31/38	USD		155		31,581
					143,425
Zambia | 0.3%
Republic of Zambia:
8.500%, 04/14/24	USD		265		292,825
8.970%, 07/30/27	USD		410		460,738
					753,563
Total Foreign Government Obligations (Cost $38,457,501)					38,916,277
Quasi Government Bonds | 0.6%
Argentina | 0.1%
Letras Banco Cent Argentina:
0.000%, 04/18/18	ARS		2,810		138,939
0.000%, 06/21/18	ARS		5,620		266,211
					405,150
Brazil | 0.2%
Cemig Geracao e Transmissao SA, 9.250%, 12/05/24 (#)	USD		400		431,000
Russia | 0.1%
VTB Bank PJSC Via VTB Eurasia DAC, 9.500%, 12/06/22 (§), (Ø), (¶)	USD		200		220,915
Ukraine | 0.1%
Ukreximbank Via Biz Finance PLC, 9.625%, 04/27/22	USD		300		320,340

Description	Security Currency	Principal Amount (000)		Fair Value
Venezuela | 0.1%
Petroleos de Venezuela SA:
6.000%, 05/16/24 (Π)	USD		175	$	39,200
6.000%, 11/15/26 (Π)	USD		195		42,705
5.375%, 04/12/27 (Π)	USD		190		44,175
5.500%, 04/12/37 (Π)	USD		170		40,375
					166,455
Total Quasi Government Bonds (Cost $1,643,060)					1,543,860
Supranationals | 0.1%
European Investment Bank, 7.200%, 07/09/19 (#) (Cost $230,439)	IDR		3,000,000		224,864
US Treasury Securities | 10.6%
US Treasury Bills:
0.000%, 01/11/18	USD		6,110		6,108,202
0.000%, 02/08/18	USD		8,600		8,588,940
US Treasury Notes:
0.875%, 01/31/18	USD		3,500		3,499,009
1.000%, 02/15/18	USD		2,500		2,499,090
2.750%, 02/28/18	USD		1,700		1,703,787
2.875%, 03/31/18	USD		1,000		1,003,553
0.750%, 04/30/18	USD		2,900		2,893,656
Total US Treasury Securities (Cost $26,298,566)					26,296,237
Description		Shares		Fair Value
Warrants | 0.0%
Brazil | 0.0%
Iochpe Maxion SA, Expires 06/03/19 (Cost $0)			5,284	$	16,551
Short-Term Investments | 4.9%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $12,046,933)			12,046,933		12,046,933

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

42  Annual Report

Description	Counterparty	Notional Amount  (000)		Number of Contracts	Fair Value
Lazard Emerging Markets Multi-Asset Portfolio (continued)
Purchased Options | 0.4%
Call
USD vs INR Jan 18 67.04, Expires 01/30/18	JPMS	$	2,350	23,500	$	705
USD vs RUB Mar 18 61.97, Expires 03/05/18	JPMS		2,367	23,670		8,488
Put
EUR vs PLN Jul 18 4.2, Expires 07/30/18	BRC		1,494	14,940		25,275
EUR vs PLN Jul 18 4.2, Expires 07/30/18	HSB		1,391	13,910		23,533
EUR vs PLN Jul 18 4.2, Expires 07/30/18	JPMS		652	6,520		11,030
EUR vs PLN Sep 17 4.2, Expires 09/28/18	JPMS		1,652	16,520		30,327
USD vs BRL Apr 18 3.1, Expires 04/13/18	JPMS		2,970	29,700		10,692
USD vs BRL Apr 18 3.15, Expires 04/02/18	JPMS		2,530	25,300		12,650

Description	Counterparty	Notional Amount (000)		Notional Number of Contracts		Fair Value
USD vs EUR Feb 18 1.19, Expires 02/20/18	JPMS	$	2,552		25,520	$	27,179
USD vs MXN Jan 18 18.25, Expires 01/09/18	JPMS		2,980		29,800		298
USD vs MXN Apr 18 18.25, Expires 04/12/18	JPMS		4,950		49,500		11,385
USD vs TRY Jan 18 3.6, Expires 01/15/18	JPMS		4,740		47,400		1,896
USD vs ZAR Apr 18 13.25, Expires 04/03/18	JPMS		2,800		28,000		196,840
USD vs ZAR Apr 18 13.25, Expires 04/12/18	JPMS		8,750		87,500		614,250
Total Purchased Options (Cost $635,572)							974,548
Total Investments | 99.7% (Cost $221,051,653) (¤)						$	247,522,855
Cash and Other Assets in Excess of Liabilities | 0.3%							825,401
Net Assets | 100.0%						$	248,348,256

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, 2017:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
ARS		9,623,200	USD		523,000	CIT	01/17/18		$	—		$	10,173
ARS		6,887,160	USD		378,000	CIT	01/22/18			—			11,954
ARS		5,550,000	USD		300,000	CIT	01/30/18			—			6,271
ARS		7,303,268	USD		397,000	HSB	01/17/18			—			7,804
ARS		2,951,520	USD		165,000	HSB	01/22/18			—			8,129
ARS		4,206,990	USD		226,000	SCB	02/02/18			—			3,702
AUD		366,743	USD		280,000	CIT	01/31/18			6,157			—
BRL		595,391	USD		180,258	BRC	02/09/18			—			1,505
BRL		989,032	USD		293,560	CIT	10/16/18			—			4,682
BRL		961,494	USD		295,000	HSB	01/08/18			—			5,303
BRL		593,779	USD		179,742	JPM	02/09/18			—			1,474
BRL		309,225	USD		92,663	SCB	02/09/18			175			—
BRL		363,944	USD		109,887	SCB	02/09/18			—			621
BRL		2,447,056	USD		740,000	SCB	02/09/18			—			5,328
CLP		141,258,600	USD		222,000	HSB	02/20/18			7,490			—
CNY		2,456,775	USD		358,000	CIT	01/17/18			18,991			—
CNY		2,102,625	USD		315,000	HSB	02/09/18			7,225			—
CNY		4,281,634	USD		644,000	HSB	03/22/18			10,570			—
COP		2,117,255,661	USD		687,493	BRC	01/09/18			21,543			—
COP		655,668,000	USD		216,000	CIT	01/10/18			3,553			—
COP		913,489,600	USD		304,000	CIT	01/29/18			1,348			—
COP		1,435,044,800	USD		476,000	CIT	02/12/18			3,096			—
COP		383,552,407	USD		125,714	JPM	01/09/18			2,732			—
COP		1,127,155,934	USD		366,793	SCB	01/09/18			10,674			—
CZK		306,804	EUR		12,000	CIT	01/26/18			9			—
CZK		9,558,692	EUR		374,000	CIT	01/26/18			124			—
CZK		23,749,650	EUR		890,000	CIT	02/27/18			47,065			—
CZK		4,468,763	EUR		176,000	JPM	02/28/18			—			1,423
DOP		10,294,200	USD		213,351	CIT	01/10/18			—			535
DOP		10,687,200	USD		219,000	CIT	01/19/18			1,611			—
EGP		7,067,700	USD		371,495	CIT	02/28/18			19,873			—
EUR		753,607	CZK		20,185,374	CIT	02/27/18			—			43,401
EUR		108,774	USD		129,735	CIT	02/27/18			1,191			—
GHS		486,030	USD		102,000	SCB	02/26/18			2,559			—
HUF		153,376,320	USD		591,000	CIT	01/29/18			2,042			—
HUF		171,497,200	USD		644,000	HSB	02/15/18			19,639			—
IDR		1,226,945,617	USD		86,557	BRC	01/05/18			3,861			—
IDR		1,266,633,065	USD		89,357	BRC	01/05/18			3,986			—
IDR		2,001,159,224	USD		141,026	BRC	01/05/18			6,447			—
IDR		4,923,572,126	USD		358,992	BRC	01/05/18			3,846			—
IDR		5,746,673,598	USD		406,413	BRC	01/05/18			17,082			—
IDR		2,296,338,338	USD		164,789	BRC	01/08/18			4,397			—
IDR		3,939,953,877	USD		287,924	BRC	03/20/18			471			—

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		4,295,070,194	USD		311,124	BRC	06/05/18		$	827		$	—
IDR		7,052,486,574	USD		511,346	BRC	06/05/18			876			—
IDR		3,006,712,151	USD		212,067	CIT	01/05/18			9,509			—
IDR		5,088,006,866	USD		371,008	CIT	01/05/18			3,947			—
IDR		7,582,606,799	USD		535,306	CIT	01/05/18			23,486			—
IDR		9,231,275,977	USD		650,643	CIT	01/05/18			29,646			—
IDR		9,278,332,055	USD		654,231	CIT	01/05/18			29,525			—
IDR		3,939,953,876	USD		287,777	CIT	03/20/18			618			—
IDR		4,295,070,194	USD		311,463	CIT	06/05/18			488			—
IDR		3,775,879,942	USD		266,376	JPM	01/05/18			11,883			—
IDR		3,791,326,736	USD		267,371	JPM	01/05/18			12,026			—
IDR		6,200,107,251	USD		438,282	JPM	01/05/18			18,629			—
IDR		2,628,459,024	USD		188,488	JPM	01/08/18			5,168			—
IDR		10,088,456,136	USD		733,973	JPM	01/08/18			9,309			—
IDR		3,739,544,417	USD		273,359	JPM	02/20/18			1,075			—
IDR		3,939,953,877	USD		288,029	JPM	03/20/18			365			—
IDR		4,295,070,194	USD		311,237	JPM	06/05/18			714			—
IDR		7,052,486,574	USD		511,309	JPM	06/05/18			913			—
IDR		2,696,354,136	USD		196,027	SCB	01/08/18			2,631			—
IDR		3,020,037,513	USD		216,723	SCB	01/08/18			5,782			—
IDR		2,184,000,000	USD		160,000	SCB	02/07/18			455			—
IDR		19,944,335,281	USD		1,456,641	SCB	02/20/18			7,011			—
IDR		3,939,953,877	USD		287,882	SCB	03/20/18			513			—
IDR		4,295,070,194	USD		311,327	SCB	06/05/18			624			—
IDR		3,791,326,736	USD		267,371	UBS	01/05/18			12,026			—
INR		11,111,750	USD		169,000	BRC	01/05/18			5,047			—
INR		14,847,270	USD		225,300	BRC	01/05/18			7,258			—
INR		15,134,628	USD		229,800	BRC	01/05/18			7,259			—
INR		33,594,601	USD		510,324	BRC	01/16/18			15,225			—
INR		28,919,999	USD		442,689	BRC	03/19/18			6,260			—
INR		102,671,160	USD		1,559,676	CIT	01/16/18			46,496			—
INR		14,368,614	USD		224,000	CIT	01/22/18			639			—
INR		13,543,616	USD		207,311	CIT	03/19/18			2,938			—
INR		20,022,750	USD		300,000	CIT	03/19/18			10,830			—
INR		11,126,960	USD		169,000	JPM	01/05/18			5,286			—
INR		31,104,736	USD		471,800	JPM	01/05/18			15,405			—
INR		71,400,285	USD		1,089,000	JPM	02/01/18			26,097			—
INR		82,734,210	USD		1,261,000	JPM	02/01/18			31,105			—
INR		14,833,752	USD		225,300	SCB	01/05/18			7,047			—
INR		15,132,330	USD		229,800	SCB	01/05/18			7,223			—
INR		12,436,450	USD		190,000	SCB	01/10/18			4,677			—
INR		44,517,489	USD		677,000	SCB	01/22/18			18,985			—
KRW		234,692,635	USD		210,524	BRC	01/08/18			8,746			—

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
KRW		639,510,393	USD		587,003	BRC	01/08/18		$	10,483		$	—
KRW		783,739,151	USD		705,372	BRC	01/08/18			26,864			—
KRW		233,043,288	USD		209,703	BRC	01/12/18			8,047			—
KRW		233,441,725	USD		209,703	BRC	01/12/18			8,419			—
KRW		233,693,369	USD		209,703	BRC	01/12/18			8,655			—
KRW		234,745,266	USD		210,524	BRC	01/12/18			8,816			—
KRW		321,369,486	USD		287,888	CIT	01/12/18			12,392			—
KRW		397,995,662	USD		357,483	CIT	01/12/18			14,396			—
KRW		449,445,489	USD		404,628	JPM	01/08/18			15,283			—
KRW		676,375,299	USD		605,663	JPM	01/08/18			26,266			—
KRW		253,750,491	USD		228,316	JPM	01/12/18			8,783			—
KRW		512,150,554	USD		459,472	JPM	01/12/18			19,070			—
KRW		542,018,659	USD		485,675	JPM	01/12/18			20,775			—
KRW		193,753,972	USD		173,289	SCB	01/08/18			7,733			—
KRW		99,640,826	USD		89,396	SCB	01/12/18			3,706			—
KRW		213,050,194	USD		191,385	SCB	01/12/18			7,684			—
KRW		356,293,592	USD		320,552	SCB	01/12/18			12,361			—
KRW		484,088,250	USD		443,000	SCB	01/12/18			9,321			—
KZT		85,539,300	USD		252,328	CIT	02/08/18			2,872			—
KZT		88,642,500	USD		265,000	CIT	02/26/18			—			1,650
KZT		106,186,500	USD		312,865	CIT	03/27/18			676			—
KZT		82,871,250	USD		245,000	SCB	01/29/18			2,774			—
KZT		86,937,600	USD		256,000	SCB	03/12/18			1,494			—
MAD		2,159,160	USD		224,562	CIT	03/20/18			3,002			—
MAD		1,993,320	USD		208,725	CIT	03/26/18			1,068			—
PEN		1,329,932	USD		410,182	BOA	02/16/18			—			817
PEN		1,329,934	USD		406,260	BRC	02/16/18			3,105			—
PEN		361,105	USD		110,677	CIT	02/05/18			535			—
PEN		1,008,200	USD		311,000	CIT	02/15/18			—			652
PEN		4,157,155	USD		1,282,301	CIT	02/16/18			—			2,691
PEN		7,616,027	USD		2,330,000	HSB	01/16/18			17,449			—
PEN		1,329,934	USD		410,018	HSB	02/16/18			—			652
PEN		786,960	USD		241,177	SCB	01/19/18			1,354			—
PEN		1,329,934	USD		410,056	SCB	02/16/18			—			690
PHP		33,993,300	USD		660,000	JPM	01/12/18			20,693			—
PHP		16,510,145	USD		323,000	SCB	02/20/18			7,013			—
PLN		1,721,174	USD		480,238	BOA	03/12/18			14,295			—
PLN		1,392,095	USD		389,000	CIT	01/18/18			10,922			—
PLN		992,325	USD		277,000	HSB	01/18/18			8,076			—
PLN		3,442,348	USD		960,376	JPM	03/12/18			28,691			—
PLN		1,721,174	USD		480,328	SCB	03/12/18			14,206			—
PLN		1,721,176	USD		480,179	UBS	03/12/18			14,356			—
RUB		41,902,817	USD		710,338	BRC	01/10/18			16,732			—

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
RUB		19,587,810	USD		330,000	CIT	02/16/18		$	8,351		$	—
RUB		41,902,816	USD		710,338	JPM	01/10/18			16,732			—
RUB		5,421,780	USD		91,000	JPM	01/16/18			3,002			—
RUB		66,389,060	USD		1,115,679	JPM	03/19/18			25,432			—
RUB		41,902,816	USD		710,458	SCB	01/10/18			16,611			—
RUB		6,281,560	USD		106,000	SCB	02/16/18			2,505			—
THB		21,577,920	USD		665,000	SCB	02/16/18			—			2,123
TRY		1,050,020	USD		270,721	BRC	01/31/18			3,897			—
TRY		1,725,151	USD		444,936	HSB	01/31/18			6,254			—
TRY		1,725,152	USD		444,696	JPM	01/31/18			6,495			—
TRY		3,948,120	USD		1,017,819	SCB	01/31/18			14,759			—
TRY		1,413,406	USD		326,000	SCB	11/13/18			13,238			—
TRY		81,746	USD		21,076	UBS	01/31/18			304			—
TWD		6,330,067	USD		209,258	BRC	01/08/18			3,505			—
TWD		27,435,466	USD		914,668	BRC	01/08/18			7,479			—
TWD		3,839,960	USD		128,427	BRC	01/12/18			667			—
TWD		5,185,275	USD		172,097	BRC	01/12/18			2,224			—
TWD		9,061,017	USD		300,990	BRC	01/12/18			3,626			—
TWD		9,066,736	USD		300,990	BRC	01/12/18			3,819			—
TWD		9,862,396	USD		326,003	CIT	01/08/18			5,487			—
TWD		3,361,600	USD		110,000	CIT	01/12/18			3,012			—
TWD		26,922,474	USD		897,461	JPM	01/08/18			7,444			—
TWD		6,853,961	USD		227,706	JPM	01/12/18			2,713			—
TWD		6,858,515	USD		227,706	JPM	01/12/18			2,866			—
TWD		16,773,260	USD		556,475	JPM	01/12/18			7,416			—
TWD		5,849,571	USD		193,310	SCB	01/08/18			3,303			—
TWD		5,957,129	USD		198,936	SCB	01/08/18			1,292			—
TWD		5,974,038	USD		198,936	SCB	01/12/18			1,902			—
TWD		6,014,227	USD		199,875	SCB	01/12/18			2,314			—
TWD		6,019,224	USD		199,875	SCB	01/12/18			2,482			—
USD		300,000	ARS		5,634,000	CIT	01/17/18			—			240
USD		100,000	ARS		1,987,000	JPM	02/14/18			—			4,314
USD		740,000	AUD		966,581	SCB	01/31/18			—			14,189
USD		285,850	BRL		1,001,331	BRC	02/09/18			—			14,777
USD		298,000	BRL		989,032	HSB	10/16/18			9,122			—
USD		466,242	BRL		1,638,143	JPM	02/09/18			—			25,572
USD		131,666	BRL		461,119	SCB	02/09/18			—			6,775
USD		466,242	BRL		1,637,770	UBS	02/09/18			—			25,460
USD		486,746	COP		1,471,433,884	BRC	01/09/18			—			6,014
USD		252,458	COP		764,694,161	JPM	01/09/18			—			3,627
USD		460,796	COP		1,395,581,013	SCB	01/09/18			—			6,562
USD		146,000	CZK		3,564,276	CIT	02/27/18			—			21,834
USD		385,665	EGP		7,067,700	CIT	02/28/18			—			5,703

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

Annual Report  47

Lazard Emerging Markets Multi-Asset Portfolio (continued)

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
USD		1,892	EUR		1,587	CIT	02/27/18		$	—		$	17
USD		174,700	IDR		2,371,552,500	BRC	01/05/18			—			69
USD		233,000	IDR		3,169,382,500	BRC	01/05/18			—			564
USD		234,695	IDR		3,193,024,523	BRC	01/05/18			—			612
USD		236,700	IDR		3,216,279,600	BRC	01/05/18			—			320
USD		315,814	IDR		4,295,070,194	BRC	01/05/18			—			707
USD		48,000	IDR		669,744,000	BRC	01/08/18			—			1,344
USD		48,000	IDR		664,560,000	BRC	01/08/18			—			962
USD		48,000	IDR		659,520,000	BRC	01/08/18			—			591
USD		518,756	IDR		7,052,486,574	BRC	01/08/18			—			846
USD		304,628	IDR		4,144,469,654	CIT	01/05/18			—			794
USD		316,046	IDR		4,295,070,194	CIT	01/05/18			—			474
USD		48,000	IDR		659,760,000	CIT	01/08/18			—			609
USD		136,000	IDR		1,893,120,000	HSB	04/26/18			—			2,057
USD		174,700	IDR		2,375,920,000	JPM	01/05/18			—			391
USD		315,930	IDR		4,295,070,194	JPM	01/05/18			—			590
USD		420,000	IDR		5,700,660,000	JPM	01/05/18			—			104
USD		1,180,000	IDR		16,289,900,000	JPM	01/05/18			—			20,466
USD		48,000	IDR		662,304,000	JPM	01/08/18			—			796
USD		48,000	IDR		660,720,000	JPM	01/08/18			—			679
USD		48,000	IDR		661,584,000	JPM	01/08/18			—			743
USD		518,756	IDR		7,052,486,574	JPM	01/08/18			—			846
USD		211,877	IDR		2,884,700,590	SCB	01/05/18			—			708
USD		233,000	IDR		3,167,635,000	SCB	01/05/18			—			435
USD		236,700	IDR		3,216,753,000	SCB	01/05/18			—			355
USD		315,977	IDR		4,295,070,194	SCB	01/05/18			—			544
USD		48,000	IDR		662,880,000	SCB	01/08/18			—			839
USD		48,000	IDR		660,960,000	UBS	01/08/18			—			697
USD		48,000	IDR		662,640,000	UBS	01/08/18			—			821
USD		535,183	INR		34,912,692	BRC	01/05/18			—			11,667
USD		130,000	INR		8,553,350	JPM	01/05/18			—			3,974
USD		535,183	INR		34,912,692	JPM	01/05/18			—			11,667
USD		50,000	INR		3,276,500	JPM	03/19/18			—			864
USD		535,348	INR		34,912,692	SCB	01/05/18			—			11,503
USD		813,048	INR		53,917,278	SCB	03/19/18			—			23,955
USD		653,325	KRW		744,379,235	BRC	01/08/18			—			42,138
USD		14,992	KRW		16,731,206	BRC	01/12/18			—			641
USD		584,670	KRW		636,944,968	BRC	01/12/18			—			10,478
USD		652,976	KRW		744,379,235	BRC	01/12/18			—			42,556
USD		653,279	KRW		744,379,234	CIT	01/08/18			—			42,184
USD		652,564	KRW		744,379,233	CIT	01/12/18			—			42,968
USD		653,451	KRW		744,379,235	JPM	01/08/18			—			42,012
USD		652,861	KRW		744,379,235	JPM	01/12/18			—			42,670

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

48  Annual Report

Lazard Emerging Markets Multi-Asset Portfolio (continued)

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
USD		653,538	KRW		744,379,235	SCB	01/08/18		$	—		$	41,926
USD		653,136	KRW		744,379,235	SCB	01/12/18			—			42,395
USD		435,000	MXN		8,342,430	SCB	01/22/18			12,186			—
USD		61,406	RUB		3,614,943	BOA	01/10/18			—			1,318
USD		391,425	RUB		23,132,644	BOA	01/10/18			—			9,957
USD		122,415	RUB		7,296,330	BOA	03/19/18			—			2,996
USD		21,956	RUB		1,292,584	BRC	01/10/18			—			472
USD		30,550	RUB		1,784,387	BRC	01/10/18			—			411
USD		43,760	RUB		2,574,909	BRC	01/10/18			—			918
USD		391,415	RUB		23,132,644	BRC	01/10/18			—			9,967
USD		43,396	RUB		2,567,526	BRC	01/16/18			—			1,119
USD		43,447	RUB		2,567,526	BRC	01/16/18			—			1,068
USD		21,667	RUB		1,291,676	BRC	03/19/18			—			535
USD		40,000	RUB		2,382,420	BRC	03/19/18			—			950
USD		63,795	RUB		3,805,072	BRC	03/19/18			—			1,607
USD		85,293	RUB		5,129,280	BRC	03/19/18			—			2,870
USD		703,794	RUB		41,902,817	BRC	03/19/18			—			16,442
USD		45,257	RUB		2,677,723	BRC	03/22/18			—			751
USD		45,268	RUB		2,678,759	BRC	03/22/18			—			758
USD		90,394	RUB		5,345,108	BRC	03/22/18			—			1,446
USD		103,889	RUB		6,151,527	BRC	03/22/18			—			1,806
USD		13,238	RUB		778,407	CIT	01/10/18			—			268
USD		391,465	RUB		23,132,643	CIT	01/10/18			—			9,917
USD		98,275	RUB		5,855,040	CIT	03/19/18			—			2,363
USD		215,726	RUB		12,846,250	CIT	03/19/18			—			5,079
USD		391,299	RUB		23,132,644	JPM	01/10/18			—			10,083
USD		703,788	RUB		41,902,816	JPM	03/19/18			—			16,448
USD		392,218	RUB		23,132,644	SCB	01/10/18			—			9,164
USD		703,953	RUB		41,902,816	SCB	03/19/18			—			16,283
USD		5,582	TRY		21,617	BRC	01/31/18			—			72
USD		81,367	TRY		318,448	BRC	01/31/18			—			1,918
USD		146,472	TRY		574,843	CIT	01/31/18			—			3,871
USD		453,000	TRY		1,757,957	HSB	01/19/18			—			8,416
USD		124,286	TRY		481,458	JPM	01/31/18			—			1,633
USD		225,000	TRY		879,975	SCB	01/19/18			—			5,970
USD		72,161	TRY		281,030	SCB	01/31/18			—			1,339
USD		110,000	TRY		428,736	SCB	01/31/18			—			2,130
USD		160,133	TRY		619,642	SCB	01/31/18			—			1,926
USD		111,979	TWD		3,349,290	BRC	01/08/18			—			596
USD		650,806	TWD		19,751,953	BRC	01/08/18			—			13,087
USD		650,206	TWD		19,751,954	CIT	01/08/18			—			13,687
USD		1,299,086	TWD		39,503,906	CIT	01/12/18			—			28,972
USD		650,913	TWD		19,751,953	JPM	01/08/18			—			12,980

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

Annual Report  49

Lazard Emerging Markets Multi-Asset Portfolio (continued)

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
USD		639,675	TWD		19,436,520	JPM	01/12/18		$	—		$	13,750
USD		650,591	TWD		19,751,953	SCB	01/08/18			—			13,302
USD		661,090	TWD		20,067,387	UBS	01/12/18			—			13,543
USD		486,741	ZAR		6,636,135	BOA	01/19/18			—			48,309
USD		453,099	ZAR		6,046,058	CIT	01/12/18			—			34,891
USD		486,100	ZAR		6,636,135	JPM	01/19/18			—			48,951
USD		486,782	ZAR		6,636,135	SCB	01/19/18			—			48,268
USD		486,231	ZAR		6,636,135	UBS	01/19/18			—			48,819
UYU		936,640	USD		32,000	CIT	02/07/18			335			—
UYU		939,200	USD		32,000	CIT	02/07/18			423			—
UYU		940,160	USD		32,000	CIT	02/07/18			457			—
UYU		942,400	USD		32,000	CIT	02/07/18			534			—
UYU		945,280	USD		32,000	CIT	02/07/18			633			—
UYU		6,636,878	USD		229,000	JPM	01/18/18			902			—
ZAR		3,047,172	USD		222,000	SCB	01/12/18			23,943			—
ZAR		2,553,500	USD		200,000	SCB	02/22/18			4,844			—
Total gross unrealized appreciation/depreciation on Forward Currency Contracts									$	1,273,203		$	1,200,651

Written Options open at December 31, 2017:

Description	Counterparty	Number of Contracts	Strike Price		Expiration Date	Notional Amount		Premiums		Fair Value
Put
USD vs BRL Apr 18 3.05	JPMS	25,300		$  3.05	04/02/18	$	2,530,000	$	22,770	$	(4,554	)
USD vs INR Jan 18 64.77	JPMS	23,500		64.77	01/30/18		2,350,000		11,294		(33,605	)
USD vs RUB Mar 18 57.95	JPMS	23,670		57.95	03/05/18		2,367,000		21,563		(37,962	)
USD vs ZAR Apr 18 12.75	JPMS	87,500		12.75	04/12/18		8,750,000		113,750		(357,000	)
USD vs ZAR Apr 18 12.85	JPMS	28,000		12.85	04/03/18		2,800,000		37,044		(128,520	)
Total Written Options		187,970						$	206,421	$	(561,641	)

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

50  Annual Report

Lazard Emerging Markets Multi-Asset Portfolio (concluded)

Interest Rate Swap Agreements open at December 31, 2017:

Currency	Counterparty	Notional Amount		Expiration Date	Receive (Pay) Rate			Payment Frequency Paid/Received	Variable Rate	Unrealized Appreciation		Unrealized Depreciation
BRL	JPM	$	6,551,695	01/02/20		(8.75	)%	Maturity	Brazil Cetip Interbank Deposit Rate	$	—	$	33,511
BRL	JPM		523,863	07/01/20		10.01		Maturity	Brazil Cetip Interbank Deposit Rate		6,972		—
BRL	JPM		972,619	07/01/20		10.02		Maturity	Brazil Cetip Interbank Deposit Rate		13,034		—
BRL	JPM		5,430,548	01/02/21		10.53		Maturity	Brazil Cetip Interbank Deposit Rate		—		3,536
BRL	JPM		3,036,290	01/04/21		9.16		Maturity	Brazil Cetip Interbank Deposit Rate		8,053		—
BRL	JPM		4,535,265	01/04/21		10.29		Maturity	Brazil Cetip Interbank Deposit Rate		—		5,561
BRL	JPM		4,534,446	01/04/21		10.31		Maturity	Brazil Cetip Interbank Deposit Rate		—		5,342
BRL	JPM		13,582,489	01/04/21		10.48		Maturity	Brazil Cetip Interbank Deposit Rate		—		10,471
BRL	JPM		3,618,409	01/04/21		10.59		Maturity	Brazil Cetip Interbank Deposit Rate		—		1,836
BRL	JPM		3,614,645	01/04/21		10.71		Maturity	Brazil Cetip Interbank Deposit Rate		—		753
BRL	JPM		5,416,880	01/04/21		10.81		Maturity	Brazil Cetip Interbank Deposit Rate		107		—
BRL	JPM		6,851,853	01/04/21		11.05		Maturity	Brazil Cetip Interbank Deposit Rate		111,494		—
Total gross unrealized appreciation/depreciation on Interest Rate Swap Agreements										$	139,660	$	61,010

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
Corporate Bonds | 3.3%
Argentina | 0.6%
AES Argentina Generacion SA, 7.750%, 02/02/24	USD		480	$	519,864
Empresa Distribuidora Y Comercializadora Norte, 9.750%, 10/25/22	USD		875		951,562
Genneia SA, 8.750%, 01/20/22 (#)	USD		320		351,677
					1,823,103
Brazil | 0.8%
Petrobras Global Finance BV, 8.375%, 05/23/21	USD		1,973		2,250,207
Chile | 0.2%
AES Gener SA, 8.375%, 12/18/73	USD		590		617,004
Georgia | 0.2%
BGEO Group JSC, 6.000%, 07/26/23	USD		375		389,503
Guatemala | 0.1%
Comcel Trust, 6.875%, 02/06/24	USD		295		305,157
India | 0.2%
Neerg Energy, Ltd., 6.000%, 02/13/22 (#)	USD		200		204,522
Vedanta Resources PLC, 6.375%, 07/30/22 (#)	USD		450		469,710
					674,232
Mauritius | 0.2%
Liquid Telecommunications Financing PLC, 8.500%, 07/13/22 (#)	USD		490		516,210
Peru | 0.4%
Banco de Credito del Peru, 4.850%, 10/30/20 (#)	PEN		2,300		711,989
Fondo MIVIVIENDA SA, 7.000%, 02/14/24	PEN		960		315,820
					1,027,809

Description	Security Currency	Principal Amount (000)		Fair Value
Russia | 0.4%
GTH Finance BV, 7.250%, 04/26/23	USD		500	$	562,000
Sberbank of Russia, 5.500%, 02/26/24 (§)	USD		600		609,180
					1,171,180
Turkey | 0.2%
Turkiye Is Bankasi, 5.500%, 04/21/19	USD		590		601,054
Total Corporate Bonds
(Cost $8,974,572)					9,375,459
Foreign Government Obligations | 89.5%
Angola | 1.2%
Republic of Angola, 9.500%, 11/12/25	USD		2,752		3,171,680
Republic of Angola Northern Lights III BV, 7.000%, 08/17/19	USD		142		146,276
					3,317,956
Argentina | 5.0%
Provincia de Buenos Aires, 7.875%, 06/15/27	USD		775		858,312
Republic of Argentina:
26.055% (BADLARPP
+ 2.750%), 03/01/18 (§)	ARS		6,340		338,467
22.750%, 03/05/18	ARS		12,670		629,240
21.200%, 09/19/18	ARS		3,380		176,054
25.854% (BADLARPP
+ 2.500%), 03/11/19 (§)	ARS		1,010		54,469
5.625%, 01/26/22	USD		1,500		1,580,250
7.500%, 04/22/26	USD		1,910		2,159,255
15.500%, 10/17/26	ARS		7,540		405,321
6.875%, 01/26/27	USD		1,775		1,939,631
6.625%, 07/06/28	USD		250		268,188
7.125%, 07/06/36	USD		605		655,064
7.625%, 04/22/46	USD		1,980		2,237,895
7.125%, 06/28/2117	USD		730		753,907
7.125%, 06/28/2117 (#)	USD		2,280		2,354,670
					14,410,723

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)
Azerbaijan | 0.4%
Republic of Azerbaijan, 4.750%, 03/18/24	USD		1,150	$	1,188,812
Belarus | 0.2%
Republic of Belarus, 6.875%, 02/28/23 (#)	USD		460		495,075
Belize | 0.0%
Republic of Belize, 4.938%, 02/20/34 (Ø)	USD		185		109,844
Brazil | 10.6%
Brazil Letras do Tesouro Nacional:
0.000%, 01/01/19	BRL		4,950		1,396,930
0.000%, 01/01/20	BRL		30,960		7,978,885
0.000%, 07/01/20	BRL		16,700		4,095,649
Brazil NTN-B, 6.000%, 08/15/50	BRL		3,338		3,302,467
Brazil NTN-F:
10.000%, 01/01/21	BRL		14,050		4,357,935
10.000%, 01/01/23	BRL		8,550		2,608,046
10.000%, 01/01/25	BRL		5,190		1,561,077
10.000%, 01/01/27	BRL		6,465		1,928,089
Federal Republic of Brazil:
4.250%, 01/07/25	USD		375		382,031
4.625%, 01/13/28	USD		1,101		1,106,505
8.250%, 01/20/34	USD		610		799,100
5.000%, 01/27/45	USD		1,170		1,091,025
					30,607,739
Cameroon | 0.1%
Republic of Cameroon, 9.500%, 11/19/25	USD		225		270,000
Chile | 1.3%
Bonos de la Tesoreria de la Republica en pesos:
4.500%, 02/28/21	CLP		110,000		185,731
4.500%, 03/01/26	CLP		1,185,000		1,924,273
5.000%, 03/01/35	CLP		500,000		808,861
6.000%, 01/01/43	CLP		405,000		723,138
					3,642,003

Description	Security Currency	Principal Amount (000)		Fair Value
Colombia | 4.8%
Colombian Titulos De Tesoreria:
11.000%, 07/24/20	COP		2,467,000	$	938,239
7.000%, 05/04/22	COP		5,440,000		1,908,878
10.000%, 07/24/24	COP		15,887,500		6,406,819
7.500%, 08/26/26	COP		6,127,000		2,183,284
6.000%, 04/28/28	COP		2,755,000		881,507
Republic of Colombia, 5.000%, 06/15/45	USD		1,335		1,413,765
					13,732,492
Czech Republic | 1.5%
Czech Republic:
1.500%, 10/29/19	CZK		13,680		655,919
2.500%, 08/25/28	CZK		73,570		3,710,562
					4,366,481
Dominican Republic | 0.9%
Dominican Republic:
5.500%, 01/27/25	USD		705		744,656
6.875%, 01/29/26 (#)	USD		405		463,427
6.875%, 01/29/26	USD		210		240,296
7.450%, 04/30/44	USD		655		784,363
6.850%, 01/27/45	USD		355		399,174
					2,631,916
Ecuador | 1.8%
Republic of Ecuador:
10.500%, 03/24/20	USD		200		221,250
10.500%, 03/24/20 (#)	USD		210		232,312
10.750%, 03/28/22 (#)	USD		325		380,785
10.750%, 03/28/22	USD		1,138		1,333,332
Republic Of Ecuador, 8.750%, 06/02/23	USD		460		507,649
Republic of Ecuador:
7.950%, 06/20/24	USD		410		435,625
9.650%, 12/13/26	USD		1,480		1,699,684
8.875%, 10/23/27 (#)	USD		460		504,020
					5,314,657
Egypt | 2.3%
Arab Republic of Egypt:
7.500%, 01/31/27	USD		510		562,913
8.500%, 01/31/47 (#)	USD		1,290		1,481,887
8.500%, 01/31/47	USD		2,640		3,032,700
Egypt Treasury Bills:
0.000%, 07/10/18	EGP		1,500		76,597
0.000%, 07/24/18	EGP		29,000		1,481,724
					6,635,821

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)
El Salvador | 1.7%
Republic of El Salvador:
7.375%, 12/01/19	USD		1,725	$	1,825,818
7.750%, 01/24/23	USD		345		378,206
5.875%, 01/30/25	USD		1,146		1,153,163
6.375%, 01/18/27	USD		220		224,675
8.625%, 02/28/29	USD		450		527,177
8.250%, 04/10/32	USD		145		166,750
7.650%, 06/15/35	USD		280		303,450
7.625%, 02/01/41	USD		170		184,025
					4,763,264
Ethiopia | 0.1%
Federal Republic of Ethiopia, 6.625%, 12/11/24	USD		270		283,162
Gabon | 0.2%
Gabonese Republic, 6.375%, 12/12/24	USD		620		628,525
Ghana | 0.8%
Ghana Government Bonds:
23.230%, 02/19/18	GHS		460		102,399
22.490%, 04/23/18	GHS		150		33,642
23.470%, 05/21/18	GHS		390		87,835
19.040%, 09/24/18	GHS		50		11,178
Ghana Treasury Notes:
22.500%, 12/10/18	GHS		440		101,518
21.000%, 01/07/19	GHS		2,930		668,825
Republic of Ghana:
9.250%, 09/15/22	USD		895		1,013,587
7.875%, 08/07/23	USD		215		235,694
					2,254,678
Honduras | 0.2%
Republic of Honduras:
8.750%, 12/16/20	USD		310		347,200
6.250%, 01/19/27	USD		155		165,496
					512,696
Hungary | 0.7%
Hungary Government Bonds:
6.000%, 11/24/23	HUF		325,920		1,592,712
5.500%, 06/24/25	HUF		70,150		341,126
					1,933,838

Description	Security Currency	Principal Amount (000)		Fair Value
India | 1.3%
India Government Bonds, 7.720%, 05/25/25	INR		240,000	$	3,848,743
Indonesia | 5.4%
Indonesia Government Bonds:
7.875%, 04/15/19	IDR		20,328,000		1,540,238
8.375%, 03/15/24	IDR		16,703,000		1,365,294
8.375%, 09/15/26	IDR		37,074,000		3,079,594
7.000%, 05/15/27	IDR		2,543,000		195,733
9.000%, 03/15/29	IDR		8,440,000		729,691
8.750%, 05/15/31	IDR		39,099,000		3,345,065
7.500%, 08/15/32	IDR		22,532,000		1,744,185
8.375%, 03/15/34	IDR		14,838,000		1,220,779
8.250%, 05/15/36	IDR		25,137,000		2,057,899
Republic of Indonesia, 6.750%, 01/15/44	USD		275		365,498
					15,643,976
Iraq | 0.2%
Iraq International Bonds, 6.752%, 03/09/23 (#)	USD		310		317,000
Republic of Iraq, 5.800%, 01/15/28	USD		425		409,594
					726,594
Ivory Coast | 0.5%
Ivory Coast:
5.750%, 12/31/32 (Ø)	USD		1,246		1,243,339
6.125%, 06/15/33 (#)	USD		200		203,250
					1,446,589
Jordan | 0.5%
Kingdom of Jordan:
6.125%, 01/29/26 (#)	USD		155		159,650
5.750%, 01/31/27 (#)	USD		400		396,800
7.375%, 10/10/47 (#)	USD		740		770,979
					1,327,429
Kenya | 0.2%
Republic of Kenya, 6.875%, 06/24/24	USD		565		601,725
Lebanon | 2.4%
Lebanese Republic:
6.375%, 03/09/20	USD		115		114,906
6.150%, 06/19/20	USD		130		128,740
8.250%, 04/12/21	USD		267		278,348
6.000%, 01/27/23	USD		1,425		1,362,656
6.650%, 04/22/24	USD		2,047		1,990,708

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

54   Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
6.250%, 11/04/24	USD		919	$	874,199
6.600%, 11/27/26	USD		899		856,297
6.850%, 03/23/27	USD		670		647,388
6.650%, 11/03/28	USD		702		656,370
					6,909,612
Malaysia | 3.2%
Malaysia Government Bonds:
3.580%, 09/28/18	MYR		1,540		382,247
4.048%, 09/30/21	MYR		18,570		4,658,253
3.620%, 11/30/21	MYR		1,330		329,295
3.882%, 03/10/22	MYR		380		95,092
3.795%, 09/30/22	MYR		7,300		1,805,696
3.955%, 09/15/25	MYR		480		117,924
4.498%, 04/15/30	MYR		4,070		1,002,053
3.844%, 04/15/33	MYR		580		133,819
4.254%, 05/31/35	MYR		2,950		695,509
					9,219,888
Mexico | 6.2%
Mexican Bonos:
5.000%, 12/11/19	MXN		135,532		6,568,950
6.500%, 06/09/22	MXN		13,000		633,046
10.000%, 12/05/24	MXN		18,287		1,047,705
7.500%, 06/03/27	MXN		17,700		889,313
7.750%, 05/29/31	MXN		45,880		2,333,036
10.000%, 11/20/36	MXN		34,719		2,152,475
7.750%, 11/13/42	MXN		49,580		2,505,460
United Mexican States:
6.050%, 01/11/40	USD		580		681,645
5.750%, 10/12/49	USD		1,034		1,090,612
					17,902,242
Mongolia | 0.3%
Mongolia International Bonds:
10.875%, 04/06/21	USD		145		170,194
5.125%, 12/05/22	USD		285		282,150
5.625%, 05/01/23 (#)	USD		230		231,725
8.750%, 03/09/24 (#)	USD		220		253,345
					937,414
Mozambique | 0.6%
Mozambique International Bonds, 10.500%, 01/18/23	USD		2,268		1,859,760
Namibia | 0.2%
Republic of Namibia, 5.250%, 10/29/25	USD		495		503,662

Description	Security Currency	Principal Amount (000)		Fair Value
Nigeria | 0.8%
Republic of Nigeria:
6.500%, 11/28/27 (#)	USD		800	$	833,619
7.875%, 02/16/32 (#)	USD		485		548,656
7.625%, 11/28/47 (#)	USD		970		1,040,294
					2,422,569
Paraguay | 0.8%
Republic of Paraguay:
4.700%, 03/27/27 (#)	USD		680		711,535
6.100%, 08/11/44	USD		1,335		1,523,569
					2,235,104
Peru | 1.2%
Republic of Peru:
6.950%, 08/12/31	PEN		5,730		2,009,317
6.900%, 08/12/37	PEN		4,140		1,431,670
					3,440,987
Philippines | 0.2%
Republic of Philippines, 3.625%, 09/09/25	PHP		29,000		530,240
Poland | 3.8%
Poland Government Bonds:
0.000%, 10/25/18	PLN		14,470		4,108,109
1.500%, 04/25/20	PLN		2,690		765,792
5.250%, 10/25/20	PLN		1,900		594,194
3.250%, 07/25/25	PLN		18,720		5,430,330
					10,898,425
Romania | 0.3%
Romanian Government Bonds, 4.750%, 02/24/25	RON		2,780		739,007
Russia | 7.6%
Russia Foreign Bonds:
4.750%, 05/27/26 (#)	USD		200		212,500
5.625%, 04/04/42	USD		600		672,000
5.250%, 06/23/47 (#)	USD		200		209,000
5.250%, 06/23/47	USD		800		836,000
Russia Government Bonds - OFZ:
6.400%, 05/27/20	RUB		48,900		839,476
7.600%, 04/14/21	RUB		77,100		1,368,065
7.500%, 08/18/21	RUB		118,740		2,095,449
7.000%, 12/15/21	RUB		80,950		1,395,993
7.000%, 08/16/23	RUB		69,790		1,213,056
7.750%, 09/16/26	RUB		341,800		6,064,199
7.050%, 01/19/28	RUB		174,410		2,942,921
8.500%, 09/17/31	RUB		214,500		4,026,235
					21,874,894

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

Annual Report   55

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
South Africa | 6.5%
Republic of South Africa:
7.250%, 01/15/20	ZAR		24,620	$	1,985,392
5.875%, 09/16/25	USD		760		826,500
10.500%, 12/21/26	ZAR		79,240		7,141,431
8.250%, 03/31/32	ZAR		70,870		5,222,423
8.500%, 01/31/37	ZAR		20,230		1,467,395
5.650%, 09/27/47	USD		720		736,200
8.750%, 02/28/48	ZAR		16,680		1,216,087
					18,595,428
Sri Lanka | 1.0%
Republic of Sri Lanka:
5.750%, 01/18/22 (#)	USD		470		491,150
5.750%, 01/18/22	USD		200		208,908
5.875%, 07/25/22	USD		200		210,500
6.125%, 06/03/25	USD		535		564,425
6.850%, 11/03/25 (#)	USD		1,040		1,145,300
6.850%, 11/03/25	USD		235		258,794
					2,879,077
Suriname | 0.1%
Republic of Suriname, 9.250%, 10/26/26	USD		150		159,559
Tajikistan | 0.1%
Republic of Tajikistan International Bonds, 7.125%, 09/14/27 (#)	USD		190		181,845
Thailand | 2.3%
Thailand Government Bonds:
3.625%, 06/16/23	THB		4,210		140,391
3.850%, 12/12/25	THB		88,353		3,025,935
3.580%, 12/17/27	THB		18,170		607,732
4.875%, 06/22/29	THB		34,800		1,306,679
3.650%, 06/20/31	THB		41,550		1,400,388
					6,481,125
Turkey | 4.8%
Republic of Turkey:
6.625%, 02/17/45	USD		608		658,160
5.750%, 05/11/47	USD		385		376,337
Turkey Government Bonds:
8.500%, 07/10/19	TRY		14,780		3,652,596
10.700%, 02/17/21	TRY		9,755		2,441,002

Description	Security Currency	Principal Amount (000)		Fair Value
9.500%, 01/12/22	TRY		860	$	208,846
7.100%, 03/08/23	TRY		4,050		874,535
9.000%, 07/24/24	TRY		4,460		1,044,844
8.000%, 03/12/25	TRY		20,760		4,534,832
					13,791,152
Ukraine | 2.7%
Ukraine Government Bonds:
7.750%, 09/01/19 (#)	USD		36		37,800
7.750%, 09/01/19	USD		1,375		1,443,750
7.750%, 09/01/20 (#)	USD		182		192,693
7.750%, 09/01/20	USD		965		1,021,694
7.750%, 09/01/21	USD		100		106,500
7.750%, 09/01/22	USD		1,585		1,684,062
7.750%, 09/01/24	USD		710		747,275
7.750%, 09/01/26	USD		1,385		1,430,012
7.750%, 09/01/27	USD		690		714,626
7.375%, 09/25/32 (#)	USD		430		422,642
					7,801,054
Uruguay | 1.1%
Republica Orient Uruguay:
4.125%, 11/20/45	USD		690		695,175
5.100%, 06/18/50	USD		430		479,450
Uruguay Treasury Bills:
0.000%, 05/18/18	UYU		5,510		185,912
0.000%, 06/01/18	UYU		4,510		151,397
0.000%, 06/08/18	UYU		24,060		807,640
0.000%, 07/27/18	UYU		12,030		398,349
0.000%, 09/21/18	UYU		13,000		424,842
					3,142,765
Venezuela | 0.2%
Republic of Venezuela:
7.750%, 10/13/19 (∏)	USD		245		54,819
6.000%, 12/09/20	USD		121		27,074
12.750%, 08/23/22	USD		290		63,075
9.000%, 05/07/23 (∏)	USD		156		32,370
8.250%, 10/13/24	USD		252		51,345
7.650%, 04/21/25 (∏)	USD		140		28,700
11.750%, 10/21/26 (∏)	USD		254		56,197
9.250%, 09/15/27	USD		322		70,035
9.250%, 05/07/28 (∏)	USD		192		39,120
11.950%, 08/05/31	USD		392		79,870
9.375%, 01/13/34	USD		136		28,390
7.000%, 03/31/38	USD		170		34,637
					565,632

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

56   Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
Zambia | 1.2%
Republic of Zambia:
5.375%, 09/20/22	USD		215	$	209,625
8.500%, 04/14/24	USD		2,685		2,966,925
8.970%, 07/30/27	USD		300		337,125
					3,513,675
Total Foreign Government Obligations
(Cost $253,078,316)					257,279,854
Quasi Government Bonds | 4.5%
Argentina | 0.3%
Letras Banco Cent Argentina:
0.000%, 04/18/18	ARS		6,290		311,005
0.000%, 06/21/18	ARS		11,150		528,159
					839,164
Azerbaijan | 0.1%
State Oil Co. of the Azerbaijan Republic, 4.750%, 03/13/23	USD		330		334,135
Brazil | 0.2%
Caixa Economica Federal:
3.500%, 11/07/22	USD		290		282,083
7.250%, 07/23/24 (§)	USD		270		274,725
					556,808
Ecuador | 0.1%
EP Petroecuador, 7.316% (USD LIBOR 3 Month + 5.630%), 09/24/19 (§)	USD		212		216,608
Indonesia | 0.5%
PT Pertamina Persero, 6.000%, 05/03/42	USD		630		715,208
PT Perusahaan Listrik Negara, 5.250%, 05/15/47 (#)	USD		670		697,765
					1,412,973
Mexico | 0.5%
Petroleos Mexicanos, 5.500%, 06/27/44	USD		1,525		1,402,939

Description	Security Currency	Principal Amount (000)		Fair Value
Peru | 0.1%
Petroleos del Peru SA, 5.625%, 06/19/47 (#)	USD		230	$	241,500
South Africa | 0.7%
Eskom Holdings SOC, Ltd.:
5.750%, 01/26/21	USD		605		598,635
6.750%, 08/06/23	USD		685		697,267
7.850%, 04/02/26	ZAR		9,000		649,088
					1,944,990
Tunisia | 0.1%
Banque Centrale de Tunisie SA, 5.750%, 01/30/25	USD		360		358,200
Turkey | 1.0%
Export Credit Bank of Turkey:
5.875%, 04/24/19	USD		500		514,375
5.375%, 02/08/21	USD		535		547,114
4.250%, 09/18/22 (#)	USD		925		900,719
TC Ziraat Bankasi AS:
4.750%, 04/29/21	USD		280		277,213
5.125%, 05/03/22	USD		675		669,227
					2,908,648
Ukraine | 0.7%
Ukreximbank Via Biz Finance PLC:
9.625%, 04/27/22	USD		265		282,967
9.750%, 01/22/25	USD		1,495		1,614,600
					1,897,567
Venezuela | 0.2%
Petroleos de Venezuela SA:
8.500%, 10/27/20	USD		221		179,707
9.000%, 11/17/21 (∏)	USD		251		69,653
12.750%, 02/17/22	USD		273		75,730
6.000%, 05/16/24 (∏)	USD		346		77,504
6.000%, 11/15/26 (∏)	USD		414		90,666
5.375%, 04/12/27 (∏)	USD		292		67,890
9.750%, 05/17/35 (∏)	USD		295		79,208
5.500%, 04/12/37 (∏)	USD		100		23,750
					664,108
Total Quasi Government Bonds
(Cost $13,273,740)					12,777,640

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

Annual Report   57

Description	Shares		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
Short-Term Investments | 0.8%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $2,421,122)		2,421,122	$	2,421,122

Description	Fair Value
Total Investments | 98.1%
(Cost $277,747,750) (¤)	$	281,854,075
Cash and Other Assets in Excess of Liabilities | 1.9%		5,474,837
Net Assets | 100.0%	$	287,328,912

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

58   Annual Report

Lazard Emerging Markets Debt Portfolio (continued)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
ARS		26,085,000	USD		1,410,000	CIT	01/30/18	$	—	$	29,476
ARS		16,245,110	USD		871,519	CIT	02/14/18		—		18,677
ARS		1,441,862	USD		73,602	HSB	05/10/18		—		1,209
ARS		2,915,175	USD		148,961	HSB	05/10/18		—		2,597
ARS		6,772,900	USD		372,957	JPM	02/14/18		—		17,391
BRL		2,886,840	USD		880,000	BRC	02/09/18		—		13,293
CLP		513,730,912	USD		816,807	BOA	02/16/18		17,851		—
CZK		104,362,932	USD		4,925,568	BOA	01/19/18		—		20,086
CZK		9,669,556	USD		448,433	BOA	03/20/18		7,374		—
CZK		9,669,556	USD		448,745	SCB	03/20/18		7,062		—
CZK		39,355,810	USD		1,825,155	UBS	03/20/18		30,012		—
HUF		418,509,362	USD		1,571,984	BOA	03/20/18		50,142		—
HUF		418,509,362	USD		1,572,575	JPM	03/20/18		49,551		—
HUF		418,509,362	USD		1,572,575	SCB	03/20/18		49,551		—
HUF		418,509,360	USD		1,572,752	UBS	03/20/18		49,374		—
IDR		9,532,350,000	USD		690,000	BOA	03/20/18		7,744		—
IDR		787,199,695	USD		55,534	BRC	01/05/18		2,477		—
IDR		1,345,140,199	USD		94,795	BRC	01/05/18		4,334		—
IDR		1,530,229,664	USD		107,953	BRC	01/05/18		4,816		—
IDR		1,821,047,253	USD		132,778	BRC	01/05/18		1,422		—
IDR		1,992,480,809	USD		145,969	BRC	01/05/18		864		—
IDR		3,789,045,659	USD		277,484	BRC	01/05/18		1,745		—
IDR		3,956,043,386	USD		279,777	BRC	01/05/18		11,760		—
IDR		7,151,754,174	USD		529,172	BRC	01/05/18		—		2,131
IDR		2,887,250,438	USD		212,376	BRC	01/08/18		346		—
IDR		3,868,555,224	USD		272,242	BRC	01/08/18		12,780		—
IDR		4,147,970,000	USD		302,000	BRC	01/08/18		3,608		—
IDR		7,573,887,656	USD		543,515	BRC	01/08/18		14,502		—
IDR		470,249,986	USD		34,138	BRC	03/20/18		283		—
IDR		2,039,876,289	USD		149,070	BRC	03/20/18		244		—
IDR		27,452,321,644	USD		1,988,578	BRC	06/05/18		5,283		—
IDR		1,881,865,525	USD		137,222	CIT	01/05/18		1,460		—
IDR		1,929,085,187	USD		136,061	CIT	01/05/18		6,101		—
IDR		5,219,910,437	USD		368,508	CIT	01/05/18		16,168		—
IDR		6,236,713,482	USD		439,761	CIT	01/05/18		19,846		—
IDR		11,152,379,368	USD		786,047	CIT	01/05/18		35,815		—
IDR		12,730,560,000	USD		894,000	CIT	01/05/18		44,165		—
IDR		5,795,816,130	USD		406,867	CIT	01/08/18		20,149		—
IDR		11,575,279,472	USD		812,528	CIT	01/08/18		40,297		—
IDR		2,039,876,287	USD		148,994	CIT	03/20/18		320		—
IDR		27,452,321,644	USD		1,990,741	CIT	06/05/18		3,120		—
IDR		2,422,577,808	USD		170,905	JPM	01/05/18		7,624		—
IDR		2,548,455,691	USD		179,722	JPM	01/05/18		8,084		—

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

Annual Report  59

Lazard Emerging Markets Debt Portfolio (continued)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
IDR		4,268,189,847	USD		301,716	JPM	01/05/18	$	12,824	$	—
IDR		16,339,780,007	USD		1,208,564	JPM	01/05/18		—		4,421
IDR		8,669,303,615	USD		621,678	JPM	01/08/18		17,045		—
IDR		2,039,876,289	USD		149,125	JPM	03/20/18		189		—
IDR		2,561,179,325	USD		185,862	JPM	03/20/18		1,610		—
IDR		2,925,300,000	USD		210,000	JPM	03/20/18		4,125		—
IDR		3,444,138,720	USD		253,320	JPM	03/20/18		—		1,218
IDR		27,452,321,644	USD		1,989,299	JPM	06/05/18		4,562		—
IDR		3,331,019,192	USD		244,031	SCB	01/05/18		1,445		—
IDR		4,077,400,000	USD		290,000	SCB	01/05/18		10,480		—
IDR		4,540,504,341	USD		332,516	SCB	01/05/18		2,092		—
IDR		12,882,540,000	USD		894,000	SCB	01/05/18		55,365		—
IDR		13,140,158,637	USD		972,265	SCB	01/05/18		—		3,915
IDR		9,960,825,372	USD		714,806	SCB	01/08/18		19,072		—
IDR		2,039,876,289	USD		149,048	SCB	03/20/18		265		—
IDR		3,626,047,960	USD		266,680	SCB	03/20/18		—		1,262
IDR		27,452,321,644	USD		1,989,875	SCB	06/05/18		3,986		—
IDR		2,548,455,691	USD		179,722	UBS	01/05/18		8,084		—
INR		9,362,800	USD		142,400	BRC	01/05/18		4,253		—
INR		12,514,410	USD		189,900	BRC	01/05/18		6,118		—
INR		12,763,668	USD		193,800	BRC	01/05/18		6,122		—
INR		23,024,843	USD		352,844	BRC	01/05/18		7,803		—
INR		91,295,200	USD		1,390,000	BRC	03/19/18		27,252		—
INR		92,629,950	USD		1,410,000	BRC	03/19/18		27,972		—
INR		9,375,616	USD		142,400	JPM	01/05/18		4,454		—
INR		26,226,079	USD		397,800	JPM	01/05/18		12,989		—
INR		12,503,016	USD		189,900	SCB	01/05/18		5,939		—
INR		12,761,730	USD		193,800	SCB	01/05/18		6,092		—
KRW		198,510,853	USD		178,069	BRC	01/08/18		7,397		—
KRW		577,655,046	USD		530,226	BRC	01/08/18		9,469		—
KRW		716,662,378	USD		645,003	BRC	01/08/18		24,565		—
KRW		198,555,370	USD		178,069	BRC	01/12/18		7,457		—
KRW		207,149,587	USD		186,403	BRC	01/12/18		7,153		—
KRW		207,503,753	USD		186,403	BRC	01/12/18		7,484		—
KRW		207,727,436	USD		186,403	BRC	01/12/18		7,693		—
KRW		285,661,762	USD		255,901	CIT	01/12/18		11,016		—
KRW		353,773,917	USD		317,762	CIT	01/12/18		12,796		—
KRW		410,979,433	USD		369,997	JPM	01/08/18		13,975		—
KRW		572,100,772	USD		512,290	JPM	01/08/18		22,216		—
KRW		225,555,996	USD		202,948	JPM	01/12/18		7,807		—
KRW		455,244,941	USD		408,420	JPM	01/12/18		16,951		—
KRW		481,794,362	USD		431,712	JPM	01/12/18		18,467		—
KRW		163,883,562	USD		146,573	SCB	01/08/18		6,541		—

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

60  Annual Report

Lazard Emerging Markets Debt Portfolio (continued)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
KRW		88,569,627	USD		79,463	SCB	01/12/18	$	3,294	$	—
KRW		189,377,951	USD		170,120	SCB	01/12/18		6,830		—
KRW		316,705,419	USD		284,935	SCB	01/12/18		10,987		—
MXN		10,481,860	USD		547,413	BOA	01/19/18		—		15,883
MYR		4,190,913	USD		1,026,681	SCB	03/22/18		6,059		—
PEN		445,548	USD		137,282	BOA	03/16/18		—		269
PEN		445,547	USD		137,281	BRC	03/16/18		—		269
PEN		445,547	USD		137,290	SCB	03/16/18		—		278
PLN		3,837,378	USD		1,070,697	BOA	03/12/18		31,872		—
PLN		7,674,756	USD		2,141,170	JPM	03/12/18		63,967		—
PLN		3,837,378	USD		1,070,897	SCB	03/12/18		31,671		—
PLN		3,837,376	USD		1,070,562	UBS	03/12/18		32,006		—
RON		12,448,605	USD		3,171,660	BOA	01/19/18		29,417		—
RUB		3,637,090	USD		60,673	BRC	01/10/18		2,436		—
RUB		21,035,333	USD		354,578	BRC	01/10/18		10,413		—
RUB		33,128,926	USD		561,602	BRC	01/10/18		13,228		—
RUB		38,505,675	USD		650,000	BRC	01/10/18		18,124		—
RUB		33,517,796	USD		559,327	CIT	01/10/18		22,251		—
RUB		33,128,925	USD		561,602	JPM	01/10/18		13,228		—
RUB		20,488,713	USD		345,422	SCB	01/10/18		10,084		—
RUB		21,750,450	USD		370,000	SCB	01/10/18		7,399		—
RUB		25,756,500	USD		440,000	SCB	01/10/18		6,909		—
RUB		33,128,925	USD		561,698	SCB	01/10/18		13,133		—
THB		49,305,590	USD		1,490,000	BRC	01/19/18		23,570		—
THB		88,261,472	USD		2,658,078	HSB	01/19/18		51,349		—
THB		8,783,370	USD		270,000	SCB	01/19/18		—		370
THB		18,178,600	USD		550,000	SCB	01/19/18		8,042		—
TRY		106,406	USD		27,733	BOA	01/31/18		96		—
TRY		986,420	USD		256,466	BOA	01/31/18		1,519		—
TRY		1,142,595	USD		300,335	BOA	01/31/18		—		1,505
TRY		2,376,232	USD		624,617	BOA	01/31/18		—		3,146
TRY		2,475,897	USD		647,446	BOA	01/31/18		92		—
TRY		3,438,092	USD		893,824	BOA	01/31/18		5,363		—
TRY		51,897	USD		14,059	BRC	01/31/18		—		486
TRY		412,786	USD		107,326	BRC	01/31/18		633		—
TRY		1,256,113	USD		340,000	SCB	01/31/18		—		11,480
TRY		1,549,087	USD		402,674	SCB	01/31/18		2,469		—
TRY		2,488,959	USD		660,000	SCB	01/31/18		—		9,046
TWD		5,746,708	USD		189,974	BRC	01/08/18		3,182		—
TWD		12,414,238	USD		413,877	BRC	01/08/18		3,384		—
TWD		30,020,000	USD		1,000,000	BRC	01/08/18		9,018		—
TWD		4,707,416	USD		156,237	BRC	01/12/18		2,019		—
TWD		7,825,878	USD		261,735	BRC	01/12/18		1,358		—

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

Annual Report  61

Lazard Emerging Markets Debt Portfolio (continued)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
TWD		8,225,982	USD		273,252	BRC	01/12/18	$	3,292	$	—
TWD		8,231,174	USD		273,252	BRC	01/12/18		3,467		—
TWD		8,953,508	USD		295,959	CIT	01/08/18		4,982		—
TWD		12,182,115	USD		406,091	JPM	01/08/18		3,368		—
TWD		6,222,322	USD		206,722	JPM	01/12/18		2,463		—
TWD		6,226,456	USD		206,722	JPM	01/12/18		2,602		—
TWD		15,227,489	USD		505,192	JPM	01/12/18		6,732		—
TWD		2,695,533	USD		90,016	SCB	01/08/18		585		—
TWD		5,310,493	USD		175,495	SCB	01/08/18		2,998		—
TWD		2,703,185	USD		90,016	SCB	01/12/18		861		—
TWD		5,459,975	USD		181,455	SCB	01/12/18		2,101		—
TWD		5,464,511	USD		181,455	SCB	01/12/18		2,253		—
USD		490,000	ARS		9,393,300	JPM	01/30/18		—		7,132
USD		1,586,906	BRL		5,155,857	BOA	02/09/18		38,979		—
USD		419,246	BRL		1,468,619	BRC	02/09/18		—		21,673
USD		1,587,346	BRL		5,155,857	BRC	02/09/18		39,419		—
USD		683,822	BRL		2,402,610	JPM	02/09/18		—		37,506
USD		193,017	BRL		640,586	SCB	02/09/18		696		—
USD		193,109	BRL		676,308	SCB	02/09/18		—		9,936
USD		693,920	BRL		2,285,218	SCB	02/09/18		7,836		—
USD		1,587,150	BRL		5,155,857	SCB	02/09/18		39,223		—
USD		2,401,525	BRL		7,897,175	SCB	02/09/18		30,581		—
USD		683,822	BRL		2,402,063	UBS	02/09/18		—		37,341
USD		173,897	COP		526,385,402	BOA	01/19/18		—		2,219
USD		170,000	COP		508,725,000	SCB	01/19/18		—		207
USD		3,647,522	EUR		3,091,186	BRC	01/19/18		—		64,884
USD		112,200	IDR		1,523,115,000	BRC	01/05/18		—		44
USD		149,600	IDR		2,034,934,000	BRC	01/05/18		—		362
USD		150,715	IDR		2,050,472,541	BRC	01/05/18		—		393
USD		152,000	IDR		2,065,376,000	BRC	01/05/18		—		206
USD		2,018,553	IDR		27,452,321,644	BRC	01/05/18		—		4,516
USD		2,437,364	IDR		33,360,205,722	BRC	01/08/18		—		20,497
USD		209,342	IDR		2,887,250,438	BRC	06/05/18		—		358
USD		195,624	IDR		2,661,464,520	CIT	01/05/18		—		510
USD		2,020,038	IDR		27,452,321,644	CIT	01/05/18		—		3,030
USD		1,542,636	IDR		21,118,682,185	CIT	01/08/18		—		13,314
USD		112,200	IDR		1,525,920,000	JPM	01/05/18		—		251
USD		2,019,295	IDR		27,452,321,644	JPM	01/05/18		—		3,773
USD		1,224,052	IDR		16,720,550,000	JPM	03/20/18		150		—
USD		136,061	IDR		1,852,475,416	SCB	01/05/18		—		455
USD		149,600	IDR		2,033,812,000	SCB	01/05/18		—		280
USD		152,000	IDR		2,065,680,000	SCB	01/05/18		—		228
USD		2,019,593	IDR		27,452,321,644	SCB	01/05/18		—		3,476

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

62  Annual Report

Lazard Emerging Markets Debt Portfolio (continued)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
USD		7,725	INR		498,919	BRC	01/05/18	$	—	$	90
USD		580,000	INR		37,584,000	BRC	01/05/18		—		8,692
USD		1,232,844	INR		80,449,243	CIT	01/05/18		—		27,262
USD		3,902,630	INR		258,802,933	SCB	03/19/18		—		114,984
USD		579,222	KRW		659,948,011	BRC	01/08/18		—		37,359
USD		13,326	KRW		14,872,184	BRC	01/12/18		—		570
USD		516,753	KRW		562,955,894	BRC	01/12/18		—		9,261
USD		578,912	KRW		659,948,011	BRC	01/12/18		—		37,729
USD		579,181	KRW		659,948,011	CIT	01/08/18		—		37,399
USD		578,547	KRW		659,948,010	CIT	01/12/18		—		38,094
USD		579,334	KRW		659,948,011	JPM	01/08/18		—		37,247
USD		578,810	KRW		659,948,011	JPM	01/12/18		—		37,830
USD		579,410	KRW		659,948,011	SCB	01/08/18		—		37,170
USD		579,054	KRW		659,948,011	SCB	01/12/18		—		37,587
USD		209,249	MXN		3,993,618	BOA	01/19/18		6,734		—
USD		2,189,905	MYR		8,945,760	SCB	02/20/18		—		16,668
USD		550,305	RUB		32,522,221	BOA	01/10/18		—		13,998
USD		619,279	RUB		36,456,637	BOA	01/10/18		—		13,292
USD		221,479	RUB		13,038,681	BRC	01/10/18		—		4,760
USD		309,191	RUB		18,059,231	BRC	01/10/18		—		4,160
USD		443,525	RUB		26,097,878	BRC	01/10/18		—		9,308
USD		550,291	RUB		32,522,221	BRC	01/10/18		—		14,012
USD		203,628	RUB		12,047,622	BRC	01/16/18		—		5,252
USD		205,540	RUB		12,146,373	BRC	01/16/18		—		5,052
USD		81,017	RUB		4,812,471	BRC	03/19/18		—		1,701
USD		199,255	RUB		11,839,714	BRC	03/19/18		—		4,249
USD		218,733	RUB		13,039,781	BRC	03/19/18		—		5,398
USD		401,862	RUB		24,166,800	BRC	03/19/18		—		13,522
USD		556,429	RUB		33,128,926	BRC	03/19/18		—		13,000
USD		644,144	RUB		38,419,950	BRC	03/19/18		—		16,228
USD		213,706	RUB		12,644,230	BRC	03/22/18		—		3,546
USD		213,758	RUB		12,649,122	BRC	03/22/18		—		3,578
USD		427,665	RUB		25,288,460	BRC	03/22/18		—		6,840
USD		492,032	RUB		29,134,457	BRC	03/22/18		—		8,554
USD		132,905	RUB		7,814,799	CIT	01/10/18		—		2,692
USD		550,361	RUB		32,522,223	CIT	01/10/18		—		13,942
USD		550,128	RUB		32,522,221	JPM	01/10/18		—		14,175
USD		556,424	RUB		33,128,925	JPM	03/19/18		—		13,004
USD		551,420	RUB		32,522,221	SCB	01/10/18		—		12,883
USD		556,555	RUB		33,128,925	SCB	03/19/18		—		12,873
USD		29,832	TRY		115,537	BRC	01/31/18		—		385
USD		390,563	TRY		1,528,548	BRC	01/31/18		—		9,208
USD		710,000	TRY		2,810,642	BRC	01/31/18		—		25,086

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

Annual Report  63

Lazard Emerging Markets Debt Portfolio (concluded)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
USD		703,065	TRY		2,759,248	CIT	01/31/18	$	—	$	18,580
USD		664,286	TRY		2,573,310	JPM	01/31/18		—		8,729
USD		180,000	TRY		716,661	SCB	01/31/18		—		7,433
USD		346,372	TRY		1,348,944	SCB	01/31/18		—		6,427
USD		450,000	TRY		1,721,295	SCB	01/31/18		—		182
USD		855,882	TRY		3,311,879	SCB	01/31/18		—		10,295
USD		234,979	TWD		7,028,207	BRC	01/08/18		—		1,250
USD		579,031	TWD		17,573,597	BRC	01/08/18		—		11,644
USD		578,498	TWD		17,573,597	CIT	01/08/18		—		12,178
USD		1,155,816	TWD		35,147,194	CIT	01/12/18		—		25,777
USD		579,127	TWD		17,573,597	JPM	01/08/18		—		11,548
USD		569,128	TWD		17,292,951	JPM	01/12/18		—		12,233
USD		578,840	TWD		17,573,597	SCB	01/08/18		—		11,835
USD		588,181	TWD		17,854,243	UBS	01/12/18		—		12,050
USD		841,368	ZAR		11,471,041	BOA	01/19/18		—		83,506
USD		275,840	ZAR		3,534,498	BRC	01/19/18		—		9,136
USD		840,259	ZAR		11,471,041	JPM	01/19/18		—		84,615
USD		1,004,160	ZAR		12,869,722	JPM	01/19/18		—		33,484
USD		740,000	ZAR		9,185,028	SCB	01/19/18		—		559
USD		841,439	ZAR		11,471,041	SCB	01/19/18		—		83,435
USD		840,486	ZAR		11,471,039	UBS	01/19/18		—		84,387
Total gross unrealized appreciation/depreciation on Forward Currency Contracts								$	1,612,123	$	1,648,922

Interest Rate Swap Agreements open at December 31, 2017:

Currency	Counterparty	Notional Amount		Expiration Date	Receive (Pay) Rate			Payment Frequency Paid/Received	Variable Rate	Unrealized Depreciation
BRL	JPM		$19,955,166	01/04/21		10.29	%	Maturity	Brazil Cetip Interbank Deposit Rate	$	24,467
BRL	JPM		19,951,562	01/04/21		10.31		Maturity	Brazil Cetip Interbank Deposit Rate		23,507
BRL	JPM		16,282,839	01/04/21		10.59		Maturity	Brazil Cetip Interbank Deposit Rate		8,262
BRL	JPM		16,265,903	01/04/21		10.71		Maturity	Brazil Cetip Interbank Deposit Rate		3,387
Total gross unrealized depreciation on Interest Rate Swap Agreements										$	59,623

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

64  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio
Corporate Bonds | 13.9%
Argentina | 1.1%
AES Argentina Generacion SA, 7.750%, 02/02/24	USD		430	$	465,711
Generacion Mediterranea SA:
9.625%, 07/27/23 (#)	USD		175		195,484
9.625%, 07/27/23	USD		1,000		1,117,050
Genneia SA, 8.750%, 01/20/22 (#)	USD		330		362,667
YPF SA, 7.000%, 12/15/47 (#)	USD		475		470,725
					2,611,637
Bangladesh | 0.3%
Banglalink Digital Communications, Ltd., 8.625%, 05/06/19	USD		600		622,500
Brazil | 3.3%
Aegea Finance Sarl, 5.750%, 10/10/24 (#)	USD		325		329,875
Gerdau Trade, Inc., 4.750%, 04/15/23	USD		350		357,437
GTL Trade Finance, Inc., 5.893%, 04/29/24	USD		175		187,688
Itau Unibanco Holding SA, 6.125%, 12/12/22 (#), (§), (¶)	USD		475		474,784
Petrobras Global Finance BV, 8.375%, 05/23/21	USD		5,896		6,724,388
					8,074,172
Byelorussian Ssr | 0.2%
Eurotorg LLC Via Bonitron DAC, 8.750%, 10/30/22 (#)	USD		450		455,130
Canada | 0.5%
First Quantum Minerals, Ltd.:
7.000%, 02/15/21 (#)	USD		260		269,750
7.250%, 04/01/23 (#)	USD		200		215,500
7.500%, 04/01/25 (#)	USD		675		732,375
					1,217,625

Description	Security Currency	Principal Amount (000)		Fair Value
Chile | 0.9%
AES Gener SA, 8.375%, 12/18/73	USD		600	$	627,462
Empresa Electrica Angamos SA, 4.875%, 05/25/29	USD		650		648,749
Guanay Finance, Ltd., 6.000%, 12/15/20	USD		349		358,875
VTR Finance BV, 6.875%, 01/15/24	USD		600		633,000
					2,268,086
China | 0.1%
Green Dragon Gas, Ltd., 10.000%, 11/20/18 (#), (Ø)	USD		400		188,000
Colombia | 0.7%
Ecopetrol SA, 5.875%, 09/18/23	USD		620		685,100
Transportadora de Gas Internacional SA, 5.700%, 03/20/22	USD		905		928,077
					1,613,177
Georgia | 0.1%
BGEO Group JSC, 6.000%, 07/26/23	USD		350		363,536
Guatemala | 0.5%
Comcel Trust, 6.875%, 02/06/24	USD		1,185		1,225,800
India | 0.2%
JSW Steel, Ltd., 4.750%, 11/12/19	USD		320		324,320
Vedanta Resources PLC, 6.375%, 07/30/22 (#)	USD		225		234,855
					559,175
Israel | 0.4%
Altice Financing SA, 6.625%, 02/15/23 (#)	USD		300		314,130
7.500%, 05/15/26	USD		615		654,975
					969,105

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

Annual Report  65

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Mauritius | 0.7%
HTA Group, Ltd., 9.125%, 03/08/22	USD		200	$	214,250
Liquid Telecommunications Financing PLC, 8.500%, 07/13/22 (#)	USD		1,500		1,580,235
					1,794,485
Mexico | 0.2%
Banco Mercantil del Norte SA, 6.875%, 07/06/22 (#), (§), (¶)	USD		450		474,188
Nigeria | 0.6%
IHS Netherlands Holdco BV:
9.500%, 10/27/21	USD		650		699,527
9.500%, 10/27/21 (#)	USD		725		780,241
					1,479,768
Peru | 0.7%
Cia Minera Ares SAC, 7.750%, 01/23/21	USD		840		873,600
Inkia Energy, Ltd., 5.875%, 11/09/27 (#)	USD		250		251,440
InRetail Shopping Malls, 6.500%, 07/09/21	USD		600		624,750
					1,749,790
Russia | 1.1%
Evraz Group SA, 6.500%, 04/22/20	USD		310		327,825
Gazprom OAO Via Gaz Capital SA, 5.999%, 01/23/21	USD		370		397,184
GTH Finance BV:
6.250%, 04/26/20	USD		300		315,450
7.250%, 04/26/23	USD		1,000		1,124,000
Sberbank of Russia, 5.500%, 02/26/24 (§)	USD		620		629,486
					2,793,945
Saudi Arabia | 0.4%
Acwa Power Management And Investments One, Ltd., 5.950%, 12/15/39 (#)	USD		875		895,737

Description	Security Currency	Principal Amount (000)		Fair Value
Singapore | 0.6%
Puma International Financing SA:
6.750%, 02/01/21	USD		610	$	620,748
5.125%, 10/06/24 (#)	USD		750		764,838
					1,385,586
South Korea | 0.3%
SK E&S Co., Ltd., 4.875%, 11/26/19 (§), (¶)	USD		310		310,372
Woori Bank, 4.500%, 09/27/21 (§), (¶)	USD		320		317,423
					627,795
Thailand | 0.1%
PTT Exploration & Production Public Co. Ltd., 4.875%, 06/18/19	USD		213		216,523
Turkey | 0.4%
Turkiye Is Bankasi, 5.000%, 04/30/20	USD		655		661,926
Turkiye Vakiflar Bankasi TAO, 3.750%, 04/15/18	USD		320		319,718
					981,644
United Arab Emirates | 0.4%
MAF Global Securities, Ltd., 7.125%, 10/29/18 (§), (¶)	USD		910		930,610
United States | 0.1%
Sable International Finance, Ltd., 6.875%, 08/01/22 (#)	USD		220		233,200
Total Corporate Bonds (Cost $32,713,759)					33,731,214
Foreign Government Obligations | 51.2%
Angola | 1.3%
Republic of Angola, 9.500%, 11/12/25	USD		2,710		3,123,275
Argentina | 7.3%
Argentina POM Politica Monetaria, 28.750% (ARPP7DRR), 06/21/20 (§)	ARS		40,560		2,318,372

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

66  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Provincia de Buenos Aires, 7.875%, 06/15/27	USD		150	$	166,125
Republic of Argentina:
26.055% (BADLARPP + 2.750%), 03/01/18 (§)	ARS		22,210		1,185,699
22.750%, 03/05/18	ARS		19,900		1,054,436
21.200%, 09/19/18	ARS		4,340		226,073
25.854% (BADLARPP + 2.500%), 03/11/19 (§)	ARS		4,030		217,335
7.500%, 04/22/26	USD		200		226,100
6.875%, 01/26/27	USD		1,130		1,234,808
7.625%, 04/22/46	USD		945		1,068,086
7.125%, 06/28/2117 (#)	USD		4,630		4,781,633
7.125%, 06/28/2117	USD		5,005		5,168,914
					17,647,581
Brazil | 2.8%
Brazil Letras do Tesouro Nacional, 0.000%, 04/01/18	BRL		6,800		2,016,727
Brazil NTN-B:
6.000%, 05/15/35	BRL		970		949,764
6.000%, 08/15/50	BRL		2,470		2,440,777
Brazil NTN-F:
10.000%, 01/01/21	BRL		2,500		775,434
10.000%, 01/01/27	BRL		2,405		717,255
					6,899,957
Chile | 0.9%
Republic of Chile, 3.860%, 06/21/47	USD		2,025		2,078,156
Colombia | 0.9%
Republic of Colombia, 5.000%, 06/15/45	USD		2,000		2,118,000
Congo | 1.4%
Republic of Congo, 6.000%, 06/30/29 (Ø)	USD		3,899		3,411,533
Ecuador | 1.3%
Republic of Ecuador:
10.500%, 03/24/20	USD		200		221,250
10.750%, 03/28/22	USD		280		328,061

Description	Security Currency	Principal Amount (000)		Fair Value
8.750%, 06/02/23	USD		600	$	662,151
7.950%, 06/20/24	USD		215		228,437
9.650%, 12/13/26	USD		290		333,046
9.625%, 06/02/27 (#)	USD		200		228,755
9.625%, 06/02/27	USD		570		651,952
8.875%, 10/23/27 (#)	USD		400		438,278
					3,091,930
Egypt | 1.3%
Arab Republic of Egypt, 8.500%, 01/31/47 (#)	USD		1,095		1,257,881
Egypt Treasury Bills:
0.000%, 07/10/18	EGP		1,300		66,384
0.000%, 07/24/18	EGP		38,400		1,962,007
					3,286,272
El Salvador | 0.5%
Republic of El Salvador:
7.375%, 12/01/19	USD		565		598,021
5.875%, 01/30/25	USD		610		613,813
					1,211,834
Ghana | 1.2%
Ghana Government Bonds:
23.230%, 02/19/18	GHS		490		109,077
22.490%, 04/23/18	GHS		160		35,885
23.470%, 05/21/18	GHS		420		94,592
19.040%, 09/24/18	GHS		50		11,178
Ghana Treasury Notes:
22.500%, 12/10/18	GHS		450		103,825
21.000%, 01/07/19	GHS		3,000		684,804
Republic of Ghana:
7.875%, 08/07/23	USD		385		422,056
8.125%, 01/18/26	USD		1,314		1,460,182
					2,921,599
Indonesia | 0.8%
Republic of Indonesia, 5.250%, 01/08/47	USD		1,815		2,055,488
Jordan | 0.5%
Kingdom of Jordan, 7.375%, 10/10/47 (#)	USD		1,210		1,260,655
Kazakhstan | 0.9%
Republic of Kazakhstan, 6.500%, 07/21/45	USD		1,640		2,100,840

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

Annual Report  67

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Lebanon | 2.0%
Lebanese Republic:
6.375%, 03/09/20	USD		101	$	100,918
6.150%, 06/19/20	USD		114		112,895
8.250%, 04/12/21	USD		356		371,130
6.100%, 10/04/22	USD		150		145,688
6.000%, 01/27/23	USD		460		439,875
6.650%, 04/22/24	USD		924		898,590
6.250%, 11/04/24	USD		1,646		1,565,758
6.600%, 11/27/26	USD		672		640,080
6.850%, 03/23/27	USD		510		492,787
6.650%, 11/03/28	USD		217		202,895
					4,970,616
Mexico | 0.9%
United Mexican States, 5.750%, 10/12/10	USD		1,970		2,077,857
Mozambique | 1.6%
Mozambique International Bonds, 10.500%, 01/18/23	USD		4,778		3,917,960
Nigeria | 1.3%
Republic of Nigeria, 7.625%, 11/28/47 (#)	USD		3,025		3,244,216
Panama | 0.9%
Republic of Panama:
4.500%, 05/15/47	USD		250		268,875
4.300%, 04/29/53	USD		1,737		1,812,994
					2,081,869
Paraguay | 0.8%
Republic of Paraguay:
6.100%, 08/11/44 (#)	USD		255		291,019
6.100%, 08/11/44	USD		1,355		1,546,394
					1,837,413
Peru | 2.1%
Republic of Peru:
6.350%, 08/12/28	PEN		8,720		2,935,678
5.625%, 11/18/50	USD		1,620		2,089,800
					5,025,478

Description	Security Currency	Principal Amount (000)		Fair Value
Philippines | 0.8%
Republic of Philippines:
3.950%, 01/20/40	USD		590	$	607,700
3.700%, 02/02/42	USD		1,460		1,450,875
					2,058,575
Romania | 0.8%
Romania Government Bonds, 6.125%, 01/22/44	USD		1,610		2,076,900
Russia | 8.6%
Russian Foreign Bonds - Eurobonds, 5.250%, 06/23/47	USD		2,000		2,090,000
Russia Government Bonds - OFZ:
6.400%, 05/27/20	RUB		42,500		729,606
7.600%, 04/14/21	RUB		67,000		1,188,851
7.750%, 09/16/26	RUB		953,230		16,912,161
					20,920,618
South Africa | 4.0%
Republic of South Africa:
7.750%, 02/28/23	ZAR		21,600		1,729,941
10.500%, 12/21/26	ZAR		25,750		2,320,695
8.250%, 03/31/32	ZAR		40,530		2,986,663
8.750%, 02/28/48	ZAR		36,600		2,668,392
					9,705,691
Ukraine | 2.6%
Ukraine Government Bonds:
7.750%, 09/01/19	USD		590		619,500
7.750%, 09/01/20	USD		2,055		2,175,731
7.750%, 09/01/23	USD		1,120		1,188,600
7.750%, 09/01/27	USD		600		621,414
7.375%, 09/25/32 (#)	USD		420		412,813
7.375%, 09/25/32	USD		1,215		1,195,256
					6,213,314
United Arab Emirates | 0.9%
Abu Dhabi Government International Bonds, 4.125%, 10/11/47 (#)	USD		2,095		2,079,287
Uruguay | 1.4%
Republica Orient Uruguay, 5.100%, 06/18/50	USD		1,915		2,135,225
Uruguay Notas del Tesoro, 13.250%, 04/08/18	UYU		5,900		207,714

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

68  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Uruguay Treasury Bills:
0.000%, 02/08/18	UYU		11,810	$	407,562
0.000%, 03/08/18	UYU		11,147		381,947
0.000%, 04/05/18	UYU		3,530		120,158
0.000%, 06/01/18	UYU		2,570		86,272
0.000%, 09/21/18	UYU		3,460		113,073
					3,451,951
Venezuela | 0.2%
Republic of Venezuela:
8.250%, 10/13/24	USD		615		125,306
7.650%, 04/21/25 (∏)	USD		650		133,250
9.250%, 05/07/28 (∏)	USD		430		87,613
9.375%, 01/13/34	USD		560		116,900
7.000%, 03/31/38	USD		650		132,437
					595,506
Zambia | 1.2%
Republic of Zambia:
8.500%, 04/14/24	USD		1,305		1,442,025
8.970%, 07/30/27	USD		1,370		1,539,537
					2,981,562
Total Foreign Government Obligations (Cost $121,159,769)					124,445,933
Quasi Government Bonds | 2.3%
Argentina | 0.7%
Letras Banco Cent Argentina:
0.000%, 04/18/18	ARS		11,900		588,388
0.000%, 06/21/18	ARS		22,910		1,085,212
					1,673,600
Brazil | 0.6%
Cemig Geracao e Transmissao SA, 9.250%, 12/05/24 (#)	USD		1,375		1,481,562
Russia | 0.3%
VTB Bank PJSC Via VTB Eurasia DAC, 9.500%, 12/06/22 (§), (Ø), (¶)	USD		550		607,517

Description	Security Currency	Principal Amount (000)		Fair Value
Ukraine | 0.4%
Ukreximbank Via Biz Finance PLC, 9.625%, 04/27/22	USD		1,020	$	1,089,156
Venezuela | 0.3%
Petroleos de Venezuela SA:
6.000%, 05/16/24 (∏)	USD		735		164,640
6.000%, 11/15/26 (∏)	USD		825		180,675
5.375%, 04/12/27 (∏)	USD		800		186,000
5.500%, 04/12/37 (∏)	USD		710		168,625
					699,940
Total Quasi Government Bonds (Cost $5,998,474)					5,551,775
US Treasury Securities | 24.5%
US Treasury Bills:
0.000%, 01/11/18	USD		12,150		12,146,423
0.000%, 01/25/18	USD		20,420		20,403,954
0.000%, 02/08/18	USD		27,180		27,145,046
Total US Treasury Securities (Cost $59,695,203)					59,695,423
Description			Shares		Fair Value
Short-Term Investments | 6.8%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $16,504,953)			16,504,953	$	16,504,953

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

Annual Report  69

Description	Counterparty	Notional Amount (000)		Number of Contracts		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Purchased Options | 1.7%
Call
USD vs INR Jan 18 67.04, Expires 01/30/18	JPMS	$	9,880		98,800	$	2,964
USD vs RUB Mar 18 61.97, Expires 03/05/18	JPMS		9,776		97,760		35,057
Put
EUR vs PLN Jul 18 4.2, Expires 07/30/18	BRC		5,788		57,880		97,921
EUR vs PLN Jul 18 4.2, Expires 07/30/18	HSB		2,529		25,290		42,785
EUR vs PLN Jul 18 4.2, Expires 07/30/18	JPMS		5,394		53,940		91,255
EUR vs PLN Sep 17 4.2, Expires 09/28/18	JPMS		6,976		69,760		128,063
USD vs BRL Apr 18 3.1, Expires 04/13/18	JPMS		12,530		125,300		45,108
USD vs BRL Apr 18 3.15, Expires 04/02/18	JPMS		10,680		106,800		53,400

Description	Counterparty	Notional Amount (000)		Number of Contracts		Fair Value
USD vs EUR Feb 18 1.19, Expires 02/20/18	JPMS	$	10,344		103,440	$	110,164
USD vs MXN Jan 18 18.25, Expires 01/09/18	JPMS		12,580		125,800		1,258
USD vs MXN Apr 18 18.25, Expires 04/12/18	JPMS		20,920		209,200		48,116
USD vs TRY Jan 18 3.6, Expires 01/15/18	JPMS		20,040		200,400		8,016
USD vs ZAR Apr 18 13.25, Expires 04/03/18	JPMS		11,820		118,200		830,946
USD vs ZAR Apr 18 13.25, Expires 04/12/18	JPMS		36,940		369,400		2,593,188
Total Purchased Options (Cost $2,661,812)							4,088,241
Total Investments | 100.4% (Cost $238,733,970) (¤)						$	244,017,539
Liabilities in Excess of Cash and Other Assets | (0.4)%							(985,497	)
Net Assets | 100.0%						$	243,032,042

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

70  Annual Report

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
ARS		40,792,800	USD		2,217,000	CIT	01/17/18	$	—	$	43,123
ARS		22,940,000	USD		1,240,000	CIT	01/30/18		—		25,922
ARS		30,960,704	USD		1,683,000	HSB	01/17/18		—		33,082
AUD		1,597,953	USD		1,220,000	CIT	01/31/18		26,826		—
BRL		2,447,717	USD		741,059	BRC	02/09/18		—		6,188
BRL		2,441,093	USD		738,941	JPM	02/09/18		—		6,060
BRL		1,564,585	USD		468,846	SCB	02/09/18		885		—
BRL		1,706,683	USD		515,303	SCB	02/09/18		—		2,911
BRL		3,199,698	USD		950,876	SCB	02/09/18		9,759		—
BRL		10,284,251	USD		3,110,000	SCB	02/09/18		—		22,391
COP		8,899,650,908	USD		2,889,801	BRC	01/09/18		90,555		—
COP		1,612,220,251	USD		528,424	JPM	01/09/18		11,484		—
COP		4,737,875,835	USD		1,541,775	SCB	01/09/18		44,866		—
IDR		4,090,882,320	USD		288,598	BRC	01/05/18		12,875		—
IDR		4,212,875,489	USD		297,205	BRC	01/05/18		13,259		—
IDR		6,831,024,849	USD		481,397	BRC	01/05/18		22,008		—
IDR		13,624,131,130	USD		993,374	BRC	01/05/18		10,641		—
IDR		19,572,004,159	USD		1,384,159	BRC	01/05/18		58,179		—
IDR		7,372,454,723	USD		529,060	BRC	01/08/18		14,116		—
IDR		15,743,835,677	USD		1,150,529	BRC	03/20/18		1,880		—
IDR		21,966,640,509	USD		1,591,209	BRC	06/05/18		4,227		—
IDR		25,702,762,702	USD		1,863,599	BRC	06/05/18		3,191		—
IDR		10,323,931,874	USD		728,159	CIT	01/05/18		32,652		—
IDR		14,079,142,244	USD		1,026,626	CIT	01/05/18		10,922		—
IDR		25,824,820,312	USD		1,823,143	CIT	01/05/18		79,989		—
IDR		29,814,526,615	USD		2,101,402	CIT	01/05/18		95,747		—
IDR		31,671,900,570	USD		2,233,240	CIT	01/05/18		100,786		—
IDR		15,743,835,676	USD		1,149,941	CIT	03/20/18		2,469		—
IDR		21,966,640,509	USD		1,592,940	CIT	06/05/18		2,496		—
IDR		12,941,822,110	USD		912,681	JPM	01/05/18		41,052		—
IDR		12,964,968,135	USD		914,636	JPM	01/05/18		40,803		—
IDR		21,116,307,373	USD		1,492,698	JPM	01/05/18		63,445		—
IDR		8,438,736,985	USD		605,144	JPM	01/08/18		16,592		—
IDR		37,207,961,998	USD		2,707,018	JPM	01/08/18		34,333		—
IDR		15,260,800,061	USD		1,115,556	JPM	02/20/18		4,387		—
IDR		15,743,835,677	USD		1,150,949	JPM	03/20/18		1,460		—
IDR		21,966,640,509	USD		1,591,786	JPM	06/05/18		3,651		—
IDR		25,702,762,702	USD		1,863,464	JPM	06/05/18		3,326		—
IDR		9,695,909,874	USD		695,795	SCB	01/08/18		18,565		—
IDR		9,944,617,823	USD		722,982	SCB	01/08/18		9,702		—
IDR		81,391,333,272	USD		5,944,444	SCB	02/20/18		28,613		—
IDR		15,743,835,677	USD		1,150,361	SCB	03/20/18		2,048		—
IDR		21,966,640,509	USD		1,592,247	SCB	06/05/18		3,189		—

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

Annual Report  71

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
IDR		12,941,822,110	USD		912,681	UBS	01/05/18	$	41,052	$	—
INR		39,785,325	USD		605,100	BRC	01/05/18		18,072		—
INR		53,168,120	USD		806,800	BRC	01/05/18		25,992		—
INR		54,222,538	USD		823,300	BRC	01/05/18		26,008		—
INR		142,168,456	USD		2,159,630	BRC	01/16/18		64,432		—
INR		112,565,534	USD		1,723,083	BRC	03/19/18		24,366		—
INR		434,492,443	USD		6,600,370	CIT	01/16/18		196,765		—
INR		52,715,920	USD		806,917	CIT	03/19/18		11,436		—
INR		85,430,400	USD		1,280,000	CIT	03/19/18		46,208		—
INR		39,839,784	USD		605,100	JPM	01/05/18		18,925		—
INR		111,391,611	USD		1,689,600	JPM	01/05/18		55,168		—
INR		300,222,135	USD		4,579,000	JPM	02/01/18		109,731		—
INR		347,798,610	USD		5,301,000	JPM	02/01/18		130,758		—
INR		53,119,712	USD		806,800	SCB	01/05/18		25,234		—
INR		54,214,305	USD		823,300	SCB	01/05/18		25,879		—
KRW		956,372,483	USD		857,887	BRC	01/08/18		35,639		—
KRW		2,508,267,554	USD		2,302,325	BRC	01/08/18		41,115		—
KRW		3,036,106,605	USD		2,732,523	BRC	01/08/18		104,070		—
KRW		921,640,119	USD		829,335	BRC	01/12/18		31,825		—
KRW		923,215,856	USD		829,335	BRC	01/12/18		33,297		—
KRW		924,211,058	USD		829,335	BRC	01/12/18		34,227		—
KRW		956,586,955	USD		857,887	BRC	01/12/18		35,927		—
KRW		1,270,952,760	USD		1,138,541	CIT	01/12/18		49,010		—
KRW		1,573,994,148	USD		1,413,774	CIT	01/12/18		56,932		—
KRW		1,741,095,155	USD		1,567,477	JPM	01/08/18		59,205		—
KRW		2,756,229,331	USD		2,468,075	JPM	01/08/18		107,032		—
KRW		1,003,533,017	USD		902,945	JPM	01/12/18		34,734		—
KRW		2,025,454,168	USD		1,817,121	JPM	01/12/18		75,418		—
KRW		2,143,576,609	USD		1,920,750	JPM	01/12/18		82,160		—
KRW		789,547,411	USD		706,151	SCB	01/08/18		31,512		—
KRW		394,059,775	USD		353,544	SCB	01/12/18		14,657		—
KRW		842,571,384	USD		756,891	SCB	01/12/18		30,389		—
KRW		1,409,070,702	USD		1,267,720	SCB	01/12/18		48,885		—
PEN		5,535,611	USD		1,707,310	BOA	02/16/18		—		3,399
PEN		5,535,612	USD		1,690,986	BRC	02/16/18		12,925		—
PEN		17,303,418	USD		5,337,349	CIT	02/16/18		—		11,201
PEN		32,719,497	USD		10,010,000	HSB	01/16/18		74,962		—
PEN		5,535,612	USD		1,706,626	HSB	02/16/18		—		2,715
PEN		5,535,612	USD		1,706,784	SCB	02/16/18		—		2,873
PLN		7,266,489	USD		2,027,480	BOA	03/12/18		60,352		—
PLN		14,532,978	USD		4,054,536	JPM	03/12/18		121,129		—
PLN		7,266,489	USD		2,027,859	SCB	03/12/18		59,973		—
PLN		7,266,488	USD		2,027,225	UBS	03/12/18		60,607		—

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

72  Annual Report

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
RUB		164,647,268	USD		2,791,105	BRC	01/10/18	$	65,743	$	—
RUB		164,647,269	USD		2,791,105	JPM	01/10/18		65,743		—
RUB		266,146,560	USD		4,472,638	JPM	03/19/18		101,955		—
RUB		164,647,269	USD		2,791,578	SCB	01/10/18		65,270		—
TRY		4,911,383	USD		1,266,277	BRC	01/31/18		18,229		—
TRY		7,385,960	USD		1,904,924	HSB	01/31/18		26,775		—
TRY		7,385,960	USD		1,903,892	JPM	01/31/18		27,807		—
TRY		16,030,834	USD		4,132,723	SCB	01/31/18		59,926		—
TRY		382,361	USD		98,580	UBS	01/31/18		1,422		—
TWD		24,463,848	USD		808,722	BRC	01/08/18		13,545		—
TWD		106,141,734	USD		3,538,648	BRC	01/08/18		28,936		—
TWD		7,801,151	USD		260,908	BRC	01/12/18		1,354		—
TWD		20,039,563	USD		665,103	BRC	01/12/18		8,595		—
TWD		35,018,165	USD		1,163,240	BRC	01/12/18		14,015		—
TWD		35,040,266	USD		1,163,240	BRC	01/12/18		14,758		—
TWD		38,115,258	USD		1,259,904	CIT	01/08/18		21,207		—
TWD		27,198,400	USD		890,000	CIT	01/12/18		24,367		—
TWD		104,157,082	USD		3,472,076	JPM	01/08/18		28,800		—
TWD		26,488,544	USD		880,018	JPM	01/12/18		10,484		—
TWD		26,506,145	USD		880,018	JPM	01/12/18		11,076		—
TWD		64,823,716	USD		2,150,611	JPM	01/12/18		28,659		—
TWD		22,606,871	USD		747,088	SCB	01/08/18		12,763		—
TWD		23,046,811	USD		769,638	SCB	01/08/18		5,000		—
TWD		23,112,230	USD		769,638	SCB	01/12/18		7,358		—
TWD		23,243,220	USD		772,457	SCB	01/12/18		8,943		—
TWD		23,262,531	USD		772,457	SCB	01/12/18		9,592		—
USD		1,720,000	ARS		32,301,600	CIT	01/17/18		—		1,375
USD		500,000	ARS		9,935,000	JPM	02/14/18		—		21,571
USD		3,110,000	AUD		4,062,253	SCB	01/31/18		—		59,632
USD		1,096,815	BRL		3,842,143	BRC	02/09/18		—		56,700
USD		1,788,990	BRL		6,285,615	JPM	02/09/18		—		98,121
USD		220,000	BRL		730,510	SCB	02/09/18		681		—
USD		505,206	BRL		1,769,331	SCB	02/09/18		—		25,995
USD		1,788,990	BRL		6,284,184	UBS	02/09/18		—		97,691
USD		2,048,390	COP		6,192,284,209	BRC	01/09/18		—		25,310
USD		1,062,426	COP		3,218,087,900	JPM	01/09/18		—		15,262
USD		1,939,184	COP		5,873,070,050	SCB	01/09/18		—		27,617
USD		669,000	IDR		9,081,675,000	BRC	01/05/18		—		264
USD		892,000	IDR		12,133,430,000	BRC	01/05/18		—		2,160
USD		898,414	IDR		12,222,924,783	BRC	01/05/18		—		2,341
USD		906,200	IDR		12,313,445,600	BRC	01/05/18		—		1,226
USD		1,615,194	IDR		21,966,640,509	BRC	01/05/18		—		3,613
USD		154,000	IDR		2,148,762,000	BRC	01/08/18		—		4,313

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

Annual Report  73

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
USD		154,000	IDR		2,132,130,000	BRC	01/08/18	$	—	$	3,088
USD		154,000	IDR		2,115,960,000	BRC	01/08/18		—		1,896
USD		1,890,604	IDR		25,702,762,702	BRC	01/08/18		—		3,084
USD		1,166,120	IDR		15,865,065,321	CIT	01/05/18		—		3,038
USD		1,616,383	IDR		21,966,640,509	CIT	01/05/18		—		2,425
USD		1,840,000	IDR		25,944,000,000	CIT	01/05/18		—		71,915
USD		154,000	IDR		2,116,730,000	CIT	01/08/18		—		1,953
USD		669,000	IDR		9,098,400,000	JPM	01/05/18		—		1,497
USD		1,615,788	IDR		21,966,640,509	JPM	01/05/18		—		3,019
USD		154,000	IDR		2,124,892,000	JPM	01/08/18		—		2,554
USD		154,000	IDR		2,119,810,000	JPM	01/08/18		—		2,180
USD		154,000	IDR		2,122,582,000	JPM	01/08/18		—		2,384
USD		1,890,604	IDR		25,702,762,702	JPM	01/08/18		—		3,084
USD		811,066	IDR		11,042,658,552	SCB	01/05/18		—		2,711
USD		892,000	IDR		12,126,740,000	SCB	01/05/18		—		1,667
USD		906,200	IDR		12,315,258,000	SCB	01/05/18		—		1,359
USD		1,616,026	IDR		21,966,640,509	SCB	01/05/18		—		2,782
USD		154,000	IDR		2,126,740,000	SCB	01/08/18		—		2,691
USD		770,000	IDR		10,469,690,000	SCB	03/20/18		3,645		—
USD		154,000	IDR		2,120,580,000	UBS	01/08/18		—		2,237
USD		154,000	IDR		2,125,970,000	UBS	01/08/18		—		2,634
USD		2,073,230	INR		135,247,132	BRC	01/05/18		—		45,196
USD		2,073,230	INR		135,247,131	JPM	01/05/18		—		45,197
USD		2,073,865	INR		135,247,132	SCB	01/05/18		—		44,561
USD		2,586,433	KRW		2,946,904,635	BRC	01/08/18		—		166,819
USD		59,291	KRW		66,168,600	BRC	01/12/18		—		2,536
USD		2,327,021	KRW		2,535,079,412	BRC	01/12/18		—		41,702
USD		2,585,049	KRW		2,946,904,635	BRC	01/12/18		—		168,473
USD		2,586,252	KRW		2,946,904,634	CIT	01/08/18		—		167,001
USD		2,583,418	KRW		2,946,904,634	CIT	01/12/18		—		170,105
USD		2,586,933	KRW		2,946,904,635	JPM	01/08/18		—		166,320
USD		2,584,596	KRW		2,946,904,635	JPM	01/12/18		—		168,927
USD		2,587,274	KRW		2,946,904,635	SCB	01/08/18		—		165,979
USD		2,585,685	KRW		2,946,904,635	SCB	01/12/18		—		167,838
USD		1,040,000	PEN		3,378,440	BRC	02/16/18		86		—
USD		600,000	PLN		2,084,460	SCB	03/12/18		1,086		—
USD		505,339	RUB		29,749,026	BOA	01/10/18		—		10,846
USD		1,391,373	RUB		82,228,057	BOA	01/10/18		—		35,393
USD		572,424	RUB		34,118,200	BOA	03/19/18		—		14,008
USD		180,877	RUB		10,648,427	BRC	01/10/18		—		3,887
USD		252,129	RUB		14,726,324	BRC	01/10/18		—		3,393
USD		361,933	RUB		21,296,854	BRC	01/10/18		—		7,596
USD		1,391,338	RUB		82,228,057	BRC	01/10/18		—		35,428

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

74  Annual Report

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
USD		176,922	RUB		10,467,606	BRC	01/16/18	$	—	$	4,563
USD		177,132	RUB		10,467,606	BRC	01/16/18		—		4,353
USD		178,495	RUB		10,640,953	BRC	03/19/18		—		4,405
USD		347,734	RUB		20,911,680	BRC	03/19/18		—		11,701
USD		370,000	RUB		22,037,385	BRC	03/19/18		—		8,784
USD		525,495	RUB		31,343,131	BRC	03/19/18		—		13,239
USD		2,765,392	RUB		164,647,268	BRC	03/19/18		—		64,606
USD		185,748	RUB		10,990,038	BRC	03/22/18		—		3,082
USD		185,793	RUB		10,994,290	BRC	03/22/18		—		3,110
USD		371,715	RUB		21,980,076	BRC	03/22/18		—		5,945
USD		427,429	RUB		25,309,138	BRC	03/22/18		—		7,431
USD		108,519	RUB		6,380,891	CIT	01/10/18		—		2,198
USD		1,391,514	RUB		82,228,056	CIT	01/10/18		—		35,251
USD		455,169	RUB		27,118,080	CIT	03/19/18		—		10,943
USD		1,000,968	RUB		59,606,600	CIT	03/19/18		—		23,565
USD		1,390,926	RUB		82,228,057	JPM	01/10/18		—		35,840
USD		2,765,368	RUB		164,647,269	JPM	03/19/18		—		64,629
USD		1,394,192	RUB		82,228,057	SCB	01/10/18		—		32,573
USD		2,766,019	RUB		164,647,269	SCB	03/19/18		—		63,979
USD		23,866	TRY		92,430	BRC	01/31/18		—		308
USD		336,319	TRY		1,316,250	BRC	01/31/18		—		7,929
USD		605,417	TRY		2,376,019	CIT	01/31/18		—		15,999
USD		531,429	TRY		2,058,648	JPM	01/31/18		—		6,983
USD		298,264	TRY		1,161,591	SCB	01/31/18		—		5,534
USD		684,706	TRY		2,649,503	SCB	01/31/18		—		8,236
USD		730,000	TRY		2,845,248	SCB	01/31/18		—		14,136
USD		200,524	TWD		5,997,672	BRC	01/08/18		—		1,067
USD		2,574,415	TWD		78,133,483	BRC	01/08/18		—		51,770
USD		2,572,042	TWD		78,133,483	CIT	01/08/18		—		54,143
USD		5,138,839	TWD		156,266,965	CIT	01/12/18		—		114,606
USD		2,574,839	TWD		78,133,483	JPM	01/08/18		—		51,345
USD		2,530,384	TWD		76,885,711	JPM	01/12/18		—		54,391
USD		2,573,567	TWD		78,133,483	SCB	01/08/18		—		52,618
USD		2,615,097	TWD		79,381,255	UBS	01/12/18		—		53,574
USD		2,174,143	ZAR		29,641,836	BOA	01/19/18		—		215,783
USD		2,171,277	ZAR		29,641,836	JPM	01/19/18		—		218,650
USD		2,174,327	ZAR		29,641,836	SCB	01/19/18		—		215,600
USD		2,171,865	ZAR		29,641,834	UBS	01/19/18		—		218,061
UYU		3,629,480	USD		124,000	CIT	02/07/18		1,299		—
UYU		3,639,400	USD		124,000	CIT	02/07/18		1,641		—
UYU		3,643,120	USD		124,000	CIT	02/07/18		1,769		—
UYU		3,651,800	USD		124,000	CIT	02/07/18		2,069		—
UYU		3,662,960	USD		124,000	CIT	02/07/18		2,454		—
Total gross unrealized appreciation/depreciation on Forward Currency Contracts								$	3,734,038	$	4,113,389

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

Annual Report  75

Lazard Explorer Total Return Portfolio (concluded)

Written Options open at December 31, 2017:

Description	Counterparty	Number of Contracts		Strike Price		Expiration Date	Notional Amount		Premiums		Fair Value
Put
USD vs BRL Apr 18 3.05	JPMS		106,800	$	3.05	04/02/18	$	10,680,000	$	96,120	$	(19,224	)
USD vs INR Jan 18 64.77	JPMS		98,800		64.77	01/30/18		9,880,000		47,483		(141,284	)
USD vs RUB Mar 18 57.95	JPMS		97,760		57.95	03/05/18		9,776,000		89,059		(156,787	)
USD vs ZAR Apr 18 12.75	JPMS		369,400		12.75	04/12/18		36,940,000		480,220		(1,507,152	)
USD vs ZAR Apr 18 12.85	JPMS		118,200		12.85	04/03/18		11,820,000		156,379		(542,538	)
Total Written Options			790,960						$	869,261	$	(2,366,985	)

Interest Rate Swap Agreements open at December 31, 2017:

Currency	Counterparty	Notional Amount		Expiration Date	Receive (Pay) Rate			Payment Frequency Paid/Received	Variable Rate	Unrealized Appreciation		Unrealized Depreciation
BRL	JPM	$	25,387,816	01/02/20		(8.75	)%	Maturity	Brazil Cetip Interbank Deposit Rate	$	—	$	129,855
BRL	JPM		2,020,613	07/01/20		10.01		Maturity	Brazil Cetip Interbank Deposit Rate		26,890		—
BRL	JPM		3,965,293	07/01/20		10.02		Maturity	Brazil Cetip Interbank Deposit Rate		53,139		—
BRL	JPM		20,817,099	01/02/21		10.53		Maturity	Brazil Cetip Interbank Deposit Rate		—		13,555
BRL	JPM		14,422,380	01/04/21		9.16		Maturity	Brazil Cetip Interbank Deposit Rate		38,254		—
BRL	JPM		17,234,007	01/04/21		10.29		Maturity	Brazil Cetip Interbank Deposit Rate		—		21,131
BRL	JPM		17,230,894	01/04/21		10.31		Maturity	Brazil Cetip Interbank Deposit Rate		—		20,301
BRL	JPM		50,707,958	01/04/21		10.48		Maturity	Brazil Cetip Interbank Deposit Rate		—		39,092
BRL	JPM		14,473,634	01/04/21		10.59		Maturity	Brazil Cetip Interbank Deposit Rate		—		7,344
BRL	JPM		14,458,581	01/04/21		10.71		Maturity	Brazil Cetip Interbank Deposit Rate		—		3,011
BRL	JPM		24,375,959	01/04/21		10.81		Maturity	Brazil Cetip Interbank Deposit Rate		480		—
BRL	JPM		25,351,856	01/04/21		11.05		Maturity	Brazil Cetip Interbank Deposit Rate		412,528		—
Total gross unrealized appreciation/depreciation on Interest Rate Swap Agreements										$	531,291	$	234,289

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

76  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Income Portfolio
Foreign Government Obligations | 33.3%
Brazil | 6.2%
Brazil NTN-F:
10.000%, 01/01/18	BRL		800	$	240,431
10.000%, 01/01/27	BRL		440		131,224
					371,655
Egypt | 7.9%
Egypt Treasury Bills:
0.000%, 01/02/18	EGP		1,400		78,740
0.000%, 08/21/18	EGP		7,900		395,702
					474,442
Indonesia | 2.2%
Indonesia Government Bonds,
8.250%, 07/15/21	IDR		1,684,000		132,870
Malaysia | 6.5%
Malaysia Government Bonds:
4.240%, 02/07/18	MYR		690		170,720
3.580%, 09/28/18	MYR		890		220,908
					391,628
Mexico | 5.7%
Mexican Bonos:
6.500%, 06/10/21	MXN		5,970		293,373
5.750%, 03/05/26	MXN		1,180		53,110
					346,483
Romania | 0.8%
Romania Government Bonds,
5.850%, 04/26/23	RON		180		50,299
South Africa | 0.9%
Republic of South Africa,
6.750%, 03/31/21	ZAR		730		57,523
Turkey | 3.1%
Turkey Government Bonds:
10.400%, 03/27/19	TRY		340		86,738
2.000%, 10/26/22	TRY		389		98,740
					185,478
Total Foreign Government Obligations (Cost $2,027,073)					2,010,378

Description	Security Currency	Principal Amount (000)		Fair Value
Supranationals | 3.4%
European Investment Bank, 7.200%, 07/09/19 (#) (Cost $212,574)	IDR		2,700,000	$	202,378
US Treasury Securities | 46.4%
US Treasury Notes:
0.750%, 04/15/18	USD		300		299,483
0.750%, 04/30/18	USD		300		299,344
0.875%, 01/15/18	USD		200		199,975
0.875%, 01/31/18	USD		200		199,943
0.875%, 05/31/18	USD		300		299,320
1.000%, 02/15/18	USD		200		199,927
1.000%, 03/15/18	USD		200		199,860
1.000%, 05/15/18	USD		300		299,578
2.625%, 01/31/18	USD		200		200,217
2.750%, 02/28/18	USD		400		400,891
2.875%, 03/31/18	USD		200		200,711
Total US Treasury Securities (Cost $2,799,489)					2,799,249
Description			Shares		Fair Value
Short-Term Investments | 7.5%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $454,296)			454,296	$	454,296
Total Investments | 90.6% (Cost $5,493,432) (¤)				$	5,466,301
Cash and Other Assets in Excess of Liabilities | 9.4%					567,862
Net Assets | 100.0%				$	6,034,163

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

Annual Report  77

Lazard Emerging Markets Income Portfolio (continued)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
ARS		1,457,600	USD		80,000	CIT	01/22/18		$	—		$	2,530
ARS		1,712,580	USD		92,000	SCB	02/02/18			—			1,507
BRL		630,000	USD		186,994	CIT	10/16/18			—			2,982
CLP		36,269,100	USD		57,000	HSB	02/20/18			1,923			—
CNY		1,015,650	USD		148,000	CIT	01/17/18			7,876			—
CNY		4,358,775	USD		653,000	HSB	02/09/18			14,697			—
COP		279,266,000	USD		92,000	CIT	01/10/18			1,513			—
COP		291,475,300	USD		97,000	CIT	01/29/18			430			—
CZK		2,005,865	EUR		79,000	JPM	02/28/18			—			639
CZK		4,600,710	USD		186,000	CIT	02/27/18			30,637			—
CZK		2,581,680	USD		120,000	CIT	02/28/18			1,570			—
DOP		6,588,000	USD		135,000	CIT	01/19/18			993			—
EGP		3,122,900	USD		175,217	CIT	01/02/18			424			—
EGP		3,122,900	USD		170,385	CIT	03/12/18			2,102			—
EUR		171,764	CZK		4,600,710	CIT	02/27/18			—			9,892
HUF		53,461,120	USD		206,000	CIT	01/29/18			712			—
HUF		37,814,600	USD		142,000	HSB	02/15/18			4,330			—
IDR		3,173,760,000	USD		228,000	HSB	04/26/18			4,555			—
IDR		3,173,760,000	USD		233,193	SCB	02/07/18			965			—
ILS		148,060	USD		42,390	JPM	01/31/18			204			—
INR		9,949,160	USD		152,000	SCB	01/10/18			3,870			—
INR		35,508,780	USD		540,000	SCB	01/22/18			15,680			—
KRW		605,383,500	USD		554,000	SCB	01/12/18			13,329			—
KZT		37,464,000	USD		112,000	CIT	02/26/18			—			499
KZT		10,548,000	USD		31,078	CIT	03/27/18			172			—
KZT		23,092,800	USD		68,000	SCB	03/12/18			568			—
MAD		564,030	USD		58,661	CIT	03/20/18			784			—
MAD		593,960	USD		62,000	CIT	03/20/18			600			—
MXN		1,016,434	USD		53,000	SCB	01/22/18			—			1,485
PEN		348,092	USD		106,688	CIT	02/05/18			516			—
PHP		7,159,195	USD		139,000	JPM	01/12/18			4,380			—
PHP		4,549,235	USD		89,000	SCB	02/20/18			2,017			—
PLN		931,424	USD		260,000	HSB	01/18/18			7,580			—
RUB		21,071,735	USD		355,000	CIT	02/16/18			7,933			—
RUB		8,222,040	USD		138,000	JPM	01/16/18			4,473			—
SGD		82,144	USD		61,000	SCB	02/15/18			458			—
SGD		410,446	USD		304,000	SCB	02/15/18			3,085			—
THB		9,442,368	USD		291,000	SCB	02/16/18			—			929
TRY		394,540	USD		91,000	SCB	11/13/18			3,695			—
TWD		977,210	USD		32,661	SCB	02/08/18			430			—
USD		93,000	ARS		1,663,584	HSB	01/22/18			4,582			—
USD		226,000	BRL		750,071	HSB	10/16/18			6,918			—
USD		110,000	CNY		727,760	HSB	01/17/18			—			1,692

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

78  Annual Report

Lazard Emerging Markets Income Portfolio (concluded)

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
USD		63,000	COP		190,262,520	CIT	01/10/18		$	—		$	710
USD		46,000	DOP		2,237,900	CIT	01/19/18			—			196
USD		173,220	EGP		3,122,900	CIT	01/02/18			—			2,421
USD		175,000	EGP		3,174,500	CIT	04/02/18			431			—
USD		170,000	EGP		3,122,900	HSB	03/12/18			—			2,487
USD		109,928	EUR		92,167	CIT	02/27/18			—			1,009
USD		90,000	IDR		1,228,500,000	SCB	02/07/18			—			638
USD		172,000	IDR		2,335,416,000	SCB	02/07/18			—			305
USD		231,239	IDR		3,173,760,000	SCB	04/26/18			—			1,316
USD		15,000	ILS		52,506	JPM	01/31/18			—			105
USD		244,000	INR		15,651,526	CIT	01/22/18			—			932
USD		26,000	PEN		84,323	CIT	02/05/18			30			—
USD		29,887	PEN		97,512	CIT	02/05/18			—			144
USD		80,000	PHP		4,032,480	JPM	01/12/18			—			760
USD		37,000	PLN		132,410	CIT	01/18/18			—			1,039
USD		18,000	RON		70,666	JPM	01/05/18			—			174
USD		48,000	TRY		186,274	HSB	01/19/18			—			892
USD		60,000	TRY		234,660	SCB	01/19/18			—			1,592
USD		53,489	ZAR		713,752	CIT	01/12/18			—			4,119
UYU		869,460	USD		30,000	JPM	01/18/18			118			—
ZAR		383,058	USD		30,000	CIT	01/12/18			917			—
ZAR		713,752	USD		52,000	SCB	01/12/18			5,608			—
ZAR		395,793	USD		31,000	SCB	02/22/18			751			—
Total gross unrealized appreciation/depreciation on Forward Currency Contracts									$	161,856		$	40,994

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

Annual Report  79

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2017

(*)	Non-income producing security.
(^)	Refer to Note 5 in the Notes to Financial Statements for further details related to holdings of 5% voting securities of portfolio companies.
(#)	Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2017, the percentage of net assets for each Portfolio was as follows:

Portfolio	Percentage of Net Assets
Emerging Markets Equity		0.2	%
Emerging Markets Equity Advantage		1.1
Emerging Markets Multi-Asset		2.7
Emerging Markets Debt		6.4
Explorer Total Return		10.2
Emerging Markets Income		3.4

(‡)	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 in the Notes to Financial Statements.
(§)	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, 2017.
(Ø)	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, 2017 which may step up at a future date.
(Π)	Issue in default.
(¤)	The Portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts.
(¶)	Date shown is the next perpetual call date.

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

80  Annual Report

Security Abbreviations:
ADR	—	American Depositary Receipt
ARPP7DRR	—	Argentina Central bank 7 Day Repo Referrence Rate
BADLARPP	—	Argentina Deposit Rates Badlar Private Banks
GDR	—	Global Depositary Receipt
JSC	—	Joint Stock Company
LIBOR	—	London Interbank Offered Rate

Currency Abbreviations:
ARS	—	Argentinian Peso
AUD	—	Australian Dollar
BRL	—	Brazilian Real
CLP	—	Chilean Peso
CNY	—	Chinese Renminbi
COP	—	Colombian Peso
CZK	—	Czech Koruna
DOP	—	Dominican Republic Peso
EGP	—	Egyptian Pound
EUR	—	Euro
GHS	—	Ghanaian Cedi
HUF	—	Hungarian Forint
IDR	—	Indonesian Rupiah
ILS	—	Israeli Shekel
INR	—	Indian Rupee
JPY	—	Japanese Yen
KRW	—	South Korean Won
Counterparty Abbreviations:
BOA	—	Bank of America NA
BRC	—	Barclays Bank PLC
CIT	—	Citibank NA
HSB	—	HSBC Bank USA NA

NTN-B	—	Brazil Sovereign “Nota do Tesouro Nacional” Series B
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
LKR	—	Sri Lankan Rupee
MAD	—	Moroccan Dirham
MXN	—	Mexican New Peso
MYR	—	Malaysian Ringgit
PEN	—	Peruvian Nuevo Sol
PHP	—	Philippine Peso
PLN	—	Polish Zloty
RON	—	New Romanian Leu
RUB	—	Russian Ruble
THB	—	Thai Baht
TRY	—	New Turkish Lira
TWD	—	Taiwan Dollar
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.

Annual Report  81

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		—	%		—	%		1.7	%		—	%		—	%		—	%
Air Freight & Logistics		—			—			1.8			—			1.4			1.0
Airlines		—			0.8			—			1.0			—			—
Auto Components		1.5			1.1			2.5			0.2			2.5			1.7
Automobiles		3.7			4.2			3.4			2.4			2.9			2.0
Banks		25.3			20.3			22.5			17.6			19.5			13.9
Beverages		1.5			0.8			—			—			0.7			0.4
Capital Markets		—			—			—			1.6			0.5			0.4
Chemicals		—			2.8			—			2.6			1.8			1.1
Commercial Services & Suppliers		—			—			—			0.4			0.5			0.3
Communications Equipment		—			—			—			—			—			0.1
Construction & Engineering		—			—			2.3			0.3			1.8			1.2
Construction Materials		1.6			0.8			1.7			0.5			1.5			1.0
Consumer Finance		—			—			2.5			—			0.6			0.4
Containers & Packaging		—			—			—			—			0.1			0.1
Distributors		1.4			—			—			—			—			—
Diversified Consumer Services		—			1.4			1.7			0.3			2.6			1.7
Diversified Financial Services		—			1.9			—			1.6			—			0.3
Diversified Telecommunication Services		2.3			2.1			—			2.3			0.7			0.6
Electric Utilities		—			—			—			1.1			—			0.5
Electrical Equipment		—			—			1.3			0.5			—			—
Electronic Equipment, Instruments & Components		1.6			2.7			2.4			3.3			2.4			1.5
Energy Equipment & Services		—			0.6			—			—			0.4			0.3
Equity Real Estate Investment Trusts (REITs)		—			—			0.9			—			0.7			0.5
Food & Staples Retailing		2.3			—			1.1			2.3			1.2			0.9
Food Products		—			0.9			0.7			2.4			0.2			0.2
Gas Utilities		0.8			—			1.3			0.2			0.8			0.6
Health Care Equipment & Supplies		—			—			—			0.2			0.5			0.3
Health Care Providers & Services		0.8			—			—			0.2			—			—
Hotels, Restaurants & Leisure		—			—			—			0.4			0.5			0.3
Household Durables		1.3			2.5			2.3			0.8			2.3			1.6
Household Products		0.6			—			—			—			0.4			0.3
Independent Power and Renewable Electricity Producers		—			0.7			—			0.5			—			0.3
Industrial Conglomerates		2.2			1.6			—			1.2			0.8			0.5
Insurance		3.6			4.3			2.2			3.7			2.1			1.5
Internet & Catalog Retail		—			1.3			—			0.3			—			—
Internet Software & Services		5.2			13.0			12.5			10.1			8.4			5.8
IT Services		6.3			—			—			3.0			2.3			1.6
Life Sciences Tools & Services		—			0.2			—			—			—			—
Machinery		1.2			—			3.3			1.1			0.8			0.5
Media		—			2.2			0.4			2.1			0.5			0.5
Metals & Mining		1.3			5.4			2.7			3.7			2.1			1.5
Multiline Retail		0.7			—			—			0.2			—			0.1
Oil, Gas & Consumable Fuels		7.8			6.1			8.3			7.6			7.0			5.9
Paper & Forest Products		—			1.1			—			1.3			—			—
Personal Products		0.2			1.1			—			0.4			—			—
Pharmaceuticals		—			—			2.8			1.7			1.8			1.2
Real Estate Management & Development		—			0.6			—			3.4			0.2			0.1
Road & Rail		0.7			1.1			—			—			1.4			0.9
Semiconductors & Semiconductor Equipment		6.7			8.4			5.8			6.3			6.4			4.2
Software		—			1.0			2.3			—			1.7			1.2
Specialty Retail		0.7			—			0.8			1.3			1.0			0.7

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

82  Annual Report

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
Technology Hardware, Storage & Peripherals		4.4	%		6.0	%		3.6	%		5.4	%		4.8	%		3.3	%
Textiles, Apparel & Luxury Goods		—			—			1.1			0.5			0.8			0.5
Thrifts & Mortgage Finance		—			—			—			—			0.5			0.3
Tobacco		1.3			0.5			—			1.0			0.3			0.2
Trading Companies & Distributors		—			—			—			—			0.6			0.4
Transportation Infrastructure		1.4			1.5			—			0.7			0.7			0.4
Water Utilities		0.4			—			1.5			0.2			1.7			1.1
Wireless Telecommunication Services		8.9			0.9			—			2.5			2.8			2.1
Subtotal		97.7			99.9			97.4			100.4			95.2			68.0
Foreign Government Obligations		—			—			—			—			—			15.7
Supranationals		—			—			—			—			—			0.1
US Treasury Securities		—			—			—			—			—			10.6
Purchased Options		—			—			—			—			—			0.4
Short-Term Investments		2.4			4.8			2.8			0.3			4.8			4.9
Total Investments		100.1	%		104.7	%		100.2	%		100.7	%		100.0	%		99.7	%

Industry†	Lazard Emerging Markets Debt Portfolio			Lazard Explorer Total Return Portfolio
Banks		2.8	%		2.0	%
Capital Markets		—			0.1
Communications Equipment		—			0.7
Diversified Financial Services		0.3			1.1
Diversified Telecommunication Services		0.2			0.7
Electric Utilities		1.3			2.3
Energy Equipment & Services		0.1			—
Food & Staples Retailing		—			0.2
Independent Power and Renewable Electricity Producers		0.5			0.7
Media		—			0.3
Metals & Mining		0.2			1.5
Multiline Retail		—			0.3
Oil, Gas & Consumable Fuels		2.0			4.8
Thrifts & Mortgage Finance		0.1			—
Water Utilities		—			0.1
Wireless Telecommunication Services		0.3			1.4
Subtotal		7.8			16.2
Foreign Government Obligations		89.5			51.2
US Treasury Securities		—			24.5
Purchased Options		—			1.7
Short-Term Investments		0.8			6.8
Total Investments		98.1	%		100.4	%

† 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  83

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2017	Lazard Emerging Markets Equity Portfolio			Lazard Emerging Markets Core Equity Portfolio			Lazard Developing Markets Equity Portfolio
ASSETS
Investments in securities, at fair value	$	12,983,981,265		$	243,148,353		$	281,736,171
Non-controlled affiliated issuers, at fair value (Note 5)		202,853,733			—			—
Cash		—			—			—
Cash collateral due from broker on swap agreements		—			—			—
Foreign currency, at fair value		981,878			3,317			5,227
Receivables for:
Capital stock sold		18,502,726			694,869			584,938
Dividends and interest		12,802,399			318,417			317,848
Investments sold		—			—			60
Amount due from Investment Manager (Note 3)		—			—			—
Gross unrealized appreciation on:
Forward currency contracts		—			—			—
Swap agreements		—			—			—
Prepaid expenses		—			760			—
Total assets		13,219,122,001			244,165,716			282,644,244
LIABILITIES
Due to custodian		—			—			—
Cash collateral due to broker on swap agreements		—			—			—
Payables for:
Management fees		10,920,401			182,051			232,774
Accrued custodian fees		3,804,663			88,666			114,195
Accrued distribution fees		315,450			378			2,529
Accrued professional services		58,396			27,873			35,623
Capital stock redeemed		22,609,842			6,262,488			439,332
Investments purchased		5,659,007			5,259,433			298,834
Dividends		—			—			—
Gross unrealized depreciation on:
Forward currency contracts		—			—			—
Swap agreements		—			—			—
Written options, at fair value		—			—			—
Other accrued expenses and payables		2,112,647			174,677			221,643
Total liabilities		45,480,406			11,995,566			1,344,930
Net assets	$	13,173,641,595		$	232,170,150		$	281,299,314
NET ASSETS
Paid in capital	$	11,739,447,804		$	186,258,473		$	349,798,541
Undistributed (Distributions in excess of) net investment income (loss)		33,735,126			(20,535	)		(267,663	)
Accumulated net realized gain (loss)		(940,455,001	)		(12,115,938	)		(138,472,373	)
Net unrealized appreciation (depreciation) on:
Investments		2,367,675,987			58,059,977			70,233,590
Non-controlled affiliated issuers		(26,707,994	)		—			—
Foreign currency translations and forward currency contracts		(54,327	)		(11,827	)		7,219
Written options		—			—			—
Swap agreements		—			—			—
Net assets	$	13,173,641,595		$	232,170,150		$	281,299,314
Institutional Shares
Net assets	$	11,285,358,201		$	230,342,628		$	268,730,254
Shares of capital stock outstanding*		563,580,657			18,723,561			18,562,591
Net asset value, offering and redemption price per share	$	20.02		$	12.30		$	14.48
Open Shares
Net assets	$	1,515,715,107		$	1,827,522		$	12,569,060
Shares of capital stock outstanding*		73,583,131			148,907			869,884
Net asset value, offering and redemption price per share	$	20.60		$	12.27		$	14.45
R6 Shares
Net assets	$	372,568,287			—			—
Shares of capital stock outstanding*		18,608,156			—			—
Net asset value, offering and redemption price per share	$	20.02			—			—
Cost of investments in securities	$	10,615,058,818		$	184,902,655		$	211,294,903
Cost of non-controlled affiliated issuers	$	229,561,727		$	—		$	—
Proceeds received from written options	$	—		$	—		$	—
Cost of foreign currency	$	982,710		$	3,312		$	5,217

* $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.

84  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
$	4,579,418		$	395,394,135		$	247,522,855		$	281,854,075		$	244,017,539		$	5,466,301
	—			—			—			—			—			—
	—			39,992			1,515,259			—			—			400,000
	—			—			60,000			340,000			920,000			—
	313			20,286			350,954			787,650			426,148			19,341
	348			665,758			325,560			48,979			595,000			—
	3,504			280,170			1,009,930			4,872,069			2,797,090			60,374
	—			129,245			62,128			1,893,351			—			—
	35,833			—			—			—			—			13,285
	—			—			1,273,203			1,612,123			3,734,038			161,856
	—			—			139,660			—			531,291			—
	5,362			—			—			—			—			5,181
	4,624,778			396,529,586			252,259,549			291,408,247			253,021,106			6,126,338
	—			—			—			5,519			40,000			—
	—			—			510,000			—			2,310,000			—
	—			325,468			206,422			176,916			185,499			—
	47,116			153,190			158,749			141,692			88,444			22,644
	74			2,019			160			1,368			231			23
	28,397			38,639			47,547			29,890			26,416			24,354
	—			108,702			779,795			92,778			253,689			914
	—			385,640			259,030			1,742,650			361,419			—
	—			—			—			123			—			—
	—			—			1,200,651			1,648,922			4,113,389			40,994
	—			—			61,010			59,623			234,289			—
	—			—			561,641			—			2,366,985			—
	2,200			296,412			126,288			179,854			8,703			3,246
	77,787			1,310,070			3,911,293			4,079,335			9,989,064			92,175
$	4,546,991		$	395,219,516		$	248,348,256		$	287,328,912		$	243,032,042		$	6,034,163
$	3,650,103		$	391,433,269		$	238,446,098		$	324,639,052		$	250,934,700		$	5,541,926
	(4,234	)		(704,294	)		(231,757	)		(6,656,272	)		(1,244,305	)		400,025
	(221,964	)		(63,948,713	)		(16,018,850	)		(34,502,415	)		(10,358,480	)		—
	1,123,079			68,438,821			26,356,644			3,948,097			5,283,569			(27,996	)
	—			—			—			—			—			—
	7			433			72,691			(39,927	)		(382,720	)		120,208
	—			—			(355,220	)		—			(1,497,724	)		—
	—			—			78,650			(59,623	)		297,002			—
$	4,546,991		$	395,219,516		$	248,348,256		$	287,328,912		$	243,032,042		$	6,034,163
$	4,190,983		$	385,491,860		$	247,618,416		$	280,808,273		$	242,040,159		$	5,924,841
	341,687			29,825,093			25,479,727			33,323,876			26,808,845			648,255
$	12.27		$	12.93		$	9.72		$	8.43		$	9.03		$	9.14
$	356,008		$	9,727,656		$	729,840		$	6,519,529		$	991,883		$	109,322
	29,020			751,456			74,977			766,577			109,240			11,589
$	12.27		$	12.95		$	9.73		$	8.50		$	9.08		$	9.43
	—			—			—		$	1,110			—			—
	—			—			—			125			—			—
	—			—			—		$	8.88			—			—
$	3,456,339		$	326,696,931		$	221,051,653		$	277,747,750		$	238,733,970		$	5,493,432
$	—		$	—		$	—		$	—		$	—		$	—
$	—		$	—		$	206,421		$	—		$	869,261		$	—
$	310		$	20,131		$	353,517		$	782,364		$	438,630		$	19,257

Annual Report  85

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2017	Lazard Emerging Markets Equity Portfolio			Lazard Emerging Markets Core Equity Portfolio			Lazard Developing Markets Equity Portfolio
Investment Income (Loss)
Income
Dividends
Unaffiliated issuers	$	371,417,853		$	3,711,640		$	3,404,579
Non-controlled affiliated issuers (Note 5)		4,549,165			—			—
Interest		—			—			—
Total investment income*		375,967,018			3,711,640			3,404,579
Expenses
Management fees (Note 3)		129,393,062			1,706,514			2,401,607
Custodian fees		6,528,206			145,454			183,052
Distribution fees (Open Shares)		3,653,542			3,256			23,015
Administration fees		1,202,839			38,323			48,682
Shareholders’ reports		806,226			14,513			24,214
Shareholders’ meeting		605,333			9,130			15,593
Shareholders’ services		476,674			27,733			33,040
Directors’ fees and expenses		423,898			10,044			12,473
Professional services		354,198			51,372			73,169
Registration fees		88,276			42,957			38,196
Amortization of offering costs (Note 2(i))		—			—			—
Other^		286,597			9,471			11,522
Total gross expenses		143,818,851			2,058,767			2,864,563
Management fees waived and expenses reimbursed		(919	)		(11,057	)		—
Administration fees waived		—			—			—
Total net expenses		143,817,932			2,047,710			2,864,563
Net investment income (loss)		232,149,086			1,663,930			540,016
Net Realized and Unrealized Gain (Loss) on Investments, Non-Controlled Affiliated Issuers, Foreign Currency Transactions, Forward Currency Contracts, Futures Contracts, Options and Swap Agreements
Net realized gain (loss) on:
Investments**		351,487,616			919,730			25,275,136
Non-controlled affiliated issuers		(34,724,037	)		—			—
Foreign currency transactions		(3,071,719	)		(45,387	)		(60,140	)
Forward currency contracts		—			—			—
Futures contracts		—			—			—
Written options		—			—			—
Swap agreements		—			—			—
Total net realized gain (loss) on investments, non-controlled affiliated issuers, foreign currency transactions, forward currency contracts, futures contracts, options and swap agreements		313,691,860			874,343			25,214,996
Net change in unrealized appreciation (depreciation) on:
Investments†		2,462,607,529			52,704,777			54,798,630
Non-controlled affiliated issuers		97,938,666			—			—
Foreign currency translations		(79,048	)		(11,553	)		13,186
Forward currency contracts		—			—			—
Written options		—			—			—
Swap agreements		—			—			—
Total net change in unrealized appreciation (depreciation) on investments, non-controlled affiliated issuers, foreign currency translations, forward currency contracts, options, and swap agreements		2,560,467,147			52,693,224			54,811,816
Net realized and unrealized gain (loss) on investments, non-controlled affiliated issuers, foreign currency transactions, forward currency contracts, futures contracts, options and swap agreements		2,874,159,007			53,567,567			80,026,812
Net increase (decrease) in net assets resulting from operations	$	3,106,308,093		$	55,231,497		$	80,566,828
* Net of foreign withholding taxes of	$	50,851,807		$	432,899		$	371,332
** Net of foreign capital gains taxes of	$	2,137,126		$	—		$	—
† Includes net change in unrealized appreciation (depreciation) of foreign capital gains taxes of	$	3,683,712		$	(185,721	)	$	(207,678	)
^ Includes interest on line of credit of	$	—		$	131		$	529

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

86  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
$	85,599		$	7,393,213		$	2,811,505		$	—		$	—		$	—
	—			—			—			—			—			—
	—			—			4,154,415			17,768,761			11,256,974			350,500
	85,599			7,393,213			6,965,920			17,768,761			11,256,974			350,500
	32,472			3,514,056			2,236,266			2,064,342			2,297,358			74,115
	82,015			264,270			262,965			238,863			141,507			40,765
	504			21,138			2,060			19,965			3,129			313
	15,521			64,273			46,364			56,295			50,544			16,344
	2,999			129,700			25,825			28,770			10,044			5,133
	2,416			81,002			9,804			18,663			4,133			2,249
	26,110			36,008			26,971			42,001			26,542			26,102
	5,118			16,078			12,111			14,046			13,539			5,424
	45,817			75,836			91,771			65,221			56,814			44,951
	33,572			45,430			37,855			40,726			39,166			31,347
	—			—			—			4,219			—			—
	5,525			24,125			17,788			23,650			22,804			9,120
	252,069			4,271,916			2,769,780			2,616,761			2,665,580			255,863
	(204,741	)		(954	)		(12,153	)		(27,241	)		(11,698	)		(147,732	)
	(4,688	)		—			—			—			—			(4,688	)
	42,640			4,270,962			2,757,627			2,589,520			2,653,882			103,443
	42,959			3,122,251			4,208,293			15,179,241			8,603,092			247,057
	259,389			42,045,673			16,152,968			1,829,747			4,376,517			93,707
	—			—			—			—			—			—
	(263	)		(84,574	)		406,787			(68,298	)		1,598,078			17,468
	(97	)		—			145,530			1,049,007			(1,997,090	)		598,476
	—			—			78,953			—			305,435			—
	—			—			(52,619	)		(59,326	)		(179,940	)		—
	—			—			(544,119	)		20,398			(1,966,281	)		—
	259,029			41,961,099			16,187,500			2,771,528			2,136,719			709,651
	1,003,922			59,342,795			23,349,026			14,206,566			6,386,526			232,868
	—			—			—			—			—			—
	4			486			2,173			4,776			(4,286	)		509
	—			—			204,469			73,664			(194,655	)		175,434
	—			—			(335,276	)		55,352			(1,415,748	)		—
	—			—			(39,321	)		(59,623	)		(58,507	)		—
	1,003,926			59,343,281			23,181,071			14,280,735			4,713,330			408,811
	1,262,955			101,304,380			39,368,571			17,052,263			6,850,049			1,118,462
$	1,305,914		$	104,426,631		$	43,576,864		$	32,231,504		$	15,453,141		$	1,365,519
$	11,581		$	840,538		$	323,918		$	200,403		$	—		$	—
$	—		$	155,852		$	44,319		$	55,739		$	—		$	—
$	—		$	(229,357	)	$	(112,146	)	$	(158,228	)	$	—		$	(865	)
$	3		$	—		$	—		$	—		$	—		$	501

Annual Report  87

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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	232,149,086		$	161,659,723		$	1,663,930		$	1,046,522
Net realized gain (loss) on investments, non-controlled affiliated issuers and foreign currency transactions		313,691,860			(577,994,447	)		874,343			(10,076,393	)
Net change in unrealized appreciation (depreciation) on investments, non-controlled affiliated issuers, foreign currency translations and forward currency contracts		2,560,467,147			2,342,584,278			52,693,224			13,204,494
Net increase (decrease) in net assets resulting from operations		3,106,308,093			1,926,249,554			55,231,497			4,174,623
Distributions to shareholders
From net investment income
Institutional Shares		(226,996,334	)		(138,953,537	)		(1,586,481	)		(954,083	)
Open Shares		(25,915,499	)		(15,721,592	)		(6,719	)		(6,127	)
R6 Shares		(7,709,553	)		(2,890,782	)		—			—
Return of capital
Institutional Shares		—			—			—			—
Open Shares		—			—			—			—
Net decrease in net assets resulting from distributions		(260,621,386	)		(157,565,911	)		(1,593,200	)		(960,210	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		2,397,757,706			1,850,010,111			85,403,283			49,454,736
Open Shares		235,224,321			623,041,652			868,346			1,099,565
R6 Shares		206,333,563			28,742,036			—			—
Net proceeds from reinvestment of distributions
Institutional Shares		209,533,744			131,660,395			1,345,985			770,627
Open Shares		25,363,644			15,351,111			6,640			6,092
R6 Shares		5,546,775			1,340,183			—			—
Cost of shares redeemed
Institutional Shares		(3,081,652,165	)		(2,417,690,835	)		(32,647,462	)		(32,632,950	)
Open Shares		(357,782,554	)		(416,901,456	)		(169,401	)		(2,953,542	)
R6 Shares		(109,573,255	)		(3,035,306	)		—			—
Net increase (decrease) in net assets from capital stock transactions		(469,248,221	)		(187,482,109	)		54,807,391			15,744,528
Redemption fees (Note 2(k))
Institutional Shares		—			25,687			—			939
Open Shares		—			5,762			—			—
Net increase in net assets from redemption fees		—			31,449			—			939
Total increase (decrease) in net assets		2,376,438,486			1,581,232,983			108,445,688			18,959,880
Net assets at beginning of period		10,797,203,109			9,215,970,126			123,724,462			104,764,582
Net assets at end of period*	$	13,173,641,595		$	10,797,203,109		$	232,170,150		$	123,724,462
*Includes undistributed (distributions in excess of) net investment income (loss) of	$	33,735,126		$	67,416,271		$	(20,535	)	$	(45,878	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		583,417,967			612,915,207			13,928,987			11,913,811
Shares sold		135,632,859			124,977,329			7,668,413			5,746,230
Shares issued to shareholders from reinvestment of distributions		10,790,481			8,256,831			111,106			88,375
Shares redeemed		(166,260,650	)		(162,731,400	)		(2,984,945	)		(3,819,429	)
Net increase (decrease)		(19,837,310	)		(29,497,240	)		4,794,574			2,015,176
Shares outstanding at end of period		563,580,657			583,417,967			18,723,561			13,928,987
Open Shares
Shares outstanding at beginning of period		78,456,674			60,265,874			82,765			273,190
Shares sold		12,723,698			45,190,925			81,829			131,958
Shares issued to shareholders from reinvestment of distributions		1,272,648			934,081			550			699
Shares redeemed		(18,869,889	)		(27,934,206	)		(16,237	)		(323,082	)
Net increase (decrease)		(4,873,543	)		18,190,800			66,142			(190,425	)
Shares outstanding at end of period		73,583,131			78,456,674			148,907			82,765
R6 Shares
Shares outstanding at beginning of period		12,405,126			10,761,543			—			—
Shares sold		11,657,944			1,756,087			—			—
Shares issued to shareholders from reinvestment of distributions		285,927			84,140			—			—
Shares redeemed		(5,740,841	)		(196,644	)		—			—
Net increase (decrease)		6,203,030			1,643,583			—			—
Shares outstanding at end of period		18,608,156			12,405,126			—			—

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

88  Annual Report

Lazard Developing Markets Equity Portfolio						Lazard Emerging Markets Equity Advantage Portfolio						Lazard Emerging Markets Equity Blend Portfolio
Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Period Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
$	540,016		$	1,261,779		$	42,959		$	40,729		$	3,122,251		$	2,436,868
	25,214,996			(28,631,539	)		259,029			(276,680	)		41,961,099			(26,087,003	)
	54,811,816			69,293,419			1,003,926			503,777			59,343,281			54,249,302
	80,566,828			41,923,659			1,305,914			267,826			104,426,631			30,599,167
	(545,028	)		(1,789,340	)		(45,503	)		(43,969	)		(3,582,638	)		(1,412,652	)
	—			(45,302	)		(2,873	)		(1,641	)		(54,048	)		(13,457	)
	—			—			—			—			—			—
	—			—			(2,064	)		(2,269	)		—			—
	—			—			(130	)		(85	)		—			—
	(545,028	)		(1,834,642	)		(50,570	)		(47,964	)		(3,636,686	)		(1,426,109	)
	78,511,154			80,883,514			74,003			18,704			52,451,495			67,218,772
	5,394,446			1,869,119			190,542			31,224			2,400,025			1,539,531
	—			—			—			—			—			—
	415,178			1,496,598			47,567			46,238			3,521,619			1,378,998
	—			44,974			3,003			1,726			52,594			12,996
	—			—			—			—			—			—
	(76,215,062	)		(276,473,758	)		(20,514	)		(1,350	)		(51,346,472	)		(102,375,323	)
	(3,135,641	)		(6,293,824	)		(18,223	)		(14,008	)		(1,926,477	)		(2,636,302	)
	—			—			—			—			—			—
	4,970,075			(198,473,377	)		276,378			82,534			5,152,784			(34,861,328	)
	—			522			—			—			—			359
	—			1			—			—			—			1
	—			523			—			—			—			360
	84,991,875			(158,383,837	)		1,531,722			302,396			105,942,729			(5,687,910	)
	196,307,439			354,691,276			3,015,269			2,712,873			289,276,787			294,964,697
$	281,299,314		$	196,307,439		$	4,546,991		$	3,015,269		$	395,219,516		$	289,276,787
$	(267,663	)	$	(252,731	)	$	(4,234	)	$	(1,873	)	$	(704,294	)	$	(380,821	)
	18,387,759			38,037,272			332,573			324,964			29,418,600			33,751,879
	6,432,207			8,298,641			7,161			2,406			4,610,925			7,548,866
	29,197			147,146			3,944			5,357			277,075			145,464
	(6,286,572	)		(28,095,300	)		(1,991	)		(154	)		(4,481,507	)		(12,027,609	)
	174,832			(19,649,513	)		9,114			7,609			406,493			(4,333,279	)
	18,562,591			18,387,759			341,687			332,573			29,825,093			29,418,600
	707,429			1,205,398			13,749			11,805			707,428			831,641
	420,603			193,542			16,642			3,367			207,312			166,167
	—			4,422			249			200			4,131			1,368
	(258,148	)		(695,933	)		(1,620	)		(1,623	)		(167,415	)		(291,748	)
	162,455			(497,969	)		15,271			1,944			44,028			(124,213	)
	869,884			707,429			29,020			13,749			751,456			707,428
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—

Annual Report  89

	Lazard Emerging Markets Multi-Asset Portfolio						Lazard Emerging Markets Debt Portfolio
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	4,208,293		$	3,114,272		$	15,179,241		$	15,446,547
Net realized gain (loss) on investments, foreign currency transactions, forward currency contracts, futures contracts, options and swap agreements		16,187,500			(10,354,656	)		2,771,528			(7,352,621	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency translations, forward currency contracts, options and swap agreements		23,181,071			22,474,530			14,280,735			13,899,270
Net increase (decrease) in net assets resulting from operations		43,576,864			15,234,146			32,231,504			21,993,196
Distributions to shareholders
From net investment income
Institutional Shares		(4,207,349	)		(1,827,501	)		(13,803,686	)		(5,751,051	)
Open Shares		(10,488	)		(5,679	)		(387,708	)		(154,103	)
R6 Shares		—			—			(2,026	)		(11,027	)
From net realized gains
Institutional Shares		—			—			—			—
Open Shares		—			—			—			—
Return of capital
Institutional Shares		—			—			(878,881	)		(9,184,866	)
Open Shares		—			—			(24,685	)		(246,113	)
R6 Shares		—			—			(129	)		(17,612	)
Net decrease in net assets resulting from distributions		(4,217,837	)		(1,833,180	)		(15,097,115	)		(15,364,772	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		25,201,612			35,709,659			45,172,035			44,616,278
Open Shares		91,378			347,386			3,209,100			1,631,298
R6 Shares		—			—			1,000			1,179,000
Net proceeds from reinvestment of distributions
Institutional Shares		4,205,482			1,825,988			14,640,287			14,870,730
Open Shares		10,488			5,679			412,234			399,977
R6 Shares		—			—			—			28,637
Cost of shares redeemed
Institutional Shares		(11,099,405	)		(22,385,801	)		(36,381,779	)		(83,660,576	)
Open Shares		(367,756	)		(346,949	)		(4,477,834	)		(2,341,664	)
R6 Shares		—			—			(1,158,913	)		—
Net increase (decrease) in net assets from capital stock transactions		18,041,799			15,155,962			21,416,130			(23,276,320	)
Redemption fees (Note 2(k))
Institutional Shares		—			—			—			20
Open Shares		—			—	(a)		—			—
Net increase in net assets from redemption fees		—			—	(a)		—			20
Total increase (decrease) in net assets		57,400,826			28,556,928			38,550,519			(16,647,876	)
Net assets at beginning of period		190,947,430			162,390,502			248,778,393			265,426,269
Net assets at end of period*	$	248,348,256		$	190,947,430		$	287,328,912		$	248,778,393
*Includes undistributed (distributions in excess of) net investment income (loss) of	$	(231,757	)	$	(738,064	)	$	(6,656,272	)	$	(7,591,867	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		23,468,090			21,518,578			30,470,656			33,508,407
Shares sold		2,781,137			4,477,948			5,492,748			5,473,740
Shares issued to shareholders from reinvestment of distributions		438,758			227,396			1,756,827			1,829,527
Shares redeemed		(1,208,258	)		(2,755,832	)		(4,396,355	)		(10,341,018	)
Net increase (decrease)		2,011,637			1,949,512			2,853,220			(3,037,751	)
Shares outstanding at end of period		25,479,727			23,468,090			33,323,876			30,470,656
Open Shares
Shares outstanding at beginning of period		104,144			101,155			852,546			887,388
Shares sold		10,163			45,492			390,174			205,640
Shares issued to shareholders from reinvestment of distributions		1,093			705			49,030			48,742
Shares redeemed		(40,423	)		(43,208	)		(525,173	)		(289,224	)
Net increase (decrease)		(29,167	)		2,989			(85,969	)		(34,842	)
Shares outstanding at end of period		74,977			104,144			766,577			852,546
R6 Shares†
Shares outstanding at beginning of period		—			—			144,864			—
Shares sold		—			—			125			141,367
Shares issued to shareholders from reinvestment of distributions		—			—			—			3,497
Shares redeemed		—			—			(144,864	)		—
Net increase (decrease)		—			—			(144,739	)		144,864
Shares outstanding at end of period		—			—			125			144,864

(a) Amount is less than $0.50.

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

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

90  Annual Report

Lazard Explorer Total Return Portfolio						Lazard Emerging Markets Income Portfolio
Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Period Ended December 31, 2016
$	8,603,092		$	12,168,369		$	247,057		$	232,294
	2,136,719			1,830,531			709,651			(29,597	)
	4,713,330			3,609,690			408,811			177,831
	15,453,141			17,608,590			1,365,519			380,528
	(6,253,137	)		(5,422,116	)		(245,410	)		(231,326	)
	(28,104	)		(26,993	)		—			—
	—			—			—			—
	—			—			(26,292	)		(145,213	)
	—			—			(471	)		(1,518	)
	(1,907,478	)		(6,655,559	)		—			—
	(8,573	)		(33,134	)		—			—
	—			—			—			—
	(8,197,292	)		(12,137,802	)		(272,173	)		(378,057	)
	9,865,405			21,329,605			279,121			52,500
	262,829			279,048			2,500			—
	—			—			—			—
	8,119,904			12,073,073			271,421			376,539
	36,460			59,738			471			1,517
	—			—			—			—
	(39,498,370	)		(31,730,009	)		(7,861,554	)		(1,074,555	)
	(517,628	)		(538,734	)		(35,393	)		(29,307	)
	—			—			—			—
	(21,731,400	)		1,472,721			(7,343,434	)		(673,306	)
	—			—			—			—
	—			—			—			—
	—			—			—			—
	(14,475,551	)		6,943,509			(6,250,088	)		(670,835	)
	257,507,593			250,564,084			12,284,251			12,955,086
$	243,032,042		$	257,507,593		$	6,034,163		$	12,284,251
$	(1,244,305	)	$	(2,371,921	)	$	400,025		$	(281,399	)
	29,244,079			29,101,055			1,447,433			1,519,965
	1,104,102			2,459,699			31,224			6,241
	907,944			1,377,643			30,314			43,853
	(4,447,280	)		(3,694,318	)		(860,716	)		(122,626	)
	(2,435,234	)		143,024			(799,178	)		(72,532	)
	26,808,845			29,244,079			648,255			1,447,433
	133,440			155,824			15,090			18,495
	29,262			32,116			278			—
	4,055			6,780			50			178
	(57,517	)		(61,280	)		(3,829	)		(3,583	)
	(24,200	)		(22,384	)		(3,501	)		(3,405	)
	109,240			133,440			11,589			15,090
	—			—			—			—
	—			—			—			—
	—			—			—			—
	—			—			—			—
	—			—			—			—
	—			—			—			—

Annual Report  91

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	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	15.96		$	13.44		$	17.19		$	18.67		$	19.54
Income (loss) from investment operations:
Net investment income (loss) (a)		0.33			0.24	^		0.30			0.37			0.35
Net realized and unrealized gain (loss)		4.13			2.52			(3.76	)		(1.13	)		(0.51	)
Total from investment operations		4.46			2.76			(3.46	)		(0.76	)		(0.16	)
Less distributions from:
Net investment income		(0.40	)		(0.24	)		(0.23	)		(0.37	)		(0.36	)
Net realized gains		—			—			(0.06	)		(0.35	)		(0.35	)
Total distributions		(0.40	)		(0.24	)		(0.29	)		(0.72	)		(0.71	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	20.02		$	15.96		$	13.44		$	17.19		$	18.67
Total Return (c)		28.02	%		20.52	%^		–20.16	%		–4.16	%		–0.80	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	11,285,358		$	9,311,693		$	8,238,638		$	12,156,645		$	12,691,329
Ratios to average net assets:
Net expenses		1.08	%		1.09	%^		1.10	%		1.09	%		1.09	%
Gross expenses		1.08	%		1.09	%		1.10	%		1.09	%		1.09	%
Net investment income (loss)		1.82	%		1.59	%^		1.83	%		1.97	%		1.80	%
Portfolio turnover rate		14	%		12	%		14	%		12	%		16	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	16.41		$	13.82		$	17.65		$	19.14		$	20.03
Income (loss) from investment operations:
Net investment income (loss) (a)		0.29			0.21	^		0.26			0.34			0.30
Net realized and unrealized gain (loss)		4.25			2.58			(3.84	)		(1.16	)		(0.53	)
Total from investment operations		4.54			2.79			(3.58	)		(0.82	)		(0.23	)
Less distributions from:
Net investment income		(0.35	)		(0.20	)		(0.19	)		(0.32	)		(0.31	)
Net realized gains		—			—			(0.06	)		(0.35	)		(0.35	)
Total distributions		(0.35	)		(0.20	)		(0.25	)		(0.67	)		(0.66	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	20.60		$	16.41		$	13.82		$	17.65		$	19.14
Total Return (c)		27.73	%		20.17	%^		–20.33	%		–4.39	%		–1.14	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,515,715		$	1,287,552		$	832,706		$	1,474,597		$	2,206,930
Ratios to average net assets:
Net expenses		1.34	%		1.35	%^		1.37	%		1.37	%		1.37	%
Gross expenses		1.34	%		1.35	%		1.37	%		1.37	%		1.37	%
Net investment income (loss)		1.55	%		1.35	%^		1.58	%		1.76	%		1.55	%
Portfolio turnover rate		14	%		12	%		14	%		12	%		16	%

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

92  Annual Report

							For the Period
Selected data for a share of capital stock	Year Ended						1/19/15* to
outstanding throughout each period	12/31/17			12/31/16			12/31/15
R6 Shares
Net asset value, beginning of period	$	15.96		$	13.44		$	17.26
Income (loss) from investment operations:
Net investment income (loss) (a)		0.35			0.23	^		0.27
Net realized and unrealized gain (loss)		4.11			2.53			(3.80	)
Total from investment operations		4.46			2.76			(3.53	)
Less distributions from:
Net investment income		(0.40	)		(0.24	)		(0.23	)
Net realized gains		—			—			(0.06	)
Total distributions		(0.40	)		(0.24	)		(0.29	)
Net asset value, end of period	$	20.02		$	15.96		$	13.44
Total Return (c)		28.02	%		20.52	%^		–20.50	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	372,568		$	197,959		$	144,626
Ratios to average net assets (d):
Net expenses		1.08	%		1.09	%^		1.12	%
Gross expenses		1.08	%		1.10	%		1.13	%
Net investment income (loss)		1.91	%		1.54	%^		1.79	%
Portfolio turnover rate		14	%		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 period. The amount of the reimbursement was 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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are 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 CORE EQUITY PORTFOLIO

													For the Period
Selected data for a share of capital stock	Year Ended												10/31/13* to
outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	8.83		$	8.60		$	9.62		$	9.83		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.11			0.08			0.03			0.03			(0.01	)
Net realized and unrealized gain (loss)		3.45			0.22			(1.03	)		(0.15	)		(0.16	)
Total from investment operations		3.56			0.30			(1.00	)		(0.12	)		(0.17	)
Less distributions from:
Net investment income		(0.09	)		(0.07	)		(0.01	)		(0.08	)		—
Return of capital		—			—			(0.01	)		(0.01	)		—
Total distributions		(0.09	)		(0.07	)		(0.02	)		(0.09	)		—
Redemption fees		—			—	(b)		—	(b)		—			—
Net asset value, end of period	$	12.30		$	8.83		$	8.60		$	9.62		$	9.83
Total Return (c)		40.35	%		3.47	%		–10.36	%		–1.25	%		–1.70	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	230,343		$	122,995		$	102,421		$	39,832		$	3,265
Ratios to average net assets (d):
Net expenses		1.20	%		1.30	%		1.30	%		1.30	%		1.30	%
Gross expenses		1.20	%		1.31	%		1.52	%		2.28	%		24.66	%
Net investment income (loss)		0.98	%		0.89	%		0.32	%		0.28	%		–0.71	%
Portfolio turnover rate		15	%		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	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	8.81		$	8.58		$	9.62		$	9.83		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.06			0.07			—	(b)		(0.04	)		(0.01	)
Net realized and unrealized gain (loss)		3.45			0.20			(1.04	)		(0.11	)		(0.16	)
Total from investment operations		3.51			0.27			(1.04	)		(0.15	)		(0.17	)
Less distributions from:
Net investment income		(0.05	)		(0.04	)		—			(0.05	)		—
Return of capital		—			—			—			(0.01	)		—
Total distributions		(0.05	)		(0.04	)		—			(0.06	)		—
Redemption fees		—			—			—			—	(b)		—
Net asset value, end of period	$	12.27		$	8.81		$	8.58		$	9.62		$	9.83
Total Return (c)		39.80	%		3.17	%		–10.81	%		–1.56	%		–1.70	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,828		$	729		$	2,344		$	5,266		$	627
Ratios to average net assets (d):
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%
Gross expenses		2.45	%		2.14	%		2.35	%		2.81	%		30.92	%
Net investment income (loss)		0.56	%		0.85	%		–0.04	%		–0.35	%		–0.90	%
Portfolio turnover rate		15	%		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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized.
(d)	Annualized for a period of less than one year.

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

94  Annual Report

LAZARD DEVELOPING MARKETS EQUITY PORTFOLIO

Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	10.28		$	9.04		$	10.43		$	11.81		$	12.40
Income (loss) from investment operations:
Net investment income (loss) (a)		0.03			0.05	^		0.06			0.09			0.11
Net realized and unrealized gain (loss)		4.20			1.29			(1.40	)		(1.30	)		(0.60	)
Total from investment operations		4.23			1.34			(1.34	)		(1.21	)		(0.49	)
Less distributions from:
Net investment income		(0.03	)		(0.10	)		(0.05	)		(0.17	)		(0.10	)
Total distributions		(0.03	)		(0.10	)		(0.05	)		(0.17	)		(0.10	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	14.48		$	10.28		$	9.04		$	10.43		$	11.81
Total Return (c)		41.15	%		14.81	%^		–12.84	%		–10.27	%		–3.90	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	268,730		$	189,035		$	343,788		$	426,847		$	558,716
Ratios to average net assets:
Net expenses		1.18	%		1.21	%^		1.20	%		1.19	%		1.17	%
Gross expenses		1.18	%		1.23	%		1.20	%		1.19	%		1.17	%
Net investment income (loss)		0.24	%		0.48	%^		0.55	%		0.80	%		0.96	%
Portfolio turnover rate		46	%		56	%		66	%		57	%		48	%

Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	10.28		$	9.05		$	10.43		$	11.81		$	12.40
Income (loss) from investment operations:
Net investment income (loss) (a)		(0.02	)		0.01	^		0.01			0.08			0.11
Net realized and unrealized gain (loss)		4.19			1.28			(1.38	)		(1.33	)		(0.63	)
Total from investment operations		4.17			1.29			(1.37	)		(1.25	)		(0.52	)
Less distributions from:
Net investment income		—			(0.06	)		(0.01	)		(0.13	)		(0.07	)
Total distributions		—			(0.06	)		(0.01	)		(0.13	)		(0.07	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	14.45		$	10.28		$	9.05		$	10.43		$	11.81
Total Return (c)		40.56	%		14.31	%^		–13.11	%		–10.57	%		–4.18	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	12,569		$	7,272		$	10,903		$	16,029		$	44,324
Ratios to average net assets:
Net expenses		1.58	%		1.60	%^		1.57	%		1.49	%		1.45	%
Gross expenses		1.58	%		1.65	%		1.57	%		1.49	%		1.45	%
Net investment income (loss)		–0.17	%		0.06	%^		0.13	%		0.70	%		0.90	%
Portfolio turnover rate		46	%		56	%		66	%		57	%		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 period. The amount of the reimbursement was 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 the period custodian fees was offset against the 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 may have been waived or reimbursed by the 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  95

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	12/31/17			12/31/16			12/31/15
Institutional Shares
Net asset value, beginning of period	$	8.71		$	8.06		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.12			0.12			0.08
Net realized and unrealized gain (loss)		3.58			0.67			(1.88	)
Total from investment operations		3.70			0.79			(1.80	)
Less distributions from:
Net investment income		(0.13	)		(0.13	)		(0.14	)
Return of capital		(0.01	)		(0.01	)		—
Total distributions		(0.14	)		(0.14	)		(0.14	)
Net asset value, end of period	$	12.27		$	8.71		$	8.06
Total Return (b)		42.52	%		9.83	%		–17.97	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	4,191		$	2,896		$	2,618
Ratios to average net assets (c):
Net expenses		1.10	%		1.10	%		1.10	%
Gross expenses		6.29	%		9.57	%		11.47	%
Net investment income (loss)		1.15	%		1.41	%		1.54	%
Portfolio turnover rate		52	%		57	%		38	%

							For the Period
Selected data for a share of capital stock	Year Ended						5/29/15* to
outstanding throughout each period	12/31/17			12/31/16			12/31/15
Open Shares
Net asset value, beginning of period	$	8.71		$	8.06		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.08			0.09			0.06
Net realized and unrealized gain (loss)		3.58			0.68			(1.87	)
Total from investment operations		3.66			0.77			(1.81	)
Less distributions from:
Net investment income		(0.09	)		(0.11	)		(0.13	)
Return of capital		(0.01	)		(0.01	)		—
Total distributions		(0.10	)		(0.12	)		(0.13	)
Net asset value, end of period	$	12.27		$	8.71		$	8.06
Total Return (b)		42.09	%		9.51	%		–18.13	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	356		$	120		$	95
Ratios to average net assets (c):
Net expenses		1.40	%		1.40	%		1.40	%
Gross expenses		12.17	%		20.02	%		26.37	%
Net investment income (loss)		0.72	%		1.06	%		1.18	%
Portfolio turnover rate		52	%		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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized.
(c)	Annualized for a period of less than one year.

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

96  Annual Report

LAZARD EMERGING MARKETS EQUITY BLEND PORTFOLIO

Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	9.60		$	8.53		$	10.00		$	11.18		$	11.45
Income (loss) from investment operations:
Net investment income (loss) (a)		0.10			0.08	^		0.12			0.15			0.11
Net realized and unrealized gain (loss)		3.35			1.04			(1.39	)		(1.12	)		(0.24	)
Total from investment operations		3.45			1.12			(1.27	)		(0.97	)		(0.13	)
Less distributions from:
Net investment income		(0.12	)		(0.05	)		(0.19	)		(0.21	)		(0.08	)
Net realized gains		—			—			—			—			(0.05	)
Return of capital		—			—			(0.01	)		—	(b)		(0.01	)
Total distributions		(0.12	)		(0.05	)		(0.20	)		(0.21	)		(0.14	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	12.93		$	9.60		$	8.53		$	10.00		$	11.18
Total Return (c)		35.98	%		13.12	%^		–12.74	%		–8.66	%		–1.14	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	385,492		$	282,473		$	287,857		$	463,043		$	478,754
Ratios to average net assets:
Net expenses		1.21	%		1.25	%^		1.20	%		1.28	%		1.30	%
Gross expenses		1.21	%		1.26	%		1.20	%		1.28	%		1.33	%
Net investment income (loss)		0.90	%		0.88	%^		1.22	%		1.33	%		1.00	%
Portfolio turnover rate		57	%		47	%		38	%		44	%		48	%
Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	9.62		$	8.55		$	9.99		$	11.17		$	11.44
Income (loss) from investment operations:
Net investment income (loss) (a)		0.06			0.05	^		0.11			0.10			0.07
Net realized and unrealized gain (loss)		3.34			1.04			(1.38	)		(1.10	)		(0.24	)
Total from investment operations		3.40			1.09			(1.27	)		(1.00	)		(0.17	)
Less distributions from:
Net investment income		(0.07	)		(0.02	)		(0.17	)		(0.18	)		(0.04	)
Net realized gains		—			—			—			—			(0.05	)
Return of capital		—			—			—	(b)		—	(b)		(0.01	)
Total distributions		(0.07	)		(0.02	)		(0.17	)		(0.18	)		(0.10	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	12.95		$	9.62		$	8.55		$	9.99		$	11.17
Total Return (c)		35.38	%		12.74	%^		–12.77	%		–8.95	%		–1.47	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	9,728		$	6,804		$	7,107		$	123,756		$	118,594
Ratios to average net assets:
Net expenses		1.60	%		1.60	%^		1.54	%		1.60	%		1.60	%
Gross expenses		1.61	%		1.89	%		1.54	%		1.63	%		1.69	%
Net investment income (loss)		0.50	%		0.54	%^		1.10	%		0.94	%		0.61	%
Portfolio turnover rate		57	%		47	%		38	%		44	%		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 period. The amount of the reimbursement was 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 may have been waived or reimbursed by the 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  97

LAZARD EMERGING MARKETS MULTI-ASSET PORTFOLIO

Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	8.10		$	7.51		$	8.58		$	9.28		$	9.70
Income (loss) from investment operations:
Net investment income (loss) (a)		0.17			0.14	^		0.13			0.17			0.13
Net realized and unrealized gain (loss)		1.62			0.53			(1.12	)		(0.70	)		(0.37	)
Total from investment operations		1.79			0.67			(0.99	)		(0.53	)		(0.24	)
Less distributions from:
Net investment income		(0.17	)		(0.08	)		(0.08	)		(0.17	)		(0.10	)
Net realized gains		—			—			—			—			(0.08	)
Return of capital		—			—			—			—	(b)		—
Total distributions		(0.17	)		(0.08	)		(0.08	)		(0.17	)		(0.18	)
Redemption fees		—			—			—			—	(b)		—	(b)
Net asset value, end of period	$	9.72		$	8.10		$	7.51		$	8.58		$	9.28
Total Return (c)		22.08	%		8.91	%^		–11.59	%		–5.57	%		–2.41	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	247,618		$	190,102		$	161,629		$	194,451		$	223,328
Ratios to average net assets:
Net expenses		1.23	%		1.30	%^		1.30	%		1.28	%		1.30	%
Gross expenses		1.23	%		1.31	%		1.32	%		1.28	%		1.31	%
Net investment income (loss)		1.88	%		1.73	%^		1.52	%		1.86	%		1.42	%
Portfolio turnover rate		95	%		111	%		109	%		122	%		155	%

Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	8.12		$	7.53		$	8.60		$	9.29		$	9.71
Income (loss) from investment operations:
Net investment income (loss) (a)		0.14			0.12	^		0.10			0.15			0.10
Net realized and unrealized gain (loss)		1.60			0.52			(1.12	)		(0.70	)		(0.37	)
Total from investment operations		1.74			0.64			(1.02	)		(0.55	)		(0.27	)
Less distributions from:
Net investment income		(0.13	)		(0.05	)		(0.05	)		(0.14	)		(0.07	)
Net realized gains		—			—			—			—			(0.08	)
Return of capital		—			—			—			—	(b)		—
Total distributions		(0.13	)		(0.05	)		(0.05	)		(0.14	)		(0.15	)
Redemption fees		—			—	(b)		—			—			—	(b)
Net asset value, end of period	$	9.73		$	8.12		$	7.53		$	8.60		$	9.29
Total Return (c)		21.49	%		8.57	%^		–11.85	%		–5.89	%		–2.73	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	730		$	845		$	761		$	1,198		$	2,185
Ratios to average net assets:
Net expenses		1.60	%		1.60	%^		1.60	%		1.60	%		1.60	%
Gross expenses		3.07	%		2.94	%		2.96	%		2.23	%		2.52	%
Net investment income (loss)		1.54	%		1.46	%^		1.22	%		1.63	%		1.03	%
Portfolio turnover rate		95	%		111	%		109	%		122	%		155	%

^	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 period. The amount of the reimbursement was 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 the period custodian fees was offset against the 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 may have been waived or reimbursed by the 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.

98  Annual Report

LAZARD EMERGING MARKETS DEBT PORTFOLIO

Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	7.90		$	7.71		$	8.84		$	9.53		$	10.85
Income (loss) from investment operations:
Net investment income (loss) (a)		0.46			0.48	^		0.39			0.49			0.49
Net realized and unrealized gain (loss)		0.53			0.19			(1.13	)		(0.66	)		(1.25	)
Total from investment operations		0.99			0.67			(0.74	)		(0.17	)		(0.76	)
Less distributions from:
Net investment income		(0.43	)		(0.19	)		—	(b)		(0.15	)		(0.52	)
Net realized gains		—			—			—			—			(0.04	)
Return of capital		(0.03	)		(0.29	)		(0.39	)		(0.37	)		—
Total distributions		(0.46	)		(0.48	)		(0.39	)		(0.52	)		(0.56	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	8.43		$	7.90		$	7.71		$	8.84		$	9.53
Total Return (c)		12.69	%		8.64	%^		–8.55	%		–2.07	%		–7.13	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	280,808		$	240,833		$	258,517		$	326,165		$	446,180
Ratios to average net assets:
Net expenses		0.93	%		0.96	%^		0.96	%		0.96	%		0.97	%
Gross expenses		0.93	%		0.96	%		0.96	%		0.96	%		0.97	%
Net investment income (loss)		5.52	%		5.90	%^		4.69	%		5.14	%		4.84	%
Portfolio turnover rate		88	%		118	%		162	%		204	%		108	%
Selected data for a share of capital stock	Year Ended
outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	7.98		$	7.79		$	8.91		$	9.59		$	10.88
Income (loss) from investment operations:
Net investment income (loss) (a)		0.44			0.46	^		0.36			0.46			0.45
Net realized and unrealized gain (loss)		0.51			0.19			(1.11	)		(0.68	)		(1.24	)
Total from investment operations		0.95			0.65			(0.75	)		(0.22	)		(0.79	)
Less distributions from:
Net investment income		(0.40	)		(0.18	)		—	(b)		(0.09	)		(0.46	)
Net realized gains		—			—			—			—			(0.04	)
Return of capital		(0.03	)		(0.28	)		(0.37	)		(0.37	)		—
Total distributions		(0.43	)		(0.46	)		(0.37	)		(0.46	)		(0.50	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	8.50		$	7.98		$	7.79		$	8.91		$	9.59
Total Return (c)		12.16	%		8.27	%^		–8.64	%		–2.53	%		–7.35	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	6,520		$	6,801		$	6,910		$	1,107		$	9,310
Ratios to average net assets:
Net expenses		1.22	%		1.28	%^		1.30	%		1.30	%		1.30	%
Gross expenses		1.36	%		1.40	%		1.75	%		1.71	%		1.39	%
Net investment income (loss)		5.21	%		5.59	%^		4.54	%		4.80	%		4.45	%
Portfolio turnover rate		88	%		118	%		162	%		204	%		108	%

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

Annual Report  99

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/17			For the Period 7/28/16* to 12/31/16
R6 Shares
Net asset value, beginning of period	$	7.90		$	8.34
Income (loss) from investment operations:
Net investment income (loss) (a)		0.45			0.20	^
Net realized and unrealized gain (loss)		0.54			(0.44	)
Total from investment operations		0.99			(0.24	)
Less distributions from:
Net investment income		(0.01	)		(0.08	)
Return of capital		—	(b)		(0.12	)
Total distributions		(0.01	)		(0.20	)
Net asset value, end of period	$	8.88		$	7.90
Total Return (c)		12.61	%		–2.93	%^
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1		$	1,145
Ratios to average net assets (d):
Net expenses		0.90	%		0.90	%^
Gross expenses		43.88	%		2.21	%
Net investment income (loss)		5.71	%		5.73	%^
Portfolio turnover rate		88	%		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 period. The amount of the reimbursement was 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 the period custodian fees was offset against the 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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are 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.

100  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	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	8.77		$	8.56		$	9.32		$	9.86		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.31			0.42			0.28			0.36			0.16
Net realized and unrealized gain (loss)		0.24			0.21			(0.75	)		(0.38	)		(0.12	)
Total from investment operations		0.55			0.63			(0.47	)		(0.02	)		0.04
Less distributions from:
Net investment income		(0.22	)		(0.19	)		(0.15	)		(0.49	)		(0.18	)
Net realized gains		—			—			—			(0.01	)		—
Return of capital		(0.07	)		(0.23	)		(0.14	)		(0.02	)		—
Total distributions		(0.29	)		(0.42	)		(0.29	)		(0.52	)		(0.18	)
Redemption fees		—			—			—			—	(b)		—
Net asset value, end of period	$	9.03		$	8.77		$	8.56		$	9.32		$	9.86
Total Return (c)		6.41	%		7.47	%		–5.13	%		–0.21	%		0.38	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	242,040		$	256,331		$	249,222		$	133,473		$	31,450
Ratios to average net assets (d):
Net expenses		1.06	%		1.12	%		1.16	%		1.24	%		1.30	%
Gross expenses		1.06	%		1.12	%		1.16	%		1.30	%		2.97	%
Net investment income (loss)		3.45	%		4.80	%		3.17	%		3.57	%		3.15	%
Portfolio turnover rate		152	%		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	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	8.82		$	8.61		$	9.37		$	9.88		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.28			0.39			0.24			0.33			0.14
Net realized and unrealized gain (loss)		0.24			0.21			(0.75	)		(0.38	)		(0.11	)
Total from investment operations		0.52			0.60			(0.51	)		(0.05	)		0.03
Less distributions from:
Net investment income		(0.20	)		(0.17	)		(0.12	)		(0.43	)		(0.15	)
Net realized gains		—			—			—			(0.01	)		—
Return of capital		(0.06	)		(0.22	)		(0.14	)		(0.02	)		—
Total distributions		(0.26	)		(0.39	)		(0.26	)		(0.46	)		(0.15	)
Redemption fees		—			—			0.01			—	(b)		—
Net asset value, end of period	$	9.08		$	8.82		$	8.61		$	9.37		$	9.88
Total Return (c)		6.02	%		7.07	%		–5.42	%		–0.52	%		0.27	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	992		$	1,176		$	1,342		$	7,150		$	2,665
Ratios to average net assets (d):
Net expenses		1.42	%		1.48	%		1.50	%		1.54	%		1.60	%
Gross expenses		2.36	%		2.34	%		1.66	%		1.78	%		5.01	%
Net investment income (loss)		3.09	%		4.46	%		2.62	%		3.26	%		2.78	%
Portfolio turnover rate		152	%		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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are 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  101

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	12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	8.40		$	8.42		$	9.16		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.19			0.16			0.01			0.01
Net realized and unrealized gain (loss)		0.79			0.08			(0.74	)		(0.85	)
Total from investment operations		0.98			0.24			(0.73	)		(0.84	)
Less distributions from:
Net investment income		(0.20	)		(0.16	)		—			—
Net realized gains		(0.04	)		(0.10	)		—			—
Return of capital		—			—			(0.01	)		—
Total distributions		(0.24	)		(0.26	)		(0.01	)		—
Net asset value, end of period	$	9.14		$	8.40		$	8.42		$	9.16
Total Return (b)		11.73	%		2.82	%		–7.94	%		–8.30	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	5,925		$	12,156		$	12,800		$	4,985
Ratios to average net assets (c):
Net expenses		0.90	%		0.90	%		0.90	%		0.90	%
Gross expenses		2.13	%		2.25	%		2.55	%		5.15	%
Net investment income (loss)		2.17	%		1.80	%		0.09	%		0.10	%
Portfolio turnover rate		74	%		174	%		175	%		125	%
										For the Period
Selected data for a share of capital stock	Year Ended									4/30/14* to
outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	8.50		$	8.39		$	9.14		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.18			0.13			(0.02	)		(0.01	)
Net realized and unrealized gain (loss)		0.79			0.08			(0.73	)		(0.85	)
Total from investment operations		0.97			0.21			(0.75	)		(0.86	)
Less distributions from:
Net realized gains		(0.04	)		(0.10	)		—			—
Total distributions		(0.04	)		(0.10	)		—			—
Net asset value, end of period	$	9.43		$	8.50		$	8.39		$	9.14
Total Return (b)		11.42	%		2.52	%		–8.21	%		–8.50	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	109		$	128		$	155		$	132
Ratios to average net assets (c):
Net expenses		1.13	%		1.20	%		1.20	%		1.20	%
Gross expenses		12.51	%		12.29	%		12.19	%		13.96	%
Net investment income (loss)		1.96	%		1.51	%		–0.18	%		–0.18	%
Portfolio turnover rate		74	%		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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized.
(c)	Annualized for a period of less than one year.

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

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The Lazard Funds, Inc. Notes to Financial Statements December 31, 2017

1. Organization

The Lazard Funds, Inc. 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-four no-load 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 accordance with 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—Equity securities traded on a securities exchange or market, including exchange-traded option contracts, rights and warrants, are valued at the last reported sales price (for domestic equity securities) or the closing price (for foreign equity securities) on the exchange or market on which the security is principally traded or, for securities trading on the NASDAQ National Market System (“NASDAQ”), the NASDAQ Official Closing Price. If there is no available closing price for a foreign equity security, the last

reported sales price is used. If there are no reported sales of a security on the valuation date, the security is valued at the most recent quoted bid price on such date reported by such principal exchange or market. Exchange-traded futures contracts are valued at the settlement price on the exchange on which the contract is principally traded. Swap agreements, such as credit default, interest rate and total return swap agreements, 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 New York Stock Exchange (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.

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

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

(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Dividend income is recorded on the ex-dividend date except for certain dividends from 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 and/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/or 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 represents net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency 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.

104  Annual Report

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, 2017, the Emerging Markets Multi-Asset, Emerging Markets Debt, Explorer Total Return and Emerging Markets Income Portfolios traded in forward currency contracts.

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

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

Engaging in these transactions involves risk of loss to the Portfolio which could adversely affect the value of the Portfolio’s net assets. Although each of these Portfolios intends to purchase or sell futures contracts only if there is an active market for such contracts, no assurance can be given that a liquid market will exist for any particular contract at any particular time. Many futures exchanges and boards of trade limit the amount of fluctuation permitted in futures contract prices during a single trading day. Once the daily limit has been reached in a particular contract, no trades may be made that day at a price beyond that limit or trading may be suspended for specified periods during the trading day. Futures contract prices could move to the limit for several consecutive trading days

with little or no trading, thereby preventing prompt liquidation of futures positions and potentially subjecting the Portfolio to substantial losses.

During the year ended December 31, 2017, the Emerging Markets Multi-Asset and Explorer Total Return Portfolios traded in futures contracts.

(e) 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, 2017, the Emerging Markets Multi-Asset, Emerging Markets Debt and Explorer Total Return Portfolios traded in options transactions.

(f) Swap Agreements—A Portfolio may enter into credit default swap agreements whereby one counterparty (the “Protection Buyer”) pays an upfront pay-

Annual Report  105

ment or a periodic fee throughout the term of the swap agreement provided there is no credit event, which is expressed in basis points on the notional amount, in return for a payment by the seller of the credit default swap agreement (the “Protection Seller”) that results if a credit event such as defined in the swap agreement occurs, such as bankruptcy of the reference entity, obligation or index. Such credit default swap agreements are cash settled transactions. If a Portfolio enters into a credit default swap agreement as the Protection Buyer, the Portfolio is exposed to credit risk arising from the potential inability of the Protection Seller to perform under the agreement. If a Portfolio enters into a credit default swap agreement as the Protection Seller, the Portfolio is not exposed to credit risk but is subject to market risk as the credit default swap agreement is recorded at fair value which reflects the creditworthiness of the reference entity. As a Protection Seller, a Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, a Portfolio would be subject to risk of loss limited to the notional amount of the swap agreement.

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

Interest rate swap agreements involve the exchange by a Portfolio with another party of their respective commitments to pay or receive interest with respect to the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap,” (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor,” (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest

rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the counterparty may terminate the swap transaction in whole at zero cost by a predetermined date and time prior to the maturity date, (v) spread locks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different money markets.

Swap agreements generally are valued by an independent pricing service, and the change in value, if any, is recorded as 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, 2017, the Emerging Markets Multi-Asset, Emerging Markets Debt and Explorer Total Return Portfolios traded in swap agreements.

(g) 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, 2017, 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	$	(80,559,478	)	$	(813,014,773	)
Emerging Markets Core Equity		(6,480,547	)		(4,534,425	)
Developing Markets Equity		(31,362,106	)		(101,317,822	)
Emerging Markets Equity Advantage		(221,922	)		—
Emerging Markets Equity Blend		(3,706,958	)		(52,861,679	)
Emerging Markets Multi-Asset		(3,380,598	)		(11,003,216	)
Emerging Markets Debt		(22,356,433	)		(11,399,347	)
Explorer Total Return		(10,242,287	)		—

106  Annual Report

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, 2017, the Portfolios had no such losses to defer.

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	$	10,895,174,295	$	3,039,131,739	$	747,467,700	$	2,291,664,039
Emerging Markets Core Equity		186,003,621		58,435,416		1,284,121		57,151,295
Developing Markets Equity		219,179,751		68,490,249		5,933,828		62,556,421
Emerging Markets Equity Advantage		3,460,615		1,185,155		66,352		1,118,803
Emerging Markets Equity Blend		334,972,708		72,763,504		12,342,077		60,421,427
Emerging Markets Multi-Asset		222,923,322		29,763,884		6,008,074		23,755,810
Emerging Markets Debt		280,304,499		4,475,459		7,846,972		(3,371,513	)
Explorer Total Return		237,937,174		8,482,715		6,095,381		2,387,334
Emerging Markets Income		5,494,666		58,212		98,361		(40,149	)

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 tax returns filed for any open tax years (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction’s statute of limitations. The Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Inter-

nal Revenue Service for a period of three years from the date of filing.

(h) 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	$	—		$	(5,208,845	)	$	5,208,845
Emerging Markets Core Equity		—			(45,387	)		45,387
Developing Markets Equity		—			(9,920	)		9,920
Emerging Markets Equity Advantage		(2,610	)		5,250			(2,640	)
Emerging Markets Equity Blend		2			190,962			(190,964	)
Emerging Markets Multi-Asset		(9,622	)		515,851			(506,229	)
Emerging Markets Debt		(903,695	)		853,469			50,226
Emerging Total Return		(1,902,979	)		721,816			1,181,163
Emerging Markets Income		(2,430	)		679,777			(677,347	)

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

	Ordinary Income				Long-Term Capital Gain
Portfolio		2017		2016		2017		2016
Emerging Markets Equity	$	260,621,386	$	157,565,911	$	—	$	—
Emerging Markets Core Equity		1,593,200		960,210		—		—
Developing Markets Equity		545,028		1,834,642		—		—
Emerging Markets Equity Advantage*		48,376		45,610		—		—
Emerging Markets Equity Blend		3,636,686		1,426,109		—		—
Emerging Markets Multi-Asset		4,217,837		1,833,180		—		—
Emerging Markets Debt*		14,193,420		5,916,181		—		—
Explorer Total Return*		6,281,241		5,449,109		—		—
Emerging Markets Income		272,173		240,170		—		137,887

* Emerging Markets Advantage, Emerging Markets Debt and Explorer Total Return Portfolios had return of capital distributions of $2,194, $903,695 and $1,916,051 in 2017, and $2,354, $9,448,591 and $6,688,693 in 2016, respectively.

At December 31, 2017, 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	$	37,404,790	$	(893,574,251	)	$	2,290,363,252
Emerging Markets Core Equity		42,120		(11,014,972	)		56,884,529
Developing Markets Equity		1,841,435		(132,679,928	)		62,339,266
Emerging Markets Equity Advantage		—		(221,922	)		1,118,810
Emerging Markets Equity Blend		209,423		(56,568,637	)		60,145,461
Emerging Markets Multi-Asset		669,934		(14,383,814	)		23,616,038
Emerging Markets Debt		—		(33,755,780	)		(3,554,360	)
Explorer Total Return		—		(10,242,287	)		2,339,629
Emerging Markets Income		546,742		—			(54,505	)

(i) Offering and Organizational Costs—Costs incurred by the Fund in connection with the offering of shares of a new Portfolio or share class of a 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 or share class. Organizational costs are expensed as incurred.

(j) Allocation of Expenses—Expenses common to the Fund, Lazard Retirement Series, Inc., Lazard Global Total Return and Income Fund, Inc. and Lazard World Dividend & Income Fund, Inc. (each a “Lazard Fund” and collectively, the “Lazard Fund Complex”), each a registered management investment company advised by the Investment Manager, not directly chargeable to one or more specific Lazard Funds are allocated to the Fund and among its Portfolios primarily on the basis of relative net assets. Expenses of the Fund not directly chargeable to one or more Portfolios are similarly allocated among the Portfolios 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.

(k) 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 were 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.

(l) 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.

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(m) 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, and provides the Portfolios with administrative, operational and compliance assistance services. For its services provided to the Portfolios, the Investment Manager earns a management fee, accrued daily as a percentage of its average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:

Portfolio	Annual Rate
Emerging Markets Equity		1.00	%
Emerging Markets Core Equity		1.00
Developing Markets Equity		1.00
Emerging Markets Equity Advantage		0.85
Emerging Markets Equity Blend		1.00
Emerging Markets Multi-Asset		1.00
Emerging Markets Debt		0.75
Explorer Total Return (a)		0.90
Emerging Markets Income		0.65

(a) From January 1, 2017 to June 6, 2017, percentage was 0.95%.

The Investment Manager has voluntarily agreed, until May 1 of the year shown below (except as noted), to

waive its fees and, if necessary, reimburse the Portfolios if the aggregate direct expenses of the Portfolios, exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Funds” (as defined in Form N-1A) and extraordinary expenses, 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	%	2018
Emerging Markets Core Equity	1.30		1.60		N/A		2018
Developing Markets Equity	1.30		1.60		N/A		2018
Emerging Markets Equity Advantage	1.10		1.40		N/A		2018
Emerging Markets Equity Blend	1.30		1.60		N/A		2018
Emerging Markets Multi-Asset	1.30		1.60		N/A		2027	(a)
Emerging Markets Debt	0.95		1.20		0.90		2027	(b)
Explorer Total Return (c)	1.10		1.40		N/A		2018
Emerging Markets Income (d)	0.90		1.05		N/A		2018

(a)	Agreement is through May 1, 2027.
(b)	Agreement extends, for May 1, 2018 through May 1, 2027, at levels of 1.10%, 1.40% and 1.05%, respectively. From January 1, 2017 to June 6, 2017, percentage for the Open Shares was 1.25%.
(c)	From January 1, 2017 to June 6, 2017, percentages were 1.15% and 1.45%, respectively.
(d)	From January 1, 2017 to June 6, 2017, percentage for the Open Shares was 1.20%.

In addition to the expense limitation agreements, until May 1, 2018, to the extent the “Total Annual Portfolio Operating Expenses” (as defined in Form N-1A) of the R6 Shares of a Portfolio exceed the Total Annual Portfolio 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, 2017, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:

Annual Report  109

	Institutional Shares				Open Shares
Portfolio	Management Fees Waived		Expenses Reimbursed		Management Fees Waived		Expenses Reimbursed
Emerging Markets Core Equity		$        —		$         —		$11,057		$        —
Emerging Markets Equity Advantage		30,768		152,634		1,704		19,635
Emerging Markets Equity Blend		—		—		954		—
Emerging Markets Multi-Asset		—		—		8,265		3,888
Emerging Markets Debt		—		—		10,563		—
Explorer Total Return		—		—		11,535		163
Emerging Markets Income		73,300		60,204		815		13,413

	R6 Shares
Portfolio	Management Fees Waived		Expenses Reimbursed
Emerging Markets Equity		$919	$	—
Emerging Markets Debt		290		16,388

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

State Street provides the Fund with custody and certain fund administration and accounting services. For the year ended December 31, 2017, State Street waived its fund administration fee as follows:

Portfolio	Amount
Emerging Markets Equity Advantage	$	4,688
Emerging Markets Income		4,688

In December 2015, State Street announced that it had identified inconsistencies in the way in which clients were invoiced for custody out-of-pocket expenses from 1998 until 2015. The dollar amount difference between what was charged and what should have been charged, plus interest, was recorded as a reimbursement when determined in 2016. Pursuant to the expense limitations described above, certain Portfolios 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.

On January 1, 2018, BFDS changed its name to DST Asset Manager Solutions, Inc.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2017, each Director who is not an affiliated person of the Investment Manager or any of its affiliates was paid by the Lazard Fund Complex: (1) an annual retainer of $210,000, (2) an additional annual fee of $30,000 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 $20,000 to the Audit Committee Chair. Effective January 1, 2018, the aggregate compensation for Independent Directors for the Lazard Fund Complex is comprised of: (1) an annual retainer of $225,000, (2) an additional annual fee of $32,500 to the lead Independent Director, and (3) an additional annual fee of $22,500 to the Audit Committee Chair. The Independent Directors may be paid additional

110  Annual Report

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, 2017 were as follows:

Portfolio	Purchases		Sales
Emerging Markets Equity	$	1,742,676,214	$	2,069,195,619
Emerging Markets Core Equity		80,202,003		24,821,615
Developing Markets Equity		109,715,214		108,113,377
Emerging Markets Equity Advantage		2,233,495		1,974,195
Emerging Markets Equity Blend		192,844,439		195,629,969
Emerging Markets Multi-Asset		177,219,978		165,504,458
Emerging Markets Debt		257,630,029		221,811,573
Explorer Total Return		224,471,790		266,422,128
Emerging Markets Income		1,587,876		4,436,543

For the year ended December 31, 2017, 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, 2017, the Investment Manager owned 84.69% and 80.26% of the outstanding shares of the 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 the Emerging Markets Equity Portfolio for the year ended December 31, 2017 were as follows:

Non-Controlled Affiliates	Number of Shares Held at December 31, 2016		Gross Additions		Gross Reductions			Number of Shares Held at December 31, 2017		Fair Value at December 31, 2017		Investment Income		Realized Gain (Loss)
PPC, Ltd.		86,074,258		14,374,275		(16,633,368	)		83,815,165	$	47,196,829	$	—	$	(29,675,240	)
Weichai Power Co., Ltd., Class H		71,090,644		88,968,644		(17,961,000	)		142,098,288		155,656,904		4,549,165		(5,048,797	)
Total Affiliated Securities (Fair Value is 1.54% of Net Assets)										$	202,853,733	$	4,549,165	$	(34,724,037	)

6. Line of Credit

The Fund has a $50 million Line of Credit Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings is payable at the higher of the Federal Funds rate or 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, 2017, the following Portfolios had borrowings under the Agreement as follows:

Annual Report  111

Portfolio	Average Daily Loan Balance*		Maximum Daily Loan Outstanding		Weighted Average Interest Rate			Number of Days Borrowings were Outstanding
Emerging Markets Core Equity	$	1,330,000	$	1,400,000		1.78	%	2
Developing Markets Equity		1,325,000		6,100,000		1.80		8
Emerging Markets Equity Advantage		6,355		10,000		1.80		11
Emerging Markets Income		875,333		2,900,000		2.29		9

*  For days borrowings were outstanding.

Management believes that the fair value of the liabilities under the line of credit is equivalent to the recorded amount based on its short-term maturity and interest rate, which fluctuates with LIBOR. A Portfolio’s outstanding balance on the 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 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, nationaliza-

tion 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. A Portfolio’s currency investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies. 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. During periods of reduced market liquidity, a Portfolio may not be able to readily sell debt securities at prices at or near their perceived value. An unexpected increase in Portfolio redemption requests, including requests from shareholders who may own a significant percentage of a Portfolio’s shares, which

112  Annual Report

may be triggered by market turmoil or an increase in interest rates, could cause the Portfolio to sell its holdings at a loss or at undesirable prices and adversely affect the Portfolio’s share price and increase the Portfolio’s liquidity risk, Portfolio expenses and/or taxable distributions. Economic and other developments can adversely affect debt securities markets.

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).

Adjustable rate securities provide a Portfolio with a certain degree of protection against rises in interest rates, although such securities will participate in any declines in interest rates as well. Certain adjustable rate securities, such as those with interest rates that

fluctuate directly or indirectly based on multiples of a stated index, are designed to be highly sensitive to changes in interest rates and can subject the holders thereof to extreme reductions of yield and possibly loss of principal. Certain fixed-income securities may be issued at a discount from their face value (such as zero coupon securities) or purchased at a price less than their stated face amount or at a price less than their issue price plus the portion of “original issue discount” previously accrued thereon, i.e., purchased at a “market discount.“The amount of original issue discount and/or market discount on certain obligations may be significant, and accretion of market discount together with original issue discount will cause a Portfolio to realize income prior to the receipt of cash payments with respect to these securities.

(e) Derivatives and Hedging Risk—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. Over-the-counter swap agreements, forward currency contracts, writing or purchasing over-the-counter options on securities (including options on exchange-traded funds and exchange-traded notes), indexes and currencies and other over-the-counter derivatives transactions are subject to the risk of default by the counterparty and can be illiquid. Changes in liquidity may result in significant, rapid and unpredictable changes in the prices for derivatives. These derivatives transactions, as well as the exchange-traded futures and options in which certain Portfolios may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related index, commodity, interest rate, currency, security or other reference asset. As such, a small investment could have a potentially large impact on a Portfolio’s performance. Purchasing options will reduce returns by the amount of premiums paid for options that are not exercised. 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

Annual Report  113

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 when 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 indemnification provisions. 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. The fair value measurement level within the fair value hierarchy for the assets and liabilities of the Fund 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 assets and liabilities, interest rates, prepayment speeds, credit risk, etc.)

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

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’ assets and liabilities by each fair value hierarchy level as of December 31, 2017:

114  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, 2017
Emerging Markets Equity Portfolio
Common Stocks*
Argentina	$	212,833,763	$	—	$	—	$	212,833,763
Brazil		299,362,614		1,089,968,809		—		1,389,331,423
China		1,055,075,709		1,189,100,758		—		2,244,176,467
Egypt		—		101,082,275		—		101,082,275
Hungary		—		225,446,697		—		225,446,697
India		—		1,297,936,306		—		1,297,936,306
Indonesia		212,690,986		472,484,747		—		685,175,733
Malaysia		—		82,661,401		—		82,661,401
Mexico		423,485,598		—		—		423,485,598
Pakistan		—		215,890,759		—		215,890,759
Philippines		96,072,061		—		—		96,072,061
Russia		195,693,274		1,006,054,817		—		1,201,748,091
South Africa		—		1,381,137,951		—		1,381,137,951
South Korea		—		1,840,544,656		—		1,840,544,656
Taiwan		—		681,029,214		—		681,029,214
Thailand		—		167,760,008		—		167,760,008
Turkey		—		628,858,115		—		628,858,115
Short-Term Investments		311,664,480		—		—		311,664,480
Total	$	2,806,878,485	$	10,379,956,513	$	—	$	13,186,834,998
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, 2017
Emerging Markets Core Equity Portfolio
Common Stocks*
Argentina	$	3,945,656	$	—	$	—	$	3,945,656
Brazil		4,691,638		12,714,190		—		17,405,828
China		21,698,791		34,071,359		—		55,770,150
Colombia		4,948,412		—		—		4,948,412
Hong Kong		—		2,750,525		—		2,750,525
Hungary		—		2,896,217		—		2,896,217
India		8,568,197		13,358,354		—		21,926,551
Indonesia		2,064,013		3,139,918		—		5,203,931
Luxembourg		4,766,823		—		—		4,766,823
Mexico		7,182,125		—		—		7,182,125
Peru		2,167,643		—		—		2,167,643
Philippines		—		4,260,104		—		4,260,104
Portugal		—		2,375,090		—		2,375,090
Russia		1,013,189		14,413,087		—		15,426,276
South Africa		—		13,068,709		—		13,068,709
South Korea		—		29,487,776		—		29,487,776
Taiwan		15,464,347		8,366,600		—		23,830,947
Thailand		—		3,250,790		—		3,250,790
Turkey		—		4,547,906		—		4,547,906
United Arab Emirates		—		1,260,365		—		1,260,365
United Kingdom		2,613,248		—		—		2,613,248
Preferred Stocks*
Brazil		2,974,621		—		—		2,974,621
Short-Term Investments		11,088,660		—		—		11,088,660
Total	$	93,187,363	$	149,960,990	$	—	$	243,148,353

Annual Report  115

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, 2017
Developing Markets Equity Portfolio
Common Stocks*
Argentina	$	2,520,558	$	—	$	—	$	2,520,558
Brazil		7,154,179		—		—		7,154,179
Canada		3,540,983		—		—		3,540,983
China		28,618,659		68,138,895		—		96,757,554
Colombia		2,587,696		—		—		2,587,696
Hong Kong		—		11,449,613		—		11,449,613
India		14,101,932		15,607,576		—		29,709,508
Indonesia		—		7,916,921		—		7,916,921
Mexico		2,625,524		—		—		2,625,524
Peru		5,300,874		—		—		5,300,874
Philippines		—		4,073,969		—		4,073,969
Portugal		—		5,532,881		—		5,532,881
Russia		4,988,676		15,415,686		—		20,404,362
South Africa		—		9,344,433		—		9,344,433
South Korea		—		22,101,970		—		22,101,970
Taiwan		3,718,322		24,525,820		—		28,244,142
Turkey		—		8,954,132		—		8,954,132
United Kingdom		—		2,877,720		—		2,877,720
Preferred Stocks*
Brazil		2,699,049		—		—		2,699,049
Short-Term Investments		7,940,103		—		—		7,940,103
Total	$	85,796,555	$	195,939,616	$	—	$	281,736,171

116  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, 2017
Emerging Markets Equity Advantage Portfolio
Common Stocks*
Brazil	$	—	$	168,602	$	—	$	168,602
Chile		30,017		—		—		30,017
China		258,906		952,090		—		1,210,996
Colombia		43,101		—		—		43,101
Egypt		23,734		—		—		23,734
Greece		—		17,450		—		17,450
Hong Kong		—		42,337		—		42,337
Hungary		—		76,006		—		76,006
India		233,549		78,346		—		311,895
Indonesia		51,423		118,172		—		169,595
Luxembourg		28,715		—		—		28,715
Malaysia		—		163,681		—		163,681
Mexico		75,177		—		—		75,177
Philippines		—		99,229		—		99,229
Poland		—		116,466		—		116,466
Russia		—		112,844		—		112,844
Singapore		9,984		—		—		9,984
South Africa		8,419		217,739		—		226,158
South Korea		142,512		649,270		—		791,782
Taiwan		223,349		332,649		—		555,998
Thailand		—		140,639		—		140,639
Turkey		34,007		35,660		—		69,667
United States		16,368		—		—		16,368
Preferred Stocks*
Brazil		65,586		—		—		65,586
Short-Term Investments		13,391		—		—		13,391
Total	$	1,258,238	$	3,321,180	$	—	$	4,579,418

Annual Report  117

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, 2017
Emerging Markets Equity Blend Portfolio
Common Stocks*
Argentina	$	8,379,530	$	—	$	—	$	8,379,530
Brazil		17,354,384		13,973,941		—		31,328,325
Canada		4,425,826		—		—		4,425,826
Chile		387,976		—		—		387,976
China		49,811,152		61,430,405		—		111,241,557
Colombia		2,569,651		—		—		2,569,651
Egypt		—		1,954,696		—		1,954,696
Georgia		—		2,521,091		—		2,521,091
Hong Kong		—		15,400,269		—		15,400,269
Hungary		—		2,557,664		—		2,557,664
India		11,077,999		25,361,868		—		36,439,867
Indonesia		2,684,893		13,342,686		—		16,027,579
Kenya		—		415,985		—		415,985
Kuwait		—		242,459		—		242,459
Mexico		9,248,456		—		—		9,248,456
Morocco		—		260,576		—		260,576
Oman		—		360,285		—		360,285
Pakistan		—		621,678		—		621,678
Peru		3,773,567		—		—		3,773,567
Philippines		845,308		—		—		845,308
Russia		12,372,714		17,273,255		—		29,645,969
Singapore		—		2,523,538		—		2,523,538
South Africa		—		5,683,168		—		5,683,168
South Korea		—		38,223,661		—		38,223,661
Taiwan		5,067,266		28,113,298		—		33,180,564
Turkey		4,884,856		11,423,575		—		16,308,431
Ukraine		—		346,567		—		346,567
United Arab Emirates		—		1,520,918		—		1,520,918
Warrants*		48,093		—		—		48,093
Short-Term Investments		18,910,881		—		—		18,910,881
Total	$	151,842,552	$	243,551,583	$	—	$	395,394,135

118  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, 2017
Emerging Markets Multi-Asset Portfolio
Assets:
Common Stocks*
Argentina	$	3,513,576	$	—		$	—	$	3,513,576
Brazil		7,373,086		5,737,492			—		13,110,578
Canada		1,932,883		—			—		1,932,883
Chile		185,862		—			—		185,862
China		21,319,129		26,536,043			—		47,855,172
Colombia		1,121,585		—			—		1,121,585
Egypt		—		844,659			—		844,659
Georgia		—		1,010,512			—		1,010,512
Hong Kong		—		6,539,989			—		6,539,989
Hungary		—		1,094,560			—		1,094,560
India		4,849,237		10,669,910			—		15,519,147
Indonesia		1,133,628		5,795,825			—		6,929,453
Kenya		—		199,989			—		199,989
Kuwait		—		116,583			—		116,583
Mexico		3,732,592		—			—		3,732,592
Morocco		—		125,219			—		125,219
Oman		—		173,231			—		173,231
Pakistan		—		298,726			—		298,726
Peru		1,641,394		—			—		1,641,394
Philippines		356,147		—			—		356,147
Russia		4,926,958		7,858,352			—		12,785,310
Singapore		—		962,768			—		962,768
South Africa		—		2,292,004			—		2,292,004
South Korea		—		15,893,745			—		15,893,745
Taiwan		4,900,797		8,675,290			—		13,576,087
Turkey		2,060,290		4,876,766			—		6,937,056
Ukraine		—		166,724			—		166,724
United Arab Emirates		—		579,712			—		579,712
Corporate Bonds*
China		—		—			94,000		94,000
Other		—		7,914,322			—		7,914,322
Foreign Government Obligations*		—		38,916,277			—		38,916,277
Quasi Government Bonds*		—		1,543,860			—		1,543,860
Supranationals		—		224,864			—		224,864
US Treasury Securities		—		26,296,237			—		26,296,237
Warrants*		16,551		—			—		16,551
Short-Term Investments		12,046,933		—			—		12,046,933
Purchased Options		—		974,548			—		974,548
Other Financial Instruments†
Forward Currency Contracts		—		1,273,203			—		1,273,203
Interest Rate Swap Agreements		—		139,660			—		139,660
Total	$	71,110,648	$	177,731,070		$	94,000	$	248,935,718
Liabilities:
Other Financial Instruments†
Forward Currency Contracts	$	—	$	(1,200,651	)	$	—	$	(1,200,651	)
Interest Rate Swap Agreements		—		(61,010	)		—		(61,010	)
Written Options		—		(561,641	)		—		(561,641	)
Total	$	—	$	(1,823,302	)	$	—	$	(1,823,302	)

Annual Report  119

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, 2017
Emerging Markets Debt Portfolio
Assets:
Corporate Bonds*	$	—	$	9,375,459		$	—	$	9,375,459
Foreign Government Obligations*		—		257,279,854			—		257,279,854
Quasi Government Bonds*		—		12,777,640			—		12,777,640
Short-Term Investments		2,421,122		—			—		2,421,122
Other Financial Instruments†
Forward Currency Contracts		—		1,612,123			—		1,612,123
Total	$	2,421,122	$	281,045,076		$	—	$	283,466,198
Liabilities:
Other Financial Instruments†
Forward Currency Contracts	$	—	$	(1,648,922	)	$	—	$	(1,648,922	)
Interest Rate Swap Agreements		—		(59,623	)		—		(59,623	)
Total	$	—	$	(1,708,545	)	$	—	$	(1,708,545	)
Explorer Total Return Portfolio
Assets:
Corporate Bonds*
China	$	—	$	—		$	188,000	$	188,000
Other		—		33,543,214			—		33,543,214
Foreign Government Obligations*		—		124,445,933			—		124,445,933
Quasi Government Bonds*		—		5,551,775			—		5,551,775
US Treasury Securities		—		59,695,423			—		59,695,423
Short-Term Investments		16,504,953		—			—		16,504,953
Purchased Options		—		4,088,241			—		4,088,241
Other Financial Instruments†
Forward Currency Contracts		—		3,734,038			—		3,734,038
Interest Rate Swap Agreements		—		531,291			—		531,291
Total	$	16,504,953	$	231,589,915		$	188,000	$	248,282,868
Liabilities:
Other Financial Instruments†
Forward Currency Contracts	$	—	$	(4,113,389	)	$	—	$	(4,113,389	)
Interest Rate Swap Agreements		—		(234,289	)		—		(234,289	)
Written Options		—		(2,366,985	)		—		(2,366,985	)
Total	$	—	$	(6,714,663	)	$	—	$	(6,714,663	)
Emerging Markets Income Portfolio
Assets:
Foreign Government Obligations*	$	—	$	2,010,378		$	—	$	2,010,378
Supranationals		—		202,378			—		202,378
US Treasury Securities		—		2,799,249			—		2,799,249
Short-Term Investments		454,296		—			—		454,296
Other Financial Instruments†
Forward Currency Contracts		—		161,856			—		161,856
Total	$	454,296	$	5,173,861		$	—	$	5,628,157
Liabilities:
Other Financial Instruments†
Forward Currency Contracts	$	—	$	(40,994	)	$	—	$	(40,994	)

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

120  Annual Report

A reconciliation of assets in which Level 3 inputs are used in determining fair value is presented when there are significant Level 3 financial instruments at the end of the year.

Certain equity securities to which footnote (‡) 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 (‡) 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 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, 2017, securities valued at the following amounts were transferred from Level 2 to Level 3:

Portfolio	Amount
Emerging Markets Multi-Asset	$	162,000
Explorer Total Return		324,000

There were no other transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 2017.

For further information regarding security characteristics see Portfolios of Investments.

10. Derivative Instruments

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

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

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

A Portfolio may write or purchase 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, 2017, the approximate average monthly notional exposure for derivative instruments was as follows:

Credit default swap agreements	$	13,600,000	†
Forward currency contracts	$	126,200,000
Futures contracts	$	800,000	*
Interest rate swap agreements	$	10,600,000	†
Purchased options	$	200,000
Written options	$	6,900,000	#

†	Represents average monthly notional exposure for the eight months the derivative instrument was open during the period.
*	Represents average monthly notional exposure for the three months the derivative instrument was open during the period.
#	Represents average monthly notional exposure for the 11 months the derivative instrument was open during the period.

Annual Report  121

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2017:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	1,273,203
Investments in securities, at fair value	$	974,548
Interest Rate Risk:
Gross unrealized appreciation on swap agreements	$	139,660
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	1,200,651
Written options, at fair value	$	561,641
Interest Rate Risk:
Gross unrealized depreciation on swap agreements	$	61,010

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2017 was:

	Amount
Realized Gain (Loss) on Derivatives
Credit Risk:
Net realized gain (loss) on swap agreements	$	(482,296	)
Foreign Exchange Risk:
Net realized gain (loss) on forward currency contracts	$	145,530
Net realized gain (loss) on investments	$	(94,307	)
Net realized gain (loss) on written options	$	(52,619	)
Interest Rate Risk:
Net realized gain (loss) on futures contracts	$	78,953
Net realized gain (loss) on swap agreements	$	(61,823	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Credit Risk:
Net change in unrealized appreciation (depreciation) on swap agreements	$	(117,971	)
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on forward currency contracts	$	204,469
Net change in unrealized appreciation (depreciation) on investments	$	299,784
Net change in unrealized appreciation (depreciation) on written options	$	(335,276	)

Interest Rate Risk:
Net change in unrealized appreciation (depreciation) on swap agreements	$	78,650

Emerging Markets Debt Portfolio

During the year ended December 31, 2017, the approximate average monthly notional exposure for derivative instruments was as follows:

Forward currency contracts	$	170,500,000
Interest rate swap agreements	$	19,800,000	†
Purchased options	$	200,000	*
Written options	$	5,700,000	#

†	Represents average monthly notional exposure for the six months the derivative instrument was open during the period.
*	Represents average monthly notional exposure for the seven months the derivative instrument was open during the period
#	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, 2017:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	1,612,123
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	1,648,922
Interest Rate Risk:
Gross unrealized depreciation on swap agreements	$	59,623

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2017 was:

	Amount
Realized Gain (Loss) on Derivatives
Foreign Exchange Risk:
Net realized gain (loss) on forward currency contracts	$	1,049,007
Net realized gain (loss) on investments	$	640,697
Net realized gain (loss) on written options	$	(59,326	)
Interest Rate Risk:
Net realized gain (loss) on swap agreements	$	20,398

122  Annual Report

	Amount
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on forward currency contracts	$	73,664
Net change in unrealized appreciation (depreciation) on investments	$	(109,589	)
Net change in unrealized appreciation (depreciation) on written options	$	55,352
Interest Rate Risk:
Net change in unrealized appreciation (depreciation) on swap agreements	$	(59,623	)

Explorer Total Return Portfolio

During the year ended December 31, 2017, the approximate average monthly notional exposure for derivative instruments was as follows:

Credit default swap agreements	$	49,000,000	†
Forward currency contracts	$	361,300,000
Futures contracts	$	3,500,000	*
Interest rate swap agreements	$	42,200,000	†
Purchased options	$	900,000
Written options	$	28,400,000	#

†	Represents average monthly notional exposure for the eight 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.
#	Represents average monthly notional exposure for the 11 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, 2017:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	3,734,038
Investments in securities, at fair value	$	4,088,241
Interest Rate Risk:
Gross unrealized appreciation on swap agreements	$	531,291

	Fair Value
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	4,113,389
Written options, at fair value	$	2,366,985
Interest Rate Risk:
Gross unrealized depreciation on interest rate swap agreements	$	234,289

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2017 was:

	Amount
Realized Gain (Loss) on Derivatives
Credit Risk:
Net realized gain (loss) on swap agreements	$	(1,825,883	)
Foreign Exchange Risk:
Net realized gain (loss) on forward currency contracts	$	(1,997,090	)
Net realized gain (loss) on investments	$	(321,598	)
Net realized gain (loss) on written options	$	(179,940	)
Interest Rate Risk:
Net realized gain (loss) on futures contracts	$	305,435
Net realized gain (loss) on swap agreements	$	(140,398	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Credit Risk:
Net change in unrealized appreciation (depreciation) on swap agreements	$	(355,509	)
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on forward currency contracts	$	(194,655	)
Net change in unrealized appreciation (depreciation) on investments	$	1,266,412
Net change in unrealized appreciation (depreciation) on written options	$	(1,415,748	)
Interest Rate Risk:
Net change in unrealized appreciation (depreciation) on swap agreements	$	297,002

Annual Report  123

Emerging Markets Income Portfolio

During the year ended December 31, 2017, the approximate average monthly notional exposure for derivative instruments was as follows:

Forward currency contracts $14,000,000

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2017:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	161,856
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	40,994

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2017 was:

	Amount
Realized Gain (Loss) on Derivatives
Foreign Exchange Risk:
Net realized gain (loss) on forward currency contracts	$	598,476
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on forward currency contracts	$	175,434

See Notes 2(c), 2(d), 2(e) and 2(f) 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, 2017.

As of December 31, 2017, the Emerging Markets Multi-Asset, Emerging Markets Debt, Explorer Total Return and Emerging Markets Income Portfolios held 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.

124  Annual Report

The required information for the affected Portfolios are presented in the below table, as of December 31, 2017:

Emerging Markets Multi-Asset Portfolio

Description	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Assets and Liabilities		Net Amounts of Assets Presented in the Statement of Assets and Liabilities
Forward Currency Contracts		$1,273,203	$	—	$	1,273,203
Interest Rate Swap Agreements		139,660		—		139,660
Purchased options		974,548		—		974,548
Total		$2,387,411	$	—	$	2,387,411

			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
Bank of America NA		$     14,295	$	(14,295	)	$	—		$	—
Barclays Bank PLC		254,744		(192,584	)		—			62,160
Citibank NA		328,277		(295,880	)		—			32,397
HSBC Bank USA NA		109,358		(32,361	)		—			76,997
JPMorgan Chase Bank NA		1,418,670		(888,708	)		(510,000	)		19,962
Standard Chartered Bank		235,381		(235,381	)		—			—
UBS AG		26,686		(26,686	)		—			—
Total		$2,387,411	$	(1,685,895	)	$	(510,000	)	$	191,516

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		$1,200,651	$	—	$	1,200,651
Interest Rate Swap Agreements		61,010		—		61,010
Written Options		561,641		—		561,641
Total		$1,823,302	$	—	$	1,823,302

			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
Bank of America NA		$     63,397	$	(14,295	)	$	(49,102	)	$	—
Barclays Bank PLC		192,584		(192,584	)		—			—
Citibank NA		295,880		(295,880	)		—			—
HSBC Bank USA NA		32,361		(32,361	)		—			—
JPMorgan Chase Bank NA		888,708		(888,708	)		—			—
Standard Chartered Bank		261,032		(235,381	)		—			25,651
UBS AG		89,340		(26,686	)		—			62,654
Total		$1,823,302	$	(1,685,895	)	$	(49,102	)	$	88,305

(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  125

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		$1,612,123	$	—	$	1,612,123

			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
Bank of America NA		$   197,183	$	(153,904	)	$	—	$	43,279
Barclays Bank PLC		348,745		(348,745	)		—		—
Citibank NA		238,486		(238,486	)		—		—
HSBC Bank USA NA		51,349		(3,806	)		—		47,543
JPMorgan Chase Bank NA		294,983		(294,983	)		—		—
Standard Chartered Bank		361,901		(361,901	)		—		—
UBS AG		119,476		(119,476	)		—		—
Total		$1,612,123	$	(1,521,301	)	$	—	$	90,822

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		$1,648,922	$	—	$	1,648,922
Interest Rate Swap Agreements		59,623		—		59,623
Total		$1,708,545	$	—	$	1,708,545

			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
Bank of America NA		$153,904	$	(153,904	)	$	—		$	—
Barclays Bank PLC		398,682		(348,745	)		—			49,937
Citibank NA		240,931		(238,486	)		—			2,445
HSBC Bank USA NA		3,806		(3,806	)		—			—
JPMorgan Chase Bank NA		384,180		(294,983	)		—			89,197
Standard Chartered Bank		393,264		(361,901	)		—			31,363
UBS AG		133,778		(119,476	)		(14,302	)		—
Total		$1,708,545	$	(1,521,301	)	$	(14,302	)	$	172,942

(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.

126  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
Forward Currency Contracts		$3,734,038	$	—	$	3,734,038
Interest Rate Swap Agreements		531,291		—		531,291
Purchased options		4,088,241		—		4,088,241
Total		$8,353,570	$	—	$	8,353,570

			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
Bank of America NA		$     60,352	$	(60,352	)	$	—		$	—
Barclays Bank PLC		982,008		(777,506	)		—			204,502
Citibank NA		767,044		(754,763	)		—			12,281
HSBC Bank USA NA		144,522		(35,797	)		(108,725	)		—
JPMorgan Chase Bank NA		5,768,143		(3,569,288	)		(2,050,000	)		148,855
Standard Chartered Bank		528,420		(528,420	)		—			—
UBS AG		103,081		(103,081	)		—			—
Total		$8,353,570	$	(5,829,207	)	$	(2,158,725	)	$	365,638

Description	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Assets and Liabilities		Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities
Forward Currency Contracts		$4,113,389	$	—	$	4,113,389
Interest Rate Swap Agreements		234,289		—		234,289
Written options		2,366,985		—		2,366,985
Total		$6,714,663	$	—	$	6,714,663

			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
Bank of America NA		$  279,429	$	(60,352	)	$	(219,077	)	$	—
Barclays Bank PLC		777,506		(777,506	)		—			—
Citibank NA		754,763		(754,763	)		—			—
HSBC Bank USA NA		35,797		(35,797	)		—			—
JPMorgan Chase Bank NA		3,569,288		(3,569,288	)		—			—
Standard Chartered Bank		923,683		(528,420	)		(395,263	)		—
UBS AG		374,197		(103,081	)		(190,000	)		81,116
Total		$6,714,663	$	(5,829,207	)	$	(804,340	)	$	81,116

(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  127

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		$161,856	$	—	$	161,856

			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
Citibank NA		$  57,640	$	(26,473	)	$	—	$	31,167
HSBC Bank USA NA		44,585		(5,071	)		—		39,514
JPMorgan Chase Bank NA		9,175		(1,678	)		—		7,497
Standard Chartered Bank		50,456		(7,772	)		—		42,684
Total		$161,856	$	(40,994	)	$	—	$	120,862

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		$40,994	$	—	$	40,994

			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
Citibank NA		$26,473	$	(26,473	)	$	—	$	—
HSBC Bank USA NA		5,071		(5,071	)		—		—
JPMorgan Chase Bank NA		1,678		(1,678	)		—		—
Standard Chartered Bank		7,772		(7,772	)		—		—
Total		$40,994	$	(40,994	)	$	—	$	—

11. Subsequent Events

Management has evaluated subsequent events affecting the Fund through the issuance of the financial statements and has determined that, aside from items previously disclosed within the Notes to Financial Statements and the following, there were no subsequent events that required adjustment or disclosure.

Subsequent to December 31, 2017, the Emerging Markets Equity and Developing Markets Equity Portfolios received settlement proceeds in the amount of $2,137,300 and $3,279, respectively, from a foreign exchange trading class action lawsuit. The proceeds from the settlement represent a realized gain and were recorded in the period received.

128  Annual Report

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

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

Opinion on the Financial Statements and Financial Highlights

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, 2017, 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, the financial highlights for each of the four years in the periods then ended, and the related notes to the financial statements. The financial highlights for the year ended December 31, 2013 were audited by other auditors whose report, dated February 28, 2014, expressed an unqualified opinion on those financial highlights. In our opinion, the financial statements and financial highlights 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, as of December 31, 2017, and 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 four years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolios’ management. Our responsibility is to express an opinion on the Portfolios’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolios in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Portfolios are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the finan-

Annual Report  129

cial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2017, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

New York, New York

February 28, 2018

We have served as the auditor of one or more Lazard Fund Complex investment companies since 2004.

130  Annual Report

The Lazard Funds, Inc. Proxy Voting Results (unaudited)

A Joint Special Meeting of Shareholders of the Fund and Lazard Retirement Series, Inc. was held on October 20, 2017, to vote on the following proposals. The proposals received the required number of votes of shareholders and were adopted.

Proposal 1:

To elect each of Franci J. Blassberg, Trevor W. Morrison and Nathan A. Paul as a Fund Director.

Director	For		Withhold Authority
Franci J. Blassberg		1,322,185,144		18,431,907
Trevor W. Morrison		1,323,575,840		17,041,212
Nathan A. Paul		1,331,727,319		8,889,732

Proposal 2A:

To approve revising the Portfolio’s fundamental investment restrictions on issuing senior securities, borrowing and pledging or mortgaging its assets.

Portfolio	For		Against		Abstain
Emerging Markets Equity		302,134,987		32,180,358		2,806,693
Emerging Markets Core Equity		12,011,680		10,065		12,281
Developing Markets Equity		12,353,431		583,762		8,992
Emerging Markets Equity Blend		25,778,185		22,867		20,229
Emerging Markets Multi-Asset		4,216,585		2,354		16,522
Emerging Markets Debt		16,755,107		30,146		16,501
Explorer Total Return		20,441,961		34,707		50,736

Proposal 2B:

To approve revising the Portfolio’s fundamental investment restrictions on purchasing or selling commodities or commodities contracts.

Portfolio	For		Against		Abstain
Emerging Markets Equity		301,425,603		32,866,039		2,830,397
Emerging Markets Core Equity		11,293,787		727,958		12,281
Developing Markets Equity		11,647,349		1,288,851		9,985
Emerging Markets Equity Blend		25,778,452		24,438		18,392
Emerging Markets Multi-Asset		4,217,314		1,613		16,533
Emerging Markets Debt		16,751,446		34,434		15,875
Explorer Total Return		20,425,735		29,263		72,406

Proposal 2C:

To approve revising the Portfolio’s fundamental investment restriction on purchasing securities on margin.

Portfolio	For		Against		Abstain
Emerging Markets Equity		300,348,712		33,945,163		2,828,163
Emerging Markets Core Equity		11,293,787		727,958		12,281
Developing Markets Equity		11,648,731		1,289,042		8,412
Emerging Markets Equity Blend		25,774,873		28,379		18,030
Emerging Markets Multi-Asset		4,215,533		4,522		15,406
Emerging Markets Debt		16,743,439		40,333		17,982
Explorer Total Return		20,332,235		125,523		69,646

Annual Report  131

Proposal 2D:

To approve removing the Portfolio’s fundamental investment restriction on short sales of securities.

Portfolio	For		Against		Abstain
Emerging Markets Equity		300,154,918		34,113,105		2,854,015

Proposal 2E:

To approve removing the Portfolio’s fundamental investment restriction on investing in illiquid securities.

Portfolio	For		Against		Abstain
Emerging Markets Equity		300,123,592		34,121,892		2,876,555

132  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 (64)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present)
		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 (72)	Director (August 1995)	Davidson Capital Management Corporation, an investment manager, President (1978 – present)
		Landseer Advisors LLC, an investment manager, Senior Advisor (2012 – 2014)
Nancy A. Eckl (55)	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)
Trevor W. Morrison (46)	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. (73)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		Resource Americas, Inc., a real estate asset management company, Director (2016 – present)
Robert M. Solmson (70)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

Annual Report 133

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):
Ashish Bhutani (57)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present)
		Lazard Ltd, Vice Chairman and Director (2010 – present)
Nathan A. Paul (45)	Director (October 2017) Chief Executive Officer and President (February 2017)	Investment Manager, Chief Business Officer (April 2017 – present) and Managing Director (2003 – present)
		Investment Manager, General Counsel (2002 – April 2017)

(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, 2018, 41 active investment portfolios). Each Director serves an indefinite term, until his or her successor is elected, and each Director serves in the same capacity for the other funds in the Lazard Fund Complex.
(3)	“Independent Directors” are not “interested persons” (as defined in the 1940 Act) of the Fund.
(4)	Messrs. Bhutani and Paul 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.lazardassetmanagement.com.

134  Annual Report

Name (Age) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) Held During the Past Five Years
Officers(3):
Mark R. Anderson (47)	Chief Compliance Officer (September 2014), Vice President and Secretary (February 2017)	Managing Director (since February 2017, previously Director), General Counsel (since April 2017) and Chief Compliance Officer (since September 2014) of the Investment Manager
		Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014)
Christopher Snively (33)	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 (59)	Treasurer (May 2003)	Vice President of the Investment Manager
Tamar Goldstein (42)	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 (36)	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 (43)	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 Nathan A. Paul, Chief Executive Officer and President (since February 2017; previously, Vice President and Secretary since April 2002), whose information is included in the Interested Directors section above.

Annual Report 135

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

Tax Information

Year Ended December 31, 2017

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2017:

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	50.55
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 U.S. Securities and Exchange Commission (the “SEC”) website at https://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 https://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 https://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.

136 Annual Report

The Lazard Funds, Inc.

30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
https://www.lazardassetmanagement.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

DST Asset Manager Solutions, 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

Proskauer Rose LLP
Eleven Times Square
New York, New York 10036-8299
http://www.proskauer.com

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

Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardassetmanagement.com
LZDPS024

Lazard Funds Annual Report

December 31, 2017

Equity Funds

Lazard US Equity Concentrated Portfolio	Lazard International Equity Advantage Portfolio
Lazard US Strategic Equity Portfolio	Lazard International Small Cap Equity Portfolio
Lazard US Small-Mid Cap Equity Portfolio	Lazard Equity Franchise 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
Lazard International Strategic Equity 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
	• Assets and income
	• Account transactions
	• Credit history
	• Transaction history
	When you are no longer our customer, we continue to share your information as described in this notice.
How?	All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information, the reasons Lazard chooses to share, and whether you can limit this sharing.

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

Questions? Call 800-823-6300 or go to https://www.lazardassetmanagement.com

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

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
12	Performance Overviews
25	Information About Your Portfolio’s Expenses
29	Portfolio Holdings Presented by Sector
30	Portfolios of Investments
30	Lazard US Equity Concentrated Portfolio
31	Lazard US Strategic Equity Portfolio
33	Lazard US 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 Equity Franchise Portfolio
48	Lazard Global Equity Select Portfolio
50	Lazard Global Strategic Equity Portfolio
52	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
74	Financial Highlights
91	Notes to Financial Statements
107	Report of Independent Registered Public Accounting Firm
109	Proxy Voting Results
111	Board of Directors and Officers Information
114	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.lazardassetmanagement.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,

Record high global stock prices were supported by synchronized global economic growth in 2017. Markets also benefited from benign inflation, accommodative central bank policy, and strong corporate profits. Volatility remained at historic lows despite tension between North Korea and the United States and political uncertainty in Brazil, Spain, and the United Kingdom.

Emerging markets equity and debt advanced strongly in 2017. Emerging markets continued to benefit from low inflation, modest but steady growth, and improving profitability as global demand recovers and businesses tighten fiscal discipline. Earnings improvement in China and Korea drove returns in emerging markets. While our outlook for the asset class remains positive, our emerging markets investment teams are vigilant about potential risks. This includes an increase in developed markets inflation that could lead to central banks raising rates too quickly and, in effect, a global growth slowdown.

European equity markets performed well in 2017 as the region’s economic recovery deepened and investors grew more confident in its underlying strength. During the year, a market-friendly result to France’s presidential election helped buoy European sentiment. UK equities generated solid absolute returns amid a challenging political backdrop and Brexit negotiations. In addition, the European Central Bank announced that it would extend its monthly bond-buying program into 2018, but plans to reduce the pace of these purchases.

The US economy also advanced strongly during 2017. A new US tax bill represented one of the most significant changes to the US tax code in over 30 years as it changes individual, corporate, and international taxes. The US yield curve continued to flatten as short-term rates moved higher, driven by the three US rate hikes during 2017 and the prospect of additional hikes in 2018.

We are privileged that you have turned to Lazard for your investment needs and value your continued confidence in our investment management capabilities. Be assured that our specialist investment teams, supported by our global infrastructure, are continuing to strive for the long-term patterns of performance that you expect.

Sincerely,

Lazard Asset Management LLC

2  Annual Report

The Lazard Funds, Inc. Investment Overviews

US Equities

The S&P 500^® Index rose 21.8% in 2017. Markets continued to rally into 2018 as investors gained more confidence in the US economy’s ability to withstand global geopolitical risks, coupled with optimism that the Trump administration would decrease regulation and work with Congress to lower corporate taxes and increase defense and infrastructure spending. Economic data were generally strong during the year, as employment reports broadly exceeded expectations and the economy posted GDP growth of 3.0% or greater in the final two quarters of the year, auto sales recovered in the latter half of the year, and consumer confidence reached a 17-year high in November. Investors were also enthusiastic about the passage of a tax reform bill in December, which is expected to stoke economic growth by lowering tax rates for many businesses and individual taxpayers.

International Equities

The strength of the global economy over the past year exceeded expectations, with positive growth occurring in all major regions, albeit off low levels. Outside the United States, earnings growth of over 20% drove stock returns higher in 2017 as measured by the MSCI EAFE^® Index. Sector leadership was dominated by cyclicals, and more specifically by information technology. More defensive, and some higher-quality sectors such as consumer staples, healthcare, and telecommunications, lagged in this market.

As with sectors, regions with higher exposure to the global economy outperformed, driven by rising global growth prospects, a weaker US dollar, and the improvement of industrial commodities prices. These factors especially benefited emerging markets, which generated extraordinary returns of 37.3% in 2017. Emerging markets technology companies were especially favored by investors seeking companies with higher revenue and earnings growth—as well as higher valuations. Among developed markets, Japan generated significant returns in the fourth quarter, nearly matching the EAFE benchmark for the year after lagging in the first three quarters. Continental European equities outperformed the MSCI EAFE Index in US dollar terms in 2017, boosted by stronger

currencies. UK equities generated solid absolute returns of 22% in the year but modestly lagged the broader EAFE market amidst a challenging political backdrop and Brexit negotiations, which pushed valuation multiples lower.

Market sentiment has continued to rise above already high levels, and markets are near or past their historic highs—despite continued valuation, geopolitical, and credit risks. Our general impression is that the markets appear complacent and are extrapolating the current improved economic climate into the future. This further exacerbates the disconnect between high-growth expectations and interest rates, which are at historic lows.

Lazard US Equity Concentrated Portfolio

For the year ended December 31, 2017, the Lazard US Equity Concentrated Portfolio’s Institutional Shares posted a total return of 15.49%, while Open Shares posted a total return of 15.22%, and R6 Shares posted a total return of 15.52%, as compared with the 21.83% return for the S&P 500 Index.

Stock selection and an overweight position in the consumer staples sector detracted from performance. Shares of beer company Molson Coors fell following poor communication at the company’s investor day, combined with a number of transitory factors. Stock selection in the consumer discretionary sector also hurt returns. Shares of Advance Auto Parts fell following Amazon’s announcement that it would enter the auto-parts market, as well as integration headwinds from the company’s acquisition of Carquest. We sold the stock in July, as our thesis had changed.

In contrast, an underweight position in the energy sector contributed to performance. Shares of Schlumberger rose amid a recovery in oil prices toward the end of the period. In the information technology sector, shares of Cisco rose after the company reported strong third quarter earnings, which included growth in all metrics, as well as encouraging management guidance.

Annual Report  3

Lazard US Strategic Equity Portfolio

For the year ended December 31, 2017, the Lazard US Strategic Equity Portfolio’s Institutional Shares posted a total return of 18.17%, while Open Shares posted a total return of 17.75%, and R6 Shares posted a total return of 18.16%, as compared with the 21.83% return for the S&P 500 Index.

Stock selection in the consumer staples sector detracted from performance. Shares of beer company Molson Coors fell following poor communication at the company’s investor day, combined with a number of transitory factors. Stock selection in the health care sector also hurt returns. Shares of Medtronic fell in response to unexpected, temporary supply constraints in its diabetes business and potential changes to reimbursements in the Chinese medical device market.

In contrast, stock selection in the financials sector aided performance. Shares of diversified financial services provider Citigroup rose amid optimism around industry deregulation, tax reform, and the prospect of stronger capital returns following the Fed’s annual stress tests. A lack of exposure to utilities also helped returns, as the sector was among the worst performers in the benchmark during the period.

Lazard US Small-Mid Cap Equity Portfolio

For the year ended December 31, 2017, the Lazard US Small-Mid Cap Equity Portfolio’s Institutional Shares posted a total return of 14.12%, while Open Shares posted a total return of 13.82%, as compared with the 16.81% return for the Russell 2500^® Index.

Stock selection and underweight exposure in the consumer discretionary sector detracted from performance. Shares of Advance Auto Parts fell following Amazon’s announcement that it would enter the auto-parts market, as well as integration headwinds from the company’s acquisition of Carquest. We sold the stock in July, as our thesis had changed. Stock selection in the financials sector also hurt returns. Shares of Home BancShares fell after regulatory factors and negative impacts from Hurricane Irma worried investors.

In contrast, stock selection and an overweight position in the industrials sector helped performance. Shares of Proto Labs rose after the company reported quarterly earnings above expectations, driven by strong revenues. We sold our position in December, as the stock approached our target valuation. Stock selection and an underweight position in the consumer staples sector also helped returns.

Lazard International Equity Portfolio

For the year ended December 31, 2017, the Lazard International Equity Portfolio’s Institutional Shares posted a total return of 22.81%, while Open Shares posted a total return of 22.50%, and R6 Shares posted a total return of 22.85%, as compared with the 25.03% return for the MSCI EAFE Index.

The majority of the underperformance occurred in January, which was a continuation of the second half of the 2016 low-quality rally. During that period, investors bid up lower-quality equities as the global economy strengthened, central banks remained mostly accommodative, and the Trump administration’s campaign promises on taxes, regulations reform, and infrastructure drove up investor expectations for improving global growth. While the difference in performance during this period between low-quality and high-quality stocks (as defined by return-on-equity) was not unusual, the quickness was significant in historical terms. Since the dominance of low-quality equities ended in the middle of the first quarter of 2017, investors have increasingly focused on fundamentals, making stock selection once again the driver of attribution. International equity prices were rewarded for improved global economic growth, more margin leverage, and cheaper currencies. Strong stock selection has been a differentiator, as the tailwinds that supported markets—especially stimulative central bank policy, increasing global economic growth off low levels, few signs of inflation, and hopes of a US-led fiscal package—are now well reflected in elevated valuations of lower-quality cyclicals. This environment was favorable for skilled stock selection, as the non-idiosyncratic factors that dominated the market from the second half of 2016 through the beginning of 2017 faded further.

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Stock selection in the healthcare sector detracted from performance during the year, as our holding in Shire Pharmaceuticals underperformed. Despite consistently strong fundamentals and an attractive valuation, Shire has struggled due to investor concerns over debt levels, its hemophilia franchise and, most recently, the departure of its CFO. After the announcement of this departure, we met with Shire management and concluded that our investment thesis remained intact. Elsewhere, industrials sector company Assa Abloy underperformed. Despite rising slightly for the year, the stock underperformed during the fourth quarter, the result of transitory issues in China, rising materials costs, and the CEO’s retirement announcement. Lastly, cash also continued to be a significant drag on relative performance for the year. As equity markets continued to rise during the year, and valuations remain elevated in historical terms, we have trimmed or sold some investments that have reached our target valuations faster than we have been able to replace them. Our cash exposure—which historically averages less than 5% of assets—is a byproduct of our process and is not a managed allocation. Our intention, as always, is to remain fully invested.

In contrast, stock selection in the consumer discretionary sector was additive to relative returns. Shares of Japanese retailer Don Quijote rose after reporting strong results driven by better sales and cost control, leading to operating profit margin expansion, while also increasing guidance. In the industrials sector, Dutch software company Wolters Kluwer was a strong performer throughout the year. Stock selection in the real estate sector was also beneficial to relative returns. Daiwa House was a strong performer as it rose during the year. Our long-term ownership of the company has been predicated on the belief that the valuation has been too low given the company’s financial productivity and improving orders and margins driven by the improving global economic outlook and tight labor market in Japan. Positive stock selection in the telecommunications sector was driven by Nordic telecommunications provider Telenor, which owns additional assets in emerging markets countries Malaysia and Thailand. Telenor stock rallied in the sec-

ond half of the year, mostly because management reported earnings in July that beat expectations. The positive surprise was a result of operating expense reductions that were significantly ahead of guidance and which led to margin improvements in the majority of their business units. In addition, Telenor management’s capital allocation decisions were rewarded as the proceeds from recent asset sales were redistributed to shareholders through a share buyback.

Lazard International Equity Select Portfolio

For the year ended December 31, 2017, the Lazard International Equity Select Portfolio’s Institutional Shares posted a total return of 28.31%, while Open Shares posted a total return of 27.89%, as compared with the 27.19% return for the MSCI All Country World^® Index (the “MSCI ACWI”) ex-US.

Outperformance for the year was driven by positive stock selection in most sectors and regions. Stock selection in the information technology sector was beneficial to relative returns as the Portfolio identified and owned relative value investments such as Tencent and Worldpay, with the latter sold during the period. Elsewhere, Nordic telecommunications provider Telenor, which owns additional assets in emerging markets countries Malaysia and Thailand, also helped relative returns during the year. Telenor stock rallied in the second half of the year, mostly because management reported earnings in July that beat expectations. The positive surprise was a result of operating expense reductions that were significantly ahead of guidance and which led to margin improvements in the majority of their business units. In addition, Telenor management’s capital allocation decisions were rewarded as the proceeds from recent asset sales were redistributed to shareholders through a share buyback. Lastly, stock selection in the financials sector helped relative returns largely due to our holding in DBS, Singapore’s largest bank. The company highlighted their focus on digitization at an analyst day in November. With nearly 40% of customers now utilizing digital offerings and demonstrating increased retention, we expect these investments to result in higher financial productivity going forward.

Annual Report  5

In contrast, stock selection in the healthcare sector detracted from performance in the year, as our holding in Shire Pharmaceuticals underperformed. While having fallen nearly 10% in 2017 and being one of the largest relative detractors, Shire stock has begun to improve, rising in line with the benchmark during the fourth quarter. Despite consistently strong fundamentals and an attractive valuation, Shire has struggled due to investor concerns over debt levels, its hemophilia franchise and, most recently, the departure of its CFO. After the announcement of this departure, we met with Shire management and concluded that our investment thesis remained intact. Elsewhere, our industrials sector holding in Assa Abloy underperformed. Despite rising during the year, the stock underperformed during the fourth quarter, the result of transitory issues in China, rising materials costs, and the CEO’s retirement announcement. Lastly, cash also continued to be a significant drag on relative performance in the fourth quarter and for the year. As equity markets continued to rise during 2017 and valuations remain elevated in historical terms, we have trimmed or sold some investments that have reached our target valuations faster than we have been able to replace them. Our cash exposure, which historically averages less than 5% of assets, is a byproduct of our process and is not a managed allocation. Our intention, as always, is to remain fully invested.

Lazard International Equity Concentrated Portfolio

For the year ended December 31, 2017, the Lazard International Equity Concentrated Portfolio’s Institutional Shares posted a total return of 23.29%, while Open Shares posted a total return of 22.87%, as compared with the 27.19% return for the MSCI ACWI ex-US.

Stock selection in the healthcare sector hurt relative performance during the year as Shire Pharmaceuticals underperformed. Despite consistent fundamentals and an attractive valuation, Shire has struggled due to investor concerns over debt levels, its hemophilia franchise and, most recently, the departure of its CFO. After the announcement of this departure, we met with Shire management and concluded that our investment thesis remained intact. In the financials sector, we were in the process of selling Provident Financial when the com-

pany surprised the market with a profits warning. Provident Financial management was viewed as a capable team, held in high regard by the market, with a history of innovation and solid execution. However, an elective restructuring of the business resulted in a material staff defection to rivals, and a material drop in the efficacy of loan recovery. Separately, it emerged that the company was being investigated by regulators for mis-selling their products. The surprising news led to the resignation of the CEO and the cutting of the company’s dividend. While the position size was small relative to the size of the position historically, the magnitude of the price correction was a material detractor to performance.

In contrast, stock selection and a higher-than-benchmark weight in the information technology sector was additive to relative returns in 2017. Shares of Chinese internet company Tencent appreciated by more than 100% during the year as the company reported strong results. The market became more aware of the recurring nature of the gaming franchise but also the value of stakes in other companies owned by Tencent (including 58.com). In addition, it became clearer not only how much time the average Chinese person was spending on Tencent apps and sites, but also the company’s potential to monetize this to a greater degree. Our new position in Digital Garage, the digital advertising and e-payment business in Japan, also appreciated materially as the company communicated a stronger message on organic growth and reported supportive results. Despite a considerable headwind from the Turkish lira, our investment in Turkcell performed strongly in US dollar terms as the company positively surprised the market on revenues (driven by both net subscriber growth and average revenue per unit growth) and also revised up guidance on the operating margin.

Lazard International Strategic Equity Portfolio

For the year ended December 31, 2017, the Lazard International Strategic Equity Portfolio’s Institutional Shares posted a total return of 27.85%, while Open Shares posted a total return of 27.44%, and R6 Shares posted a total return of 27.82%, as compared with the 25.03% return for the MSCI EAFE Index.

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Stock selection primarily accounted for the excess return during the year. Information technology was the leading sector contributor to performance as a restructuring Tokyo Electron positioned itself to benefit from a broadening and steep acceleration in the semiconductor equipment cycle, which also helped Taiwan Semiconductor. Chinese internet company Tencent reported very strong results during the year and saw a favorable material revaluation by the market. In the consumer discretionary sector, Vivendi benefited from the transformation of the global music industry, driven by streaming services such as Spotify, while expectations for auto supplier Faurecia’s future profit margins increased substantially during the year. In France, Television Francaise 1 gained from its cost-reduction efforts. There were encouraging results from Fanuc and Wolters Kluwer in the industrials sector, and from Daiwa House in the real estate sector. In the consumer staples sector, returns continued to improve at Carlsberg and Diageo and execution remains strong at ingredients company Kerry. In the financials sector, an investment in the equity raise at Italian bank UniCredit appeared to be well-timed, as the company delivered impressively on its restructuring plans through 2017. Singapore bank DBS also gained from buoyant conditions and a cleanup of its non-performing loan exposure.

The key negatives were the relative lack of exposure to commodity producers in the energy sector and stock selection in the healthcare sector. In the energy sector, marketing company Z Energy underperformed the index after giving a confusing message on the company’s future dividend prospects. In the materials sector, the Australian fibre cement company James Hardie suffered from operational issues. We sold our position during the period. In the healthcare sector, Shire Pharmaceuticals, despite an attractive valuation, was hurt by a steady drip of negative news around legal challenges and competing products. South African private hospital operator Netcare saw difficult conditions in both its home market and in the United Kingdom, where it continued to struggle with restructuring its operations. We sold the position. In addition, disappointing results came from global bicycle parts supplier Shimano. Global sportswear

company Asics, and global entertainment operator Merlin also issued disappointing results and both were sold during the period. Finally, the Portfolio’s cash holding dragged on relative performance.

Lazard International Equity Advantage Portfolio

For the year ended December 31, 2017, the Lazard International Equity Advantage Portfolio’s Institutional Shares posted a total return of 24.98%, while Open Shares posted a total return of 24.60%, as compared with the 25.03% return for the MSCI EAFE Index.

The underweight to consumer staples and the materials sectors were the largest sources of sector allocation underperformance over the year. The overweight in information technology and energy sectors were the largest sources of sector outperformance. Favorable stock selection overcame a deficit from sector allocation and cash drag, but underperformed overall. Stock selection was favorable in seven of eleven sectors led by healthcare, consumer discretionary and financials sectors. The Portfolio lagged in the utilities, industrials, and telecommunication services sectors.

Stocks that contributed to the Portfolio’s 2017 return included German airline Deutsche Lufthansa which, benefiting from the economic recovery, saw an increase in passenger traffic. The bankruptcy of Air Berlin, Germany’s second largest carrier also sent additional traffic to Deutsche Lufthansa. Subsequently, they purchased Air Berlin giving them a dominant position in the market. Alongside the company’s low-cost subsidiary Eurowings, Lufthansa Cargo played a major role in the strong financial results. Aristocrat Leisure reported a strong first half as earnings rose 49%. New products and increased penetration into the North American market with its gaming machines has helped to boost the stock. CSL, the Australian biotech, sold off at the end of 2016 on concerns over drug pricing pressures in the United States and new competition in the hemophilia field. The concerns turned out to be unfounded, as the company enjoyed a strong year in 2017 with new drug approvals and earnings growth exceeded guidance. They also completed a large share buyback.

Annual Report  7

Detractors for the year included Centrica. The UK utility continues to struggle with a disappointing second half of the year after it announced that it was losing 823,000 domestic energy customers in just four months and that it would have to operate with a historically low dividend cover “for a period of time” in order to maintain its pay outs. We sold half of our position in November. BT Group surprised the market with a write-down due to improper accounting in their Italian subsidiary, setting in motion a number of management changes. The company carries a sizable pension liability that caused a stock selloff in 2016 as interest rates declined. It is expected that the recent increase in interest rates may benefit the company and the stock showed some strength going into the end of the year. We used the opportunity to sell our entire position.

Lazard International Small Cap Equity Portfolio

For the year ended December 31, 2017, the Lazard International Small Cap Equity Portfolio’s Institutional Shares posted a total return of 36.57%, while Open Shares posted a total return of 36.20%, as compared with the 33.01% return for the MSCI EAFE Small Cap^® Index.

The largest contributions to performance came from stock selection in the industrials, real estate, and consumer discretionary sectors while stock selection in materials and energy sectors detracted from performance. Regionally, stock selection in Japan, continental Europe, and the United Kingdom contributed to performance while stock selection in Canada detracted. Nissei ASB Machine Company contributed positively to relative performance in the year with a steady rise in share price from positive interim and full-year results, solid order growth, and promising guidance for the new fiscal year. The company also picked up additional broker coverage during the year, which appeared to increase market awareness. XP Power (XPP) is a Singapore-based but UK-listed company that designs, manufactures, and distributes power converter solutions to original equipment manufacturers. XPP also saw relatively steady stock-price appreciation as results provided evidence that management

is executing its growth strategy with new customer acquisition and mergers and acquisitions activity.

Conversely, RPC Group, a UK-listed specialty packaging company, detracted from performance during the year. Early in 2017, shares weakened after concerns surfaced regarding acquisitions and free cash generation versus expectations. The stock price rebounded over the summer but was weak again in the fourth quarter after some investors viewed the company’s organic revenue growth as reported in late November as wanting. We were encouraged, however, by lower exceptionals (non-recurring items such as certain expenses, charges, losses) and strong cash flow, and we continue to hold the shares. Green Seal Holding, a Taiwan-listed provider of specialty films for the food packaging industry, detracted from performance after reporting weak June sales and subsequent management changes. The sales decline stemmed from a drop in overall utilization rates and with concerns about a further slowdown related to tightened environmental requirements. We subsequently exited the position.

New Portfolio Launched: Lazard Equity Franchise Portfolio

For the period since inception (September 29, 2017) through December 31, 2017, the Lazard Equity Franchise Portfolio’s Institutional Shares posted a total return of 4.25%, while Open Shares posted a total return of 4.18%, as compared with the 5.51% return for the MSCI World^® Index.

Mobile technology licensor and chip manufacturer Qualcomm was the best performing stock in the Portfolio during the period, following a bid for the company from Singapore-based, California co-headquartered semiconductor company Broadcom. The Qualcomm board rejected the offer as inadequate, and Broadcom is currently considering its options, including a hostile bid and increasing its stock offer. Qualcomm also reported fourth quarter 2017 results during November, with better-than-expected results in semiconductor manufacturing partially offsetting the impact of its ongoing licensing lawsuits. Qualcomm’s discussion with Apple over

8  Annual Report

license fees resulted in both companies filing suit alleging patent breach and a media report that Apple is considering replacing Qualcomm’s modem chips in the iPhone with new chips from Intel.

Pharmacy benefit manager Express Scripts performed well during the period in the aftermath of the healthcare company CVS’s acquisition of managed healthcare organization Aetna. Express Scripts slightly increased its 2017 guidance and released initial 2018 guidance that positively surprised the market with higher savings following the integration of acquisition EviCore. Additionally, it is anticipated that, as a US company, recently passed tax reforms could potentially add significantly to the company’s net income. Also contributing to performance was International Game Technology (IGT), the world’s leading holder of lottery concessions and manufacturer of gaming machines. IGT announced the renewal of the Italian “Scratch & Win” concession through September 2028. This lottery generates retail sales of roughly 9 billion euro per year (approximately 400 million euro in annual revenue to IGT) and the current contract expires in 2019. We are pleased with this renewal for a number of reasons including securing similar terms to the existing contract (with no income statement headwinds), avoiding a messy tender process (which could have impacted profitability) and marking the end of lottery concession contract renewals for IGT until 2020.

The largest detractor for the quarter was the decline in share price for leading satellite operator SES. SES’s third quarter results were softer than expected due to problems within their fixed data division which represents around 10% of revenues and, we estimate, less than 8% of overall profit. Another detractor from performance was medical waste solutions provider Stericycle, which disappointed the market with its third quarter 2017 result, which was impacted by the three major hurricanes that hit the United States and Puerto Rico, together with slower organic growth. Stericycle also lowered earnings guidance for the remainder of 2017 and into 2018. More positively, there was no further deterioration in

small quantity medical waste customers and the company announced a business transformation process that could see significant improvement in margins.

Lazard Global Equity Select Portfolio

For the year ended December 31, 2017, the Lazard Global Equity Select Portfolio’s Institutional Shares posted a total return of 28.52%, while Open Shares posted a total return of 28.01%, as compared with the 23.97% return for the MSCI ACWI.

Stock selection in the financials sector contributed to performance in 2017. Shares of AIA Group, an Asian insurer and financial services company, rose on strong new business metrics and increasing potential for growth. We continue to like AIA Group as shares remain attractively valued and AIA has a dominant market position as the company’s focus on health insurance is a distinguishing feature relative to its Chinese peers. An overweight position in the information technology sector also helped performance. Shares of Tencent, a Chinese internet company, climbed on continued strong fundamental results. We like Tencent on its dominant platform, growth in advertising and as it is positioning to benefit from the market shift towards mobile.

In contrast, stock selection and an underweight in the materials sector detracted from performance. Shares of Crown Holdings, a global beverage and food can manufacturer, underperformed amid a general slowdown in demand for beverage cans and as the market questioned the company’s strategy regarding a large acquisition. We like Crown as we believe their low-capital-intensity business model and steady earnings generation is overlooked by the market. A position in oil services company Schlumberger hurt performance. Shares fell as fundamental results disappointed and the company lowered its capital expenditure forecasts. We like Schlumberger as the company is an industry leader and we believe its financial productivity, strategic sense and technology investment enables it to maintain its distance to other competitors.

Annual Report  9

Lazard Global Strategic Equity Portfolio

For the year ended December 31, 2017, the Lazard Global Strategic Equity Portfolio’s Institutional Shares posted a total return of 24.20%, while Open Shares posted a total return of 23.72%, as compared with the 23.97% return for the MSCI ACWI.

Stock selection in the financials and information technology sectors were the leading contributors to performance. In financials, London Stock Exchange and S&P Global both benefited from surging ETF volumes, while in South Africa insurer Sanlam was strong after the African National Congress chose a more business-friendly candidate as its next leader. In the information technology sector, a restructuring Tokyo Electron was well positioned to benefit from a broadening and steep acceleration in the semiconductor equipment cycle, which also helped Taiwan Semiconductor. Both Ubisoft and Activision rose materially as investors started to recognize the rapidly-changing dynamics of the global video-gaming industry, where revenues are becoming both less volatile and more profitable as the business model moves from single purchases of physical game DVDs, to repeating purchases of digital downloads. Results also continued to be strong in the electronic payments space, helping Visa and Worldpay, the latter was sold and being acquired by US peer Vantiv during the year. In the consumer discretionary sector, auto supplier Faurecia saw a material rise in expectations for future profit margins. We subsequently sold the position.

The key negatives were stock selection in the consumer staples and healthcare sectors. Beer company Molson Coors was hurt by a combination of declining market volumes, a softening of margin expectations, and an accounting change. In the healthcare sector, Shire Pharmaceuticals, despite an attractive valuation, was hurt by a steady drip of negative news around legal challenges and competing products. South African private hospital operator Netcare saw tough conditions in both its home market and in the United Kingdom, where it continued to struggle to restructure operations. We sold our position during the year. Disappointing results also came from the UK funeral company Dignity.

Lazard Managed Equity Volatility Portfolio

For the year ended December 31, 2017, the Lazard Managed Equity Volatility Portfolio’s Institutional Shares posted a total return of 20.57%, while Open Shares posted a total return of 20.11%, as compared with the 22.40% return for the MSCI World Index.

Positioning in more defensive sectors was the primary detractor from returns. Stock selection was slightly positive for the year. The underweight to the information technology sector and overweight to the utilities sector accounted for the majority of the year’s underperformance which was mitigated by the underweight to the healthcare and energy sectors, two sectors that lagged for the year. Regionally, the underweight to Europe and overweight to Canada were the largest detractors, offset partially by an overweight to Asia and underweight to the United States. Stock selection was favorable in five of eleven sectors led by the healthcare and real estate sectors. Holdings in the information technology and consumer discretionary sectors lagged.

Stocks that contributed to the Portfolio’s 2017 return included CSL, the Australian biotech that sold off at the end of 2016 on concerns over drug pricing pressures in the United States and new competition in the hemophilia field. The concerns turned out to be exaggerated, as the company enjoyed a strong year in 2017 with new drug approvals and earnings growth exceeded guidance. The company also completed a large share buyback. The German airline Deutsche Lufthansa benefited from the economic recovery which saw an increase in passenger traffic. The bankruptcy of Air Berlin, Germany’s second largest carrier, also sent traffic to them. Subsequently, they purchased Air Berlin giving them a dominant position in the market. Alongside the company’s low-cost subsidiary Eurowings, Lufthansa Cargo played a major role in the strong financial results. 3M Company also enjoyed a favorable year as the diversified industrial reported growth across all six business units along with an improvement in operating margins. Revenue growth accelerated in the second half of the year, and, along with benefits from the US tax reform, provided a lift to the stock at year end.

10  Annual Report

Detractors for the year included Centrica. The UK utility continues to struggle with a disappointing second half of the year after it announced that it was losing 823,000 domestic energy customers in just four months and that it would have to operate with a historically low dividend cover “for a period of time” in order to maintain its payouts. We sold our position in November. BT Group surprised the market with a

write-down due to improper accounting in their Italian subsidiary, setting in motion a number of management changes. The company carries a sizable pension liability that caused a stock selloff in 2016 as interest rates declined. It is expected that the recent increase in interest rates will benefit the company and the stock showed some strength going into the end of 2017. We used the opportunity to sell our entire position.

Notes to Investment Overviews:

All Portfolios’ 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. Returns for a period of less than one year are 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, 2017; 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  11

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, 2017

	One Year	Five Years	Ten Years	Since Inception	†
Institutional Shares**	15.49%	15.37%	7.70%	8.39%
Open Shares**	15.22%	15.00%	7.35%	8.07%
R6 Shares**	15.52%	N/A	N/A	13.81%
S&P 500 Index	21.83%	15.79%	8.50%	8.82% (Institutional and Open Shares) 22.30% (R6 Shares)
Russell 1000 Value/S&P 500 Linked Index	21.83%	15.79%	7.59%	8.00% (Institutional and Open Shares) N/A (R6 Shares)

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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”), if any, 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 Portfolio shares, 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.

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	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 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 companies in leading industries of the US economy. The Russell 1000 Value/S&P 500 Linked Index is an unmanaged index created by the Investment Manager, which links the performance of the Russell 1000® Value Index for all periods through May 30, 2012 (when the Portfolio’s investment strategy changed) and the S&P 500 Index for all periods thereafter. The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 Index measures the performance of the large-cap segment of the US equity universe. It includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. 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.

Annual Report  13

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, 2017

	One Year	Five Years	Ten Years	Since Inception	†
Institutional Shares**	18.17%	12.77%	7.11%	7.16%
Open Shares**	17.75%	12.44%	6.79%	6.85%
R6 Shares**	18.16%	N/A	N/A	9.44%
S&P 500 Index	21.83%	15.79%	8.50%	8.51% (Institutional and Open Shares) 12.53% (R6 Shares)

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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 companies in leading industries of the US economy. 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.

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Lazard US Small-Mid Cap Equity Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year	Five Years	Ten Years
Institutional Shares**	14.12%	14.46%	9.93%
Open Shares**	13.82%	14.12%	9.58%
Russell 2500 Index	16.81%	14.33%	9.22%
Russell 2000/2500 Linked Index	16.81%	14.33%	9.45%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, also exclude one-time 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 Portfolio shares, 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 measures the performance of the small-to mid-cap segment of the US equity universe, commonly referred to as “smid” cap. The Russell 2500 Index is a subset of the Russell 3000® Index. The Russell 3000 Index measures the performance of the largest 3,000 US companies, representing 98% of the investable US equity market. The Russell 2500 Index includes approximately 2,500 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000/2500 Linked Index is an unmanaged index created by the Investment Manager, which links the performance of the Russell 2000® Index for all periods through August 24, 2008 (when the Portfolio’s investment focus was changed from small cap companies to small-mid cap companies) and the Russell 2500 Index for all periods thereafter. The Russell 2000 Index includes approximately 2,000 of the smallest securities in the Russell 3000 Index, representing roughly 10% of the total market capitalization of Russell 3,000 companies. The indices are unmanaged, have no fees or costs and are not available for investment.
**	The performance of Institutional Shares and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report  15

Lazard International Equity Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year	Five Years	Ten Years	Since Inception	†
Institutional Shares**	22.81%	6.70%	2.87%	6.22%
Open Shares**	22.50%	6.42%	2.57%	5.09%
R6 Shares**	22.85%	N/A	N/A	4.50%
MSCI EAFE Index	25.03%	7.90%	1.94%	5.63% (Institutional Shares) 5.26% (Open Shares) 6.61% (R6 Shares)

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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 Index (Europe, Australasia, Far East) is a free-float-adjusted market capitalization index that is designed to measure developed markets equity performance, excluding the United States and Canada. The MSCI EAFE Index consists of 21 developed markets country indices. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares, Open Shares and R6 Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Institutional Shares was October 29, 1991, for the Open Shares was January 23, 1997 and for the R6 Shares was April 1, 2015.

16  Annual Report

Lazard International Equity Select Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year	Five Years	Ten Years
Institutional Shares**	28.31%	6.21%	2.06%
Open Shares**	27.89%	5.82%	1.71%
MSCI ACWI ex-US	27.19%	6.80%	1.84%
MSCI EAFE/ACWI ex-US Linked Index	27.19%	6.80%	1.26%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the indices have been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to their accuracy. The MSCI ACWI ex-US 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 ACWI ex-US consists of 46 country indices comprising 22 developed and 24 emerging markets country indices. The MSCI EAFE/ACWI ex-US Linked Index is an unmanaged index created by the Investment Manager, which links the performance of the MSCI EAFE Index for all periods through June 30, 2010 (when the Portfolio’s benchmark index changed) and the MSCI ACWI ex-US for all periods thereafter. The MSCI EAFE Index (Europe, Australasia, Far East) is a free-float-adjusted market capitalization index that is designed to measure developed markets equity performance, excluding the United States and Canada. The MSCI EAFE Index consists of 21 developed markets country indices. The indices are unmanaged, have no fees or costs and are not available for investment.
**	The performance of Institutional Shares and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report  17

Lazard International Equity Concentrated Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Equity Concentrated Portfolio and MSCI ACWI ex-US*

 

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year	Since Inception	†
Institutional Shares**	23.29%	2.42%
Open Shares**	22.87%	2.16%
MSCI ACWI ex-US	27.19%	4.20%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The MSCI ACWI 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 ACWI ex-US consists of 46 country indices comprising 22 developed and 24 emerging markets country indices. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was August 29, 2014.

18  Annual Report

Lazard International Strategic Equity Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year	Five Years	Ten Years	Since Inception	†
Institutional Shares**	27.85%	7.98%	3.81%	6.83%
Open Shares**	27.44%	7.71%	3.53%	5.42%
R6 Shares**	27.82%	N/A	N/A	6.11%
MSCI EAFE Index	25.03%	7.90%	1.94%	5.07% (Institutional Shares) 4.05% (Open Shares) 8.59% (R6 Shares)

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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 (Europe, Australasia, Far East) Index is a free-float-adjusted market capitalization index that is designed to measure developed markets equity performance, excluding the United States and Canada. The MSCI EAFE Index consists of 21 developed markets country indices. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares, Open Shares and R6 Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Institutional Shares was October 31, 2005, for the Open Shares was February 3, 2006 and for the R6 Shares was January 19, 2015.

Annual Report  19

Lazard International Equity Advantage Portfolio

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

 

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year	Since Inception	†
Institutional Shares**	24.98%	5.67%
Open Shares**	24.60%	5.35%
MSCI EAFE Index	25.03%	5.65%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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 Index (Europe, Australasia, Far East) is a free-float-adjusted market capitalization index that is designed to measure developed markets equity performance, excluding the United States and Canada. The MSCI EAFE Index consists of 21 developed markets country indices. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was May 29, 2015.

20  Annual Report

Lazard International Small Cap Equity Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year	Five Years	Ten Years
Institutional Shares**	36.57%	12.58%	5.06%
Open Shares**	36.20%	12.25%	4.76%
MSCI EAFE Small Cap Index	33.01%	12.85%	5.77%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, also exclude one-time 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 Portfolio shares, 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 targets all companies with market capitalizations below that of the companies in the MSCI EAFE Index and up to 99% coverage of the free-float-adjusted market capitalization in each market (subject to minimum investability criteria and a universal minimum size range). The MSCI EAFE Small Cap Index consists of 21 developed markets country indices. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report  21

Lazard Global Equity Select Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year	Since Inception	†
Institutional Shares**	28.52%	8.31%
Open Shares**	28.01%	7.98%
MSCI ACWI	23.97%	7.99%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The MSCI ACWI is a free-float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 47 country indices comprising 23 developed and 24 emerging markets country indices. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was December 31, 2013.

22  Annual Report

Lazard Global Strategic Equity Portfolio

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

 

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year	Since Inception	†
Institutional Shares**	24.20%	5.94%
Open Shares**	23.72%	5.59%
MSCI ACWI	23.97%	7.40%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The MSCI ACWI is a free-float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 47 country indices comprising 23 developed and 24 emerging markets country indices. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was August 29, 2014.

Annual Report  23

Lazard Managed Equity Volatility Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Managed Equity Volatility Portfolio and MSCI World Index*

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year	Since Inception	†
Institutional Shares**	20.57%	9.06%
Open Shares**	20.11%	8.70%
MSCI World Index	22.40%	8.68%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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 index that is designed to measure global developed markets equity performance. The MSCI World Index consists of 23 developed markets country indices. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was May 29, 2015.

24  Annual Report

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

Expense Example

As a shareholder in a Portfolio of the Fund, you incur 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, 2017 through December 31, 2017 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.

Annual Report  25

Portfolio Beginning
Account Value
7/1/17 Ending
Account Value
12/31/17 Expenses Paid
During Period*
7/1/17 - 12/31/17 Annualized Expense
Ratio During Period
7/1/17 - 12/31/17

US Equity Concentrated
Institutional Shares
Actual	$1,000.00	$1,072.40	$3.92	0.75%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,021.42	$3.82	0.75%
Open Shares
Actual	$1,000.00	$1,071.00	$5.38	1.03%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.01	$5.24	1.03%
R6 Shares
Actual	$1,000.00	$1,072.00	$3.81	0.73%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,021.53	$3.72	0.73%
US Strategic Equity
Institutional Shares
Actual	$1,000.00	$1,095.10	$3.96	0.75%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,021.42	$3.82	0.75%
Open Shares
Actual	$1,000.00	$1,093.20	$5.54	1.05%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.91	$5.35	1.05%
R6 Shares
Actual	$1,000.00	$1,095.00	$3.96	0.75%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,021.42	$3.82	0.75%
US Small-Mid Cap Equity
Institutional Shares
Actual	$1,000.00	$1,093.70	$4.49	0.85%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.92	$4.33	0.85%
Open Shares
Actual	$1,000.00	$1,091.90	$6.12	1.16%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.36	$5.90	1.16%
International Equity
Institutional Shares
Actual	$1,000.00	$1,094.90	$4.33	0.82%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,021.07	$4.18	0.82%
Open Shares
Actual	$1,000.00	$1,093.50	$5.65	1.07%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.81	$5.45	1.07%
R6 Shares
Actual	$1,000.00	$1,095.20	$4.22	0.80%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,021.17	$4.08	0.80%
International Equity Select
Institutional Shares
Actual	$1,000.00	$1,115.40	$5.60	1.05%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.91	$5.35	1.05%
Open Shares
Actual	$1,000.00	$1,114.20	$7.19	1.35%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.40	$6.87	1.35%

26   Annual Report

Portfolio	Beginning Account Value 7/1/17	Ending Account Value 12/31/17	Expenses Paid During Period* 7/1/17 - 12/31/17	Annualized Expense Ratio During Period 7/1/17 - 12/31/17
International Equity Concentrated
Institutional Shares
Actual	$1,000.00	$1,092.20	$5.54	1.05%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.91	$5.35	1.05%
Open Shares
Actual	$1,000.00	$1,091.00	$7.12	1.35%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.40	$6.87	1.35%
International Strategic Equity
Institutional Shares
Actual	$1,000.00	$1,121.70	$4.28	0.80%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,021.17	$4.08	0.80%
Open Shares
Actual	$1,000.00	$1,120.00	$5.61	1.05%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.91	$5.35	1.05%
R6 Shares
Actual	$1,000.00	$1,121.50	$4.22	0.79%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,021.22	$4.02	0.79%
International Equity Advantage
Institutional Shares
Actual	$1,000.00	$1,090.60	$4.74	0.90%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.67	$4.58	0.90%
Open Shares
Actual	$1,000.00	$1,088.40	$6.32	1.20%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.16	$6.11	1.20%
International Small Cap Equity
Institutional Shares
Actual	$1,000.00	$1,169.60	$5.74	1.05%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.91	$5.35	1.05%
Open Shares
Actual	$1,000.00	$ 1,167.20	$7.10	1.30%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.65	$6.61	1.30%
Equity Franchise†
Institutional Shares
Actual	$1,000.00	$1,042.50	$2.42	0.95%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,010.10	$2.38	0.95%
Open Shares
Actual	$1,000.00	$1,041.80	$3.05	1.20%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,009.45	$3.03	1.20%
Global Equity Select
Institutional Shares
Actual	$1,000.00	$1,123.10	$5.62	1.05%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.91	$5.35	1.05%
Open Shares
Actual	$1,000.00	$1,120.60	$7.22	1.35%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.40	$6.87	1.35%

Annual Report   27

Portfolio Beginning
Account Value
7/1/17 Ending
Account Value
12/31/17 Expenses Paid
During Period*
7/1/17 - 12/31/17 Annualized Expense
Ratio During Period
7/1/17 - 12/31/17

Global Strategic Equity
Institutional Shares
Actual	$1,000.00	$1,110.00	$5.90	1.11%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.61	$5.65	1.11%
Open Shares
Actual	$1,000.00	$ 1,107.80	$7.54	1.42%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,018.05	$7.22	1.42%
Managed Equity Volatility
Institutional Shares
Actual	$1,000.00	$1,092.00	$3.95	0.75%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,021.42	$3.82	0.75%
Open Shares
Actual	$1,000.00	$1,089.80	$5.53	1.05%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,019.91	$5.35	1.05%

*	Expenses are equal to the annualized expense ratio, net of expenses waivers and reimbursements, of each Share class multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period).
†	The Portfolio commenced operations on September 29, 2017.

28   Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2017

Sector*	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
Consumer Discretionary		7.6	%		9.3	%		9.5	%		12.3	%		11.0	%
Consumer Staples		18.4			7.6			4.7			10.5			8.9
Energy		1.9			6.2			4.8			7.6			5.3
Financials		—			14.2			19.2			17.2			17.5
Health Care		9.8			11.1			6.0			7.3			6.8
Industrials		7.9			11.8			18.8			20.1			18.6
Information Technology		36.4			30.1			14.6			7.2			16.6
Materials		5.7			3.5			8.4			5.5			1.9
Real Estate		—			1.5			10.4			2.6			2.7
Telecommunication Services		4.1			2.4			—			6.1			5.5
Utilities		—			—			3.6			1.4			2.1
Short-Term Investments		8.2			2.3			—			2.2			3.1
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Sector*	Lazard International Equity Concentrated Portfolio			Lazard International Strategic Equity Portfolio			Lazard International Equity Advantage Portfolio			Lazard International Small Cap Equity Portfolio			Lazard Equity Franchise Portfolio
Consumer Discretionary		13.1	%		17.7	%		11.7	%		18.5	%		21.5	%
Consumer Staples		9.0			12.9			9.0			2.0			—
Energy		3.9			4.8			6.8			3.2			—
Financials		14.1			24.1			20.2			10.6			—
Health Care		9.4			4.6			12.8			4.1			16.2
Industrials		14.7			17.2			14.4			21.7			17.9
Information Technology		22.5			10.9			7.6			17.9			32.2
Materials		5.7			1.0			5.5			4.1			3.6
Real Estate		—			2.7			4.7			11.2			—
Telecommunication Services		3.6			—			4.1			3.1			—
Utilities		1.9			—			2.5			—			5.3
Short-Term Investments		2.1			4.1			0.7			3.6			3.3
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Sector*	Lazard Global Equity Select Portfolio			Lazard Global Strategic Equity Portfolio			Lazard Managed Equity Volatility Portfolio
Consumer Discretionary		7.4	%		13.0	%		14.1	%
Consumer Staples		12.1			11.0			10.8
Energy		1.3			2.8			6.1
Financials		21.1			23.0			9.6
Health Care		8.7			7.4			9.1
Industrials		17.7			11.6			13.4
Information Technology		23.0			27.2			8.6
Materials		4.2			0.9			4.8
Real Estate		1.4			2.4			6.9
Telecommunication Services		—			0.7			4.4
Utilities		—			—			7.8
Short-Term Investments		3.1			—			4.4
Total Investments		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

Annual Report  29

The Lazard Funds, Inc. Portfolios of Investments December 31, 2017

Description	Shares		Fair Value
Lazard US Equity Concentrated Portfolio
Common Stocks | 91.2%
Air Freight & Logistics | 4.9%
United Parcel Service, Inc., Class B		657,395	$	78,328,614
Auto Components | 3.0%
Aptiv PLC		566,070		48,019,718
Beverages | 17.2%
Molson Coors Brewing Co., Class B		1,657,222		136,008,209
The Coca-Cola Co.		3,017,545		138,444,965
				274,453,174
Communications Equipment | 15.8%
Cisco Systems, Inc.		3,961,925		151,741,727
Motorola Solutions, Inc.		1,115,481		100,772,554
				252,514,281
Containers & Packaging | 3.5%
Crown Holdings, Inc. (*)		990,860		55,735,875
Diversified Telecommunication Services | 4.1%
AT&T, Inc.		1,698,400		66,033,792
Energy Equipment & Services | 1.8%
Schlumberger, Ltd.		438,000		29,516,820
Food Products | 1.1%
Kellogg Co.		251,155		17,073,517
Health Care Equipment & Supplies | 9.8%
Medtronic PLC		1,928,730		155,744,947
Internet Software & Services | 11.6%
Alphabet, Inc., Class A (*)		103,526		109,054,288
eBay, Inc. (*)		2,019,630		76,220,836
				185,275,124

Description	Shares		Fair Value
IT Services | 4.8%
DXC Technology Co.		799,000	$	75,825,100
Machinery | 2.9%
Wabtec Corp.		568,100		46,260,383
Metals & Mining | 2.2%
Steel Dynamics, Inc.		823,821		35,531,400
Semiconductors & Semiconductor Equipment | 4.0%
Skyworks Solutions, Inc.		665,525		63,191,599
Specialty Retail | 2.9%
AutoZone, Inc. (*)		65,280		46,438,234
Textiles, Apparel & Luxury Goods | 1.6%
Carter’s, Inc.		216,985		25,493,568
Total Common Stocks (Cost $1,308,765,811)				1,455,436,146
Short-Term Investments | 8.1%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $130,036,124)		130,036,124		130,036,124
Total Investments | 99.3% (Cost $1,438,801,935)			$	1,585,472,270
Cash and Other Assets in Excess of Liabilities | 0.7%				11,071,897
Net Assets | 100.0%			$	1,596,544,167

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 | 97.6%
Aerospace & Defense | 2.2%
United Technologies Corp.		14,725	$	1,878,468
Air Freight & Logistics | 2.9%
United Parcel Service, Inc., Class B		20,875		2,487,256
Auto Components | 1.4%
Aptiv PLC		14,035		1,190,589
Banks | 10.0%
Citigroup, Inc.		38,625		2,874,086
Citizens Financial Group, Inc.		51,600		2,166,168
Sterling Bancorp		47,550		1,169,730
SunTrust Banks, Inc.		35,700		2,305,863
				8,515,847
Beverages | 6.9%
Molson Coors Brewing Co., Class B		29,200		2,396,444
The Coca-Cola Co.		75,650		3,470,822
				5,867,266
Biotechnology | 1.3%
Biogen, Inc. (*)		2,225		708,818
Gilead Sciences, Inc.		5,900		422,676
				1,131,494
Building Products | 0.5%
Johnson Controls International PLC		11,000		419,210
Capital Markets | 3.3%
Intercontinental Exchange, Inc.		27,750		1,958,040
Morgan Stanley		16,500		865,755
				2,823,795
Chemicals | 1.0%
Agrium, Inc.		4,100		471,500
PPG Industries, Inc.		3,650		426,393
				897,893
Commercial Services & Supplies | 0.5%
Copart, Inc. (*)		10,145		438,163
Communications Equipment | 7.1%
Cisco Systems, Inc.		87,125		3,336,887
Motorola Solutions, Inc.		22,820		2,061,559
Palo Alto Networks, Inc. (*)		4,650		673,971
				6,072,417

Description	Shares		Fair Value
Containers & Packaging | 1.3%
Crown Holdings, Inc. (*)		19,410	$	1,091,813
Diversified Telecommunication Services | 2.4%
AT&T, Inc.		53,100		2,064,528
Electrical Equipment | 1.9%
Eaton Corp. PLC		20,935		1,654,074
Energy Equipment & Services | 1.5%
Schlumberger, Ltd.		18,800		1,266,932
Equity Real Estate Investment Trusts (REITs) | 1.5%
Prologis, Inc.		19,575		1,262,783
Food Products | 0.7%
Kellogg Co.		8,600		584,628
Health Care Equipment & Supplies | 3.9%
Medtronic PLC		32,950		2,660,713
Stryker Corp.		4,380		678,199
				3,338,912
Health Care Providers & Services | 0.8%
Humana, Inc.		2,775		688,394
Hotels, Restaurants & Leisure | 3.0%
McDonald’s Corp.		10,895		1,875,248
Starbucks Corp.		11,605		666,475
				2,541,723
Industrial Conglomerates | 1.7%
General Electric Co.		27,600		481,620
Honeywell International, Inc.		6,198		950,525
				1,432,145
Insurance | 1.0%
Aon PLC		6,130		821,420
Internet Software & Services | 8.0%
Alphabet, Inc., Class A (*)		3,921		4,130,382
Alphabet, Inc., Class C (*)		390		408,096
eBay, Inc. (*)		60,695		2,290,629
				6,829,107

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

Annual Report  31

Description	Shares		Fair Value
Lazard US Strategic Equity Portfolio (concluded)
IT Services | 5.0%
CoreLogic, Inc. (*)		16,700	$	771,707
DXC Technology Co.		12,350		1,172,015
Vantiv, Inc., Class A (*)		8,100		595,755
Visa, Inc., Class A		15,420		1,758,189
				4,297,666
Machinery | 1.7%
Deere & Co.		6,020		942,190
Wabtec Corp.		5,800		472,294
				1,414,484
Marine | 0.4%
Kirby Corp. (*)		4,850		323,980
Media | 0.6%
The Madison Square Garden Co., Class A (*)		2,258		476,099
Metals & Mining | 1.1%
Steel Dynamics, Inc.		22,300		961,799
Multiline Retail | 0.6%
Dollar Tree, Inc. (*)		4,800		515,088
Oil, Gas & Consumable Fuels | 4.7%
Cimarex Energy Co.		3,900		475,839
ConocoPhillips		26,945		1,479,011
EOG Resources, Inc.		11,005		1,187,550
Pioneer Natural Resources Co.		5,175		894,499
				4,036,899
Pharmaceuticals | 5.0%
Pfizer, Inc.		80,889		2,929,800
Zoetis, Inc.		19,004		1,369,048
				4,298,848

Description	Shares		Fair Value
Semiconductors & Semiconductor Equipment | 4.0%
Cypress Semiconductor Corp.		43,400	$	661,416
Intel Corp.		19,900		918,584
Skyworks Solutions, Inc.		19,435		1,845,353
				3,425,353
Software | 3.6%
Microsoft Corp.		35,700		3,053,778
Specialty Retail | 3.0%
AutoZone, Inc. (*)		1,840		1,308,921
Lowe’s Cos., Inc.		13,700		1,273,278
				2,582,199
Technology Hardware, Storage & Peripherals | 2.4%
Apple, Inc.		11,952		2,022,637
Textiles, Apparel & Luxury Goods | 0.7%
Carter’s, Inc.		5,370		630,921
Total Common Stocks (Cost $69,183,030)				83,338,608
Short-Term Investments | 2.3%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $1,947,372)		1,947,372		1,947,372
Total Investments | 99.9% (Cost $71,130,402)			$	85,285,980
Cash and Other Assets in Excess of Liabilities | 0.1%				78,668
Net Assets | 100.0%			$	85,364,648

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 | 96.9%
Air Freight & Logistics | 0.9%
Echo Global Logistics, Inc. (*)		63,533	$	1,778,924
Airlines | 1.4%
Alaska Air Group, Inc.		38,200		2,808,082
Auto Components | 1.1%
Modine Manufacturing Co. (*)		107,245		2,166,349
Banks | 12.7%
Bank of the Ozarks, Inc.		74,910		3,629,390
Comerica, Inc.		39,905		3,464,153
Commerce Bancshares, Inc.		69,992		3,908,353
FCB Financial Holdings, Inc., Class A (*)		61,160		3,106,928
Home BancShares, Inc.		144,035		3,348,814
PacWest Bancorp		44,091		2,222,186
Sterling Bancorp		123,285		3,032,811
Texas Capital Bancshares, Inc. (*)		33,790		3,003,931
				25,716,566
Biotechnology | 0.6%
Cellectis SA ADR (*)		38,315		1,116,882
Building Products | 1.0%
PGT Innovations, Inc. (*)		125,650		2,117,202
Capital Markets | 1.6%
Morningstar, Inc.		34,470		3,342,556
Chemicals | 4.4%
Ingevity Corp. (*)		26,495		1,867,103
Innospec, Inc.		48,195		3,402,567
Valvoline, Inc.		144,300		3,616,158
				8,885,828
Commercial Services & Supplies | 1.9%
Deluxe Corp.		50,440		3,875,810
Communications Equipment | 1.1%
Ciena Corp. (*)		108,535		2,271,638
Construction & Engineering | 1.0%
Dycom Industries, Inc. (*)		17,510		1,951,139

Description	Shares		Fair Value
Construction Materials | 1.1%
Eagle Materials, Inc.		19,940	$	2,259,202
Containers & Packaging | 2.0%
Graphic Packaging Holding Co.		264,525		4,086,911
Electric Utilities | 1.6%
PNM Resources, Inc.		80,000		3,236,000
Electrical Equipment | 5.3%
Atkore International Group, Inc. (*)		139,925		3,001,391
EnerSys		27,160		1,891,151
Generac Holdings, Inc. (*)		54,120		2,680,022
Regal Beloit Corp.		40,930		3,135,238
				10,707,802
Electronic Equipment, Instruments & Components | 2.5%
Belden, Inc.		25,895		1,998,317
FLIR Systems, Inc.		67,110		3,128,668
				5,126,985
Energy Equipment & Services | 4.6%
NCS Multistage Holdings, Inc.		102,930		1,517,188
Oceaneering International, Inc.		106,655		2,254,687
Patterson-UTI Energy, Inc.		116,085		2,671,116
U.S. Silica Holdings, Inc.		90,075		2,932,842
				9,375,833
Equity Real Estate Investment Trusts (REITs) | 10.1%
American Campus Communities, Inc.		53,450		2,193,054
Camden Property Trust		28,925		2,662,835
DCT Industrial Trust, Inc.		51,173		3,007,949
Extra Space Storage, Inc.		35,980		3,146,451
Healthcare Realty Trust, Inc.		105,050		3,374,206
Kilroy Realty Corp.		39,265		2,931,132
UDR, Inc.		80,155		3,087,571
				20,403,198
Food & Staples Retailing | 1.2%
Sprouts Farmers Market, Inc. (*)		103,310		2,515,598
Food Products | 3.3%
The J.M. Smucker Co.		31,215		3,878,152
The Simply Good Foods Co. (*)		204,140		2,911,036
				6,789,188
Gas Utilities | 0.7%
Northwest Natural Gas Co.		22,320		1,331,388

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)
Health Care Equipment & Supplies | 1.5%
STERIS PLC		35,510	$	3,106,060
Health Care Providers & Services | 0.9%
AMN Healthcare Services, Inc. (*)		35,185		1,732,861
Household Durables | 1.6%
Leggett & Platt, Inc.		68,390		3,264,255
Independent Power & Renewable Electricity Producers | 1.2%
Pattern Energy Group, Inc.		112,300		2,413,327
Insurance | 2.8%
Arch Capital Group, Ltd. (*)		34,990		3,176,042
Reinsurance Group of America, Inc.		15,715		2,450,440
				5,626,482
Internet Software & Services | 1.4%
j2 Global, Inc.		36,545		2,741,971
IT Services | 3.7%
CoreLogic, Inc. (*)		72,930		3,370,095
Leidos Holdings, Inc.		46,815		3,022,845
Vantiv, Inc., Class A (*)		16,200		1,191,510
				7,584,450
Life Sciences Tools & Services | 1.8%
Cambrex Corp. (*)		28,355		1,361,040
INC Research Holdings, Inc., Class A (*)		54,320		2,368,352
				3,729,392
Machinery | 3.5%
Snap-on, Inc.		15,575		2,714,722
TriMas Corp. (*)		58,461		1,563,832
Wabtec Corp.		34,785		2,832,543
				7,111,097
Marine | 1.6%
Kirby Corp. (*)		47,220		3,154,296
Media | 2.4%
Emerald Expositions Events, Inc.		95,745		1,947,453
Scholastic Corp.		73,242		2,937,737
				4,885,190

Description	Shares		Fair Value
Metals & Mining | 0.7%
Steel Dynamics, Inc.		30,690	$	1,323,660
Pharmaceuticals | 1.0%
Catalent, Inc. (*)		50,010		2,054,411
Professional Services | 1.7%
FTI Consulting, Inc. (*)		81,210		3,488,782
Semiconductors & Semiconductor Equipment | 3.7%
Cypress Semiconductor Corp.		190,900		2,909,316
Microsemi Corp. (*)		41,210		2,128,496
Versum Materials, Inc.		65,995		2,497,911
				7,535,723
Software | 1.7%
Bottomline Technologies de, Inc. (*)		100,400		3,481,872
Specialty Retail | 1.6%
Floor & Decor Holdings, Inc., Class A		33,165		1,614,472
Tractor Supply Co.		20,890		1,561,528
				3,176,000
Textiles, Apparel & Luxury Goods | 2.5%
Carter’s, Inc.		23,280		2,735,167
Steven Madden, Ltd. (*)		52,210		2,438,207
				5,173,374
Thrifts & Mortgage Finance | 1.5%
Washington Federal, Inc.		91,125		3,121,031
Total Common Stocks (Cost $169,897,416)				196,567,315
Total Investments | 96.9% (Cost $169,897,416)			$	196,567,315
Cash and Other Assets in Excess of Liabilities | 3.1%				6,380,873
Net Assets | 100.0%			$	202,948,188

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

34  Annual Report

Description	Shares		Fair Value
Lazard International Equity Portfolio
Common Stocks | 98.0%
Australia | 3.2%
BHP Billiton PLC		4,594,301	$	94,039,379
Caltex Australia, Ltd.		1,007,618		26,724,646
				120,764,025
Belgium | 2.5%
Anheuser-Busch InBev SA/NV		573,589		63,979,747
KBC Group NV		354,208		30,178,083
				94,157,830
Brazil | 0.9%
Cielo SA		4,709,000		33,251,044
Canada | 4.4%
Canadian National Railway Co.		447,910		36,933,868
National Bank of Canada		1,186,200		59,187,322
Suncor Energy, Inc.		1,975,710		72,537,006
				168,658,196
Denmark | 2.5%
AP Moller-Maersk A/S, Class B		27,416		47,776,243
Carlsberg A/S, Class B		409,037		48,992,953
				96,769,196
Finland | 1.5%
Sampo Oyj, A Shares		1,009,631		55,464,485
France | 10.6%
Air Liquide SA		545,520		68,610,681
Capgemini SE		730,293		86,424,586
Cie Generale des Etablissements Michelin		477,584		68,411,196
Safran SA		423,505		43,548,763
Valeo SA		514,162		38,316,342
Vinci SA		945,829		96,500,090
				401,811,658
Germany | 4.2%
Deutsche Post AG		1,318,169		62,619,490
SAP SE		879,813		98,653,291
				161,272,781
Ireland | 3.6%
Ryanair Holdings PLC Sponsored ADR (*)		474,339		49,421,380
Shire PLC		1,666,028		86,414,141
				135,835,521
Italy | 0.7%
UniCredit SpA (*)		1,411,078		26,287,381

Description	Shares		Fair Value
Japan | 18.4%
Bridgestone Corp.		808,800	$	37,614,054
Daiwa House Industry Co., Ltd.		2,560,678		98,373,570
Don Quijote Holdings Co., Ltd.		1,976,800		103,341,711
Hoshizaki Corp.		214,400		18,928,989
Isuzu Motors, Ltd.		4,103,200		68,617,532
Kao Corp.		608,180		41,135,949
KDDI Corp.		1,701,000		42,350,374
Makita Corp.		1,569,100		65,695,195
Shin-Etsu Chemical Co., Ltd.		454,400		46,087,427
Sony Corp.		1,300,700		58,426,161
Sumitomo Mitsui Financial Group, Inc.		1,497,500		64,677,015
United Arrows, Ltd.		717,000		29,117,983
Yamaha Corp.		726,100		26,632,272
				700,998,232
Luxembourg | 0.7%
Tenaris SA		1,575,473		24,869,256
Netherlands | 6.8%
ABN AMRO Group NV		892,779		28,727,948
Koninklijke KPN NV		8,859,455		30,908,234
Royal Dutch Shell PLC, A Shares		3,531,692		118,229,657
Wolters Kluwer NV		1,578,737		82,210,703
				260,076,542
Norway | 2.9%
Statoil ASA		2,221,725		47,527,330
Telenor ASA		2,864,798		61,365,911
				108,893,241
Singapore | 2.4%
DBS Group Holdings, Ltd.		3,497,700		64,762,615
NetLink NBN Trust		43,706,000		27,283,825
				92,046,440
Spain | 1.7%
Bankia SA		1,735,722		8,284,712
Red Electrica Corporacion SA		2,463,507		55,239,560
				63,524,272
Sweden | 3.4%
Assa Abloy AB, Class B		3,323,244		68,958,669
Nordea Bank AB		5,042,329		61,024,992
				129,983,661
Switzerland | 6.5%
Ferguson PLC		1,170,400		83,745,285
Julius Baer Group, Ltd.		775,686		47,423,130
Novartis AG		1,388,650		117,398,899
				248,567,314

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

Annual Report  35

Description	Shares		Fair Value
Lazard International Equity Portfolio (concluded)
Taiwan | 1.5%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		1,416,800	$	56,176,120
Turkey | 1.1%
Turkcell Iletisim Hizmetleri AS		10,074,715		41,141,803
United Kingdom | 14.5%
British American Tobacco PLC		1,580,638		106,678,005
BT Group PLC		7,611,863		27,870,361
Diageo PLC		1,758,066		64,342,301
Howden Joinery Group PLC		4,690,473		29,542,150
Informa PLC		4,091,225		39,798,470
Prudential PLC		5,194,160		133,542,729
RELX PLC		3,326,248		77,926,428
Unilever PLC		1,315,277		72,865,789
				552,566,233
United States | 4.0%
Aon PLC		577,375		77,368,250
Medtronic PLC		931,110		75,187,133
				152,555,383
Total Common Stocks (Cost $3,150,106,680)				3,725,670,614

Description	Shares		Fair Value
Short-Term Investments | 2.2%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $84,623,777)		84,623,777	$	84,623,777
Total Investments | 100.2% (Cost $3,234,730,457)			$	3,810,294,391
Liabilities in Excess of Cash and Other Assets | (0.2)%				(6,274,037	)
Net Assets | 100.0%			$	3,804,020,354

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 | 96.5%
Australia | 1.9%
BHP Billiton, Ltd.		46,149	$	1,062,270
Belgium | 1.7%
Anheuser-Busch InBev SA/NV		8,600		959,268
Brazil | 3.1%
BB Seguridade Participacoes SA		71,400		612,085
Cia de Saneamento Basico do Estado de Sao Paulo		41,600		433,248
Cielo SA		97,040		685,216
				1,730,549
Canada | 2.6%
Canadian National Railway Co.		6,900		568,962
Suncor Energy, Inc.		23,900		877,474
				1,446,436
China | 3.6%
Ping An Insurance (Group) Co. of China, Ltd., Class H		41,500		431,940
Tencent Holdings, Ltd.		31,000		1,602,544
				2,034,484
Denmark | 1.7%
Carlsberg A/S, Class B		8,209		983,244
Finland | 2.0%
Sampo Oyj, A Shares		21,105		1,159,412
France | 6.0%
Cie Generale des Etablissements Michelin		5,531		792,284
Safran SA		4,146		426,331
Valeo SA		14,537		1,083,325
Vinci SA		11,065		1,128,929
				3,430,869
Germany | 4.9%
Continental AG		2,427		655,229
Deutsche Post AG		13,154		624,880
SAP SE		13,511		1,514,986
				2,795,095
India | 1.3%
ICICI Bank, Ltd. Sponsored ADR		76,355		742,934

Description	Shares		Fair Value
Indonesia | 1.7%
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		30,208	$	973,302
Ireland | 3.1%
Ryanair Holdings PLC Sponsored ADR (*)		6,382		664,941
Shire PLC		21,510		1,115,688
				1,780,629
Japan | 13.0%
Daiwa House Industry Co., Ltd.		39,400		1,513,630
FANUC Corp.		1,900		456,492
Kao Corp.		7,000		473,464
KDDI Corp.		20,000		497,947
Makita Corp.		25,500		1,067,636
Ryohin Keikaku Co., Ltd.		3,600		1,120,879
Sony Corp.		15,200		682,769
Sumitomo Mitsui Financial Group, Inc.		21,076		910,272
Tokyo Electron, Ltd.		3,800		680,686
				7,403,775
Netherlands | 5.1%
ABN AMRO Group NV		15,394		495,350
Royal Dutch Shell PLC, A Shares		37,683		1,256,687
Wolters Kluwer NV		22,027		1,147,028
				2,899,065
Norway | 2.7%
Statoil ASA		39,451		843,939
Telenor ASA		33,353		714,444
				1,558,383
Philippines | 0.6%
Alliance Global Group, Inc. (*)		1,100,900		352,384
Russia | 1.1%
Yandex NV Class A (*)		19,355		633,876
Singapore | 1.7%
DBS Group Holdings, Ltd.		51,800		959,117
South Africa | 2.1%
Mr. Price Group, Ltd.		20,568		406,789
Sanlam, Ltd.		112,165		788,102
				1,194,891
South Korea | 2.4%
Samsung Electronics Co., Ltd.		565		1,342,341
Spain | 1.3%
Red Electrica Corporacion SA		33,066		741,443

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

Annual Report  37

Description	Shares		Fair Value
Lazard International Equity Select Portfolio (concluded)
Sweden | 2.9%
Assa Abloy AB, Class B		54,674	$	1,134,508
Nordea Bank AB		41,670		504,313
				1,638,821
Switzerland | 5.2%
ABB, Ltd.		17,018		455,102
Cie Financiere Richemont SA		4,863		440,310
Ferguson PLC		10,786		771,768
Novartis AG		15,046		1,272,015
				2,939,195
Taiwan | 2.9%
Taiwan Semiconductor Manufacturing
Co., Ltd.		216,341		1,662,378
Thailand | 1.1%
Kasikornbank Public Co. Ltd.		81,800		597,845
Turkey | 2.3%
KOC Holding AS		74,589		363,710
Turkcell Iletisim Hizmetleri AS		231,837		946,745
				1,310,455
United Kingdom | 12.5%
Ashtead Group PLC		23,228		619,907
British American Tobacco PLC		20,555		1,387,267
Compass Group PLC		49,241		1,064,736

Description	Shares		Fair Value
ConvaTec Group PLC		106,884	$	295,387
London Stock Exchange Group PLC		878		44,955
Prudential PLC		67,394		1,732,711
RELX PLC		31,206		731,086
Unilever PLC		22,156		1,227,433
				7,103,482
United States | 6.0%
Accenture PLC, Class A		8,500		1,301,265
Aon PLC		6,860		919,240
Medtronic PLC		14,325		1,156,744
				3,377,249
Total Common Stocks (Cost $45,854,288)				54,813,192
Short-Term Investments | 3.1%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $1,736,057)		1,736,057		1,736,057
Total Investments | 99.6% (Cost $47,590,345)			$	56,549,249
Cash and Other Assets in Excess of Liabilities | 0.4%				210,500
Net Assets | 100.0%			$	56,759,749

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 | 97.9%
Australia | 2.7%
Amcor, Ltd.		156,159	$	1,876,337
Belgium | 4.0%
Anheuser-Busch InBev SA/NV		25,136		2,803,741
Brazil | 1.9%
Cia de Saneamento Basico do Estado de Sao Paulo		125,600		1,308,077
Canada | 8.5%
National Bank of Canada		63,906		3,188,691
Suncor Energy, Inc.		74,835		2,747,522
				5,936,213
China | 5.3%
Tencent Holdings, Ltd.		71,618		3,702,291
Finland | 1.0%
Metso OYJ		20,973		715,465
France | 14.1%
Capgemini SE		18,385		2,175,724
Safran SA		13,600		1,398,480
Valeo SA		26,971		2,009,931
Vinci SA		27,691		2,825,229
Vivendi SA		52,871		1,421,704
				9,831,068
Germany | 2.8%
SAP SE		17,399		1,950,947
India | 2.0%
ICICI Bank, Ltd. Sponsored ADR		142,040		1,382,049
Ireland | 5.1%
Shire PLC		68,982		3,577,983
Japan | 10.4%
Bridgestone Corp.		76,600		3,562,360
Daifuku Co., Ltd.		27,600		1,501,521
Digital Garage, Inc.		83,900		2,208,471
				7,272,352

Description	Shares		Fair Value
Netherlands | 5.5%
Wolters Kluwer NV		73,341	$	3,819,138
South Korea | 4.0%
Samsung Electronics Co., Ltd.		1,167		2,772,587
Taiwan | 4.1%
Taiwan Semiconductor Manufacturing
Co., Ltd. Sponsored ADR		71,617		2,839,614
Turkey | 3.6%
Turkcell Iletisim Hizmetleri AS		612,610		2,501,697
United Kingdom | 15.9%
British American Tobacco PLC		50,791		3,427,909
Compass Group PLC		99,731		2,156,479
Prudential PLC		131,008		3,368,238
Rio Tinto PLC		39,567		2,088,233
				11,040,859
United States | 7.0%
Aon PLC		14,020		1,878,680
Medtronic PLC		36,829		2,973,942
				4,852,622
Total Common Stocks (Cost $61,226,724)				68,183,040
Short-Term Investments | 2.0%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $1,424,227)		1,424,227		1,424,227
Total Investments | 99.9%  (Cost $62,650,951)			$	69,607,267
Cash and Other Assets in Excess of Liabilities | 0.1%				52,357
Net Assets | 100.0%			$	69,659,624

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 | 96.2%
Brazil | 0.8%
Cielo SA		7,724,140	$	54,541,456
Canada | 6.3%
Bombardier, Inc., Class B (*)		38,037,400		91,689,198
CAE, Inc.		5,766,270		107,114,085
National Bank of Canada		2,602,620		129,861,835
Suncor Energy, Inc.		3,458,318		126,970,068
				455,635,186
China | 3.5%
Alibaba Group Holding, Ltd. Sponsored ADR (*)		453,000		78,110,790
Ping An Insurance (Group) Co. of China, Ltd., Class H		6,775,000		70,515,483
Tencent Holdings, Ltd.		1,997,600		103,265,897
				251,892,170
Denmark | 2.1%
Carlsberg A/S, Class B		1,260,280		150,951,722
Finland | 4.0%
Metso OYJ		1,128,248		38,488,631
Sampo Oyj, A Shares		4,570,923		251,105,495
				289,594,126
France | 6.9%
Faurecia		1,279,688		99,792,029
Safran SA		1,094,718		112,569,189
Television Francaise 1		3,792,028		55,752,409
Ubisoft Entertainment SA (*)		693,012		53,322,969
Vivendi SA		6,724,079		180,810,808
				502,247,404
Germany | 2.5%
Fresenius SE & Co. KGaA		997,490		77,664,763
KION Group AG		1,169,268		100,880,500
				178,545,263
India | 1.1%
Housing Development Finance Corp., Ltd.		3,024,247		80,939,321
Indonesia | 0.1%
PT Media Nusantara Citra Tbk		93,733,100		8,877,206

Description	Shares		Fair Value
Ireland | 5.1%
Bank of Ireland Group PLC (*)		12,429,973	$	105,738,886
Kerry Group PLC, Class A		713,662		80,035,599
Shire PLC		3,559,861		184,644,153
				370,418,638
Italy | 0.9%
UniCredit SpA (*)		3,690,177		68,745,377
Japan | 20.3%
AEON Financial Service Co., Ltd.		4,965,900		115,323,961
CyberAgent, Inc.		3,038,600		118,682,649
Daiwa House Industry Co., Ltd.		5,106,800		196,187,942
Don Quijote Holdings Co., Ltd.		4,831,700		252,588,095
FANUC Corp.		685,000		164,577,208
Hoshizaki Corp.		561,800		49,600,307
Kao Corp.		1,531,700		103,600,798
Makita Corp.		4,044,400		169,331,238
Shimano, Inc.		689,100		96,956,682
Tokyo Electron, Ltd.		842,600		150,933,272
Yamaha Corp.		1,363,700		50,018,495
				1,467,800,647
Luxembourg | 1.0%
ArcelorMittal (*)		2,263,704		73,310,509
Netherlands | 2.7%
ABN AMRO Group NV		1,335,526		42,974,713
Wolters Kluwer NV		2,984,966		155,438,273
				198,412,986
New Zealand | 1.0%
Z Energy, Ltd.		12,721,365		68,888,309
Norway | 2.1%
Statoil ASA		7,076,407		151,379,101
Philippines | 0.9%
GT Capital Holdings, Inc.		2,511,845		65,015,552
Singapore | 1.9%
DBS Group Holdings, Ltd.		7,514,000		139,127,509
Spain | 0.8%
Bankia SA		12,469,125		59,515,933
Sweden | 2.7%
Assa Abloy AB, Class B		5,386,236		111,766,595
Hexagon AB, B Shares		1,654,511		82,746,028
				194,512,623

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

40  Annual Report

Description	Shares		Fair Value
Lazard International Strategic Equity Portfolio (concluded)
Switzerland | 4.9%
Cie Financiere Richemont SA		1,203,412	$	108,960,421
Julius Baer Group, Ltd.		2,753,436		168,336,869
Partners Group Holding AG		114,299		78,321,778
				355,619,068
Taiwan | 1.6%
Taiwan Semiconductor Manufacturing Co., Ltd.		15,001,000		115,268,648
United Kingdom | 18.2%
Ashtead Group PLC		3,457,676		92,278,155
British American Tobacco PLC		3,627,086		244,793,746
CNH Industrial NV		4,115,616		55,021,332
Coca-Cola European Partners PLC		4,218,292		168,024,341
Compass Group PLC		5,635,835		121,863,417
Diageo PLC		5,147,626		188,394,578
Informa PLC		19,554,440		190,220,972
Prudential PLC		10,043,112		258,210,102
				1,318,806,643

Description	Shares		Fair Value
United States | 4.8%
Accenture PLC, Class A		1,005,160	$	153,879,944
Aon PLC		894,440		119,854,960
Medtronic PLC		875,900		70,728,925
				344,463,829
Total Common Stocks (Cost $5,675,247,605)				6,964,509,226
Short-Term Investments | 4.1%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $294,877,528)		294,877,528		294,877,528
Total Investments | 100.3% (Cost $5,970,125,133)			$	7,259,386,754
Liabilities in Excess of Cash and Other Assets | (0.3)%				(20,958,086	)
Net Assets | 100.0%			$	7,238,428,668

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 | 100.0%
Australia | 6.8%
Aristocrat Leisure, Ltd.		2,235	$	41,186
BlueScope Steel, Ltd.		430		5,153
CIMIC Group, Ltd.		153		6,135
Cochlear, Ltd.		177		23,630
CSL, Ltd.		526		57,892
Fortescue Metals Group, Ltd.		2,807		10,667
Newcrest Mining, Ltd.		201		3,571
Platinum Asset Management, Ltd.		1,878		11,269
Qantas Airways, Ltd.		1,746		6,854
South32, Ltd.		4,046		11,001
				177,358
Belgium | 0.2%
Ontex Group NV		138		4,559
Denmark | 2.8%
Novo Nordisk A/S, Class B		1,139		61,216
Vestas Wind Systems A/S		186		12,749
				73,965
Faeroe Islands | 0.2%
Bakkafrost P/F		119		5,022
France | 9.4%
Air France-KLM (*)		599		9,738
AXA SA		1,573		46,621
BNP Paribas SA		47		3,505
Credit Agricole SA		997		16,470
Faurecia		129		10,060
Ipsen SA		45		5,375
Klepierre REIT		134		5,893
Peugeot SA		1,091		22,162
Safran SA		85		8,741
Sanofi		217		18,684
Schneider Electric SE		43		3,647
Societe Generale SA		657		33,873
TOTAL SA		946		52,196
Unibail-Rodamco SE REIT		16		4,031
Valeo SA		86		6,409
				247,405

Description	Shares		Fair Value
Germany | 11.1%
Allianz SE		85	$	19,466
BASF SE		193		21,181
Bayer AG		92		11,442
Continental AG		160		43,196
Covestro AG		344		35,371
Deutsche Lufthansa AG		1,157		42,532
Deutsche Post AG		115		5,463
Deutsche Telekom AG		1,128		20,005
E.ON SE		797		8,642
Infineon Technologies AG		213		5,817
Rheinmetall AG		74		9,397
RWE AG (*)		573		11,684
SAP SE		376		42,161
Siltronic AG (*)		65		9,434
United Internet AG		85		5,847
				291,638
Hong Kong | 3.3%
China Cord Blood Corp. (*)		300		2,985
CK Asset Holdings, Ltd.		1,000		8,741
CK Hutchison Holdings, Ltd.		500		6,277
Jardine Matheson Holdings, Ltd.		247		14,996
The Wharf Holdings, Ltd.		3,814		13,189
WH Group, Ltd.		7,989		9,005
Wharf Real Estate Investment Co., Ltd. (*)		3,814		25,385
Wheelock & Co., Ltd.		999		7,138
				87,716
Italy | 1.7%
Assicurazioni Generali SpA		573		10,432
Banca Generali SpA		296		9,834
Intesa Sanpaolo SpA		7,096		23,534
				43,800
Japan | 25.9%
Adastria Co., Ltd.		200		4,046
Asahi Glass Co., Ltd.		1,000		43,253
Canon, Inc.		800		29,793
Daito Trust Construction Co., Ltd.		100		20,370
Daiwa House Industry Co., Ltd.		900		34,575
East Japan Railway Co. ADR		714		11,617
Ferrotec Holdings Corp.		200		4,061
Fujitsu, Ltd.		1,000		7,088
Haseko Corp.		1,100		17,025
Hitachi, Ltd.		2,000		15,558
Itochu Techno-Solutions Corp.		400		17,337
JAC Recruitment Co., Ltd.		200		3,880
JXTG Holdings, Inc.		900		5,815

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

42  Annual Report

Description	Shares		Fair Value
Lazard International Equity Advantage Portfolio (continued)
Kakaku.com, Inc.		300	$	5,074
Kanamoto Co., Ltd.		100		3,102
Kao Corp.		100		6,764
KDDI Corp.		700		17,428
Kobe Bussan Co., Ltd.		100		3,829
Kyushu Electric Power Co., Inc.		400		4,190
Maeda Corp.		1,000		13,752
Maruha Nichiro Corp.		300		9,025
Mitsubishi Chemical Holdings Corp.		1,600		17,565
Mitsubishi UFJ Financial Group, Inc.		9,700		71,173
Morinaga Milk Industry Co., Ltd.		300		13,581
MS&AD Insurance Group Holdings, Inc.		300		10,158
Nippon Denko Co., Ltd.		1,200		5,018
Nippon Light Metal Holdings Co., Ltd.		900		2,565
Nippon Shinyaku Co., Ltd.		100		7,430
Nippon Steel & Sumitomo Metal Corp.		100		2,567
Nippon Telegraph & Telephone Corp.		594		27,951
Nishimatsu Construction Co., Ltd.		500		14,026
Nissan Motor Co., Ltd.		3,088		30,796
Nomura Holdings, Inc.		1,700		10,038
NTT DOCOMO, Inc.		700		16,535
ORIX Corp.		1,600		27,053
Penta-Ocean Construction Co., Ltd.		800		5,966
Prima Meat Packers, Ltd.		2,000		14,653
SBI Holdings, Inc.		900		18,787
Shionogi & Co., Ltd.		200		10,813
Sompo Holdings, Inc.		500		19,277
Start Today Co., Ltd.		300		9,123
Taisei Corp.		100		4,974
Teijin, Ltd.		700		15,599
THK Co., Ltd.		100		3,746
Tokyo Electron, Ltd.		100		17,913
Toyo Construction Co., Ltd.		1,000		5,842
Toyo Seikan Group Holdings, Ltd.		300		4,813
Yaskawa Electric Corp.		300		13,109
				678,653
Luxembourg | 0.5%
B&M European Value Retail SA		2,372		13,526
Netherlands | 3.6%
Aegon NV		1,953		12,447
Royal Dutch Shell PLC, A Shares		1,724		57,714
Wolters Kluwer NV		445		23,173
				93,334

Description	Shares		Fair Value
New Zealand | 0.3%
a2 Milk Co., Ltd. (*)		1,240	$	7,079
Norway | 2.9%
Aker BP ASA		398		9,785
Salmar ASA		164		4,901
Statoil ASA		2,528		54,079
Telenor ASA		366		7,840
				76,605
Portugal | 0.3%
Jeronimo Martins SGPS SA		462		8,972
Russia | 0.4%
Evraz PLC		2,498		11,459
Singapore | 1.4%
United Overseas Bank, Ltd.		900		17,755
UOL Group, Ltd.		900		5,967
Venture Corp., Ltd.		800		12,225
				35,947
Spain | 2.7%
Banco Bilbao Vizcaya Argentaria SA		1,828		15,561
Banco Santander SA		6,720		44,065
Industria de Diseno Textil SA		128		4,452
Telefonica SA		725		7,059
				71,137
Sweden | 3.0%
Atlas Copco AB, Class A		62		2,670
Electrolux AB, Series B		1,007		32,387
Husqvarna AB, B Shares		418		3,974
Sandvik AB		679		11,869
Volvo AB, Class B		1,502		27,947
				78,847
Switzerland | 7.5%
ABB, Ltd.		138		3,691
Adecco Group AG		308		23,540
Logitech International SA		207		6,981
Nestle SA		538		46,232
Partners Group Holding AG		23		15,760
Roche Holding AG		334		84,475
STMicroelectronics NV		222		4,821
Swiss Life Holding AG		29		10,264
				195,764

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

Annual Report  43

Description	Shares		Fair Value
Lazard International Equity Advantage Portfolio (concluded)
United Kingdom | 14.9%
Admiral Group PLC		646	$	17,421
Ashtead Group PLC		487		12,997
Associated British Foods PLC		379		14,408
AstraZeneca PLC		377		25,871
Centrica PLC		5,040		9,332
Crest Nicholson Holdings PLC		672		4,921
Fevertree Drinks PLC		384		11,826
Hargreaves Lansdown PLC		303		7,371
Howden Joinery Group PLC		1,267		7,980
Imperial Brands PLC		96		4,103
International Consolidated Airlines Group SA		3,306		28,663
IQE PLC (*)		2,256		4,140
Lloyds Banking Group PLC		34,228		31,342
Persimmon PLC		417		15,399
Redrow PLC		718		6,360
Royal Bank of Scotland Group PLC (*)		7,833		29,216
Smith & Nephew PLC		996		17,234
SSE PLC		1,798		32,031
SSP Group PLC		1,179		10,833
Taylor Wimpey PLC		4,026		11,215

Description	Shares		Fair Value
Unilever NV		1,317	$	73,995
Vodafone Group PLC		3,173		10,024
Whitbread PLC		103		5,563
				392,245
United States | 1.1%
Carnival PLC		263		17,292
ICON PLC (*)		100		11,215
				28,507
Total Common Stocks (Cost $2,289,438)				2,623,538
Short-Term Investments | 0.7%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $19,209)		19,209		19,209
Total Investments | 100.7% (Cost $2,308,647)			$	2,642,747
Liabilities in Excess of Cash and Other Assets | (0.7)%				(18,831	)
Net Assets | 100.0%			$	2,623,916

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 | 96.2%
Australia | 5.4%
carsales.com, Ltd.		83,923	$	946,169
Hansen Technologies, Ltd.		269,217		828,635
MYOB Group, Ltd.		287,194		810,261
Pact Group Holdings, Ltd.		189,493		838,148
SpeedCast International, Ltd.		258,082		1,077,403
				4,500,616
Belgium | 1.5%
Kinepolis Group NV		18,912		1,262,793
Canada | 3.9%
Alaris Royalty Corp.		30,300		498,251
Altus Group, Ltd.		42,165		1,238,786
StorageVault Canada, Inc.		361,500		756,360
The Descartes Systems Group, Inc. (*)		26,100		742,095
				3,235,492
Denmark | 0.7%
Dfds A/S		11,787		628,723
France | 1.3%
Chargeurs SA		35,090		1,065,184
Germany | 9.2%
Aroundtown SA		220,282		1,696,613
AURELIUS Equity Opportunities SE & Co. KGaA		15,410		1,053,320
CompuGroup Medical SE		19,832		1,298,552
Corestate Capital Holding SA		15,305		980,349
Duerr AG		6,539		832,912
Norma Group SE		14,495		967,864
PATRIZIA Immobilien AG (*)		37,791		873,408
				7,703,018
Hong Kong | 0.7%
Tongda Group Holdings, Ltd.		2,320,000		593,144
Ireland | 2.7%
Dalata Hotel Group PLC (*)		137,832		1,041,007
Glenveagh Properties PLC		347,275		490,849
Irish Continental Group PLC		105,884		733,195
				2,265,051

Description	Shares		Fair Value
Israel | 1.9%
Orbotech, Ltd. (*)		14,600	$	733,504
Taptica international, Ltd.		136,577		857,178
				1,590,682
Italy | 2.4%
Cerved Information Solutions SpA		89,922		1,141,977
Ei Towers SpA		13,902		891,726
				2,033,703
Japan | 26.8%
ABC-Mart, Inc.		11,500		660,082
Ai Holdings Corp.		32,360		782,525
Anicom Holdings, Inc.		31,800		1,024,994
Ariake Japan Co., Ltd.		9,700		827,516
CyberAgent, Inc.		23,100		902,247
Daikyonishikawa Corp.		62,500		1,012,040
Dip Corp.		35,100		907,440
Financial Products Group Co., Ltd.		100,537		1,219,673
GMO internet, Inc.		67,600		1,144,623
Iriso Electronics Co., Ltd.		15,982		953,526
Jafco Co., Ltd.		22,000		1,268,283
Macromill, Inc.		27,900		665,940
Nissei ASB Machine Co., Ltd.		27,200		1,651,444
Open House Co., Ltd.		18,100		971,988
Persol Holdings Co., Ltd.		44,500		1,115,670
Sanwa Holdings Corp.		86,000		1,184,188
Seria Co., Ltd.		14,700		884,878
Skylark Co., Ltd.		48,225		685,366
TechnoPro Holdings, Inc.		22,845		1,241,025
Toridoll Holdings Corp.		35,100		1,307,833
USS Co., Ltd.		47,100		996,406
Zenkoku Hosho Co., Ltd.		23,142		996,852
				22,404,539
Luxembourg | 1.5%
Stabilus SA		14,212		1,278,418
Netherlands | 1.0%
Aalberts Industries NV		17,460		886,523
New Zealand | 0.9%
Z Energy, Ltd.		134,850		730,235
Portugal | 0.8%
NOS SGPS SA		107,788		708,715

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)
Singapore | 2.5%
BOC Aviation, Ltd.		108,900	$	579,897
NetLink NBN Trust		931,200		581,309
XP Power, Ltd.		19,703		912,065
				2,073,271
South Korea | 0.6%
Douzone Bizon Co., Ltd. (*)		15,226		472,868
Spain | 1.1%
Hispania Activos Inmobiliarios SOCIMI SA REIT		49,968		940,143
Sweden | 7.0%
Alimak Group AB		46,847		730,886
Cloetta AB Class B		234,655		849,403
Granges AB		83,571		858,123
Indutrade AB		30,763		836,367
Inwido AB		63,514		648,878
Lifco AB, B Shares		27,206		942,790
Loomis AB, B Shares		22,873		957,780
				5,824,227
Switzerland | 1.3%
Kardex AG		8,638		1,060,573
Taiwan | 2.0%
Elite Material Co., Ltd.		158,000		538,565
Primax Electronics, Ltd.		227,000		601,099
Silicon Motion Technology Corp. ADR		9,805		519,273
				1,658,937
Turkey | 0.2%
Soda Sanayii AS		154,464		205,340
United Kingdom | 18.9%
Arrow Global Group PLC		183,797		983,338
Ascential PLC		164,318		854,684
Auto Trader Group PLC		159,286		756,121

Description	Shares		Fair Value
Burford Capital, Ltd.		42,436	$	659,800
Clinigen Healthcare, Ltd.		88,010		1,220,481
Dignity PLC		32,981		808,790
Equiniti Group PLC		322,033		1,241,384
Hunting PLC (*)		81,815		667,041
John Wood Group PLC		62,793		548,838
Polypipe Group PLC		207,116		1,098,651
Rentokil Initial PLC		182,029		778,777
Rightmove PLC		16,505		1,002,435
RPC Group PLC		125,586		1,485,595
Savills PLC		83,078		1,112,415
Smart Metering Systems PLC		118,901		1,411,457
Victoria PLC (*)		33,700		376,460
Workspace Group PLC REIT		57,113		772,375
				15,778,642
United States | 1.9%
Core Laboratories NV		6,460		707,693
Samsonite International SA		188,100		864,033
				1,571,726
Total Common Stocks (Cost $59,602,863)				80,472,563
Short-Term Investments | 3.6%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $2,991,165)		2,991,165		2,991,165
Total Investments | 99.8% (Cost $62,594,028)			$	83,463,728
Cash and Other Assets in Excess of Liabilities | 0.2%				165,264
Net Assets | 100.0%			$	83,628,992

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

46  Annual Report

Description	Shares		Fair Value
Lazard Equity Franchise Portfolio
Common Stocks | 93.9%
Australia | 3.9%
Computershare, Ltd.		17,571	$	223,321
France | 2.5%
Societe BIC SA		1,265		139,101
Italy | 6.8%
Atlantia SpA		6,684		210,841
Terna SpA		30,307		175,989
				386,830
Japan | 2.0%
Miraca Holdings, Inc.		2,700		115,645
Luxembourg | 4.9%
SES SA (France)		17,779		277,048
United Kingdom | 2.0%
United Utilities Group PLC		10,258		114,811
United States | 71.8%
Alphabet, Inc., Class C (*)		215		224,976
Cisco Systems, Inc.		6,900		264,270
Express Scripts Holding Co. (*)		4,059		302,964
H&R Block, Inc.		9,700		254,334
Intel Corp.		2,552		117,800
International Game Technology PLC		12,290		325,808

Description	Shares		Fair Value
MasterCard, Inc., Class A		708	$	107,163
McKesson Corp.		1,495		233,145
Medtronic PLC		3,000		242,250
Microsoft Corp.		2,478		211,968
Monsanto Co.		1,700		198,526
Nielsen Holdings PLC		5,831		212,249
Omnicom Group, Inc.		3,011		219,291
Oracle Corp.		5,250		248,220
QUALCOMM, Inc.		4,100		262,482
Stericycle, Inc. (*)		4,985		338,930
Tapestry, Inc.		2,500		110,575
Visa, Inc., Class A		1,000		114,020
WW Grainger, Inc.		371		87,649
				4,076,620
Total Common Stocks (Cost $5,168,748)				5,333,376
Short-Term Investments | 3.2%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $180,289)		180,289		180,289
Total Investments | 97.1% (Cost $5,349,037)			$	5,513,665
Cash and Other Assets in Excess of Liabilities | 2.9%				162,848
Net Assets | 100.0%			$	5,676,513

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

Annual Report  47

Description	Shares		Fair Value
Lazard Global Equity Select Portfolio
Common Stocks | 97.3%
Australia | 1.0%
Link Administration Holdings, Ltd.		86,943	$	570,608
Brazil | 1.7%
Ambev SA		89,100		577,491
Cielo SA		62,320		440,052
				1,017,543
Canada | 4.1%
CAE, Inc.		26,115		485,112
Canadian National Railway Co.		11,460		944,971
National Bank of Canada		19,210		958,513
				2,388,596
China | 2.3%
Alibaba Group Holding, Ltd. Sponsored ADR (*)		2,720		469,009
Tencent Holdings, Ltd.		16,620		859,171
				1,328,180
Denmark | 1.2%
Carlsberg A/S, Class B		5,978		716,023
Finland | 0.9%
Sampo Oyj, A Shares		10,004		549,574
France | 1.1%
Ubisoft Entertainment SA (*)		8,640		664,794
Germany | 2.9%
Continental AG		2,871		775,099
Symrise AG		11,005		943,531
				1,718,630
Hong Kong | 1.6%
AIA Group, Ltd.		106,945		912,061
India | 0.6%
Indiabulls Housing Finance, Ltd. GDR		17,955		335,848
Ireland | 1.5%
Shire PLC		16,734		867,965
Israel | 0.8%
Israel Discount Bank, Ltd., Class A (*)		158,309		459,843

Description	Shares		Fair Value
Japan | 7.3%
AEON Financial Service Co., Ltd.		29,325	$	681,020
Daiwa House Industry Co., Ltd.		21,785		836,914
Kao Corp.		8,800		595,212
Ryohin Keikaku Co., Ltd.		3,160		983,883
TechnoPro Holdings, Inc.		13,900		755,100
Yamaha Corp.		12,800		469,485
				4,321,614
Netherlands | 1.6%
Wolters Kluwer NV		18,484		962,531
Singapore | 1.0%
Oversea-Chinese Banking Corp., Ltd.		66,100		610,696
South Africa | 0.8%
Sanlam, Ltd.		71,115		499,673
Sweden | 2.7%
Assa Abloy AB, Class B		23,747		492,760
Hexagon AB, B Shares		12,371		618,703
Nordea Bank AB		41,882		506,879
				1,618,342
Switzerland | 0.8%
Julius Baer Group, Ltd.		8,161		498,939
Taiwan | 1.0%
Taiwan Semiconductor Manufacturing
Co., Ltd. Sponsored ADR		14,640		580,476
United Kingdom | 10.8%
Ashtead Group PLC		28,853		770,026
British American Tobacco PLC		8,347		563,343
Coca-Cola European Partners PLC		16,115		642,183
Compass Group PLC		33,015		713,882
Diageo PLC		26,116		955,802
Prudential PLC		28,119		722,944
RELX NV		41,236		947,969
Rio Tinto PLC		9,000		474,994
Unilever PLC		9,924		549,786
				6,340,929
United States | 51.6%
Accenture PLC, Class A		6,840		1,047,136
Alphabet, Inc., Class A (*)		1,449		1,526,377
Aon PLC		6,525		874,350
Apple, Inc.		6,347		1,074,103

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

48  Annual Report

Description	Shares		Fair Value
Lazard Global Equity Select Portfolio (concluded)
Applied Materials, Inc.		7,260	$	371,131
AutoZone, Inc. (*)		889		632,408
Biogen, Inc. (*)		2,295		731,118
Cisco Systems, Inc.		16,750		641,525
Citigroup, Inc.		12,810		953,192
Comerica, Inc.		6,970		605,066
Commerce Bancshares, Inc.		7,023		392,136
Crown Holdings, Inc. (*)		9,220		518,625
DXC Technology Co.		5,355		508,190
Eaton Corp. PLC		7,750		612,327
eBay, Inc. (*)		8,220		310,223
Five Below, Inc. (*)		7,865		521,607
Honeywell International, Inc.		6,893		1,057,110
Intercontinental Exchange, Inc.		14,320		1,010,419
IQVIA Holdings, Inc. (*)		8,530		835,087
Johnson Controls International PLC		15,700		598,327
Medtronic PLC		8,025		648,019
Microsoft Corp.		14,940		1,277,968
Molson Coors Brewing Co., Class B		7,574		621,598
Monsanto Co.		4,680		546,530
Motorola Solutions, Inc.		6,160		556,494
Rockwell Automation, Inc.		4,795		941,498
S&P Global, Inc.		5,755		974,897
Schlumberger, Ltd.		11,826		796,954
Snap-on, Inc.		2,855		497,627

Description	Shares		Fair Value
Starbucks Corp.		5,175	$	297,200
The Charles Schwab Corp.		17,815		915,157
The Coca-Cola Co.		28,685		1,316,068
The J.M. Smucker Co.		5,350		664,684
Thermo Fisher Scientific, Inc.		4,450		844,966
United Technologies Corp.		6,619		844,386
Vantiv, Inc., Class A (*)		15,205		1,118,328
Visa, Inc., Class A		8,408		958,680
Welbilt, Inc. (*)		22,810		536,263
Zoetis, Inc.		16,537		1,191,325
				30,369,099
Total Common Stocks (Cost $47,779,556)				57,331,964
Short-Term Investments | 3.1%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $1,831,358)		1,831,358		1,831,358
Total Investments | 100.4% (Cost $49,610,914)			$	59,163,322
Liabilities in Excess of Cash and Other Assets | (0.4)%				(250,878	)
Net Assets | 100.0%			$	58,912,444

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

Annual Report  49

Description	Shares		Fair Value
Lazard Global Strategic Equity Portfolio
Common Stocks | 99.3%
Canada | 1.3%
Toromont Industries, Ltd.		856	$	37,522
China | 2.6%
Alibaba Group Holding, Ltd. Sponsored ADR (*)		434		74,835
Denmark | 1.8%
AP Moller-Maersk A/S, Class B		13		22,654
Carlsberg A/S, Class B		242		28,986
				51,640
Finland | 2.1%
Sampo Oyj, A Shares		1,130		62,077
France | 4.2%
Ubisoft Entertainment SA (*)		816		62,786
Vivendi SA		2,240		60,234
				123,020
Germany | 2.1%
OSRAM Licht AG		372		33,306
Siemens AG		199		27,611
				60,917
Greece | 0.0%
OPAP SA		12		151
Hong Kong | 3.8%
AIA Group, Ltd.		7,200		61,404
Techtronic Industries Co., Ltd.		7,500		48,884
				110,288
Indonesia | 0.3%
PT Media Nusantara Citra Tbk		94,600		8,959
Ireland | 1.7%
Shire PLC		968		50,209
Israel | 1.5%
Israel Discount Bank, Ltd., Class A (*)		14,913		43,318

Description	Shares		Fair Value
Japan | 6.2%
Daiwa House Industry Co., Ltd.		1,800	$	69,150
Don Quijote Holdings Co., Ltd.		800		41,822
TechnoPro Holdings, Inc.		600		32,594
Tokyo Electron, Ltd.		200		35,826
				179,392
Netherlands | 1.0%
ABN AMRO Group NV		863		27,770
New Zealand | 1.0%
Trade Me Group, Ltd.		8,312		28,568
Singapore | 0.7%
NetLink NBN Trust		34,100		21,287
South Africa | 3.9%
Naspers, Ltd., N Shares		243		67,707
PSG Group, Ltd.		711		15,514
Sanlam, Ltd.		4,364		30,663
				113,884
Switzerland | 1.5%
Partners Group Holding AG		62		42,485
Taiwan | 2.0%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		1,431		56,739
United Kingdom | 10.1%
British American Tobacco PLC		1,180		79,639
Coca-Cola European Partners PLC		1,400		55,765
Dignity PLC		1,102		27,024
Informa PLC		6,589		64,096
London Stock Exchange Group PLC		582		29,800
Prudential PLC		1,411		36,277
				292,601
United States | 51.5%
Accenture PLC, Class A		428		65,523
Activision Blizzard, Inc.		921		58,318
Alphabet, Inc., Class A (*)		123		129,568
Aon PLC		473		63,382
Bank of America Corp.		2,041		60,250
Biogen, Inc. (*)		180		57,343

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

50  Annual Report

Description	Shares		Fair Value
Lazard Global Strategic Equity Portfolio (concluded)
Comerica, Inc.		710	$	61,635
Cypress Semiconductor Corp.		1,983		30,221
eBay, Inc. (*)		791		29,852
EOG Resources, Inc.		435		46,941
Halliburton Co.		686		33,525
Intercontinental Exchange, Inc.		974		68,725
IQVIA Holdings, Inc. (*)		372		36,419
Medtronic PLC		307		24,790
Microsoft Corp.		1,073		91,784
Molson Coors Brewing Co., Class B		516		42,348
Palo Alto Networks, Inc. (*)		274		39,714
Raytheon Co.		332		62,366
Rockwell Automation, Inc.		75		14,726
S&P Global, Inc.		351		59,459
Starbucks Corp.		490		28,141
The Coca-Cola Co.		1,719		78,868
The J.M. Smucker Co.		250		31,060
Union Pacific Corp.		352		47,203
Valvoline, Inc.		996		24,960

Description	Shares		Fair Value
Vantiv, Inc., Class A (*)		408	$	30,008
Visa, Inc., Class A		679		77,420
Welbilt, Inc. (*)		2,347		55,178
Zoetis, Inc.		609		43,872
				1,493,599
Total Common Stocks (Cost $2,442,126)				2,879,261
Short-Term Investments | 0.0%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $607)		607		607
Total Investments | 99.3% (Cost $2,442,733)			$	2,879,868
Cash and Other Assets in Excess of Liabilities | 0.7%				19,297
Net Assets | 100.0%			$	2,899,165

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

Annual Report  51

Description	Shares		Fair Value
Lazard Managed Equity Volatility Portfolio
Common Stocks | 96.1%
Australia | 6.1%
AGL Energy, Ltd.		605	$	11,482
Aristocrat Leisure, Ltd.		1,650		30,406
Cochlear, Ltd.		182		24,297
Computershare, Ltd.		956		12,150
CSL, Ltd.		495		54,480
Investa Office Fund REIT		2,906		10,309
Newcrest Mining, Ltd.		1,087		19,314
Platinum Asset Management, Ltd.		1,217		7,303
Qantas Airways, Ltd.		3,392		13,316
Sandfire Resources NL		2,040		10,960
Stockland REIT		14,462		50,585
The Star Entertainment Group, Ltd.		2,308		10,912
Woodside Petroleum, Ltd.		726		18,764
				274,278
Belgium | 0.3%
Proximus SADP		436		14,311
Canada | 7.0%
Alimentation Couche-Tard, Inc., Class B		361		18,837
ARC Resources, Ltd.		730		8,566
BCE, Inc.		273		13,114
Canadian Imperial Bank of Commerce		96		9,359
CI Financial Corp.		1,086		25,720
Colliers International Group, Inc.		225		13,580
Crescent Point Energy Corp.		1,262		9,618
Detour Gold Corp. (*)		976		11,476
Dollarama, Inc.		166		20,740
Husky Energy, Inc. (*)		2,441		34,469
IAMGOLD Corp. (*)		1,909		11,132
Kirkland Lake Gold, Ltd.		588		9,014
Metro, Inc.		325		10,407
Royal Bank of Canada		242		19,762
Suncor Energy, Inc.		1,132		41,561
The Toronto-Dominion Bank		206		12,070
Thomson Reuters Corp.		1,066		46,465
				315,890
Denmark | 1.2%
Danske Bank A/S		291		11,313
Jyske Bank A/S		219		12,428
Novo Nordisk A/S, Class B		535		28,754
				52,495

Description	Shares		Fair Value
France | 0.7%
Air France-KLM (*)		787	$	12,795
TOTAL SA		364		20,084
				32,879
Germany | 1.2%
Covestro AG		132		13,573
Deutsche Lufthansa AG		797		29,298
Rheinmetall AG		96		12,190
				55,061
Hong Kong | 2.6%
CK Asset Holdings, Ltd.		1,000		8,741
Jardine Matheson Holdings, Ltd.		100		6,071
Kerry Properties, Ltd.		1,500		6,748
Sun Hung Kai Properties, Ltd.		1,000		16,658
Swire Pacific, Ltd., Class A		1,000		9,256
Techtronic Industries Co., Ltd.		2,500		16,294
The Wharf Holdings, Ltd.		3,000		10,374
Wharf Real Estate Investment Co., Ltd. (*)		1,959		13,038
Wheelock & Co., Ltd.		2,000		14,290
Yue Yuen Industrial Holdings, Ltd.		4,000		15,696
				117,166
Israel | 0.5%
Israel Discount Bank, Ltd., Class A (*)		3,335		9,687
Nice, Ltd.		115		10,497
				20,184
Japan | 10.8%
Amano Corp.		500		13,079
ANA Holdings, Inc.		200		8,347
Asahi Glass Co., Ltd.		300		12,976
Asahi Kasei Corp.		1,300		16,747
Central Japan Railway Co.		100		17,896
Daito Trust Construction Co., Ltd.		100		20,370
Daiwa House Industry Co., Ltd.		500		19,209
East Japan Railway Co.		200		19,498
Kaken Pharmaceutical Co., Ltd.		200		10,322
Kamigumi Co., Ltd.		700		15,471
Kao Corp.		200		13,528
KDDI Corp.		600		14,938
Kuraray Co., Ltd.		500		9,437
Maeda Corp.		1,000		13,752
Maruha Nichiro Corp.		300		9,025
Megmilk Snow Brand Co., Ltd.		400		11,824
Morinaga Milk Industry Co., Ltd.		200		9,054
MS&AD Insurance Group Holdings, Inc.		300		10,158
Nagoya Railroad Co., Ltd.		400		10,067
Nichirei Corp.		500		13,808
Nippon Telegraph & Telephone Corp.		300		14,117

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

52  Annual Report

Description	Shares		Fair Value
Lazard Managed Equity Volatility Portfolio (continued)
Nishimatsu Construction Co., Ltd.		400	$	11,221
NTT DOCOMO, Inc.		400		9,449
Obayashi Corp.		800		9,674
Oji Holdings Corp.		2,000		13,295
Penta-Ocean Construction Co., Ltd.		1,700		12,677
Prima Meat Packers, Ltd.		2,000		14,653
Rengo Co., Ltd.		2,200		16,013
Shionogi & Co., Ltd.		200		10,813
Sompo Holdings, Inc.		500		19,277
Start Today Co., Ltd.		300		9,123
Taisei Corp.		200		9,948
Teijin, Ltd.		500		11,142
The Shizuoka Bank, Ltd.		1,000		10,334
Tokyo Gas Co., Ltd.		600		13,702
Toyobo Co., Ltd.		600		10,890
West Japan Railway Co.		100		7,295
Yaskawa Electric Corp.		300		13,109
				486,238
Luxembourg | 0.3%
B&M European Value Retail SA		2,031		11,582
Malta | 0.3%
Kindred Group PLC		876		12,530
Netherlands | 1.0%
Royal Dutch Shell PLC, A Shares		1,366		45,729
New Zealand | 0.6%
Fisher & Paykel Healthcare Corp., Ltd., Class C		1,141		11,570
Spark New Zealand, Ltd.		5,647		14,524
				26,094
Norway | 3.2%
Aker BP ASA		950		23,356
Leroy Seafood Group ASA		1,865		9,989
Marine Harvest ASA		755		12,781
Statoil ASA		2,805		60,005
Telenor ASA		1,640		35,130
				141,261
Singapore | 1.8%
CapitaLand, Ltd.		4,000		10,539
Singapore Airlines, Ltd.		2,500		19,913
UOL Group, Ltd.		1,000		6,630
Venture Corp., Ltd.		2,800		42,787
				79,869

Description	Shares		Fair Value
Spain | 0.1%
Corporacion Financiera Alba SA		82	$	4,690
Sweden | 1.2%
Axfood AB		600		11,558
Electrolux AB, Series B		365		11,739
Hennes & Mauritz AB, B Shares		433		8,922
Svenska Cellulosa AB SCA, Class B		2,249		23,128
				55,347
Switzerland | 1.3%
Partners Group Holding AG		20		13,704
Roche Holding AG		127		32,124
Swiss Life Holding AG		33		11,680
				57,508
United Kingdom | 3.0%
Admiral Group PLC		619		16,693
Compass Group PLC		1,015		21,947
Hargreaves Lansdown PLC		433		10,533
International Consolidated Airlines Group SA		1,273		11,165
Moneysupermarket.com Group PLC		2,174		10,443
Persimmon PLC		282		10,414
Smith & Nephew PLC		807		13,964
SSE PLC		1,544		27,506
Wm Morrison Supermarkets PLC		3,751		11,132
				133,797
United States | 52.9%
3M Co.		277		65,197
Accenture PLC, Class A		312		47,764
Advanced Energy Industries, Inc. (*)		136		9,177
Ally Financial, Inc.		469		13,676
Altria Group, Inc.		326		23,280
AMC Networks, Inc., Class A (*)		204		11,032
Amdocs, Ltd.		198		12,965
Ameren Corp.		1,060		62,529
American Axle & Manufacturing Holdings, Inc. (*)		829		14,118
American Electric Power Co., Inc.		208		15,303
Anthem, Inc.		58		13,051
Aon PLC		392		52,528
AT&T, Inc.		1,648		64,074
Atkore International Group, Inc. (*)		589		12,634
BGC Partners, Inc., Class A		1,026		15,503
Bloomin’ Brands, Inc.		502		10,713
Campbell Soup Co.		424		20,399
Cardtronics PLC, Class A (*)		662		12,260
Carnival Corp.		487		32,322

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

Annual Report  53

Description	Shares		Fair Value
Lazard Managed Equity Volatility Portfolio (concluded)
Carnival PLC		376	$	24,722
Cigna Corp.		137		27,823
Comcast Corp., Class A		913		36,566
Consolidated Edison, Inc.		548		46,553
Costco Wholesale Corp.		140		26,057
Crown Holdings, Inc. (*)		219		12,319
Cummins, Inc.		86		15,191
Darden Restaurants, Inc.		499		47,914
Deckers Outdoor Corp. (*)		138		11,074
Discovery Communications, Inc. (*)		523		11,072
Eli Lilly & Co.		223		18,835
Eversource Energy		558		35,254
Exelon Corp.		216		8,513
F5 Networks, Inc. (*)		176		23,095
Facebook, Inc., Class A (*)		68		11,999
Fifth Third Bancorp		484		14,685
Fiserv, Inc. (*)		246		32,258
Genpact, Ltd.		466		14,791
Hanesbrands, Inc.		523		10,936
Hasbro, Inc.		97		8,816
HCA Healthcare, Inc. (*)		221		19,413
Humana, Inc.		42		10,419
Huntington Ingalls Industries, Inc.		45		10,606
ICON PLC (*)		132		14,804
Intel Corp.		672		31,019
Intuit, Inc.		118		18,618
Johnson & Johnson		367		51,277
Kimberly-Clark Corp.		339		40,904
Lockheed Martin Corp.		97		31,142
Lowe’s Cos., Inc.		296		27,510
Marsh & McLennan Cos., Inc.		430		34,998
Masimo Corp. (*)		110		9,328
MetLife, Inc.		158		7,988
MGM Growth Properties LLC, REIT Class A		562		16,382
Michael Kors Holdings, Ltd. (*)		179		11,268
Nasdaq, Inc.		141		10,833
NIKE, Inc., Class B		145		9,070
Northrop Grumman Corp.		142		43,581
Park Hotels & Resorts, Inc. REIT		785		22,569
Paychex, Inc.		552		37,580
PepsiCo, Inc.		521		62,478
PG&E Corp.		721		32,322
Pinnacle West Capital Corp.		181		15,418
Pioneer Natural Resources Co.		73		12,618

Description	Shares		Fair Value
PNM Resources, Inc.		240	$	9,708
Quest Diagnostics, Inc.		135		13,296
Raytheon Co.		73		13,713
Regions Financial Corp.		643		11,111
Republic Services, Inc.		305		20,621
Ross Stores, Inc.		714		57,298
Royal Caribbean Cruises, Ltd.		88		10,497
Silgan Holdings, Inc.		888		26,098
Simon Property Group, Inc. REIT		375		64,402
Skyworks Solutions, Inc.		120		11,394
Starbucks Corp.		460		26,418
Sysco Corp.		1,053		63,949
The Boeing Co.		100		29,491
The Estee Lauder Cos., Inc., Class A		349		44,407
The Gap, Inc.		346		11,785
The Procter & Gamble Co.		99		9,096
The TJX Cos., Inc.		802		61,321
The Toro Co.		611		39,855
Time Warner, Inc.		148		13,538
UnitedHealth Group, Inc.		212		46,737
Validus Holdings, Ltd.		478		22,428
Verizon Communications, Inc.		346		18,314
Versum Materials, Inc.		313		11,847
VMware, Inc., Class A (*)		81		10,151
Wal-Mart Stores, Inc.		521		51,449
Waste Management, Inc.		790		68,177
WEC Energy Group, Inc.		155		10,297
Williams-Sonoma, Inc.		198		10,237
Xcel Energy, Inc.		1,303		62,687
				2,379,465
Total Common Stocks (Cost $3,853,718)				4,316,374
Short-Term Investments | 4.4%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $199,694)		199,694		199,694
Total Investments | 100.5% (Cost $4,053,412)			$	4,516,068
Liabilities in Excess of Cash and Other Assets | (0.5)%				(21,163	)
Net Assets | 100.0%			$	4,494,905

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, 2017

(*) Non-income producing security.

Security Abbreviations:

ADR	—	American Depositary Receipt
GDR	—	Global Depositary Receipt
REIT	—	Real Estate Investment Trust

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

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	1.1	%	0.7	%	2.0	%	4.3	%	0.3	%
Air Freight & Logistics	1.6		1.1		—		—		0.2
Airlines	1.3		1.2		—		—		3.3
Auto Components	3.8		4.4		8.0		1.4		2.3
Automobiles	1.8		—		—		—		2.0
Banks	9.0		7.4		6.6		7.5		10.9
Beverages	4.7		3.4		4.0		7.0		0.5
Biotechnology	2.3		2.0		5.1		2.6		2.2
Building Products	1.8		2.0		—		1.5		1.6
Capital Markets	1.2		0.1		—		3.4		2.8
Chemicals	3.0		—		—		—		3.4
Commercial Services & Suppliers	—		—		—		—		—
Construction & Engineering	2.5		2.0		4.1		—		1.9
Consumer Finance	—		—		—		1.6		—
Containers & Packaging	—		—		2.7		—		0.2
Diversified Consumer Services	—		—		—		—		—
Diversified Financial Services	—		—		—		0.9		1.0
Diversified Telecommunication Services	3.9		3.0		—		—		2.4
Electric Utilities	1.5		1.3		—		—		1.4
Electrical Equipment	—		0.8		—		—		0.8
Electronic Equipment, Instruments & Components	—		—		—		1.1		1.6
Energy Equipment & Services	0.7		—		—		—		—
Equity Real Estate Investment Trusts (REITs)	—		—		—		—		0.4
Food & Staples Retailing	—		—		—		—		0.5
Food Products	—		—		—		1.1		4.7
Gas Utilities	—		—		—		—		—
Health Care Equipment & Supplies	2.0		2.6		4.3		1.0		1.6
Health Care Providers & Services	—		—		—		1.1		0.1
Health Care Technology	—		—		—		—		—
Hotels, Restaurants & Leisure	—		1.9		3.1		1.7		2.9
Household Durables	1.5		1.2		—		—		3.5
Industrial Conglomerates	—		1.3		—		—		1.2
Insurance	7.0		9.9		7.5		9.7		5.6
Internet & Catalog Retail	—		—		—		—		0.3
Internet Software & Services	—		3.9		5.3		2.5		0.4
IT Services	3.1		3.5		6.3		2.9		0.9
Leisure Products	0.7		—		—		2.0		—
Life Sciences Tools & Services	—		—		—		—		0.4
Machinery	2.2		2.7		3.2		8.0		1.8
Marine	1.3		—		—		—		—
Media	1.0		—		2.0		7.7		—
Metals & Mining	2.5		1.9		3.0		1.0		2.0
Multiline Retail	2.7		2.0		—		3.5		0.5
Multi-Utilities	—		—		—		—		1.1
Oil, Gas & Consumable Fuels	7.0		5.2		3.9		4.8		6.8
Paper & Forest Products	—		—		—		—		—
Personal Products	3.0		3.0		—		1.4		3.3

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

56   Annual Report

Lazard International Small Cap Equity Portfolio		Lazard Equity Franchise Portfolio		Lazard Global Equity Select Portfolio		Lazard Global Strategic Equity Portfolio		Lazard Managed Equity Volatility Portfolio
—	%	—	%	2.3	%	2.1	%	2.9	%
—		—		—		—		—
—		—		—		—		2.1
1.2		—		1.3		—		0.3
—		—		7.6		6.7		2.5
—		—		8.2		7.1		1.4
—		—		2.7		3.7		1.2
—		—		1.8		—		0.3
3.5		—		5.8		6.9		2.9
4.2		3.5		2.5		0.9		1.4
0.2		8.4		—		—		2.0
2.1		4.7		2.0		1.4		0.5
—		—		—		—		1.3
1.2		—		1.2		—		0.3
2.8		—		0.9		—		1.2
1.0		4.5		—		0.9		—
4.0		—		—		0.5		0.1
3.0		—		—		0.7		3.9
—		3.1		—		—		4.6
1.1		—		2.6		1.7		0.3
6.0		—		1.1		—		1.5
2.3		—		1.4		1.2		—
2.0		—		—		—		3.7
—		—		—		—		4.3
2.0		—		1.1		1.1		2.3
—		—		—		—		0.3
—		4.3		1.1		0.9		1.3
1.1		11.5		—		—		2.9
1.6		5.7		1.7		1.0		5.1
3.6		—		—		1.7		0.9
1.0		—		—		—		1.1
—		—		1.8		0.9		1.9
1.2		—		6.0		8.8		3.9
—		—		—		1.0		0.2
5.7		4.0		5.4		8.1		0.5
1.5		7.8		7.9		6.0		3.8
—		—		0.8		—		0.2
1.5		—		2.9		1.3		0.3
8.9		—		1.7		1.9		1.2
1.6		—		—		0.8		—
6.3		8.7		—		6.9		1.6
1.0		—		0.8		—		1.4
1.1		—		1.7		1.4		0.7
—		—		—		—		2.9
0.9		—		—		1.6		6.1
—		—		—		—		0.8
—		—		1.9		—		1.3

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
Pharmaceuticals		3.1	%		2.2	%		—	%		—	%		8.6	%
Professional Services		4.2			3.3			5.5			2.1			1.9
Real Estate Management & Development		2.6			2.7			—			2.7			4.4
Road & Rail		1.0			1.0			—			—			0.4
Semiconductors & Semiconductor Equipment		1.5			4.1			4.1			3.7			1.8
Software		2.6			2.7			2.8			0.7			1.6
Specialty Retail		0.8			0.7			—			—			0.3
Technology Hardware, Storage & Peripherals		—			2.4			4.0			—			1.4
Textiles, Apparel & Luxury Goods		—			0.8			—			1.5			—
Thrifts & Mortgage Finance		—			—			—			1.1			—
Tobacco		2.8			2.4			4.9			3.4			0.2
Trading Companies & Distributors		3.0			2.4			—			1.3			0.9
Transportation Infrastructure		—			—			—			—			—
Water Utilities		—			0.8			1.9			—			—
Wireless Telecommunication Services		2.2			2.5			3.6			—			1.7
Subtotal		98.0			96.5			97.9			96.2			100.0
Short-Term Investments		2.2			3.1			2.0			4.1			0.7
Total Investments		100.2	%		99.6	%		99.9	%		100.3	%		100.7	%

† 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 Equity Franchise Portfolio		Lazard Global Equity Select Portfolio		Lazard Global Strategic Equity Portfolio		Lazard Managed Equity Volatility Portfolio
—	%	—	%	2.0	%	1.5	%	3.4	%
2.8		3.7		4.5		1.1		—
9.1		—		1.4		2.4		3.3
—		—		1.6		1.6		1.2
0.6		6.7		1.6		4.2		1.4
3.4		8.1		3.3		7.3		0.9
2.0		—		2.0		—		3.9
0.7		—		1.8		—		—
2.3		1.9		—		—		1.3
—		—		0.6		—		—
—		—		1.0		2.7		0.5
1.7		1.5		1.3		1.3		—
—		3.7		—		—		0.3
—		2.1		—		—		—
—		—		—		—		0.5
96.2		93.9		97.3		99.3		96.1
3.6		3.2		3.1		—		4.4
99.8	%	97.1	%	100.4	%	99.3	%	100.5	%

Annual Report  59

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2017	Lazard US Equity Concentrated Portfolio		Lazard US Strategic Equity Portfolio
ASSETS
Investments in securities, at fair value	$	1,585,472,270	$	85,285,980
Cash		—		—
Foreign currency, at fair value		—		—
Receivables for:
Dividends		2,054,498		65,176
Capital stock sold		1,622,611		20,058
Investments sold		9,725,222		124,285
Prepaid expenses		—		4,310
Total assets		1,598,874,601		85,499,809
LIABILITIES
Payables for:
Management fees		951,219		73,020
Accrued custodian fees		129,036		36,753
Accrued distribution fees		18,881		221
Accrued professional services		23,141		20,967
Investments purchased		—		—
Capital stock redeemed		1,111,020		1
Other accrued expenses and payables		97,137		4,199
Total liabilities		2,330,434		135,161
Net assets	$	1,596,544,167	$	85,364,648
NET ASSETS
Paid in capital	$	1,418,408,758	$	69,252,578
Undistributed (Distributions in excess of) net investment income (loss)		29,110		—
Accumulated net realized gain (loss)		31,435,964		1,956,492
Net unrealized appreciation (depreciation) on:
Investments		146,670,335		14,155,578
Foreign currency translations		—		—
Net assets	$	1,596,544,167	$	85,364,648
Institutional Shares
Net assets	$	1,508,580,763	$	72,957,702
Shares of capital stock outstanding*		98,527,318		5,870,874
Net asset value, offering and redemption price per share	$	15.31	$	12.43
Open Shares
Net assets	$	87,602,853	$	1,013,206
Shares of capital stock outstanding*		5,681,791		81,216
Net asset value, offering and redemption price per share	$	15.42	$	12.48
R6 Shares
Net assets	$	360,551	$	11,393,740
Shares of capital stock outstanding*		23,498		916,579
Net asset value, offering and redemption price per share	$	15.34	$	12.43
Cost of investments in securities	$	1,438,801,935	$	71,130,402
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
$	196,567,315		$	3,810,294,391		$	56,549,249		$	69,607,267
	5,699,484			—			—			—
	—			128,234			1,996			1
	208,648			5,298,722			70,102			131,568
	185,138			4,472,503			354,242			24,008
	504,835			1,925			8,749			45,875
	1,805			—			7,823			7,279
	203,167,225			3,820,195,775			56,992,161			69,815,998
	127,760			2,433,096			75,928			92,828
	41,819			431,128			42,385			34,545
	5,443			42,880			590			46
	21,083			29,007			33,027			22,457
	—			1,454,661			21,959			1,210
	18,451			11,513,332			54,557			1,886
	4,481			271,317			3,966			3,402
	219,037			16,175,421			232,412			156,374
$	202,948,188		$	3,804,020,354		$	56,759,749		$	69,659,624
$	173,758,470		$	3,281,865,291		$	49,595,631		$	63,479,586
	(191,969	)		12,884,788			572,890			(37,517	)
	2,711,788			(66,369,802	)		(2,368,443	)		(739,711	)
	26,669,899			575,563,934			8,958,904			6,956,316
	—			76,143			767			950
$	202,948,188		$	3,804,020,354		$	56,759,749		$	69,659,624
$	176,975,304		$	2,835,261,612		$	53,928,849		$	69,440,076
	12,081,329			144,593,511			4,895,525			6,658,885
$	14.65		$	19.61		$	11.02		$	10.43
$	25,972,884		$	275,014,282		$	2,830,900		$	219,548
	1,893,205			13,869,285			256,624			21,011
$	13.72		$	19.83		$	11.03		$	10.45
	—		$	693,744,460			—			—
	—			35,418,952			—			—
	—		$	19.59			—			—
$	169,897,416		$	3,234,730,457		$	47,590,345		$	62,650,951
$	—		$	128,229		$	1,996		$	1

Annual Report   61

December 31, 2017	Lazard International Strategic Equity Portfolio			Lazard International Equity Advantage Portfolio
ASSETS
Investments in securities, at fair value	$	7,259,386,754		$	2,642,747
Foreign currency, at fair value		14,046,174			238
Receivables for:
Dividends		13,233,472			4,131
Capital stock sold		7,539,239			—
Investments sold		2,476,240			—
Amount due from Investment Manager (Note 3)		—			41,966
Deferred offering costs (Note 2(f))		—			—
Prepaid expenses		—			5,444
Total assets		7,296,681,879			2,694,526
LIABILITIES
Foreign currency due to custodian		—			—
Payables for:
Management fees		4,552,263			—
Accrued custodian fees		839,866			39,723
Accrued distribution fees		257,238			24
Accrued professional services		32,722			28,717
Investments purchased		28,677,967			—
Capital stock redeemed		22,007,180			—
Line of credit outstanding		—			—
Other accrued expenses and payables		1,885,975			2,146
Total liabilities		58,253,211			70,610
Net assets	$	7,238,428,668		$	2,623,916
NET ASSETS
Paid in capital	$	6,090,437,629		$	2,352,746
Undistributed (Distributions in excess of) net investment income (loss)		(9,161,873	)		(3,505	)
Accumulated net realized gain (loss)		(130,543,836	)		(59,483	)
Net unrealized appreciation (depreciation) on:
Investments		1,287,811,094			334,100
Foreign currency translations		(114,346	)		58
Net assets	$	7,238,428,668		$	2,623,916
Institutional Shares
Net assets	$	5,911,184,465		$	2,508,171
Shares of capital stock outstanding*		376,589,551			229,680
Net asset value, offering and redemption price per share	$	15.70		$	10.92
Open Shares
Net assets	$	1,216,860,925		$	115,745
Shares of capital stock outstanding*		76,885,738			10,599
Net asset value, offering and redemption price per share	$	15.83		$	10.92
R6 Shares
Net assets	$	110,383,278			—
Shares of capital stock outstanding*		7,026,668			—
Net asset value, offering and redemption price per share	$	15.71			—
Cost of investments in securities	$	5,970,125,133		$	2,308,647
Cost of foreign currency	$	14,102,039		$	235

* $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 Equity Franchise Portfolio			Lazard Global Equity Select Portfolio			Lazard Global Strategic Equity Portfolio			Lazard Managed Equity Volatility Portfolio
$	83,463,728		$	5,513,665		$	59,163,322		$	2,879,868		$	4,516,068
	75,747			—			33,848			—			1,511
	107,956			9,683			57,785			6,203			5,579
	71,699			45,000			97,586			5,000			615
	141,848			—			433			277,629			1
	—			65,742			—			5,320			36,639
	—			71,087			—			—			—
	6,722			—			7,887			5,140			5,381
	83,867,700			5,705,177			59,360,861			3,179,160			4,565,794
	—			—			—			110,881			—
	59,716			—			58,348			—			—
	47,469			11,377			37,888			28,862			41,805
	8,813			19			149			29			66
	28,698			16,190			22,997			22,651			26,411
	88,058			—			312,556			4,143			418
	960			—			12,926			—			—
	—			—			—			111,000			—
	4,994			1,078			3,553			2,429			2,189
	238,708			28,664			448,417			279,995			70,889
$	83,628,992		$	5,676,513		$	58,912,444		$	2,899,165		$	4,494,905
$	67,012,231		$	5,476,499		$	49,310,593		$	1,957,300		$	4,017,403
	560,590			(907	)		(159,545	)		(36,625	)		(844	)
	(4,815,011	)		36,257			209,017			540,661			15,661
	20,869,700			164,628			9,552,408			437,135			462,656
	1,482			36			(29	)		694			29
$	83,628,992		$	5,676,513		$	58,912,444		$	2,899,165		$	4,494,905
$	41,267,011		$	5,565,604		$	58,201,496		$	2,750,453		$	4,179,728
	2,993,040			536,277			4,464,645			1,190,583			361,300
$	13.79		$	10.38		$	13.04		$	2.31		$	11.57
$	42,361,981		$	110,909		$	710,948		$	148,712		$	315,177
	3,064,171			10,687			54,514			64,619			27,255
$	13.82		$	10.38		$	13.04		$	2.30		$	11.56
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
$	62,594,028		$	5,349,037		$	49,610,914		$	2,442,733		$	4,053,412
$	74,908		$	—		$	33,932		$	(110,452	)	$	1,503

Annual Report  63

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2017	Lazard US Equity Concentrated Portfolio			Lazard US Strategic Equity Portfolio
Investment Income (Loss)
Income
Dividends*	$	25,919,185		$	1,572,789
Expenses
Management fees (Note 3)		10,957,784			593,365
Distribution fees (Open Shares)		253,005			3,038
Custodian fees		194,552			63,284
Administration fees		217,047			29,104
Shareholders’ reports		81,616			7,934
Shareholders’ meeting		50,792			5,540
Directors’ fees and expenses		55,344			7,991
Professional services		65,044			39,409
Shareholders’ services		61,925			41,592
Registration fees		78,980			34,562
Amortization of offering costs (Note 2(f))		6,440			—
Other^		40,870			8,695
Total gross expenses		12,063,399			834,514
Management fees waived and expenses reimbursed		(15,448	)		(194,700	)
Administration and shareholders’ services fees waived		(4,050	)		—
Total net expenses		12,043,901			639,814
Net investment income (loss)		13,875,284			932,975
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Investments		142,271,974			8,352,420
Foreign currency transactions		—			—
Total net realized gain (loss) on investments and foreign currency transactions		142,271,974			8,352,420
Net change in unrealized appreciation (depreciation) on:
Investments		63,020,970			5,046,521
Foreign currency translations		—			—
Total net change in unrealized appreciation (depreciation) on investments and foreign currency translations		63,020,970			5,046,521
Net realized and unrealized gain (loss) on investments and foreign currency transactions		205,292,944			13,398,941
Net increase (decrease) in net assets resulting from operations	$	219,168,228		$	14,331,916
* Net of foreign withholding taxes of	$	—		$	1,641
^ Includes interest on line of credit of	$	—		$	89

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
$	2,634,744	$	82,520,970		$	1,057,824		$	1,115,247
	1,565,637		25,806,473			341,063			418,598
	72,849		1,923,688			6,281			501
	70,041		671,871			95,149			71,395
	44,901		395,077			20,974			19,512
	11,675		326,362			7,283			3,766
	12,303		192,795			5,624			2,654
	12,131		110,667			6,309			6,105
	41,825		156,890			57,395			40,690
	31,056		95,208			27,585			26,473
	34,245		115,348			38,567			41,538
	—		—			—			—
	11,013		76,038			6,676			6,770
	1,907,676		29,870,417			612,906			638,002
	—		(58,141	)		(127,715	)		(148,593	)
	—		—			—			—
	1,907,676		29,812,276			485,191			489,409
	727,068		52,708,694			572,633			625,838
	25,902,875		3,989,636			967,049			1,625,103
	—		893,671			431			(9,245	)
	25,902,875		4,883,307			967,480			1,615,858
	267,481		643,049,375			9,378,779			6,673,245
	—		129,036			3,866			1,260
	267,481		643,178,411			9,382,645			6,674,505
	26,170,356		648,061,718			10,350,125			8,290,363
$	26,897,424	$	700,770,412		$	10,922,758		$	8,916,201
$	—	$	9,241,184		$	122,428		$	131,564
$	—	$	—		$	—		$	268

Annual Report  65

For the Year Ended December 31, 2017	Lazard International Strategic Equity Portfolio			Lazard International Equity Advantage Portfolio
Investment Income (Loss)
Income
Dividends*	$	138,374,732		$	66,829
Expenses
Management fees (Note 3)		51,770,377			15,577
Distribution fees (Open Shares)		3,318,015			266
Custodian fees		1,359,120			73,663
Administration fees		691,636			15,284
Shareholders’ reports		365,287			3,192
Shareholders’ meeting		324,051			2,217
Directors’ fees and expenses		239,599			5,075
Professional services		210,922			46,128
Shareholders’ services		173,681			26,022
Registration fees		106,951			33,380
Amortization of offering costs (Note 2(f))		—			—
Organization expenses (Note 2(f))		—			—
Other^		168,205			5,312
Total gross expenses		58,727,844			226,116
Management fees waived and expenses reimbursed		(20,012	)		(199,529	)
Administration and shareholders’ services fees waived		—			(4,688	)
Total net expenses		58,707,832			21,899
Net investment income (loss)		79,666,900			44,930
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Investments**		323,342,685			138,658
Foreign currency transactions		(1,120,874	)		326
Total net realized gain (loss) on investments and foreign currency transactions		322,221,811			138,984
Net change in unrealized appreciation (depreciation) on:
Investments†		1,282,152,291			338,330
Foreign currency translations		406,448			109
Total net change in unrealized appreciation (depreciation) on investments and foreign currency translations		1,282,558,739			338,439
Net realized and unrealized gain (loss) on investments and foreign currency transactions		1,604,780,550			477,423
Net increase (decrease) in net assets resulting from operations	$	1,684,447,450		$	522,353
*Net of foreign withholding taxes of	$	13,243,198		$	7,626
** Net of foreign capital gains taxes of	$	526,756		$	—
† Includes net change in unrealized appreciation (depreciation) of foreign capital gains taxes of	$	(1,450,527	)	$	—
^ Includes interest on line of credit of	$	—		$	3

(a) From the Portfolio’s commencement of operations on September 29, 2017.

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

66  Annual Report

Lazard International Small Cap Equity Portfolio			Lazard Equity Franchise Portfolio (a)			Lazard Global Equity Select Portfolio			Lazard Global Strategic Equity Portfolio			Lazard Managed Equity Volatility Portfolio
$	1,561,430		$	29,485		$	719,038		$	280,892		$	81,449
	602,868			10,681			349,158			128,414			19,884
	104,139			29			1,525			316			570
	90,834			11,377			67,779			56,687			73,393
	26,204			923			20,740			17,016			15,447
	8,328			17			4,463			3,737			3,118
	11,917			—			7,060			2,264			2,568
	7,760			1,289			6,271			5,636			5,097
	49,739			30,061			41,206			40,351			43,837
	32,109			9,224			26,780			26,096			26,059
	37,084			757			51,387			36,852			33,387
	—			23,610			—			—			—
	—			6,878			—			—			—
	8,922			401			6,687			6,551			4,958
	979,904			95,247			583,056			323,920			228,318
	—			(76,423	)		(122,728	)		(152,172	)		(198,080	)
	—			(6,112	)		—			(4,688	)		(4,688	)
	979,904			12,712			460,328			167,060			25,550
	581,526			16,773			258,710			113,832			55,899
	6,261,496			43,392			2,533,357			3,255,214			209,173
	(31,222	)		(1,205	)		3,828			(8,298	)		(732	)
	6,230,274			42,187			2,537,185			3,246,916			208,441
	17,979,745			164,628			7,974,960			(242,470	)		356,396
	8,274			36			868			871			42
	17,988,019			164,664			7,975,828			(241,599	)		356,438
	24,218,293			206,851			10,513,013			3,005,317			564,879
$	24,799,819		$	223,624		$	10,771,723		$	3,119,149		$	620,778
$	158,985		$	1,120		$	36,011		$	18,872		$	5,037
$	33,861		$	—		$	—		$	—		$	—
$	—		$	—		$	—		$	—		$	—
$	1,329		$	—		$	63		$	437		$	3

Annual Report  67

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

	Lazard						Lazard
	US Equity Concentrated Portfolio						US Strategic Equity Portfolio
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	13,875,284		$	4,069,419		$	932,975		$	1,198,234
Net realized gain (loss) on investments and foreign currency transactions		142,271,974			50,690,101			8,352,420			1,463,194
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		63,020,970			29,061,533			5,046,521			7,058,895
Net increase (decrease) in net assets resulting from operations		219,168,228			83,821,053			14,331,916			9,720,323
Distributions to shareholders
From net investment income
Institutional Shares		(13,325,910	)		(3,975,998	)		(1,164,831	)		(580,867	)
Open Shares		(524,372	)		(77,422	)		(13,451	)		(7,216	)
R6 Shares		(3,047	)		(271	)		(177,827	)		(107,962	)
From net realized gains
Institutional Shares		(84,772,608	)		(53,706,434	)		(5,946,380	)		(2,332,102	)
Open Shares		(4,925,727	)		(4,859,175	)		(83,683	)		(38,995	)
R6 Shares		(19,848	)		(5,549	)		(910,164	)		(304,611	)
Net decrease in net assets resulting from distributions		(103,571,512	)		(62,624,849	)		(8,296,336	)		(3,371,753	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		427,187,488			648,051,424			6,051,046			10,159,922
Open Shares		31,985,344			113,049,439			152,723			261,466
R6 Shares		217,994			142,746			3,879,821			14,880,273
Net proceeds from reinvestment of distributions
Institutional Shares		88,099,840			50,279,095			7,105,793			2,894,127
Open Shares		5,378,038			4,847,186			94,116			42,191
R6 Shares		22,896			5,820			1,087,991			412,573
Cost of shares redeemed
Institutional Shares		(344,089,983	)		(201,827,230	)		(17,326,936	)		(56,068,764	)
Open Shares		(63,956,675	)		(129,731,839	)		(710,616	)		(529,777	)
R6 Shares		(33,244	)		(3,292	)		(7,829,156	)		(15,717,221	)
Net increase (decrease) in net assets from capital stock transactions		144,811,698			484,813,349			(7,495,218	)		(43,665,210	)
Redemption fees (Note 2(h))
Institutional Shares		—			5,164			—			50
Open Shares		—			6,929			—			—
R6 Shares		—			—			—			2,728
Net increase in net assets from redemption fees		—			12,093			—			2,778
Total increase (decrease) in net assets		260,408,414			506,021,646			(1,459,638	)		(37,313,862	)
Net assets at beginning of period		1,336,135,753			830,114,107			86,824,286			124,138,148
Net assets at end of period*	$	1,596,544,167		$	1,336,135,753		$	85,364,648		$	86,824,286
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	29,110		$	7,157		$	—		$	423,346
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		86,904,349			51,761,468			6,202,475			10,051,583
Shares sold		28,269,097			45,788,066			489,330			929,872
Shares issued to shareholders from reinvestment of distributions		5,739,411			3,511,078			572,928			252,311
Shares redeemed		(22,385,539	)		(14,156,263	)		(1,393,859	)		(5,031,291	)
Net increase (decrease)		11,622,969			35,142,881			(331,601	)		(3,849,108	)
Shares outstanding at end of period		98,527,318			86,904,349			5,870,874			6,202,475
Open Shares
Shares outstanding at beginning of period		7,411,857			8,216,877			117,822			139,487
Shares sold		2,116,503			7,944,326			12,271			23,584
Shares issued to shareholders from reinvestment of distributions		347,869			336,287			7,567			3,675
Shares redeemed		(4,194,438	)		(9,085,633	)		(56,444	)		(48,924	)
Net increase (decrease)		(1,730,066	)		(805,020	)		(36,606	)		(21,665	)
Shares outstanding at end of period		5,681,791			7,411,857			81,216			117,822
R6 Shares†
Shares outstanding at beginning of period		9,872			—			1,143,030			1,127,410
Shares sold		14,283			9,686			313,440			1,332,054
Shares issued to shareholders from reinvestment of distributions		1,488			408			87,657			35,909
Shares redeemed		(2,145	)		(222	)		(627,548	)		(1,352,343	)
Net increase (decrease)		13,626			9,872			(226,451	)		15,620
Shares outstanding at end of period		23,498			9,872			916,579			1,143,030

† The inception date for the US Equity Concentrated Portfolio R6 Shares was November 15, 2016.

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

68   Annual Report

Lazard						Lazard						Lazard
US Small-Mid Cap Equity Portfolio						International Equity Portfolio						International Equity Select Portfolio
Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
$	727,068		$	1,576,332		$	52,708,694		$	22,637,381		$	572,633		$	341,580
	25,902,875			4,381,638			4,883,307			(65,141,894	)		967,480			(1,388,258	)
	267,481			24,964,850			643,178,411			(58,887,120	)		9,382,645			1,010,846
	26,897,424			30,922,820			700,770,412			(101,391,633	)		10,922,758			(35,832	)
	(929,922	)		(1,149,160	)		(37,101,517	)		(14,872,435	)		(326,389	)		(271,128	)
	(68,349	)		(115,498	)		(6,787,026	)		(2,352,852	)		(10,427	)		(17,608	)
	—			—			(9,812,446	)		(737,825	)		—			—
	(19,496,066	)		(4,257,321	)		—			—			—			—
	(3,090,224	)		(822,383	)		—			—			—			—
	—			—			—			—			—			—
	(23,584,561	)		(6,344,362	)		(53,700,989	)		(17,963,112	)		(336,816	)		(288,736	)
	24,700,686			23,332,262			1,609,287,090			1,204,761,178			27,547,397			24,235,519
	9,096,024			6,849,779			279,622,992			1,131,071,739			427,893			560,888
	—			—			619,962,012			86,088,875			—			—
	20,069,757			5,343,272			31,790,226			12,229,814			266,756			255,048
	3,032,378			912,339			6,454,617			2,260,647			9,239			15,433
	—			—			9,812,446			737,825			—			—
	(60,255,552	)		(30,998,353	)		(715,965,738	)		(369,261,739	)		(12,174,649	)		(14,669,520	)
	(16,933,398	)		(18,104,639	)		(1,233,044,805	)		(96,445,823	)		(293,819	)		(622,873	)
	—			—			(115,088,363	)		(53,911,312	)		—			—
	(20,290,105	)		(12,665,340	)		492,830,477			1,917,531,204			15,782,817			9,774,495
	—			460			—			63,133			—			—
	—			38			—			944			—			—
	—			—			—			—			—			—
	—			498			—			64,077			—			—
	(16,977,242	)		11,913,616			1,139,899,900			1,798,240,536			26,368,759			9,449,927
	219,925,430			208,011,814			2,664,120,454			865,879,918			30,390,990			20,941,063
$	202,948,188		$	219,925,430		$	3,804,020,354		$	2,664,120,454		$	56,759,749		$	30,390,990
$	(191,969	)	$	263,682		$	12,884,788		$	12,983,412		$	572,890		$	336,642
	13,078,287			13,311,013			93,319,210			43,106,382			3,271,065			2,131,138
	1,659,111			1,743,526			88,541,076			71,824,648			2,854,325			2,779,499
	1,373,469			387,630			1,648,820			734,086			26,307			27,874
	(4,029,538	)		(2,363,882	)		(38,915,595	)		(22,345,906	)		(1,256,172	)		(1,667,446	)
	(996,958	)		(232,726	)		51,274,301			50,212,828			1,624,460			1,139,927
	12,081,329			13,078,287			144,593,511			93,319,210			4,895,525			3,271,065
	2,217,138			3,031,413			65,536,029			4,657,031			241,443			247,708
	654,337			586,680			14,688,275			66,560,474			43,876			62,488
	221,466			70,763			339,995			137,545			908			1,681
	(1,199,736	)		(1,471,718	)		(66,695,014	)		(5,819,021	)		(29,603	)		(70,434	)
	(323,933	)		(814,275	)		(51,666,744	)		60,878,998			15,181			(6,265	)
	1,893,205			2,217,138			13,869,285			65,536,029			256,624			241,443
	—			—			4,890,072			2,893,076			—			—
	—			—			36,289,913			5,181,473			—			—
	—			—			511,373			44,477			—			—
	—			—			(6,272,406	)		(3,228,954	)		—			—
	—			—			30,528,880			1,996,996			—			—
	—			—			35,418,952			4,890,072			—			—

Annual Report   69

	Lazard						Lazard
	International Equity Concentrated Portfolio						International Strategic Equity Portfolio
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	625,838		$	249,318		$	79,666,900		$	109,937,652
Net realized gain (loss) on investments and foreign currency transactions		1,615,858			(1,202,461	)		322,221,811			(438,445,742	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		6,674,505			1,612,385			1,282,558,739			(15,477,415	)
Net increase (decrease) in net assets resulting from operations		8,916,201			659,242			1,684,447,450			(343,985,505	)
Distributions to shareholders
From net investment income
Institutional Shares		(638,073	)		(234,534	)		(76,161,214	)		(81,630,952	)
Open Shares		(1,420	)		(1,274	)		(12,527,283	)		(21,194,078	)
R6 Shares		—			—			(1,402,962	)		(1,469,761	)
From net realized gains
Institutional Shares		—			—			—			—
Open Shares		—			—			—			—
Net decrease in net assets resulting from distributions		(639,493	)		(235,808	)		(90,091,459	)		(104,294,791	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		51,698,119			3,211,678			987,508,397			2,006,165,324
Open Shares		146,561			245,140			222,062,681			679,135,635
R6 Shares		—			—			22,635,019			30,965,801
Net proceeds from reinvestment of distributions
Institutional Shares		633,613			215,511			71,783,902			75,605,509
Open Shares		1,420			1,274			11,206,995			19,612,912
R6 Shares		—			—			1,402,962			1,469,761
Cost of shares redeemed
Institutional Shares		(6,607,152	)		(2,124,011	)		(1,522,608,879	)		(1,560,801,074	)
Open Shares		(76,575	)		(193,637	)		(918,633,394	)		(778,981,579	)
R6 Shares		—			—			(32,942,261	)		(2,475,164	)
Net increase (decrease) in net assets from capital stock transactions		45,795,986			1,355,955			(1,157,584,578	)		470,697,125
Redemption fees (Note 2(h))
Institutional Shares		—			—			—			13,027
Open Shares		—			—			—			8,823
R6 Shares		—			—			—			57
Net increase in net assets from redemption fees		—			—			—			21,907
Total increase (decrease) in net assets		54,072,694			1,779,389			436,771,413			22,438,736
Net assets at beginning of period		15,586,930			13,807,541			6,801,657,255			6,779,218,519
Net assets at end of period*	$	69,659,624		$	15,586,930		$	7,238,428,668		$	6,801,657,255
*Includes undistributed (distributions in excess of) net investment income (loss) of	$	(37,517	)	$	(14,748	)	$	(9,161,873	)	$	(850,287	)
Shares issued and redeemed Institutional Shares
Shares outstanding at beginning of period		1,811,118			1,663,050			410,970,431			369,311,964
Shares sold		5,480,279			371,671			71,517,376			156,620,760
Shares issued to shareholders from reinvestment of distributions		61,515			25,215			4,595,640			6,121,904
Shares redeemed		(694,027	)		(248,818	)		(110,493,896	)		(121,084,197	)
Net increase (decrease)		4,847,767			148,068			(34,380,880	)		41,658,467
Shares outstanding at end of period		6,658,885			1,811,118			376,589,551			410,970,431
Open Shares
Shares outstanding at beginning of period		13,327			6,633			126,809,001			132,713,560
Shares sold		15,550			28,536			16,084,578			52,488,760
Shares issued to shareholders from reinvestment of distributions		138			148			711,555			1,575,334
Shares redeemed		(8,004	)		(21,990	)		(66,719,396	)		(59,968,653	)
Net increase (decrease)		7,684			6,694			(49,923,263	)		(5,904,559	)
Shares outstanding at end of period		21,011			13,327			76,885,738			126,809,001
R6 Shares
Shares outstanding at beginning of period		—			—			7,730,925			5,423,697
Shares sold		—			—			1,686,785			2,381,602
Shares issued to shareholders from reinvestment of distributions		—			—			89,761			118,913
Shares redeemed		—			—			(2,480,803	)		(193,287	)
Net increase (decrease)		—			—			(704,257	)		2,307,228
Shares outstanding at end of period		—			—			7,026,668			7,730,925

(a) The Portfolio commenced operations on September 29, 2017.

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

70   Annual Report

Lazard						Lazard						Lazard Equity
International Equity Advantage Portfolio						International Small Cap Equity Portfolio						Franchise Portfolio
Year Ended December 31, 2017			Period Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016			Period Ended December 31, 2017 (a)
$	44,930		$	39,193		$	581,526		$	1,027,731		$	16,773
	138,984			(126,778	)		6,230,274			5,996,814			42,187
	338,439			71,344			17,988,019			(11,397,041	)		164,664
	522,353			(16,241	)		24,799,819			(4,372,496	)		223,624
	(48,334	)		(41,907	)		—			(1,048,895	)		(14,403	)
	(1,892	)		(1,729	)		—			(1,179,813	)		(211	)
	—			—			—			—			—
	—			—			—			—			(9,517	)
	—			—			—			—			(183	)
	(50,226	)		(43,636	)		—			(2,228,708	)		(24,314	)
	50,001			239,880			7,432,344			16,105,190			5,344,107
	—			15,158			5,933,441			17,033,388			108,930
	—			—			—			—			—
	48,334			41,907			—			1,017,106			23,919
	1,892			1,729			—			1,157,576			394
	—			—			—			—			—
	(9,922	)		(52,500	)		(15,138,177	)		(28,945,249	)		(147	)
	—			(14,598	)		(20,970,648	)		(25,799,541	)		—
	—			—			—			—			—
	90,305			231,576			(22,743,040	)		(19,431,530	)		5,477,203
	—			—			—			—			—
	—			—			—			996			—
	—			—			—			—			—
	—			—			—			996			—
	562,432			171,699			2,056,779			(26,031,738	)		5,676,513
	2,061,484			1,889,785			81,572,213			107,603,951			—
$	2,623,916		$	2,061,484		$	83,628,992		$	81,572,213		$	5,676,513
$	(3,505	)	$	(1,289	)	$	560,590		$	(332,173	)	$	(907	)
	221,034			195,042			3,668,073			4,752,936			—
	5,171			27,098			612,273			1,520,476			534,004
	4,442			4,708			—			98,839			2,287
	(967	)		(5,814	)		(1,287,306	)		(2,704,178	)		(14	)
	8,646			25,992			(675,033	)		(1,084,863	)		536,277
	229,680			221,034			2,993,040			3,668,073			536,277
	10,425			10,120			4,385,394			5,102,884			—
	—			1,803			510,938			1,633,512			10,650
	174			194			—			111,443			37
	—			(1,692	)		(1,832,161	)		(2,462,445	)		—
	174			305			(1,321,223	)		(717,490	)		10,687
	10,599			10,425			3,064,171			4,385,394			10,687
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—

Annual Report   71

	Lazard						Lazard
	Global Equity Select Portfolio						Global Strategic Equity Portfolio
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	258,710		$	221,153		$	113,832		$	142,460
Net realized gain (loss) on investments and foreign currency transactions		2,537,185			(503,384	)		3,246,916			(68,902	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		7,975,828			991,906			(241,599	)		603,405
Net increase (decrease) in net assets resulting from operations		10,771,723			709,675			3,119,149			676,963
Distributions to shareholders
From net investment income
Institutional Shares		(405,342	)		(217,396	)		(97,947	)		(133,667	)
Open Shares		(3,136	)		(2,104	)		(2,039	)		(430	)
From net realized gains
Institutional Shares		(1,601,433	)		—			(2,232,754	)		—
Open Shares		(20,890	)		—			(115,380	)		—
Net decrease in net assets resulting from distributions		(2,030,801	)		(219,500	)		(2,448,120	)		(134,097	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		26,989,184			17,081,975			11,001			11,474,782
Open Shares		76,128			297,481			21,042			15,705
Net proceeds from reinvestment of distributions
Institutional Shares		2,006,754			217,396			2,330,702			133,667
Open Shares		24,026			2,104			117,418			430
Cost of shares redeemed
Institutional Shares		(10,607,033	)		(7,216,304	)		(20,168,629	)		(1,590,553	)
Open Shares		(29,426	)		(75,343	)		(13,481	)		(15,138	)
Net increase (decrease) in net assets from capital stock transactions		18,459,633			10,307,309			(17,701,947	)		10,018,893
Redemption fees (Note 2(h))
Institutional Shares		—			1			—			—
Net increase in net assets from redemption fees		—			1			—			—
Total increase (decrease) in net assets		27,200,555			10,797,485			(17,030,918	)		10,561,759
Net assets at beginning of period		31,711,889			20,914,404			19,930,083			9,368,324
Net assets at end of period*	$	58,912,444		$	31,711,889		$	2,899,165		$	19,930,083
*Includes undistributed (distributions in excess of) net investment income (loss) of	$	(159,545	)	$	(24,815	)	$	(36,625	)	$	(43,294	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		2,962,172			1,996,624			2,065,337			957,062
Shares sold		2,230,573			1,640,702			946			1,261,153
Shares issued to shareholders from reinvestment of distributions		154,485			20,606			974,961			13,961
Shares redeemed		(882,585	)		(695,760	)		(1,850,661	)		(166,839	)
Net increase (decrease)		1,502,473			965,548			(874,754	)		1,108,275
Shares outstanding at end of period		4,464,645			2,962,172			1,190,583			2,065,337
Open Shares
Shares outstanding at beginning of period		48,903			28,081			11,910			11,796
Shares sold		6,158			27,605			3,688			1,598
Shares issued to shareholders from reinvestment of distributions		1,848			199			50,340			45
Shares redeemed		(2,395	)		(6,982	)		(1,319	)		(1,529	)
Net increase (decrease)		5,611			20,822			52,709			114
Shares outstanding at end of period		54,514			48,903			64,619			11,910

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

72  Annual Report

Lazard
Managed Equity Volatility Portfolio
Year Ended December 31, 2017			Year Ended December 31, 2016
$	55,899		$	45,582
	208,441			(728	)
	356,438			115,621
	620,778			160,475
	(57,012	)		(52,264	)
	(3,398	)		(3,182	)
	(106,249	)		—
	(8,094	)		—
	(174,753	)		(55,446	)
	1,184,556			136,000
	103,001			36,078
	163,260			52,264
	11,493			3,182
	(15,062	)		(60,203	)
	(1,254	)		(50,836	)
	1,445,994			116,485
	—			—
	—			—
	1,892,019			221,514
	2,602,886			2,381,372
$	4,494,905		$	2,602,886
$	(844	)	$	(3,799	)
	243,326			229,926
	105,129			14,243
	14,184			5,204
	(1,339	)		(6,047	)
	117,974			13,400
	361,300			243,326
	17,240			18,287
	9,125			3,594
	999			317
	(109	)		(4,958	)
	10,015			(1,047	)
	27,255			17,240

Annual Report   73

The Lazard Funds, Inc. Financial Highlights

LAZARD US EQUITY CONCENTRATED PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	14.16		$	13.83		$	13.41		$	12.59		$	10.71
Income (loss) from investment operations:
Net investment income (loss) (a)		0.14			0.06	^		0.05			0.11			0.14
Net realized and unrealized gain (loss)		2.05			0.97			0.88			2.23			3.02
Total from investment operations		2.19			1.03			0.93			2.34			3.16
Less distributions from:
Net investment income		(0.14	)		(0.05	)		(0.04	)		(0.09	)		(0.14	)
Net realized gains		(0.90	)		(0.65	)		(0.47	)		(1.43	)		(1.14	)
Total distributions		(1.04	)		(0.70	)		(0.51	)		(1.52	)		(1.28	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	15.31		$	14.16		$	13.83		$	13.41		$	12.59
Total Return (c)		15.49	%		7.37	%^		7.00	%		18.88	%		29.59	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,508,581		$	1,230,377		$	715,766		$	331,074		$	228,478
Ratios to average net assets:
Net expenses		0.75	%		0.77	%^		0.79	%		0.81	%		0.85	%
Gross expenses		0.75	%		0.77	%		0.79	%		0.81	%		0.85	%
Net investment income (loss)		0.90	%		0.39	%^		0.36	%		0.79	%		1.16	%
Portfolio turnover rate		86	%		84	%		74	%		63	%		108	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	14.25		$	13.92		$	13.50		$	12.68		$	10.77
Income (loss) from investment operations:
Net investment income (loss) (a)		0.10			0.02	^		0.01			0.05			0.09
Net realized and unrealized gain (loss)		2.07			0.97			0.88			2.23			3.04
Total from investment operations		2.17			0.99			0.89			2.28			3.13
Less distributions from:
Net investment income		(0.10	)		(0.01	)		—	(b)		(0.03	)		(0.08	)
Net realized gains		(0.90	)		(0.65	)		(0.47	)		(1.43	)		(1.14	)
Total distributions		(1.00	)		(0.66	)		(0.47	)		(1.46	)		(1.22	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—
Net asset value, end of period	$	15.42		$	14.25		$	13.92		$	13.50		$	12.68
Total Return (c)		15.22	%		7.06	%^		6.67	%		18.28	%		29.21	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	87,603		$	105,619		$	114,348		$	8,011		$	2,181
Ratios to average net assets:
Net expenses		1.03	%		1.03	%^		1.07	%		1.25	%		1.25	%
Gross expenses		1.03	%		1.03	%		1.07	%		1.46	%		1.87	%
Net investment income (loss)		0.62	%		0.17	%^		0.08	%		0.37	%		0.74	%
Portfolio turnover rate		86	%		84	%		74	%		63	%		108	%

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

74  Annual Report

					For the Period
Selected data for a share of capital	Year Ended				11/15/16* to
stock outstanding throughout each period	12/31/17				12/31/16
R6 Shares
Net asset value, beginning of period		$	14.18		$	14.77
Income (loss) from investment operations:
Net investment income (loss) (a)			0.14			—	(b)^
Net realized and unrealized gain (loss)			2.06			0.03
Total from investment operations			2.20			0.03
Less distributions from:
Net investment income			(0.14	)		(0.03	)
Net realized gains			(0.90	)		(0.59	)
Total distributions			(1.04	)		(0.62	)
Net asset value, end of period		$	15.34		$	14.18
Total Return (c)			15.52	%		0.17	%^
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	361		$	140
Ratios to average net assets (d):
Net expenses			0.75	%		0.77	%^
Gross expenses			8.34	%		15.38	%
Net investment income (loss)			0.91	%		0.19	%^
Portfolio turnover rate			86	%		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 period. The amount of the reimbursement was 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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are 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  75

LAZARD US STRATEGIC EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	11.63		$	10.97		$	12.43		$	12.49		$	10.11
Income (loss) from investment operations:
Net investment income (loss) (a)		0.14			0.12			0.09			0.14			0.14
Net realized and unrealized gain (loss)		1.94			0.94			(0.69	)		1.73			2.72
Total from investment operations		2.08			1.06			(0.60	)		1.87			2.86
Less distributions from:
Net investment income		(0.21	)		(0.10	)		(0.10	)		(0.13	)		(0.15	)
Net realized gains		(1.07	)		(0.30	)		(0.76	)		(1.80	)		(0.33	)
Total distributions		(1.28	)		(0.40	)		(0.86	)		(1.93	)		(0.48	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	12.43		$	11.63		$	10.97		$	12.43		$	12.49
Total Return (c)		18.17	%		9.70	%		–4.75	%		15.04	%		28.38	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	72,958		$	72,151		$	110,243		$	119,941		$	116,323
Ratios to average net assets:
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Gross expenses		0.95	%		0.94	%		0.90	%		0.90	%		0.93	%
Net investment income (loss)		1.10	%		1.08	%		0.77	%		1.05	%		1.21	%
Portfolio turnover rate		74	%		68	%		75	%		69	%		71	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	11.68		$	11.01		$	12.48		$	12.53		$	10.14
Income (loss) from investment operations:
Net investment income (loss) (a)		0.10			0.09			0.06			0.10			0.11
Net realized and unrealized gain (loss)		1.94			0.94			(0.71	)		1.74			2.73
Total from investment operations		2.04			1.03			(0.65	)		1.84			2.84
Less distributions from:
Net investment income		(0.17	)		(0.06	)		(0.06	)		(0.09	)		(0.12	)
Net realized gains		(1.07	)		(0.30	)		(0.76	)		(1.80	)		(0.33	)
Total distributions		(1.24	)		(0.36	)		(0.82	)		(1.89	)		(0.45	)
Net asset value, end of period	$	12.48		$	11.68		$	11.01		$	12.48		$	12.53
Total Return (c)		17.75	%		9.46	%		–5.11	%		14.77	%		28.04	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,013		$	1,376		$	1,536		$	6,833		$	7,650
Ratios to average net assets:
Net expenses		1.05	%		1.05	%		1.05	%		1.05	%		1.05	%
Gross expenses		2.30	%		2.13	%		1.51	%		1.31	%		1.33	%
Net investment income (loss)		0.79	%		0.80	%		0.50	%		0.75	%		0.95	%
Portfolio turnover rate		74	%		68	%		75	%		69	%		71	%

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

76  Annual Report

										For the Period
Selected data for a share of capital				Year Ended						5/19/14* to
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14
R6 Shares
Net asset value, beginning of period	$	11.63		$	10.96		$	12.43		$	12.81
Income (loss) from investment operations:
Net investment income (loss) (a)		0.14			0.14			0.10			0.09
Net realized and unrealized gain (loss)		1.94			0.93			(0.71	)		1.47
Total from investment operations		2.08			1.07			(0.61	)		1.56
Less distributions from:
Net investment income		(0.21	)		(0.10	)		(0.10	)		(0.14	)
Net realized gains		(1.07	)		(0.30	)		(0.76	)		(1.80	)
Total distributions		(1.28	)		(0.40	)		(0.86	)		(1.94	)
Redemption fees		—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	12.43		$	11.63		$	10.96		$	12.43
Total Return (c)		18.16	%		9.81	%		–4.78	%		12.23	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	11,394		$	13,297		$	12,359		$	14,951
Ratios to average net assets (d):
Net expenses		0.75	%		0.74	%		0.70	%		0.70	%
Gross expenses		1.05	%		1.02	%		1.00	%		1.06	%
Net investment income (loss)		1.12	%		1.27	%		0.82	%		1.14	%
Portfolio turnover rate		74	%		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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are 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  77

LAZARD US SMALL-MID CAP EQUITY PORTFOLIO

Selected data for a share of capital							Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	14.50		$	12.86		$	14.05		$	15.97		$	13.29
Income (loss) from investment operations:
Net investment income (loss) (a)		0.06			0.11	^		0.02			0.03			0.01
Net realized and unrealized gain (loss)		1.95			1.96			(0.34	)		1.74			4.70
Total from investment operations		2.01			2.07			(0.32	)		1.77			4.71
Less distributions from:
Net investment income		(0.09	)		(0.09	)		—	(b)		(0.01	)		(0.01	)
Net realized gains		(1.77	)		(0.34	)		(0.87	)		(3.68	)		(2.02	)
Total distributions		(1.86	)		(0.43	)		(0.87	)		(3.69	)		(2.03	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	14.65		$	14.50		$	12.86		$	14.05		$	15.97
Total Return (c)		14.12	%		16.28	%^		–2.14	%		11.39	%		35.81	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	176,975		$	189,593		$	171,152		$	157,742		$	353,565
Ratios to average net assets:
Net expenses		0.87	%		0.86	%^		0.91	%		0.86	%		0.86	%
Gross expenses		0.87	%		0.90	%		0.91	%		0.86	%		0.86	%
Net investment income (loss)		0.39	%		0.84	%^		0.13	%		0.17	%		0.06	%
Portfolio turnover rate		79	%		91	%		91	%		91	%		101	%
Selected data for a share of capital							Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	13.68		$	12.16		$	13.38		$	15.41		$	12.92
Income (loss) from investment operations:
Net investment income (loss) (a)		0.01			0.06	^		(0.02	)		(0.02	)		(0.04	)
Net realized and unrealized gain (loss)		1.84			1.85			(0.33	)		1.67			4.56
Total from investment operations		1.85			1.91			(0.35	)		1.65			4.52
Less distributions from:
Net investment income		(0.04	)		(0.05	)		—	(b)		—			(0.01	)
Net realized gains		(1.77	)		(0.34	)		(0.87	)		(3.68	)		(2.02	)
Total distributions		(1.81	)		(0.39	)		(0.87	)		(3.68	)		(2.03	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	13.72		$	13.68		$	12.16		$	13.38		$	15.41
Total Return (c)		13.82	%		15.92	%^		–2.47	%		11.01	%		35.47	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	25,973		$	30,332		$	36,860		$	15,851		$	14,665
Ratios to average net assets:
Net expenses		1.17	%		1.16	%^		1.20	%		1.20	%		1.20	%
Gross expenses		1.17	%		1.20	%		1.20	%		1.20	%		1.20	%
Net investment income (loss)		0.09	%		0.51	%^		–0.13	%		–0.15	%		–0.27	%
Portfolio turnover rate		79	%		91	%		91	%		91	%		101	%

^	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 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.

78  Annual Report

LAZARD INTERNATIONAL EQUITY PORTFOLIO

Selected data for a share of capital							Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	16.20		$	17.08		$	16.93		$	17.85		$	14.78
Income (loss) from investment operations:
Net investment income (loss) (a)		0.26			0.27	^		0.27			0.26			0.23
Net realized and unrealized gain (loss)		3.43			(0.98	)		—			(1.02	)		2.85
Total from investment operations		3.69			(0.71	)		0.27			(0.76	)		3.08
Less distributions from:
Net investment income		(0.28	)		(0.17	)		(0.12	)		(0.16	)		(0.01	)
Total distributions		(0.28	)		(0.17	)		(0.12	)		(0.16	)		(0.01	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	19.61		$	16.20		$	17.08		$	16.93		$	17.85
Total Return (c)		22.81	%		–4.18	%^		1.62	%		–4.29	%		20.84	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,835,262		$	1,511,516		$	736,272		$	378,488		$	185,199
Ratios to average net assets:
Net expenses		0.81	%		0.82	%^		0.86	%		0.90	%		0.95	%
Gross expenses		0.81	%		0.84	%		0.87	%		0.90	%		0.95	%
Net investment income (loss)		1.44	%		1.62	%^		1.50	%		1.46	%		1.42	%
Portfolio turnover rate		31	%		25	%		30	%		36	%		43	%
Selected data for a share of capital							Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	16.38		$	17.23		$	17.07		$	18.00		$	14.94
Income (loss) from investment operations:
Net investment income (loss) (a)		0.30			0.13	^		0.23			0.27			0.19
Net realized and unrealized gain (loss)		3.38			(0.90	)		—			(1.09	)		2.88
Total from investment operations		3.68			(0.77	)		0.23			(0.82	)		3.07
Less distributions from:
Net investment income		(0.23	)		(0.08	)		(0.07	)		(0.11	)		(0.01	)
Total distributions		(0.23	)		(0.08	)		(0.07	)		(0.11	)		(0.01	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	19.83		$	16.38		$	17.23		$	17.07		$	18.00
Total Return (c)		22.50	%		–4.46	%^		1.36	%		–4.57	%		20.55	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	275,014		$	1,073,486		$	80,221		$	57,350		$	42,370
Ratios to average net assets:
Net expenses		1.06	%		1.07	%^		1.14	%		1.17	%		1.23	%
Gross expenses		1.06	%		1.10	%		1.14	%		1.17	%		1.23	%
Net investment income (loss)		1.69	%		0.80	%^		1.29	%		1.49	%		1.18	%
Portfolio turnover rate		31	%		25	%		30	%		36	%		43	%

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

Annual Report  79

							For the Period
Selected data for a share of capital	Year Ended						4/1/15* to
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15
R6 Shares
Net asset value, beginning of period	$	16.18		$	17.07		$	17.94
Income (loss) from investment operations:
Net investment income (loss) (a)		0.31			0.31	^		0.21
Net realized and unrealized gain (loss)		3.38			(1.02	)		(0.95	)
Total from investment operations		3.69			(0.71	)		(0.74	)
Less distributions from:
Net investment income		(0.28	)		(0.18	)		(0.13	)
Total distributions		(0.28	)		(0.18	)		(0.13	)
Net asset value, end of period	$	19.59		$	16.18		$	17.07
Total Return (c)		22.85	%		–4.17	%^		–4.10	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	693,744		$	79,119		$	49,387
Ratios to average net assets (d):
Net expenses		0.80	%		0.80	%^		0.80	%
Gross expenses		0.81	%		0.86	%		0.92	%
Net investment income (loss)		1.68	%		1.88	%^		1.55	%
Portfolio turnover rate		31	%		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 period. The amount of the reimbursement was 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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized.
(d)	Annualized for a period of less than one year.

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

80  Annual Report

LAZARD INTERNATIONAL EQUITY SELECT PORTFOLIO

Selected data for a share of capital							Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	8.65		$	8.80		$	9.24		$	9.76		$	8.51
Income (loss) from investment operations:
Net investment income (loss) (a)		0.13			0.12			0.12			0.15			0.12
Net realized and unrealized gain (loss)		2.31			(0.17	)		(0.46	)		(0.58	)		1.15
Total from investment operations		2.44			(0.05	)		(0.34	)		(0.43	)		1.27
Less distributions from:
Net investment income		(0.07	)		(0.10	)		(0.10	)		(0.11	)		(0.02	)
Total distributions		(0.07	)		(0.10	)		(0.10	)		(0.11	)		(0.02	)
Redemption fees		—			—			—	(b)		0.02			—	(b)
Net asset value, end of period	$	11.02		$	8.65		$	8.80		$	9.24		$	9.76
Total Return (c)		28.31	%		–0.63	%		–3.63	%		–4.29	%		14.93	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	53,929		$	28,299		$	18,757		$	12,749		$	19,212
Ratios to average net assets:
Net expenses		1.05	%		1.05	%		1.06	%		1.15	%		1.15	%
Gross expenses		1.31	%		1.79	%		2.13	%		2.10	%		2.45	%
Net investment income (loss)		1.27	%		1.36	%		1.25	%		1.54	%		1.33	%
Portfolio turnover rate		30	%		42	%		51	%		80	%		36	%
Selected data for a share of capital							Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	8.66		$	8.82		$	9.25		$	9.79		$	8.57
Income (loss) from investment operations:
Net investment income (loss) (a)		0.10			0.10			0.11			0.11			0.10
Net realized and unrealized gain (loss)		2.31			(0.19	)		(0.47	)		(0.57	)		1.14
Total from investment operations		2.41			(0.09	)		(0.36	)		(0.46	)		1.24
Less distributions from:
Net investment income		(0.04	)		(0.07	)		(0.07	)		(0.08	)		(0.02	)
Total distributions		(0.04	)		(0.07	)		(0.07	)		(0.08	)		(0.02	)
Redemption fees		—			—			—			—	(b)		—
Net asset value, end of period	$	11.03		$	8.66		$	8.82		$	9.25		$	9.79
Total Return (c)		27.89	%		–1.03	%		–3.85	%		–4.76	%		14.48	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,831		$	2,092		$	2,184		$	3,048		$	3,444
Ratios to average net assets:
Net expenses		1.35	%		1.35	%		1.37	%		1.45	%		1.45	%
Gross expenses		2.07	%		2.59	%		2.75	%		2.70	%		3.03	%
Net investment income (loss)		1.01	%		1.13	%		1.15	%		1.11	%		1.08	%
Portfolio turnover rate		30	%		42	%		51	%		80	%		36	%

(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 may have been waived or reimbursed by the 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  81

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	12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	8.54		$	8.27		$	9.53		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.13			0.14			0.10			(0.01	)
Net realized and unrealized gain (loss)		1.86			0.25			(1.25	)		(0.45	)
Total from investment operations		1.99			0.39			(1.15	)		(0.46	)
Less distributions from:
Net investment income		(0.10	)		(0.12	)		(0.11	)		(0.01	)
Net realized gains		—			—			—			—	(b)
Total distributions		(0.10	)		(0.12	)		(0.11	)		(0.01	)
Redemption fees		—			—			—	(b)		—
Net asset value, end of period	$	10.43		$	8.54		$	8.27		$	9.53
Total Return (c)		23.29	%		4.74	%		–12.06	%		–4.60	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	69,440		$	15,473		$	13,753		$	9,103
Ratios to average net assets (d):
Net expenses		1.05	%		1.05	%		1.06	%		1.15	%
Gross expenses		1.34	%		2.29	%		2.96	%		7.40	%
Net investment income (loss)		1.35	%		1.64	%		1.13	%		–0.41	%
Portfolio turnover rate		81	%		92	%		91	%		45	%
										For the Period
Selected data for a share of capital	Year Ended									8/29/14* to
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	8.56		$	8.29		$	9.53		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.10			0.11			0.06			(0.02	)
Net realized and unrealized gain (loss)		1.86			0.26			(1.22	)		(0.45	)
Total from investment operations		1.96			0.37			(1.16	)		(0.47	)
Less distributions from:
Net investment income		(0.07	)		(0.10	)		(0.08	)		—
Net realized gains		—			—			—			—	(b)
Total distributions		(0.07	)		(0.10	)		(0.08	)		—	(b)
Redemption fees		—			—			—	(b)		—
Net asset value, end of period	$	10.45		$	8.56		$	8.29		$	9.53
Total Return (c)		22.87	%		4.41	%		–12.18	%		–4.66	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	220		$	114		$	55		$	559
Ratios to average net assets (d):
Net expenses		1.35	%		1.35	%		1.39	%		1.45	%
Gross expenses		8.15	%		11.98	%		9.93	%		12.39	%
Net investment income (loss)		1.04	%		1.32	%		0.60	%		–0.55	%
Portfolio turnover rate		81	%		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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized.
(d)	Annualized for a period of less than one year.

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

82  Annual Report

LAZARD INTERNATIONAL STRATEGIC EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	12.44		$	13.33		$	13.72		$	14.46		$	11.71
Income (loss) from investment operations:
Net investment income (loss) (a)		0.17			0.20	^		0.16			0.19			0.14
Net realized and unrealized gain (loss)		3.29			(0.89	)		(0.40	)		(0.39	)		2.79
Total from investment operations		3.46			(0.69	)		(0.24	)		(0.20	)		2.93
Less distributions from:
Net investment income		(0.20	)		(0.20	)		(0.14	)		(0.16	)		(0.10	)
Net realized gains		—			—			(0.01	)		(0.38	)		(0.08	)
Total distributions		(0.20	)		(0.20	)		(0.15	)		(0.54	)		(0.18	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	15.70		$	12.44		$	13.33		$	13.72		$	14.46
Total Return (c)		27.85	%		–5.17	%^		–1.70	%		–1.48	%		25.02	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$5,911,184			$5,114,357			$4,923,328			$3,727,391			$2,354,068
Ratios to average net assets:
Net expenses		0.80	%		0.81	%^		0.82	%		0.84	%		0.86	%
Gross expenses		0.80	%		0.81	%		0.82	%		0.84	%		0.86	%
Net investment income (loss)		1.20	%		1.56	%^		1.15	%		1.28	%		1.02	%
Portfolio turnover rate		44	%		47	%		37	%		33	%		42	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	12.55		$	13.44		$	13.82		$	14.57		$	11.80
Income (loss) from investment operations:
Net investment income (loss) (a)		0.14			0.18	^		0.13			0.16			0.10
Net realized and unrealized gain (loss)		3.30			(0.90	)		(0.40	)		(0.41	)		2.82
Total from investment operations		3.44			(0.72	)		(0.27	)		(0.25	)		2.92
Less distributions from:
Net investment income		(0.16	)		(0.17	)		(0.10	)		(0.12	)		(0.07	)
Net realized gains		—			—			(0.01	)		(0.38	)		(0.08	)
Total distributions		(0.16	)		(0.17	)		(0.11	)		(0.50	)		(0.15	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	15.83		$	12.55		$	13.44		$	13.82		$	14.57
Total Return (c)		27.44	%		–5.37	%^		–1.89	%		–1.78	%		24.73	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,216,861		$	1,591,016		$	1,783,529		$	1,574,106		$	868,730
Ratios to average net assets:
Net expenses		1.06	%		1.06	%^		1.08	%		1.09	%		1.10	%
Gross expenses		1.06	%		1.06	%		1.08	%		1.09	%		1.10	%
Net investment income (loss)		0.97	%		1.34	%^		0.94	%		1.06	%		0.78	%
Portfolio turnover rate		44	%		47	%		37	%		33	%		42	%

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

Annual Report  83

							For the Period
Selected data for a share of capital	Year Ended						1/19/15* to
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15
R6 Shares
Net asset value, beginning of period	$	12.45		$	13.34		$	13.70
Income (loss) from investment operations:
Net investment income (loss) (a)		0.16			0.19	^		(0.03	)
Net realized and unrealized gain (loss)		3.30			(0.88	)		(0.21	)
Total from investment operations		3.46			(0.69	)		(0.24	)
Less distributions from:
Net investment income		(0.20	)		(0.20	)		(0.11	)
Net realized gains		—			—			(0.01	)
Total distributions		(0.20	)		(0.20	)		(0.12	)
Redemption fees		—			—	(b)		—
Net asset value, end of period	$	15.71		$	12.45		$	13.34
Total Return (c)		27.82	%		–5.17	%^		–1.73	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	110,383		$	96,284		$	72,362
Ratios to average net assets (d):
Net expenses		0.80	%		0.81	%^		1.03	%
Gross expenses		0.82	%		0.82	%		1.09	%
Net investment income (loss)		1.15	%		1.46	%^		–0.22	%
Portfolio turnover rate		44	%		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 period. The amount of the reimbursement was 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 may 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. Returns for a period of less than one year are not annualized.
(d)	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 EQUITY ADVANTAGE PORTFOLIO

							For the Period
Selected data for a share of capital	Year Ended						5/29/15* to
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15
Institutional Shares
Net asset value, beginning of period	$	8.91		$	9.21		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.19			0.18			0.04
Net realized and unrealized gain (loss)		2.03			(0.28	)		(0.70	)
Total from investment operations		2.22			(0.10	)		(0.66	)
Less distributions from:
Net investment income		(0.21	)		(0.20	)		(0.13	)
Total distributions		(0.21	)		(0.20	)		(0.13	)
Net asset value, end of period	$	10.92		$	8.91		$	9.21
Total Return (b)		24.98	%		–1.13	%		–6.63	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,508		$	1,969		$	1,797
Ratios to average net assets (c):
Net expenses		0.90	%		0.90	%		0.90	%
Gross expenses		8.91	%		13.12	%		14.93	%
Net investment income (loss)		1.89	%		2.08	%		0.77	%
Portfolio turnover rate		88	%		92	%		58	%
							For the Period
Selected data for a share of capital	Year Ended						5/29/15* to
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15
Open Shares
Net asset value, beginning of period	$	8.91		$	9.21		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.16			0.15			0.03
Net realized and unrealized gain (loss)		2.03			(0.28	)		(0.71	)
Total from investment operations		2.19			(0.13	)		(0.68	)
Less distributions from:
Net investment income		(0.18	)		(0.17	)		(0.11	)
Total distributions		(0.18	)		(0.17	)		(0.11	)
Net asset value, end of period	$	10.92		$	8.91		$	9.21
Total Return (b)		24.60	%		–1.42	%		–6.80	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	116		$	93		$	93
Ratios to average net assets (c):
Net expenses		1.20	%		1.20	%		1.20	%
Gross expenses		20.85	%		25.85	%		30.10	%
Net investment income (loss)		1.58	%		1.74	%		0.47	%
Portfolio turnover rate		88	%		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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized.
(c)	Annualized for a period of less than one year.

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

Annual Report  85

LAZARD INTERNATIONAL SMALL CAP EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	10.10		$	10.90		$	10.01		$	10.54		$	8.12
Income (loss) from investment operations:
Net investment income (loss) (a)		0.10			0.12	^		0.10			0.12			0.11
Net realized and unrealized gain (loss)		3.59			(0.62	)		0.87			(0.40	)		2.34
Total from investment operations		3.69			(0.50	)		0.97			(0.28	)		2.45
Less distributions from:
Net investment income		—			(0.30	)		(0.08	)		(0.25	)		(0.03	)
Total distributions		—			(0.30	)		(0.08	)		(0.25	)		(0.03	)
Redemption fees		—			—			—	(b)		—	(b)		—
Net asset value, end of period	$	13.79		$	10.10		$	10.90		$	10.01		$	10.54
Total Return (c)		36.53	%		–4.64	%^		9.71	%		–2.77	%		30.20	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	41,267		$	37,049		$	51,828		$	46,329		$	51,508
Ratios to average net assets:
Net expenses		1.09	%		0.96	%^		1.11	%		1.13	%		1.13	%
Gross expenses		1.09	%		1.06	%		1.11	%		1.15	%		1.19	%
Net investment income (loss)		0.85	%		1.14	%^		0.91	%		1.13	%		1.15	%
Portfolio turnover rate		35	%		63	%		48	%		48	%		58	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	10.15		$	10.93		$	10.03		$	10.56		$	8.17
Income (loss) from investment operations:
Net investment income (loss) (a)		0.07			0.10	^		0.07			0.09			0.08
Net realized and unrealized gain (loss)		3.60			(0.63	)		0.88			(0.40	)		2.34
Total from investment operations		3.67			(0.53	)		0.95			(0.31	)		2.42
Less distributions from:
Net investment income		—			(0.25	)		(0.05	)		(0.22	)		(0.03	)
Total distributions		—			(0.25	)		(0.05	)		(0.22	)		(0.03	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	13.82		$	10.15		$	10.93		$	10.03		$	10.56
Total Return (c)		36.16	%		–4.92	%^		9.49	%		–3.05	%		29.65	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	42,362		$	44,523		$	55,776		$	19,994		$	19,639
Ratios to average net assets:
Net expenses		1.34	%		1.21	%^		1.38	%		1.43	%		1.43	%
Gross expenses		1.34	%		1.30	%		1.38	%		1.44	%		1.48	%
Net investment income (loss)		0.61	%		0.91	%^		0.63	%		0.85	%		0.85	%
Portfolio turnover rate		35	%		63	%		48	%		48	%		58	%

^	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 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 may have been waived or reimbursed by the 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.

86  Annual Report

LAZARD EQUITY FRANCHISE PORTFOLIO

	For the Period
Selected data for a share of capital	9/29/17* to
stock outstanding throughout the period	12/31/17
Institutional Shares
Net asset value, beginning of period	$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.03
Net realized and unrealized gain (loss)		0.40
Total from investment operations		0.43
Less distributions from:
Net investment income		(0.03	)
Net realized gains		(0.02	)
Total distributions		(0.05	)
Net asset value, end of period	$	10.38
Total Return (b)		4.25	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	5,566
Ratios to average net assets (c):
Net expenses		0.95	%
Gross expenses		3.21	%
Net investment income (loss)		1.26	%
Portfolio turnover rate		10	%
	For the Period
Selected data for a share of capital	9/29/17* to
stock outstanding throughout the period	12/31/17
Open Shares
Net asset value, beginning of period	$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.03
Net realized and unrealized gain (loss)		0.39
Total from investment operations		0.42
Less distributions from:
Net investment income		(0.02	)
Net realized gains		(0.02	)
Total distributions		(0.04	)
Net asset value, end of period	$	10.38
Total Return (b)		4.18	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	111
Ratios to average net assets (c):
Net expenses		1.20	%
Gross expenses		23.62	%
Net investment income (loss)		1.14	%
Portfolio turnover rate		10	%

*	The Portfolio commenced operations on September 29, 2017.
(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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized.
(c)	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  87

LAZARD GLOBAL EQUITY SELECT PORTFOLIO

													Period
Selected data for a share of capital	Year Ended												Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13*
Institutional Shares
Net asset value, beginning of period	$	10.53		$	10.33		$	10.32		$	10.02		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.07			0.09			0.04			0.07			—
Net realized and unrealized gain (loss)		2.93			0.18			0.01			0.29			0.02
Total from investment operations		3.00			0.27			0.05			0.36			0.02
Less distributions from:
Net investment income		(0.10	)		(0.07	)		(0.04	)		(0.06	)		—
Net realized gains		(0.39	)		—			—			—			—
Total distributions		(0.49	)		(0.07	)		(0.04	)		(0.06	)		—
Redemption fees		—			—	(b)		—	(b)		—	(b)		—
Net asset value, end of period	$	13.04		$	10.53		$	10.33		$	10.32		$	10.02
Total Return (c)		28.52	%		2.66	%		0.46	%		3.84	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	58,201		$	31,197		$	20,624		$	12,266		$	1,903
Ratios to average net assets (d):
Net expenses		1.05	%		1.07	%		1.10	%		1.10	%		0.00	%
Gross expenses		1.30	%		1.75	%		2.27	%		4.62	%		91.25	%(e)
Net investment income (loss)		0.60	%		0.86	%		0.41	%		0.64	%		0.00	%
Portfolio turnover rate		34	%		40	%		55	%		64	%		0	%
													Period
Selected data for a share of capital	Year Ended												Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13*
Open Shares
Net asset value, beginning of period	$	10.54		$	10.34		$	10.32		$	10.01		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.04			0.06			0.01			0.04			—
Net realized and unrealized gain (loss)		2.91			0.18			0.02			0.30			0.01
Total from investment operations		2.95			0.24			0.03			0.34			0.01
Less distributions from:
Net investment income		(0.06	)		(0.04	)		(0.01	)		(0.03	)		—
Net realized gains		(0.39	)		—			—			—			—
Total distributions		(0.45	)		(0.04	)		(0.01	)		(0.03	)		—
Net asset value, end of period	$	13.04		$	10.54		$	10.34		$	10.32		$	10.01
Total Return (c)		28.01	%		2.35	%		0.24	%		3.54	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	711		$	515		$	290		$	201		$	100
Ratios to average net assets (d):
Net expenses		1.35	%		1.37	%		1.40	%		1.40	%		0.00	%
Gross expenses		3.70	%		5.38	%		7.42	%		13.34	%		91.25	%(e)
Net investment income (loss)		0.32	%		0.56	%		0.09	%		0.35	%		0.00	%
Portfolio turnover rate		34	%		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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized.
(d)	Annualized for a period of less than one year.
(e)	Gross expense ratio was the result of the Portfolio being in existence for one day during the period ended December 31, 2013.

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

88  Annual Report

LAZARD GLOBAL STRATEGIC EQUITY PORTFOLIO

										For the Period
Selected data for a share of capital	Year Ended									8/29/14* to
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	9.59		$	9.67		$	9.94		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.08			0.07			0.06			—	(b)
Net realized and unrealized gain (loss)		2.24			(0.08	)		(0.25	)		(0.04	)
Total from investment operations		2.32			(0.01	)		(0.19	)		(0.04	)
Less distributions from:
Net investment income		(0.20	)		(0.07	)		(0.08	)		(0.02	)
Net realized gains		(9.40	)		—			—			—
Return of capital		—			—			—			—	(b)
Total distributions		(9.60	)		(0.07	)		(0.08	)		(0.02	)
Net asset value, end of period	$	2.31		$	9.59		$	9.67		$	9.94
Total Return (c)		24.20	%		–0.15	%		–1.85	%		–0.36	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,750		$	19,816		$	9,254		$	7,112
Ratios to average net assets (d):
Net expenses		1.10	%		1.10	%		1.10	%		1.10	%
Gross expenses		2.06	%		2.03	%		3.83	%		7.11	%
Net investment income (loss)		0.76	%		0.76	%		0.63	%		–0.08	%
Portfolio turnover rate		65	%		67	%		65	%		24	%
										For the Period
Selected data for a share of capital	Year Ended									8/29/14* to
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	9.59		$	9.67		$	9.94		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.03			0.04			0.03			(0.01	)
Net realized and unrealized gain (loss)		2.25			(0.08	)		(0.25	)		(0.04	)
Total from investment operations		2.28			(0.04	)		(0.22	)		(0.05	)
Less distributions from:
Net investment income		(0.17	)		(0.04	)		(0.05	)		(0.01	)
Net realized gains		(9.40	)		—			—			—
Return of capital		—			—			—			—	(b)
Total distributions		(9.57	)		(0.04	)		(0.05	)		(0.01	)
Net asset value, end of period	$	2.30		$	9.59		$	9.67		$	9.94
Total Return (c)		23.72	%		–0.45	%		–2.16	%		–0.46	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	149		$	114		$	114		$	135
Ratios to average net assets (d):
Net expenses		1.41	%		1.40	%		1.40	%		1.40	%
Gross expenses		12.33	%		13.31	%		14.12	%		24.52	%
Net investment income (loss)		0.34	%		0.39	%		0.30	%		–0.32	%
Portfolio turnover rate		65	%		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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized.
(d)	Annualized for a period of less than one year.

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

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LAZARD MANAGED EQUITY VOLATILITY PORTFOLIO

							For the Period
Selected data for a share of capital	Year Ended						5/29/15* to
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15
Institutional Shares
Net asset value, beginning of period	$	9.99		$	9.59		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.19			0.18			0.09
Net realized and unrealized gain (loss)		1.87			0.44			(0.33	)
Total from investment operations		2.06			0.62			(0.24	)
Less distributions from:
Net investment income		(0.17	)		(0.22	)		(0.17	)
Net realized gains		(0.31	)		—			—
Total distributions		(0.48	)		(0.22	)		(0.17	)
Net asset value, end of period	$	11.57		$	9.99		$	9.59
Total Return (b)		20.57	%		6.45	%		–2.42	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	4,180		$	2,431		$	2,206
Ratios to average net assets (c):
Net expenses		0.75	%		0.75	%		0.75	%
Gross expenses		6.51	%		10.42	%		13.51	%
Net investment income (loss)		1.71	%		1.82	%		1.64	%
Portfolio turnover rate		87	%		91	%		56	%
							For the Period
Selected data for a share of capital	Year Ended						5/29/15* to
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15
Open Shares
Net asset value, beginning of period	$	9.99		$	9.59		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.16			0.15			0.08
Net realized and unrealized gain (loss)		1.85			0.44			(0.34	)
Total from investment operations		2.01			0.59			(0.26	)
Less distributions from:
Net investment income		(0.13	)		(0.19	)		(0.15	)
Net realized gains		(0.31	)		—			—
Total distributions		(0.44	)		(0.19	)		(0.15	)
Net asset value, end of period	$	11.56		$	9.99		$	9.59
Total Return (b)		20.11	%		6.14	%		–2.60	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	315		$	172		$	175
Ratios to average net assets (c):
Net expenses		1.05	%		1.05	%		1.05	%
Gross expenses		12.07	%		17.27	%		23.94	%
Net investment income (loss)		1.42	%		1.52	%		1.33	%
Portfolio turnover rate		87	%		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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized.
(c)	Annualized for a period of less than one year.

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

90  Annual Report

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2017

1. Organization

The Lazard Funds, Inc. 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-four 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, Equity Franchise, 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, International Equity Concentrated and Equity Franchise 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 accordance with 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—Equity securities traded on a securities exchange or market, including exchange-traded option contracts, rights and warrants, are valued at the last reported sales price (for domestic equity securities) or the closing price (for foreign equity securities) on the exchange or market on which the security is principally traded or, for securities trading on the NASDAQ National Market System

(“NASDAQ”), the NASDAQ Official Closing Price. If there is no available closing price for a foreign equity security, the last reported sales price is used. If there are no reported sales of a security on the valuation date, the security is valued at the most recent quoted bid price on such date reported by such principal exchange or market. 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. 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 New York Stock Exchange (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

Annual Report   91

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 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 and/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/or 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 adminis-

trative 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 a Portfolio’s NAV per share.

(c) 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, 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.

(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.

92  Annual Report

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, 2017, 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 2018
International Equity	$	(5,103,235	)
International Equity Select		(1,173,332	)
International Small Cap Equity		(4,306,477	)

Portfolio	Short-Term*			Long-Term*
International Equity	$	(56,646,892	)	$	—
International Equity Select		(484,131	)		—
International Equity Concentrated		(590,000	)		—
International Strategic Equity		(118,775,721	)		—
International Equity Advantage		(51,450	)		(5,029	)
International Small Cap Equity		(3	)		—

* 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, 2017, the Portfolios had no such losses to defer.

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	$	1,439,941,096	$	159,936,571	$	14,405,397	$	145,531,174
US Strategic Equity		71,118,104		14,307,202		139,326		14,167,876
US Small-Mid Cap Equity		170,669,134		27,808,945		1,910,764		25,898,181
International Equity		3,239,350,132		614,807,226		43,861,514		570,945,712
International Equity Select		48,301,325		8,855,784		607,852		8,247,932
International Equity Concentrated		62,800,662		7,462,862		656,255		6,806,607
International Strategic Equity		5,992,191,619		1,340,050,715		72,855,943		1,267,194,772
International Equity Advantage		2,332,121		353,384		42,758		310,626
International Small Cap Equity		64,061,625		20,054,718		652,615		19,402,103
Equity Franchise		5,347,165		315,689		149,189		166,500
Global Equity Select		49,787,886		9,773,762		398,617		9,375,145
Global Strategic Equity		2,452,234		452,795		25,757		427,038
Managed Equity Volatility		4,062,473		508,928		55,333		453,595

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 tax returns filed for any open tax years (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction’s statute of limitations. The Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.

(e) 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

Annual Report   93

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.

The US Equity Concentrated, US Strategic Equity and US Small-Mid Cap Equity Portfolios intend, on their 2017 tax returns, to treat as a distribution of investment company taxable income and net capital gain the portion of redemption proceeds paid to redeeming shareholders that represents the redeeming shareholders’ portion of the Portfolios’ undistributed investment company taxable income and net capital gain. This practice, which involves the use of equalization accounting, will have the effect of reducing the amount of income and gains that the Portfolios would otherwise be required to distribute as dividends to shareholders in order for the Portfolios to avoid federal income and excise taxes. This practice reduces the amount of distributions required to be made to nonredeeming shareholders and defers the recognition of taxable income by such shareholders. However, since the amount of any undistributed income will be reflected in the value of the Portfolios’ shares, the total return on a shareholder’s investment is not affected by the Portfolios’ use of equalization.

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	$	15,862,223			$	(2	)	$	(15,862,221	)
US Strategic Equity		808,100				(212	)		(807,888	)
US Small-Mid Cap Equity		3,477,444				(184,448	)		(3,292,996	)
International Equity		(8,988,349	)			893,671			(8,094,678	)
International Equity Select		(38,627	)			431			38,196
International Equity Concentrated		(130	)			(9,114	)		9,244
International Strategic Equity		4				2,112,973			(2,112,977	)
International Equity Advantage		1,474				3,080			(4,554	)
International Small Cap Equity		(45,132,663	)			311,237			44,821,426
Equity Franchise		(704	)			(3,066	)		3,770
Global Equity Select		—				15,038			(15,038	)
Global Strategic Equity		(30	)			(7,177	)		7,207
Managed Equity Volatility		—				7,466			(7,466	)

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2017		2016		2017		2016
US Equity Concentrated	$	13,853,329	$	30,745,381	$	89,718,183	$	31,879,468
US Strategic Equity		2,270,214		900,038		6,026,122		2,471,715
US Small-Mid Cap Equity		6,630,713		1,407,443		16,953,848		4,936,919
International Equity		53,700,989		17,963,112		—		—
International Equity Select		336,816		288,736		—		—
International Equity Concentrated		639,493		235,808		—		—
International Strategic Equity		90,091,459		104,294,791		—		—

94   Annual Report

	Ordinary Income				Long-Term Capital Gain
Portfolio	2017		2016		2017		2016
International Equity Advantage	$	50,226	$	43,636	$	—	$	—
International Small Cap Equity		—		2,228,708		—		—
Equity Franchise		24,314		—		—		—
Global Equity Select		444,442		219,500		1,586,359		—
Global Strategic Equity		939,034		134,097		1,509,086		—
Managed Equity Volatility		101,419		55,446		73,334		—

At December 31, 2017, 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		$  11,534,715	$	21,074,206		$	145,526,488
US Strategic Equity		451,892		1,492,302			14,167,876
US Small-Mid Cap Equity		2,397,636		893,901			25,898,181
International Equity		12,883,335		(61,750,127	)		571,021,855
International Equity Select		572,882		(1,657,463	)		8,248,699
International Equity Concentrated		4,201		(590,000	)		6,765,837
International Strategic Equity		1,141,890		(118,775,721	)		1,265,624,870
International Equity Advantage		16,965		(56,479	)		310,684
International Small Cap Equity		1,519,656		(4,306,480	)		19,403,585
Equity Franchise		36,055		—			163,959
Global Equity Select		100,979		139,524			9,361,348
Global Strategic Equity		208,419		341,743			391,703
Managed Equity Volatility		18,903		4,975			453,624

(f) Offering and Organizational Costs—Costs incurred by the Fund in connection with the offering of shares of a new Portfolio or share class of a 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 or share class. Organizational costs are expensed as incurred.

(g) Allocation of Expenses—Expenses common to the Fund, Lazard Retirement Series, Inc., Lazard Global Total Return and Income Fund, Inc. and Lazard World Dividend & Income Fund, Inc. (each a “Lazard Fund” and collectively, the “Lazard Fund Complex”), each a registered management investment company advised by the Investment Manager, not directly chargeable to one or more specific Lazard Funds are allocated to the Fund and among its Portfolios primarily on the basis of relative net assets. Expenses of the Fund not directly chargeable to one or more Portfolios are similarly allocated among the Portfolios 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 were 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

Annual Report  95

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, and provides the Portfolios with administrative, operational and compliance assistance services. 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
Equity Franchise		0.80
Global Equity Select		0.80
Global Strategic Equity		0.85
Managed Equity Volatility		0.60

The Investment Manager has voluntarily agreed, until May 1 of the year shown below (except as noted), to waive its fees and, if necessary, reimburse the Portfolios if the aggregate direct expenses of the Portfolios, exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Funds” (as defined in Form N-1A) and extraordinary expenses, 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
US Equity Concentrated		0.95	%		1.25	%		0.90	%		2018	(a)
US Strategic Equity		0.75			1.05			0.75			2018
US Small-Mid Cap Equity		1.15			1.45			N/A			2018
International Equity		0.85			1.15			0.80			2018
International Equity Select		1.05			1.35			N/A			2018	(b)
International Equity Concentrated		1.05			1.35			N/A			2018
International Strategic Equity		1.15			1.45			1.10			2018
International Equity Advantage		0.90			1.20			N/A			2018
International Small Cap Equity		1.13			1.43			N/A			2018
Equity Franchise		0.95			1.20			N/A			2019	(c)
Global Equity Select		1.05			1.35			N/A			2018
Global Strategic Equity		1.10			1.40			N/A			2018
Managed Equity Volatility		0.75			1.05			N/A			2018

(a)	Agreement extends, for May 1, 2018 through May 1, 2027, at rates of 1.10%, 1.40% and 1.05%, respectively.
(b)	Agreement extends, for May 1, 2018 through May 1, 2027, at rates of 1.15% and 1.45%, respectively.
(c)	Agreement is until September 29, 2019.

In addition to the expense limitation agreements, until May 1, 2018, to the extent the “Total Annual Portfolio Operating Expenses” (as defined in Form N-1A) of the R6 Shares of a Portfolio exceed the Total Annual Portfolio 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, 2017, 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		$  146,104		$         —		$   8,520		$  6,640
International Equity Select		109,693		—		18,022		—
International Equity Concentrated		135,023		—		1,796		11,774
International Equity Advantage		14,887		163,994		690		19,958

96  Annual Report

	Institutional Shares				Open Shares
Portfolio	Management Fees Waived		Expenses Reimbursed		Management Fees Waived		Expenses Reimbursed
Equity Franchise		$  10,591		$  63,624		$     90		$  2,118
Global Equity Select		108,452		—		4,870		9,406
Global Strategic Equity		127,341		11,094		1,073		12,664
Managed Equity Volatility		18,523		154,875		1,361		23,321

	R6 Shares
Portfolio	Management Fees Waived	Expenses Reimbursed
US Equity Concentrated	$   1,799	$ 13,649
US Strategic Equity	33,436	—
International Equity	58,141	—
International Strategic Equity	20,012	—

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

State Street provides the Fund with custody and certain fund administration and accounting services. For the year ended December 31, 2017, State Street waived its fund administration fee as follows:

Portfolio	Amount
International Equity Advantage		$4,688
Global Strategic Equity		4,688
Managed Equity Volatility		4,688

In December 2015, State Street announced that it had identified inconsistencies in the way in which clients were invoiced for custody out-of-pocket expenses from 1998 until 2015. The dollar amount difference between what was charged and what should have been charged, plus interest, was recorded as a reimbursement when determined in 2016. Pursuant to the expense limitations described above, certain Portfolios 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, 2017, BFDS waived its fees as follows:

Portfolio	Amount
US Equity Concentrated		$4,050
Equity Franchise		6,112

On January 1, 2018, BFDS changed its name to DST Asset Manager Solutions, Inc.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2017, each Director who is not an affiliated person of the Investment Manager or any of its affiliates was paid by the Lazard Fund Complex: (1) an annual retainer of $210,000, (2) an additional annual fee of $30,000 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 $20,000 to the Audit Committee Chair. Effective January 1, 2018, the aggregate compensation for Independent Directors for the Lazard Fund Complex is comprised of: (1) an annual retainer of $225,000, (2) an additional annual fee of $32,500 to the lead Independent Director, and (3) an additional annual fee of $22,500 to the Audit Committee Chair.

Annual Report  97

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, 2017 were as follows:

Portfolio	Purchases		Sales
US Equity Concentrated	$	1,320,331,255	$	1,265,831,671
US Strategic Equity		61,819,985		76,790,176
US Small-Mid Cap Equity		162,051,905		206,339,623
International Equity		1,573,627,047		1,020,440,735
International Equity Select		28,573,602		12,860,744
International Equity Concentrated		80,709,010		35,859,494
International Strategic Equity		2,927,005,955		4,217,312,411
International Equity Advantage		2,180,740		2,100,378
International Small Cap Equity		27,683,377		50,998,776
Equity Franchise		5,660,424		535,067
Global Equity Select		31,374,762		14,524,452
Global Strategic Equity		8,977,410		28,362,971
Managed Equity Volatility		3,988,233		2,875,345

For the year ended December 31, 2017, 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, 2017, the Investment Manager owned 87.91%, 91.82%, 92.67% and 55.70% of the outstanding shares of the International Equity Advantage, Equity Franchise, Global Strategic Equity 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 is 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, 2017, 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		$862,500		$1,700,000		1.85	%		2
International Equity Concentrated		675,875		1,800,000		1.78			8
International Equity Advantage		13,000		15,000		2.07			2
International Small Cap Equity		571,208		2,910,000		2.10			37
Global Equity Select		609,500		1,200,000		1.85			2
Global Strategic Equity		602,473		1,174,000		2.38			11
Managed Equity Volatility		5,036		11,500		1.78			11

* 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 balance on the 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.

98  Annual Report

(b) Emerging Market Risk—Emerging market countries 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. A Portfolio’s currency investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies. The Investment Manager does not intend to actively hedge the Portfolios’ foreign currency exposure.

(d) Non-Diversification Risk—A Portfolio’s NAV may be more vulnerable to changes in the market value of a single issuer or group of issuers and may be relatively more susceptible to adverse effects from any single corporate, industry, economic, market, political or regulatory occurrence than if the Portfolio’s investments consisted of securities issued by a larger number of issuers.

8. Contractual Obligations

The Fund enters into contracts in the normal course of business that contain a variety of indemnification provisions. 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. The fair value measurement level within the fair value hierarchy for the assets and liabilities of the Fund 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 assets and liabilities, interest rates, prepayment speeds, credit risk, etc.)

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

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  99

The following table summarizes the valuation of the Portfolios’ assets and liabilities by each fair value hierarchy level as of December 31, 2017:

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, 2017
US Equity Concentrated Portfolio
Common Stocks*	$	1,455,436,146	$	—	$	—	$	1,455,436,146
Short-Term Investments		130,036,124		—		—		130,036,124
Total	$	1,585,472,270	$	—	$	—	$	1,585,472,270
US Strategic Equity Portfolio
Common Stocks*	$	83,338,608	$	—	$	—	$	83,338,608
Short-Term Investments		1,947,372		—		—		1,947,372
Total	$	85,285,980	$	—	$	—	$	85,285,980
US Small-Mid Cap Equity Portfolio
Common Stocks*	$	196,567,315	$	—	$	—	$	196,567,315
Total	$	196,567,315	$	—	$	—	$	196,567,315
International Equity Portfolio
Common Stocks*
Australia	$	—	$	120,764,025	$	—	$	120,764,025
Belgium		—		94,157,830		—		94,157,830
Brazil		—		33,251,044		—		33,251,044
Canada		168,658,196		—		—		168,658,196
Denmark		—		96,769,196		—		96,769,196
Finland		—		55,464,485		—		55,464,485
France		—		401,811,658		—		401,811,658
Germany		—		161,272,781		—		161,272,781
Ireland		49,421,380		86,414,141		—		135,835,521
Italy		—		26,287,381		—		26,287,381
Japan		—		700,998,232		—		700,998,232
Luxembourg		—		24,869,256		—		24,869,256
Netherlands		—		260,076,542		—		260,076,542
Norway		—		108,893,241		—		108,893,241
Singapore		—		92,046,440		—		92,046,440
Spain		—		63,524,272		—		63,524,272
Sweden		—		129,983,661		—		129,983,661
Switzerland		—		248,567,314		—		248,567,314
Taiwan		56,176,120		—		—		56,176,120
Turkey		—		41,141,803		—		41,141,803
United Kingdom		—		552,566,233		—		552,566,233
United States		152,555,383		—		—		152,555,383
Short-Term Investments		84,623,777		—		—		84,623,777
Total	$	511,434,856	$	3,298,859,535	$	—	$	3,810,294,391

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, 2017
International Equity Select Portfolio
Common Stocks*
Australia	$	—	$	1,062,270	$	—	$	1,062,270
Belgium		—		959,268		—		959,268
Brazil		—		1,730,549		—		1,730,549
Canada		1,446,436		—		—		1,446,436
China		—		2,034,484		—		2,034,484
Denmark		—		983,244		—		983,244
Finland		—		1,159,412		—		1,159,412
France		—		3,430,869		—		3,430,869
Germany		—		2,795,095		—		2,795,095
India		742,934		—		—		742,934
Indonesia		973,302		—		—		973,302
Ireland		664,941		1,115,688		—		1,780,629
Japan		—		7,403,775		—		7,403,775
Netherlands		—		2,899,065		—		2,899,065
Norway		—		1,558,383		—		1,558,383
Philippines		—		352,384		—		352,384
Russia		633,876		—		—		633,876
Singapore		—		959,117		—		959,117
South Africa		—		1,194,891		—		1,194,891
South Korea		—		1,342,341		—		1,342,341
Spain		—		741,443		—		741,443
Sweden		—		1,638,821		—		1,638,821
Switzerland		—		2,939,195		—		2,939,195
Taiwan		—		1,662,378		—		1,662,378
Thailand		—		597,845		—		597,845
Turkey		—		1,310,455		—		1,310,455
United Kingdom		—		7,103,482		—		7,103,482
United States		3,377,249		—		—		3,377,249
Short-Term Investments		1,736,057		—		—		1,736,057
Total	$	9,574,795	$	46,974,454	$	—	$	56,549,249
International Equity Concentrated Portfolio
Common Stocks*
Australia	$	—	$	1,876,337	$	—	$	1,876,337
Belgium		—		2,803,741		—		2,803,741
Brazil		—		1,308,077		—		1,308,077
Canada		5,936,213		—		—		5,936,213
China		—		3,702,291		—		3,702,291
Finland		—		715,465		—		715,465
France		—		9,831,068		—		9,831,068
Germany		—		1,950,947		—		1,950,947
India		1,382,049		—		—		1,382,049
Ireland		—		3,577,983		—		3,577,983
Japan		—		7,272,352		—		7,272,352
Netherlands		—		3,819,138		—		3,819,138
South Korea		—		2,772,587		—		2,772,587
Taiwan		2,839,614		—		—		2,839,614
Turkey		—		2,501,697		—		2,501,697
United Kingdom		—		11,040,859		—		11,040,859
United States		4,852,622		—		—		4,852,622
Short-Term Investments		1,424,227		—		—		1,424,227
Total	$	16,434,725	$	53,172,542	$	—	$	69,607,267

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, 2017
International Strategic Equity Portfolio
Common Stocks*
Brazil	$	—	$	54,541,456	$	—	$	54,541,456
Canada		455,635,186		—		—		455,635,186
China		78,110,790		173,781,380		—		251,892,170
Denmark		—		150,951,722		—		150,951,722
Finland		—		289,594,126		—		289,594,126
France		—		502,247,404		—		502,247,404
Germany		—		178,545,263		—		178,545,263
India		—		80,939,321		—		80,939,321
Indonesia		—		8,877,206		—		8,877,206
Ireland		—		370,418,638		—		370,418,638
Italy		—		68,745,377		—		68,745,377
Japan		—		1,467,800,647		—		1,467,800,647
Luxembourg		—		73,310,509		—		73,310,509
Netherlands		—		198,412,986		—		198,412,986
New Zealand		—		68,888,309		—		68,888,309
Norway		—		151,379,101		—		151,379,101
Philippines		—		65,015,552		—		65,015,552
Singapore		—		139,127,509		—		139,127,509
Spain		—		59,515,933		—		59,515,933
Sweden		—		194,512,623		—		194,512,623
Switzerland		—		355,619,068		—		355,619,068
Taiwan		—		115,268,648		—		115,268,648
United Kingdom		—		1,318,806,643		—		1,318,806,643
United States		344,463,829		—		—		344,463,829
Short-Term Investments		294,877,528		—		—		294,877,528
Total	$	1,173,087,333	$	6,086,299,421	$	—	$	7,259,386,754
International Equity Advantage Portfolio
Common Stocks*
Australia	$	—	$	177,358	$	—	$	177,358
Belgium		—		4,559		—		4,559
Denmark		—		73,965		—		73,965
Faeroe Islands		—		5,022		—		5,022
France		—		247,405		—		247,405
Germany		—		291,638		—		291,638
Hong Kong		28,370		59,346		—		87,716
Italy		—		43,800		—		43,800
Japan		11,617		667,036		—		678,653
Luxembourg		—		13,526		—		13,526
Netherlands		—		93,334		—		93,334
New Zealand		—		7,079		—		7,079
Norway		—		76,605		—		76,605
Portugal		—		8,972		—		8,972
Russia		—		11,459		—		11,459
Singapore		—		35,947		—		35,947
Spain		—		71,137		—		71,137
Sweden		—		78,847		—		78,847
Switzerland		—		195,764		—		195,764
United Kingdom		—		392,245		—		392,245
United States		11,215		17,292		—		28,507
Short-Term Investments		19,209		—		—		19,209
Total	$	70,411	$	2,572,336	$	—	$	2,642,747

102  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, 2017
International Small Cap Equity Portfolio
Common Stocks*
Australia	$	—	$	4,500,616	$	—	$	4,500,616
Belgium		—		1,262,793		—		1,262,793
Canada		3,235,492		—		—		3,235,492
Denmark		—		628,723		—		628,723
France		—		1,065,184		—		1,065,184
Germany		—		7,703,018		—		7,703,018
Hong Kong		—		593,144		—		593,144
Ireland		—		2,265,051		—		2,265,051
Israel		733,504		857,178		—		1,590,682
Italy		—		2,033,703		—		2,033,703
Japan		—		22,404,539		—		22,404,539
Luxembourg		—		1,278,418		—		1,278,418
Netherlands		—		886,523		—		886,523
New Zealand		—		730,235		—		730,235
Portugal		—		708,715		—		708,715
Singapore		—		2,073,271		—		2,073,271
South Korea		—		472,868		—		472,868
Spain		—		940,143		—		940,143
Sweden		—		5,824,227		—		5,824,227
Switzerland		—		1,060,573		—		1,060,573
Taiwan		519,273		1,139,664		—		1,658,937
Turkey		—		205,340		—		205,340
United Kingdom		—		15,778,642		—		15,778,642
United States		707,693		864,033		—		1,571,726
Short-Term Investments		2,991,165		—		—		2,991,165
Total	$	8,187,127	$	75,276,601	$	—	$	83,463,728
Equity Franchise Portfolio
Common Stocks*
Australia	$	—	$	223,321	$	—	$	223,321
France		—		139,101		—		139,101
Italy		—		386,830		—		386,830
Japan		—		115,645		—		115,645
Luxembourg		—		277,048		—		277,048
United Kingdom		—		114,811		—		114,811
United States		4,076,620		—		—		4,076,620
Short-Term Investments		180,289		—		—		180,289
Total	$	4,256,909	$	1,256,756	$	—	$	5,513,665

Annual Report  103

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, 2017
Global Equity Select Portfolio
Common Stocks*
Australia	$	—	$	570,608	$	—	$	570,608
Brazil		—		1,017,543		—		1,017,543
Canada		2,388,596		—		—		2,388,596
China		469,009		859,171		—		1,328,180
Denmark		—		716,023		—		716,023
Finland		—		549,574		—		549,574
France		—		664,794		—		664,794
Germany		—		1,718,630		—		1,718,630
Hong Kong		—		912,061		—		912,061
India		—		335,848		—		335,848
Ireland		—		867,965		—		867,965
Israel		—		459,843		—		459,843
Japan		—		4,321,614		—		4,321,614
Netherlands		—		962,531		—		962,531
Singapore		—		610,696		—		610,696
South Africa		—		499,673		—		499,673
Sweden		—		1,618,342		—		1,618,342
Switzerland		—		498,939		—		498,939
Taiwan		580,476		—		—		580,476
United Kingdom		642,183		5,698,746		—		6,340,929
United States		30,369,099		—		—		30,369,099
Short-Term Investments		1,831,358		—		—		1,831,358
Total	$	36,280,721	$	22,882,601	$	—	$	59,163,322
Global Strategic Equity Portfolio
Common Stocks*
Canada	$	37,522	$	—	$	—	$	37,522
China		74,835		—		—		74,835
Denmark		—		51,640		—		51,640
Finland		—		62,077		—		62,077
France		—		123,020		—		123,020
Germany		—		60,917		—		60,917
Greece		—		151		—		151
Hong Kong		—		110,288		—		110,288
Indonesia		—		8,959		—		8,959
Ireland		—		50,209		—		50,209
Israel		—		43,318		—		43,318
Japan		—		179,392		—		179,392
Netherlands		—		27,770		—		27,770
New Zealand		—		28,568		—		28,568
Singapore		—		21,287		—		21,287
South Africa		—		113,884		—		113,884
Switzerland		—		42,485		—		42,485
Taiwan		56,739		—		—		56,739
United Kingdom		—		292,601		—		292,601
United States		1,493,599		—		—		1,493,599
Short-Term Investments		607		—		—		607
Total	$	1,663,302	$	1,216,566	$	—	$	2,879,868

104  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, 2017
Managed Equity Volatility Portfolio
Common Stocks*
Australia	$	—	$	274,278	$	—	$	274,278
Belgium		—		14,311		—		14,311
Canada		315,890		—		—		315,890
Denmark		—		52,495		—		52,495
France		—		32,879		—		32,879
Germany		—		55,061		—		55,061
Hong Kong		13,038		104,128		—		117,166
Israel		—		20,184		—		20,184
Japan		—		486,238		—		486,238
Luxembourg		—		11,582		—		11,582
Malta		—		12,530		—		12,530
Netherlands		—		45,729		—		45,729
New Zealand		—		26,094		—		26,094
Norway		—		141,261		—		141,261
Singapore		—		79,869		—		79,869
Spain		—		4,690		—		4,690
Sweden		—		55,347		—		55,347
Switzerland		—		57,508		—		57,508
United Kingdom		—		133,797		—		133,797
United States		2,354,743		24,722		—		2,379,465
Short-Term Investments		199,694		—		—		199,694
Total	$	2,883,365	$	1,632,703	$	—	$	4,516,068

* Please refer to Portfolios of Investments and Notes to Portfolios of Investments for portfolio holdings by country and industry.

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, Equity Franchise, 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, 2017, securities valued at the following amounts were transferred from Level 1 to Level 2:

Portfolio		Amount
International Equity	$	100,890,974
International Equity Select		1,216,849
International Strategic Equity		86,989,436
International Equity Advantage		159,288
International Small Cap Equity		1,123,114
Global Equity Select		37,593
Managed Equity Volatility		56,576

There were no other transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 2017.

For further information regarding security characteristics see Portfolios of Investments.

Annual Report  105

10. Subsequent Events

Management has evaluated subsequent events affecting the Fund through the issuance of the financial statements and has determined that, aside from items previously disclosed within the Notes to Financial Statements and the following, there were no subsequent events that required adjustment or disclosure.

Subsequent to December 31, 2017, the International Equity, International Equity Select, International Strategic Equity and International Small Cap Equity Portfolios received settlement proceeds in the amount of $4,045,340, $363, $24,287 and $365,412, respectively, from a foreign exchange trading class action lawsuit. The proceeds from the settlement represent a realized gain and were recorded in the period received.

106  Annual Report

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

To the Board of Directors of The Lazard Funds, Inc. and Shareholders of Lazard 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 Equity Franchise Portfolio, Lazard Global Equity Select Portfolio, Lazard Global Strategic Equity Portfolio, and Lazard Managed Equity Volatility Portfolio:

Opinion on the Financial Statements and Financial Highlights

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, twelve of the portfolios constituting The Lazard Funds, Inc. (the “Fund”), as of December 31, 2017, 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, the financial highlights for each of the four years in the period then ended, and the related notes to the financial statements. The financial highlights for the year ended December 31, 2013 were audited by other auditors whose report, dated February 28, 2014, expressed an unqualified opinion on those financial highlights. We have also audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Lazard Equity Franchise Portfolio, one of the portfolios constituting the Fund, (collectively with the portfolios mentioned above, the “Portfolios”), as of December 31, 2017, the related statements of operations and changes in net assets and the financial highlights for the period from September 29, 2017 (commencement of operations) through December 31, 2017, and the related notes to the financial statements. In our opinion, the financial statements and financial highlights 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, and Lazard Managed Equity Volatility Portfolio, as of December 31, 2017, and 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 four years in the period then ended, and the financial position of Lazard Equity Franchise Portfolio, as of December 31, 2017, and the results of its operations, the changes in its net assets and the financial highlights for the period from September 29, 2017 (commencement of operations) through December 31, 2017, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolios’ management. Our responsibility is to express an opinion on the Portfolios’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolios in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Portfolios are not required to

Annual Report  107

have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2017, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

New York, New York

February 28, 2018

We have served as the auditor of one or more Lazard Fund Complex investment companies since 2004.

108  Annual Report

The Lazard Funds, Inc. Proxy Voting Results (unaudited)

A Joint Special Meeting of Shareholders of the Fund and Lazard Retirement Series, Inc. was held on October 20, 2017, to vote on the following proposals. Except as noted below, the proposals received the required number of votes of shareholders and were adopted.

Proposal 1:

To elect each of Franci J. Blassberg, Trevor W. Morrison and Nathan A. Paul as a Fund Director.

Director	For		Withhold Authority
Franci J. Blassberg		1,322,185,144		18,431,907
Trevor W. Morrison		1,323,575,840		17,041,212
Nathan A. Paul		1,331,727,319		8,889,732

Proposal 2A:

To approve revising the Portfolio's fundamental investment restrictions on issuing senior securities, borrowing and pledging or mortgaging its assets.

Portfolio	For		Against		Abstain
US Equity Concentrated		55,236,561		275,958		233,215
US Strategic Equity		5,117,457		832		720
US Small-Mid Cap Equity*		4,938,201		3,948,804		14,691
International Equity		100,274,564		185,666		189,973
International Equity Select		3,144,596		16,924		19,954
International Strategic Equity		187,361,095		4,238,688		1,845,962
International Small Cap Equity*		2,302,579		45,455		28,372
Global Equity Select		3,385,435		—		—

Proposal 2B:

To approve revising the Portfolio's fundamental investment restrictions on purchasing or selling commodities or commodities contracts.

Portfolio	For		Against		Abstain
US Equity Concentrated		55,055,031		462,210		228,492
US Strategic Equity		5,117,457		832		720
US Small-Mid Cap Equity*		4,944,266		3,943,838		13,592
International Equity		100,118,436		328,470		203,297
International Equity Select		3,146,192		15,328		19,954
International Strategic Equity		187,529,405		4,056,768		1,859,570
International Small Cap Equity*		2,298,290		43,817		34,300
Global Equity Select		3,385,435		—		—

Annual Report  109

Proposal 2C:

To approve revising the Portfolio’s fundamental investment restriction on purchasing securities on margin.

Portfolio	For		Against		Abstain		.
US Equity Concentrated		55,193,901		324,529		227,303
US Strategic Equity		5,116,160		2,128		720
US Small-Mid Cap Equity*		4,887,129		3,989,025		25,542
International Equity		100,208,767		226,669		214,766
International Equity Select		3,145,703		15,817		19,954
International Strategic Equity*		181,069,100		10,516,293		1,860,351
International Small Cap Equity*		2,285,195		57,729		33,483
Global Equity Select		401,762		—		—

Proposal 2D:

To approve removing the Portfolio’s fundamental investment restriction on short sales of securities.

Portfolio	For		Against		Abstain
US Small-Mid Cap Equity*		4,934,675		3,948,536		18,484
International Equity		100,071,855		367,950		210,397
International Small Cap Equity*		2,272,254		61,042		43,110

Proposal 2E:

To approve removing the Portfolio’s fundamental investment restriction on investing in illiquid securities.

Portfolio	For		Against		Abstain
US Small-Mid Cap Equity*		4,899,822		3,985,324		16,550
International Equity		100,035,147		398,645		216,410
International Small Cap Equity*		2,269,258		58,888		48,261

Proposal 2F:

To approve removing the Portfolio’s fundamental investment restriction on investing in other investment companies.

Portfolio	For		Against		Abstain
US Small-Mid Cap Equity*		4,935,292		3,945,794		20,609
International Equity		100,080,218		349,789		220,195

* Proposal did not receive the required number of votes of shareholders and was not adopted.

110  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 (64)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present)
		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 (72)	Director (August 1995)	Davidson Capital Management Corporation, an investment manager, President (1978 – present)
		Landseer Advisors LLC, an investment manager, Senior Advisor (2012 – 2014)
Nancy A. Eckl (55)	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)
Trevor W. Morrison (46)	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. (73)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		Resource Americas, Inc., a real estate asset management company, Director (2016 – present)
Robert M. Solmson (70)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

Annual Report  111

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):
Ashish Bhutani (57)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present)
		Lazard Ltd, Vice Chairman and Director (2010 – present)
Nathan A. Paul (45)	Director (October 2017) Chief Executive Officer and President (February 2017)	Investment Manager, Chief Business Officer (April 2017 – present) and Managing Director (2003 – present)
		Investment Manager, General Counsel (2002 – April 2017)

(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, 2018, 41 active investment portfolios). Each Director serves an indefinite term, until his or her successor is elected, and each Director serves in the same capacity for the other funds in the Lazard Fund Complex.
(3)	“Independent Directors” are not “interested persons” (as defined in the 1940 Act) of the Fund.
(4)	Messrs. Bhutani and Paul 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.lazardassetmanagement.com.

112  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):
Mark R. Anderson (47)	Chief Compliance Officer (September 2014), Vice President and Secretary (February 2017)	Managing Director (since February 2017, previously Director), General Counsel (since April 2017) and Chief Compliance Officer (since September 2014) of the Investment Manager
		Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014)
Christopher Snively (33)	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 (59)	Treasurer (May 2003)	Vice President of the Investment Manager
Tamar Goldstein (42)	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 (36)	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 (43)	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 Nathan A. Paul, Chief Executive Officer and President (since February 2017; previously, Vice President and Secretary since April 2002), whose information is included in the Interested Directors section above.

Annual Report  113

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

Tax Information

Year Ended December 31, 2017

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2017:

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

Portfolio	Percentage
US Equity Concentrated	100.00	%
US Strategic Equity	57.70
US Small-Mid Cap Equity	32.80
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	—
Equity Franchise	100.00
Global Equity Select	100.00
Global Strategic Equity	31.43
Managed Equity Volatility	73.88

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	85.89	%
US Strategic Equity	64.57
US Small-Mid Cap Equity	23.20
International Equity	—
International Equity Select	—
International Equity Concentrated	—
International Strategic Equity	—
International Equity Advantage	—
International Small Cap Equity	—
Equity Franchise	25.30
Global Equity Select	44.01
Global Strategic Equity	8.57
Managed Equity Volatility	27.84

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 U.S. Securities and Exchange Commission (the “SEC”) website at https://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 https://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 https://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 Equity Franchise Portfolio

At a meeting of the Board held on August 8, 2017, the Board considered the approval of the Management Agreement between the Fund, on behalf of Lazard Equity Franchise 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.

114  Annual Report

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 40 active funds comprised approximately $35 billion of the approximately $226 billion of total assets under the management of the Investment Manager and its global affiliates as of June 30, 2017); 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.

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 $35 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. They noted the methodology and assumptions used by Strategic Insight.

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 (“net”)) and the comparisons provided by Strategic Insight, which compared the contractual (gross) advisory fee and net expense ratios for the New Portfolio to its respective groups⁽¹⁾ of comparison funds (“Groups”). 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 other pooled vehicles advised by the Investment Manager with investment objectives, policies and strategies similar to those of the New Portfolio (the “Equity Franchise Other Accounts”).

Performance. The Directors considered the performance of the Equity Franchise Other Accounts compared to the MSCI World Index (the “Index”) for the one-year, three-year and since inception periods ended June 30, 2017; the second quarter of 2017; year-to-date through June 30, 2017; and calendar years 2014, 2015 and 2016. The performance of the Equity Franchise Other Accounts (net of fees) was above that of the Index for all periods, and with slightly lower volatility (since inception) than the Index.

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

⁽¹⁾ The New Portfolio has two comparison groups, corresponding to Open and Institutional Shares.

Annual Report  115

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 reviewed with the Board information provided on the Investment Manager’s brokerage and soft dollar practices. The Investment Manager’s representatives stated that neither the Investment Manager nor its affiliates were expected to receive any other significant indirect benefits from the Investment Manager acting as investment adviser to the New Portfolio. 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 record-keeping services, and noted that the New Portfolio would not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the New Portfolio’s Open Shares.

At the conclusion of these discussions, each of the Directors expressed the opinion that he or she had been furnished with 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 $226 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 fees to be paid to the Investment Manager were appropriate in light of the totality of the services to be provided as 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.

116  Annual Report

The Lazard Funds, Inc.

30 Rockefeller Plaza

New York, New York 10112-6300
Telephone: 800-823-6300
https://www.lazardassetmanagement.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

DST Asset Manager Solutions, 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

Proskauer Rose LLP
Eleven Times Square
New York, New York 10036-8299
http://www.proskauer.com

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

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

LZDPS020

 

Lazard Funds Annual Report

December 31, 2017

Fixed Income Funds

Lazard US Corporate Income Portfolio

Lazard US Short Duration Fixed Income Portfolio

Lazard Global Fixed Income Portfolio

PRIVACY NOTICE

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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
25	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	Proxy Voting Results
49	Board of Directors and Officers Information
52	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.lazardassetmanagement.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,

Record high global stock prices were supported by synchronized global economic growth in 2017. Markets also benefited from benign inflation, accommodative central bank policy, and strong corporate profits. Volatility remained at historic lows despite tension between North Korea and the United States and political uncertainty in Brazil, Spain, and the United Kingdom.

Emerging markets equity and debt advanced strongly in 2017. Emerging markets continued to benefit from low inflation, modest but steady growth, and improving profitability as global demand recovers and businesses tighten fiscal discipline. Earnings improvement in China and Korea drove returns in emerging markets. While our outlook for the asset class remains positive, our emerging markets investment teams are vigilant about potential risks. This includes an increase in developed markets inflation that could lead to central banks raising rates too quickly and, in effect, a global growth slowdown.

European equity markets performed well in 2017 as the region’s economic recovery deepened and investors grew more confident in its underlying strength. During the year, a market-friendly result to France’s presidential election helped buoy European sentiment. UK equities generated solid absolute returns amid a challenging political backdrop and Brexit negotiations. In addition, the European Central Bank announced that it would extend its monthly bond-buying program into 2018, but plans to reduce the pace of these purchases.

The US economy also advanced strongly during 2017. A new US tax bill represented one of the most significant changes to the US tax code in over 30 years as it changes individual, corporate, and international taxes. The US yield curve continued to flatten as short-term rates moved higher, driven by the three US rate hikes during 2017 and the prospect of additional hikes in 2018.

We are privileged that you have turned to Lazard for your investment needs and value your continued confidence in our investment management capabilities. Be assured that our specialist investment teams, supported by our global infrastructure, are continuing to strive for the long-term patterns of performance that you expect.

Sincerely,

Lazard Asset Management LLC

2  Annual Report

The Lazard Funds, Inc. Investment Overviews

US Corporate Income

An improving US economy, low global yields, US tax reform, and supportive commodity prices all helped make the high yield market’s return among the best-performing fixed income assets in 2017. The market’s strong performance was led by lower-tier companies. Prices for CCC rated and distressed securities all generated outsized returns. The ICE BofAML BB-B US Cash Pay Non-Distressed High Yield^® Index (the “Cash Pay Index”) returned 7.03%, outperforming the investment grade corporate sector, which returned 6.48%, the Bloomberg Barclays US Aggregate^® Index, which returned 3.54%, and intermediate US Treasuries, which returned 1.79%. Equities outperformed all domestic bond markets, with the S&P 500^® Index returning 21.83%.

High yield market spreads narrowed by 55 basis points (bps) during the year to 359 bps over Treasuries. The CCC rated sector narrowed 102 bps to 830 bps and the BB rated sector narrowed 53 bps to 218 bps. The B rated sector, which narrowed the least of the rating sectors at 41 bps, now stands at 369 bps over Treasuries. The yield on the ICE BofAML 3-7 year US Treasury^® Index increased 15 bps, ending at 2.27% on December 31, 2017. For the year, high yield mutual fund market flows were negative, totaling about $20.3 billion. This compares unfavorably to the $9.6 billion that was added in 2016. New US high yield bond issuance was higher at $328 billion for the year versus $286 billion in 2016. 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 3.0% as of December 31, 2017, down from 5.1% in December 2016.

US Short Duration Fixed Income

The Federal Reserve (the “Fed”) continued on their path of removing monetary stimulus based on the stabilization of the US economy and the resurgence of synchronized growth globally. Risk assets lifted with equity and credit markets rising at the expense of sovereigns.

The market took comfort in the selection of Jerome Powell as Chairman of the Fed, succeeding Janet

Yellen. Powell’s direct experience at the Fed, the Treasury, and in the private sector, particularly during tumultuous market events, served to allay market fears that the Fed would change course from its current data-induced focus on financial stability. With this market tail risk removed, the Federal Open Market Committee (FOMC) is expected to continue on the path to “normalization” with respect to monetary policy and reducing its balance sheet, in line with Janet Yellen’s original prescribed vision.

The Fed has already begun to reduce the size of its balance sheet, by allowing $6 billion of Treasuries and $4 billion of mortgage-backed securities to mature without reinvesting the principal coupled with raising interest rates. Despite the concerns that unwinding quantitative easing (QE) will have unforeseen consequences, we continue to believe its impact on rates and markets will not be significant. Today’s economic and market circumstances are fundamentally different from those that existed when QE was implemented. From an economic perspective, the absolute amount required to be trimmed to bring normalcy back to the Fed’s balance sheet has declined materially as economic growth has continued to increase the currency in circulation. From a market perspective, the size of the Fed’s holdings relative to the market has also declined, dampening the potential for an out-sized supply-induced market event. Lastly, the Fed’s plan for balance sheet reduction was announced several months ago receiving little price reaction. In theory, the fear of the plan’s announcement should have a greater impact on markets than its execution.

On the rate front, the FOMC continues to indicate that the meeting participants still anticipate three additional rate hikes in 2018. We concur with the Fed’s 2018 forecasted rate increases at this stage in the tightening cycle but differ on the terminal rate. Currently, our expectations call for the Fed Funds rate to peak at 2% versus 3%. Nevertheless, we will pay close attention to the economic data in the coming year to look for significant changes and their possible impact on monetary policy, particularly in light of the tax reform bill that passed in December.

Annual Report  3

Global Fixed Income

The global economy ended 2017 on a strong note, fueled by a supportive monetary and fiscal policy environment, solid labor markets, robust global trade and manufacturing activity, and benign inflation in many countries. Interest rate movements were relatively subdued toward year-end, as rate markets in parts of Europe and the United States sold off slightly given exceptionally strong economic growth reports in these regions. German export and inflation data continued to surge, which helped the economies of Germany’s neighboring countries, especially in eastern Europe.

During the fourth quarter, Jerome Powell was named to succeed Janet Yellen as Fed Chair and he is widely expected to maintain current Fed policy. The European Central Bank (ECB) also announced that it would extend its quantitative easing program through September 2018, lowering the amount of its monthly bond purchases to 30 billion euro. Our analysis suggests that technical factors will present difficulties for the proposed ECB bond buying. (Collectively, approximately 300 billion euro in capacity remains.)

Synchronized global growth and stable inflation supported risk appetite during the year (more so in equities than fixed income) as did the passage of US tax reform. This improved sentiment helped many smaller markets around the world, except for countries such as Venezuela and Turkey, which experienced events that were generally negative for interest rates and flows in these regions.

Global credit sectors and spreads continued their march forward, underpinned by strong investor demand and capital inflows, along with generally robust equity markets. The global sovereign and corporate issuance markets were active, and a variety of higher and lower-quality credits came to market, possibly a result of issuers taking advantage of the relatively stable environment. Argentina’s issuance of a “Century” bond (100-year maturity) at a 7.9% yield was evidence of the current upbeat mood. Having defaulted seven times over the past 200 years, with the most recent default occurring in 2001, Argentina garnered over $10 billion in orders for its $2.75 billion sovereign bond issuance. Greece also issued its first bond since

2014. This five-year maturity bond yielded 4.625% and was snapped up by investors who viewed this development as a sign of fiscal progress for the country. Also striking was an inaugural issue for Tajikistan, a B-rated sovereign credit, which raised $1 billion at a yield of 7.125%. In emerging markets, e-commerce company Alibaba received $46 billion of orders for its $7 billion bond sale, the biggest Chinese corporate offering of 2017. AT&T drew attention with a large corporate issuance of $15 billion, which will help the company finance its recent purchase of Time Warner.

Currency markets yielded mixed results in 2017 as interest rate differentials, inflation trends, politics, and idiosyncratic events influenced price action. The US dollar weakened overall for the year despite progress on US tax reforms and stronger economic data, which propelled the dollar higher in October. Among the reasons for the dollar’s weakening was shifting and more hawkish rhetoric from many central banks, including in Europe, Canada, and the United Kingdom.

Earlier in the year, the Mexican peso surged over 10% versus the dollar, recouping much of its losses in late 2016 following the US election. The Mexican central bank has taken a proactive stance to combat inflation pressures through aggressive rate hikes, in addition to expressing a preference for some currency appreciation. Other currencies also produced mid-to-high single-digit gains versus the dollar in the first quarter, and included select Asian currencies and the Australian dollar and Polish zloty.

Idiosyncratic factors drove currency markets in the second and third quarters, especially in Latin America. Unexpected corruption charges against President of Brazil Michel Temer dragged the real lower by more than 6% on an intra-day basis, with the currency later recovering to end the year down less than 2%.The Argentine peso was one of the worst performers, losing almost 15% versus the US dollar over the full year.

Major currencies including the euro, Japanese yen, and British pound strengthened slightly in the fourth quarter. For the year, they respectively gained 14.2%, 3.8%, and 9.5% versus the dollar. We believe the euro’s strength is supported by the ECB’s pivot toward

4  Annual Report

a reduction of monetary stimulus in 2018, with the Swedish krona and Norwegian krone similarly benefiting. The Japanese yen is supported by rapidly improving growth metrics, a slight shift in monetary policy rhetoric, and supportive technical factors. Japanese inflation, however, continues to be disappointing. As such, we do not believe the Bank of Japan is close to monetary policy “escape velocity.”

Lazard US Corporate Income Portfolio

For the year ended December 31, 2017, the Lazard US Corporate Income Portfolio’s Institutional Shares posted a total return of 5.09%, while Open Shares posted a total return of 4.77%, and R6 Shares posted a total return of 5.09%, as compared with the 7.03% return for the Cash Pay Index.

The Portfolio underperformed during the year due, in part, to its higher-quality focus relative to the Cash Pay Index. The overweight position in BB rated securities and underweight in B rated securities detracted from performance. Also, the Portfolio’s shorter maturity structure relative to the Cash Pay Index hurt performance. The Portfolio’s effective duration is approximately 3.7 years as compared to the Cash Pay Index duration of 4.2 years. Performance was helped by overweight positions in the leisure, services, and media sectors.

Performance was hurt by underweight positions in banking and building/construction. An underweight position in the utilities sector also detracted from performance. Throughout the market volatility of the past few years, we have maintained our credit discipline. As of December 31, 2017, approximately 76% of the holdings by market value were rated BB- or better by Standard & Poor’s and 90% were rated B+ or better.

Lazard US Short Duration Fixed Income Portfolio

For the year ended December 31, 2017, the Lazard US Short Duration Fixed Income Portfolio’s Institutional Shares posted a total return of 0.72%, while Open Shares posted a total return of 0.32%, as compared with the 0.42% return for the ICE BofAML 1–3 Year US Treasury^® Index.

Underweighting the 2–3 year segment of the yield curve helped performance. Overweighting to US financials, energy corporates, mortgage-backed securities, and

consumer asset-backed securities as well as BBB-rated securities also helped performance during the year.

We maintain a duration positioning that is relatively short relative to the index as we are concerned about the possibility of increasing short 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 also increased weightings in consumer asset backed securities, 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, 2017, the Lazard Global Fixed Income Portfolio’s Institutional Shares posted a total return of 7.87%, while Open Shares posted a total return of 7.55%, as compared with the 7.39% return for the Bloomberg Barclays Global Aggregate^® Index.

The Portfolio’s outperformance was helped by its country allocations, primarily reflecting a combination of overweight exposures to the United States, Singapore, New Zealand, and Hungary, and a lack of exposure to euro zone and Japanese government bonds relative to the benchmark. In addition, currency management was beneficial, driven by tactical exposure to currencies such as the Japanese yen, Australian dollar, Mexican peso, and Swedish krona.

Relative returns were also helped by the Portfolio’s sector allocations, which included overweight positions in a diverse selection of global credits and a general underweight in government securities. An underweight to the Canadian dollar detracted from returns over the year as did an overweight exposure to Mexico. The latter position added value early in the year but detracted in the fourth quarter.

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 in 2017.

Annual Report  5

Notes to Investment Overviews:

All Portfolios’ 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, 2017; 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, 2017

	One	Five	Ten	Since
	Year	Years	Years	Inception	†
Institutional Shares**	5.09%	4.73%	5.95%	4.38%
Open Shares**	4.77%	4.38%	5.64%	3.86%
R6 Shares**	5.09%	N/A	N/A	5.59%
Cash Pay Index	7.03%	5.65%	6.71%	6.54%
				(Institutional Shares)
				6.49%
				(Open Shares)
				7.40%
				(R6 Shares)

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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”), if any, 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 Portfolio shares, 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 now 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 ICE BofAML BB-B US Cash Pay Non-Distressed High Yield® Index. It is constructed to mirror the BB-B non-distressed sector of the public high yield corporate debt market and is a subset of the ICE 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 ICE BofAML 1-3 Year US Treasury^® Index*

Average Annual Total Returns*

Periods Ended December 31, 2017

	One	Five	Since
	Year	Years	Inception	†
Institutional Shares**	0.72%	0.17%	1.14%
Open Shares**	0.32%	0.09%	0.99%
ICE BofAML 1-3 Year US Treasury Index	0.42%	0.56%	0.69%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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 and now 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 ICE BofAML 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 Global Aggregate^® Index*  

Average Annual Total Returns*

Periods Ended December 31, 2017

	One	Five	Since
	Year	Years	Inception	†
Institutional Shares**	7.87%	–0.09%	0.49%
Open Shares**	7.55%	–0.39%	0.19%
Bloomberg Barclays Global Aggregate Index	7.39%	0.79%	1.28%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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 Global Aggregate 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 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, 2017 through December 31, 2017 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.

10  Annual Report

Portfolio	Beginning Account Value 7/1/17	Ending Account Value 12/31/17	Expenses Paid During Period* 7/1/17 - 12/31/17	Annualized Expense Ratio During Period 7/1/17 - 12/31/17
US Corporate Income
Institutional Shares
Actual	$1,000.00	$1,018.50	$2.80	0.55%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,022.43	$2.80	0.55%
Open Shares
Actual	$1,000.00	$1,014.90	$4.32	0.85%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.92	$4.33	0.85%
R6 Shares
Actual	$1,000.00	$1,016.40	$2.80	0.55%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,022.43	$2.80	0.55%
US Short Duration Fixed Income
Institutional Shares
Actual	$1,000.00	$1,002.20	$2.02	0.40%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,023.19	$2.04	0.40%
Open Shares
Actual	$1,000.00	$ 999.70	$3.58	0.71%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,021.63	$3.62	0.71%
Global Fixed Income
Institutional Shares
Actual	$1,000.00	$1,021.40	$3.57	0.70%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,021.68	$3.57	0.70%
Open Shares
Actual	$1,000.00	$1,019.80	$5.09	1.00%
Hypothetical (5% Return Before Expenses)	$1,000.00	$1,020.16	$5.09	1.00%

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

Annual Report  11

The Lazard Funds, Inc. Portfolio Holdings Presented by Credit Rating December 31, 2017

S&P Credit Rating*	Lazard US Corporate Income Portfolio			Lazard US Short Duration Fixed Income Portfolio			Lazard Global Fixed Income Portfolio
AAA		—	%		—	%		12.7	%
AA+		—			45.5			16.7
AA		—			—			1.8
AA-		—			—			9.1
A+		—			—			7.8
A		—			6.7			5.7
A-		—			10.2			7.9
BBB+		—			19.2			8.7
BBB		2.3			9.5			—
BBB-		7.1			—			7.0
BB+		19.0			—			3.8
BB		21.9			—			—
BB-		22.4			—			—
B+		13.8			—			—
B		5.1			—			—
B-		2.9			—			—
CCC+		0.9			—			—
NA		1.1			8.1			13.6
NR		—			—			3.9
Short-Term Investments		3.5			0.8			1.3
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, 2017

Description	Principal Amount (000)		Fair Value
Lazard US Corporate Income Portfolio
Corporate Bonds | 95.4%
Aerospace & Defense | 1.1%
Bombardier, Inc., 7.750%, 03/15/20 (#)	$	975	$	1,048,125
KLX, Inc., 5.875%, 12/01/22 (#)		1,400		1,466,080
Triumph Group, Inc., 4.875%, 04/01/21		1,400		1,375,500
				3,889,705
Auto Components | 2.3%
Dana, Inc., 5.500%, 12/15/24		1,800		1,901,250
Delphi Technologies PLC, 5.000%, 10/01/25 (#)		1,500		1,518,750
Tenneco, Inc., 5.000%, 07/15/26		2,400		2,460,000
The Goodyear Tire & Rubber Co.:
5.125%, 11/15/23		1,800		1,878,102
5.000%, 05/31/26		250		257,775
				8,015,877
Automobiles | 1.0%
Fiat Chrysler Automobiles NV, 5.250%, 04/15/23		2,300		2,407,870
Jaguar Land Rover Automotive PLC, 4.500%, 10/01/27 (#)		1,000		985,000
				3,392,870
Building Products | 1.1%
Griffon Corp., 5.250%, 03/01/22		1,800		1,818,000
USG Corp., 4.875%, 06/01/27 (#)		1,900		1,969,445
				3,787,445
Capital Markets | 1.0%
Icahn Enterprises LP, 6.000%, 08/01/20		1,500		1,542,637
MPT Operating Partnership LP, 6.375%, 03/01/24		1,810		1,914,075
				3,456,712

Description	Principal Amount (000)		Fair Value
Chemicals | 3.7%
CF Industries, Inc., 3.450%, 06/01/23	$	1,975	$	1,947,844
Huntsman International LLC, 4.875%, 11/15/20		1,600		1,664,000
Mosaic Global Holdings, Inc., 7.300%, 01/15/28		775		951,113
NOVA Chemicals Corp., 5.250%, 08/01/23 (#)		1,800		1,851,750
Platform Specialty Products Corp., 6.500%, 02/01/22 (#)		1,700		1,757,375
Valvoline, Inc., 4.375%, 08/15/25		1,500		1,515,000
Westlake Chemical Corp., 4.625%, 02/15/21		1,400		1,435,000
WR Grace & Co-Conn, 5.125%, 10/01/21 (#)		1,700		1,787,125
				12,909,207
Commercial Services & Supplies | 3.7%
ACCO Brands Corp., 5.250%, 12/15/24 (#)		1,800		1,849,500
Aramark Services, Inc., 5.000%, 04/01/25 (#)		2,500		2,640,750
Ashtead Capital, Inc., 4.375%, 08/15/27 (#)		1,900		1,928,500
Avis Budget Car Rental LLC, 5.125%, 06/01/22 (#)		1,600		1,620,000
KAR Auction Services, Inc., 5.125%, 06/01/25 (#)		1,800		1,845,000
Multi-Color Corp., 4.875%, 11/01/25 (#)		1,000		1,003,750
The ADT Corp.:
6.250%, 10/15/21		1,400		1,533,000
4.125%, 06/15/23		500		500,000
				12,920,500
Communications Equipment | 0.9%
CommScope, Inc., 5.000%, 06/15/21 (#)		1,500		1,528,125
Plantronics, Inc., 5.500%, 05/31/23 (#)		1,750		1,817,813
				3,345,938

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)
Construction Materials | 1.0%
James Hardie International Finance DAC, 5.000%, 01/15/28 (#)	$	1,760	$	1,773,200
Standard Industries, Inc., 5.375%, 11/15/24 (#)		1,750		1,829,275
				3,602,475
Containers & Packaging | 4.2%
Ball Corp., 4.000%, 11/15/23		2,400		2,448,000
Cascades, Inc., 5.500%, 07/15/22 (#)		1,500		1,541,250
Crown Americas LLC:
4.500%, 01/15/23		1,800		1,827,000
4.250%, 09/30/26		500		492,500
Owens-Brockway Glass Container, Inc., 5.000%, 01/15/22 (#)		2,392		2,475,720
Reynolds Group Issuer, Inc., 5.750%, 10/15/20		1,454		1,475,466
Sealed Air Corp., 4.875%, 12/01/22 (#)		1,700		1,795,625
Silgan Holdings, Inc., 5.000%, 04/01/20		826		830,130
Smurfit Kappa Acquisitions ULC, 4.875%, 09/15/18 (#)		1,050		1,064,495
Smurfit Kappa Treasury Funding, Ltd., 7.500%, 11/20/25		750		903,750
				14,853,936
Diversified Consumer Services | 1.1%
Service Corp. International, 4.625%, 12/15/27		2,000		2,029,240
The ServiceMaster Co. LLC, 5.125%, 11/15/24 (#)		1,800		1,822,500
				3,851,740
Diversified Financial Services | 1.7%
Altice US Finance I Corp., 5.500%, 05/15/26 (#)		1,000		1,018,750
Herc Rentals, Inc., 7.750%, 06/01/24 (#)		1,359		1,491,502
INEOS Group Holdings SA, 5.625%, 08/01/24 (#)		1,700		1,772,250
Level 3 Financing, Inc., 5.125%, 05/01/23		1,800		1,804,500
				6,087,002

Description	Principal Amount (000)		Fair Value
Diversified Telecommunication Services | 3.5%
CenturyLink, Inc., Series V, 5.625%, 04/01/20	$	1,800	$	1,813,500
CyrusOne LP, 5.000%, 03/15/24 (#)		2,300		2,386,250
Frontier Communications Corp., 8.125%, 10/01/18		1,500		1,494,225
Hughes Satellite Systems Corp., 5.250%, 08/01/26		2,391		2,438,820
SBA Communications Corp., 4.875%, 09/01/24		2,300		2,363,250
Zayo Group LLC, 5.750%, 01/15/27 (#)		1,750		1,785,000
				12,281,045
Energy Equipment & Services | 0.7%
Transocean, Inc., 9.000%, 07/15/23 (#)		1,250		1,351,563
Weatherford International, Ltd., 8.250%, 06/15/23		1,250		1,262,500
				2,614,063
Equity Real Estate Investment Trusts (REITs) | 3.9%
Crown Castle International Corp., 4.875%, 04/15/22		1,500		1,608,355
Equinix, Inc., 5.375%, 05/15/27		2,700		2,889,000
ESH Hospitality, Inc., 5.250%, 05/01/25 (#)		2,300		2,323,000
Iron Mountain, Inc., 6.000%, 08/15/23		1,700		1,776,500
MGM Growth Properties Operating Partnership LP, 4.500%, 09/01/26		1,800		1,791,000
RHP Hotel Properties LP, 5.000%, 04/15/23		1,775		1,814,937
Uniti Group LP, 6.000%, 04/15/23 (#)		1,700		1,670,250
				13,873,042
Food & Staples Retailing | 1.5%
Albertsons Cos. LLC, 6.625%, 06/15/24		1,750		1,671,250
Ingles Markets, Inc., 5.750%, 06/15/23		1,750		1,771,875
Performance Food Group, Inc., 5.500%, 06/01/24 (#)		1,805		1,863,662
				5,306,787

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)
Food Products | 2.3%
B&G Foods, Inc., 4.625%, 06/01/21	$	1,500	$	1,522,500
Darling Ingredients, Inc., 5.375%, 01/15/22		850		869,125
Lamb Weston Holdings, Inc., 4.625%, 11/01/24 (#)		2,300		2,369,000
Post Holdings, Inc., 5.000%, 08/15/26 (#)		1,800		1,770,750
TreeHouse Foods, Inc., 4.875%, 03/15/22		1,500		1,516,875
				8,048,250
Gas Utilities | 1.2%
AmeriGas Partners LP, 5.625%, 05/20/24		1,800		1,872,000
Ferrellgas LP, 6.500%, 05/01/21		500		468,125
Suburban Propane Partners LP, 5.500%, 06/01/24		1,800		1,782,000
				4,122,125
Health Care Equipment & Supplies | 1.1%
Hill-Rom Holdings, Inc., 5.750%, 09/01/23 (#)		1,800		1,883,250
Hologic, Inc., 5.250%, 07/15/22 (#)		1,800		1,863,000
				3,746,250
Health Care Providers & Services | 4.2%
Centene Corp.:
6.125%, 02/15/24		1,750		1,850,625
4.750%, 01/15/25		500		508,750
DaVita, Inc., 5.125%, 07/15/24		1,800		1,818,000
Fresenius Medical Care US Finance II, Inc., 5.625%, 07/31/19 (#)		1,097		1,147,456
HCA, Inc., 6.500%, 02/15/20		1,600		1,696,000
HealthSouth Corp., 5.125%, 03/15/23		1,801		1,841,523
LifePoint Health, Inc.:
5.500%, 12/01/21		1,400		1,428,000
5.875%, 12/01/23		900		909,000
Molina Healthcare, Inc., 5.375%, 11/15/22		1,700		1,772,250

Description	Principal Amount (000)		Fair Value
Tenet Healthcare Corp.:
4.750%, 06/01/20	$	700	$	712,250
4.375%, 10/01/21		1,250		1,246,875
				14,930,729
Hotels, Restaurants & Leisure | 8.3%
1011778 BC ULC, 4.625%, 01/15/22 (#)		1,800		1,842,750
Boyd Gaming Corp., 6.875%, 05/15/23		1,700		1,802,000
Brinker International, Inc., 5.000%, 10/01/24 (#)		2,000		2,020,000
Cedar Fair LP, 5.375%, 04/15/27 (#)		1,800		1,890,000
Cinemark USA, Inc., 4.875%, 06/01/23		1,800		1,822,500
Diamond Resorts International, Inc., 7.750%, 09/01/23 (#)		1,500		1,627,350
GLP Capital LP, 4.875%, 11/01/20		1,500		1,556,250
Golden Nugget, Inc., 6.750%, 10/15/24 (#)		1,622		1,650,385
Hilton Worldwide Finance LLC, 4.625%, 04/01/25		2,315		2,378,662
International Game Technology PLC:
5.625%, 02/15/20 (#)		250		260,313
6.250%, 02/15/22 (#)		1,450		1,562,375
KFC Holding Co., 5.250%, 06/01/26 (#)		2,900		3,052,250
MGM Resorts International:
6.625%, 12/15/21		1,000		1,097,200
4.625%, 09/01/26		800		808,000
Six Flags Entertainment Corp., 4.875%, 07/31/24 (#)		2,150		2,182,250
Station Casinos LLC, 5.000%, 10/01/25 (#)		1,250		1,256,250
Wynn Las Vegas LLC, 5.500%, 03/01/25 (#)		2,300		2,369,000
				29,177,535
Household Durables | 0.5%
Tempur Sealy International, Inc., 5.625%, 10/15/23		1,750		1,820,000
Household Products | 1.1%
Energizer Holdings, Inc., 5.500%, 06/15/25 (#)		1,750		1,822,712
Spectrum Brands, Inc., 5.750%, 07/15/25		1,800		1,894,500
				3,717,212

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)
Independent Power & Renewable Electricity Producers | 1.1%
AES Corp., 7.375%, 07/01/21	$	1,095	$	1,229,137
Calpine Corp., 6.000%, 01/15/22 (#)		1,500		1,545,000
NextEra Energy Operating Partners LP, 4.500%, 09/15/27 (#)		1,250		1,243,750
				4,017,887
Internet & Direct Marketing Retail | 0.5%
Netflix, Inc., 5.375%, 02/01/21		1,550		1,637,188
Internet Software & Services | 1.1%
j2 Cloud Services LLC, 6.000%, 07/15/25 (#)		1,800		1,894,500
VeriSign, Inc., 4.625%, 05/01/23		1,800		1,847,250
				3,741,750
IT Services | 0.6%
First Data Corp.:
5.375%, 08/15/23 (#)		1,600		1,665,440
5.000%, 01/15/24 (#)		500		514,375
				2,179,815
Machinery | 2.1%
Allison Transmission, Inc., 4.750%, 10/01/27 (#)		1,795		1,806,219
Amsted Industries, Inc., 5.000%, 03/15/22 (#)		1,700		1,740,375
SPX FLOW, Inc., 5.625%, 08/15/24 (#)		1,750		1,841,875
Terex Corp., 5.625%, 02/01/25 (#)		1,790		1,870,550
				7,259,019
Media | 12.5%
AMC Networks, Inc., 4.750%, 12/15/22		1,500		1,531,875
Cable One, Inc., 5.750%, 06/15/22 (#)		1,750		1,806,875
Cablevision Systems Corp., 7.750%, 04/15/18		1,500		1,518,750
CBS Radio, Inc., 7.250%, 11/01/24 (#)		1,500		1,581,563

Description	Principal Amount (000)		Fair Value
CCO Holdings LLC:
5.250%, 03/15/21	$	1,950	$	1,982,906
5.125%, 05/01/27 (#)		500		492,500
Cequel Communications Holdings I LLC, 6.375%, 09/15/20 (#)		1,260		1,278,900
Clear Channel Worldwide Holdings, Inc., Series B, 6.500%, 11/15/22		1,750		1,778,437
DISH DBS Corp., 5.125%, 05/01/20		1,600		1,632,000
Lamar Media Corp., 5.875%, 02/01/22		1,685		1,720,806
LIN Television Corp., 5.875%, 11/15/22		1,750		1,820,000
Live Nation Entertainment, Inc., 4.875%, 11/01/24 (#)		1,800		1,845,000
Mediacom Broadband LLC, 5.500%, 04/15/21		1,500		1,518,750
Outfront Media Capital LLC, 5.250%, 02/15/22		1,500		1,537,500
Regal Entertainment Group, 5.750%, 03/15/22		1,850		1,907,812
Sinclair Television Group, Inc., 5.375%, 04/01/21		1,900		1,933,250
Sirius XM Radio, Inc.:
5.375%, 04/15/25 (#)		400		416,500
5.000%, 08/01/27 (#)		2,000		2,005,000
TEGNA, Inc., 6.375%, 10/15/23		1,900		1,990,250
The EW Scripps Co., 5.125%, 05/15/25 (#)		1,800		1,791,000
Time, Inc., 5.750%, 04/15/22 (#)		1,425		1,485,563
Tribune Media Co., 5.875%, 07/15/22		1,800		1,849,500
Univision Communications, Inc., 5.125%, 02/15/25 (#)		1,800		1,755,000
Videotron, Ltd.:
5.000%, 07/15/22		1,808		1,902,920
5.125%, 04/15/27 (#)		500		522,500
Virgin Media Secured Finance PLC, 5.250%, 01/15/26 (#)		2,400		2,424,000
WMG Acquisition Corp.,
4.875%, 11/01/24 (#)		1,850		1,905,500
				43,934,657

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)
Metals & Mining | 3.8%
Alcoa Nederland Holding BV, 6.750%, 09/30/24 (#)	$	2,300	$	2,507,000
Anglo American Capital PLC, 4.875%, 05/14/25 (#)		1,900		2,012,907
ArcelorMittal, 6.000%, 03/01/21		1,400		1,512,000
Freeport-McMoRan, Inc., 4.550%, 11/14/24		2,700		2,745,090
Glencore Funding LLC, 4.625%, 04/29/24 (#)		2,000		2,111,600
Steel Dynamics, Inc.:
4.125%, 09/15/25 (#)		500		503,750
5.000%, 12/15/26		1,800		1,903,500
				13,295,847
Multiline Retail | 1.1%
Dollar Tree, Inc., 5.750%, 03/01/23		2,250		2,356,875
J.C. Penney Corp., Inc., 5.875%, 07/01/23 (#)		1,800		1,698,750
				4,055,625
Oil, Gas & Consumable Fuels | 11.0%
Andeavor Logistics LP, 4.250%, 12/01/27		1,500		1,512,437
Antero Resources Corp., 5.125%, 12/01/22		1,850		1,887,000
Cenovus Energy, Inc., 3.800%, 09/15/23		2,500		2,524,595
Cheniere Energy Partners LP, 5.250%, 10/01/25 (#)		1,250		1,271,875
Continental Resources, Inc., 4.500%, 04/15/23		2,500		2,550,000
Diamondback Energy, Inc., 4.750%, 11/01/24		1,800		1,806,750
Energy Transfer Equity LP:
7.500%, 10/15/20		1,250		1,375,000
5.875%, 01/15/24		750		789,375
Energy Transfer LP, 5.750%, 09/01/20		1,300		1,383,496
Gulfport Energy Corp., 6.000%, 10/15/24		1,700		1,700,000
Holly Energy Partners LP, 6.000%, 08/01/24 (#)		1,840		1,918,200

Description	Principal Amount (000)		Fair Value
Kinder Morgan, Inc., 5.000%, 02/15/21 (#)	$	1,275	$	1,352,664
Murphy Oil Corp., 6.875%, 08/15/24		1,500		1,601,250
Newfield Exploration Co., 5.625%, 07/01/24		1,900		2,042,500
ONEOK Partners LP, 5.000%, 09/15/23		2,000		2,142,597
PBF Holding Co. LLC, 7.000%, 11/15/23		900		939,375
Range Resources Corp., 5.000%, 08/15/22		1,700		1,691,500
Rockies Express Pipeline LLC, 6.850%, 07/15/18 (#)		1,450		1,475,375
Southwestern Energy Co., 6.700%, 01/23/25		1,800		1,869,750
Sunoco LP, 6.375%, 04/01/23		1,700		1,791,375
Tallgrass Energy Partners LP, 5.500%, 01/15/28 (#)		1,250		1,265,250
Targa Resources Partners LP, 5.250%, 05/01/23		1,800		1,840,500
Whiting Petroleum Corp., 5.750%, 03/15/21		900		923,625
WPX Energy, Inc., 6.000%, 01/15/22		900		940,500
				38,594,989
Personal Products | 0.4%
First Quality Finance Co., Inc., 4.625%, 05/15/21 (#)		1,500		1,511,250
Pharmaceuticals | 0.8%
Endo Finance LLC, 5.750%, 01/15/22 (#)		1,600		1,332,000
Mallinckrodt International Finance SA, 5.750%, 08/01/22 (#)		1,700		1,542,750
				2,874,750
Professional Services | 1.1%
IHS Markit, Ltd., 5.000%, 11/01/22 (#)		1,750		1,897,350
Nielsen Finance LLC, 5.000%, 04/15/22 (#)		1,800		1,851,750
				3,749,100
Road & Rail | 0.5%
The Hertz Corp., 5.500%, 10/15/24 (#)		1,800		1,624,500

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)
Semiconductors & Semiconductor Equipment | 0.2%
Amkor Technology, Inc., 6.625%, 06/01/21	$	700	$	707,476
Software | 0.6%
Nuance Communications, Inc., 5.375%, 08/15/20 (#)		588		596,085
Rackspace Hosting, Inc., 8.625%, 11/15/24 (#)		1,500		1,601,250
				2,197,335
Specialty Retail | 1.1%
Group 1 Automotive,  Inc., 5.000%, 06/01/22		1,912		1,969,360
Penske Automotive Group, Inc., 5.500%, 05/15/26		1,800		1,826,460
				3,795,820
Technology Hardware, Storage & Peripherals | 2.0%
Dell International LLC,  7.125%, 06/15/24 (#)		1,775		1,943,384
NCR Corp.,  4.625%, 02/15/21		1,568		1,581,720
Seagate HDD Cayman,  4.750%, 01/01/25		1,900		1,865,450
Western Digital Corp.,  7.375%, 04/01/23 (#)		1,700		1,833,875
				7,224,429
Textiles, Apparel & Luxury Goods | 0.5%
Hanesbrands, Inc.,  4.625%, 05/15/24 (#)		1,750		1,785,000
Trading Companies & Distributors | 1.7%
Aircastle, Ltd.,  5.125%, 03/15/21		1,500		1,576,875
United Rentals North America, Inc.:
4.625%, 07/15/23		1,100		1,137,257
5.750%, 11/15/24		1,650		1,736,625
WESCO Distribution, Inc.,  5.375%, 12/15/21		1,600		1,640,000
				6,090,757

Description	Principal Amount (000)		Fair Value
Wireless Telecommunication Services | 1.6%
Inmarsat Finance PLC, 4.875%, 05/15/22 (#)	$	1,750	$	1,745,625
Sprint Capital Corp., 6.900%, 05/01/19		1,475		1,543,219
T-Mobile USA, Inc., 6.500%, 01/15/26		2,300		2,509,875
				5,798,719
Total Corporate Bonds (Cost $328,847,911)				335,826,358
Description	Shares		Fair Value
Short-Term Investments | 3.4%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $12,037,274)		12,037,274	$	12,037,274
Total Investments | 98.8% (Cost $340,885,185)			$	347,863,632
Cash and Other Assets in Excess of Liabilities | 1.2%				4,135,832
Net Assets | 100.0%			$	351,999,464

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 | 8.0%
Automobiles | 8.0%
Ally Auto Receivables Trust, 1.470%, 04/15/20	$	1,159	$	1,156,738
GM Financial Automobile Leasing Trust, 1.610%, 12/20/19		2,225		2,217,585
GMF Floorplan Owner Revolving Trust, 1.650%, 05/15/20 (#)		2,250		2,248,028
World Omni Automobile Lease Securitization Trust, 1.450%, 08/15/19		2,475		2,463,208
Total Asset-Backed Securities (Cost $8,109,137)				8,085,559
Corporate Bonds | 44.2%
Banks | 15.3%
Bank of America Corp.,  2.250%, 04/21/20		4,016		4,018,563
Citigroup, Inc.:
2.050%, 06/07/19		2,168		2,161,516
2.400%, 02/18/20		1,925		1,924,607
JPMorgan Chase & Co.:
6.300%, 04/23/19		3,025		3,184,452
4.400%, 07/22/20		575		604,018
Wells Fargo & Co., 2.600%, 07/22/20		3,425		3,445,861
				15,339,017
Biotechnology | 4.6%
AbbVie, Inc.,  1.800%, 05/14/18		2,375		2,373,832
Amgen, Inc.,  5.700%, 02/01/19		2,203		2,286,459
				4,660,291
Capital Markets | 7.8%
Morgan Stanley,  5.500%, 01/26/20		3,700		3,920,713
The Goldman Sachs Group, Inc.,  7.500%, 02/15/19		3,675		3,883,600
				7,804,313

Description	Principal Amount (000)		Fair Value
Consumer Finance | 2.8%
Ford Motor Credit Co. LLC, 5.000%, 05/15/18	$	2,825	$	2,853,749
Electronic Equipment, Instruments & Components | 1.8%
Amphenol Corp., 2.550%, 01/30/19		1,825		1,831,097
Food & Staples Retailing | 4.5%
CVS Health Corp., 1.900%, 07/20/18		2,175		2,174,336
The Kroger Co., 2.300%, 01/15/19		2,395		2,396,838
				4,571,174
Internet Software & Services | 0.6%
eBay, Inc., 3.250%, 10/15/20		574		584,791
IT Services | 1.4%
Fiserv, Inc., 2.700%, 06/01/20		1,375		1,383,506
Life Sciences Tools & Services | 0.6%
Thermo Fisher Scientific, Inc., 2.400%, 02/01/19		575		576,362
Media | 2.2%
21st Century Fox America, Inc., 6.900%, 03/01/19		2,097		2,206,998
Oil, Gas & Consumable Fuels | 2.6%
Enterprise Products Operating LLC, 2.550%, 10/15/19		375		376,141
Valero Energy Corp., 6.125%, 02/01/20		2,050		2,207,735
				2,583,876
Total Corporate Bonds (Cost $44,546,804)				44,395,174
Municipal Bonds | 0.9%
Kentucky | 0.9%
Kentucky State Asset Liability Commission General Funding Revenue,  3.165%, 04/01/18 (Cost $883,123)		881		883,901

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 | 17.5%
Mortgage-Backed Securities | 17.5%
Federal Home Loan Mortgage Corp.:
Pool# 1B4676, 3.660%, 05/01/40 (§)	$	532	$	559,061
Pool# 1B8709, 3.273%, 08/01/34 (§)		1,135		1,184,367
Pool# 1H2577, 3.203%, 09/01/35 (§)		647		683,251
Pool# 848138, 3.291%, 07/01/38 (§)		708		748,466
Pool# 848514, 3.398%, 03/01/32 (§)		1,507		1,589,642
Pool# 848517, 3.352%, 12/01/34 (§)		931		979,866
Pool# 849414, 3.293%, 07/01/35 (§)		1,188		1,251,669
Pool# G13867, 5.000%, 06/01/25		276		287,983
Federal National Mortgage Association:
Pool# 725296, 3.257%, 03/01/34 (§)		596		625,887
Pool# 963058, 3.653%, 05/01/38 (§)		472		497,461
Pool# 995609, 3.571%, 04/01/35 (§)		646		683,028
Pool# AD0701, 3.331%, 02/01/37 (§)		743		779,379
Pool# AE0149, 3.129%, 12/01/36 (§)		651		687,253
Pool# AE0315, 4.500%, 02/01/21		25		25,868
Pool# AE0887, 3.501%, 09/01/40 (§)		266		277,460
Pool# AL0345, 3.561%, 11/01/35 (§)		526		555,623
Pool# AL3232, 3.472%, 02/01/40 (§)		324		338,399
Pool# AL3260, 3.484%, 07/01/38 (§)		327		343,445
Pool# AL3739, 3.158%, 07/01/38 (§)		206		216,746
Pool# AL3746, 3.182%, 01/01/37 (§)		749		790,067
Pool# AL3941, 6.000%, 03/01/24		236		246,845
Pool# AL4118, 3.416%, 05/01/35 (§)		465		488,098
Pool# AL4545, 3.215%, 05/01/39 (§)		552		582,545
Pool# AL4660, 3.454%, 11/01/41 (§)		623		650,514
Pool# AL5574, 3.157%, 12/01/40 (§)		1,070		1,128,737
Pool# AL5642, 3.203%, 05/01/39 (§)		1,298		1,370,806
Total US Government Securities (Cost $17,610,887)				17,572,466
US Treasury Securities | 27.6%
US Treasury Notes:
1.625%, 12/31/19		1,260		1,253,243
1.625%, 07/31/20		26,630		26,422,253
Total US Treasury Securities (Cost $27,929,564)				27,675,496

Description	Shares		Fair Value
Short-Term Investments | 0.8%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $800,834)		800,834	$	800,834
Total Investments | 99.0% (Cost $99,880,349)			$	99,413,430
Cash and Other Assets in Excess of Liabilities | 1.0%				1,001,980
Net Assets | 100.0%			$	100,415,410

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 | 34.2%
Australia | 1.6%
Telstra Corp., Ltd., 4.000%, 09/16/22	AUD		50	$	40,586
Toyota Finance Australia, Ltd., 4.250%, 05/15/19	AUD		45		35,987
					76,573
Belgium | 1.5%
Anheuser-Busch InBev Finance, Inc., 2.650%, 02/01/21	USD		70		70,345
Canada | 2.7%
Shaw Communications, Inc., 5.650%, 10/01/19	CAD		70		58,853
The Toronto-Dominion Bank, 2.250%, 11/05/19	USD		70		70,034
					128,887
France | 0.9%
Orange SA, 5.375%, 07/08/19	USD		40		41,808
Germany | 2.6%
BMW Finance NV, 3.375%, 12/14/18	GBP		50		69,166
Fresenius Medical Care US Finance II, Inc., 4.125%, 10/15/20	USD		50		51,500
					120,666
Netherlands | 1.6%
Bank Nederlandse Gemeenten NV, 5.000%, 09/16/20	NZD		100		74,658
United States | 23.3%
Alphabet, Inc., 3.625%, 05/19/21	USD		30		31,402
Amazon.com, Inc., 3.800%, 12/05/24	USD		60		63,356
Apple, Inc., 3.850%, 05/04/43	USD		95		98,612
Citigroup, Inc., 3.250% (BBSW 3 Month + 1.550%), 05/04/21 (§)	AUD		95		75,593

Description	Security Currency	Principal Amount (000)		Fair Value
Constellation Brands, Inc., 4.250%, 05/01/23	USD		35	$	37,020
HCA, Inc., 6.500%, 02/15/20	USD		30		31,800
John Deere Canada Funding, Inc., 2.050%, 09/17/20	CAD		45		35,564
John Deere Capital Corp., 2.300%, 09/16/19	USD		50		50,027
Johnson & Johnson, 3.625%, 03/03/37	USD		30		31,670
JPMorgan Chase & Co., 4.500%, 01/24/22	USD		55		58,846
Microsoft Corp., 4.450%, 11/03/45	USD		90		105,391
Morgan Stanley, 3.625%, 01/20/27	USD		50		51,158
Nestle Holdings, Inc., 2.750%, 04/15/20	NOK		340		43,045
NIKE, Inc., 2.375%, 11/01/26	USD		50		47,622
Sealed Air Corp., 4.875%, 12/01/22	USD		20		21,125
The Goldman Sachs Group, Inc.:
5.200%, 12/17/19	NZD		110		81,419
3.625%, 01/22/23	USD		35		36,151
The Home Depot, Inc., 2.625%, 06/01/22	USD		55		55,300
Union Pacific Corp., 4.163%, 07/15/22	USD		50		53,590
United Rentals North America, Inc., 4.625%, 07/15/23	USD		60		62,032
Wells Fargo & Co., 3.010% (BBSW 3 Month + 1.320%), 07/27/21 (§)	AUD		45		35,652
					1,106,375
Total Corporate Bonds (Cost $1,610,784)					1,619,312
Foreign Government Obligations | 45.0%
Australia | 3.0%
Queensland Treasury Corp.:
5.500%, 06/21/21	AUD		55		47,368
3.000%, 03/22/24	AUD		60		47,594
Western Australian Treasury Corp., 6.000%, 10/16/23	AUD		52		47,678
					142,640

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)
Bahamas | 2.1%
Commonwealth of Bahamas, 6.950%, 11/20/29	USD		90	$	98,085
Bermuda | 2.3%
Government of Bermuda, 5.603%, 07/20/20	USD		100		107,375
Canada | 6.6%
City of Vancouver, 2.900%, 11/20/25	CAD		50		40,476
Province of British Columbia, 4.700%, 06/18/37	CAD		25		25,413
Province of Ontario:
2.450%, 06/29/22	USD		75		74,740
1.950%, 01/27/23	CAD		70		54,833
Province of Quebec:
3.500%, 07/29/20	USD		85		87,621
1.650%, 03/03/22	CAD		40		31,215
					314,298
Chile | 1.4%
Republic of Chile, 5.500%, 08/05/20	CLP		37,500		63,771
Czech Republic | 3.0%
Czech Republic:
1.100% (PRIBOR 1 Year + 0.650%), 04/18/23 (§)	CZK		1,400		70,601
2.500%, 08/25/28	CZK		1,450		73,132
					143,733
France | 2.1%
Government of France, 1.750%, 06/25/39	EUR		80		101,131
Hungary | 2.0%
Hungary Government Bonds,  5.500%, 06/24/25	HUF		19,750		96,040
Italy | 0.9%
Italy Buoni Poliennali Del Tesoro,  2.250%, 09/01/36	EUR		40		44,347

Description	Security Currency	Principal Amount (000)		Fair Value
Mexico | 3.2%
Mexican Bonos, 6.500%, 06/09/22	MXN		1,850	$	90,087
United Mexican States, 6.750%, 02/06/24	GBP		38		63,427
					153,514
New Zealand | 1.9%
New Zealand Government Bonds:
6.000%, 05/15/21	NZD		50		39,187
4.500%, 04/15/27	NZD		65		49,069
					88,256
Norway | 2.7%
Oslo Kommune, 3.550%, 02/12/21	NOK		1,000		129,627
Philippines | 1.6%
Philippine Government Bonds, 4.250%, 04/11/20	PHP		3,650		73,117
Poland | 3.2%
Poland Government Bonds: 1.810% (WIBOR 6 Month), 01/25/21 (§)	PLN		340		97,754
2.500%, 07/25/26	PLN		200		54,385
					152,139
Romania | 2.7%
Romanian Government Bonds:
3.625%, 04/24/24	EUR		39		54,164
4.750%, 02/24/25	RON		285		75,762
					129,926
Singapore | 3.9%
Singapore Government Bonds,  3.000%, 09/01/24	SGD		230		183,405
Spain | 1.3%
Spain Government Bonds,  1.600%, 04/30/25	EUR		50		62,728
United Kingdom | 1.1%
United Kingdom Gilt,  1.500%, 07/22/47	GBP		40		50,821
Total Foreign Government Obligations (Cost $2,119,234)					2,134,953

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 | 0.2%
Canada | 0.2%
Export Development Canada, 1.800%, 09/01/22 (Cost $11,963)	CAD		15	$	11,788
Supranationals | 7.1%
Asian Development Bank,  2.125%, 03/19/25	USD		75		73,133
European Bank for Reconstruction & Development,  10.000%, 11/16/18	IDR		300,000		22,845
European Investment Bank:
7.200%, 07/09/19	IDR		170,000		12,742
1.125%, 09/16/21 (#)	CAD		75		57,656
International Bank for Reconstruction & Development:
5.750%, 10/28/19	INR		1,500		23,466
3.500%, 01/22/21	NZD		25		18,158
International Finance Corp.:
6.450%, 10/30/18	INR		4,160		65,498
3.625%, 05/20/20	NZD		75		54,549
5.850%, 11/25/22	INR		300		4,644
6.300%, 11/25/24	INR		140		2,198
Total Supranationals (Cost $335,865)					334,889
US Municipal Bonds | 2.9%
Alaska | 1.8%
Alaska State Qualified School Construction Bonds, 5.342%, 08/01/27	USD		75		87,516
California | 1.1%
California State Build America Bonds, 7.500%, 04/01/34	USD		35		51,829
Total US Municipal Bonds (Cost $141,901)					139,345

Description	Security Currency	Principal Amount (000)		Fair Value
US Treasury Securities | 9.1%
US Treasury Notes:
1.625%, 08/15/22	USD		70	$	68,357
1.750%, 05/15/23	USD		75		73,139
1.625%, 05/15/26	USD		170		160,073
3.125%, 11/15/41	USD		50		53,697
2.500%, 05/15/46	USD		80		76,014
Total US Treasury Securities (Cost $428,110)					431,280
Description		Shares		Fair Value
Short-Term Investments | 1.3%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $59,777)			59,777	$	59,777
Total Investments | 99.8% (Cost $4,707,634) (¤)				$	4,731,344
Cash and Other Assets in Excess of Liabilities | 0.2%					7,647
Net Assets | 100.0%				$	4,738,991

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

Annual Report  23

Lazard Global Fixed Income Portfolio (concluded)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
AUD	9,499	USD	7,327	CIT	02/22/18		$	84		$	—
AUD	16,574	USD	12,716	CIT	02/22/18			216			—
AUD	26,095	USD	20,000	HSB	02/22/18			360			—
CAD	63,466	USD	50,000	CIT	02/22/18			526			—
CHF	30,913	USD	31,329	HSB	02/22/18			503			—
CZK	133,183	USD	6,072	JPM	01/17/18			188			—
EUR	19,810	USD	23,396	CIT	01/11/18			384			—
EUR	796,522	USD	940,861	HSB	01/11/18			15,298			—
GBP	56,417	USD	74,978	CIT	02/22/18			1,315			—
HUF	9,884,094	USD	37,615	JPM	02/22/18			645			—
INR	1,156,950	USD	18,000	CIT	02/02/18			67			—
JPY	5,011,740	USD	45,000	CIT	01/11/18			—			507
JPY	45,726,254	USD	408,900	CIT	01/11/18			—			2,952
JPY	54,168,423	USD	484,344	HSB	01/11/18			—			3,448
KRW	75,433,200	USD	69,389	HSB	03/09/18			1,150			—
NZD	68,066	USD	46,289	HSB	02/22/18			1,919			—
PLN	35,291	USD	9,938	HSB	02/22/18			200			—
SEK	235,453	USD	28,001	CIT	02/22/18			787			—
SEK	243,378	USD	28,938	HSB	02/22/18			819			—
USD	135,835	AUD	179,023	CIT	02/22/18			—			3,840
USD	141,163	AUD	186,043	HSB	02/22/18			—			3,990
USD	182,060	CAD	231,671	CIT	02/22/18			—			2,377
USD	25,387	CAD	32,593	HSB	02/22/18			—			561
USD	31,117	CAD	39,598	HSB	02/22/18			—			407
USD	61,080	CLP	38,743,280	CIT	05/08/18			—			1,790
USD	70,410	CZK	1,523,181	CIT	01/17/18			—			1,178
USD	19,570	CZK	428,852	HSB	01/17/18			—			586
USD	58,865	CZK	1,291,220	JPM	01/17/18			—			1,822
USD	7,000	EUR	5,819	CIT	01/11/18			15			—
USD	14,000	GBP	10,338	CIT	02/22/18			19			—
USD	121,334	HUF	32,147,693	JPM	02/22/18			—			3,107
USD	13,867	IDR	189,560,800	HSB	02/13/18			—			53
USD	88,809	INR	5,764,118	CIT	02/02/18			—			1,203
USD	26,000	JPY	2,927,202	CIT	01/11/18			13			—
USD	57,199	MXN	1,108,543	HSB	02/22/18			1,327			—
USD	21,054	MXN	408,092	JPM	02/22/18			486			—
USD	168,761	NOK	1,394,054	HSB	02/22/18			—			1,263
USD	305,448	NZD	449,149	HSB	02/22/18			—			12,662
USD	70,546	PHP	3,657,195	HSB	01/16/18			—			2,674
USD	145,617	PLN	524,278	HSB	02/22/18			—			5,005
USD	75,632	RON	294,700	HSB	01/26/18			—			134
USD	174,760	SGD	236,897	JPM	02/22/18			—			2,497
Total gross unrealized appreciation/depreciation on Forward Currency Contracts							$	26,321		$	52,056

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

24  Annual Report

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2017

(#) Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2017, the percentage of net assets for each Portfolio was as follows:

Portfolio	Percentage of Net Assets
US Corporate Income		43.7	%
US Short Duration Fixed Income		2.2
Global Fixed Income		1.2

(§)	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, 2017.
(¤)	The Portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts.

Security Abbreviations:
BBSW	—	Bank Bill Swap Rate
PRIBOR	—	Prague Interbank Offered Rate
WIBOR	—	Warsaw Interbank Offered Rate

Currency Abbreviations:
AUD	—	Australian Dollar	KRW	—	South Korean Won
CAD	—	Canadian Dollar	MXN	—	Mexican New Peso
CHF	—	Swiss Franc	NOK	—	Norwegian Krone
CLP	—	Chilean Peso	NZD	—	New Zealand Dollar
CZK	—	Czech Koruna	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.

Annual Report  25

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

Industry†	Lazard Global Fixed Income Portfolio
Automobiles		2.2	%
Banks		6.7
Beverages		2.3
Capital Markets		3.6
Containers & Packaging		0.4
Diversified Telecommunication Services		1.7
Food Products		0.9
Government Development Banks		0.2
Health Care Providers & Services		1.8
Internet & Catalog Retail		1.3
Internet Software & Services		0.7
Machinery		1.8
Media		1.2
Pharmaceuticals		0.7
Road & Rail		1.1
Software		2.2
Specialty Retail		1.2
Technology Hardware, Storage & Peripherals		2.1
Textiles, Apparel & Luxury Goods		1.0
Trading Companies & Distributors		1.3
Subtotal		34.4
Foreign Government Obligations		45.0
Supranationals		7.1
US Municipal Bonds		2.9
US Treasury Securities		9.1
Short-Term Investments		1.3
Total Investments		99.8	%

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

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

26  Annual Report

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Annual Report  27

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2017	Lazard US Corporate Income Portfolio			Lazard US Short Duration Fixed Income Portfolio			Lazard Global Fixed Income Portfolio
ASSETS
Investments in securities, at fair value	$	347,863,632		$	99,413,430		$	4,731,344
Foreign currency, at fair value		—			—			10
Receivables for:
Dividends and interest		4,563,212			983,011			50,909
Capital stock sold		148,163			157,257			—
Amount due from Investment Manager (Note 3)		—			—			32,091
Gross unrealized appreciation on forward currency contracts		—			—			26,321
Prepaid expenses		—			5,219			5,344
Total assets		352,575,007			100,558,917			4,846,019
LIABILITIES
Payables for:
Management fees		151,334			52,527			—
Accrued custodian fees		70,849			29,449			27,840
Accrued professional services		24,853			22,202			24,119
Accrued distribution fees		1,265			—			—
Capital stock redeemed		183,889			16,888			64
Dividends		110,531			15,899			—
Gross unrealized depreciation on forward currency contracts		—			—			52,056
Other accrued expenses and payables		32,822			6,542			2,949
Total liabilities		575,543			143,507			107,028
Net assets	$	351,999,464		$	100,415,410		$	4,738,991
NET ASSETS
Paid in capital	$	351,918,543		$	101,628,433		$	4,826,247
Undistributed (Distributions in excess of) net investment income (loss)		10,137			(84,231	)		(67,058	)
Accumulated net realized gain (loss)		(6,907,663	)		(661,873	)		(18,767	)
Net unrealized appreciation (depreciation) on:
Investments		6,978,447			(466,919	)		23,710
Foreign currency translations and forward currency contracts		—			—			(25,141	)
Net assets	$	351,999,464		$	100,415,410		$	4,738,991
Institutional Shares
Net assets	$	344,508,084		$	100,390,332		$	4,705,422
Shares of capital stock outstanding*		70,514,409			10,259,235			520,489
Net asset value, offering and redemption price per share	$	4.89		$	9.79		$	9.04
Open Shares
Net assets	$	5,708,046		$	25,078		$	33,569
Shares of capital stock outstanding*		1,162,735			2,561			3,712
Net asset value, offering and redemption price per share	$	4.91		$	9.79		$	9.04
R6 Shares
Net assets	$	1,783,334			—			—
Shares of capital stock outstanding*		364,469			—			—
Net asset value, offering and redemption price per share	$	4.89			—			—
Cost of investments in securities	$	340,885,185		$	99,880,349		$	4,707,634
Cost of foreign currency	$	—		$	—		$	10

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

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

28  Annual Report

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2017	Lazard US Corporate Income Portfolio			Lazard US Short Duration Fixed Income Portfolio			Lazard Global Fixed Income Portfolio
Investment Income (Loss)
Income
Interest*	$	17,070,419		$	2,054,096		$	138,035
Expenses
Management fees (Note 3)		1,832,839			280,512			23,358
Custodian fees		108,901			47,032			48,972
Administration fees		64,474			30,616			15,347
Professional services		50,614			42,133			46,414
Shareholders’ services		47,570			26,455			26,078
Shareholders’ reports		43,547			8,114			7,764
Registration fees		38,679			37,740			36,777
Shareholders’ meeting		18,669			2,931			2,015
Distribution fees (Open Shares)		16,498			98			84
Directors’ fees and expenses		15,847			8,699			5,158
Amortization of offering costs (Note 2(f))		5,021			—			—
Other^		24,694			13,995			5,899
Total gross expenses		2,267,353			498,325			217,866
Management fees waived and expenses reimbursed		(409,341	)		(48,950	)		(179,364	)
Administration and shareholders’ services fees waived		(4,079	)		—			(4,688	)
Total net expenses		1,853,933			449,375			33,814
Net investment income (loss)		15,216,486			1,604,721			104,221
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions and Forward Currency Contracts
Net realized gain (loss) on:
Investments		(484,262	)		(800,974	)		(117,271	)
Foreign currency transactions		—			—			3,934
Forward currency contracts		—			—			(26,180	)
Total net realized gain (loss) on investments, foreign currency transactions and forward currency contracts		(484,262	)		(800,974	)		(139,517	)
Net change in unrealized appreciation (depreciation) on:
Investments		1,388,881			(30,628	)		365,209
Foreign currency translations		—			—			2,088
Forward currency contracts		—			—			16,784
Total net change in unrealized appreciation (depreciation) on investments, foreign currency translations and forward currency contracts		1,388,881			(30,628	)		384,081
Net realized and unrealized gain (loss) on investments, foreign currency transactions and forward currency contracts		904,619			(831,602	)		244,564
Net increase (decrease) in net assets resulting from operations	$	16,121,105		$	773,119		$	348,785
* Net of foreign withholding taxes of	$	—		$	—		$	739
^ Includes interest on line of credit of	$	—		$	—		$	41

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

Annual Report  29

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

	Lazard US Corporate Income Portfolio
	Year Ended December 31, 2017			Year Ended December 31, 2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	15,216,486		$	12,768,816
Net realized gain (loss) on investments, foreign currency transactions and forward currency contracts		(484,262	)		(3,913,794	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency translations and forward currency contracts		1,388,881			15,763,093
Net increase (decrease) in net assets resulting from operations		16,121,105			24,618,115
Distributions to shareholders
From net investment income
Institutional Shares		(14,816,506	)		(12,499,252	)
Open Shares		(281,890	)		(258,296	)
R6 Shares		(79,722	)		(11,198	)
Return of capital
Institutional Shares		—			—
Open Shares		—			—
Net decrease in net assets resulting from distributions		(15,178,118	)		(12,768,746	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		69,937,224			95,408,716
Open Shares		1,908,682			9,863,972
R6 Shares		—			1,681,000
Net proceeds from reinvestment of distributions
Institutional Shares		13,419,461			11,795,283
Open Shares		146,462			201,575
R6 Shares		79,723			11,198
Cost of shares redeemed
Institutional Shares		(42,747,420	)		(59,510,739	)
Open Shares		(3,999,689	)		(4,667,884	)
Net increase (decrease) in net assets from capital stock transactions		38,744,443			54,783,121
Redemption fees (Note 2(h))
Institutional Shares		—			19
Open Shares		—			3
Net increase in net assets from redemption fees		—			22
Total increase (decrease) in net assets		39,687,430			66,632,512
Net assets at beginning of period		312,312,034			245,679,522
Net assets at end of period*	$	351,999,464		$	312,312,034
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	10,137		$	(28,231	)
Shares issued and redeemed Institutional Shares
Shares outstanding at beginning of period		62,254,314			52,508,225
Shares sold		14,251,620			19,776,933
Shares issued to shareholders from reinvestment of distributions		2,733,088			2,460,421
Shares redeemed		(8,724,613	)		(12,491,265	)
Net increase (decrease)		8,260,095			9,746,089
Shares outstanding at end of period		70,514,409			62,254,314
Open Shares
Shares outstanding at beginning of period		1,557,470			421,909
Shares sold		387,438			2,063,436
Shares issued to shareholders from reinvestment of distributions		29,704			41,726
Shares redeemed		(811,877	)		(969,601	)
Net increase (decrease)		(394,735	)		1,135,561
Shares outstanding at end of period		1,162,735			1,557,470
R6 Shares†
Shares outstanding at beginning of period		348,256			—
Shares sold		—			345,949
Shares issued to shareholders from reinvestment of distributions		16,213			2,307
Net increase (decrease)		16,213			348,256
Shares outstanding at end of period		364,469			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 December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
$	1,604,721		$	1,312,853		$	104,221		$	115,507
	(800,974	)		(414,373	)		(139,517	)		(50,882	)
	(30,628	)		80,159			384,081			(24,077	)
	773,119			978,639			348,785			40,548
	(1,300,615	)		(914,257	)		—			(66,063	)
	(360	)		(291	)		—			(609	)
	—			—			—			—
	(303,662	)		(398,178	)		(103,547	)		(48,389	)
	(84	)		(127	)		(657	)		(446	)
	(1,604,721	)		(1,312,853	)		(104,204	)		(115,507	)
	38,713,952			26,780,847			1,192,523			882,388
	48,365			31,810			838			2,014
	—			—			—			—
	1,472,734			1,216,009			103,537			114,473
	441			418			656			1,055
	—			—			—			—
	(42,139,581	)		(27,638,140	)		(1,099,616	)		(2,451,240	)
	(66,952	)		(15,123	)		(3,659	)		(24,760	)
	(1,971,041	)		375,821			194,279			(1,476,070	)
	—			—			—			—
	—			—			—			—
	—			—			—			—
	(2,802,643	)		41,607			438,860			(1,551,029	)
	103,218,053			103,176,446			4,300,131			5,851,160
$	100,415,410		$	103,218,053		$	4,738,991		$	4,300,131
$	(84,231	)	$	(79,634	)	$	(67,058	)	$	(95,855	)
	10,468,785			10,433,735			497,927			663,320
	3,930,176			2,706,917			136,255			96,230
	149,733			122,938			11,602			12,685
	(4,289,459	)		(2,794,805	)		(125,295	)		(274,308	)
	(209,550	)		35,050			22,562			(165,393	)
	10,259,235			10,468,785			520,489			497,927
	4,412			2,688			3,958			6,452
	4,916			3,210			96			221
	45			42			74			117
	(6,812	)		(1,528	)		(416	)		(2,832	)
	(1,851	)		1,724			(246	)		(2,494	)
	2,561			4,412			3,712			3,958
	—			—			—			—
	—			—			—			—
	—			—			—			—
	—			—			—			—
	—			—			—			—

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	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	4.87		$	4.64		$	4.91		$	5.01		$	5.01
Income (loss) from investment operations:
Net investment income (loss) (a)		0.22			0.23			0.24			0.26			0.30
Net realized and unrealized gain (loss)		0.02			0.23			(0.27	)		(0.09	)		—	(b)
Total from investment operations		0.24			0.46			(0.03	)		0.17			0.30
Less distributions from:
Net investment income		(0.22	)		(0.23	)		(0.24	)		(0.27	)		(0.30	)
Return of capital		—			—			—	(b)		—			—
Total distributions		(0.22	)		(0.23	)		(0.24	)		(0.27	)		(0.30	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	4.89		$	4.87		$	4.64		$	4.91		$	5.01
Total Return (c)		5.09	%		10.09	%		–0.71	%		3.31	%		6.17	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	344,508		$	302,997		$	243,712		$	185,959		$	175,154
Ratios to average net assets:
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Gross expenses		0.67	%		0.69	%		0.69	%		0.71	%		0.73	%
Net investment income (loss)		4.57	%		4.78	%		4.94	%		5.28	%		6.00	%
Portfolio turnover rate		21	%		14	%		17	%		28	%		22	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	4.89		$	4.66		$	4.93		$	5.03		$	5.04
Income (loss) from investment operations:
Net investment income (loss) (a)		0.21			0.21			0.23			0.25			0.29
Net realized and unrealized gain (loss)		0.02			0.24			(0.27	)		(0.10	)		(0.01	)
Total from investment operations		0.23			0.45			(0.04	)		0.15			0.28
Less distributions from:
Net investment income		(0.21	)		(0.22	)		(0.23	)		(0.25	)		(0.29	)
Return of capital		—			—			—	(b)		—			—
Total distributions		(0.21	)		(0.22	)		(0.23	)		(0.25	)		(0.29	)
Redemption fees		—			—	(b)		—	(b)		—			—
Net asset value, end of period	$	4.91		$	4.89		$	4.66		$	4.93		$	5.03
Total Return (c)		4.77	%		9.74	%		–0.98	%		3.01	%		5.64	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	5,708		$	7,618		$	1,968		$	1,811		$	2,620
Ratios to average net assets:
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Gross expenses		1.13	%		1.18	%		1.69	%		1.55	%		1.41	%
Net investment income (loss)		4.28	%		4.44	%		4.65	%		5.00	%		5.69	%
Portfolio turnover rate		21	%		14	%		17	%		28	%		22	%

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

32  Annual Report

	Year			For the Period
Selected data for a share of capital	Ended			11/3/16* to
stock outstanding throughout each period	12/31/17			12/31/16
R6 Shares
Net asset value, beginning of period	$	4.87		$	4.84
Income (loss) from investment operations:
Net investment income (loss) (a)		0.22			0.04
Net realized and unrealized gain (loss)		0.02			0.03
Total from investment operations		0.24			0.07
Less distributions from:
Net investment income		(0.22	)		(0.04	)
Total distributions		(0.22	)		(0.04	)
Net asset value, end of period	$	4.89		$	4.87
Total Return (c)		5.09	%		1.37	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,783		$	1,697
Ratios to average net assets (d):
Net expenses		0.55	%		0.55	%
Gross expenses		1.69	%		1.73	%
Net investment income (loss)		4.58	%		4.71	%
Portfolio turnover rate		21	%		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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are 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	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	9.86		$	9.89		$	9.99		$	10.03		$	10.31
Income (loss) from investment operations:
Net investment income (loss) (a)		0.14			0.13			0.10			0.09			0.11
Net realized and unrealized gain (loss)		(0.07	)		(0.03	)		(0.09	)		(0.04	)		(0.25	)
Total from investment operations		0.07			0.10			0.01			0.05			(0.14	)
Less distributions from:
Net investment income		(0.11	)		(0.09	)		(0.06	)		(0.05	)		(0.11	)
Net realized gains		—			—			—			—			(0.03	)
Return of capital		(0.03	)		(0.04	)		(0.05	)		(0.04	)		—
Total distributions		(0.14	)		(0.13	)		(0.11	)		(0.09	)		(0.14	)
Redemption fees		—			—			—	(b)		—			—	(b)
Net asset value, end of period	$	9.79		$	9.86		$	9.89		$	9.99		$	10.03
Total Return (c)		0.72	%		1.00	%		0.05	%		0.49	%		–1.39	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	100,390		$	103,175		$	103,150		$	114,705		$	68,086
Ratios to average net assets:
Net expenses		0.40	%		0.40	%		0.40	%		0.40	%		0.40	%
Gross expenses		0.43	%		0.50	%		0.48	%		0.52	%		0.90	%
Net investment income (loss)		1.43	%		1.30	%		1.05	%		0.87	%		1.06	%
Portfolio turnover rate		108	%		157	%		57	%		46	%		161	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	9.87		$	9.90		$	10.01		$	10.03		$	10.31
Income (loss) from investment operations:
Net investment income (loss) (a)		0.11			0.10			0.17			0.06			0.06
Net realized and unrealized gain (loss)		(0.08	)		(0.03	)		(0.09	)		(0.02	)		(0.23	)
Total from investment operations		0.03			0.07			0.08			0.04			(0.17	)
Less distributions from:
Net investment income		(0.09	)		(0.07	)		(0.14	)		(0.02	)		(0.08	)
Net realized gains		—			—			—			—			(0.03	)
Return of capital		(0.02	)		(0.03	)		(0.05	)		(0.04	)		—
Total distributions		(0.11	)		(0.10	)		(0.19	)		(0.06	)		(0.11	)
Redemption fees		—			—			—	(b)		—			—
Net asset value, end of period	$	9.79		$	9.87		$	9.90		$	10.01		$	10.03
Total Return (c)		0.32	%		0.70	%		0.77	%		0.38	%		–1.70	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	25		$	44		$	27		$	36		$	328
Ratios to average net assets:
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Gross expenses		33.88	%		31.22	%		42.51	%		17.62	%		8.10	%
Net investment income (loss)		1.13	%		1.00	%		1.68	%		0.60	%		0.65	%
Portfolio turnover rate		108	%		157	%		57	%		46	%		161	%

(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 may have been waived or reimbursed by the 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.

34  Annual Report

LAZARD GLOBAL FIXED INCOME PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	8.57		$	8.74		$	9.30		$	9.51		$	10.16
Income (loss) from investment operations:
Net investment income (loss) (a)		0.20			0.20			0.19			0.22			0.23
Net realized and unrealized gain (loss)		0.47			(0.17	)		(0.56	)		(0.21	)		(0.65	)
Total from investment operations		0.67			0.03			(0.37	)		0.01			(0.42	)
Less distributions from:
Net investment income		—			(0.12	)		—			(0.17	)		—
Net realized gains		—			—			—			—			(0.01	)
Return of capital		(0.20	)		(0.08	)		(0.19	)		(0.05	)		(0.22	)
Total distributions		(0.20	)		(0.20	)		(0.19	)		(0.22	)		(0.23	)
Redemption fees		—			—			—	(b)		—			—	(b)
Net asset value, end of period	$	9.04		$	8.57		$	8.74		$	9.30		$	9.51
Total Return (c)		7.87	%		0.22	%		–4.03	%		0.08	%		–4.13	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	4,705		$	4,266		$	5,795		$	6,497		$	5,522
Ratios to average net assets:
Net expenses		0.72	%		0.75	%		0.76	%		0.80	%		0.80	%
Gross expenses		4.39	%		4.70	%		4.26	%		4.12	%		4.94	%
Net investment income (loss)		2.23	%		2.18	%		2.08	%		2.28	%		2.38	%
Portfolio turnover rate		42	%		47	%		60	%		78	%		66	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	8.57		$	8.74		$	9.30		$	9.51		$	10.16
Income (loss) from investment operations:
Net investment income (loss) (a)		0.17			0.17			0.16			0.19			0.20
Net realized and unrealized gain (loss)		0.47			(0.17	)		(0.56	)		(0.21	)		(0.65	)
Total from investment operations		0.64			—	(b)		(0.40	)		(0.02	)		(0.45	)
Less distributions from:
Net investment income		—			(0.10	)		—			(0.14	)		—
Net realized gains		—			—			—			—			(0.01	)
Return of capital		(0.17	)		(0.07	)		(0.16	)		(0.05	)		(0.19	)
Total distributions		(0.17	)		(0.17	)		(0.16	)		(0.19	)		(0.20	)
Redemption fees		—			—			—			—	(b)		—
Net asset value, end of period	$	9.04		$	8.57		$	8.74		$	9.30		$	9.51
Total Return (c)		7.55	%		–0.07	%		–4.31	%		–0.22	%		–4.41	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	34		$	34		$	56		$	56		$	56
Ratios to average net assets:
Net expenses		1.02	%		1.05	%		1.06	%		1.10	%		1.10	%
Gross expenses		42.88	%		27.52	%		27.72	%		20.84	%		28.86	%
Net investment income (loss)		1.95	%		1.88	%		1.80	%		2.01	%		2.09	%
Portfolio turnover rate		42	%		47	%		60	%		78	%		66	%

(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 may have been waived or reimbursed by the 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  35

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2017

1. Organization

The Lazard Funds, Inc. 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-four 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 accordance with 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 (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. 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 and/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/or 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 represents net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency 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, 2017, the Global Fixed Income Portfolio 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, 2017, 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 Corporate Income	$	(3,135,347	)	$	(3,772,316	)
US Short Duration Fixed Income		(390,868	)		(245,264	)
Global Fixed Income		(13,754	)		(3,175	)

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, 2017,

Annual Report  37

the following Portfolio elected to defer such losses as follows:

Portfolio	Post-October Capital Loss Deferral		Late-Year Ordinary Loss Deferral
US Short Duration Fixed Income		$  —		$(40,481)

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	$	340,885,185	$	8,793,382	$	1,814,935	$	6,978,447
US Short Duration Fixed Income		99,906,090		77,049		569,709		(492,660	)
Global Fixed Income		4,714,081		33,690		94,922		(61,232	)

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 tax returns filed for any open tax years (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction’s statute of limitations. The Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.

(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 as follows:

Portfolio	Paid in Capital			Undistributed (Distributions in Excess of) Net Investment Income				Accumulated Net Realized Gain (Loss)
US Corporate Income	$	(3,275,917	)		$	—		$	3,275,917
US Short Duration Fixed Income		(303,748	)			(4,597	)		308,345
Global Fixed Income		(161,880	)			28,780			133,100

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2017		2016		2017		2016
US Corporate Income	$	15,178,118	$	12,768,746	$	—	$	—
US Short Duration Fixed Income*		1,300,975		914,548		—		—
Global Fixed Income†		—		66,672		—		—

*	US Short Duration Fixed Income Portfolio had return of capital distributions of $303,746 and $398,305 in 2017 and 2016, respectively.
†	Global Fixed Income Portfolio had return of capital distributions of $104,204 and $48,835 in 2017 and 2016, respectively .

At December 31, 2017, the components of distributable earnings, on a tax basis, were as follows:

Portfolio	Undistributed Ordinary Income (Deferred Ordinary Losses)			Undistributed Long-Term Capital Gain (Deferred Capital Losses)			Net Unrealized Appreciation (Depreciation) Including Foreign Currency
US Corporate Income		$120,668			$(6,907,663	)		$6,867,916
US Short Duration Fixed Income		(40,481	)		(636,132	)		(536,410	)
Global Fixed Income		—			(16,929	)		(70,327	)

(f) Offering and Organizational Costs—Costs incurred by the Fund in connection with the offering of shares of a new Portfolio or share class of a 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 or share class. Organizational costs are expensed as incurred.

38  Annual Report

(g) Allocation of Expenses—Expenses common to the Fund, Lazard Retirement Series, Inc., Lazard Global Total Return and Income Fund, Inc. and Lazard World Dividend & Income Fund, Inc. (each a “Lazard Fund” and collectively, the “Lazard Fund Complex”), each a registered management investment company advised by the Investment Manager, not directly chargeable to one or more specific Lazard Funds are allocated to the Fund and among its Portfolios primarily on the basis of relative net assets. Expenses of the Fund not directly chargeable to one or more Portfolios are similarly allocated among the Portfolios 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 were 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, 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, and provides the Portfolios with administrative, operational and compliance assistance services. 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 waive its fees and, if necessary, reimburse the Portfolios until May 1, 2018 if the aggregate direct expenses of the Portfolios, exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Funds” (as defined in Form N-1A) and extraordinary expenses, 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
US Corporate Income		0.55	%		0.85	%		0.55	%
US Short Duration Fixed Income		0.40			0.70			N/A
Global Fixed Income (a)		0.70			1.00			N/A

(a) From January 1, 2017 through June 6, 2017, percentages were 0.75% and 1.05%, respectively.

Annual Report  39

In addition to the expense limitation agreements, until May 1, 2018, to the extent the “Total Annual Portfolio Operating Expenses” (as defined in Form N-1A) of the R6 Shares of a Portfolio exceed the Total Annual Portfolio 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, 2017, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:

	Institutional Shares				Open Shares
Portfolio	Management Fees Waived		Expenses Reimbursed		Management Fees Waived		Expenses Reimbursed
US Corporate Income		$375,231	$	—		$18,328	$	—
US Short Duration Fixed Income		35,949		—		98		12,903
Global Fixed Income		23,189		142,090		169		13,916

	R6 Shares
Portfolio	Management Fees Waived		Expenses Reimbursed
US Corporate Income		$9,607		$6,175

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

State Street provides the Fund with custody and certain fund administration and accounting services. For the year ended December 31, 2017, State Street waived $4,688 of its fund administration 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, 2017, BFDS waived $4,079 of its fee for the US Corporate Income Portfolio.

On January 1, 2018, BFDS changed its name to DST Asset Manager Solutions, Inc.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2017, each Director who is not an affiliated person of the Investment Manager or any of its affiliates was paid by the Lazard Fund Complex: (1) an annual retainer of $210,000, (2) an additional annual fee of $30,000 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 $20,000 to the Audit Committee Chair. Effective January 1, 2018, the aggregate compensation for Independent Directors for the Lazard Fund Complex is comprised of: (1) an annual retainer of $225,000, (2) an additional annual fee of $32,500 to the lead Independent Director, and (3) an additional annual fee of $22,500 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

40  Annual Report

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, 2017 were as follows:

Portfolio	Purchases		Sales
US Corporate Income		$102,529,366		$65,920,313
US Short Duration Fixed Income		36,166,980		35,737,671
Global Fixed Income		1,812,349		1,792,683

	US Government and Treasury Securities
Portfolio	Purchases		Sales
US Short Duration Fixed Income		$87,183,123		$80,285,577
Global Fixed Income		334,481		130,449

For the year ended December 31, 2017, 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 is 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, 2017, 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
Global Fixed Income		$65,550		$190,000		1.87%		10

* 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 balance on the 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 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.

Annual Report  41

(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. A Portfolio’s currency investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies. 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. During periods of reduced market liquidity, a Portfolio may not be able to readily sell debt securities at prices at or near their perceived value. An unexpected increase in Portfolio redemption requests, including requests from shareholders who may own a significant percentage of a Portfolio’s shares, which may be triggered by market turmoil or an increase in interest rates, could cause the Portfolio to sell its holdings at a loss or at undesirable prices and adversely affect the Portfolio’s share price and increase the Portfolio’s liquidity risk, Portfolio expenses and/or taxable

distributions. Economic and other developments can adversely affect debt securities markets.

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).

Adjustable rate securities provide a Portfolio with a certain degree of protection against rises in interest rates, although such securities will participate in any declines in interest rates as well. Certain adjustable rate securities, such as those with interest rates that fluctuate directly or indirectly based on multiples of a stated index, are designed to be highly sensitive to changes in interest rates and can subject the holders thereof to extreme reductions of yield and possibly loss of principal.

42  Annual Report

(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. Although certain mortgage-related securities are guaranteed by a third party (such as a US Government agency or instrumentality with respect to government-related mortgage-backed securities) or otherwise similarly secured, the market value of the security, which may fluctuate, is not secured. Mortgage-related securities generally are subject to credit risks associated with the performance of the underlying mortgage properties. Prepayment risk can lead to fluctuations in value of the mortgage-related security which may be pronounced. As with other interest-bearing securities, the prices of certain mortgage-related securities are inversely affected by changes in interest rates. However, although the value of a mortgage-related security may decline when interest rates rise, the converse is not necessarily true, since during periods of declining interest rates the mortgages underlying the security are more likely to be prepaid.

The risks of asset-backed securities are similar to those of mortgage-related securities. However, asset-backed securities present certain risks that are not presented by mortgage-related securities. Primarily, these securities may provide a Portfolio with a less effective security interest in the related collateral than do mortgage-related securities.

(f) Derivatives and Hedging Risk—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. Over-the-counter swap agreements, forward currency contracts, writing or purchasing over-the-counter options on securities (including options on exchange-traded funds and exchange-traded notes), indexes and currencies and other over-the-counter derivatives transactions are subject to the risk of default by the counterparty and can be illiquid. Changes in liquidity may result in significant, rapid and

unpredictable changes in the prices for derivatives. These derivatives transactions, as well as the exchange-traded futures and options in which certain Portfolios may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related index, commodity, interest rate, currency, security or other reference asset. As such, a small investment could have a potentially large impact on a Portfolio’s performance. Purchasing options will reduce returns by the amount of premiums paid for options that are not exercised. 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 when 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 indemnification provisions. 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

Annual Report 43

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. The fair value measurement level within the fair value hierarchy for the assets and liabilities of the Fund 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 assets and liabilities, interest rates, prepayment speeds, credit risk, etc.)

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

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’ assets and liabilities by each fair value hierarchy level as of December 31, 2017:

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, 2017
US Corporate Income Portfolio
Corporate Bonds*	$	—	$	335,826,358		$	—	$	335,826,358
Short-Term Investments		12,037,274		—			—		12,037,274
Total	$	12,037,274	$	335,826,358		$	—	$	347,863,632
US Short Duration Fixed Income Portfolio
Asset-Backed Securities*	$	—	$	8,085,559		$	—	$	8,085,559
Corporate Bonds*		—		44,395,174			—		44,395,174
Municipal Bonds		—		883,901			—		883,901
US Government Securities		—		17,572,466			—		17,572,466
US Treasury Securities		—		27,675,496			—		27,675,496
Short-Term Investments		800,834		—			—		800,834
Total	$	800,834	$	98,612,596		$	—	$	99,413,430
Global Fixed Income Portfolio
Assets:
Corporate Bonds*	$	—	$	1,619,312		$	—	$	1,619,312
Foreign Government Obligations*		—		2,134,953			—		2,134,953
Quasi Government Bonds*		—		11,788			—		11,788
Supranationals		—		334,889			—		334,889
US Municipal Bonds		—		139,345			—		139,345
US Treasury Securities		—		431,280			—		431,280
Short-Term Investments		59,777		—			—		59,777
Other Financial Instruments†
Forward Currency Contracts		—		26,321			—		26,321
Total	$	59,777	$	4,697,888		$	—	$	4,757,665
Liabilities:
Other Financial Instruments†
Forward Currency Contracts	$	—	$	(52,056	)	$	—	$	(52,056	)

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

44  Annual Report

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, 2017.

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, 2017, the approximate average monthly notional exposure for derivative instruments was as follows:

Forward currency contracts $4,800,000

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2017:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	26,321
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	52,056

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2017 was:

	Amount
Realized Gain (Loss) on Derivatives
Foreign Exchange Risk:
Net realized gain (loss) on forward currency contracts	$	(26,180	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on forward currency contracts	$	16,784

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, 2017.

As of December 31, 2017, the Global Fixed Income Portfolio held 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  45

The required information for the affected Portfolio is presented in the below table, as of December 31, 2017:

Global Fixed Income Portfolio

Description	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Assets and Liabilities		Net Amounts of Assets Presented in the Statement of Assets and Liabilities
Forward Currency Contracts		$26,321		$   —		$26,321

				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
Citibank NA		$	3,426		$	(3,426	)		$	—		$	—
HSBC Bank USA NA			21,576			(21,576	)			—			—
JPMorgan Chase Bank NA			1,319			(1,319	)			—			—
Total		$	26,321		$	(26,321	)		$	—		$	—

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		$52,056		$  —		$52,056

				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
Citibank NA		$	13,847		$	(3,426	)		$	—		$	10,421
HSBC Bank USA NA			30,783			(21,576	)			—			9,207
JPMorgan Chase Bank NA			7,426			(1,319	)			—			6,107
Total		$	52,056		$	(26,321	)		$	—		$	25,735

11. Subsequent Events

Management has evaluated subsequent events affecting the Fund through the issuance of the financial statements and has determined that, aside from items previously disclosed within the Notes to Financial Statements and the following, there were no subsequent events that required adjustment or disclosure.

Subsequent to December 31, 2017, the US Corporate Income Portfolio received settlement proceeds in the amount of $8,185 from a foreign exchange trading class action lawsuit. The proceeds from the settlement represent a realized gain and were recorded in the period received.

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 Shareholders of Lazard US Corporate Income Portfolio, Lazard US Short Duration Fixed Income Portfolio and Lazard Global Fixed Income Portfolio:

Opinion on the Financial Statements and Financial Highlights

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, 2017, 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, the financial highlights for each of the periods presented, and the related notes to the financial statements. The financial highlights for the year ended December 31, 2013 were audited by other auditors whose report, dated February 28, 2014, expressed an unqualified opinion on those financial highlights. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Portfolios, as of December 31, 2017, and 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 periods presented, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolios’ management. Our responsibility is to express an opinion on the Portfolios’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolios in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Portfolios are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2017, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

New York, New York

February 28, 2018

We have served as the auditor of one or more Lazard Fund Complex investment companies since 2004.

Annual Report  47

The Lazard Funds, Inc. Proxy Voting Results (unaudited)

A Joint Special Meeting of Shareholders of the Fund and Lazard Retirement Series, Inc. was held on October 20, 2017, to vote on the following proposals. The proposals received the required number of votes of shareholders and were adopted.

Proposal 1:

To elect each of Franci J. Blassberg, Trevor W. Morrison and Nathan A. Paul as a Fund Director.

Director	For		Withhold Authority
Franci J. Blassberg		1,322,185,144		18,431,907
Trevor W. Morrison		1,323,575,840		17,041,212
Nathan A. Paul		1,331,727,319		8,889,732

Proposal 2A:

To approve revising the Portfolio’s fundamental investment restrictions on issuing senior securities, borrowing and pledging or mortgaging its assets.

Portfolio	For		Against		Abstain
US Corporate Income		54,986,470		10,420		29,798
US Short Duration Fixed Income		9,365,813		—		—
Global Fixed Income		401,762		—		—

Proposal 2B:

To approve revising the Portfolio’s fundamental investment restrictions on purchasing or selling commodities or commodities contracts.

Portfolio	For		Against		Abstain
US Corporate Income		54,855,897		141,139		29,652
US Short Duration Fixed Income		9,365,813		—		—
Global Fixed Income		401,762		—		—

Proposal 2C:

To approve revising the Portfolio’s fundamental investment restriction on purchasing securities on margin.

Portfolio	For		Against		Abstain
US Corporate Income		53,340,173		1,656,864		29,652
US Short Duration Fixed Income		9,365,813		—		—
Global Fixed Income		401,762		—		—

48  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 (64)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present) 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 (72)	Director (August 1995)	Davidson Capital Management Corporation, an investment manager, President (1978 – present) Landseer Advisors LLC, an investment manager, Senior Advisor (2012 – 2014)
Nancy A. Eckl (55)	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)
Trevor W. Morrison (46)	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. (73)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present) Resource Americas, Inc., a real estate asset management company, Director (2016 – present)
Robert M. Solmson (70)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

Annual Report  49

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):
Ashish Bhutani (57)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present) Lazard Ltd, Vice Chairman and Director (2010 – present)
Nathan A. Paul (45)	Director (October 2017) Chief Executive Officer and President (February 2017)	Investment Manager, Chief Business Officer (April 2017 – present) and Managing Director (2003 – present) Investment Manager, General Counsel (2002 – April 2017)

(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, 2018, 41 active investment portfolios). Each Director serves an indefinite term, until his or her successor is elected, and each Director serves in the same capacity for the other funds in the Lazard Fund Complex.
(3)	“Independent Directors” are not “interested persons” (as defined in the 1940 Act) of the Fund.
(4)	Messrs. Bhutani and Paul 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.lazardassetmanagement.com.

50  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):
Mark R. Anderson (47)	Chief Compliance Officer (September 2014), Vice President and Secretary (February 2017)	Managing Director (since February 2017, previously Director), General Counsel (since April 2017) and Chief Compliance Officer (since September 2014) of the Investment Manager Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014)
Christopher Snively (33)	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 (59)	Treasurer (May 2003)	Vice President of the Investment Manager
Tamar Goldstein (42)	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 (36)	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 (43)	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 Nathan A. Paul, Chief Executive Officer and President (since February 2017; previously, Vice President and Secretary since April 2002), whose information is included in the Interested Directors section above.

Annual Report  51

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

Tax Information

Year Ended December 31, 2017

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2017:

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 U.S. Securities and Exchange Commission (the “SEC”) website at https://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 https://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 https://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.

52  Annual Report

The Lazard Funds, Inc.

30 Rockefeller Plaza

New York, New York 10112-6300

Telephone: 800-823-6300

https://www.lazardassetmanagement.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

DST Asset Manager Solutions, 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

Proskauer Rose LLP

Eleven Times Square

New York, New York 10036-8299

http://www.proskauer.com

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

Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardassetmanagement.com
LZDPS026

Lazard Funds Annual Report

December 31, 2017

Real Assets 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
	•  Assets and income
	•  Account transactions
	•  Credit history
	•  Transaction history
	When you are no longer our customer, we continue to share your information as described in this notice.
How?	All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information, the reasons Lazard chooses to share, and whether you can limit this sharing.

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

Questions? Call 800-823-6300 or go to https://www.lazardassetmanagement.com

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

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
7	Performance Overviews
13	Information About Your Portfolio’s Expenses
15	Portfolio Holdings Presented by Sector
16	Portfolios of Investments
16	Lazard US Realty Income Portfolio
17	Lazard US Realty Equity Portfolio
18	Lazard Global Realty Equity Portfolio
20	Lazard Global Listed Infrastructure Portfolio
22	Lazard Real Assets and Pricing Opportunities Portfolio
29	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
61	Report of Independent Registered Public Accounting Firm
63	Proxy Voting Results
64	Board of Directors and Officers Information
67	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.lazardassetmanagement.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,

Record high global stock prices were supported by synchronized global economic growth in 2017. Markets also benefited from benign inflation, accommodative central bank policy, and strong corporate profits. Volatility remained at historic lows despite tension between North Korea and the United States and political uncertainty in Brazil, Spain, and the United Kingdom.

Emerging markets equity and debt advanced strongly in 2017. Emerging markets continued to benefit from low inflation, modest but steady growth, and improving profitability as global demand recovers and businesses tighten fiscal discipline. Earnings improvement in China and Korea drove returns in emerging markets. While our outlook for the asset class remains positive, our emerging markets investment teams are vigilant about potential risks. This includes an increase in developed markets inflation that could lead to central banks raising rates too quickly and, in effect, a global growth slowdown.

European equity markets performed well in 2017 as the region’s economic recovery deepened and investors grew more confident in its underlying strength. During the year, a market-friendly result to France’s presidential election helped buoy European sentiment. UK equities generated solid absolute returns amid a challenging political backdrop and Brexit negotiations. In addition, the European Central Bank announced that it would extend its monthly bond-buying program into 2018, but plans to reduce the pace of these purchases.

The US economy appears to be in better shape than is commonly appreciated. A new US tax bill represents one of the most significant changes to the US tax code in over 30 years as it changes individual, corporate, and international taxes. Our US equity team believes this could lift corporate earnings and add to momentum in US equity markets in 2018. The US yield curve continued to flatten as short-term rates moved higher, driven by the three US rate hikes during 2017 and the prospect of additional hikes in 2018.

We are privileged that you have turned to Lazard for your investment needs and value your continued confidence in our investment management capabilities. Be assured that our specialist investment teams, supported by our global infrastructure, are committed to delivering the long-term patterns of performance that you expect.

Sincerely,

Lazard Asset Management LLC

2  Annual Report

The Lazard Funds, Inc. Investment Overviews

Real Estate Securities

The MSCI All Country World Index (“ACWI”) Real Estate^® Index (the “Real Estate Index”) returned 12.59% in 2017. This compares to the MSCI ACWI^® Index (the “Equity Index”) return of 24.0% during the year. The MSCI ACWI Investable Market Index (“IMI”) Core Real Estate^® Index also underperformed the broader stock market as the Federal Reserve prepared to progressively increase interest rates for the remainder of the year.

Emerging real estate markets (“EM”) of China and India delivered the highest total return during the year due to a recovery in domestic sentiment in those countries. A strengthening investment market and a stark improvement in their overall political sentiment contributed to their positive performance during the period.

Developed real estate markets (“DM”) in the United States and Japan delivered among the lowest total return as the Federal Reserve prepared to progressively increase interest rates through the remainder of the year. The DM regions constitute the largest weight within the Real Estate Index, and as a result drove its overall underperformance relative to the Equity Index.

In the United States, technology, industrial and residential REITs were the top performers during the year. Retail and healthcare REITs underperformed the MSCI USA IMI Core Real Estate^® Index during the year. Interest rates may increase in 2018, coupled with an increase in commercial real estate supply across the apartment, healthcare, and lodging sectors. Further, negative sentiment around retailers and an increased propensity of store closures could continue to negatively impact owners of lower quality retail real estate in the country. However, improved capital markets access may facilitate accretive transaction activity among owners of higher-quality retail real estate in the country.

Global Listed Infrastructure

Despite escalating political tensions in North Korea and extreme weather/hurricane events in North America, almost all equity markets in the MSCI World^® Index delivered a strong double-digit performance during the year. Synchronous global economic

growth coupled with benign inflation, accommodative central bank policy, and strong corporate profits continued to propel equity indices to record highs. There were more hawkish statements from the Federal Reserve and interest rate hikes from the Bank of Canada and Bank of England. Increased demand for oil, a reduction in inventories, and the effects of multiple hurricanes also sent oil prices higher. The European economic recovery was boosted by the market-friendly outcome of the French elections, when Emmanuel Macron was elected president of France. Many euro zone markets rallied after August’s sell off, notably Germany and France. In the United States, President Trump’s tax plan passed both houses in time for Christmas. This will see the headline corporate tax rate reduced from 35% to 21%, a range of personal tax cuts and higher taxes on foreign corporate earnings. In December, the Fed hiked rates for a fifth time since December 2015. However, markets had fully priced this in, so the impact was minimal. The United Kingdom and the European Union struck a “Brexit” divorce deal after months of stalled progress. Spanish separatist parties won a majority of seats in December’s Catalonian regional elections, causing some market volatility in Spain.

Real Assets and Pricing Opportunities

Global equities generated strong gains over the year. The MSCI World Index had positive month-end returns for twelve consecutive months in 2017, in US dollar terms. This pattern reflected a very low volatility market environment. European equities outperformed despite important elections in France and Germany. The Japanese market also did well due in part to evidence of improving corporate governance. In terms of sector performance, investors continued to push up prices of information technology stocks, while defensive sectors such as utilities and consumer staples lagged. The energy sector struggled throughout the period, despite a recovery in crude oil prices in the second half of the year. In this environment, listed infrastructure stocks and global REITs posted favorable performance but lagged the broader global equity market.

The global economy ended 2017 on a strong note, fueled by supportive monetary and fiscal policies,

Annual Report  3

solid labor markets, robust global trade and manufacturing activity, and benign inflation in many countries. Commodities, represented by the Bloomberg Commodity^® Index, returned almost 2% in US dollar terms. Agricultural commodities and energy sub-indices posted negative returns, while gold and industrial metals were positive.

Lazard US Realty Income Portfolio

For the year ended December 31, 2017, the Lazard US Realty Income Portfolio’s Institutional Shares posted a total return of 3.20%, while Open Shares posted a total return of 2.90%, as compared with the 9.85% blended index return for the 50% MSCI REIT Preferred^® Index/50% MSCI USA IMI Core Real Estate Index (the “US Realty Income Index”).

Stock selection hurt relative performance during the year. During the period, 63% of the Portfolio was invested in common equities, and 35% of the Portfolio was invested in preferred equities. Uniti Group (UNIT), Colony NorthStar (CLNS), and Pennsylvania REIT (PEI) hurt relative performance the most during the period. UNIT and PEI were hurt by the weak performance of their underlying tenants, while CLNS reported results below market expectations.

National Storage Affiliates (NSA), Sun Communities, and Park Hotels had the most positive contribution to relative performance during the year. All three companies benefited from strong results and capital markets access during the year.

Lazard US Realty Equity Portfolio

For the year ended December 31, 2017, the Lazard US Realty Equity Portfolio’s Institutional Shares posted a total return of 7.93%, while Open Shares posted a total return of 7.69%, as compared with the 6.78% return for the MSCI USA IMI Core Real Estate Index.

American Tower, Equity LifeStyle, and NSA contributed the most to relative performance during the year. All three companies benefited from strong results and capital markets access during the year. UNIT, Simon Property (SPG), and HCP hurt relative performance the most during the period. UNIT and HCP were hurt by the weak performance of their

underlying tenants, while SPG benefited as a result of the bid for its largest peer later in the year.

Lazard Global Realty Equity Portfolio

For the year ended December 31, 2017, the Lazard Global Realty Equity Portfolio’s Institutional Shares posted a total return of 14.69%, while Open Shares posted a total return of 14.36%, as compared with the 15.53% return for the MSCI ACWI IMI Core Real Estate Index.

Stock selection in the United States contributed positively to relative performance during the year, while an under-allocation to China hurt relative performance. Vonovia (Germany), Link REIT (Hong Kong), and Megaworld (Philippines) were the largest contributors to relative performance during the period. All three companies benefited from strong results and accretive investment activity during the year. UNIT (US), SPG (US), and Mitsui Fudosan (Japan) hurt relative performance the most during the period. UNIT was hurt by the weak performance of its key tenant, while SPG benefited as a result of the bid for its largest peer later in the year. Mitsui reported results that fell short of market expectations for the period.

Lazard Global Listed Infrastructure Portfolio

For the year ended December 31, 2017, the Lazard Global Listed Infrastructure Portfolio’s Institutional Shares posted a total return of 20.80%, while Open Shares posted a total return of 20.47%, as compared with the 13.95% return for the Global Listed Infrastructure Index (USD Hedged)¹ and 22.40% return for the MSCI World Index.

A top performer for the Portfolio during the period was Spanish toll road operator Abertis. In March 2017, the Madrid High Court issued a ruling supporting the enforceability of the compensation mechanism for Abertis’ AP-7 agreement, and placed onerous conditions on any potential appeal. This agreement provides Abertis with traffic risk protection that the Spanish government has not been willing to recognize. Considering the decline in Spanish traffic after the signing of the agreement, Abertis has accounted for the difference between the actual earnings before interest, tax, depreciation, and amortization (EBITDA)

4  Annual Report

and the EBITDA based on the guaranteed traffic level, generating a trade receivable that the government could pay at the end of the concession by 2021. If confirmed, this would remove a large risk overhanging the company. The other major positive for the Albertis stock price resulted from the bidding war between Italian toll road operator Atlantia and German construction group Hochtief (controlled by Spanish company ACS). Atlantia made an all-cash offer in May for Abertis, valuing the latter at EUR16.50 per share. In October, Hochtief made a significantly improved offer of EUR18.76 per share. The process for reviewing the offers is expected to take approximately three months, which leaves Atlantia time to reconsider the levels of the offers received.

Rail infrastructure network CSX was another significant positive contributor to performance. CSX is a US rail network not considered as efficiently run as many of its North American peers. In March, CSX hired Hunter Harrison, the former CEO at rival firm Canadian Pacific, to become its new CEO. The strong market performance of CSX following this major coup reflected market optimism that Mr. Harrison would successfully implement his “precision railroading model” at CSX, greatly improving the network’s profitability. We exited our entire position in CSX shares, even before Mr. Harrison had been offered the role, as we believed that the potential improvements in asset returns had already been reflected in the share price.

Another strong performer was French toll road provider Vinci. Early in the year, the company performed strongly as it released a very solid set of 2016 results. The increase in EBITDA margins for its French toll roads business to 72.6% was a highlight. This underlined the combination of a positive top-line performance, driven by healthy traffic, but also strong cost discipline. Vinci has adopted a zero-base budgeting approach to its contracting business in order to improve margins, even if an uptick in growth fails to materialize. The company held an interesting investor day in November, focusing on less well-known parts of its business. This update emphasized our conservative valuation of these peripheral assets, which includes Lyon airport in France, Santiago airport in Chile and the Lamsac highway concession in Peru. It also rein-

forced our view that Vinci, despite its large size, has remained highly disciplined in deploying capital.

The largest detractor from the Portfolio’s performance was the decline in French satellite operator SES. The company’s third quarter results were softer than expected, with revenue approximately 1.3% below consensus, and the company modestly lightened its year-end guidance by around 1% which, in our opinion, hardly warranted the resulting 15% price decline. The slight downgrade resulted from problems within the fixed data division, representing around 10% of revenues and, we estimate, less than 8% of overall profit. The key driver is that the on-boarding of newly contracted fixed data businesses will entail higher operational expenditure and a longer deployment lead time, encroaching into 2018. The result is that an anticipated margin inflection will be delayed. For SES, this is only a 1% downgrade to consensus, which we believe has nothing to do with demand. We believe SES is one of the most attractive companies in the space and trades on some of the lowest multiples in its listed history, when adjusting for the accounting losses currently being generated within the O3b operations, the satellite constellation, which is a wholly-owned subsidiary of SES.

The second largest detractor over the period was Californian electricity utility company Pacific Gas and Electric Company (PG&E). This was linked to the northern California wildfires in October, which destroyed 245,000 acres and 8,700 structures, resulting in the loss of 42 lives. While it is plausible that at least some of the fires may be attributable to PG&E’s electrical infrastructure, the degree to which this caused the fires is unknown and will not be resolved quickly. The resultant fallout negatively impacted PG&E’s stock performance and in late December, PG&E announced the suspension of its dividend, which resulted in a further significant decline in stock value. Reasons that PG&E provided for its dividend suspension were the uncertainty associated with the causes and potential liabilities associated with these wildfires. Insurance claims for the wildfires reached $9.4 billion by the end of November, and there is a risk that PG&E may be found liable for these property

Annual Report  5

damages, as well as some additional public claims and potential uninsured claims.

Lazard Real Assets and Pricing Opportunities Portfolio

For the year ended December 31, 2017, the Lazard Real Assets and Pricing Opportunities Portfolio’s Institutional Shares posted a total returns of 9.90%, as compared with the 14.49% return for the blended benchmark of 70% MSCI World Index (USD Hedged)/30% Bloomberg Barclays World Government Inflation-Linked Bond^® Index (USD Hedged) (the “Real Assets Index”).The Open Shares posted a total return of 9.28% for the period since inception on January 9, 2017 through December 31, 2017, as compared with the 13.21% return for the Real Assets Index for the same period.

Within equities, listed infrastructure stocks Vinci, Abertis, and Fraport—French, Spanish, and German companies, respectively—helped the Portfolio. In aggregate, pricing power stocks contributed strongly to performance, while global REITs were positive contributors but to a lesser degree.

Our holding in an index-tracking exchange traded note hurt performance. We subsequently closed out the position. US-based energy companies Range Resources and, to a lesser degree, Helix Energy Solutions also hurt relative performance.

In terms of positive contributors, exposure to a commodity futures total return swap as well as US stocks Deere and Westlake Chemical, a US-based agricultural equipment manufacturer and petrochemical manufacturer, respectively, helped performance. Global inflation-linked bonds also contributed positively to performance. Overweight exposure to bonds in Mexico and the euro zone as well as underweight exposure to the United Kingdom helped performance. Within currency exposures, positioning in the Mexican peso helped performance, while exposure to the euro hurt performance.

The Portfolio is passively hedged to US dollars using forward currency contracts. Within commodities, we use futures and total return swaps to gain exposure to these assets. Commodity futures were slightly positive contributors to returns.

Notes to Investment Overviews:

All Portfolios’ 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. Returns for a period of less than one year are 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, 2017; 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 Listed Infrastructure Index (USD Hedged) is an unmanaged index created by the 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.

6  Annual Report

The Lazard Funds, Inc. Performance Overviews

Lazard US Realty Income Portfolio

Comparison of Changes in Value of $10,000 Investment in the Open Shares of Lazard US Realty Income Portfolio, US Realty Income Index, 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, 2017

	Institutional Shares										Open Shares
	One Year			Five Years			Since Inception			†	One Year			Five Years			Since Inception			†
’
US Realty Income Portfolio**		3.20	%		4.65	%		8.81	%			2.90	%		4.36	%		8.76	%
US Realty Income Index		9.85	%		8.45	%		10.68	%			9.85	%		8.45	%		9.97	%
FTSE NAREIT All Equity REITs Index		8.67	%		9.84	%		13.17	%			8.67	%		9.84	%		8.13	%
Wells Fargo Hybrid and Preferred Securities REIT Index		11.49	%		6.88	%		7.97	%			11.49	%		6.88	%		10.96	%
Hybrid Index		10.11	%		8.50	%		10.73	%			10.11	%		8.50	%		10.00	%
S&P 500 Index		21.83	%		15.79	%		17.08	%			21.83	%		15.79	%		10.46	%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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”), if any, 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 Portfolio shares, 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 US Realty Income Index links the performance of the Hybrid Index for all periods through March 31, 2017 (when the Portfolio’s benchmark index changed) and 50/50 blend of the MSCI REIT Preferred® Index and MSCI USA IMI Core Real Estate® Index for all periods thereafter. The Hybrid Index is an unmanaged index created by the 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 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, representing roughly 89% of the total market capitalization of the FTSE NAREIT US Real Estate® Index Series which also includes mortgage REITs. The Wells Fargo Hybrid and Preferred Securities REIT Index tracks the performance of fixed-rate US dollar-denominated preferred securities issued in the US

Annual Report  7

	domestic market. Qualifying securities must have a par amount of $25, must have a fixed coupon or dividend schedule, and must have a minimum amount outstanding of $50 million. The index includes preferred shares (perpetual preferred securities) and depository shares. The MSCI REIT Preferred Index is a preferred stock market capitalization-weighted total return index of certain exchange-traded perpetual preferred securities issued by US Equity and US Hybrid REITs. The MSCI USA IMI Core Real Estate Index was launched on October 2014 and is a free-float-adjusted market capitalization index that consists of large, mid and small cap stocks engaged in the ownership, development and management of specific core property type real estate. The index excludes companies, such as real estate services and real estate financing companies, that do not own properties. The S&P 500 Index is a market capitalization-weighted index of 500 companies in leading industries of the US economy. The indices are unmanaged, have no fees or costs and are not available for investment.
	As of April 1, 2017, the Hybrid Index was replaced with the US Realty Income Index. The Investment Manager believes that the new benchmark is an appropriate alternative to the prior benchmark.
**	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 the 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, FTSE NAREIT All Equity REITs Index and MSCI US REIT^® Index*

Average Annual Total Returns*

Periods Ended December 31, 2017

	Institutional Shares										Open Shares
	One Year			Five Years			Since Inception			†	One Year			Five Years			Since Inception			†
US Realty Equity Portfolio**		7.93	%		8.75	%		13.57	%			7.69	%		8.47	%		17.60	%
FTSE NAREIT All Equity REITs Index		8.67	%		9.84	%		13.17	%			8.67	%		9.84	%		14.54	%
MSCI US REIT Index		3.74	%		7.99	%		11.10	%			3.74	%		7.99	%		12.76	%
MSCI USA IMI Core Real Estate Index		6.78	%		N/A			N/A				6.78	%		N/A			N/A

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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, representing roughly 89% of the total market capitalization of the FTSE NAREIT US Real Estate Index Series which also includes mortgage REITs. The MSCI US REIT Index is a free-float-adjusted market capitalization index that is comprised of equity REITs. The index is based on its parent index, the MSCI USA IMI®, which captures large, mid and small caps securities. With 152 constituents, the MSCI US REIT Index represents about 99% of the US REIT universe and securities are classified in the Equity REITs Industry (under the Real Estate sector) according to the Global Industry Classification Standard (GICS®). It however excludes Mortgage REIT and selected Specialized REITs. The MSCI USA IMI Core Real Estate Index was launched on October 2014 and is a free-float-adjusted market capitalization index that consists of large, mid and small cap stocks engaged in the ownership, development and management of specific core property type real estate. The index excludes companies, such as real estate services and real estate financing companies, that do not own properties. The indices are unmanaged, have no fees or costs and are not available for investment.
	Effective as of January 1, 2018, the FTSE NAREIT All Equity REITs Index was replaced with the MSCI US REIT Index. The Investment Manager believes that the new benchmark is an appropriate alternative to the prior benchmark.
**	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 the 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, FTSE EPRA/NAREIT Global ex-US/FTSE EPRA/NAREIT Global Linked Index (the “Global Realty Linked Index”) and MSCI ACWI REITs^® Index*

Average Annual Total Returns*

Periods Ended December 31, 2017

	Institutional Shares										Open Shares
	One Year			Five Years			Since Inception			†	One Year			Five Years			Since Inception			†
Global Realty Equity Portfolio**		14.69	%		5.68	%		10.92	%			14.36	%		5.36	%		13.61	%
FTSE EPRA/NAREIT Global Index		13.99	%		6.22	%		10.32	%			13.99	%		6.22	%		11.49	%
Global Realty Linked Index		13.99	%		6.07	%		10.72	%			13.99	%		6.07	%		11.46	%
MSCI ACWI REITs Index		10.50	%		7.05	%		10.49	%			10.50	%		7.05	%		11.47	%
MSCI ACWI IMI Core Real Estate® Index		15.53	%		N/A			N/A				15.53	%		N/A			N/A

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The Portfolio was previously known as Lazard International Realty Equity Portfolio. As of August 15, 2013, the Portfolio changed its name to Lazard Global Realty Equity Portfolio and adopted its current investment strategies.
	The performance data of the indices have been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to their accuracy. The Global Realty Linked Index is an unmanaged index created by the Investment Manager which links the performance of the FTSE EPRA/NAREIT Global Index ex-US for all periods through August 14, 2013 (after which the Portfolio’s investment strategy changed from investing primarily in non-US realty companies to a global approach) and the FTSE EPRA/NAREIT Global Index for all periods thereafter. Both the FTSE EPRA/NAREIT Global Index and the FTSE EPRA/NAREIT Global Index ex-US 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 Index ex-US excludes those REITs listed or incorporated in the United States. The MSCI ACWI REITs Index is a free-float-adjusted market capitalization index that captures large and mid cap representation across 23 developed and 24 emerging markets countries. All securities in the index are classified in the Equity REITs Industry (under the Real Estate) according to the GICS. The MSCI ACWI IMI Core Real Estate Index was launched on May 2015 and is a free-float-adjusted market capitalization index that consists of large, mid and small-cap stocks across 23 developed markets and 23 emerging markets countries engaged in the ownership, development and management of specific core property type real estate. The index excludes companies, such as real estate services and real estate financing companies, that do not own properties. The indices are unmanaged, have no fees or costs and are not available for investment.
	Effective as of January 1, 2018, the FTSE EPRA/NAREIT Global Index was replaced with the MSCI ACWI REITs Index. The Investment Manager believes that the new benchmark is an appropriate alternative to the prior benchmark.
**	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 the 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, Global Listed Infrastructure Index (USD Hedged) and MSCI World^® Index*

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year			Five Years			Since Inception			†
Institutional Shares**		20.80	%		16.59	%		13.05	%
Open Shares**		20.47	%		16.29	%		12.71	%
Global Listed Infrastructure Index (USD Hedged)		13.95	%		12.86	%		9.88	%
MSCI World Index		22.40	%		11.64	%		9.85	%

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the 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, if any, 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 Portfolio shares, 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 Global Listed Infrastructure Index (USD Hedged) is an unmanaged index created by the 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 USD) tracked a 50% exposure to the global developed markets utilities sector and a 50% exposure to the global developed markets infrastructure sector. The FTSE Developed Core Infrastructure 50/50 (100% Hedged to USD Net Tax) Index tracks a 50% exposure to the global developed markets utilities sector and a 50% exposure to the global developed markets infrastructure sector. The MSCI World Index is a free-float-adjusted market capitalization index that is designed to measure global developed markets equity performance. The index consists of 23 developed markets country indices. 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

Lazard Real Assets and Pricing Opportunities Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Real Assets and Pricing Opportunities Portfolio, Real Assets Index (USD Hedged) and MSCI World Index*

Average Annual Total Returns*

Periods Ended December 31, 2017

	One Year			Since Inception			†
Institutional Shares**		9.90	%		9.84	%
Open Shares**		N/A			9.28	%
Real Assets Index (USD Hedged)		14.49	%	14.49% (Institutional Shares)
				13.21% (Open Shares)
MSCI World Index		22.40	%	22.40% (Institutional Shares)
				22.18% (Open Shares)

*	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized.
	Performance results do not include adjustments made for financial reporting purposes in accordance with GAAP, if any, 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 Portfolio shares, 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 Real Assets Index (USD Hedged) is an unmanaged index created by the Investment Manager, which is the performance of the 70% MSCI World Index (USD Hedged) and the 30% Bloomberg Barclays World Government Inflation-Linked Bond® Index (USD Hedged). The MSCI World Index is a free-float-adjusted market capitalization index that is designed to measure global developed markets equity performance. The index consists of 23 developed markets country indices. The Bloomberg Barclays World Government Inflation-Linked Bond Index (USD Hedged) measures the performance of investment grade, government inflation-linked debt from 12 different developed markets countries. 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 December 30, 2016 and for the Open Shares was January 9, 2017.

12  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 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, 2017 through December 31, 2017 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.

Annual Report  13

Portfolio	Beginning Account Value 7/1/17		Ending Account Value 12/31/17		Expenses Paid During Period* 7/1/17 - 12/31/17		Annualized Expense Ratio During Period 7/1/17 - 12/31/17
US Realty Income
Institutional Shares
Actual	$	1,000.00	$	1,008.50	$	5.06		1.00	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.16	$	5.09		1.00	%
Open Shares
Actual	$	1,000.00	$	1,007.00	$	6.58		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.65	$	6.61		1.30	%
US Realty Equity
Institutional Shares
Actual	$	1,000.00	$	1,025.80	$	5.11		1.00	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.16	$	5.09		1.00	%
Open Shares
Actual	$	1,000.00	$	1,024.70	$	6.43		1.26	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.85	$	6.41		1.26	%
Global Realty Equity
Institutional Shares
Actual	$	1,000.00	$	1,058.00	$	5.19		1.00	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.16	$	5.09		1.00	%
Open Shares
Actual	$	1,000.00	$	1,056.20	$	6.74		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.65	$	6.61		1.30	%
Global Listed Infrastructure
Institutional Shares
Actual	$	1,000.00	$	1,041.10	$	4.94		0.96	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.37	$	4.89		0.96	%
Open Shares
Actual	$	1,000.00	$	1,039.80	$	6.22		1.21	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.11	$	6.16		1.21	%
Real Assets and Pricing Opportunities
Institutional Shares
Actual	$	1,000.00	$	1,051.60	$	4.65		0.90	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.67	$	4.58		0.90	%
Open Shares
Actual	$	1,000.00	$	1,050.00	$	5.99		1.16	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.36	$	5.90		1.16	%

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

14  Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2017

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		—	%		2.9	%		1.2	%		7.5	%		5.9	%
Consumer Staples		—			—			—			—			3.5
Energy		—			—			—			7.5			3.0
Financials		11.7			—			—			—			4.4
Health Care		—			—			—			—			2.7
Industrials		—			—			—			40.9			11.0
Information Technology		—			—			—			—			2.5
Materials		—			—			—			—			2.3
Real Estate		87.0			94.8			95.0			—			18.2
Telecommunication Services		—			—			—			—			1.3
Utilities		—			—			—			35.4			7.6
Sovereign Debt		—			—			—			—			10.6
US Treasury Securities		—			—			—			—			17.4
Short-Term Investments		1.3			2.3			3.8			8.7			9.6
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

Annual Report  15

The Lazard Funds, Inc. Portfolios of Investments December 31, 2017

Description	Shares		Fair Value
Lazard US Realty Income Portfolio
Preferred Stocks | 29.0%
Equity Real Estate Investment Trusts (REITs) | 29.0%
Alexandria Real Estate Equities, Inc., Series D, 7.000%		30,036	$	1,099,318
Ashford Hospitality Prime, Inc., Series B, 5.500%		43,591		871,384
CBL & Associates Properties, Inc.:
Series E, 6.625%		9,126		201,228
Series D, 7.375%		48,274		1,055,270
Cedar Realty Trust, Inc., Series C, 6.500%		11,200		280,448
Colony NorthStar, Inc.:
Series J, 7.125%		21,300		533,139
Series I, 7.150%		11,798		297,074
Crown Castle International Corp., Series A, 6.875%		334		350,563
Federal Realty Investment Trust, Series C, 5.000%		16,906		425,524
Hersha Hospitality Trust, Series E, 6.500%		16,787		415,310
iStar, Inc., Series I, 7.500%		16,600		421,125
National Storage Affiliates Trust, Series A, 6.000%		11,800		307,272
PS Business Parks, Inc., Series X, 5.250%		12,200		308,172
Summit Hotel Properties, Inc., Series E, 6.250%		17,000		436,390
Taubman Centers, Inc., Series K, 6.250%		5,869		148,075
Washington Prime Group, Inc., Series I, 6.875%		28,100		696,037
Total Preferred Stocks (Cost $8,058,198)				7,846,329
Real Estate Investment Trusts | 69.3%
Equity Real Estate Investment Trusts (REITs) | 59.7%
Colony NorthStar, Inc., Class A		40,803		465,562
Crown Castle International Corp.		7,700		854,777
Extra Space Storage, Inc.		9,673		845,904

Description	Shares		Fair Value
Gaming and Leisure Properties, Inc.		7,700	$	284,900
GGP, Inc.		74,267		1,737,105
HCP, Inc.		13,151		342,978
Healthcare Realty Trust, Inc.		9,700		311,564
Healthcare Trust of America, Inc., Class A		8,900		267,356
Iron Mountain, Inc.		7,400		279,202
Medical Properties Trust, Inc.		19,900		274,222
National Health Investors, Inc.		2,391		180,234
National Storage Affiliates Trust		36,108		984,304
Park Hotels & Resorts, Inc.		43,400		1,247,750
PS Business Parks, Inc.		1,100		137,599
Public Storage		3,953		826,177
Realty Income Corp.		23,100		1,317,162
Retail Opportunity Investments Corp.		32,451		647,398
RLJ Lodging Trust		6,500		142,805
Simon Property Group, Inc.		400		68,696
STAG Industrial, Inc.		17,500		478,275
Sun Communities, Inc.		11,610		1,077,176
The GEO Group, Inc.		11,700		276,120
Uniti Group, Inc.		79,679		1,417,489
Ventas, Inc.		5,490		329,455
VEREIT, Inc.		105,422		821,237
Weyerhaeuser Co.		15,600		550,056
				16,165,503
Mortgage Real Estate Investment Trusts (REITs) | 9.6%
Blackstone Mortgage Trust, Inc., Class A		34,673		1,115,777
Starwood Property Trust, Inc.		69,958		1,493,603
				2,609,380
Total Real Estate Investment Trusts (Cost $19,025,126)				18,774,883
Short-Term Investments | 1.3%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $360,446)		360,446		360,446
Total Investments | 99.6% (Cost $27,443,770)			$	26,981,658
Cash and Other Assets in Excess of Liabilities | 0.4%				98,693
Net Assets | 100.0%			$	27,080,351

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

16  Annual Report

Description	Shares		Fair Value
Lazard US Realty Equity Portfolio
Common Stocks | 2.9%
Hotels, Restaurants & Leisure | 2.9%
Hilton Worldwide Holdings, Inc.		12,300	$	982,278
Marriott International, Inc., Class A		7,200		977,256
Total Common Stocks (Cost $1,846,220)				1,959,534
Real Estate Investment Trusts | 94.6%
Equity Real Estate Investment Trusts (REITs) | 94.6%
Acadia Realty Trust		26,746		731,770
Alexandria Real Estate Equities, Inc.		23,822		3,110,915
American Homes 4 Rent, Class A		138,013		3,014,204
American Tower Corp.		19,165		2,734,270
Apartment Investment & Management Co., Class A		25,763		1,126,101
AvalonBay Communities, Inc.		16,642		2,969,099
Boston Properties, Inc.		30,291		3,938,739
CoreSite Realty Corp.		5,900		672,010
Crown Castle International Corp.		7,800		865,878
Equinix, Inc.		10,318		4,676,324
Equity LifeStyle Properties, Inc.		28,289		2,518,287
Essex Property Trust, Inc.		10,490		2,531,971
Extra Space Storage, Inc.		10,145		887,180
Federal Realty Investment Trust		14,290		1,897,855
GGP, Inc.		154,261		3,608,165
HCP, Inc.		93,675		2,443,044

Description	Shares		Fair Value
Healthcare Realty Trust, Inc.		30,300	$	973,236
Invitation Homes, Inc.		68,405		1,612,306
National Storage Affiliates Trust		60,158		1,639,907
Park Hotels & Resorts, Inc.		39,500		1,135,625
Prologis, Inc.		66,258		4,274,304
PS Business Parks, Inc.		17,571		2,197,956
Public Storage		16,427		3,433,243
Regency Centers Corp.		12,100		837,078
Retail Opportunity Investments Corp.		137,344		2,740,013
Simon Property Group, Inc.		5,942		1,020,479
SL Green Realty Corp.		8,581		866,080
Sun Communities, Inc.		13,661		1,267,468
Sunstone Hotel Investors, Inc.		78,356		1,295,225
Uniti Group, Inc.		50,300		894,837
Weyerhaeuser Co.		28,500		1,004,910
Total Real Estate Investment Trusts (Cost $54,747,344)				62,918,479
Short-Term Investments | 2.3%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $1,510,758)		1,510,758		1,510,758
Total Investments | 99.8% (Cost $58,104,322)			$	66,388,771
Cash and Other Assets in Excess of Liabilities | 0.2%				147,139
Net Assets | 100.0%			$	66,535,910

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

Annual Report  17

Description	Shares		Fair Value
Lazard Global Realty Equity Portfolio
Common Stocks | 33.1%
Brazil | 1.3%
BR Properties SA		18,840	$	60,130
Multiplan Empreendimentos Imobiliarios SA		400		8,536
				68,666
Canada | 1.3%
StorageVault Canada, Inc.		32,893		68,822
China | 3.3%
China Overseas Land & Investment, Ltd.		22,000		70,808
China Resources Land, Ltd.		18,000		52,864
SOHO China, Ltd.		82,000		47,958
				171,630
Germany | 4.2%
ADO Properties SA		1,221		61,947
Vonovia SE		3,114		154,143
				216,090
Hong Kong | 6.5%
CK Asset Holdings, Ltd.		6,500		56,816
Shimao Property Holdings, Ltd.		17,500		38,069
Sun Hung Kai Properties, Ltd.		11,000		183,236
Wharf Real Estate Investment Co., Ltd. (*)		9,200		61,232
				339,353
India | 1.0%
DLF, Ltd.		9,221		37,462
Oberoi Realty, Ltd.		1,754		13,200
				50,662
Japan | 7.2%
Hulic Co., Ltd.		11,400		127,615
Mitsubishi Estate Co., Ltd.		4,800		83,402
Mitsui Fudosan Co., Ltd.		7,380		165,444
				376,461
Mexico | 0.2%
Corp Inmobiliaria Vesta SAB de CV		9,400		11,646
Philippines | 2.3%
Ayala Land, Inc.		42,300		37,705
Megaworld Corp.		768,000		79,395
				117,100

Description	Shares		Fair Value
Singapore | 2.5%
Ascendas India Trust		62,000	$	53,300
City Developments, Ltd.		2,900		26,969
Global Logistic Properties, Ltd.		19,800		49,853
				130,122
Sweden | 1.3%
Hufvudstaden AB, Class A		4,071		65,133
United Arab Emirates | 0.8%
Emaar Properties PJSC		21,945		41,423
United States | 1.2%
Marriott International, Inc., Class A		471		63,929
Total Common Stocks (Cost $1,605,452)				1,721,037
Real Estate Investment Trusts | 63.3%
Australia | 1.9%
Goodman Group		5,724		37,522
Investa Office Fund		3,210		11,387
Mirvac Group		13,957		25,517
The GPT Group		6,297		25,068
				99,494
France | 3.5%
Gecina SA		354		65,313
Klepierre SA		1,237		54,397
Unibail-Rodamco SE		247		62,226
				181,936
Germany | 1.0%
alstria office REIT-AG		3,335		51,505
Hong Kong | 2.8%
Link Real Estate Investment Trust		15,519		143,808
Japan | 1.6%
Nippon Prologis REIT, Inc.		40		84,564
Mexico | 1.4%
Macquarie Mexico Real Estate Management SA de CV		31,900		33,632
Prologis Property Mexico SA de CV		21,100		36,475
				70,107

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

18  Annual Report

Description	Shares		Fair Value
Lazard Global Realty Equity Portfolio (concluded)
Spain | 1.6%
Merlin Properties Socimi SA		5,917	$	80,107
United Kingdom | 6.1%
Derwent London PLC		2,165		91,115
Great Portland Estates PLC		15,997		148,612
Segro PLC		6,144		48,662
The Unite Group PLC		2,761		29,993
				318,382
United States | 43.4%
Alexandria Real Estate Equities, Inc.		895		116,878
American Homes 4 Rent, Class A		6,125		133,770
American Tower Corp.		879		125,407
AvalonBay Communities, Inc.		710		126,671
Boston Properties, Inc.		1,130		146,934
Equinix, Inc.		398		180,382
Equity Lifestyle Properties, Inc.		1,516		134,954
Essex Property Trust, Inc.		356		85,928
Federal Realty Investment Trust		431		57,241
GGP, Inc.		4,612		107,875
HCP, Inc.		3,399		88,646
Hudson Pacific Properties, Inc.		1,822		62,403
Invitation Homes, Inc.		2,265		53,386
National Storage Affiliates Trust		4,537		123,679

Description	Shares		Fair Value
Prologis, Inc.		2,298	$	148,244
PS Business Parks, Inc.		572		71,551
Public Storage		767		160,303
Retail Opportunity Investments Corp.		4,205		83,890
Simon Property Group, Inc.		313		53,755
Sun Communities, Inc.		817		75,801
Sunstone Hotel Investors, Inc.		3,616		59,772
Uniti Group, Inc.		3,246		57,746
				2,255,216
Total Real Estate Investment Trusts (Cost $2,987,103)				3,285,119
Short-Term Investments | 3.8%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $197,845)		197,845		197,845
Total Investments | 100.2% (Cost $4,790,400)			$	5,204,001
Liabilities in Excess of Cash and Other Assets | (0.2)%				(10,526	)
Net Assets | 100.0%			$	5,193,475

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

Annual Report  19

Description	Shares		Fair Value
Lazard Global Listed Infrastructure Portfolio
Common Stocks | 92.6%
Australia | 8.5%
Macquarie Atlas Roads Group		19,712,150	$	96,442,006
Spark Infrastructure Group		66,463,719		129,973,950
Transurban Group		23,939,316		231,713,915
				458,129,871
France | 11.2%
Aeroports de Paris		122,369		23,248,157
Eutelsat Communications SA		8,891,952		205,305,256
Vinci SA		3,716,031		379,135,473
				607,688,886
Germany | 4.6%
Fraport AG		2,244,050		246,866,601
Italy | 25.3%
ASTM SpA		955,619		27,753,112
Atlantia SpA		13,613,772		429,434,110
Hera SpA		17,531,265		61,150,509
Italgas SpA		26,169,635		159,667,404
Snam SpA		51,251,915		250,941,463
Societa Iniziative Autostradali e Servizi SpA		2,166,147		40,295,182
Terna SpA		69,135,051		401,459,322
				1,370,701,102
Luxembourg | 3.8%
SES SA		13,078,712		203,803,963
Portugal | 1.1%
REN - Redes Energeticas Nacionais SGPS SA		20,694,113		61,475,424

Description	Shares		Fair Value
Spain | 11.0%
Abertis Infraestructuras SA		11,098,510	$	246,950,417
Enagas SA		5,618,591		160,723,995
Red Electrica Corporacion SA		8,318,600		186,529,123
				594,203,535
United Kingdom | 13.0%
National Grid PLC		20,775,500		244,049,699
Pennon Group PLC		16,794,748		176,769,452
Severn Trent PLC		1,609,790		46,969,842
United Utilities Group PLC		21,293,057		238,319,704
				706,108,697
United States | 14.1%
Genesee & Wyoming, Inc., Class A (*)		1,227,900		96,672,567
Norfolk Southern Corp.		1,702,837		246,741,081
PG&E Corp.		5,312,549		238,161,572
Union Pacific Corp.		1,341,500		179,895,150
				761,470,370
Total Common Stocks (Cost $4,436,899,682)				5,010,448,449
Short-Term Investments | 8.9%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (Cost $479,374,137)		479,374,137		479,374,137
Total Investments | 101.5% (Cost $4,916,273,819) (¤)			$	5,489,822,586
Liabilities in Excess of Cash and Other Assets | (1.5)%				(78,536,801	)
Net Assets | 100.0%			$	5,411,285,785

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

20  Annual Report

Lazard Global Listed Infrastructure Portfolio (concluded)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
USD		85,580,264	AUD		111,775,092	BNP	03/28/18	$	—	$	1,617,138
USD		78,887,075	AUD		103,062,752	CIT	03/28/18		—		1,513,702
USD		91,581,590	AUD		119,650,370	HSB	03/28/18		—		1,759,433
USD		49,440,449	AUD		64,566,426	RBC	03/28/18		—		928,774
USD		68,469,302	AUD		89,473,116	SCB	03/28/18		—		1,329,999
USD		54,690,995	AUD		71,427,072	SSB	03/28/18		—		1,030,320
USD		494,290,354	EUR		415,274,079	BNP	03/28/18		—		6,531,705
USD		295,809,622	EUR		248,642,197	CAN	03/28/18		—		4,053,778
USD		465,262,066	EUR		391,239,544	CIT	03/28/18		—		6,574,256
USD		405,426,746	EUR		340,800,708	HSB	03/28/18		—		5,580,155
USD		488,808,308	EUR		410,910,038	MEL	03/28/18		—		6,750,701
USD		472,843,369	EUR		397,502,695	RBC	03/28/18		—		6,546,337
USD		398,750,031	EUR		335,079,836	SSB	03/28/18		—		5,357,477
USD		125,326,301	GBP		93,215,791	CIT	03/28/18		—		884,716
USD		202,767,793	GBP		150,816,153	HSB	03/28/18		—		1,432,158
USD		165,494,382	GBP		123,105,932	RBC	03/28/18		—		1,186,870
USD		78,715,500	GBP		58,731,953	SSB	03/28/18		—		805,570
USD		113,949,951	GBP		84,752,660	SSB	03/28/18		—		802,273
Total gross unrealized depreciation on Forward Currency Contracts								$	—	$	54,685,362

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 (•)
Common Stocks | 60.3%
Australia | 2.8%
Aristocrat Leisure, Ltd.		783	$	14,429
AusNet Services		28,031		39,527
BlueScope Steel, Ltd.		1,968		23,584
Credit Corp. Group, Ltd.		907		15,774
CSL, Ltd.		755		83,097
Goodman Group REIT		7,074		46,371
Macquarie Atlas Roads Group		10,360		50,687
Ramsay Health Care, Ltd.		604		32,991
Telstra Corp., Ltd.		16,795		47,543
Transurban Group		8,843		85,593
Wesfarmers, Ltd.		330		11,428
Woolworths Group, Ltd.		1,961		41,740
				492,764
Canada | 4.9%
Agnico Eagle Mines, Ltd.		498		22,998
Alimentation Couche-Tard, Inc., Class B		883		46,075
Atco, Ltd., Class I		1,399		50,084
BCE, Inc.		1,245		59,804
BRP, Inc.		486		17,982
Canadian Imperial Bank of Commerce		416		40,554
Canadian National Railway Co.		626		51,619
Capital Power Corp.		1,078		21,003
CI Financial Corp.		2,825		66,905
Dollarama, Inc.		536		66,968
Fortis, Inc.		293		10,748
Great-West Lifeco, Inc.		445		12,426
Laurentian Bank of Canada		315		14,166
Magna International, Inc.		499		28,281
Metro, Inc.		530		16,971
Northland Power, Inc.		1,485		27,585
Royal Bank of Canada		768		62,717
StorageVault Canada, Inc.		25,089		52,493
Suncor Energy, Inc.		754		27,683
TELUS Corp.		479		18,146
The Bank of Nova Scotia		266		17,166
The Toronto-Dominion Bank		952		55,779
Thomson Reuters Corp.		1,264		55,095
TMX Group, Ltd.		461		25,834
TransAlta Corp.		3,079		18,249
				887,331

Description	Shares		Fair Value
China | 0.6%
China Resources Land, Ltd.		36,000	$	105,728
Denmark | 0.1%
Novo Nordisk A/S, Class B		205		11,018
Vestas Wind Systems A/S		193		13,229
				24,247
France | 2.0%
Aeroports de Paris		63		11,969
Air Liquide SA		106		13,332
Eutelsat Communications SA		5,140		118,677
Gecina SA REIT		282		52,029
L’Oreal SA		83		18,387
Peugeot SA		493		10,015
TOTAL SA Sponsored ADR		227		12,549
Vinci SA		1,272		129,778
				366,736
Germany | 1.9%
ADO Properties SA		611		30,999
alstria office REIT-AG		2,084		32,185
Deutsche Lufthansa AG		1,008		37,054
Fraport AG		943		103,739
RWE AG (*)		450		9,176
thyssenkrupp AG		710		20,617
Vonovia SE		2,124		105,138
				338,908
Hong Kong | 2.4%
ASM Pacific Technology, Ltd.		944		13,130
CLP Holdings, Ltd.		5,500		56,283
Jardine Matheson Holdings, Ltd. (Singapore)		172		10,443
Jardine Matheson Holdings, Ltd. (United States)		100		6,042
Link Real Estate Investment Trust		16,500		152,898
Man Wah Holdings, Ltd.		14,800		14,015
Sun Hung Kai Properties, Ltd.		9,000		149,921
Xinyi Glass Holdings, Ltd.		14,000		18,239
				420,971
Ireland | 0.2%
CRH PLC		636		22,880
Ryanair Holdings PLC Sponsored ADR (*)		124		12,920
				35,800

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)
Italy | 3.2%
ASTM SpA		476	$	13,824
Atlantia SpA		4,194		132,296
Hera SpA		14,962		52,189
Italgas SpA		15,407		94,002
Snam SpA		26,072		127,654
Societa Iniziative Autostradali e Servizi SpA		2,082		38,730
Terna SpA		21,272		123,524
				582,219
Japan | 3.5%
Asahi Glass Co., Ltd.		600		25,952
Central Japan Railway Co.		100		17,896
Hulic Co., Ltd.		12,300		137,689
KDDI Corp.		600		14,938
Mitsubishi UFJ Financial Group, Inc.		1,800		13,207
Mitsui Fudosan Co., Ltd.		5,500		123,299
MS&AD Insurance Group Holdings, Inc.		500		16,930
Nichirei Corp.		500		13,808
Nippon Prologis REIT, Inc.		29		61,309
Nippon Steel & Sumitomo Metal Corp.		700		17,967
Nishi-Nippon Railroad Co., Ltd.		800		21,567
Nitto Denko Corp.		200		17,777
Obayashi Corp.		1,100		13,302
Okamura Corp.		1,000		14,621
S Foods, Inc.		500		22,658
Shin-Etsu Chemical Co., Ltd.		300		30,428
The Nisshin Oillio Group, Ltd.		400		12,124
Tokio Marine Holdings, Inc.		300		13,692
West Japan Railway Co.		600		43,772
				632,936
Luxembourg | 0.8%
SES SA (France)		3,200		49,865
SES SA (Luxembourg)		4,012		62,603
Tenaris SA ADR		687		21,888
				134,356
Mexico | 0.3%
Macquarie Mexico Real Estate Management SA de CV REIT		22,300		23,510
Prologis Property Mexico SA de CV REIT		14,500		25,066
				48,576
Netherlands | 0.2%
Akzo Nobel NV		201		17,582
NN Group NV		574		24,819
				42,401

Description	Shares		Fair Value
New Zealand | 0.2%
Air New Zealand, Ltd.		8,502	$	19,149
Spark New Zealand, Ltd.		7,873		20,249
				39,398
Norway | 0.2%
Statoil ASA		1,240		26,526
Philippines | 0.4%
Megaworld Corp.		725,000		74,950
Singapore | 1.4%
Ascendas India Trust		57,000		49,001
DBS Group Holdings, Ltd.		1,459		27,015
Global Logistic Properties, Ltd.		18,300		46,076
SATS, Ltd.		4,000		15,525
Singapore Airlines, Ltd.		5,200		41,419
United Overseas Bank, Ltd.		3,700		72,991
				252,027
Spain | 1.9%
Abertis Infraestructuras SA		5,588		124,338
Enagas SA		2,795		79,953
Merlin Properties Socimi SA REIT		4,357		58,987
Red Electrica Corporacion SA		3,600		80,723
				344,001
Sweden | 0.3%
Hennes & Mauritz AB, B Shares		869		17,906
Hufvudstaden AB, Class A		2,615		41,839
				59,745
Switzerland | 0.5%
ALSO Holding AG		83		11,410
Flughafen Zuerich AG		114		26,068
Partners Group Holding AG		54		37,003
Swiss Life Holding AG		33		11,680
				86,161
United Kingdom | 4.5%
Admiral Group PLC		1,395		37,619
Ashtead Group PLC		442		11,796
Bellway PLC		297		14,282
Centrica PLC		3,884		7,191
Derwent London PLC REIT		811		34,131
Electrocomponents PLC		1,099		9,283
Fiat Chrysler Automobiles NV (*)		602		10,734
Great Portland Estates PLC REIT		14,761		137,129
Howden Joinery Group PLC		1,785		11,243
National Grid PLC		13,169		154,696
Pennon Group PLC		8,887		93,538

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)
Persimmon PLC		311	$	11,485
Reckitt Benckiser Group PLC		460		42,968
Severn Trent PLC		808		23,576
SSE PLC		3,025		53,890
Unilever NV		394		22,137
United Utilities Group PLC		12,003		134,342
				810,040
United States | 28.0%
3M Co.		387		91,088
Alexandria Real Estate Equities, Inc. REIT		760		99,248
Ameren Corp.		904		53,327
American Axle & Manufacturing Holdings, Inc. (*)		1,081		18,409
American Electric Power Co., Inc.		329		24,205
American Homes 4 Rent, Class A REIT		4,788		104,570
American Tower Corp. REIT		1,246		177,767
Aon PLC		187		25,058
Apple, Inc.		226		38,246
AT&T, Inc.		1,809		70,334
Automatic Data Processing, Inc.		389		45,587
AvalonBay Communities, Inc. REIT		335		59,767
Biogen, Inc. (*)		36		11,469
Boston Properties, Inc. REIT		736		95,702
Brinker International, Inc.		276		10,720
Bristol-Myers Squibb Co.		276		16,913
Campbell Soup Co.		956		45,993
Carnival Corp.		387		25,685
Cimarex Energy Co.		167		20,376
CNX Resources Corp. (*)		1,254		18,346
Comcast Corp., Class A		1,433		57,392
ConAgra Foods, Inc.		305		11,489
Concho Resources, Inc. (*)		124		18,627
Consolidated Edison, Inc.		638		54,198
Costco Wholesale Corp.		66		12,284
Cracker Barrel Old Country Store, Inc.		74		11,758
Crown Castle International Corp. REIT		500		55,505
CSX Corp.		969		53,305
Darden Restaurants, Inc.		624		59,916
Deere & Co.		182		28,485
Diamondback Energy, Inc. (*)		172		21,715
DowDuPont, Inc.		268		19,087
EchoStar Corp., Class A (*)		300		17,970
Edison International		593		37,501
Eli Lilly & Co.		397		33,531

Description	Shares		Fair Value
EOG Resources, Inc.		238	$	25,683
Equinix, Inc. REIT		241		109,226
Equity Lifestyle Properties, Inc. REIT		1,228		109,317
Essex Property Trust, Inc. REIT		354		85,445
F5 Networks, Inc. (*)		228		29,918
General Dynamics Corp.		90		18,310
General Mills, Inc.		913		54,132
Genesee & Wyoming, Inc., Class A (*)		350		27,555
GGP, Inc. REIT		3,624		84,765
Halliburton Co.		513		25,070
Hasbro, Inc.		177		16,088
HCA Healthcare, Inc. (*)		215		18,886
HCP, Inc. REIT		2,138		55,759
Helix Energy Solutions Group, Inc. (*)		1,972		14,869
Honeywell International, Inc.		196		30,059
Hormel Foods Corp.		300		10,917
Huntington Ingalls Industries, Inc.		81		19,092
Intel Corp.		1,181		54,515
International Paper Co.		332		19,236
Intuit, Inc.		64		10,098
Invitation Homes, Inc.		2,006		47,281
IQVIA Holdings, Inc. (*)		136		13,314
Johnson & Johnson		634		88,582
Kinder Morgan, Inc.		2,264		40,910
Lear Corp.		237		41,868
Lockheed Martin Corp.		217		69,668
Lowe’s Cos., Inc.		565		52,511
Marsh & McLennan Cos., Inc.		281		22,871
Martin Marietta Materials, Inc.		116		25,641
MasterCard, Inc., Class A		158		23,915
McCormick & Co., Inc.		91		9,274
McDonald’s Corp.		460		79,175
Merck & Co., Inc.		205		11,535
Mettler-Toledo International, Inc. (*)		68		42,127
Microsoft Corp.		222		18,990
Motorola Solutions, Inc.		344		31,077
National Storage Affiliates Trust REIT		3,111		84,806
Newmont Mining Corp.		647		24,275
NIKE, Inc., Class B		315		19,703
Norfolk Southern Corp.		844		122,296
Northrop Grumman Corp.		258		79,183
Olin Corp.		778		27,681
Omnicom Group, Inc.		852		62,051
Palo Alto Networks, Inc. (*)		110		15,943
Paychex, Inc.		523		35,606
PG&E Corp.		2,269		101,719

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)
Pool Corp.		281	$	36,432
Post Holdings, Inc. (*)		121		9,587
PPG Industries, Inc.		111		12,967
Prologis, Inc.		1,645		106,119
PS Business Parks, Inc. REIT		778		97,320
Public Storage REIT		281		58,729
Quest Diagnostics, Inc.		138		13,592
Range Resources Corp.		945		16,122
Raytheon Co.		156		29,305
Regions Financial Corp.		1,376		23,777
Republic Services, Inc.		391		26,435
Retail Opportunity Investments Corp. REIT		4,688		93,526
Schlumberger, Ltd.		246		16,578
Skyworks Solutions, Inc.		178		16,901
Spirit AeroSystems Holdings, Inc., Class A		300		26,175
Starbucks Corp.		983		56,454
Steel Dynamics, Inc.		358		15,441
Sunstone Hotel Investors, Inc. REIT		4,733		78,236
Sysco Corp.		1,520		92,310
Texas Instruments, Inc.		187		19,530
The Allstate Corp.		357		37,381
The Boeing Co.		240		70,778
The PNC Financial Services Group, Inc.		127		18,325
The TJX Cos., Inc.		333		25,461
The Travelers Cos., Inc.		139		18,854
Thermo Fisher Scientific, Inc.		269		51,078
Tyson Foods, Inc., Class A		426		34,536
Union Pacific Corp.		596		79,924
UnitedHealth Group, Inc.		106		23,369
Visa, Inc., Class A		339		38,653
Vulcan Materials Co.		142		18,229
Wal-Mart Stores, Inc.		712		70,310
Waste Management, Inc.		557		48,069
Waters Corp. (*)		117		22,603
Westlake Chemical Corp.		413		43,997
Weyerhaeuser Co. REIT		542		19,111
				5,022,729
Total Common Stocks (Cost $9,689,859)				10,828,550

Description	Security Currency		Principal Amount (000)		Fair Value
Foreign Government Obligations | 10.2%
Australia | 0.7%
Australia Government Bonds, 3.000%, 09/20/25		AUD		108	$	118,542
Canada | 0.3%
Canadian Government Real Return Bonds, 2.000%, 12/01/41		CAD		61		63,892
France | 2.4%
French Republic Government Bonds OAT, 1.850%, 07/25/27		EUR		281		427,721
Italy | 1.9%
Italy Buoni Poliennali Del Tesoro:
0.100%, 05/15/22		EUR		128		157,371
3.100%, 09/15/26		EUR		128		185,857
						343,228
Mexico | 1.4%
Mexican Udibonos, 2.500%, 12/10/20		MXN		847		248,822
New Zealand | 0.8%
New Zealand Government Bonds, 3.000%, 09/20/30		NZD		165		142,770
Spain | 1.9%
Spain Government Inflation Linked Bonds:
0.300%, 11/30/21		EUR		121		153,647
1.800%, 11/30/24		EUR		140		193,796
						347,443
United Kingdom | 0.8%
United Kingdom Gilt Inflation Linked, 0.750%, 03/22/34		GBP		69		137,037
Total Foreign Government Obligations (Cost $1,656,566)						1,829,455

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)
US Treasury Securities | 16.8%
Treasury Inflation Protected Securities:
0.125%, 04/15/20		USD		769	$	767,500
1.125%, 01/15/21		USD		1,212		1,248,096
2.375%, 01/15/25		USD		205		234,248
2.500%, 01/15/29		USD		626		760,117
Total US Treasury Securities (Cost $3,034,073)						3,009,961

Description	Shares		Fair Value
Short-Term Investments | 9.3%
State Street Institutional Treasury Money Market Fund, Premier Class, 1.15% (7 day yield) (^) (Cost $1,670,280)		1,670,280	$	1,670,280
Total Investments | 96.6% (Cost $16,050,778) (¤)			$	17,338,246
Cash and Other Assets in Excess of Liabilities | 3.4%				608,449
Net Assets | 100.0%			$	17,946,695

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

26  Annual Report

Lazard Real Assets and Pricing Opportunities Portfolio (continued)

Forward Currency Contracts open at December 31, 2017:

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
CHF	1,852	USD	1,885	CIT	03/28/18		$	27		$	—
JPY	5,518,930	USD	49,352	CIT	01/11/18			—			363
NZD	112,406	USD	76,528	HSB	02/22/18			3,218			—
SEK	244,935	USD	29,113	HSB	02/22/18			958			—
SEK	276,454	USD	32,871	HSB	02/22/18			1,070			—
USD	114,853	AUD	151,369	HSB	02/22/18			—			3,420
USD	266,087	AUD	352,714	HSB	02/22/18			—			9,509
USD	173,118	AUD	226,094	SSB	03/28/18			—			3,518
USD	19,209	CAD	24,443	CIT	02/22/18			—			331
USD	41,477	CAD	52,782	HSB	02/22/18			—			716
USD	797,574	CAD	1,017,943	HSB	02/22/18			—			16,174
USD	59,890	CHF	58,962	HSB	02/22/18			—			844
USD	27,676	CHF	27,088	SSB	03/28/18			—			300
USD	1,326,240	EUR	1,115,237	CIT	03/28/18			—			21,442
USD	76,138	EUR	63,484	HSB	01/11/18			—			221
USD	1,017,699	EUR	861,571	HSB	01/11/18			—			18,607
USD	359,399	EUR	303,638	HSB	02/22/18			—			6,706
USD	90,452	GBP	68,061	CIT	02/22/18			—			1,762
USD	11,755	GBP	8,685	HSB	02/22/18			—			12
USD	33,287	GBP	25,046	HSB	02/22/18			—			647
USD	373,323	GBP	281,038	HSB	02/22/18			—			7,452
USD	52,581	GBP	39,232	SSB	03/28/18			—			640
USD	295,834	GBP	220,033	SSB	03/28/18			—			2,652
USD	157,213	HKD	1,225,935	HSB	02/22/18			145			—
USD	49,477	JPY	5,532,849	CIT	01/11/18			364			—
USD	511,131	JPY	57,122,728	HSB	02/22/18			3,043			—
USD	246,819	MXN	4,783,451	HSB	02/22/18			5,474			—
USD	86,339	NZD	126,981	CIT	02/22/18			—			3,747
USD	1,028	NZD	1,511	HSB	02/22/18			—			44
USD	201,063	SGD	272,448	HSB	02/22/18			—			2,955
Total gross unrealized appreciation/depreciation on Forward Currency Contracts							$	14,299		$	102,062

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

Annual Report  27

Lazard Real Assets and Pricing Opportunities Portfolio (concluded)

Futures Contracts open at December 31, 2017 (^):

Type	Number of Contracts	Notional Amount	Expiration Date	Notional Cost	Fair Value	Unrealized Appreciation
Copper	1	$25,000	03/27/18	$74,454	$82,513		$8,059

Total Return Swap Agreements open at December 31, 2017 (^):

Pay	Currency	Counterparty	Notional Amount	Expiration Date	Receive	Payment Frequency	Unrealized Appreciation
0.00%	USD	GSC	$1,585,053	10/24/18	Appreciation, and dividends paid, on commodities in a custom momentum basket	Maturity		$41,318

The following table represents the commodity exposure expressed as a percentage of the notional amount of the individual commodity underlying the custom total return basket swap agreements with GSC, as of December 31, 2017:

Commodity	Commodity Exposure Expressed as a Percentage of Notional Amount
Aluminum		5.14	%
Bean Oil		2.15
Brent Crude		8.37
Corn		6.99
Cotton		1.13
Gold		11.42
Copper		5.85
Heating Oil		3.34
Coffee		1.79
Kansas Wheat		0.97
Live Cattle		3.26
Lean Hogs		1.96
Natural Gas		9.12
Nickel		2.67
Gasoline (RBOB)		3.03
Soybeans		4.53
Sugar		2.02
Silver		3.75
Soy Meal		2.31
Wheat		4.31
Crude Oil		13.20
Zinc		2.69
Total		100.00	%

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

28  Annual Report

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2017

(*)	Non-income producing security.
(¤)	The Portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts.
(•)	Lazard Real Assets and Pricing Opportunities Portfolio’s Portfolio of Investments and accompanying notes are presented on a consolidated basis.
(^)	The security is owned by Lazard Real Assets and Pricing Opportunities Portfolio, Ltd., a wholly-owned subsidiary of the Portfolio. See Note 1 in the Notes to Financial Statements.

Security Abbreviations:
ADR	—	American Depositary Receipt
PJSC	—	Public Joint Stock Company
REIT	—	Real Estate Investment Trust

Currency Abbreviations:
AUD	—	Australian Dollar
CAD	—	Canadian Dollar
CHF	—	Swiss Franc
EUR	—	Euro
GBP	—	British Pound Sterling
HKD	—	Hong Kong Dollar
Counterparty Abbreviations:
BNP	—	BNP Paribas SA
CAN	—	Canadian Imperial Bank of Commerce
CIT	—	Citibank NA
GSC	—	Goldman Sachs International
HSB	—	HSBC Bank USA NA

JPY	—	Japanese Yen
MXN	—	Mexican New Peso
NZD	—	New Zealand Dollar
SEK	—	Swedish Krona
SGD	—	Singapore Dollar
USD	—	United States Dollar

MEL	—	The Bank of New York Mellon Corp.
RBC	—	Royal Bank of Canada
SCB	—	Standard Chartered Bank
SSB	—	State Street Bank and Trust Co.

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

Annual Report  29

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	—	%	—	%	1.8	%
Airlines	—		—		0.6
Auto Components	—		—		0.6
Automobiles	—		—		0.1
Banks	—		—		1.9
Biotechnology	—		—		0.5
Building Products	—		—		0.2
Capital Markets	—		—		1.0
Chemicals	—		—		1.0
Commercial Services & Suppliers	—		—		0.5
Communications Equipment	—		—		0.5
Construction & Engineering	—		7.0		0.8
Construction Materials	—		—		0.4
Consumer Finance	—		—		0.1
Containers & Packaging	—		—		0.1
Distributors	—		—		0.2
Diversified Telecommunication Services	—		—		1.2
Electric Utilities	—		17.6		3.0
Electrical Equipment	—		—		0.1
Electronic Equipment, Instruments & Components	—		—		0.1
Energy Equipment & Services	—		—		0.4
Equity Real Estate Investment Trusts (REITs)	63.3		—		12.5
Food & Staples Retailing	—		—		1.6
Food Products	—		—		1.3
Gas Utilities	—		3.0		0.5
Health Care Providers & Services	—		—		0.5
Hotels, Restaurants & Leisure	1.2		—		1.4
Household Durables	—		—		0.2
Household Products	—		—		0.2
Independent Power and Renewable Electricity Producers	—		—		0.4
Industrial Conglomerates	—		—		0.8
Insurance	—		—		1.2
IT Services	—		—		0.8
Leisure Products	—		—		0.2
Life Sciences Tools & Services	—		—		0.7
Machinery	—		—		0.2
Media	—		7.6		2.0
Metals & Mining	—		—		0.7
Multiline Retail	—		—		0.4
Multi-Utilities	—		6.8		2.1
Oil, Gas & Consumable Fuels	—		7.6		2.4
Personal Products	—		—		0.2
Pharmaceuticals	—		—		0.9

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

30  Annual Report

Industry†	Lazard Global Realty Equity Portfolio		Lazard Global Listed Infrastructure Portfolio		Lazard Real Assets and Pricing Opportunities Portfolio
Real Estate Management & Development	31.9	%	—	%	5.1	%
Road & Rail	—		9.7		2.3
Semiconductors & Semiconductor Equipment	—		—		0.6
Software	—		—		0.2
Specialty Retail	—		—		0.5
Technology Hardware, Storage & Peripherals	—		—		0.2
Textiles, Apparel & Luxury Goods	—		—		0.1
Trading Companies & Distributors	—		—		0.1
Transportation Infrastructure	—		24.8		3.4
Water Utilities	—		8.5		1.4
Wireless Telecommunication Services	—		—		0.1
Subtotal	96.4		92.6		60.3
Foreign Government Obligations	—		—		10.2
US Treasury Securities	—		—		16.8
Short-Term Investments	3.8		8.9		9.3
Total Investments	100.2	%	101.5	%	96.6	%

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

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

Annual Report  31

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2017	Lazard US Realty Income Portfolio			Lazard US Realty Equity Portfolio
ASSETS
Investments in securities, at fair value	$	26,981,658		$	66,388,771
Cash		—			—
Cash collateral on futures contracts due from broker		—			—
Foreign currency, at fair value		—			—
Receivables for:
Capital stock sold		3,033			30,635
Dividends and interest		270,458			314,164
Investments sold		—			—
Amount due from Investment Manager (Note 3)		—			—
Gross unrealized appreciation on:
Forward currency contracts		—			—
Swap agreements		—			—
Prepaid expenses		9,034			7,332
Total assets		27,264,183			66,740,902
LIABILITIES
Payables for:
Management fees		49,969			69,938
Accrued custodian fees		20,012			19,185
Accrued distribution fees		3,208			10,146
Accrued professional services		21,252			21,291
Investments purchased		—			—
Capital stock redeemed		84,870			77,486
Variation margin on open futures contracts		—			—
Gross unrealized depreciation on forward currency contracts		—			—
Line of credit outstanding		—			—
Other accrued expenses and payables		4,521			6,946
Total liabilities		183,832			204,992
Net assets	$	27,080,351		$	66,535,910
NET ASSETS
Paid in capital	$	43,143,648		$	57,808,800
Undistributed (Distributions in excess of) net investment income (loss)		16,930			—
Accumulated net realized gain (loss)		(15,618,115	)		442,661
Net unrealized appreciation (depreciation) on:
Investments		(462,112	)		8,284,449
Foreign currency translations and forward currency contracts		—			—
Futures contracts		—			—
Swap agreements		—			—
Net assets	$	27,080,351		$	66,535,910
Institutional Shares
Net assets	$	12,398,589		$	18,724,446
Shares of capital stock outstanding*		1,692,390			993,322
Net asset value, offering and redemption price per share	$	7.33		$	18.85
Open Shares
Net assets	$	14,681,762		$	47,811,464
Shares of capital stock outstanding*		2,009,472			2,524,879
Net asset value, offering and redemption price per share	$	7.31		$	18.94
Cost of investments in securities	$	27,443,770		$	58,104,322
Cost of foreign currency	$	—		$	—

(a) Consolidated Statement of Assets and Liabilities.

* $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.

32  Annual Report

Lazard Global Realty Equity Portfolio			Lazard Global Listed Infrastructure Portfolio			Lazard Real Assets and Pricing Opportunities Portfolio (a)
$	5,204,001		$	5,489,822,586		$	17,338,246
	—			—			406
	—			—			3,080
	16			28,455,894			8,581
	—			20,231,235			1,124,395
	16,958			12,359,107			44,941
	—			5,369,815			2,908
	27,998			—			73,161
	—			—			14,299
	—			—			41,318
	5,334			—			4,827
	5,254,307			5,556,238,637			18,656,162
	—			4,138,824			—
	29,442			573,414			69,088
	285			135,733			27
	25,606			32,468			30,798
	—			80,492,458			455,068
	—			4,537,176			—
	—			—			200
	—			54,685,362			102,062
	—			—			50,000
	5,499			357,417			2,224
	60,832			144,952,852			709,467
$	5,193,475		$	5,411,285,785		$	17,946,695
$	4,758,254		$	4,790,606,465		$	16,858,857
	21,049			(39,276,021	)		(161,431	)
	936			141,473,453			494
	413,289			573,548,767			1,287,468
	(53	)		(55,066,879	)		(88,070	)
	—			—			8,059
	—			—			41,318
$	5,193,475		$	5,411,285,785		$	17,946,695
$	3,830,787		$	4,778,042,382		$	17,811,603
	246,774			298,732,092			1,662,975
$	15.52		$	15.99		$	10.71
$	1,362,688		$	633,243,403		$	135,092
	87,901			39,560,407			12,627
$	15.50		$	16.01		$	10.70
$	4,790,400		$	4,916,273,819		$	16,050,778
$	16		$	28,461,345		$	8,571

Annual Report  33

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2017	Lazard US Realty Income Portfolio			Lazard US Realty Equity Portfolio
Investment Income (Loss)
Income
Dividends	$	1,091,494		$	1,853,768
Non-cash dividends		—			—
Interest		—			—
Total investment income*		1,091,494			1,853,768
Expenses
Management fees (Note 3)		251,312			561,848
Distribution fees (Open Shares)		46,113			132,033
Custodian fees		35,881			34,987
Administration fees		19,582			25,230
Shareholders’ reports		8,536			16,268
Registration fees		36,642			34,742
Professional services		40,495			41,222
Shareholders’ meeting		6,223			11,147
Directors’ fees and expenses		6,285			7,598
Shareholders’ services		27,870			31,099
Amortization of offering costs (Note 2(h))		—			—
Organization expenses (Note 2(h))		—			—
Other^		7,681			8,048
Total gross expenses		486,620			904,222
Management fees waived and expenses reimbursed		(95,010	)		(12,732	)
Administration and shareholders’ services fees waived		—			—
Total net expenses		391,610			891,490
Net investment income (loss)		699,884			962,278
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions, Forward Currency Contracts, Futures Contracts and Swap Agreements
Net realized gain (loss) on:
Investments		102,341			5,407,448
Foreign currency transactions		—			—
Forward currency contracts		—			—
Futures contracts		—			—
Swap agreements		—			—
Total net realized gain (loss) on investments, foreign currency transactions, forward currency contracts, futures contracts and swap agreements		102,341			5,407,448
Net change in unrealized appreciation (depreciation) on:
Investments†		199,417			(890,356	)
Foreign currency translations		—			—
Forward currency contracts		—			—
Futures contracts		—			—
Swap agreements		—			—
Total net change in unrealized appreciation (depreciation) on investments, foreign currency translations, forward currency contracts, futures contracts and swap agreements		199,417			(890,356	)
Net realized and unrealized gain (loss) on investments, foreign currency transactions, forward currency contracts, futures contracts and swap agreements		301,758			4,517,092
Net increase (decrease) in net assets resulting from operations	$	1,001,642		$	5,479,370
* Net of foreign withholding taxes of	$	—		$	—
† Includes net change in unrealized appreciation (depreciation) of foreign capital gains taxes of	$	—		$	128,845
^ Includes interest on line of credit of	$	895		$	259

(a) Consolidated Statement of Operations.

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)
$	148,382		$	147,094,227		$	293,574
	—			12,443,609			—
	—			—			126,950
	148,382			159,537,836			420,524
	40,871			42,387,620			109,331
	3,418			1,574,837			180
	56,576			819,180			111,939
	15,368			498,046			16,964
	3,430			311,360			6,016
	33,991			221,852			20,342
	44,511			171,503			54,222
	2,421			151,350			1,997
	5,153			143,471			15,495
	26,094			119,943			24,890
	—			—			127,847
	—			—			7,203
	5,734			106,779			5,640
	237,567			46,505,941			502,066
	(180,640	)		—			(344,315	)
	(4,688	)		—			(16,934	)
	52,239			46,505,941			140,817
	96,143			113,031,895			279,707
	198,684			505,754,385			258,986
	902			1,156,888			(3,468	)
	—			(309,440,685	)		(356,016	)
	—			—			(21,530	)
	—			—			49,302
	199,586			197,470,588			(72,726	)
	354,217			522,370,422			1,287,468
	162			(244,445	)		(307	)
	—			(55,051,012	)		(82,117	)
	—			—			8,059
	—			—			41,318
	354,379			467,074,965			1,254,421
	553,965			664,545,553			1,181,695
$	650,108		$	777,577,448		$	1,461,402
$	5,823		$	17,196,386		$	19,232
$	(312	)	$	—		$	—
$	27		$	—		$	11

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				Year Ended			Year Ended			Year Ended
	December 31, 2017				December 31, 2016			December 31, 2017			December 31, 2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	699,884		$	699,704		$	962,278		$	1,097,472
Net realized gain (loss) on investments, foreign currency transactions, forward currency contracts, futures contracts and swap agreements			102,341			(7,000,121	)		5,407,448			1,617,975
Net change in unrealized appreciation (depreciation) on investments, foreign currency translations, forward currency contracts, futures contracts and swap agreements			199,417			9,880,295			(890,356	)		1,020,449
Net increase (decrease) in net assets resulting from operations			1,001,642			3,579,878			5,479,370			3,735,896
Distributions to shareholders
From net investment income
Institutional Shares			(495,171	)		(947,450	)		(336,557	)		(309,698	)
Open Shares			(566,755	)		(1,134,154	)		(725,168	)		(774,528	)
From net realized gains
Institutional Shares			—			—			(1,528,874	)		(276,265	)
Open Shares			—			—			(3,951,112	)		(860,553	)
Return of capital
Institutional Shares			—			(42,957	)		—			—
Open Shares			—			(51,422	)		—			—
Net decrease in net assets resulting from distributions			(1,061,926	)		(2,175,983	)		(6,541,711	)		(2,221,044	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			2,826,413			1,946,921			3,978,753			3,069,870
Open Shares			938,843			1,187,060			3,900,457			12,642,246
Net proceeds from reinvestment of distributions
Institutional Shares			475,842			955,382			1,840,386			576,599
Open Shares			556,957			1,164,957			4,526,431			1,565,295
Cost of shares redeemed
Institutional Shares			(8,700,281	)		(18,324,402	)		(6,377,175	)		(5,517,860	)
Open Shares			(9,980,748	)		(20,504,685	)		(19,202,537	)		(31,969,969	)
Net increase (decrease) in net assets from capital stock transactions			(13,882,974	)		(33,574,767	)		(11,333,685	)		(19,633,819	)
Redemption fees (Note 2(j))
Institutional Shares			—			3			—			983
Open Shares			—			104			—			7
Net increase in net assets from redemption fees			—			107			—			990
Total increase (decrease) in net assets			(13,943,258	)		(32,170,765	)		(12,396,026	)		(18,117,977	)
Net assets at beginning of period			41,023,609			73,194,374			78,931,936			97,049,913
Net assets at end of period*		$	27,080,351		$	41,023,609		$	66,535,910		$	78,931,936
*Includes undistributed (distributions in excess of) net investment income (loss) of		$	16,930		$	—		$	—		$	—
Shares issued and redeemed
Institutional Shares†
Shares outstanding at beginning of period			2,420,955			4,614,237			1,013,228			1,116,969
Shares sold			382,275			270,587			199,657			156,260
Shares issued to shareholders from reinvestment of distributions			65,338			132,107			98,095			29,391
Shares redeemed			(1,176,178	)		(2,595,976	)		(317,658	)		(289,392	)
Net increase (decrease)			(728,565	)		(2,193,282	)		(19,906	)		(103,741	)
Shares outstanding at end of period			1,692,390			2,420,955			993,322			1,013,228
Open Shares†
Shares outstanding at beginning of period			3,161,749			5,692,814			3,050,064			3,995,207
Shares sold			127,736			164,138			194,919			641,672
Shares issued to shareholders from reinvestment of distributions			76,683			161,817			240,214			79,255
Shares redeemed			(1,356,696	)		(2,857,020	)		(960,318	)		(1,666,070	)
Net increase (decrease)			(1,152,277	)		(2,531,065	)		(525,185	)		(945,143	)
Shares outstanding at end of period			2,009,472			3,161,749			2,524,879			3,050,064

(a)	Consolidated Statements of Changes in Net Assets.
(b)	The Portfolio commenced operations on December 30, 2016.

† The inception date for the Lazard Real Assets and Pricing Opportunities Portfolio Institutional Shares was December 30, 2016 and for the Open Shares was January 9, 2017.

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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Period Ended December 31, 2016 (b)
$	96,143		$	74,465		$	113,031,895		$	67,320,507		$	279,707		$	—
	199,586			51,908			197,470,588			123,014,491			(72,726	)		—
	354,379			86,803			467,074,965			81,193,380			1,254,421			(5,646	)
	650,108			213,176			777,577,448			271,528,378			1,461,402			(5,646	)
	(111,094	)		(83,166	)		(75,970,334	)		(65,512,225	)		(200,932	)		—
	(36,021	)		(43,091	)		(11,527,674	)		(10,807,540	)		(1,078	)		—
	(56,514	)		(582	)		(231,436,916	)		(28,350,404	)		(201,739	)		—
	(20,280	)		(264	)		(31,852,693	)		(4,660,792	)		(1,564	)		—
	—			—			—			—			—			—
	—			—			—			—			—			—
	(223,909	)		(127,103	)		(350,787,617	)		(109,330,961	)		(405,313	)		—
	1,000,001			45,475			2,047,406,028			1,234,639,826			3,538,199			13,095,624
	137,466			306,048			442,199,716			348,608,641			164,978			—
	167,608			83,748			263,569,592			79,785,759			402,671			—
	52,265			40,932			42,974,115			15,328,444			2,641			—
	(76,128	)		(1,320,190	)		(834,047,015	)		(675,758,638	)		(272,334	)		—
	(516,531	)		(608,645	)		(371,380,188	)		(321,183,690	)		(35,527	)		—
	764,681			(1,452,632	)		1,590,722,248			681,420,342			3,800,628			13,095,624
	—			27			—			25,179			—			—
	—			—			—			19,942			—			—
	—			27			—			45,121			—			—
	1,190,880			(1,366,532	)		2,017,512,079			843,662,880			4,856,717			13,089,978
	4,002,595			5,369,127			3,393,773,706			2,550,110,826			13,089,978			—
$	5,193,475		$	4,002,595		$	5,411,285,785		$	3,393,773,706		$	17,946,695		$	13,089,978
$	21,049		$	21,651		$	(39,276,021	)	$	74,531,919		$	(161,431	)	$	5,646
	172,535			250,075			206,858,471			160,699,463			1,309,562			—
	68,213			3,050			126,908,791			89,610,493			341,080			1,309,562
	10,967			5,780			16,317,320			5,708,087			38,062			—
	(4,941	)		(86,370	)		(51,352,490	)		(49,159,572	)		(25,729	)		—
	74,239			(77,540	)		91,873,621			46,159,008			353,413			1,309,562
	246,774			172,535			298,732,092			206,858,471			1,662,975			1,309,562
	110,297			128,369			32,579,713			29,287,607			—			—
	9,223			20,832			27,109,459			25,457,936			15,804			—
	3,425			2,843			2,652,932			1,095,859			249			—
	(35,044	)		(41,747	)		(22,781,697	)		(23,261,689	)		(3,426	)		—
	(22,396	)		(18,072	)		6,980,694			3,292,106			12,627			—
	87,901			110,297			39,560,407			32,579,713			12,627			—

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	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	7.36		$	7.11		$	8.42		$	7.44		$	8.57
Income (loss) from investment operations:
Net investment income (loss) (a)		0.16			0.11	^		0.37			0.29			0.47
Net realized and unrealized gain (loss)		0.07			0.45			(1.15	)		1.30			(0.27	)
Total from investment operations		0.23			0.56			(0.78	)		1.59			0.20
Less distributions from:
Net investment income		(0.26	)		(0.30	)		(0.37	)		(0.32	)		(0.34	)
Net realized gains		—			—			(0.16	)		(0.29	)		(0.99	)
Return of capital		—			(0.01	)		—			—			—
Total distributions		(0.26	)		(0.31	)		(0.53	)		(0.61	)		(1.33	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	7.33		$	7.36		$	7.11		$	8.42		$	7.44
Total Return (c)		3.20	%		8.01	%^		–9.50	%		21.54	%		2.37	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	12,399		$	17,815		$	32,806		$	66,942		$	47,222
Ratios to average net assets:
Net expenses		1.00	%		1.00	%^		0.98	%		0.96	%		0.95	%
Gross expenses		1.32	%		1.20	%		0.98	%		0.96	%		0.98	%
Net investment income (loss)		2.23	%		1.42	%^		4.59	%		3.52	%		5.29	%
Portfolio turnover rate		73	%		75	%		60	%		53	%		104	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	7.34		$	7.09		$	8.40		$	7.43		$	8.56
Income (loss) from investment operations:
Net investment income (loss) (a)		0.15			0.09	^		0.34			0.26			0.44
Net realized and unrealized gain (loss)		0.06			0.45			(1.15	)		1.30			(0.26	)
Total from investment operations		0.21			0.54			(0.81	)		1.56			0.18
Less distributions from:
Net investment income		(0.24	)		(0.28	)		(0.34	)		(0.30	)		(0.32	)
Net realized gains		—			—			(0.16	)		(0.29	)		(0.99	)
Return of capital		—			(0.01	)		—			—			—
Total distributions		(0.24	)		(0.29	)		(0.50	)		(0.59	)		(1.31	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	7.31		$	7.34		$	7.09		$	8.40		$	7.43
Total Return (c)		2.90	%		7.73	%^		–9.77	%		21.35	%		1.99	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	14,682		$	23,208		$	40,388		$	87,782		$	66,834
Ratios to average net assets:
Net expenses		1.30	%		1.30	%^		1.23	%		1.24	%		1.22	%
Gross expenses		1.56	%		1.44	%		1.23	%		1.24	%		1.24	%
Net investment income (loss)		1.97	%		1.19	%^		4.20	%		3.19	%		4.86	%
Portfolio turnover rate		73	%		75	%		60	%		53	%		104	%

^	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 period. The amount of the reimbursement was 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 the period custodian fees was offset against the 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 may have been waived or reimbursed by the 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.

38  Annual Report

LAZARD US REALTY EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	19.37		$	18.93		$	19.71		$	16.05		$	17.40
Income (loss) from investment operations:
Net investment income (loss) (a)		0.31			0.29			0.33			0.28			0.41
Net realized and unrealized gain (loss)		1.18			0.72			0.55			3.85			(0.10	)
Total from investment operations		1.49			1.01			0.88			4.13			0.31
Less distributions from:
Net investment income		(0.37	)		(0.31	)		(0.38	)		(0.20	)		(0.25	)
Net realized gains		(1.64	)		(0.26	)		(1.28	)		(0.27	)		(1.41	)
Total distributions		(2.01	)		(0.57	)		(1.66	)		(0.47	)		(1.66	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—
Net asset value, end of period	$	18.85		$	19.37		$	18.93		$	19.71		$	16.05
Total Return (c)		7.93	%		5.31	%		4.63	%		25.70	%		1.77	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	18,724		$	19,625		$	21,143		$	21,806		$	7,844
Ratios to average net assets:
Net expenses		1.02	%		1.05	%		1.05	%		1.05	%		1.13	%
Gross expenses		1.09	%		1.12	%		1.09	%		1.18	%		1.27	%
Net investment income (loss)		1.55	%		1.50	%		1.64	%		1.50	%		2.28	%
Portfolio turnover rate		32	%		41	%		51	%		43	%		98	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	19.44		$	19.00		$	19.78		$	16.11		$	17.45
Income (loss) from investment operations:
Net investment income (loss) (a)		0.25			0.23			0.26			0.19			0.33
Net realized and unrealized gain (loss)		1.20			0.72			0.56			3.90			(0.06	)
Total from investment operations		1.45			0.95			0.82			4.09			0.27
Less distributions from:
Net investment income		(0.31	)		(0.25	)		(0.32	)		(0.15	)		(0.20	)
Net realized gains		(1.64	)		(0.26	)		(1.28	)		(0.27	)		(1.41	)
Total distributions		(1.95	)		(0.51	)		(1.60	)		(0.42	)		(1.61	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	18.94		$	19.44		$	19.00		$	19.78		$	16.11
Total Return (c)		7.69	%		4.99	%		4.34	%		25.33	%		1.58	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	47,811		$	59,307		$	75,907		$	88,897		$	60,823
Ratios to average net assets:
Net expenses		1.30	%		1.34	%		1.32	%		1.35	%		1.36	%
Gross expenses		1.30	%		1.34	%		1.32	%		1.42	%		1.41	%
Net investment income (loss)		1.24	%		1.17	%		1.32	%		1.01	%		1.83	%
Portfolio turnover rate		32	%		41	%		51	%		43	%		98	%

(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 may have been waived or reimbursed by the 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	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	14.16		$	14.19		$	15.17		$	15.49		$	16.98
Income (loss) from investment operations:
Net investment income (loss) (a)		0.32			0.22			0.27			0.34			0.30
Net realized and unrealized gain (loss)		1.75			0.19			(0.24	)		1.29			(0.18	)
Total from investment operations		2.07			0.41			0.03			1.63			0.12
Less distributions from:
Net investment income		(0.47	)		(0.44	)		(0.56	)		(0.61	)		(0.50	)
Net realized gains		(0.24	)		—	(b)		(0.45	)		(1.34	)		(0.96	)
Return of capital		—			—			—			—			(0.15	)
Total distributions		(0.71	)		(0.44	)		(1.01	)		(1.95	)		(1.61	)
Redemption fees		—			—	(b)		—	(b)		—			—
Net asset value, end of period	$	15.52		$	14.16		$	14.19		$	15.17		$	15.49
Total Return (c)		14.69	%		2.85	%		0.36	%		10.35	%		0.89	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	3,831		$	2,443		$	3,549		$	4,779		$	5,320
Ratios to average net assets:
Net expenses		1.00	%		1.00	%		1.05	%		1.13	%		1.22	%
Gross expenses		4.67	%		5.25	%		4.97	%		3.79	%		5.49	%
Net investment income (loss)		2.12	%		1.56	%		1.74	%		2.04	%		1.79	%
Portfolio turnover rate		82	%		38	%		56	%		84	%		81	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	14.14		$	14.18		$	15.16		$	15.48		$	16.97
Income (loss) from investment operations:
Net investment income (loss) (a)		0.26			0.19			0.23			0.29			0.25
Net realized and unrealized gain (loss)		1.76			0.16			(0.24	)		1.29			(0.18	)
Total from investment operations		2.02			0.35			(0.01	)		1.58			0.07
Less distributions from:
Net investment income		(0.42	)		(0.39	)		(0.52	)		(0.56	)		(0.45	)
Net realized gains		(0.24	)		—	(b)		(0.45	)		(1.34	)		(0.96	)
Return of capital		—			—			—			—			(0.15	)
Total distributions		(0.66	)		(0.39	)		(0.97	)		(1.90	)		(1.56	)
Redemption fees		—			—			—			—			—	(b)
Net asset value, end of period	$	15.50		$	14.14		$	14.18		$	15.16		$	15.48
Total Return (c)		14.36	%		2.47	%		0.06	%		10.05	%		0.60	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,363		$	1,560		$	1,820		$	2,016		$	2,365
Ratios to average net assets:
Net expenses		1.30	%		1.30	%		1.35	%		1.43	%		1.54	%
Gross expenses		5.62	%		5.96	%		5.55	%		4.26	%		5.81	%
Net investment income (loss)		1.69	%		1.28	%		1.47	%		1.76	%		1.45	%
Portfolio turnover rate		82	%		38	%		56	%		84	%		81	%

(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 may have been waived or reimbursed by the 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	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Institutional Shares
Net asset value, beginning of period	$	14.17		$	13.42		$	13.72		$	13.13		$	10.96
Income (loss) from investment operations:
Net investment income (loss) (a)		0.39			0.31	^		0.33			0.34			0.35
Net realized and unrealized gain (loss)		2.54			0.92			0.89			2.01			2.53
Total from investment operations		2.93			1.23			1.22			2.35			2.88
Less distributions from:
Net investment income		(0.29	)		(0.34	)		(1.17	)		(1.04	)		(0.33	)
Net realized gains		(0.82	)		(0.14	)		(0.35	)		(0.72	)		(0.38	)
Total distributions		(1.11	)		(0.48	)		(1.52	)		(1.76	)		(0.71	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	15.99		$	14.17		$	13.42		$	13.72		$	13.13
Total Return (c)		20.73	%		9.30	%^		9.30	%		17.95	%		26.56	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	4,778,042		$	2,931,161		$	2,156,325		$	1,372,216		$	641,127
Ratios to average net assets:
Net expenses		0.95	%		0.96	%^		0.96	%		0.98	%		1.01	%
Gross expenses		0.95	%		0.96	%		0.96	%		0.98	%		1.01	%
Net investment income (loss)		2.44	%		2.29	%^		2.32	%		2.35	%		2.80	%
Portfolio turnover rate		33	%		35	%		34	%		41	%		35	%
Selected data for a share of capital	Year Ended
stock outstanding throughout each period	12/31/17			12/31/16			12/31/15			12/31/14			12/31/13
Open Shares
Net asset value, beginning of period	$	14.20		$	13.45		$	13.74		$	13.15		$	10.97
Income (loss) from investment operations:
Net investment income (loss) (a)		0.35			0.29	^		0.31			0.29			0.30
Net realized and unrealized gain (loss)		2.55			0.91			0.88			2.02			2.55
Total from investment operations		2.90			1.20			1.19			2.31			2.85
Less distributions from:
Net investment income		(0.27	)		(0.31	)		(1.13	)		(1.00	)		(0.29	)
Net realized gains		(0.82	)		(0.14	)		(0.35	)		(0.72	)		(0.38	)
Total distributions		(1.09	)		(0.45	)		(1.48	)		(1.72	)		(0.67	)
Redemption fees		—			—	(b)		—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	16.01		$	14.20		$	13.45		$	13.74		$	13.15
Total Return (c)		20.47	%		9.01	%^		9.06	%		17.61	%		26.24	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	633,243		$	462,613		$	393,786		$	145,901		$	41,095
Ratios to average net assets:
Net expenses		1.21	%		1.22	%^		1.23	%		1.29	%		1.32	%
Gross expenses		1.21	%		1.22	%		1.23	%		1.29	%		1.32	%
Net investment income (loss)		2.16	%		2.09	%^		2.19	%		2.04	%		2.42	%
Portfolio turnover rate		33	%		35	%		34	%		41	%		35	%

^	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 period. The amount of the reimbursement was 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^

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/17			For the Period 12/30/16* to 12/31/16
Institutional Shares
Net asset value, beginning of period	$	10.00		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.19			—
Net realized and unrealized gain (loss)		0.78			—	(b)
Total from investment operations		0.97			—	(b)
Less distributions from:
Net investment income		(0.13	)		—
Net realized gains		(0.13	)		—
Total distributions		(0.26	)		—
Net asset value, end of period	$	10.71		$	10.00
Total Return (c)		9.80	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	17,812		$	13,090
Ratios to average net assets (d):
Net expenses		0.90	%		0.00	%
Gross expenses		3.13	%		3.49	%
Net investment income (loss)		1.79	%		0.00	%
Portfolio turnover rate		76	%		0	%
Selected data for a share of capital stock outstanding throughout the period	For the Period 1/9/17* to 12/31/17
Open Shares
Net asset value, beginning of period	$	10.03
Income (loss) from investment operations:
Net investment income (loss) (a)		0.18
Net realized and unrealized gain (loss)		0.74
Total from investment operations		0.92
Less distributions from:
Net investment income		(0.12	)
Net realized gains		(0.13	)
Total distributions		(0.25	)
Net asset value, end of period	$	10.70
Total Return (c)		9.17	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	135
Ratios to average net assets (d):
Net expenses		1.15	%
Gross expenses		20.65	%
Net investment income (loss)		1.69	%
Portfolio turnover rate		76	%

^	Consolidated Financial Highlights.
*	The inception date for the Institutional Shares was December 30, 2016 and for the Open Shares was January 9, 2017.
(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 may have been waived or reimbursed by the Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are 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, 2017

1. Organization

The Lazard Funds, Inc. 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-four 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 inter-company balances and transactions have been eliminated in consolidation. As of December 31, 2017, net assets of the Portfolio were $17,946,695, of which $1,715,846, or 9.56%, represented the Portfolio’s

ownership of all issued shares and voting rights of 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 accordance with 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—Equity securities traded on a securities exchange or market, including exchange-traded option contracts, rights and warrants, are valued at the last reported sales price (for domestic equity securities) or the closing price (for foreign equity securities) on the exchange or market on which the security is principally traded or, for securities trading on the NASDAQ National Market System (“NASDAQ”), the NASDAQ Official Closing Price. If there is no available closing price for a foreign equity security, the last reported sales price is used. If there are no reported sales of a security on the valuation date, the security is valued at the most recent quoted bid price on such date reported by such principal exchange or market. Exchange-traded futures contracts are valued at the settlement price on the exchange on which the contract is principally traded. Swap agreements, such as credit default, interest rate and total return swap agreements, 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 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. Trad-

Annual Report   43

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 (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 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 and/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/or unrealized) from the applicable portfolio securities.

As a result of several court cases in certain countries across the European Union, the Global Listed Infrastructure Portfolio has 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 Global Listed Infrastructure Portfolio’s NAV per share.

(c) Foreign Currency Translation and Forward Currency Contracts—The accounting records of the Fund

44  Annual Report

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 represents net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency 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, 2017, the Global Listed Infrastructure and Real Assets and Pricing Opportunities Portfolios traded in forward currency contracts.

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

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

Engaging in these transactions involves risk of loss to the Portfolio which could adversely affect the value of the Portfolio’s net assets. Although each of these Portfolios intends to purchase or sell futures contracts only if there is an active market for such contracts, no assurance can be given that a liquid market will exist for any particular contract at any particular time. Many futures exchanges and boards of trade limit the amount of fluctuation permitted in futures contract prices during a single trading day. Once the daily limit has been reached in a particular contract, no trades may be made that day at a price beyond that limit or trading may be suspended for specified periods during the trading day. Futures contract prices could move to the limit for several consecutive trading days with little or no trading, thereby preventing prompt liquidation of futures positions and potentially subjecting the Portfolio to substantial losses.

Annual Report   45

During the year ended December 31, 2017, the Real Assets and Pricing Opportunities Portfolio traded in futures contracts.

(e) Commodity-Linked Swap Agreements—Commodity-linked swap agreements involve commitments to pay interest in exchange for a commodity-linked return based on a notional amount. To the extent the return of the reference commodity or commodity index or basket of reference commodities or commodity indexes 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, 2017, the Real Assets and Pricing Opportunities Portfolio traded in commodity-linked 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, 2017, the following Portfolio had unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains with no expiration date as follows:

Portfolio	Short-Term	Long-Term
US Realty Income	$(2,620,638)	$(12,971,246)

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, 2017, the following Portfolio elected to defer such losses as follows:

Portfolio	Post-October Capital Loss Deferral		Late-Year Ordinary Loss Deferral
Global Listed Infrastructure	$	—	$	(93,922,538	)

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	$	27,470,001	$	762,114	$	1,250,457	$	(488,343	)
US Realty Equity		58,161,229		9,646,291		1,418,749		8,227,542
Global Realty Equity		4,871,611		437,728		105,338		332,390
Global Listed Infrastructure		4,953,957,053		763,712,378		227,846,845		535,865,533
Real Assets and Pricing Opportunities		16,093,412		1,370,117		254,758		1,115,359

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 tax returns filed for any open tax years (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction’s statute of limitations. The Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.

(g) Dividends and Distributions—Dividends from net investment income, if any, will be declared and paid annually, except that US Realty Income, Global Listed Infrastructure and Real Assets and Pricing Opportunities Portfolios’ dividends from net investment income

46   Annual Report

(if any), will be declared and paid quarterly. During any particular year, net realized gains from investment transactions in excess of available capital loss carry-forwards 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.

The US Realty Equity and Global Listed Infrastructure Portfolios intend, on their 2017 tax returns, to treat as a distribution of investment company taxable income and net capital gain the portion of redemption proceeds paid to redeeming shareholders that represents the redeeming shareholders’ portion of the Portfolios’ undistributed investment company taxable income and net capital gain. This practice, which involves the use of equalization accounting, will have the effect of reducing the amount of income and gains that the Portfolios would otherwise be required to distribute as dividends to shareholders in order for the Portfolios to avoid federal income and excise taxes. This practice reduces the amount of distributions required to be made to nonredeeming shareholders and defers the recognition of taxable income by such shareholders. However, since the amount of any undistributed income will be reflected in the value of the Portfolios’ shares, the total return on a shareholder’s investment is not affected by the Portfolios’ use of equalization.

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.

Net income and realized gains from investments held by the Subsidiary are treated as ordinary income for 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, or any future tax year.

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

Portfolio	Paid in Capital			Undistributed (Distributions in Excess of) Net Investment Income			Accumulated Net Realized Gain (Loss)
US Realty Income	$	(522,484	)	$	378,972		$	143,512
US Realty Equity		729,857			99,447			(829,304	)
Global Realty Equity		(1	)		50,370			(50,369	)
Global Listed Infrastructure		(70,013,125	)		(139,341,827	)		209,354,952
Real Assets and Pricing Opportunities		(31,749	)		(244,774	)		276,523

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2017		2016		2017		2016
US Realty Income*	$	1,061,926	$	2,081,604	$	—	$	—
US Realty Equity		1,164,385		1,077,683		5,377,326		1,143,361
Global Realty Equity		147,115		126,977		76,794		126
Global Listed Infrastructure		88,165,301		83,080,443		262,622,316		26,250,518
Real Assets and Pricing Opportunities		401,034		—		4,279		—

* US Realty Income Portfolio had return of capital distributions of $94,379 in 2016.

At December 31, 2017, the components of distributable earnings, on a tax basis, were as follows:

Annual Report   47

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	$	16,930		$	(15,591,884	)	$	(488,343	)
US Realty Equity		—			499,568			8,227,542
Global Realty Equity		78,104			25,092			332,025
Global Listed Infrastructure		(93,922,538	)		179,117,842			535,484,016
Real Assets and Pricing Opportunities		4,279			753			1,082,806

Concurrent with the distributions paid throughout the year, the US Realty Income, Global Listed Infrastructure and Real Assets and Pricing Opportunities Portfolios may issue notices pursuant to Section 19(a) of the 1940 Act (the “Notices”) stating that, as of the date of the Notices, the Portfolios had currently estimated that they had distributed more than their net investment income. For 2017, the Portfolios did not make distributions in excess of their net investment income and realized capital gains. The Notices may also be viewed at www.lazardassetmanagement.com.

The amounts and sources of distributions shown on the Notices are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the cumulative distributions for tax reporting purposes will depend upon each Portfolio’s investments during the year and may be subject to changes based on tax regulations. The Portfolios will send shareholders a Form 1099-DIV for the calendar year explaining how to report these distributions for federal income tax purposes.

(h) Offering and Organizational Costs—Costs incurred by the Fund in connection with the offering of shares of a new Portfolio or share class of a 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 or share class. Organizational costs are expensed as incurred.

(i) Allocation of Expenses—Expenses common to the Fund, Lazard Retirement Series, Inc., Lazard Global Total Return and Income Fund, Inc. and Lazard World Dividend & Income Fund, Inc. (each a “Lazard Fund”

and collectively, the “Lazard Fund Complex”), each a registered management investment company advised by the Investment Manager, not directly chargeable to one or more specific Lazard Funds are allocated to the Fund and among its Portfolios primarily on the basis of relative net assets. Expenses of the Fund not directly chargeable to one or more Portfolios are similarly allocated among the Portfolios 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 were 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.

48  Annual Report

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, and provides the Portfolios with administrative, operational and compliance assistance services. 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 (a)		0.75
Global Realty Equity		0.85
Global Listed Infrastructure		0.90
Real Assets and Pricing Opportunities		0.70

(a) From January 1, 2017 to June 6, 2017, percentage was 0.80%.

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, the 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, until May 1 of the year shown below (except as noted), to waive its fees and, if necessary, reimburse the Portfolios if the aggregate direct expenses of the Portfolios, exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Funds” (as defined in Form N-1A) and extraordinary expenses, 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			Year
US Realty Income		1.00	%		1.30	%		2018
US Realty Equity		1.00			1.30			2027	(a)
Global Realty Equity		1.00			1.30			2018
Global Listed Infrastructure		1.30			1.60			2027	(b)
Real Assets and Pricing Opportunities		0.90			1.15			2018	(c)

(a)	Agreement is through May 1, 2027. From January 1, 2017 through June 6, 2017, percentages were 1.05% and 1.35%, respectively.
(b)	Agreement is through May 1, 2027.
(c)	Agreement is until December 30, 2018.

During the year ended December 31, 2017, 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	$	47,790	$	—	$	47,220	$	—
US Realty Equity		12,732		—		—		—
Global Realty Equity		29,230		93,634		11,641		46,135
Real Assets and Pricing Opportunities		108,833		227,723		498		7,261

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

State Street provides the Fund with custody and certain fund administration and accounting services. For the year ended December 31, 2017, State Street waived its fund administration fee as follows:

Portfolio	Amount
Global Realty Equity	$4,688
Real Assets and Pricing Opportunities	4,688

In December 2015, State Street announced that it had identified inconsistencies in the way in which clients were invoiced for custody out-of-pocket expenses from 1998 until 2015. The dollar amount difference between what was charged and what should have been charged, plus interest, was recorded as a reimbursement when determined in 2016. Pursuant to the expense limitations described above, certain Portfolios experienced man-

Annual Report  49

agement 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, 2017, BFDS waived $12,246 of its fee for the Real Assets and Pricing Opportunities Portfolio.

On January 1, 2018, BFDS changed its name to DST Asset Manager Solutions, Inc.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2017, each Director who is not an affiliated person of the Investment Manager or any of its affiliates was paid by the Lazard Fund Complex: (1) an annual retainer of $210,000, (2) an additional annual fee of $30,000 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 $20,000 to the Audit Committee Chair. Effective January 1, 2018, the aggregate compensation for Independent Directors for the Lazard Fund Complex is comprised of: (1) an annual retainer of $225,000, (2) an additional annual fee of $32,500 to the lead Independent Director, and (3) an additional annual fee of $22,500 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, 2017 were as follows:

Portfolio	Purchases		Sales
US Realty Income	$	23,837,112	$	37,272,678
US Realty Equity		23,147,483		40,383,073
Global Realty Equity		4,418,340		3,868,246
Global Listed Infrastructure		2,421,511,867		1,435,123,249
Real Assets and Pricing Opportunities		10,209,227		10,676,779

	US Treasury Securities
Portfolio	Purchases	Sales
Real Assets and Pricing Opportunities	$2,058,960	$352,573

For the year ended December 31, 2017, 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.

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At December 31, 2017, the Investment Manager owned 62.83% 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 is 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, 2017, the Portfolios had borrowings under the Agreement as follows:

Portfolio	Average Daily Loan Balance*		Maximum Daily Loan Outstanding		Weighted Average Interest Rate			Number of Days Borrowings were Outstanding
US Realty Income	$	347,842	$	1,534,000		1.85	%		43
US Realty Equity		241,538		355,000		1.96			13
Global Realty Equity		20,231		70,000		1.85			26
Real Assets and Pricing Opportunities		50,000		50,000		2.56			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 balance on the 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 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. A Portfolio’s currency investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies. For Portfolios other than the Global Listed Infrastructure Portfolio, the Investment Manager does not intend to actively hedge the Portfolios’ foreign currency exposure.

(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

Annual Report  51

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, includ-

ing high interest costs in connection with capital construction programs, high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors. Infrastructure companies also may be affected by or subject to: regulation by various government authorities, including rate regulation; service interruption due to environmental, operational or other mishaps; the imposition of special tariffs and changes in tax laws, regulatory policies and accounting standards; general changes in market sentiment towards infrastructure and utilities assets; difficulty in raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets; inexperience with and potential losses resulting from a developing deregulatory environment; and technological innovations that may render existing plants, equipment or products obsolete.

(f) Subsidiary Risk—The 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 the 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 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

52  Annual Report

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. During periods of reduced market liquidity, a Portfolio may not be able to readily sell debt securities at prices at or near their perceived value. An unexpected increase in Portfolio redemption requests, including requests from shareholders who may own a significant percentage of a Portfolio’s shares, which may be triggered by market turmoil or an increase in interest rates, could cause the Portfolio to sell its holdings at a loss or at undesirable prices and adversely affect the Portfolio’s share price and increase the Portfolio’s liquidity risk, Portfolio expenses and/or taxable distributions. Economic and other developments can adversely affect debt securities markets.

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

Annual Report  53

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.

(j) Commodities-Related Investments Risk—Exposure to the commodities markets may subject the Real Assets and Pricing Opportunities 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. The commodity markets are subject to temporary distortions or other disruptions due to a variety of factors, including the lack of liquidity in the markets, the participation of speculators and government regulation and intervention. United States futures exchanges and some foreign exchanges have regulations that limit the amount of fluctuation in futures contract prices, which may occur during a single business day. These limits are generally referred to as “daily price fluctuation limits” and the maximum or minimum price of a contract on any given day as a result of these limits is referred to as a “limit price.” Once the limit price has been reached in a particular contract, no trades may be made at a different price.

Limit prices have the effect of precluding trading in a particular contract or forcing the liquidation of contracts at disadvantageous times or prices. These circumstances could adversely affect the value of the commodity-linked investments.

(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 and Hedging Risk—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. Over-the-counter swap agreements, forward currency contracts, writing or purchasing over-the-counter options on securities (including options on exchange-traded funds and exchange-traded notes), indexes and currencies and other over-the-counter derivatives transactions are subject to the risk of default by the counterparty and can be illiquid. Changes in liquidity may result in significant, rapid and unpredictable changes in the prices for derivatives. These derivatives transactions, as well as the exchange-traded futures and options in which certain

54  Annual Report

Portfolios may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related index, commodity, interest rate, currency, security or other reference asset. As such, a small investment could have a potentially large impact on a Portfolio’s performance. Purchasing options will reduce returns by the amount of premiums paid for options that are not exercised. 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 when 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 indemnification provisions. 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. The fair value measurement level within the fair value hierarchy for the assets and liabilities of the Fund 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 assets and liabilities, interest rates, prepayment speeds, credit risk, etc.)

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

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  55

The following table summarizes the valuation of the Portfolios’ assets and liabilities by each fair value hierarchy level as of December 31, 2017:

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, 2017
US Realty Income Portfolio
Preferred Stocks*	$	7,846,329	$	—		$	—	$	7,846,329
Real Estate Investment Trusts*		18,774,883		—			—		18,774,883
Short-Term Investments		360,446		—			—		360,446
Total	$	26,981,658	$	—		$	—	$	26,981,658
US Realty Equity Portfolio
Common Stocks*	$	1,959,534	$	—		$	—	$	1,959,534
Real Estate Investment Trusts*		62,918,479		—			—		62,918,479
Short-Term Investments		1,510,758		—			—		1,510,758
Total	$	66,388,771	$	—		$	—	$	66,388,771
Global Realty Equity Portfolio
Common Stocks*
Brazil	$	—	$	68,666		$	—	$	68,666
Canada		68,822		—			—		68,822
China		—		171,630			—		171,630
Germany		—		216,090			—		216,090
Hong Kong		61,232		278,121			—		339,353
India		—		50,662			—		50,662
Japan		—		376,461			—		376,461
Mexico		11,646		—			—		11,646
Philippines		—		117,100			—		117,100
Singapore		—		130,122			—		130,122
Sweden		—		65,133			—		65,133
United Arab Emirates		—		41,423			—		41,423
United States		63,929		—			—		63,929
Real Estate Investment Trusts*
Australia		—		99,494			—		99,494
France		—		181,936			—		181,936
Germany		—		51,505			—		51,505
Hong Kong		—		143,808			—		143,808
Japan		—		84,564			—		84,564
Mexico		70,107		—			—		70,107
Spain		—		80,107			—		80,107
United Kingdom		—		318,382			—		318,382
United States		2,255,216		—			—		2,255,216
Short-Term Investments		197,845		—			—		197,845
Total	$	2,728,797	$	2,475,204		$	—	$	5,204,001
Global Listed Infrastructure Portfolio
Assets:
Common Stocks*
Australia	$	—	$	458,129,871		$	—	$	458,129,871
France		—		607,688,886			—		607,688,886
Germany		—		246,866,601			—		246,866,601
Italy		—		1,370,701,102			—		1,370,701,102
Luxembourg		—		203,803,963			—		203,803,963
Portugal		—		61,475,424			—		61,475,424
Spain		—		594,203,535			—		594,203,535
United Kingdom		—		706,108,697			—		706,108,697
United States		761,470,370		—			—		761,470,370
Short-Term Investments		479,374,137		—			—		479,374,137
Total	$	1,240,844,507	$	4,248,978,079		$	—	$	5,489,822,586

56  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, 2017
Liabilities:
Other Financial Instruments†
Forward Currency Contracts	$	—	$	(54,685,362	)	$	—	$	(54,685,362	)
Real Assets and Pricing Opportunities Portfolio
Assets:
Common Stocks*
Australia	$	—	$	492,764		$	—	$	492,764
Canada		887,331		—			—		887,331
China		—		105,728			—		105,728
Denmark		—		24,247			—		24,247
France		12,549		354,187			—		366,736
Germany		—		338,908			—		338,908
Hong Kong		6,042		414,929			—		420,971
Ireland		12,920		22,880			—		35,800
Italy		—		582,219			—		582,219
Japan		—		632,936			—		632,936
Luxembourg		84,491		49,865			—		134,356
Mexico		48,576		—			—		48,576
Netherlands		—		42,401			—		42,401
New Zealand		—		39,398			—		39,398
Norway		—		26,526			—		26,526
Philippines		—		74,950			—		74,950
Singapore		—		252,027			—		252,027
Spain		—		344,001			—		344,001
Sweden		—		59,745			—		59,745
Switzerland		—		86,161			—		86,161
United Kingdom		—		810,040			—		810,040
United States		5,022,729		—			—		5,022,729
Foreign Government Obligations*		—		1,829,455			—		1,829,455
US Treasury Securities		—		3,009,961			—		3,009,961
Short-Term Investments		1,670,280		—			—		1,670,280
Other Financial Instruments†
Forward Currency Contracts		—		14,299			—		14,299
Futures Contracts		8,059		—			—		8,059
Total Return Swap Agreements		—		41,318			—		41,318
Total	$	7,752,977	$	9,648,945		$	—	$	17,401,922
Liabilities:
Other Financial Instruments†
Forward Currency Contracts	$	—	$	(102,062	)	$	—	$	(102,062	)

*	Please refer to Portfolios of Investments and Notes to Portfolios of Investments 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.

During the year ended December 31, 2017, securities valued at the following amounts were transferred from Level 1 to Level 2:

Annual Report  57

Portfolio	Amount
Global Listed Infrastructure	$	67,966,524
Real Assets and Pricing Opportunities		293,842

There were no other transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 2017.

For further information regarding security characteristics see Portfolios of Investments.

10. Derivative Instruments

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

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

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

A Portfolio 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.

Global Listed Infrastructure Portfolio

During the year ended December 31, 2017, the approximate average monthly notional exposure for derivative instruments was as follows:

Forward currency contracts $ 3,624,600,000

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2017:

	Fair Value
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	54,685,362

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2017 was:

	Amount
Realized Gain (Loss) on Derivatives
Foreign Exchange Risk:
Net realized gain (loss) on forward currency contracts	$	(309,440,685	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on forward currency contracts	$	(55,051,012	)

Real Assets and Pricing Opportunities Portfolio

During the year ended December 31, 2017, the approximate average monthly notional exposure for derivative instruments was as follows:

Forward currency contracts	$	5,900,000
Futures contracts	$	100,000	*
Swap agreements	$	1,300,000	†

*	Represents average monthly notional exposure for the nine months the derivative instrument was open during the period.
†	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, 2017:

	Fair Value
Asset Derivatives
Commodity Risk:
Gross unrealized appreciation on futures contracts	$	8,059
Equity Risk:
Gross unrealized appreciation on swap agreements	$	41,318
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	14,299
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	102,062

58  Annual Report

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2017 was:

	Amount
Realized Gain (Loss) on Derivatives
Commodity Risk:
Net realized gain (loss) on futures contracts	$	(21,530	)
Equity Risk:
Net realized gain (loss) on swap agreements	$	49,302
Foreign Exchange Risk:
Net realized gain (loss) on forward currency contracts	$	(356,016	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Commodity Risk:
Net change in unrealized appreciation (depreciation) on futures contracts	$	8,059
Equity Risk:
Net change in unrealized appreciation (depreciation) on swap agreements	$	41,318
Foreign Exchange Risk:
Net change in unrealized appreciation (depreciation) on forward currency contracts	$	(82,117	)

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

None of the other Portfolios presented traded in derivative instruments during the year ended December 31, 2017.

As of December 31, 2017, the Global Listed Infrastructure and Real Assets and Pricing Opportunities Portfolios held 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, 2017:

Global Listed Infrastructure 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		$54,685,362	$	—	$	54,685,362

			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		$8,148,843	$	—		$	—	$	8,148,843
Canadian Imperial Bank of Commerce		4,053,778		—			—		4,053,778
Citibank NA		8,972,674		—			—		8,972,674
HSBC Bank USA NA		8,771,746		—			—		8,771,746
Royal Bank of Canada		8,661,981		—			—		8,661,981
Standard Chartered Bank		1,329,999		—			—		1,329,999
State Street Bank and Trust Co.		7,995,640		—			—		7,995,640
The Bank of New York Mellon Corp.		6,750,701		—			—		6,750,701
Total		$54,685,362	$	—		$	—	$	54,685,362

Annual Report  59

Real Assets and Pricing 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	$	14,299	$	—	$	14,299
Swap Agreements		41,318		—		41,318
Total	$	55,617	$	—	$	55,617

			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
Citibank NA	$	391	$	(391	)	$	—	$	—
Goldman Sachs International		41,318		—			—		41,318
HSBC Bank USA NA		13,908		(13,908	)		—		—
Total	$	55,617	$	(14,299	)	$	—	$	41,318

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	$	102,062	$	—	$	102,062

			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
Citibank NA	$	27,645	$	(391	)	$	—	$	27,254
HSBC Bank USA NA		67,307		(13,908	)		—		53,399
State Street Bank and Trust Co.		7,110		—			—		7,110
Total	$	102,062	$	(14,299	)	$	—	$	87,763

11. Subsequent Events

Management has evaluated subsequent events affecting the Fund through the issuance of the financial statements and has determined that, aside from items previously disclosed within the Notes to Financial Statements and the following , there were no subsequent events that required adjustment or disclosure.

On February 28, 2018, the Board approved merging the US Realty Income Portfolio (the “Acquired Portfolio”) into the US Realty Equity Portfolio in a tax-free reorganization (the “Merger”). The Merger would require the approval of the shareholders of the Acquired Portfolio.

60  Annual Report

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

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

Opinion on the Financial Statements and Financial Highlights

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, 2017, 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, the financial highlights for each of the four years in the period then ended, and the related notes to the financial statements. The financial highlights for the year ended December 31, 2013 were audited by other auditors whose report, dated February 28, 2014, expressed an unqualified opinion on those financial highlights. 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 (collectively, with the portfolios mentioned above, the “Portfolios), one of the portfolios constituting the Fund, as of December 31, 2017, the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets and consolidated financial highlights for each of the periods presented, and the related notes to the financial statements. In our opinion, the financial statements and financial highlights 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, as of December 31, 2017, and 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 four years in the period then ended, and the consolidated financial position of Lazard Real Assets and Pricing Opportunities Portfolio, as of December 31, 2017, and the consolidated results of its operations for the year then ended, the consolidated changes in its net assets and consolidated financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolios’ management. Our responsibility is to express an opinion on the Portfolios’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolios in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Portfolios are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in

Annual Report  61

the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2017, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE &TOUCHE LLP
New York, New York
February 28, 2018

We have served as the auditor of one or more Lazard Fund Complex investment companies since 2004.

62  Annual Report

The Lazard Funds, Inc. Proxy Voting Results (unaudited)

A Joint Special Meeting of Shareholders of the Fund and Lazard Retirement Series, Inc. was held on October 20, 2017, to vote on the following proposals. Except as noted below, the proposals received the required number of votes of shareholders and were adopted.

Proposal 1:

To elect each of Franci J. Blassberg, Trevor W. Morrison and Nathan A. Paul as a Fund Director.

Director	For	Withhold Authority
Franci J. Blassberg	1,322,185,144	18,431,907
Trevor W. Morrison	1,323,575,840	17,041,212
Nathan A. Paul	1,331,727,319	8,889,732

Proposal 2A:

To approve revising the Portfolio’s fundamental investment restrictions on issuing senior securities, borrowing and pledging or mortgaging its assets.

Portfolio	For	Against	Abstain
US Realty Income*	1,653,938	50,015	20,435
US Realty Equity*	720,296	67,708	37,321
Global Realty Equity	273,075	897	—
Global Listed Infrastructure*	139,809,829	3,571,023	3,284,232

Proposal 2B:

To approve revising the Portfolio’s fundamental investment restrictions on purchasing or selling commodities or commodities contracts.

Portfolio	For	Against	Abstain
US Realty Income*	1,657,204	46,923	20,261
US Realty Equity*	291,473	96,244	37,608
Global Realty Equity	273,075	897	—
Global Listed Infrastructure	141,508,487	3,647,895	1,508,699

Proposal 2C:

To approve revising the Portfolio’s fundamental investment restriction on purchasing securities on margin.

Portfolio	For	Against	Abstain
Global Listed Infrastructure*	138,806,522	6,314,428	1,544,132

* Proposal did not receive the required number of votes of shareholders and was not adopted.

Annual Report  63

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 (64)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present)
		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 (72)	Director (August 1995)	Davidson Capital Management Corporation, an investment manager, President (1978 – present)
		Landseer Advisors LLC, an investment manager, Senior Advisor (2012 – 2014)
Nancy A. Eckl (55)	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)
Trevor W. Morrison (46)	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. (73)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		Resource Americas, Inc., a real estate asset management company, Director (2016 – present)
Robert M. Solmson (70)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present)

64  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):
Ashish Bhutani (57)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present)
		Lazard Ltd, Vice Chairman and Director (2010 – present)
Nathan A. Paul (45)	Director (October 2017) Chief Executive Officer and President (February 2017)	Investment Manager, Chief Business Officer (April 2017 – present) and Managing Director (2003 – present)
		Investment Manager, General Counsel (2002 – April 2017)

(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, 2018, 41 active investment portfolios). Each Director serves an indefinite term, until his or her successor is elected, and each Director serves in the same capacity for the other funds in the Lazard Fund Complex.
(3)	“Independent Directors” are not “interested persons” (as defined in the 1940 Act) of the Fund.
(4)	Messrs. Bhutani and Paul 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.lazardassetmanagement.com.

Annual Report  65

Name (Age) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) During the Past Five Years
Officers(3):
Mark R. Anderson (47)	Chief Compliance Officer (September 2014), Vice President and Secretary (February 2017)	Managing Director (since February 2017, previously Director), General Counsel (since April 2017) and Chief Compliance Officer (since September 2014) of the Investment Manager
		Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014)
Christopher Snively (33)	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 (59)	Treasurer (May 2003)	Vice President of the Investment Manager
Tamar Goldstein (42)	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 (36)	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 (43)	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 Nathan A. Paul, Chief Executive Officer and President (since February 2017; previously, Vice President and Secretary since April 2002), whose information is included in the Interested Directors section above.

66  Annual Report

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

Tax Information

Year Ended December 31, 2017

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2017:

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

Portfolio	Percentage
US Realty Income		2.18	%
US Realty Equity		0.15
Global Realty Equity		30.29
Global Listed Infrastructure		20.07
Real Assets and Pricing Opportunities		51.92

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		2.15	%
US Realty Equity		0.15
Global Realty Equity		0.10
Global Listed Infrastructure		11.95
Real Assets and Pricing Opportunities		14.90

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 U.S. Securities and Exchange Commission (the “SEC”) website at https://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 https://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 https://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  67

The Lazard Funds, Inc.

30 Rockefeller Plaza
New York, New York 10112-6300

Telephone: 800-823-6300

https://www.lazardassetmanagement.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

DST Asset Manager Solutions, 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

Proskauer Rose LLP

Eleven Times Square
New York, New York 10036-8299

http://www.proskauer.com

 

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

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

ITEM 2. CODE OF ETHICS.

The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The Registrant’s Board of Directors (the “Board”) has determined that Robert M. Solmson and Nancy A. Eckl, members of the Audit Committee of the Board, are audit committee financial experts as defined by the Securities and Exchange Commission (the “SEC”). Mr. Solmson and Ms. Eckl are “independent” as defined by the SEC for purposes of audit committee financial expert determinations.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $698,307 in 2016 and $1,560,778 in 2017 (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 $163,000 in 2016 and $175,000 in 2017.

(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 $325,955 in 2016 and $418,721 in 2017. 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 $114,275 in 2016 and $209,208 in 2017. The aggregate fees billed in the Reporting Periods for

Tax Services provided by the Auditor to Service Affiliates which required preapproval by the Audit Committee were $0 in 2016 and $0 in 2017.

(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. Preapproval 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 $1,152,787 in 2016 and $938,003 in 2017.

(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. Subsequent to December 31, 2017, but prior to the evaluation of the design and operation of the Registrant’s disclosure controls and procedures as of March 8, 2018, the Registrant revised its internal control over financial reporting to improve the effectiveness of the controls related to certain expense payments.

(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. However, as discussed above, subsequent to December 31, 2017, the Registrant has enhanced controls related to certain expense payments.

ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 13. 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 8, 2018

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 8, 2018

By	/s/	Christopher Snively
		Christopher Snively
		Chief Financial Officer

Date March 8, 2018