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:	12/31/18

ITEM 1. REPORTS TO STOCKHOLDERS.

Lazard Funds

Annual Report

December 31, 2018

Alternatives Funds

Lazard Emerging Markets Income Portfolio

Lazard Enhanced Opportunities Portfolio

Lazard Explorer Total Return Portfolio

Important Information on Paperless Delivery

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. Shareholders who hold accounts directly with the Fund may elect to receive shareholder reports and other communications from the Fund electronically by signing up for paperless delivery at www.icsdelivery.com/lazardassetmanagement. If you own these shares through a financial intermediary, you may contact your financial intermediary.

You may elect to receive all future reports in paper free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by following the instructions included with this disclosure and visiting www.fundreports.com. If you own these shares through a financial intermediary, you may contact your financial intermediary or follow instructions included with this disclosure to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the fund complex or your financial intermediary.

PRIVACY NOTICE

WHAT DOES LAZARD DO WITH YOUR PERSONAL INFORMATION?

Financial companies choose how they share your personal information. U.S. federal law gives our clients the right to limit some but not all sharing. U.S. federal and other applicable 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.

We do not disclose nonpublic personal information about our clients or former clients to third parties other than as described below.

Personal information we collect. We collect personal information about you in connection with our providing advisory services to you. The legal basis for our collection of your personal information is our contract with you and our legitimate business interest to provide contractual services to you. The collection of this information is necessary for us to be able to provide advisory services to you and the failure to provide such information will result in our inability to provide our services. This information includes your social security number (for U.S. persons) and may include other information such as your:

• Assets and income;

• Investment experience;

• Transaction history;

• Credit history; and

• Wire transfer instructions.

How we collect this information. We collect this information from you through various means. For example, when you give us your contact information, enter into an investment advisory contract with us, buy securities (i.e., interests in a fund) from us, direct us to buy or sell securities for your account, tell us where to send money, or make a wire transfer. We also may collect your personal information from other sources, such as our affiliates¹ or other non-affiliated companies (such as credit bureaus).

¹ Our affiliates are companies related to us by common ownership or control and can include both financial and nonfinancial companies. Non-affiliates are companies not related to us by common ownership or control and can include both financial and nonfinancial companies.

How we use this information. All financial companies need to share customers’ personal information to run their everyday business and we use the personal information we collect from you for our everyday business purposes. These purposes may include for example:

• To provide advisory services to you;

• To open an account for you;

• To process a transaction for your account;

• To market products and services to you; and/or

• To respond to court orders and legal investigations.

If you are an investor located within a European Union country, please note that personal information may be collected, shared and/or stored outside of the European Union.

Disclosure to others. We may provide your personal information to our affiliates and to firms that assist us in servicing your account and have a need for such information, such as a broker, counterparty, fund administrator or third party service provider that aggregates data in a central repository for access by a broker, counterparty or fund administrator to provide its services. We may also disclose such information to service providers and financial institutions with which we have a formal agreement to provide services relating to our arrangements with you. We require third party service providers and financial institutions with which we have a formal agreement to provide services relating to our arrangements with you to protect the confidentiality of your information and to use the information only for the purposes for which we disclose the information to them. These sharing practices are consistent with applicable privacy and related laws, and in general, you may not limit our use of your personal information for these purposes under such laws. We note that the U.S. federal privacy laws only give you the right to limit the certain types of information sharing that we do not engage in (e.g., sharing with our affiliates certain information relating to your transaction history or creditworthiness for their use in marketing to you, or sharing any personal information with non-affiliates for them to market to you). We may also share your personal information with nonaffiliates (such as a government agency or regulatory authority) as required by applicable law.

How we protect your personal information. To protect your personal information from unauthorized access and use, we use security measures that comply with applicable law. These measures include computer safeguards and secured files and buildings.

How long we keep your personal information. We retain your personal information for the duration of your advisory relationship with us and for a period of time thereafter as required by applicable law.

Your rights with respect to this information. If you are an investor located within a European Union country, you have the following rights with respect to your personal information:

• The right to request and obtain a copy of your personal information that we maintain;

• The right to correct your personal information that we maintain;

• The right to request the erasure of your personal information from our systems, subject to applicable recordkeeping requirements applicable to us; and

• The right to lodge a complaint with a supervisory authority.

Who is providing this Privacy Notice. This Privacy Notice relates to the following entities:

• Lazard Asset Management LLC

• Lazard Asset Management (Canada), Inc.²

• Lazard Asset Management Securities LLC

Who to contact with questions. If you have any questions about this Privacy Notice, please call (800) 823-6300 or visit our website at http://www.lazardassetmanagement.com.

² Lazard Asset Management (Canada), Inc. does not disclose any non-public personal information about its customers to any third party, except as permitted by or required by any applicable law, including the laws of the United States and Canada.

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard (unaudited)
4	Investment Overviews (unaudited)
8	Performance Overviews (unaudited)
12	Information About Your Portfolio’s Expenses (unaudited)
14	Portfolio Holdings Presented by Asset Class/Sector and Region
15	Portfolios of Investments
15	Lazard Emerging Markets Income Portfolio
20	Lazard Enhanced Opportunities Portfolio
34	Lazard Explorer Total Return Portfolio
51	Notes to Portfolios of Investments
54	Statements of Assets and Liabilities
58	Statements of Operations
62	Statements of Changes in Net Assets
66	Financial Highlights
72	Notes to Financial Statements
106	Report of Independent Registered Public Accounting Firm
108	Board of Directors and Officers Information (unaudited)
111	Tax and Other Information (unaudited)

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 (unaudited)

Dear Shareholder,

In 2018, volatility returned to global markets. The economic trajectories of the major economies diverged during the year, with US growth accelerating and non-US growth decelerating. Tighter US monetary policy, declining oil prices, and trade tensions between the United States and China also increased risk aversion. Against this backdrop, almost every major developed and emerging equity market declined during the year. Despite the uptick in global market turbulence, our portfolio management teams remain steadfast in their investment discipline and continue to focus on fundamental research.

The US equity market ended the year down after a severe fourth quarter sell-off. During the quarter, volatility as measured by the CBOE Volatility^® Index increased, corporate credit spreads widened, the yield curve flattened, and the yield on the 10-year US Treasury declined. Crude oil prices fell by nearly $29 per barrel on the back of concerns over flagging global demand and elevated supply.

In Europe, political risks increased throughout the year as the Italian election led to a governing coalition of the League and the Five Star Movement. The United Kingdom struggled with finalizing a resolution to exit the European Union (“Brexit”) and German Chancellor Angela Merkel announced she would step down in 2021. The European Central Bank ended its monthly asset purchase program in December, but kept its benchmark interest rate at zero.

Emerging markets equities and debt fell significantly in 2018 as macroeconomic and geopolitical developments weighed on market sentiment. The rising US dollar pressured most emerging markets during the year. In Turkey, uncertainty related to the country’s trade deficit was exacerbated by US sanctions and a diplomatic dispute with the United States over a detained American pastor. Uncertainty about trade and concerns about decelerating Chinese growth rippled through the global economy. Despite these challenges, our emerging markets equity and debt teams believe that many emerging markets still have solid fundamentals, and are well positioned to grow faster than the global growth average.

2  Annual Report

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

Annual Report  3

The Lazard Funds, Inc. Investment Overviews (unaudited)

Alternatives

Emerging markets local currency and debt markets began 2018 on strong footing, but a combination of factors caused negative performance in the second and third quarters, which overwhelmed the positive results early and late in the year. Among the drivers that hurt sentiment toward emerging markets broadly were: perceptions of a more hawkish US Federal Reserve (“Fed”), global trade tensions, the introduction of sanctions and tariffs in select emerging markets, and a downgraded outlook for global GDP, alongside idiosyncratic country pressures in Argentina, Turkey, and Brazil. The dynamics which have propelled the US dollar sharply stronger during much of 2018 (i.e., US cyclical growth, monetary policy divergence, overseas profit repatriation, etc.) appear to be waning, and the Fed’s highly anticipated rate hikes with dovish guidance ultimately lowered the value of the US dollar at the close of a challenging year for fixed income and equity investors alike.

Emerging markets debt fell 5.15% in 2018, as measured in US dollar terms, (as represented by the 50% JPMorgan EMBI Global Diversified^® Index/50% JPMorgan GBI-EM Global Diversified^® Index) (the “Global Diversified Index”), marking the lowest calendar-year return for the asset class since 2015. Declines occurred in both local currency and external debt. Coming off abnormally low volatility in 2017, this year may have felt like a roller coaster for emerging markets debt investors, but volatility was in line with historical averages for the asset class (as represented by the Global Diversified Index).

The decline in local currency debt was mainly driven by spot depreciation in emerging markets currencies, which ended the year down almost 10% versus the US dollar. Meanwhile, external debt posted only the third negative calendar year return for the JPMorgan EMBI Global Diversified Index in the past 20 years, primarily driven by credit spreads, which ended the year 130 basis points (bps) wider at 415 bps, their widest level since 2016.

Following a fairly subdued volatility backdrop in 2017, risk assets experienced numerous, significant re-pricings throughout 2018. On three occasions, the S&P 500^® Index experienced a drawdown of greater than 10%, including the recent December drawdown of

4  Annual Report

16.6%. As a result, volatility opportunities were well bid, while credit-oriented paper was better for sale.

Lazard Emerging Markets Income Portfolio

For the year ended December 31, 2018, the Lazard Emerging Markets Income Portfolio’s Institutional Shares posted a total return of -5.79%, while Open Shares posted a total return of -5.97%, as compared with the -3.33% return for the JPMorgan Emerging Local Markets^® Index Plus.

Turkey, Argentina, and Mexico detracted from Portfolio performance in 2018. Despite our active exposure management, sharp volatility in these countries caused underperformance. Greater-than-benchmark exposure and out-of-benchmark security selection in longer duration bonds in Russia, Indonesia, and South Africa hurt during the second and third quarter weakness. However, these countries recovered in the fourth quarter.

Conversely, the Portfolio’s performance benefited from idiosyncratic alpha from out-of-index frontier markets (e.g., Egypt, Uruguay, Morocco, Uganda, Ghana, and Nigeria) which contributed 130 bps in aggregate. Underweight exposure to Asian economies such as Taiwan, Malaysia, China, and South Korea also helped annual performance as these markets underperformed due to ongoing trade war rhetoric.

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

Lazard Enhanced Opportunities Portfolio

For the year ended December 31, 2018, the Lazard Enhanced Opportunities Portfolio’s Institutional Shares posted a total return of -1.43%, while Open Shares posted a total return of -1.68%, as compared with the 0.65% return for the ICE BofAML U.S. Convertible ex Mandatory^® Index and -7.01% return for the HFRX Global Hedge Fund^® Index.

Annual Report  5

Generally, convertible bond valuations improved markedly, both on a relative and absolute basis, whether measured by implied spread or yield/premium relationships. The repricing of equities also resulted in significant improvement in yields, carry, convexity, and risk-return sets broadly.

Pacing gains for the Portfolio were a richening in selected volatility-sensitive names, and idiosyncratic developments, including bond-for-bond exchanges. Detractors included measured directional biases, and to a lesser degree, a broad-based widening in credit spreads.

The Portfolio uses derivatives, including currency forwards and options, both opportunistically and defensively, for hedging purposes. For the year, the use of derivatives contributed to performance.

Lazard Explorer Total Return Portfolio

For the year ended December 31, 2018, the Lazard Explorer Total Return Portfolio’s Institutional Shares posted a total return of -9.65%, while Open Shares posted a total return of -9.97%, as compared with the -5.15% blended return for the Global Diversified Index.

The Portfolio’s near fully-invested view served the Portfolio well in the second half of 2017, but led it to capture the downside of the emerging markets debt asset class in 2018. The main detractors from absolute performance were the Portfolio’s outright long position in local currencies and bottom-up positioning in external sovereign credit. While we reduced exposure to local debt early in the year, the Portfolio’s diversified long positions in emerging markets currencies detracted significantly from absolute performance amid sharp spot depreciation in emerging markets currencies. Within this allocation, long positions in the Brazilian real, Russian ruble, and South African rand were among the most notable detractors.

The other main detractor was the Portfolio’s more idiosyncratic exposure to US dollar-denominated sovereign credits, which was mainly focused on high-yield countries. On a bottom-up basis, long positions in Argentina, Venezuela, and Egypt were key detractors.

6  Annual Report

These losses were partially offset by long positions in Mozambique—which was beneficial due to positive developments in the country’s restructuring process—and Brazil. The Portfolio’s idiosyncratic local rates positions also contributed to absolute returns, particularly in Brazil and South Africa.

The Portfolio management team uses currency forwards, options, credit default swaps, and interest rate swaps both opportunistically, for direct currency exposure, and defensively, for hedging purposes. For the year, the use of derivatives detracted from the Portfolio’s 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 DST Asset Manager Solutions, Inc., the Fund’s transfer and dividend disbursing agent (“DST”); 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, 2018, except as otherwise indicated; 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  7

The Lazard Funds, Inc. Performance Overviews (unaudited)

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, 2018

	One	Since
	Year	Inception	†
Institutional Shares**	–5.79%	–1.94%
Open Shares**	–5.97%	–2.20%
JPMorgan Emerging Local Markets Index Plus	–3.33%	–1.06%

† The inception date for the Portfolio was April 30, 2014.

8  Annual Report

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, 2018

	One	Since
	Year	Inception	†
Institutional Shares**	–1.43%	1.46%
Open Shares**	–1.68%	1.20%
ICE BofAML U.S. Convertible ex Mandatory Index	0.65%	6.05%
HFRX Global Hedge Fund Index	–7.01%	–0.67%

† The inception date for the Portfolio was December 31, 2014.

Annual Report  9

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, 2018

	One	Five	Since
	Year	Years	Inception	†
Institutional Shares**	–9.65%	–0.44%	–0.33%
Open Shares**	–9.97%	–0.78%	–0.66%
JPMorgan EMBI Global Diversified Index	–4.26%	4.80%	4.86%
JPMorgan GBI-EM Global Diversified Index	–6.21%	–0.96%	–1.23%
Global Diversified Index	–5.15%	1.95%	1.84%

† The inception date for the Portfolio was June 28, 2013.

Notes to Performance Overviews:

*	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 DST; 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 US Generally Accepted Accounting Principles, if any, and may differ from amounts reported in the financial highlights. For Institutional Shares and Open Shares of Lazard Enhanced Opportunities Portfolio, a one-time voluntary reimbursement by the administrator increased the total return ratio by 0.49% for year ended December 31, 2017.
	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.

10  Annual Report

	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 indices are unmanaged, have no fees or costs and are not available for investment.
	The JPMorgan Emerging Local Markets Index Plus tracks total returns for local currency-denominated money market instruments.
	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 JPMorgan EMBI Global Diversified Index is a uniquely weighted version of the EMBI Global. Risks associated with the securities comprising this index include fixed income and emerging markets. The JPMorgan GBI-EM Global Diversified Index is a uniquely weighted version of the GBI-EM Global. Risks include fixed income, emerging markets and derivatives. 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 performance of Institutional Shares and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report  11

The Lazard Funds, Inc.

Information About Your Portfolio’s Expenses (unaudited)

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, 2018 through December 31, 2018 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.

12  Annual Report

					Expenses			Annualized
	Beginning		Ending		Paid During			Expense Ratio
	Account		Account		Period		*	During Period
	Value		Value		7/1/18 -			7/1/18 -
Portfolio	7/1/18		12/31/18		12/31/18			12/31/18
Emerging Markets Income
Institutional Shares
Actual	$	1,000.00	$	989.90		$4.51			0.90	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.67		$4.58			0.90	%
Open Shares
Actual	$	1,000.00	$	988.50		$5.26			1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91		$5.35			1.05	%
Enhanced Opportunities†
Institutional Shares
Actual	$	1,000.00	$	977.80	$	12.76			2.56	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,012.30	$	12.98			2.56	%
Open Shares
Actual	$	1,000.00	$	976.40	$	14.05			2.82	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,010.99	$	14.29			2.82	%
Explorer Total Return
Institutional Shares
Actual	$	1,000.00	$	971.90		$5.72			1.15	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.41		$5.85			1.15	%
Open Shares
Actual	$	1,000.00	$	969.80		$7.00			1.41	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.10		$7.17			1.41	%

*	Expenses are equal to the annualized expenses ratio, net of expense 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 broker expense and dividend expense on securities sold short.

Annual Report  13

The Lazard Funds, Inc. Portfolio Holdings Presented by Asset Class/Sector and Region December 31, 2018

	Lazard Enhanced
	Opportunities Portfolio
Asset Class/Sector		Long	*	Short	†
Equity
Communication Services		5.0	%	–4.9	%
Consumer Discretionary		5.3		–5.5
Consumer Staples		0.7		–0.9
Energy		5.0		–2.7
Financials		11.7		–4.3
Health Care		16.8		–21.6
Industrials		4.2		–3.6
Information Technology		25.3		–37.9
Materials		5.3		–3.7
Real Estate		1.2		–6.4
Utilities		1.9		–1.8
Exchange-Traded Funds		5.8		–6.7
Short-Term Investments		11.8		—
Total Investments		100.0	%	–100.0	%

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

	Lazard				Lazard
	Emerging				Explorer
	Markets Income				Total Return
Asset Class/Region*		Portfolio			Portfolio
Fixed Income
Africa			11.5	%		20.2	%
Asia			3.4			22.6
Europe			9.4			16.2
North America			65.7			6.8
South America			1.8			33.6
Purchased Options			—			0.5
Short-Term Investments			8.2			0.1
Total Investments			100.0	%		100.0	%

* Represents percentage of total investments.

14  Annual Report

The Lazard Funds, Inc. Portfolios of Investments
December 31, 2018

		Principal
	Security	Amount		Fair
Description	Currency	(000)		Value
Lazard Emerging Markets Income Portfolio
Foreign Government Obligations  |  30.9%
Brazil  |  1.8%
Brazil NTN-F, 10.000%, 01/01/27	BRL		348	$	93,863
Dominican Republic  |  1.0%
Dominican Republic Bonds, 10.500%, 04/07/23 (#)	DOP		2,600		51,864
Egypt  |  8.5%
Egypt Treasury Bills:
0.000%, 06/25/19	EGP		1,700		86,762
0.000%, 08/20/19	EGP		7,100		352,007
					438,769
Malaysia  |  3.5%
Malaysia Government Bonds, 3.654%, 10/31/19	MYR		750		181,742
Mexico  |  6.6%
Mexican Bonos:
6.500%, 06/10/21	MXN		5,970		290,309
5.750%, 03/05/26	MXN		1,180		50,776
					341,085
Russia  |  6.1%
Russia Government Bonds - OFZ:
7.600%, 04/14/21	RUB		18,410		262,721
7.050%, 01/19/28	RUB		4,000		52,122
					314,843
South Africa  |  3.4%
Republic of South Africa:
6.750%, 03/31/21	ZAR		730		50,172
10.500%, 12/21/26	ZAR		880		66,695
8.000%, 01/31/30	ZAR		940		59,088
					175,955
Total Foreign Government Obligations (Cost $1,745,021)					1,598,121

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

Annual Report  15

		Principal
	Security	Amount		Fair
Description	Currency	(000)		Value
Lazard Emerging Markets Income Portfolio (continued)
Supranational Bonds  |  3.6%
European Investment Bank, 7.200%, 07/09/19 (#) (Cost $209,382)	IDR		2,700,000	$	185,451
US Treasury Securities  |  60.3%
US Treasury Notes:
1.125%, 01/15/19	USD		200		199,917
1.500%, 01/31/19	USD		200		199,867
2.750%, 02/15/19	USD		200		200,085
1.375%, 02/28/19	USD		200		199,675
1.500%, 02/28/19	USD		200		199,714
1.000%, 03/15/19	USD		250		249,299
1.250%, 03/31/19	USD		150		149,572
1.500%, 03/31/19	USD		250		249,435
0.875%, 04/15/19	USD		200		199,121
1.625%, 04/30/19	USD		150		149,578
3.125%, 05/15/19	USD		250		250,557
1.250%, 05/31/19	USD		300		298,465
0.875%, 06/15/19	USD		165		163,795
1.625%, 06/30/19	USD		200		199,094
1.625%, 07/31/19	USD		210		208,876
Total US Treasury Securities (Cost $3,117,260)					3,117,050

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

16  Annual Report

			Fair
Description	Shares		Value
Lazard Emerging Markets Income Portfolio (continued)
Short-Term Investments  |  8.5%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $438,410)		438,410	$	438,410
Total Investments  |  103.3% (Cost $5,510,073) (»)			$	5,339,032
Liabilities in Excess of Cash and Other Assets  |  (3.3)%				(169,528	)
Net Assets  |  100.0%			$	5,169,504

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

Annual Report  17

Lazard Emerging Markets Income Portfolio (continued)

Forward Currency Contracts open at December 31, 2018:

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
ARS	684,675	USD	17,000	BNP	01/25/19	$	633	$	—
ARS	1,065,220	USD	26,000	CIT	01/10/19		2,009		—
ARS	1,070,550	USD	27,000	CIT	01/10/19		1,149		—
ARS	2,364,000	USD	60,000	HSB	01/18/19		1,471		—
BRL	260,630	USD	67,000	CIT	01/11/19		199		—
BRL	316,022	USD	81,000	SCB	01/11/19		481		—
BRL	188,736	USD	48,000	SCB	01/18/19		647		—
CLP	14,852,420	USD	22,000	BNP	01/30/19		—		583
CLP	35,755,200	USD	52,000	BNP	02/15/19		—		433
CNY	2,493,973	USD	359,000	HSB	01/11/19		4,434		—
COP	146,634,750	USD	45,000	CIT	01/11/19		134		—
CZK	6,446,000	USD	283,701	HSB	02/07/19		3,578		—
DOP	1,261,383	USD	25,000	CIT	03/13/19		—		205
GHS	670,560	USD	132,000	SCB	01/22/19		3,897		—
HUF	62,670,000	USD	222,119	CIT	02/22/19		2,309		—
IDR	874,755,000	USD	63,000	CIT	01/07/19		—		2,258
IDR	796,000,000	USD	50,000	HSB	09/20/19		3,281		—
ILS	175,000	USD	47,306	CIT	01/10/19		—		480
ILS	199,000	USD	53,949	CIT	01/10/19		—		700
ILS	188,000	USD	50,699	CIT	01/11/19		—		390
INR	164,000	USD	2,278	HSB	01/09/19		79		—
INR	25,682,670	USD	351,000	HSB	01/09/19		18,046		—
KRW	395,292,500	USD	355,000	HSB	01/10/19		30		—
KZT	57,964,400	USD	150,167	HSB	06/19/19		—		4,235
KZT	19,252,500	USD	51,000	SCB	03/19/19		—		1,617
MXN	1,340,000	USD	64,810	HSB	01/11/19		3,308		—
PEN	154,606	USD	46,000	CIT	02/15/19		—		177
PHP	2,816,840	USD	52,000	HSB	01/25/19		1,627		—
PHP	4,587,945	USD	87,000	SCB	01/25/19		345		—
PLN	917,000	USD	243,034	BNP	02/07/19		2,162		—
RON	127,000	USD	30,940	CIT	01/28/19		308		—
RON	316,101	USD	78,917	CIT	03/15/19		—		1,211
RUB	3,566,750	USD	53,628	SCB	01/11/19		—		2,451
SGD	438,000	USD	320,615	HSB	01/10/19		801		—
THB	1,451,000	USD	43,966	CIT	01/18/19		603		—

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

18  Annual Report

Lazard Emerging Markets Income Portfolio (concluded)

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
THB	681,000	USD	20,775	HSB	02/01/19		$	148		$	—
THB	6,027,000	USD	183,941	SCB	02/15/19			1,305			—
TRY	671,000	USD	123,035	CIT	01/25/19			2,152			—
USD	25,190	CAD	33,000	HSB	01/09/19			1,013			—
USD	21,000	IDR	320,250,000	CIT	01/07/19			—			1,238
USD	57,507	IDR	859,676,000	SCB	01/07/19			—			2,188
USD	49,892	ILS	188,000	BNP	01/10/19			—			413
USD	24,000	RON	90,433	CIT	03/15/19			1,769			—
USD	59,911	RON	225,668	CIT	03/15/19			4,437			—
USD	90,612	RUB	6,027,559	SCB	01/11/19			4,126			—
USD	51,092	TRY	282,000	SCB	01/25/19			—			1,520
USD	51,000	UYU	1,658,010	HSB	01/16/19			—			19
USD	133,278	ZAR	1,915,000	SCB	01/14/19			343			—
UYU	1,652,500	USD	50,000	CIT	01/16/19			850			—
UYU	1,685,268	USD	52,000	HSB	02/08/19			—			352
ZAR	693,000	USD	50,027	CIT	02/08/19			—			2,068
Total gross unrealized appreciation/depreciation on Forward Currency Contracts							$	67,674		$	22,538

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

Annual Report  19

Description	Shares		Fair Value
Lazard Enhanced Opportunities Portfolio
Common Stocks  |  0.5%
Canada  |  0.1%
Element Fleet Management Corp. (±)		4,418	$	22,362
United States  |  0.4%
Illumina, Inc. (*), (±)		179		53,688
Ligand Pharmaceuticals, Inc. (*), (±)		12		1,628
				55,316
Total Common Stocks (Cost $78,544)				77,678
Exchange-Traded Funds  |  7.5%
iShares MSCI Emerging Markets ETF (±)		6,043		236,039
iShares Russell 2000 ETF (±)		6,902		924,178
SPDR EURO STOXX 50 ETF (±)		1,593		52,999
Total Exchange-Traded Funds (Cost $1,239,834)				1,213,216

Description	Security Currency	Principal Amount (000)		Fair Value
Convertible Corporate Bonds  |  106.7%
Argentina  |  1.2%
MercadoLibre, Inc., 2.000%, 08/15/28 (±)	USD		215	$	193,500
Bermuda  |  1.3%
Golar LNG, Ltd., 2.750%, 02/15/22 (±)	USD		143		131,620
Teekay Corp., 5.000%, 01/15/23 (±)	USD		110		72,853
					204,473

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

20  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
Canada  |  5.7%
Canopy Growth Corp., 4.250%, 07/15/23 (#), (±)	CAD		292	$	239,020
Element Fleet Management Corp., 5.125%, 06/30/19 (±)	CAD		241		175,749
First Majestic Silver Corp., 1.875%, 03/01/23 (#), (±)	USD		148		133,022
SSR Mining, Inc., 2.875%, 02/01/33 (±)	USD		190		189,050
Tilray, Inc., 5.000%, 10/01/23 (±)	USD		274		194,211
					931,052
China  |  4.2%
Ctrip.com International, Ltd., 1.000%, 07/01/20 (±)	USD		69		63,904
GDS Holdings, Ltd., 2.000%, 06/01/25 (#), (±)	USD		140		100,590
Huazhu Group, Ltd., 0.375%, 11/01/22 (±)	USD		215		210,028
iQIYI, Inc., 3.750%, 12/01/23 (#), (±)	USD		266		253,926
Momo, Inc., 1.250%, 07/01/25 (#), (±)	USD		69		53,475
					681,923
Japan  |  3.0%
Kyushu Electric Power Co., Inc., 0.000%, 03/31/20 (±)	JPY		10,000		94,112
Mirait Holdings Corp., 0.000%, 12/30/21 (±)	JPY		10,000		112,879
Mitsubishi Chemical Holdings Corp., 0.000%, 03/30/22 (±)	JPY		10,000		91,431
Nipro Corp., 0.000%, 01/29/21 (±)	JPY		10,000		100,707
The Chugoku Electric Power Co., Inc., 0.000%, 01/24/20 (±)	JPY		10,000		95,036
					494,165

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

Annual Report  21

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
Mexico  |  2.8%
Cemex SAB de CV, 3.720%, 03/15/20 (±)	USD		470	$	457,806
Monaco  |  0.4%
Endeavour Mining Corp., 3.000%, 02/15/23 (#), (±)	USD		62		60,022
Netherlands  |  1.8%
Fugro NV:
4.000%, 10/26/21 (±)	EUR		200		189,278
4.500%, 11/02/24 (±)	EUR		100		97,389
					286,667
Thailand  |  0.7%
Sea, Ltd., 2.250%, 07/01/23 (#), (±)	USD		138		119,649
United States  |  85.6%
Advanced Micro Devices, Inc., 2.125%, 09/01/26 (±)	USD		141		342,454
Akamai Technologies, Inc., 0.125%, 05/01/25 (±)	USD		100		91,705
Alder Biopharmaceuticals, Inc., 2.500%, 02/01/25 (±)	USD		184		146,774
Allscripts Healthcare Solutions, Inc., 1.250%, 07/01/20 (±)	USD		166		159,796
Alteryx, Inc., 0.500%, 06/01/23 (±)	USD		139		206,767
Amicus Therapeutics, Inc., 3.000%, 12/15/23 (#), (±)	USD		191		333,056
Atlas Air Worldwide Holdings, Inc., 1.875%, 06/01/24 (±)	USD		175		166,822
Atlassian, Inc., 0.625%, 05/01/23 (±)	USD		180		228,196
Avaya Holdings Corp., 2.250%, 06/15/23 (±)	USD		129		110,056

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

22  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
Benefitfocus, Inc., 1.250%, 12/15/23 (±)	USD		88	$	93,471
Boingo Wireless, Inc., 1.000%, 10/01/23 (±)	USD		137		115,820
CalAmp Corp.:
1.625%, 05/15/20 (±)	USD		88		83,714
2.000%, 08/01/25 (#), (±)	USD		104		79,950
Carbonite, Inc., 2.500%, 04/01/22 (±)	USD		146		173,927
Chegg, Inc., 0.250%, 05/15/23 (#), (±)	USD		176		212,759
Cleveland-Cliffs, Inc., 1.500%, 01/15/25 (±)	USD		175		194,634
Colony Capital, Inc., 3.875%, 01/15/21 (±)	USD		163		150,788
Cowen, Inc., 3.000%, 12/15/22 (±)	USD		121		121,900
Cree, Inc., 0.875%, 09/01/23 (±)	USD		97		93,854
DexCom, Inc., 0.750%, 12/01/23 (±)	USD		208		210,091
Electronics For Imaging, Inc., 2.250%, 11/15/23 (±)	USD		101		97,945
Encore Capital Group, Inc.:
2.875%, 03/15/21 (±)	USD		220		182,632
3.250%, 03/15/22 (±)	USD		308		251,761
Evolent Health, Inc.:
2.000%, 12/01/21 (±)	USD		123		136,392
1.500%, 10/15/25 (±)	USD		87		79,952
EZCORP, Inc.:
2.125%, 06/15/19 (±)	USD		381		370,895
2.375%, 05/01/25 (±)	USD		137		103,881
Five9, Inc., 0.125%, 05/01/23 (±)	USD		138		168,166
Forestar Group, Inc., 3.750%, 03/01/20 (±)	USD		112		108,679

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

Annual Report   23

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
FTI Consulting, Inc., 2.000%, 08/15/23 (±)	USD		104	$	99,125
Green Plains, Inc.:
3.250%, 10/01/19 (±)	USD		269		267,601
4.125%, 09/01/22 (±)	USD		152		133,950
HC2 Holdings, Inc., 7.500%, 06/01/22 (±)	USD		27		22,890
Herbalife Nutrition, Ltd., 2.625%, 03/15/24 (±)	USD		139		155,913
Hope Bancorp, Inc., 2.000%, 05/15/38 (#), (±)	USD		140		117,417
IH Merger Sub LLC, 3.000%, 07/01/19 (±)	USD		476		529,599
Infinera Corp., 2.125%, 09/01/24 (±)	USD		134		96,989
Innoviva, Inc., 2.125%, 01/15/23 (±)	USD		172		185,867
Inphi Corp., 0.750%, 09/01/21 (±)	USD		229		211,697
Insulet Corp., 1.375%, 11/15/24 (±)	USD		68		72,217
Ionis Pharmaceuticals, Inc., 1.000%, 11/15/21 (±)	USD		180		192,619
Karyopharm Therapeutics, Inc., 3.000%, 10/15/25 (±)	USD		138		120,640
KBR, Inc., 2.500%, 11/01/23 (±)	USD		152		135,135
Knowles Corp., 3.250%, 11/01/21 (±)	USD		153		157,661
Liberty Interactive LLC:
4.000%, 11/15/29 (±)	USD		266		179,498
3.750%, 02/15/30 (±)	USD		185		121,853
Liberty Media Corp., 2.250%, 12/01/48 (±)	USD		207		204,301
Ligand Pharmaceuticals, Inc., 0.750%, 05/15/23 (±)	USD		105		92,978

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

24   Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
Microchip Technology, Inc., 1.625%, 02/15/27 (±)	USD		274	$	267,641
MINDBODY, Inc., 0.375%, 06/01/23 (±)	USD		146		143,868
MongoDB, Inc., 0.750%, 06/15/24 (#), (±)	USD		138		189,944
Navistar International Corp., 4.750%, 04/15/19 (±)	USD		100		99,749
Neurocrine Biosciences, Inc., 2.250%, 05/15/24 (±)	USD		219		261,427
NII Holdings, Inc., 4.250%, 08/15/23 (±)	USD		219		220,369
NRG Energy, Inc., 2.750%, 06/01/48 (±)	USD		201		216,453
Nutanix, Inc., 0.000%, 01/15/23 (±)	USD		74		80,849
Okta, Inc., 0.250%, 02/15/23 (±)	USD		183		266,625
ON Semiconductor Corp., 1.625%, 10/15/23 (±)	USD		184		197,469
OSI Systems, Inc., 1.250%, 09/01/22 (±)	USD		143		132,552
Pacira Pharmaceuticals, Inc., 2.375%, 04/01/22 (±)	USD		153		151,757
Palo Alto Networks, Inc., 0.750%, 07/01/23 (±)	USD		266		263,071
Patrick Industries, Inc., 1.000%, 02/01/23 (±)	USD		141		106,178
PDL BioPharma, Inc., 2.750%, 12/01/21 (±)	USD		174		176,207
Perficient, Inc., 2.375%, 09/15/23 (#), (±)	USD		138		122,638
PRA Group, Inc.:
3.000%, 08/01/20 (±)	USD		178		163,135
3.500%, 06/01/23 (±)	USD		189		159,223
PROS Holdings, Inc., 2.000%, 06/01/47 (±)	USD		188		174,444

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

Annual Report  25

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
Radius Health, Inc., 3.000%, 09/01/24 (±)	USD		171	$	131,456
Rapid7, Inc., 1.250%, 08/01/23 (±)	USD		175		177,263
Redwood Trust, Inc., 4.750%, 08/15/23 (±)	USD		80		73,297
Retrophin, Inc., 2.500%, 09/15/25 (±)	USD		139		124,548
RWT Holdings, Inc., 5.625%, 11/15/19 (±)	USD		198		198,867
SEACOR Holdings, Inc., 3.000%, 11/15/28 (±)	USD		180		166,145
Servicenow, Inc., 0.000%, 06/01/22 (±)	USD		88		122,829
Splunk, Inc., 0.500%, 09/15/23 (#), (±)	USD		131		130,130
Square, Inc., 0.500%, 05/15/23 (±)	USD		194		201,877
Synaptics, Inc., 0.500%, 06/15/22 (±)	USD		73		63,970
Team, Inc., 5.000%, 08/01/23 (±)	USD		142		141,156
TerraVia Holdings, Inc., 5.000%, 10/01/19 («)	USD		216		4,320
The Medicines Co.:
2.500%, 01/15/22 (±)	USD		124		106,385
3.500%, 01/15/24 (±)	USD		124		122,480
Twilio, Inc., 0.250%, 06/01/23 (±)	USD		145		206,992
Vishay Intertechnology, Inc., 2.250%, 06/15/25 (±)	USD		194		171,611
Wayfair, Inc., 1.125%, 11/01/24 (±)	USD		131		133,049

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

26  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
Western Digital Corp., 1.500%, 02/01/24 (±)	USD		145	$	117,508
Wright Medical Group, Inc., 1.625%, 06/15/23 (±)	USD		162		164,971
Zillow Group, Inc., 2.000%, 12/01/21 (±)	USD		87		84,540
					13,951,780
Total Convertible Corporate Bonds
(Cost $18,606,982)					17,381,037

Description	Counterparty	Number of Contracts	Exercise Price		Notional Amount		Fair Value
Purchased Options  |  0.0%
Call
Alder Biopharmaceuticals, Inc. 15, Expires 04/18/19	RBS	1	$	15.00	$	100	$	30
Alder Biopharmaceuticals, Inc. 15, Expires 07/19/19	RBS	13		15.00		1,300		650
Allegheny Technologies, Inc. 27.5, Expires 04/18/19	RBS	17		27.50		1,700		799
Amicus Therapeutics, Inc. 13, Expires 04/18/19	RBS	9		13.00		900		225
Atlas Air Worldwide Holdings, Inc. 55, Expires 05/17/19	RBS	9		55.00		900		1,080
Cemex SAB de CV 16, Expires 01/18/19	RBS	53		16.00		5,300		53
Cleveland-Cliffs, Inc. 10, Expires 04/18/19	RBS	26		10.00		2,600		832

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

Annual Report  27

Description	Counterparty	Number of Contracts	Exercise Price		Notional Amount		Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
Ctrip.com International, Ltd. 35, Expires 06/21/19	RBS	9	$	35.00	$	900	$	720
Evolent Health, Inc. 25, Expires 01/18/19	RBS	4		25.00		400		120
First Majestic Silver Corp. 7, Expires 04/18/19	RBS	35		7.00		3,500		1,400
HubSpot, Inc. 140, Expires 01/18/19	RBS	1		140.00		100		115
iShares MSCI Japan ETF 55, Expires 06/21/19	RBS	63		55.00		6,300		6,174
NII Holdings, Inc. 7.5, Expires 03/15/19	RBS	4		7.50		400		188
NRG Energy, Inc. 45, Expires 01/18/19	RBS	9		45.00		900		45
Rapid7, Inc. 35, Expires 01/18/19	RBS	2		35.00		200		60
Sea, Ltd. 15, Expires 01/18/19	RBS	18		15.00		1,800		90
Square, Inc. 70, Expires 01/18/19	RBS	2		70.00		200		34
Put
iShares 7-10 Year Treasury Bond ETF 103, Expires 03/15/19	RBS	22		103.00		2,200		1,254
iShares Russell 2000 ETF 128, Expires 02/15/19	RBS	43		128.00		4,300		11,696
Total Purchased Options (Cost $36,133)								25,565

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

28  Annual Report

Description	Shares			Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
Short-Term Investments  |  15.4%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $2,500,469)		2,500,469		$	2,500,469
Total Investments excluding Securities Sold Short  |  130.1% (Cost $22,461,962)					21,197,965
Securities Sold Short  |  (39.9)%
Common Stocks  |  (37.2)%
Argentina  |  (0.5)%
MercadoLibre, Inc.		(293	)		(85,805	)
Bermuda  |  (0.2)%
Golar LNG, Ltd.		(1,118	)		(24,328	)
Teekay Corp.		(4,547	)		(15,187	)
					(39,515	)
Canada  |  (1.4)%
Canopy Growth Corp.		(4,017	)		(107,722	)
First Majestic Silver Corp.		(9,890	)		(58,252	)
Tilray, Inc.		(764	)		(53,893	)
					(219,867	)
China  |  (1.1)%
GDS Holdings, Ltd. ADR		(1,953	)		(45,095	)
Huazhu Group, Ltd. ADR		(1,990	)		(56,974	)
iQIYI, Inc. ADR		(4,267	)		(63,450	)
Momo, Inc. Sponsored ADR		(592	)		(14,060	)
					(179,579	)
Japan  |  (1.2)%
Kyushu Electric Power Co., Inc.		(2,700	)		(32,105	)
Mirait Holdings Corp.		(4,900	)		(71,691	)
Mitsubishi Chemical Holdings Corp.		(2,200	)		(16,551	)

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

Annual Report  29

Description	Shares			Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
Nipro Corp.		(3,000	)	$	(36,629	)
The Chugoku Electric Power Co., Inc.		(3,100	)		(40,194	)
					(197,170	)
Mexico  |  (0.1)%
Cemex SAB de CV Sponsored ADR		(2,270	)		(10,941	)
Monaco  |  (0.1)%
Endeavour Mining Corp.		(1,473	)		(24,146	)
Netherlands  |  (0.4)%
Fugro NV		(8,052	)		(69,138	)
Thailand  |  (0.3)%
Sea, Ltd. ADR		(4,655	)		(52,695	)
United Kingdom  |  (1.0)%
Atlassian Corp. PLC, Class A		(1,779	)		(158,295	)
United States  |  (30.9)%
Advanced Micro Devices, Inc.		(16,383	)		(302,430	)
Akamai Technologies, Inc.		(421	)		(25,715	)
Alder Biopharmaceuticals, Inc.		(5,636	)		(57,769	)
Allscripts Healthcare Solutions, Inc.		(1,253	)		(12,079	)
Alteryx, Inc., Class A		(2,352	)		(139,874	)
Amicus Therapeutics, Inc.		(26,792	)		(256,667	)
Atlas Air Worldwide Holdings, Inc.		(788	)		(33,246	)
Avaya Holdings Corp.		(2,122	)		(30,896	)
Benefitfocus, Inc.		(1,095	)		(50,063	)
Boingo Wireless, Inc.		(1,789	)		(36,800	)
CalAmp Corp.		(1,368	)		(17,798	)
Carbonite, Inc.		(3,616	)		(91,340	)
Chegg, Inc.		(4,974	)		(141,361	)
Cleveland-Cliffs, Inc.		(16,907	)		(130,015	)
Cowen, Inc.		(4,392	)		(58,589	)
Cree, Inc.		(1,030	)		(44,058	)
DexCom, Inc.		(814	)		(97,517	)

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

30  Annual Report

Description	Shares			Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
Electronics For Imaging, Inc.		(1,687	)	$	(41,838	)
Encore Capital Group, Inc.		(3,720	)		(87,420	)
Evolent Health, Inc., Class A		(3,685	)		(73,516	)
EZCORP, Inc. Class A		(5,679	)		(43,899	)
Five9, Inc.		(2,345	)		(102,523	)
Green Plains, Inc.		(4,962	)		(65,052	)
HC2 Holdings, Inc.		(2,752	)		(7,265	)
Herbalife Nutrition, Ltd.		(985	)		(58,066	)
Hope Bancorp, Inc.		(840	)		(9,962	)
Infinera Corp.		(7,998	)		(31,912	)
Innoviva, Inc.		(4,924	)		(85,924	)
Inphi Corp.		(584	)		(18,776	)
Insulet Corp.		(478	)		(37,915	)
Invitation Homes, Inc. REIT		(20,892	)		(419,511	)
Ionis Pharmaceuticals, Inc.		(823	)		(44,491	)
Karyopharm Therapeutics, Inc.		(5,240	)		(49,099	)
KBR, Inc.		(2,974	)		(45,145	)
Knowles Corp.		(4,547	)		(60,521	)
Live Nation Entertainment, Inc.		(469	)		(23,098	)
Microchip Technology, Inc.		(2,529	)		(181,886	)
MINDBODY, Inc., Class A		(983	)		(35,781	)
MongoDB, Inc.		(1,591	)		(133,230	)
Neurocrine Biosciences, Inc.		(1,949	)		(139,178	)
NII Holdings, Inc.		(24,603	)		(108,499	)
NRG Energy, Inc.		(1,082	)		(42,847	)
Nutanix, Inc., Class A		(1,065	)		(44,293	)
Okta, Inc.		(3,118	)		(198,928	)
ON Semiconductor Corp.		(2,629	)		(43,405	)
OSI Systems, Inc.		(432	)		(31,666	)
Pacira Pharmaceuticals, Inc.		(1,258	)		(54,119	)
Palo Alto Networks, Inc.		(403	)		(75,905	)
Patrick Industries, Inc.		(507	)		(15,012	)
PDL BioPharma, Inc.		(28,417	)		(82,409	)
Perficient, Inc.		(1,867	)		(41,559	)
PRA Group, Inc.		(2,455	)		(59,828	)
PROS Holdings, Inc.		(1,066	)		(33,472	)

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

Annual Report  31

Description	Shares			Fair Value
Lazard Enhanced Opportunities Portfolio (continued)
Radius Health, Inc.		(2,145	)	$	(35,371	)
Rapid7, Inc.		(2,447	)		(76,249	)
Redwood Trust, Inc. REIT		(1,308	)		(19,712	)
Retrophin, Inc.		(1,834	)		(41,504	)
SEACOR Holdings, Inc.		(83	)		(3,071	)
ServiceNow, Inc.		(507	)		(90,271	)
Splunk, Inc.		(403	)		(42,255	)
Square, Inc. Class A		(1,611	)		(90,361	)
Synaptics, Inc.		(417	)		(15,517	)
Team, Inc.		(4,129	)		(60,490	)
The Medicines Co.		(4,953	)		(94,800	)
Twilio, Inc., Class A		(1,693	)		(151,185	)
Vishay Intertechnology, Inc.		(1,182	)		(21,288	)
Wayfair, Inc., Class A		(829	)		(74,676	)
Wright Medical Group NV		(1,484	)		(40,395	)
Zillow Group, Inc. Class C		(742	)		(23,433	)
					(5,034,745	)
Total Common Stocks (Proceeds $6,765,249)					(6,071,896	)
Exchange-Traded Funds  |  (2.7)%
iShares 7-10 Year Treasury Bond ETF (Proceeds $425,287)		(4,203	)		(437,953	)
Total Securities Sold Short (Proceeds $7,190,536)					(6,509,849	)
Total Investments  |  90.2% (Cost and short proceeds $15,271,426) (»)				$	14,688,116
Cash and Other Assets in Excess of Liabilities  |  9.8%					1,600,437
Net Assets  |  100.0%				$	16,288,553

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

32  Annual Report

Lazard Enhanced Opportunities Portfolio (concluded)

Forward Currency Contracts open at December 31, 2018:

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
USD	84,398	CAD	115,000	SSB	03/19/19		$	12		$	—
USD	233,530	CAD	312,000	SSB	03/19/19			4,586			—
USD	258,541	EUR	227,000	SSB	03/19/19			—			3,199
USD	249,512	JPY	28,057,000	SSB	03/19/19			—			7,940
Total gross unrealized appreciation/depreciation on Forward Currency Contracts							$	4,598		$	11,139

Written Options open at December 31, 2018:

Description	Counterparty	Number of Contracts		Strike Price	Expiration Date	Notional Amount	Premiums			Fair Value
Put
Evolent Health, Inc. 22.5	RBS		2	$ 22.50	01/18/19	$    200		$	295		$	(540	)
HubSpot, Inc. 125	RBS		1	125.00	01/18/19	100			460			(470	)
iShares Russell 2000 ETF 120	RBS		43	120.00	02/15/19	4,300			7,974			(5,160	)
NII Holdings, Inc. 5	RBS		4	5.00	03/15/19	400			435			(560	)
NRG Energy, Inc. 40	RBS		9	40.00	01/18/19	900			436			(1,395	)
Rapid7, Inc. 25	RBS		2	25.00	02/15/19	200			179			(130	)
Sea, Ltd. 12.5	RBS		9	12.50	02/15/19	900			960			(1,395	)
Square, Inc. 60	RBS		2	60.00	01/18/19	200			531			(1,100	)
Zillow Group, Inc. 35	RBS		1	35.00	01/18/19	100			157			(403	)
Total Written Options			73					$	11,427		$	(11,153	)

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

Annual Report  33

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio
Corporate Bonds | 19.7%
Argentina | 1.3%
Generacion Mediterranea SA, 9.625%, 07/27/23	USD		825	$	697,125
Genneia SA, 8.750%, 01/20/22 (#)	USD		330		297,412
Rio Energy SA, 6.875%, 02/01/25 (#)	USD		575		419,713
					1,414,250
Bangladesh | 0.6%
Banglalink Digital Communications, Ltd., 8.625%, 05/06/19	USD		650		649,187
Belarus | 0.4%
Eurotorg LLC Via Bonitron DAC, 8.750%, 10/30/22 (#)	USD		450		450,396
Brazil | 2.4%
Cemig Geracao e Transmissao SA, 9.250%, 12/05/24 (#)	USD		775		822,469
Itau Unibanco Holding SA, 6.125%, 12/12/22 (#), (§), (¶)	USD		475		444,125
Light Servicos de Eletricidade SA/Light Energia SA:
7.250%, 05/03/23	USD		425		406,406
7.250%, 05/03/23 (#)	USD		400		382,500
Petrobras Global Finance BV, 8.750%, 05/23/26	USD		175		196,262
Terraform Global Operating LLC, 6.125%, 03/01/26 (#)	USD		400		372,000
					2,623,762
Chile | 1.1%
AES Gener SA, 8.375%, 12/18/73 (§)	USD		600		598,500

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

34  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Guanay Finance, Ltd., 6.000%, 12/15/20	USD		240	$	239,837
VTR Finance BV, 6.875%, 01/15/24	USD		359		358,551
					1,196,888
China | 0.0%
G3 Exploration, Ltd.:
10.000%, 11/20/18 (#), («)	USD		400		0
0.000%, 12/31/99 («)	USD		60		0
					0
Colombia | 1.1%
AI Candelaria Spain SLU, 7.500%, 12/15/28 (#)	USD		500		481,935
Gran Tierra Energy International Holdings, Ltd., 6.250%, 02/15/25 (#)	USD		725		674,975
					1,156,910
Georgia | 0.3%
BGEO Group JSC, 6.000%, 07/26/23	USD		350		339,063
Guatemala | 1.1%
Comcel Trust, 6.875%, 02/06/24	USD		1,185		1,210,181
India | 0.7%
Greenko Dutch BV, 5.250%, 07/24/24	USD		400		358,500
Vedanta Resources PLC, 6.375%, 07/30/22	USD		400		357,500
					716,000
Indonesia | 0.6%
Star Energy Geothermal Wayang Windu, Ltd., 6.750%, 04/24/33 (#)	USD		737		673,740

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

Annual Report  35

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Israel | 0.5%
Altice Financing SA, 7.500%, 05/15/26	USD		615	$	559,650
Nigeria | 1.3%
IHS Netherlands Holdco BV:
9.500%, 10/27/21	USD		425		427,365
9.500%, 10/27/21 (#)	USD		725		729,034
Zenith Bank PLC, 6.250%, 04/22/19	USD		250		250,000
					1,406,399
Oman | 0.4%
Oztel Holdings SPC, Ltd., 6.625%, 04/24/28 (#)	USD		450		412,313
Panama | 0.2%
C&W Senior Financing DAC, 7.500%, 10/15/26 (#)	USD		200		192,250
Peru | 1.1%
Hunt Oil Co. of Peru LLC Sucursal Del Peru, 6.375%, 06/01/28 (#)	USD		900		906,075
Inkia Energy, Ltd., 5.875%, 11/09/27 (#)	USD		250		231,250
					1,137,325
Russia | 1.3%
Sberbank of Russia, 4.150%, 03/06/19	USD		1,450		1,442,677
Saudi Arabia | 0.8%
Acwa Power Management And Investments One, Ltd., 5.950%, 12/15/39 (#)	USD		875		817,250

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

36  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Singapore | 0.6%
Puma International Financing SA:
5.125%, 10/06/24	USD		400	$	319,500
5.125%, 10/06/24 (#)	USD		350		279,562
					599,062
South Africa | 0.8%
Liquid Telecommunications Financing PLC, 8.500%, 07/13/22 (#)	USD		850		854,477
South Korea | 0.6%
Heungkuk Life Insurance Co., Ltd., 4.475%, 11/09/47 (§)	USD		200		176,250
SK E&S Co., Ltd., 4.875%, 11/26/19 (§), (¶)	USD		510		499,800
					676,050
Tanzania | 0.6%
HTA Group, Ltd., 9.125%, 03/08/22	USD		625		634,375
Thailand | 0.2%
PTT Exploration & Production Public Co. Ltd., 4.875%, 12/31/99 (§), (¶)	USD		213		211,669
Turkey | 0.9%
Petkim Petrokimya Holding AS, 5.875%, 01/26/23 (#)	USD		350		317,625
Turkiye Halk Bankasi, 4.750%, 06/04/19	USD		240		234,300
Turkiye Is Bankasi AS, 5.000%, 04/30/20	USD		455		441,350
					993,275

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

Annual Report  37

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Zambia | 0.8%
First Quantum Minerals, Ltd.:
7.000%, 02/15/21 (#)	USD		260	$	249,600
7.500%, 04/01/25 (#)	USD		675		556,875
					806,475
Total Corporate Bonds (Cost $22,737,506)					21,173,624
Foreign Government Obligations | 75.0%
Angola | 2.9%
Republic of Angola:
9.500%, 11/12/25	USD		1,760		1,850,200
8.250%, 05/09/28	USD		210		197,925
8.250%, 05/09/28 (#)	USD		540		508,950
9.375%, 05/08/48 (#)	USD		540		506,250
					3,063,325
Argentina | 4.3%
Republic of Argentina:
4.625%, 01/11/23	USD		975		769,031
7.500%, 04/22/26	USD		600		480,750
6.875%, 01/26/27	USD		1,570		1,193,200
5.875%, 01/11/28	USD		1,827		1,308,589
6.625%, 07/06/28	USD		120		88,800
7.625%, 04/22/46	USD		430		310,675
7.125%, 06/28/2117	USD		615		439,725
					4,590,770
Bahrain | 2.7%
Kingdom of Bahrain, 6.125%, 07/05/22	USD		2,890		2,944,187
Brazil | 10.0%
Brazil Letras do Tesouro Nacional:
0.000%, 04/01/19	BRL		11,730		2,980,136
0.000%, 01/01/22	BRL		8,550		1,745,555

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

38  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Brazil NTN-B:
6.000%, 05/15/23	BRL		1,610	$	1,401,397
6.000%, 08/15/50	BRL		710		669,999
Federal Republic of Brazil:
6.000%, 04/07/26	USD		955		1,015,881
4.625%, 01/13/28	USD		1,595		1,534,159
5.000%, 01/27/45	USD		495		432,383
5.625%, 02/21/47	USD		1,065		1,004,827
					10,784,337
Colombia | 2.7%
Republic of Colombia:
3.875%, 04/25/27	USD		1,670		1,593,598
5.000%, 06/15/45	USD		1,355		1,285,556
					2,879,154
Congo | 1.9%
Republic of Congo, 6.000%, 06/30/29 (Ø)	USD		2,657		2,059,438
Costa Rica | 1.7%
Republic of Costa Rica:
4.250%, 01/26/23	USD		220		192,995
5.520%, 08/23/23	USD		770		650,596
4.375%, 04/30/25	USD		285		240,710
7.000%, 04/04/44	USD		315		266,726
7.158%, 03/12/45	USD		530		454,077
					1,805,104
Dominican Republic | 3.7%
Dominican Republic:
7.450%, 04/30/44	USD		1,905		1,972,628
6.850%, 01/27/45	USD		885		868,406
6.500%, 02/15/48 (#)	USD		1,170		1,102,725
					3,943,759
Ecuador | 2.1%
Republic of Ecuador:
10.500%, 03/24/20	USD		770		774,812
10.750%, 03/28/22	USD		1,105		1,111,906

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

Annual Report  39

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
9.650%, 12/13/26	USD		210	$	190,838
7.875%, 01/23/28	USD		210		170,363
					2,247,919
Egypt | 2.6%
Arab Republic of Egypt:
6.588%, 02/21/28	USD		475		423,344
6.588%, 02/21/28 (#)	USD		500		445,625
8.500%, 01/31/47	USD		1,105		995,881
8.500%, 01/31/47 (#)	USD		745		671,431
7.903%, 02/21/48 (#)	USD		310		266,600
					2,802,881
Ghana | 1.5%
Republic of Ghana:
7.625%, 05/16/29 (#)	USD		1,495		1,336,156
8.627%, 06/16/49 (#)	USD		275		238,563
					1,574,719
Hungary | 2.5%
Hungary:
5.375%, 02/21/23	USD		1,330		1,407,971
5.750%, 11/22/23	USD		1,180		1,274,769
					2,682,740
Indonesia | 3.5%
Republic of Indonesia:
2.950%, 01/11/23	USD		370		352,772
5.375%, 10/17/23	USD		220		229,385
5.875%, 01/15/24	USD		180		191,025
4.125%, 01/15/25	USD		1,325		1,300,156
4.750%, 01/08/26	USD		305		308,657
3.850%, 07/18/27	USD		940		891,825
4.100%, 04/24/28	USD		545		527,969
					3,801,789
Kenya | 0.8%
Republic of Kenya, 8.250%, 02/28/48 (#)	USD		1,075		913,750

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

40  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Mozambique | 2.9%
Mozambique International Bonds, 10.500%, 01/18/23	USD		3,278	$	3,064,930
Nigeria | 2.5%
Nigeria Treasury Bills:
0.000%, 01/03/19	NGN		60,680		158,045
0.000%, 01/17/19	NGN		144,830		394,656
0.000%, 01/31/19	NGN		98,000		265,589
Republic of Nigeria:
6.500%, 11/28/27	USD		425		375,594
7.625%, 11/28/47	USD		320		269,200
7.625%, 11/28/47 (#)	USD		1,395		1,173,544
					2,636,628
Oman | 1.7%
Oman Government International Bonds:
4.750%, 06/15/26	USD		760		655,500
5.375%, 03/08/27	USD		820		715,450
5.625%, 01/17/28	USD		460		404,225
					1,775,175
Pakistan | 1.1%
Islamic Republic of Pakistan, 6.875%, 12/05/27	USD		1,355		1,221,194
Paraguay | 2.0%
Republic of Paraguay:
4.700%, 03/27/27	USD		1,190		1,173,637
6.100%, 08/11/44	USD		485		501,975
5.600%, 03/13/48	USD		480		471,000
					2,146,612
Qatar | 2.6%
State of Qatar, 5.103%, 04/23/48	USD		2,625		2,752,969

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

Annual Report  41

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Saudi Arabia | 3.4%
Saudi Government International Bonds:
4.000%, 04/17/25	USD		3,115	$	3,086,965
3.250%, 10/26/26	USD		230		214,935
3.625%, 03/04/28	USD		335		316,994
					3,618,894
Senegal | 0.6%
Republic of Senegal, 6.750%, 03/13/48	USD		755		623,819
South Africa | 3.1%
Republic of South Africa:
7.750%, 02/28/23	ZAR		7,490		513,802
10.500%, 12/21/26	ZAR		26,310		1,994,025
8.250%, 03/31/32	ZAR		13,580		847,912
					3,355,739
Sri Lanka | 1.6%
Republic of Sri Lanka:
6.750%, 04/18/28	USD		60		54,225
6.750%, 04/18/28 (#)	USD		1,865		1,685,494
					1,739,719
Turkey | 6.0%
Republic of Turkey:
7.250%, 12/23/23	USD		1,235		1,265,875
5.750%, 03/22/24	USD		1,015		980,744
4.875%, 10/09/26	USD		580		513,300
6.000%, 03/25/27	USD		1,005		943,444
5.125%, 02/17/28	USD		390		341,250
6.125%, 10/24/28	USD		780		726,375
6.875%, 03/17/36	USD		1,025		959,656
6.000%, 01/14/41	USD		200		169,000
5.750%, 05/11/47	USD		690		559,762
					6,459,406

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

42  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Ukraine | 0.9%
Ukraine Government Bonds:
7.750%, 09/01/20	USD		270	$	260,887
7.750%, 09/01/23	USD		330		296,587
7.750%, 09/01/24	USD		195		171,113
7.375%, 09/25/32	USD		345		274,275
					1,002,862
Uruguay | 1.5%
Republica Orient Uruguay:
5.100%, 06/18/50	USD		625		615,469
4.975%, 04/20/55	USD		500		477,375
Uruguay Treasury Bills:
0.000%, 02/08/19	UYU		3,400		104,079
0.000%, 03/08/19	UYU		15,180		460,509
					1,657,432
Venezuela | 2.2%
Republic of Venezuela:
12.750%, 08/23/22 («)	USD		613		145,223
9.000%, 05/07/23 («)	USD		746		167,430
8.250%, 10/13/24 («)	USD		1,976		453,344
7.650%, 04/21/25 («)	USD		1,442		324,450
11.750%, 10/21/26 («)	USD		802		193,999
9.250%, 09/15/27 («)	USD		815		186,981
9.250%, 05/07/28 («)	USD		619		140,049
11.950%, 08/05/31 («)	USD		903		207,171
9.375%, 01/13/34 («)	USD		909		254,520
7.000%, 03/31/38 («)	USD		1,108		248,677
					2,321,844
Total Foreign Government Obligations (Cost $84,108,792)					80,471,095

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

Annual Report  43

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
Quasi Government Bonds | 0.2%
Venezuela | 0.2%
Petroleos de Venezuela SA:
6.000%, 05/16/24 («)	USD		350	$	51,625
6.000%, 11/15/26 («)	USD		325		47,818
5.375%, 04/12/27 («)	USD		315		46,462
5.500%, 04/12/37 («)	USD		470		69,152
Total Quasi Government Bonds (Cost $548,460)					215,057

Description	Shares		Fair Value
Short-Term Investments | 0.1%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $146,699)		146,699	$	146,699

Description	Counterparty	Number of Contracts		Exercise Price		Notional Amount (000)		Fair Value
Purchased Options | 0.5%
Call
USD vs BRL Jan 19 4.32, Expires 01/02/19	GSC		8,800	$	4.32	$	880	$	0
USD vs BRL Jan 19 4.32, Expires 01/02/19	JPMS		11,650		4.32		1,165		0
USD vs CLP Jan 19 689.5, Expires 01/02/19	GSC		16,000		689.50		1,600		12,339
USD vs CLP Jan 19 689.5, Expires 01/02/19	JPMS		16,300		689.50		1,630		12,571

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

44  Annual Report

Description	Counterparty	Number of Contracts		Exercise Price		Notional Amount (000)		Fair  Value
Lazard Explorer Total Return Portfolio (continued)
USD vs CNH Jul 19 6.87, Expires 07/01/19	BRC		56,900	$	6.87	$	5,690	$	93,549
USD vs CNH Jun 19 6.9, Expires 06/26/19	JPMS		60,700		6.90		6,070		86,291
USD vs COP Jan 19 3,325, Expires 01/02/19	GSC		34,000		3,325.00		3,400		221
USD vs HUF Jan 19 288.25, Expires 01/02/19	GSC		17,100		288.25		1,710		9
USD vs HUF Jan 19 288.25, Expires 01/02/19	JPMS		18,100		288.25		1,810		9
USD vs INR Jan 19 77.91, Expires 01/03/19	JPMS		43,000		77.91		4,300		0
USD vs KRW Jan 19 1,147.7, Expires 01/03/19	GSC		23,850		1,147.70		2,385		14
USD vs KRW Jan 19 1,147.7, Expires 01/03/19	JPMS		22,500		1,147.70		2,250		14
USD vs PLN Jan 19 3.86, Expires 01/02/19	GSC		15,950		3.86		1,595		5
USD vs PLN Jan 19 3.86, Expires 01/02/19	BRC		16,650		3.86		1,665		5
USD vs TRY Jan 19 6.96, Expires 01/02/19	BRC		7,450		6.96		745		0
USD vs TRY Jan 19 6.96, Expires 01/02/19	JPMS		6,900		6.96		690		0
USD vs ZAR Jan 19 15.55, Expires 01/02/19	GSC		9,850		15.55		985		0
USD vs ZAR Jan 19 15.55, Expires 01/02/19	JPMS		10,150		15.55		1,015		0
Put
USD vs CLP Feb 19 670, Expires 02/07/19	JPMS		48,200		670.00		4,820		17,063
USD vs EUR Jan 19 0.87, Expires 01/08/19	GSC		176,700		0.87		17,670		44,104
USD vs JPY Feb 19 110.71, Expires 02/22/19	GSC		73,800		110.71		7,380		149,002

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

Annual Report  45

Description	Counterparty	Number of Contracts		Exercise Price		Notional Amount (000)		Fair Value
Lazard Explorer Total Return Portfolio (continued)
USD vs RUB Mar 19 66, Expires 03/12/19	GSC		118,980	$	66.00	$	11,898	$	40,085
USD vs RUB Mar 19 66, Expires 03/12/19	JPMS		59,960		66.00		5,996		20,200
USD vs RUB Mar 19 66, Expires 03/12/19	BRC		28,360		66.00		2,836		9,554
Total Purchased Options (Cost $1,152,430)									485,035
Total Investments | 95.5% (Cost $108,693,887) (»)								$	102,491,510
Cash and Other Assets in Excess of Liabilities | 4.5%									4,879,339
Net Assets | 100.0%								$	107,370,849

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

46  Annual Report

Lazard Explorer Total Return Portfolio (continued)

Forward Currency Contracts open at December 31, 2018:

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
BRL	199,349	USD	51,770	BRC	01/16/19		$	—		$	383
BRL	1,017,295	USD	267,921	BRC	01/16/19			—			5,689
BRL	4,598,892	USD	1,168,551	BRC	01/16/19			16,923			—
BRL	3,854,131	USD	978,877	CIT	01/16/19			14,618			—
BRL	5,257,369	USD	1,336,427	GSC	01/16/19			18,786			—
BRL	4,859,079	USD	1,232,487	HSB	01/16/19			20,057			—
BRL	1,109,975	USD	288,230	JPM	01/16/19			—			2,108
BRL	4,534,516	USD	1,151,411	UBS	01/16/19			17,469			—
CLP	2,227,085,000	USD	3,206,658	BRC	01/04/19			2,411			—
COP	637,905,599	USD	199,883	BRC	01/25/19			—			3,673
COP	3,804,605,443	USD	1,188,902	BRC	01/25/19			—			18,665
COP	637,905,599	USD	199,995	SCB	01/25/19			—			3,786
COP	637,905,599	USD	199,876	UBS	01/25/19			—			3,667
IDR	6,703,560,781	USD	455,963	BRC	01/15/19			9,656			—
IDR	8,145,884,485	USD	525,982	BRC	01/29/19			38,983			—
IDR	6,703,560,780	USD	455,715	JPM	01/15/19			9,904			—
IDR	16,256,294,303	USD	1,050,080	JPM	01/29/19			77,390			—
IDR	6,703,560,781	USD	455,715	SCB	01/15/19			9,904			—
IDR	11,827,169,236	USD	763,536	SCB	01/29/19			56,748			—
IDR	6,703,560,781	USD	455,306	UBS	01/15/19			10,313			—
IDR	9,548,120,096	USD	618,610	UBS	01/29/19			43,608			—
MXN	7,399,789	USD	368,200	BRC	01/22/19			7,296			—
MXN	7,403,655	USD	368,200	BRC	01/22/19			7,492			—
MXN	5,958,469	USD	295,000	GSC	01/22/19			7,357			—
MXN	5,960,829	USD	295,000	GSC	01/22/19			7,477			—
MXN	16,413,596	USD	816,800	GSC	01/22/19			16,094			—
MXN	16,424,704	USD	816,800	GSC	01/22/19			16,657			—
MYR	2,464,607	USD	590,000	SCB	01/28/19			6,172			—
MYR	2,497,800	USD	600,000	SCB	01/28/19			4,201			—
PHP	9,316,267	USD	176,044	BRC	02/20/19			341			—
PHP	10,530,215	USD	199,300	SCB	02/20/19			69			—
PHP	10,544,609	USD	199,256	SCB	02/20/19			385			—
PHP	21,052,755	USD	398,500	SCB	02/20/19			92			—
PLN	1,512,091	USD	405,920	BOA	02/14/19			—			1,529
PLN	1,002,571	USD	269,125	BRC	02/14/19			—			999
The accompanying notes are an integral part of these financial statements.

Annual Report  47

Lazard Explorer Total Return Portfolio (continued)

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
PLN	1,815,963	USD	479,714	BRC	02/19/19		$	6,006		$	—
PLN	2,937,058	USD	788,544	CIT	02/14/19			—			3,063
PLN	1,815,964	USD	479,885	CIT	02/19/19			5,835			—
PLN	1,944,077	USD	521,914	HSB	02/14/19			—			1,994
PLN	1,815,963	USD	479,773	JPM	02/19/19			5,948			—
PLN	1,684,020	USD	452,086	SCB	02/14/19			—			1,715
PLN	1,815,963	USD	479,969	BOA	02/19/19			5,751			—
PLN	1,815,963	USD	479,785	SCB	02/19/19			5,935			—
TRY	3,200,750	USD	590,000	BRC	01/14/19			10,776			—
TRY	6,531,465	USD	1,180,000	BRC	02/07/19			30,016			—
USD	267,161	BRL	1,017,295	SCB	01/16/19			4,929			—
USD	267,217	BRL	1,017,295	SCB	01/16/19			4,985			—
USD	375,353	BRL	1,428,480	SCB	01/16/19			7,128			—
USD	458,188	BRL	1,745,332	SCB	01/16/19			8,288			—
USD	480,000	BRL	1,862,640	SCB	01/16/19			—			140
USD	482,591	BRL	1,827,910	SCB	01/16/19			11,403			—
USD	794,516	BRL	3,017,412	SCB	01/16/19			16,706			—
USD	1,014,859	BRL	3,841,953	SCB	01/16/19			24,504			—
USD	2,979,306	BRL	11,497,971	SCB	01/16/19			15,429			—
USD	150,000	COP	487,500,000	SCB	01/25/19			53			—
USD	290,000	IDR	4,218,050,000	SCB	01/15/19			—			2,979
USD	1,520,000	IDR	22,004,432,000	SCB	01/15/19			—			8,393
USD	360,000	MXN	7,083,810	SCB	01/22/19			538			—
USD	1,181,589	MYR	4,964,680	SCB	01/28/19			—			19,334
USD	110,000	PLN	413,859	SCB	02/14/19			—			681
USD	300,000	PLN	1,126,275	SCB	02/14/19			—			1,209
USD	160,000	TRY	850,816	SCB	01/16/19			479			—
USD	176,044	TWD	5,387,837	BRC	02/21/19			39			—
USD	199,256	TWD	6,099,215	SCB	02/21/19			11			—
USD	199,300	TWD	6,112,531	SCB	02/21/19			—			379
USD	398,500	TWD	12,210,040	SCB	02/21/19			—			368
USD	1,557,676	ZAR	22,410,441	BOA	02/20/19			9,019			—
USD	675,983	ZAR	9,746,834	BRC	02/20/19			2,436			—
USD	668,452	ZAR	9,623,972	JPM	02/20/19			3,395			—
USD	941,171	ZAR	13,565,375	SCB	02/20/19			3,745			—

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

48  Annual Report

Lazard Explorer Total Return Portfolio (continued)

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
UYU	1,760,000	USD	53,790	CIT	03/14/19		$	—		$	210
UYU	3,453,471	USD	106,019	HSB	03/13/19			—			865
ZAR	6,114,342	USD	422,614	SCB	02/20/19			—			87
Total gross unrealized appreciation/depreciation on Forward Currency Contracts							$	603,757		$	81,916

Written Options open at December 31, 2018:

Description	Counterparty	Number of Contracts		Strike Price			Expiration Date	Notional Amount (000)		Premiums			Fair Value
Call
USD vs CNH Jul 19 7.1	BRC		56,900		$	7.10	07/01/19	$	5,690		$	41,025		$	(38,612	)
USD vs CNH Jun 19 7.13	JPMS		60,700			7.13	06/26/19		6,070			42,338			(35,607	)
Put
USD vs JPY Feb 19 108	GSC		73,800			108.00	02/22/19		7,380			36,524			(64,634	)
Total Written Options			191,400								$	119,887		$	(138,853	)

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

Annual Report   49

Lazard Explorer Total Return Portfolio (concluded)

Credit Default Swap Agreements open at December 31, 2018:

Counter- party		Notional Amount	Expiration Date	Buy/ Sell	Receive (Pay) Rate		Payment Frequency Paid/ Received	S&P Credit Rating	Fair Value			Upfront Premiums Paid (Received)			Unrealized Appreciation
Referenced Obligations: United Mexican States, 4.150%, 03/28/27
BOA	$	404,000	12/20/23	Buy	(1.000	)%	Quarterly	BBB+		$	9,813		$	4,127		$	5,686
GSC		1,090,000	12/20/23	Buy	(1.000	)	Quarterly	BBB+			26,767			8,228			18,539
BOA		3,338,000	12/20/23	Buy	(1.000	)	Quarterly	BBB+			81,972			43,291			38,681
BRC		5,765,000	12/20/23	Buy	(1.000	)	Quarterly	BBB+			141,573			69,373			72,200
Total Credit Default Swap Agreements										$	260,125		$	125,019		$	135,106

Interest Rate Swap Agreements open at December 31, 2018:

Currency	Counter- party	Notional Amount		Expiration Date	Receive (Pay) Rate	Payment Frequency	Variable Rate	Unrealized Appreciation
BRL	JPM	$	13,838,945	01/03/22	8.69%	Upon Maturity	Brazil Cetip Interbank Deposit Rate		$	80,288

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

50  Annual Report

The Lazard Funds, Inc. Notes to Portfolios of Investments

December 31, 2018

(#) Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2018, the percentage of net assets for each Portfolio was as follows:

Portfolio	Percentage of Net Assets
Emerging Markets Income		4.6	%
Enhanced Opportunities		13.2
Explorer Total Return		18.1

(»)	The Portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts.
(±)	Some or all of this security position has been pledged to cover collateral requirements on securities sold short.
(*)	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, 2018.
(¶)	Date shown is the next perpetual call date.
(«)	Issue in default.
(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, 2018 which may step up at a future date.

Security Abbreviations:
ADR	—	American Depositary Receipt
ETF	—	Exchange-Traded Fund
JSC	—	Joint Stock Company
NTN-B	—	Brazil Sovereign “Nota do Tesouro Nacional” Series B
NTN- F	—	Brazil Sovereign “Nota do Tesouro Nacional” Series F
REIT	—	Real Estate Investment Trust
Currency Abbreviations:
ARS	—	Argentine Peso	KRW	—	South Korean Won
BRL	—	Brazilian Real	KZT	—	Kazakhstan Tenge
CAD	—	Canadian Dollar	MXN	—	Mexican New Peso
CLP	—	Chilean Peso	MYR	—	Malaysian Ringgit
CNH	—	Chinese Yuan Renminbi	NGN	—	Nigerian Naira
CNY	—	Chinese Renminbi	PEN	—	Peruvian Nuevo Sol
COP	—	Colombian Peso	PHP	—	Philippine Peso
CZK	—	Czech Koruna	PLN	—	Polish Zloty
DOP	—	Dominican Republic Peso	RON	—	New Romanian Leu
EGP	—	Egyptian Pound	RUB	—	Russian Ruble
EUR	—	Euro	SGD	—	Singapore Dollar
GHS	—	Ghanaian Cedi	THB	—	Thai Baht
HUF	—	Hungarian Forint	TRY	—	New Turkish Lira
IDR	—	Indonesian Rupiah	TWD	—	Taiwan Dollar
ILS	—	Israeli Shekel	USD	—	Unites States Dollar
INR	—	Indian Rupee	UYU	—	Uruguayan Peso
JPY	—	Japanese Yen	ZAR	—	South African Rand
The accompanying notes are an integral part of these financial statements.

Annual Report   51

Counterparty Abbreviations:
BNP	—	BNP Paribas SA	JPM	—	JPMorgan Chase Bank NA
BOA	—	Bank of America NA	JPMS	—	JPMorgan Securities, Inc.
BRC	—	Barclays Bank PLC	RBS	—	RBS Securities, Inc.
CIT	—	Citibank NA	SCB	—	Standard Chartered Bank
GSC	—	Goldman Sachs International	SSB	—	State Street Bank and Trust Co.
HSB	—	HSBC Bank USA NA	UBS	—	UBS AG

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

Industry†	Lazard Explorer Total Return Portfolio
Corporate & Quasi Government Bonds
Banks		2.9	%
Capital Markets		0.2
Chemicals		0.3
Communications Equipment		1.1
Diversified Financial Services		0.9
Diversified Telecommunication Services		0.8
Electric Utilities		3.4
Energy Equipment & Services		0.3
Food & Staples Retailing		0.4
Independent Power & Renewable Electricity Producers		2.0
Insurance		0.2
Media		0.3
Metals & Mining		1.7
Oil, Gas & Consumable Fuels		3.5
Wireless Telecommunication Services		1.9
Subtotal		19.9
Foreign Government Obligations		75.0
Purchased Options		0.5
Short-Term Investments		0.1
Total Investments		95.5	%

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

52  Annual Report

	Lazard Enhanced Opportunities Portfolio
Industry†	Long		Short
Common Stocks and Convertible Corporate Bonds
Air Freight & Logistics	1.0	%	–0.2	%
Banks	0.7		–0.1
Biotechnology	9.7		–4.3
Building Products	0.7		–0.1
Capital Markets	0.8		–0.4
Chemicals	0.6		–0.1
Commercial Services & Supplies	0.9		–0.4
Communications Equipment	1.6		–0.3
Construction & Engineering	1.7		–0.8
Construction Materials	2.8		–0.1
Consumer Finance	7.6		–1.2
Diversified Consumer Services	1.3		–0.9
Diversified Financial Services	1.2		—
Electric Utilities	1.2		–0.4
Electronic Equipment, Instruments & Components	2.8		–0.7
Energy Equipment & Services	2.8		–0.4
Entertainment	2.3		–0.8
Equity Real Estate Investment Trusts (REITs)	5.4		–2.6
Health Care Equipment & Supplies	3.4		–1.3
Health Care Technology	2.3		–0.5
Hotels, Restaurants & Leisure	1.3		–0.3
Independent Power & Renewable Electricity Producers	1.3		–0.3
Interactive Media & Services	0.9		–0.2
Internet & Direct Marketing Retail	2.4		–1.0
IT Services	8.3		–4.8
Life Sciences Tools & Services	0.3		—
Machinery	0.6		—
Media	3.1		—
Metals & Mining	3.5		–1.3
Mortgage Real Estate Investment Trusts (REITs)	0.4		–0.1
Oil, Gas & Consumable Fuels	3.7		–0.6
Personal Products	1.0		–0.3
Pharmaceuticals	6.1		–2.4
Professional Services	0.6		—
Real Estate Management & Development	0.7		—
Semiconductors & Semiconductor Equipment	7.2		–3.7
Software	11.7		–5.4
Technology Hardware, Storage & Peripherals	1.3		–0.3
Wireless Telecommunications Services	2.1		–0.9
Subtotal	107.2		–37.2
Exchange-Traded Funds	7.5		–2.7
Short-Term Investments	15.4		—
Total Investments	130.1	%	–39.9	%

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

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

Annual Report  53

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2018	Lazard Emerging Markets Income Portfolio				Lazard Enhanced Opportunities Portfolio
ASSETS
Investments in securities, at fair value		$	5,339,032		$	21,197,965
Cash			—			—
Cash collateral due from broker on options			—			2,873,950
Foreign currency, at fair value			42,268			4,165
Receivables for:
Investments sold			—			2,209,085
Dividends and interest			39,151			109,769
Capital stock sold			—			—
Amount due from Investment Manager (Note 3)			5,901			—
Gross unrealized appreciation on:
Forward currency contracts			67,674			4,598
Swap agreements			—			—
Premiums for swap agreements purchased			—			—
Total assets			5,494,026			26,399,532
LIABILITIES
Securities sold short, at fair value			—			6,509,849
Cash collateral due to broker on options and swap agreements			—			516,698
Due to custodian			54,934			521,413
Payables for:
Management fees			—			6,270
Accrued professional services			25,621			27,463
Investments purchased			210,356			1,855,888
Capital stock redeemed			451			600,000
Dividends on securities sold short			—			2,513
Gross unrealized depreciation on forward currency contracts			22,538			11,139
Line of credit outstanding			—			—
Written options, at fair value			—			11,153
Other accrued expenses and payables			10,622			48,593
Total liabilities			324,522			10,110,979
Net assets		$	5,169,504		$	16,288,553
NET ASSETS
Paid in capital		$	5,378,007		$	17,674,745
Distributable earnings (Accumulated loss)			(208,503	)		(1,386,192	)
Net assets		$	5,169,504		$	16,288,553

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

54  Annual Report

Lazard Explorer Total Return Portfolio
	$	102,491,510
		570,313
		—
		132,996
		6,004,062
		1,539,999
		42
		—
		603,757
		215,394
		125,019
		111,683,092
		—
		570,000
		—
		90,003
		33,002
		243,852
		53,798
		—
		81,916
		3,070,000
		138,853
		30,819
		4,312,243
	$	107,370,849
	$	137,097,518
		(29,726,669	)
	$	107,370,849

Annual Report  55

December 31, 2018	Lazard Emerging Markets Income Portfolio			Lazard Enhanced Opportunities Portfolio
Institutional Shares
Net assets		$	5,058,655	$	16,183,735
Shares of capital stock outstanding*			685,762		1,948,553
Net asset value, offering and redemption price per share		$	7.38	$	8.31
Open Shares
Net assets		$	110,849	$	104,818
Shares of capital stock outstanding*			13,908		12,624
Net asset value, offering and redemption price per share		$	7.97	$	8.30
Cost of investments in securities		$	5,510,073	$	22,461,962
Proceeds received from securities sold short		$	—	$	7,190,536
Proceeds received from written options		$	—	$	11,427
Cost of foreign currency		$	42,729	$	4,165

* $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.

56  Annual Report

Lazard Explorer Total Return Portfolio
$	107,276,140
	13,774,341
$	7.79
$	94,709
	12,090
$	7.83
$	108,693,887
$	—
$	119,887
$	132,763

Annual Report  57

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2018	Lazard Emerging Markets Income Portfolio				Lazard Enhanced Opportunities Portfolio
Investment Income (Loss)
Income
Interest*		$	272,732		$	510,382
Dividends			—			36,956
Total investment income*			272,732			547,338
Expenses
Management fees (Note 3)			35,698			171,294
Custodian fees			43,416			176,333
Professional services			62,827			55,700
Registration fees			34,514			34,313
Administration fees			10,511			12,043
Shareholders’ services			22,987			23,126
Directors’ fees and expenses			5,218			5,614
Shareholders’ reports			2,855			8,363
Distribution fees (Open Shares)			297			272
Other^			1,265			5,617
Total gross expenses before expenses on securities sold short			219,588			492,675
Broker expense on securities sold short			—			115,394
Dividend expense on securities sold short			—			77,934
Total gross expenses			219,588			686,003
Management fees waived and expenses reimbursed			(169,960	)		(267,707	)
Total net expenses			49,628			418,296
Net investment income (loss)			223,104			129,042
Net Realized and Unrealized Gain (Loss) on Investments, Securities Sold Short, Foreign Currency Transactions, Forward Currency Contracts, Futures Contracts, Options and Swap Agreements
Net realized gain (loss) on:
Investments			(212,079	)		10,596
Securities sold short			—			414,693
Foreign currency transactions			(5,285	)		(9,717	)
Forward currency contracts			(97,393	)		42,836
Futures contracts			—			—
Written options			—			(44,128	)
Swap agreements			—			—
Total net realized gain (loss) on investments, securities sold short, foreign currency transactions, forward currency contracts, futures contracts, options and swap agreements			(314,757	)		414,280

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

58  Annual Report

Lazard Explorer Total Return Portfolio
$	9,098,750
	—
	9,098,750
	1,426,569
	154,160
	54,117
	37,045
	29,638
	23,513
	11,651
	4,166
	717
	12,022
	1,753,598
	—
	—
	1,753,598
	(11,308	)
	1,742,290
	7,356,460
	(4,211,038	)
	—
	882,136
	(3,174,522	)
	(13,648	)
	(3,502,385	)
	(3,652,024	)
	(13,671,481	)

Annual Report  59

For the Year Ended December 31, 2018		Lazard Emerging Markets Income Portfolio				Lazard Enhanced Opportunities Portfolio
Net change in unrealized appreciation (depreciation) on:
Investments†			$	(143,045	)	$	(1,884,345	)
Securities sold short				—			1,059,193
Foreign currency translations				(203	)		(207	)
Forward currency contracts				(75,726	)		(312	)
Written options				—			(341	)
Swap agreements				—			—
Total net change in unrealized appreciation (depreciation) on investments, securities sold short, foreign currency translations, forward currency contracts, options and swap agreements				(218,974	)		(826,012	)
Net realized and unrealized gain (loss) on investments, securities sold short, foreign currency transactions, forward currency contracts, futures contracts, options and swap agreements				(533,731	)		(411,732	)
Net increase (decrease) in net assets resulting from operations			$	(310,627	)	$	(282,690	)
*	Net of foreign withholding taxes of		$	543		$	229
†	Includes net change in unrealized appreciation (depreciation) of foreign capital gains taxes of		$	865		$	—
^	Includes interest on line of credit of		$	—		$	82

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

60  Annual Report

Lazard Explorer Total Return Portfolio
$	(11,485,946	)
	—
	3,403
	901,192
	1,478,758
	(81,608	)
	(9,184,201	)
	(22,855,682	)
$	(15,499,222	)
$	39,800
$	—
$	6,472

Annual Report  61

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

	Lazard Emerging Markets Income Portfolio
	Year Ended December 31, 2018				Year Ended December 31, 2017
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	223,104		$	247,057
Net realized gain (loss) on investments, securities sold short, foreign currency transactions, forward currency contracts, futures contracts, options and swap agreements			(314,757	)		709,651
Net change in unrealized appreciation (depreciation) on investments, securities sold short, foreign currency translations, forward currency contracts, options and swap agreements			(218,974	)		408,811
Net increase (decrease) in net assets resulting from operations			(310,627	)		1,365,519
Distributions to shareholders (Note 2(i))
Net investment income and net realized gains
Institutional Shares			(538,715	)		(271,702	)
Open Shares			(8,027	)		(471	)
Return of capital
Institutional Shares			(215,126	)		—
Open Shares			(3,206	)		—
Net decrease in net assets resulting from distributions			(765,074	)		(272,173	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			353,037			279,121
Open Shares			40,296			2,500
Net proceeds from reinvestment of distributions
Institutional Shares			753,834			271,421
Open Shares			11,233			471
Cost of shares redeemed
Institutional Shares			(917,500	)		(7,861,554	)
Open Shares			(29,858	)		(35,393	)
Net increase (decrease) in net assets from capital stock transactions			211,042			(7,343,434	)
Total increase (decrease) in net assets			(864,659	)		(6,250,088	)
Net assets at beginning of period			6,034,163			12,284,251
Net assets at end of period		$	5,169,504		$	6,034,163

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

62  Annual Report

Lazard Enhanced Opportunities Portfolio						Lazard Explorer Total Return Portfolio
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018			Year Ended December 31, 2017
$	129,042		$	173,786		$	7,356,460		$	8,603,092
	414,280			562,543			(13,671,481	)		2,136,719
	(826,012	)		12,467			(9,184,201	)		4,713,330
	(282,690	)		748,796			(15,499,222	)		15,453,141
	(425,197	)		(1,635,070	)		(6,311,065	)		(6,253,137	)
	(2,387	)		(12,071	)		(10,083	)		(28,104	)
	—			—			(833,996	)		(1,907,478	)
	—			—			(1,333	)		(8,573	)
	(427,584	)		(1,647,141	)		(7,156,477	)		(8,197,292	)
	4,469,209			3,913,116			6,934,144			9,865,405
	7			2,100			8,549			262,829
	415,898			1,608,034			7,088,834			8,119,904
	2,387			12,071			11,416			36,460
	(3,201,293	)		(3,500,001	)		(126,158,624	)		(39,498,370	)
	(10,796	)		(2,057	)		(889,813	)		(517,628	)
	1,675,412			2,033,263			(113,005,494	)		(21,731,400	)
	965,138			1,134,918			(135,661,193	)		(14,475,551	)
	15,323,415			14,188,497			243,032,042			257,507,593
$	16,288,553		$	15,323,415		$	107,370,849		$	243,032,042

Annual Report  63

	Lazard Emerging Markets Income Portfolio
	Year Ended December 31, 2018			Year Ended December 31, 2017
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		648,255			1,447,433
Shares sold		39,351			31,224
Shares issued to shareholders from reinvestment of distributions		98,805			30,314
Shares redeemed		(100,649	)		(860,716	)
Net increase (decrease)		37,507			(799,178	)
Shares outstanding at end of period		685,762			648,255
Open Shares
Shares outstanding at beginning of period		11,589			15,090
Shares sold		4,177			278
Shares issued to shareholders from reinvestment of distributions		1,424			50
Shares redeemed		(3,282	)		(3,829	)
Net increase (decrease)		2,319			(3,501	)
Shares outstanding at end of period		13,908			11,589

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

64  Annual Report

Lazard Enhanced Opportunities Portfolio						Lazard Explorer Total Return Portfolio
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018			Year Ended December 31, 2017
	1,754,786			1,537,093			26,808,845			29,244,079
	512,981			409,971			803,468			1,104,102
	51,342			181,646			840,498			907,944
	(370,556	)		(373,924	)		(14,678,470	)		(4,447,280	)
	193,767			217,693			(13,034,504	)		(2,435,234	)
	1,948,553			1,754,786			13,774,341			26,808,845
	13,575			12,204			109,240			133,440
	1			224			979			29,262
	289			1,365			1,314			4,055
	(1,241	)		(218	)		(99,443	)		(57,517	)
	(951	)		1,371			(97,150	)		(24,200	)
	12,624			13,575			12,090			109,240

Annual Report  65

The Lazard Funds, Inc. Financial Highlights

LAZARD EMERGING MARKETS INCOME PORTFOLIO

Selected data for a share of capital stock outstanding	Year Ended												For the Period 4/30/14* to
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	9.14		$	8.40		$	8.42		$	9.16		$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.34			0.19			0.16			0.01			0.01
Net realized and unrealized gain (loss)		(0.87	)		0.79			0.08			(0.74	)		(0.85	)
Total from investment operations		(0.53	)		0.98			0.24			(0.73	)		(0.84	)
Less distributions from:
Net investment income		(0.90	)		(0.20	)		(0.16	)		—			—
Net realized gains		—			(0.04	)		(0.10	)		—			—
Return of capital		(0.33	)		—			—			(0.01	)		—
Total distributions		(1.23	)		(0.24	)		(0.26	)		(0.01	)		—
Net asset value, end of period	$	7.38		$	9.14		$	8.40		$	8.42		$	9.16
Total Return (b)		–5.79	%		11.73	%		2.82	%		–7.94	%		–8.30	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	5,059		$	5,925		$	12,156		$	12,800		$	4,985
Ratios to average net assets (c):
Net expenses		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Gross expenses		3.79	%		2.13	%		2.25	%		2.55	%		5.15	%
Net investment income (loss)		4.06	%		2.17	%		1.80	%		0.09	%		0.10	%
Portfolio turnover rate		65	%		74	%		174	%		175	%		125	%

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

66  Annual Report

Selected data for a share of capital stock outstanding	Year Ended												For the Period 4/30/14* to
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	9.43		$	8.50		$	8.39		$	9.14		$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.35			0.18			0.13			(0.02	)		(0.01	)
Net realized and unrealized gain (loss)		(0.92	)		0.79			0.08			(0.73	)		(0.85	)
Total from investment operations		(0.57	)		0.97			0.21			(0.75	)		(0.86	)
Less distributions from:
Net investment income		(0.65	)		—			—			—			—
Net realized gains		—			(0.04	)		(0.10	)		—			—
Return of capital		(0.24	)		—			—			—			—
Total distributions		(0.89	)		(0.04	)		(0.10	)		—			—
Net asset value, end of period	$	7.97		$	9.43		$	8.50		$	8.39		$	9.14
Total Return (b)		–5.97	%		11.42	%		2.52	%		–8.21	%		–8.50	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	111		$	109		$	128		$	155		$	132
Ratios to average net assets (c):
Net expenses		1.05	%		1.13	%		1.20	%		1.20	%		1.20	%
Gross expenses		13.51	%		12.51	%		12.29	%		12.19	%		13.96	%
Net investment income (loss)		3.95	%		1.96	%		1.51	%		–0.18	%		–0.18	%
Portfolio turnover rate		65	%		74	%		174	%		175	%		125	%

*	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 DST; 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  67

LAZARD ENHANCED OPPORTUNITIES PORTFOLIO

Selected data for a share of capital stock outstanding	Year Ended												Period Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14		*
Institutional Shares
Net asset value, beginning of period	$	8.67		$	9.16		$	8.89		$	10.00		$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.06			0.11	^		0.05			(0.02	)		—	(b)
Net realized and unrealized gain (loss)		(0.20	)		0.40			0.35			(0.21	)		—	(b)
Total from investment operations		(0.14	)		0.51			0.40			(0.23	)		—	(b)
Less distributions from:
Net investment income		(0.10	)		(0.17	)		(0.08	)		(0.14	)		—
Net realized gains		(0.12	)		(0.83	)		(0.05	)		(0.35	)		—
Return of capital		—			—			—			(0.39	)		—
Total distributions		(0.22	)		(1.00	)		(0.13	)		(0.88	)		—
Net asset value, end of period	$	8.31		$	8.67		$	9.16		$	8.89		$	10.00
Total Return (c)		–1.66	%		5.56	%^		4.50	%		–2.32	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	16,184		$	15,206		$	14,077		$	4,823		$	4,899
Ratios to average net assets (d):
Net expenses		2.36	%		2.78	%^		1.79	%		1.70	%		1.70	%
Gross expenses		3.80	%		5.02	%^		3.60	%		13.45	%		69.35	%(e)
Gross expenses, excluding expenses on securities sold short		2.71	%		3.45	%		3.51	%		13.45	%		69.35	%(e)
Net investment income (loss)		0.73	%		1.20	%		0.57	%		–0.22	%		–1.70	%
Portfolio turnover rate:
Excluding securities sold short		312	%		210	%		247	%		639	%		37	%
Including securities sold short		409	%		310	%		340	%		N/A			N/A

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

68  Annual Report

Selected data for a share of capital stock outstanding	Year Ended												Period Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14		*
Open Shares
Net asset value, beginning of period	$	8.65		$	9.15		$	8.89		$	10.00		$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.04			0.10	^		0.04			(0.05	)		—	(b)
Net realized and unrealized gain (loss)		(0.19	)		0.37			0.33			(0.21	)		—	(b)
Total from investment operations		(0.15	)		0.47			0.37			(0.26	)		—	(b)
Less distributions from:
Net investment income		(0.08	)		(0.14	)		(0.06	)		(0.11	)		—
Net realized gains		(0.12	)		(0.83	)		(0.05	)		(0.35	)		—
Return of capital		—			—			—			(0.39	)		—
Total distributions		(0.20	)		(0.97	)		(0.11	)		(0.85	)		—
Net asset value, end of period	$	8.30		$	8.65		$	9.15		$	8.89		$	10.00
Total Return (c)		–1.80	%		5.16	%^		4.13	%		–2.57	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	105		$	117		$	112		$	110		$	100
Ratios to average net assets (d):
Net expenses		2.60	%		3.01	%^		2.07	%		1.95	%		1.95	%
Gross expenses		14.49	%		16.40	%^		15.58	%		26.46	%		69.36	%(e)
Gross expenses, excluding expenses on securities sold short		13.40	%		14.85	%		15.46	%		26.46	%		69.36	%(e)
Net investment income (loss)		0.48	%		1.06	%		0.45	%		–0.46	%		–1.95	%
Portfolio turnover rate:
Excluding securities sold short		312	%		210	%		247	%		639	%		37	%
Including securities sold short		409	%		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 DST; 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.

Annual Report  69

LAZARD EXPLORER TOTAL RETURN PORTFOLIO

Selected data for a share of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	9.03		$	8.77		$	8.56		$	9.32		$	9.86
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.40			0.31			0.42			0.28			0.36
Net realized and unrealized gain (loss)		(1.25	)		0.24			0.21			(0.75	)		(0.38	)
Total from investment operations		(0.85	)		0.55			0.63			(0.47	)		(0.02	)
Less distributions from:
Net investment income		(0.35	)		(0.22	)		(0.19	)		(0.15	)		(0.49	)
Net realized gains		—			—			—			—			(0.01	)
Return of capital		(0.04	)		(0.07	)		(0.23	)		(0.14	)		(0.02	)
Total distributions		(0.39	)		(0.29	)		(0.42	)		(0.29	)		(0.52	)
Redemption fees		—			—			—			—			—	(b)
Net asset value, end of period	$	7.79		$	9.03		$	8.77		$	8.56		$	9.32
Total Return (c)		–9.65	%		6.41	%		7.47	%		–5.13	%		–0.21	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	107,276		$	242,040		$	256,331		$	249,222		$	133,473
Ratios to average net assets:
Net expenses		1.10	%		1.06	%		1.12	%		1.16	%		1.24	%
Gross expenses		1.10	%		1.06	%		1.12	%		1.16	%		1.30	%
Net investment income (loss)		4.64	%		3.45	%		4.80	%		3.17	%		3.57	%
Portfolio turnover rate		151	%		152	%		173	%		262	%		182	%

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

70  Annual Report

Selected data for a share of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	9.08		$	8.82		$	8.61		$	9.37		$	9.88
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.35			0.28			0.39			0.24			0.33
Net realized and unrealized gain (loss)		(1.24	)		0.24			0.21			(0.75	)		(0.38	)
Total from investment operations		(0.89	)		0.52			0.60			(0.51	)		(0.05	)
Less distributions from:
Net investment income		(0.32	)		(0.20	)		(0.17	)		(0.12	)		(0.43	)
Net realized gains		—			—			—			—			(0.01	)
Return of capital		(0.04	)		(0.06	)		(0.22	)		(0.14	)		(0.02	)
Total distributions		(0.36	)		(0.26	)		(0.39	)		(0.26	)		(0.46	)
Redemption fees		—			—			—			0.01			—	(b)
Net asset value, end of period	$	7.83		$	9.08		$	8.82		$	8.61		$	9.37
Total Return (c)		–9.97	%		6.02	%		7.07	%		–5.42	%		–0.52	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	95		$	992		$	1,176		$	1,342		$	7,150
Ratios to average net assets:
Net expenses		1.40	%		1.42	%		1.48	%		1.50	%		1.54	%
Gross expenses		5.22	%		2.36	%		2.34	%		1.66	%		1.78	%
Net investment income (loss)		3.94	%		3.09	%		4.46	%		2.62	%		3.26	%
Portfolio turnover rate		151	%		152	%		173	%		262	%		182	%

(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 DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.

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

Annual Report  71

The Lazard Funds, Inc. Notes to Financial Statements

December 31, 2018

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. As of December 31, 2018, the Fund was comprised of thirty-three no-load portfolios (each referred to as a “Portfolio”). This report includes only the financial statements of Emerging Markets Income, Enhanced Opportunities and Explorer Total Return Portfolios. The financial statements of the other thirty 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 Portfolios’ Prospectus).

2. Significant Accounting Policies

The accompanying financial statements are presented in conformity with US Generally Accepted Accounting Principles (“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

72  Annual Report

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.

Annual Report  73

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

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

(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Dividend income and 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,

74  Annual Report

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 represent net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency translations reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.

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

The US dollar value of forward currency contracts is determined using quotations provided by an independent pricing service. Daily fluctuations in the value of such contracts are recorded as unrealized appreciation (depreciation) on forward currency con-

Annual Report  75

tracts. 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, 2018, the Emerging Markets Income, Enhanced Opportunities and Explorer Total Return 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

76  Annual Report

liquidation of futures positions and potentially subjecting the Portfolio to substantial losses.

During the year ended December 31, 2018, the Explorer Total Return Portfolio 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, 2018, the Enhanced Opportunities and Explorer Total Return Portfolios traded in options.

(f) 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

Annual Report  77

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, 2018, 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, 2018, the Enhanced Opportunities Portfolio had pledged $18,472,376 of long securities as collateral under such arrangements.

For the year ended December 31, 2018, proceeds from securities sold short and purchases to cover short positions for the Enhanced Opportunities Portfolio were $50,696,643 and $44,438,508, respectively.

(g) Swap Agreements—A Portfolio may enter into credit default swap agreements whereby one counterparty (the “Protection Buyer”) pays an upfront payment or a periodic fee throughout the term of the swap agreement provided there is no credit event,

78  Annual Report

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

Annual Report  79

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, 2018, the Explorer Total Return Portfolio traded in swap agreements.

(h) 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, 2018, 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
Emerging Markets Income	$	24,288
Explorer Total Return		22,514,234

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, 2018, the Portfolios had no such losses to defer.

80  Annual Report

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 Income	$	5,510,073	$	30,453	$	202,107	$	(171,654	)
Enhanced Opportunities		16,112,352		1,214,079		2,638,501		(1,424,422	)
Explorer Total Return		109,930,377		1,835,352		9,240,660		(7,405,308	)

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. Each Portfolio files a US 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.

(i) Dividends and Distributions—Emerging Markets Income and Explorer Total Return Portfolios intend to declare dividends from net investment income, if any, daily and to pay such dividends monthly. Dividends from net investment income, if any, for Enhanced Opportunities Portfolio will be declared and paid annually. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the 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 for-

Annual Report  81

eign currency transactions, wash sales, return of capital distributions, certain fixed-income securities and fund expenses, derivatives 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				Distributable Earnings (Accumulated Loss)
Emerging Markets Income		$	(374,961	)	$	374,961
Explorer Total Return			(831,688	)		831,688

In October 2018, the US Securities and Exchange Commission (the “SEC”) adopted amendments to certain disclosure requirements included in Regulation S-X that had become “redundant, duplicative, overlapping, outdated or superseded, in light of the other Commission disclosure requirements, GAAP or changes in the information environment.” The compliance date for the amendments to Regulation S-X was November 5, 2018 (for reporting period end dates of September 30, 2018 or after). The Fund adopted these amendments and such changes are reflected in these financial statements.

Under these amendments, it is no longer required to differentiate distributions from earnings as either net investment income or net realized capital gains or disclose a Portfolio’s undistributed net investment income within a Portfolio’s Statement of Changes in Net Assets. The presentation within the Portfolios’ Statement of Changes in Net Assets for the year ended December 31, 2017 also has been modified accordingly.

Below is the characterization of the Portfolio distributions and undistributed (distributions in excess of) net investment income (loss) for the year ended December 31, 2017 as previously disclosed in the Statement of Changes in Net Assets within the December 31, 2017 Annual Report:

From net investment income	Institutional Shares		Open Shares
Emerging Markets Income	$	245,410	$	—
Enhanced Opportunities		274,175		1,785
Explorer Total Return		6,253,137		28,104

82  Annual Report

From net realized gains	Institutional Shares		Open Shares
Emerging Markets Income	$	26,292	$	471
Enhanced Opportunities		1,360,895		10,286

Undistributed (Distributions in excess of) net investment income (loss)		Amount
Emerging Markets Income	$	400,025
Enhanced Opportunities		(85,269	)
Explorer Total Return		(1,244,305	)

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

	Ordinary Income				Long-Term Capital Gain
Portfolio		2018		2017		2018		2017
Emerging Markets Income*	$	546,742	$	272,173	$	—	$	—
Enhanced Opportunities		399,185		1,482,118		28,399		165,023
Explorer Total Return*		6,321,148		6,281,241		—		—

* Emerging Markets Income and Explorer Total Return Portfolios had return of capital distributions of $218,332 and $835,329 in 2018 and $0 and $1,916,051 in 2017, respectively.

At December 31, 2018, the components of distributable earnings (accumulated loss), 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 Income	$	—	$	(24,288	)	$	(184,215	)
Enhanced Opportunities		91,573		—			(1,477,579	)
Explorer Total Return		—		(22,514,234	)		(7,212,435	)

(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

Annual Report  83

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. 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.

(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

84  Annual Report

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 each Portfolio’s average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:

Portfolio	Annual Rate
Emerging Markets Income		0.65	%
Enhanced Opportunities (a)		0.95
Explorer Total Return		0.90

(a) From January 1, 2018 to January 18, 2018, percentage was 1.30%.

The Investment Manager has voluntarily agreed to waive its fees and, if necessary, reimburse the Portfolios until May 1, 2019 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 percentages of the value of the Portfolio’s average daily net assets set forth opposite the Portfolio’s name on table below. The Fund, on behalf of the Portfolio, may deduct from the payment to be made to the Investment Manager under the Management Agreement, or the Investment Manager will bear, such excess expense.

Portfolio	Institutional Shares			Open Shares
Emerging Markets Income		0.90	%		1.05	%
Enhanced Opportunities (a)		1.25			1.50
Explorer Total Return		1.10			1.40

(a) From January 1, 2018 to January 18, 2018, percentages were 1.60% and 1.85%, respectively.

During the year ended December 31, 2018, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:

Annual Report  85

	Institutional Shares					Open Shares
Portfolio	Management Fees Waived		Expenses Reimbursed		Management Fees Waived			Expenses Reimbursed
Emerging Markets Income	$	34,927	$	120,254		$	771	$	14,008
Enhanced Opportunities		170,240		84,530			1,054		11,883
Explorer Total Return		—		—			—		11,308

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.

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.

DST is the Fund’s transfer and dividend disbursing agent.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2018, each Director who is not an affiliated person of the Investment Manager or any of its affiliates was paid by all of the funds in the Lazard Fund Complex: (1) an annual retainer of $225,000, (2) an additional annual fee of $32,500 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 $22,500 to the Audit Committee Chair. Effective January 1, 2019,

86  Annual Report

the aggregate compensation for Independent Directors for the Lazard Fund Complex is comprised of: (1) an annual retainer of $232,000, (2) an additional annual fee of $33,000 to the lead Independent Director, and (3) an additional annual fee of $23,000 to the Audit Committee Chair. The Independent Directors may be paid additional compensation for participation on ad hoc committees or other work performed on behalf of the Board. The Independent Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Independent Directors’ fees are allocated among the funds in the Lazard Fund Complex at a rate of $5,000 per fund with the remainder allocated based upon each fund’s proportionate share of combined net assets. The Statements of Operations show the 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, 2018 were as follows:

Portfolio	Purchases		Sales
Emerging Markets Income	$	1,430,929	$	1,078,766
Enhanced Opportunities		63,327,263		51,677,664
Explorer Total Return		189,542,326		227,452,645

For the year ended December 31, 2018, 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, 2018, the Investment Manager owned 88.26% and 32.50% of the outstanding shares of the Emerging Markets Income and Enhanced Opportunities 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

Annual Report  87

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, 2018, 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
Enhanced Opportunities	$	208,750		$	295,000		3.52	%		4
Explorer Total Return		5,657,143			10,450,000		2.94			14

* 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.

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

88  Annual Report

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 generally does not intend to actively hedge the Portfolio’s 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

Annual Report  89

disadvantageous prices. 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).

90  Annual Report

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) 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,

Annual Report  91

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 periodic 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 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.

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

92  Annual Report

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.

Annual Report  93

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

94  Annual Report

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  95

The following table summarizes the valuation of the Portfolios’ assets and liabilities by each fair value hierarchy level as of December 31, 2018:

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, 2018
Emerging Markets Income Portfolio
Assets:
Foreign Government Obligations*		$	—		$	1,598,121		$	—	$	1,598,121
Supranational Bonds			—			185,451			—		185,451
US Treasury Securities			—			3,117,050			—		3,117,050
Short-Term Investments			438,410			—			—		438,410
Other Financial Instruments†
Forward Currency Contracts			—			67,674			—		67,674
Total		$	438,410		$	4,968,296		$	—	$	5,406,706
Liabilities:
Other Financial Instruments†
Forward Currency Contracts		$	—		$	(22,538	)	$	—	$	(22,538	)
Enhanced Opportunities Portfolio
Assets:
Common Stocks*		$	77,678		$	—		$	—	$	77,678
Convertible Corporate Bonds*			—			17,381,037			—		17,381,037
Exchange-Traded Funds			1,213,216			—			—		1,213,216
Purchased Options			25,565			—			—		25,565
Short-Term Investments			2,500,469			—			—		2,500,469
Other Financial Instruments†
Forward Currency Contracts			—			4,598			—		4,598
Total		$	3,816,928		$	17,385,635		$	—	$	21,202,563
Liabilities:
Securities Sold Short
Common Stocks*
Argentina		$	(85,805	)	$	—		$	—	$	(85,805	)
Bermuda			(39,515	)		—			—		(39,515	)
Canada			(219,867	)		—			—		(219,867	)
China			(179,579	)		—			—		(179,579	)
Japan			—			(197,170	)		—		(197,170	)
Mexico			(10,941	)		—			—		(10,941	)
Monaco			(24,146	)		—			—		(24,146	)
Netherlands			—			(69,138	)		—		(69,138	)
Thailand			(52,695	)		—			—		(52,695	)
United Kingdom			(158,295	)		—			—		(158,295	)
United States			(5,034,745	)		—			—		(5,034,745	)
Exchange-Traded Funds			(437,953	)		—			—		(437,953	)
Other Financial Instruments†
Forward Currency Contracts			—			(11,139	)		—		(11,139	)
Written Options			(11,153	)		—			—		(11,153	)
Total		$	(6,254,694	)	$	(277,447	)	$	—	$	(6,532,141	)

96  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, 2018
Explorer Total Return Portfolio
Assets:
Corporate Bonds*		$	—	$	21,173,624		$	—	$	21,173,624
Foreign Government Obligations*			—		80,471,095			—		80,471,095
Quasi Government Bonds*			—		215,057			—		215,057
Short-Term Investments			146,699		—			—		146,699
Purchased Options			—		485,035			—		485,035
Other Financial Instruments†
Credit Default Swap Agreements			—		135,106			—		135,106
Forward Currency Contracts			—		603,757			—		603,757
Interest Rate Swap Agreements			—		80,288			—		80,288
Total		$	146,699	$	103,163,962		$	—	$	103,310,661
Liabilities:
Other Financial Instruments†
Forward Currency Contracts		$	—	$	(81,916	)	$	—	$	(81,916	)
Written Options			—		(138,853	)		—		(138,853	)
Total		$	—	$	(220,769	)	$	—	$	(220,769	)

*	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).

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

Annual Report  97

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.

During the year ended December 31, 2018, the approximate average monthly notional exposure for derivative instruments was as follows:

Derivative Instruments	Emerging Markets Income Portfolio		Enhanced Opportunities Portfolio		Explorer Total Return Portfolio
Credit default swap agreements:
Average notional value – buy protection	$	—	$	—		$22,600,000	#
Average notional value – sell protection		—		—		5,800,000	*
Forward currency contracts:
Average amounts purchased		5,300,000		100,000		70,300,000
Average amounts sold		1,700,000		800,000		43,600,000
Futures contracts:
Average notional value of contracts – long		—		—		2,900,000	†
Interest rate swap agreements:
Average notional value – pays fixed rate		—		—		7,800,000	‡
Average notional value – receives fixed rate		—		—		22,100,000
Options:
Average value of purchased options		—		—		1,200,000
Average value of written options		—		—		22,600,000	#

#	Represents average monthly notional exposure for the 11 months the derivative instrument was open during the period.
*	Represents average monthly notional exposure for the six months the derivative instrument was open during the period.
†	Represents notional exposure for one day 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.

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

The Enhanced Opportunities Portfolio also traded in written options having an average monthly value of less than $50,000.

98  Annual Report

Emerging Markets Income Portfolio

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2018:

Assets – Derivative Financial Instruments			Total
Forward currency contracts	Unrealized appreciation on forward currency contracts		$	67,674
Liabilities – Derivative Financial Instruments				Total
Forward currency contracts	Unrealized depreciation on forward currency contracts		$	22,538
The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2018 was:
Net Realized Gain (Loss) from:		Total
Forward currency contracts			$	(97,393	)
Net Change in Unrealized Appreciation (Depreciation) on:		Total
Forward currency contracts			$	(75,726	)

Enhanced Opportunities Portfolio

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2018:

				Foreign
	Equity			Currency
Assets – Derivative Financial Instruments	Contracts			Contracts				Total
Forward currency contracts Unrealized appreciation on forward currency contracts		$	—		$	4,598		$	4,598
Purchased options Investments in securities, at fair value			25,565			—			25,565
Total		$	25,565		$	4,598		$	30,163
				Foreign
	Equity			Currency
Liabilities – Derivative Financial Instruments	Contracts			Contracts			Total
Forward currency contracts Unrealized depreciation on forward currency contracts		$	—		$	11,139		$	11,139
Written options Written options, at fair value			11,153			—			11,153
Total		$	11,153		$	11,139		$	22,292

Annual Report  99

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2018 was:

					Foreign
	Equity				Currency
Net Realized Gain (Loss) from:	Contracts				Contracts				Total
Forward currency contracts		$	—			$	42,836		$	42,836
Purchased options			(109,120	)			—			(109,120	)
Written options			(44,128	)			—			(44,128	)
Total		$	(153,248	)		$	42,836		$	(110,412	)
					Foreign
	Equity				Currency
Net Change in Unrealized Appreciation (Depreciation) on:	Contracts				Contracts				Total
Forward currency contracts		$	—			$	(312	)	$	(312	)
Purchased options			(8,677	)			—			(8,677	)
Written options			(341	)			—			(341	)
Total		$	(9,018	)		$	(312	)	$	(9,330	)

Explorer Total Return Portfolio

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2018:

				Foreign		Interest
	Credit			Currency		Rate
Assets – Derivative Financial Instruments	Contracts			Contracts		Contracts			Total
Forward currency contracts Unrealized appreciation on forward currency contracts		$	—	$	603,757		$	—	$	603,757
Purchased options Investments in securities, at fair value			—		485,035			—		485,035
Swap agreements Unrealized appreciation on swap agreements; Premiums for swap agreements purchased			260,125		—			80,288		340,413
Total		$	260,125	$	1,088,792		$	80,288	$	1,429,205

100  Annual Report

				Foreign			Interest
	Credit			Currency			Rate
Liabilities – Derivative Financial Instruments	Contracts			Contracts			Contracts			Total
Forward currency contracts Unrealized depreciation on forward currency contracts	$	—		$	81,916		$	—		$	81,916
Written options
Written options, at fair value		—			138,853			—			138,853
Total	$	—		$	220,769		$	—		$	220,769
The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2018 was:
				Foreign			Interest
	Credit			Currency			Rate
Net Realized Gain (Loss) from:	Contracts			Contracts			Contracts			Total
Forward currency contracts	$	—		$	(3,174,522	)	$	—		$	(3,174,522	)
Futures contracts		—			—			(13,648	)		(13,648	)
Purchased options		—			2,781,535			—			2,781,535
Written options		—			(3,502,385	)		—			(3,502,385	)
Swap agreements		(4,576,117	)		—			924,093			(3,652,024	)
Total	$	(4,576,117	)	$	(3,895,372	)	$	910,445		$	(7,561,044	)
				Foreign			Interest
Net Change in Unrealized Appreciation	Credit			Currency			Rate
(Depreciation) on:	Contracts			Contracts			Contracts			Total
Forward currency contracts	$	—		$	901,192		$	—		$	901,192
Purchased options		—			(2,093,824	)		—			(2,093,824	)
Written options		—			1,478,758			—			1,478,758
Swap agreements		135,106			—			(216,714	)		(81,608	)
Total	$	135,106		$	286,126		$	(216,714	)	$	204,518

As of December 31, 2018, the Emerging Markets Income, Enhanced Opportunities and Explorer Total Return 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.

Annual Report  101

The required information for the affected Portfolios are presented in the below table, as of December 31, 2018:

Emerging Markets Income Portfolio

				Net Amounts of
			Gross Amounts Offset	Assets Presented
	Gross Amounts of		in the Statement of	in the Statement of
Description	Recognized Assets		Assets and Liabilities	Assets and Liabilities
Forward Currency Contracts		$67,674	$    —	$67,674

				Amounts Not Offset
				in the Statement of
				Assets and Liabilities
	Net Amounts of
	Assets Presented
	in the Statement of			Financial			Collateral		Net Amounts of
Counterparty	Assets and Liabilities			Instruments			Received		Derivative Assets
BNP Paribas SA		$	2,795	$	(1,429	)	$	—		$	1,366
Citibank NA			15,919		(8,727	)		—			7,192
HSBC Bank USA NA			37,816		(4,606	)		—			33,210
Standard Chartered Bank			11,144		(7,776	)		—			3,368
Total		$	67,674	$	(22,538	)	$	—		$	45,136

				Net Amounts of
			Gross Amounts Offset	Liabilities Presented
	Gross Amounts of		in the Statement of	in the Statement of
Description	Recognized Liabilities		Assets and Liabilities	Assets and Liabilities
Forward Currency Contracts		$22,538	$    —	$22,538

				Amounts Not Offset
				in the Statement of
				Assets and Liabilities
	Net Amounts of
	Liabilities Presented
	in the Statement of			Financial			Collateral		Net Amounts of
Counterparty	Assets and Liabilities			Instruments			Pledged		Derivative Liabilities
BNP Paribas SA		$	1,429	$	(1,429	)	$	—		$	—
Citibank NA			8,727		(8,727	)		—			—
HSBC Bank USA NA			4,606		(4,606	)		—			—
Standard Chartered Bank			7,776		(7,776	)		—			—
Total		$	22,538	$	(22,538	)	$	—		$	—

102  Annual Report

Enhanced Opportunities Portfolio

				Net Amounts of
			Gross Amounts Offset	Assets Presented
	Gross Amounts of		in the Statement of	in the Statement of
Description	Recognized Assets		Assets and Liabilities	Assets and Liabilities
Forward Currency Contracts		$4,598	$    —	$4,598

				Amounts Not Offset
				in the Statement of
				Assets and Liabilities
	Net Amounts of
	Assets Presented
	in the Statement of			Financial		Collateral		Net Amounts of
Counterparty	Assets and Liabilities			Instruments		Received		Derivative Assets
State Street Bank and Trust Co.		$	4,598	$	4,598	$	—		$	—

				Net Amounts of
			Gross Amounts Offset	Liabilities Presented
	Gross Amounts of		in the Statement of	in the Statement of
Description	Recognized Liabilities		Assets and Liabilities	Assets and Liabilities
Forward Currency Contracts		$11,139	$    —	$11,139

			Amounts Not Offset
			in the Statement of
			Assets and Liabilities
	Net Amounts of
	Liabilities Presented
	in the Statement of		Financial			Collateral		Net Amounts of
Counterparty	Assets and Liabilities		Instruments			Pledged		Derivative Liabilities
State Street Bank and Trust Co.		$11,139	$	(4,598	)	$	—	$	6,541

Explorer Total Return Portfolio

							Net Amounts of
				Gross Amounts Offset			Assets Presented
	Gross Amounts of			in the Statement of			in the Statement of
Description	Recognized Assets			Assets and Liabilities			Assets and Liabilities
Credit Default Swap Agreements		$	260,125		$	—		$	260,125
Forward Currency Contracts			603,757			—			603,757
Interest Rate Swap Agreements			80,288			—			80,288
Purchased Options			485,035			—			485,035
Total		$	1,429,205		$	—		$	1,429,205

Annual Report  103

					Amounts Not Offset
					in the Statement of
					Assets and Liabilities
	Net Amounts of
	Assets Presented
	in the Statement of			Financial			Collateral			Net Amounts of
Counterparty	Assets and Liabilities			Instruments			Received (a)			Derivative Assets
Bank of America NA		$	106,555	$	(1,529	)	$	(105,026	)	$	—
Barclays Bank PLC			377,056		(68,021	)		(205,288	)		103,747
Citibank NA			20,453		(3,273	)		—			17,180
Goldman Sachs International			338,917		(64,634	)		(274,283	)		—
HSBC Bank USA NA			20,057		(2,859	)		—			17,198
JPMorgan Chase Bank NA			176,925		(2,108	)		(80,000	)		94,817
JPMorgan Securities, Inc.			136,148		(35,607	)		—			100,541
Standard Chartered Bank			181,704		(39,071	)		—			142,633
UBS AG			71,390		(3,667	)		—			67,723
Total		$	1,429,205	$	(220,769	)	$	(664,597	)	$	543,839

				Net Amounts of
			Gross Amounts Offset	Liabilities Presented
	Gross Amounts of		in the Statement of	in the Statement of
Description	Recognized Liabilities		Assets and Liabilities	Assets and Liabilities
Forward Currency Contracts		$ 81,916	$    —	$  81,916
Written Options		138,853	—	138,853
Total		$220,769	$    —	$220,769

				Amounts Not Offset
				in the Statement of
				Assets and Liabilities
	Net Amounts of
	Liabilities Presented
	in the Statement of			Financial			Collateral		Net Amounts of
Counterparty	Assets and Liabilities			Instruments			Pledged		Derivative Liabilities
Bank of America NA		$	1,529	$	(1,529	)	$	—	$	—
Barclays Bank PLC			68,021		(68,021	)		—		—
Citibank NA			3,273		(3,273	)		—		—
Goldman Sachs International			64,634		(64,634	)		—		—
HSBC Bank USA NA			2,859		(2,859	)		—		—
JPMorgan Chase Bank NA			2,108		(2,108	)		—		—
JPMorgan Securities, Inc.			35,607		(35,607	)		—		—
Standard Chartered Bank			39,071		(39,071	)		—		—
UBS AG			3,667		(3,667	)		—		—
Total		$	220,769	$	(220,769	)	$	—	$	—

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

104  Annual Report

11. Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-08, Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization of Purchased Callable Debt Securities, which amends the amortization period for certain purchased callable debt securities. Management is currently evaluating the impact that the adoption of the amendment will have on the Fund’s financial statements and related disclosures. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which removes, modifies and adds disclosures to Topic 820. The amendments in this ASU apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Management has evaluated the impact of the amendments and has elected to adopt these amendments and incorporate the changes in the current financial statements.

12. Subsequent Events

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

Annual Report  105

The Lazard Funds, Inc.

Report of Independent Registered Public Accounting Firm

To the Board of Directors of The Lazard Funds, Inc. and Shareholders of Lazard Emerging Markets Income Portfolio, Lazard Enhanced Opportunities Portfolio, and Lazard Explorer Total Return 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 Income Portfolio, Lazard Enhanced Opportunities Portfolio, and Lazard Explorer Total Return Portfolio (collectively the “Portfolios”), three of the portfolios constituting The Lazard Funds, Inc. (the “Fund”), as of December 31, 2018, 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 five years in the period then ended for the Portfolios except Lazard Emerging Markets Income Portfolio and Lazard Enhanced Opportunities Portfolio which are indicated in the table below, 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, 2018, 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 five years in the period then ended (or for the period listed in the table below), in conformity with accounting principles generally accepted in the United States of America.

Portfolio Name	Financial Highlights
Lazard Emerging Markets Income Portfolio	For the years ended December 31, 2018, 2017, 2016 and 2015 and for the period from April 30, 2014 (commencement of operations) through December 31, 2014
Lazard Enhanced Opportunities Portfolio	For the years ended December 31, 2018, 2017, 2016 and 2015 and for December 31, 2014 (commencement of operations)

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

106  Annual Report

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, 2018, 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 26, 2019

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

Annual Report  107

The Lazard Funds, Inc.

Board of Directors and Officers Information (unaudited)

Name (Year of Birth) 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 (1953)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present) Cornell Law School, Adjunct Professor (2013 – 2016, 2019) The Buchmann Faculty of Law, Tel Aviv University, Visiting Professor (2019) University of California, Berkeley School of Law, Adjunct Professor (Spring 2017)
Kenneth S. Davidson (1945)	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 (1962)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present) TIAA-CREF Funds (69 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 (1971)	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. (1944)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present) Resource America, Inc., a real estate asset management company, Director (2016 – 2018)

108  Annual Report

Name (Year of Birth) 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)
Robert M. Solmson (1947)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, Co-Managing Partner and Managing Director (2008 – present)
Interested Directors(4):
Ashish Bhutani (1960)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present) Lazard Ltd, Vice Chairman and Director (2010 – present)
Nathan A. Paul (1973)	Director (October 2017), Chief Executive Officer and President (February 2017; previously, Vice President and Secretary since April 2002)	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, 2019, 39 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 109

Name (Year of Birth) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) During the Past Five Years
Officers(3):
Mark R. Anderson (1970)	Chief Compliance Officer (September 2014), Vice President and Secretary (February 2017)	Managing Director (since February 2017, previously Director), Chief Compliance Officer (since September 2014) and General Counsel (since April 2017) of the Investment Manager Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014)
Christopher Snively (1984)	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 (1958)	Treasurer (May 2003)	Vice President of the Investment Manager
Shari L. Soloway (1981)	Assistant Secretary (November 2015)	Head of Legal, North America (since January 2019, previously Senior Vice President, Legal and Compliance (since September 2015)) of the Investment Manager Vice President and Associate General Counsel of GE Asset Management (July 2011 – September 2015)
Jessica A. Falzone (1989)	Assistant Secretary (January 2019)	Vice President, Legal and Compliance, of the Investment Manager (since March 2018) Associate at Schulte Roth & Zabel LLP (2014 – March 2018)
Cesar A. Trelles (1975)	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.

110  Annual Report

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

Tax Information

Year Ended December 31, 2018

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2018:

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

Portfolio	Percentage
Emerging Markets Income	—	%
Enhanced Opportunities	3.62
Explorer Total Return	—

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

Portfolio	Percentage
Emerging Markets Income	—	%
Enhanced Opportunities	2.98
Explorer Total Return	—

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.

Annual Report  111

Schedule of Portfolio Holdings

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the SEC’s website at https://www.sec.gov.

112  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.

2000 Crown Colony Drive

Quincy, Massachusetts 02169

Telephone: 617-483-7000

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

 

Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardassetmanagement.com
Performance information as of the most recent month end is available online at www.lazardassetmanagement.com. LZDPS031

Lazard Funds Annual Report

December 31, 2018

Equity Funds

Lazard Developing Markets Equity Portfolio	Lazard International Equity Advantage Portfolio
Lazard Emerging Markets Core Equity Portfolio	Lazard International Equity Concentrated Portfolio
Lazard Emerging Markets Equity Advantage Portfolio	Lazard International Equity Portfolio
Lazard Emerging Markets Equity Blend Portfolio	Lazard International Equity Select Portfolio
Lazard Emerging Markets Equity Portfolio	Lazard International Equity Value Portfolio
Lazard Equity Franchise Portfolio	Lazard International Small Cap Equity Portfolio
Lazard Global Equity Select Portfolio	Lazard International Strategic Equity Portfolio
Lazard Global Listed Infrastructure Portfolio	Lazard Managed Equity Volatility Portfolio
Lazard Global Realty Equity Portfolio	Lazard US Equity Concentrated Portfolio
Lazard Global Strategic Equity Portfolio	Lazard US Equity Select Portfolio
Lazard International Compounders Portfolio	Lazard US Realty Equity Portfolio
	Lazard US Small-Mid Cap Equity Portfolio

Important Information on Paperless Delivery

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. Shareholders who hold accounts directly with the Fund may elect to receive shareholder reports and other communications from the Fund electronically by signing up for paperless delivery at www.icsdelivery.com/lazardassetmanagement. If you own these shares through a financial intermediary, you may contact your financial intermediary.

You may elect to receive all future reports in paper free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by following the instructions included with this disclosure and visiting www.fundreports.com. If you own these shares through a financial intermediary, you may contact your financial intermediary or follow instructions included with this disclosure to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the fund complex or your financial intermediary.

PRIVACY NOTICE

WHAT DOES LAZARD DO WITH YOUR PERSONAL INFORMATION?

Financial companies choose how they share your personal information. U.S. federal law gives our clients the right to limit some but not all sharing. U.S. federal and other applicable 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.

We do not disclose nonpublic personal information about our clients or former clients to third parties other than as described below.

Personal information we collect. We collect personal information about you in connection with our providing advisory services to you. The legal basis for our collection of your personal information is our contract with you and our legitimate business interest to provide contractual services to you. The collection of this information is necessary for us to be able to provide advisory services to you and the failure to provide such information will result in our inability to provide our services. This information includes your social security number (for U.S. persons) and may include other information such as your:

• Assets and income;

• Investment experience;

• Transaction history;

• Credit history; and

• Wire transfer instructions.

How we collect this information. We collect this information from you through various means. For example, when you give us your contact information, enter into an investment advisory contract with us, buy securities (i.e., interests in a fund) from us, direct us to buy or sell securities for your account, tell us where to send money, or make a wire transfer. We also may collect your personal information from other sources, such as our affiliates¹ or other non-affiliated companies (such as credit bureaus).

¹ Our affiliates are companies related to us by common ownership or control and can include both financial and nonfinancial companies. Non-affiliates are companies not related to us by common ownership or control and can include both financial and nonfinancial companies.

How we use this information. All financial companies need to share customers’ personal information to run their everyday business and we use the personal information we collect from you for our everyday business purposes. These purposes may include for example:

• To provide advisory services to you;

• To open an account for you;

• To process a transaction for your account;

• To market products and services to you; and/or

• To respond to court orders and legal investigations.

If you are an investor located within a European Union country, please note that personal information may be collected, shared and/or stored outside of the European Union.

Disclosure to others. We may provide your personal information to our affiliates and to firms that assist us in servicing your account and have a need for such information, such as a broker, counterparty, fund administrator or third party service provider that aggregates data in a central repository for access by a broker, counterparty or fund administrator to provide its services. We may also disclose such information to service providers and financial institutions with which we have a formal agreement to provide services relating to our arrangements with you. We require third party service providers and financial institutions with which we have a formal agreement to provide services relating to our arrangements with you to protect the confidentiality of your information and to use the information only for the purposes for which we disclose the information to them. These sharing practices are consistent with applicable privacy and related laws, and in general, you may not limit our use of your personal information for these purposes under such laws. We note that the U.S. federal privacy laws only give you the right to limit the certain types of information sharing that we do not engage in (e.g., sharing with our affiliates certain information relating to your transaction history or creditworthiness for their use in marketing to you, or sharing any personal information with non-affiliates for them to market to you). We may also share your personal information with non-affiliates (such as a government agency or regulatory authority) as required by applicable law.

How we protect your personal information. To protect your personal information from unauthorized access and use, we use security measures that comply with applicable law. These measures include computer safeguards and secured files and buildings.

How long we keep your personal information. We retain your personal information for the duration of your advisory relationship with us and for a period of time thereafter as required by applicable law.

Your rights with respect to this information. If you are an investor located within a European Union country, you have the following rights with respect to your personal information:

• The right to request and obtain a copy of your personal information that we maintain;

• The right to correct your personal information that we maintain;

• The right to request the erasure of your personal information from our systems, subject to applicable recordkeeping requirements applicable to us; and

• The right to lodge a complaint with a supervisory authority.

Who is providing this Privacy Notice. This Privacy Notice relates to the following entities:

• Lazard Asset Management LLC

• Lazard Asset Management (Canada), Inc.²

• Lazard Asset Management Securities LLC

Who to contact with questions. If you have any questions about this Privacy Notice, please call (800) 823-6300 or visit our website at http://www.lazardassetmanagement.com.

² Lazard Asset Management (Canada), Inc. does not disclose any non-public personal information about its customers to any third party, except as permitted by or required by any applicable law, including the laws of the United States and Canada.

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard (unaudited)
4	Investment Overviews (unaudited)
37	Performance Overviews (unaudited)
57	Information About Your Portfolio’s Expenses (unaudited)
65	Portfolio Holdings Presented by Asset Class/Sector
68	Portfolios of Investments
68	Lazard Developing Markets Equity Portfolio
72	Lazard Emerging Markets Core Equity Portfolio
76	Lazard Emerging Markets Equity Advantage Portfolio
84	Lazard Emerging Markets Equity Blend Portfolio
91	Lazard Emerging Markets Equity Portfolio
95	Lazard Equity Franchise Portfolio
97	Lazard Global Equity Select Portfolio
101	Lazard Global Listed Infrastructure Portfolio
104	Lazard Global Realty Equity Portfolio
105	Lazard Global Strategic Equity Portfolio
108	Lazard International Compounders Portfolio
111	Lazard International Equity Advantage Portfolio
118	Lazard International Equity Concentrated Portfolio
120	Lazard International Equity Portfolio
124	Lazard International Equity Select Portfolio
128	Lazard International Equity Value Portfolio
131	Lazard International Small Cap Equity Portfolio
136	Lazard International Strategic Equity Portfolio
140	Lazard Managed Equity Volatility Portfolio
148	Lazard US Equity Concentrated Portfolio
150	Lazard US Equity Select Portfolio
154	Lazard US Realty Equity Portfolio
156	Lazard US Small-Mid Cap Equity Portfolio
161	Notes to Portfolios of Investments
170	Statements of Assets and Liabilities
178	Statements of Operations
186	Statements of Changes in Net Assets
212	Financial Highlights
264	Notes to Financial Statements
310	Report of Independent Registered Public Accounting Firm
314	Board of Directors and Officers Information (unaudited)
317	Tax and Other Information (unaudited)

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 (unaudited)

Dear Shareholder,

In 2018, volatility returned to global markets. The economic trajectories of the major economies diverged during the year, with US growth accelerating and non-US growth decelerating. Tighter US monetary policy, declining oil prices, and trade tensions between the United States and China also increased risk aversion. Against this backdrop, almost every major developed and emerging equity market declined during the year. Despite the uptick in global market turbulence, our portfolio management teams remained steadfast in their investment discipline and continue to focus on fundamental research.

The US equity market ended the year down after a severe fourth quarter sell-off. During the quarter, volatility as measured by the CBOE Volatility^® Index increased, corporate credit spreads widened, the yield curve flattened, and the yield on the 10-year US Treasury declined. Crude oil prices fell by nearly $29 per barrel on the back of concerns over flagging global demand and elevated supply.

In Europe, political risks increased throughout the year as the Italian election led to a governing coalition of the League and the Five Star Movement. The United Kingdom struggled with finalizing a resolution to exit the European Union (“Brexit”) and German Chancellor Angela Merkel announced she would step down in 2021. The European Central Bank ended its monthly asset purchase program in December, but kept its benchmark interest rate at zero.

Emerging markets equities and debt fell significantly in 2018 as macroeconomic and geopolitical developments weighed on market sentiment. The rising US dollar pressured most emerging markets during the year. In Turkey, uncertainty related to the country’s trade deficit was exacerbated by US sanctions and a diplomatic dispute with the United States over a detained American pastor. Uncertainty about trade and concerns about decelerating Chinese growth rippled through the global economy. Despite these challenges, our emerging markets equity and debt teams believe that many emerging markets still have solid fundamentals, and are well positioned to grow faster than the global growth average.

2  Annual Report

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

Annual Report  3

The Lazard Funds, Inc. Investment Overviews (unaudited)

Emerging Markets Equities

Emerging markets equities experienced a highly volatile year in 2018, dominated by mostly political and macroeconomic factors. At different moments, the markets were primarily affected by sanctions, the effects of strong US economic growth and a strong US dollar, and a major trade dispute between the United States and China. The MSCI Emerging Markets^® Index fell by 14.6%, as measured in US dollar terms, over the year. Although several Latin American markets were negatively impacted by US dollar strength, Brazilian shares rallied towards year-end on the election of fiscal reform candidate, Jair Bolsonaro, and returns for the year were less impacted than in Asia. Asian markets were hurt by the trade rhetoric and particularly by tariff increases that were implemented after May.

Chinese equities fell by 18.9% over the year as trade measures, such as tariffs, were implemented and internet companies recorded decelerating revenues. Investor worries over the possibility of severe earnings volatility pressured large technology company stocks in Taiwan and Korea on a relative basis. Thai shares benefited from robust trade performance and Indian stocks performed well despite political worries towards year-end. Pakistani shares and currency, however, fell throughout the year as the country’s trade and financial position undermined returns.

Most Latin American markets performed poorly over the year, pressured by the strong US dollar and volatile commodity prices. The election of Andres Manuel Lopez Obrador in Mexico initially helped markets, as he impressed investors but then, following unusual political decisions, Mexican share prices declined. The regional returns for the year were dominated by Brazil, where stocks were initially negatively impacted by the effects of the strong US dollar, but were later buttressed by the presidential victory of fiscal reform-seeking candidate Jair Bolsonaro.

Despite being hit by ongoing threats and several versions of sanctions, Russian equities managed to rally and finish the year only marginally lower than zero. Greek shares fell sharply as measures to stabilize the stock market did not impress investors. Equities in

4  Annual Report

the Czech Republic and Hungary held up relatively well as European economic performance was sustained throughout the year. Shares in South Africa, which descended into recession, and Turkey, where interest rates had to be increased substantially after authorities appeared to demonstrate a lack of action in an inflationary crisis, were considerably hurt by the effects of the strong US dollar.

From a sector perspective, consumer discretionary, communication services, health care, information technology, and real estate were the biggest underperformers. Utilities and financials fell slightly, while energy stocks rose in 2018.

International Equities

International equities declined significantly in 2018 as investor sentiment was undermined by global macroeconomic and geopolitical trends, including interest rate pressures, trade disputes, and populism. Riskier assets around the world sold off, with many generating their worst calendar-year performance since the global financial crisis a decade ago.

The MSCI EAFE^® Index declined 12.5% in the fourth quarter and was down 13.8% in 2018. Emerging markets equities (represented by the MSCI Emerging Markets Index) fell less in the fourth quarter, declining 7.5%, but also fell dramatically in the second quarter and ended 2018 down 14.6%. US equities joined the rout, with the S&P 500^® Index plunging 13.5% in the fourth quarter to end the year down 4.4%. In the fourth quarter, international equities (represented by the MSCI EAFE Index) outperformed US equities (represented by the S&P 500 Index) by about 100 basis points (bps), fueled by December’s outperformance of more than 400 bps. These returns are notable given the outperformance of US equities over international equities over much of the past decade.

Over the past couple of years, we believed that investors had not been pricing in many global risks, especially in the United States. As global economic data began to plateau and decline from peak levels earlier in 2018, markets entered the later phases of the economic cycle. International equity valuations at this point came under more pressure, bearing the brunt of investor fears about

Annual Report  5

slowing global growth and geopolitical tensions. This trend began to change later in the fourth quarter as US equities (represented by the S&P 500 Index) in December dropped 9%.

The latest economic data shows a deceleration in global growth, with recent indicators for manufacturing in decline. In the United States, which had resisted the slowing global trend, manufacturing (as measured by the Institute for Supply Management’s manufacturing index) decreased unexpectedly in December to a 2-year low. In Europe, leading indicators fell from elevated levels, and the euro zone’s 0.2% fourth quarter rise in GDP was the lowest since 2014. The Japanese economy contracted 0.3% in the third quarter with the MSCI Japan^® Index returning -14.2% in the fourth quarter. China, in the meantime, has implemented stimulus (including liquidity injections, tax cuts, and regulatory easing) for several months as its economy slows and US tariffs weigh on sentiment.

One of the main factors compressing multiples in global equity markets has been political uncertainty. In the United States, trade tensions persisted, while the government shut down over funding for a physical wall on the nation’s southern border. In the United Kingdom, Prime Minister Theresa May’s Brexit deal with the European Union drew opposition from across the UK political spectrum, raising further investor uncertainty as the March 29th deadline for a deal draws closer. Elsewhere, France, Italy and Germany also experienced their own political tensions.

The decline of investor confidence in 2018 was most pronounced in emerging markets equities, with the MSCI Emerging Markets Index falling 14.6% for the year. Most of these losses occurred earlier in the year before the decline in developed markets. Some of this performance reflected the fact that emerging markets generated extraordinary returns in 2017 and that the asset class is relatively volatile. However, the downturn was also due to a significant shift in investor sentiment going into the year, when confidence was high as the major global economies appeared to be growing together and investors expected healthy earnings. Within a few months, however, US economic growth, boosted by tax cuts and fiscal stimulus, appeared to diverge from the rest of the world.

6  Annual Report

Relatively strong US growth supported further rate hikes by the US Federal Reserve (“Fed”), which in turn boosted the US dollar early in the year.

The rising dollar put pressure on emerging markets in general, but investors focused on countries with high current account deficits and/or significant holdings of US dollar-denominated debt, significantly impacting Argentina’s and Turkey’s equity markets. Another weight on emerging markets sentiment last year was trade. President Donald Trump in 2018 took action against trade deficits, implementing or threatening tariffs on nearly a quarter of US imports. Uncertainty about trade lowered Chinese confidence just as policymakers were trying to restrict credit growth, reduce systemic risk, and deleverage the economy. Chinese equities sold off, and decelerating Chinese growth rippled through the global economy. However, in the fourth quarter, emerging markets showed signs of resilience, with equities down far less than in developed markets.

The uncertainty and volatility global investors faced in 2018 will likely continue in 2019. We see this, however, as a partly positive development. The fact that investors are pricing in risks leads us to be more constructive about markets going forward given that valuations have come down. We acknowledge challenges for growth, geopolitics, and corporate earnings, but we also note that prior market reversals have led to more realistic pricing and, in some cases, opportunities.

US Equities

The S&P 500 Index fell 4.4% for the year. Following strong performance in 2017, stocks continued to set new records into the new year as solid economic data and progress in government initiatives spurred investor optimism. Corporate earnings and other indicators of economic health were largely positive, as the majority of companies reported quarterly earnings above expectations, the economy continued to add jobs at a strong rate, and consumer confidence hit an 18-year high in September. Annualized GDP growth readings during the year were broadly above consensus expectations, with second and third quarter readings at multi-year highs. However, markets suffered their worst quarter since 2011 in

Annual Report  7

the fourth quarter, as many investors worried that valuations for many higher-growth companies had gotten extended, while continued concerns about a prolonged US government shutdown, tariffs, Brexit, and a slowdown in the housing and oil markets accelerated the sell-off.

Global Securities

Global equities fell over the year. Although global economies remained on solid footing, the synchronized growth theme faded by the close of the year. The United States led gains through the first nine months of the year, with strong corporate fundamentals and powerful economic drivers. The Fed continued to hike rates at a measured pace and the yield on the US 10-year bond rose back above the 3% level. Trade concerns permeated, but some progress was made as the United States reached a preliminary agreement with Mexico and Canada and took steps toward resolving its differences with the European Union. Europe underperformed on renewed political anxiety and as the European Central Bank shifted its focus towards the end of its quantitative easing policy. The United Kingdom lagged, as the Brexit process dragged on without a clear deal in sight, while emerging markets were beset by concerns of slowing growth. Global markets declined sharply in the fourth quarter, as heightened trade tensions between the United States and China and added uncertainty around the Fed’s trajectory for future rate hikes drove an increase in volatility.

Global Infrastructure

During the year, the decline in global equity markets was steep and broad-based, partially reversing the gains in 2017. Dominating headlines in 2018 were concerns about the uncertainty around trade, investors’ low confidence, Italian budget disputes, a Brexit impasse, and interest rate concerns. The Fed hiked rates four times during the year, increasing the benchmark federal funds rate to 2.50% and indicating in its statement that further rate hikes would be appropriate, although emphasizing uncertainty around the exact timing. Italy reached a deal with the European Union over its 2019 budget, agreeing to reduce its deficit target to 2.04%.

8  Annual Report

Real Estate Equities

After a turbulent year in which the US real estate investment trust (“REIT”) market was at times lagging broader equities by more than twelve percentage points, a strong fourth quarter helped close the underperformance gap so that 2018 ended with the -4.3 % return of the MSCI USA Investable Market Index (“IMI”) Core Real Estate^® Index, in line with the -4.4% return for the S&P 500 Index. While still marred by overall stock market weakness in the fourth quarter, REITs ended up benefiting from a risk-off environment and lower than expected interest rates. Triple net (a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three “nets”) on the property), manufactured homes, and healthcare REITs delivered the best total return during the year, while community center retail, office, and data center REITs fared the worst.

Lazard Developing Markets Equity Portfolio

For the year ended December 31, 2018, the Lazard Developing Markets Equity Portfolio’s Institutional Shares posted a total return of -20.58%, while Open Shares posted a total return of -20.83%, as compared with the -14.58% return for the MSCI Emerging Markets Index.

Stock selection in the communication services, consumer staples, energy, financials, industrials, information technology and materials sectors as well as in Russia, China, and Taiwan detracted value. Baidu, a Chinese internet search company, declined on concerns of lower growth as the domestic economy slowed. China State Construction, a Chinese building and engineering services firm, fell as investors were disappointed by the slow pace of balance sheet improvement. Samsung Electronics, a South Korean technology company, eased in step with declining prices of memory chips. First Quantum, a copper miner with assets in Zambia, moved lower with commodity prices and concerns about new potential tax policies. Kingsoft, a Chinese gaming and software company, underperformed after it delayed the launch of its JX III mobile game.

In contrast, stock selection in the consumer discretionary sector as well as in Brazil, South Africa, and India helped performance. An

Annual Report  9

underweight in the communication services sector, South Africa and South Korea, and an overweight in the energy sector, Peru and China also added value. Novatek, an independent Russian oil and gas producer, outperformed on the continued ramp-up of Yamal Liquified Natural Gas (“LNG”) and the announcement of partnerships for Arctic LNG. Duratex, a Brazilian producer of wooden panels and sanitary chinaware products, rose after the election of President Jair Bolsonaro and on the expectation of rising prices and margins in the fourth quarter of 2018. Notre Dame Intermedica, a Brazilian vertically integrated healthcare insurance and medical service provider, did well on solid results. China Gas Holdings, a Chinese gas distribution company, outperformed as strong gas demand continued and concerns on distribution margins and connection fees were eased. Li Ning, a Chinese sportswear manufacturer, outperformed on optimism that its business would deliver strong results.

Lazard Emerging Markets Core Equity Portfolio

For the year ended December 31, 2018, the Lazard Emerging Markets Core Equity Portfolio’s Institutional Shares posted a total return of -18.12%, while Open Shares posted a total return of -18.43%, as compared with the -14.58% return for the MSCI Emerging Markets Index. The R6 Shares posted a total return of -17.52% since inception on April 6, 2018 through December 31, 2018, as compared with the -15.48% return for the MSCI Emerging Markets Index for the same period.

Stock selection in the information technology and consumer discretionary sectors detracted from returns, as did stock selection in China, India, and Taiwan. Off-benchmark exposure to Argentina hampered returns, as it was one of the worst performing equity and currency markets. Grupo Supervielle, an Argentine private sector bank, hurt performance, as the Argentine peso was one of the worst performing currencies over the year due to external debt concerns and US dollar strength. Following newly imposed sanctions on Russia, Sberbank, the leading bank in the country with access to a large deposit base, was a detractor for the year. Tofas, a Turkish manufacturer and exporter of passenger and commercial vehicles, declined as potentially lower demand in key export markets, including Italy

10  Annual Report

and Spain, weighed on the company’s share price. We sold the security during the year. New Oriental Education, a Chinese private education business, underperformed due to rising trade tensions with the United States and weaker economic data. China National Building Material, a Chinese building materials company, pulled back on domestic GDP growth concerns.

In contrast, stock selection in the industrials sector helped performance during the year, as did stock selection in Brazil and Colombia. In addition, an overweight to Brazil and Russia, along with an underweight to China, added to returns. Russian integrated oil company, LUKOIL, outperformed as the company announced a share cancellation and provided clarity over its planned share buyback program. Brazil was one of the best performing equity markets over the year following the election victory of president-elect Jair Bolsonaro, who is perceived by many to be the more market-friendly candidate. As a result, Brazilian securities Banco do Brasil, a state-owned bank, and Azul, an airline company, were among the best performing securities in the Portfolio. HDFC Bank, a private sector Indian bank, ended higher on a pick-up in loan growth for private sector banks quarter-over-quarter. Ecopetrol, a Colombian integrated oil company, benefited from higher energy prices over the year.

Lazard Emerging Markets Equity Advantage Portfolio

For the year ended December 31, 2018, the Lazard Emerging Markets Equity Advantage Portfolio’s Institutional Shares posted a total return of -16.23%, while Open Shares posted a total return of -16.40%, as compared with the -14.58% return for the MSCI Emerging Markets Index.

Stock selection in the financials and industrials sectors accounted for the underperformance for the year. The less-than-benchmark exposure in financials sector and greater-than-benchmark exposure in the real estate sector detracted slightly for the year. Stocks that detracted included Sberbank, which was hurt by the Russian sanctions, as the sanctions were expected to reduce loan demand. The company also reported weakening in their net-interest margins, which concerned investors. Turk Telekomunikasyon, the leading telecommunications firm in Turkey, fell on concerns over their abil-

Annual Report  11

ity to repay their non-lira denominated debt with the sharp fall in the Turkish lira. In our view, while they maintain outstanding debt, they are not unduly levered relative to their industry. Country Garden, a property development company based in China, suffered after they reported two accidents resulting in a loss of life. The company announced a halt of all construction until inspections could be completed. The overhang coupled with weaker sales growth in the second half of 2018 caused a sharp sell-off in the stock.

Conversely, stock selection was favorable in the consumer staples and information technology sectors. Less-than-benchmark exposure in the consumer discretionary sector and greater-than-benchmark exposure to the information technology sector also added value for the year. Stocks that contributed to the year’s return included Yageo, the Taiwan electronics component manufacturer, which enjoyed a strong first half of the year. The industry’s continued appetite for mid-end and high-end components, including ceramic capacitators and chip resistors, along with chronic shortages have benefited the company and allowed the company to maintain favorable pricing. After a difficult first quarter, LG Uplus, the Korean telecom, rebounded with a 17% gain for the year. They reported a solid increase in operating profits and substantial subscriber growth driven by its new data plan. Yuanta Financial, the Taiwan investment banking and brokerage concern, also recovered from a first quarter sell-off; their brokerage business continued to gain strength supported by a high level of market activity and interest from retail investors.

Lazard Emerging Markets Equity Blend Portfolio

For the year ended December 31, 2018, the Lazard Emerging Markets Equity Blend Portfolio’s Institutional Shares posted a total return of -21.05%, while Open Shares posted a total return of -21.39%, as compared with the -14.58% return for the MSCI Emerging Markets Index.

Performance was hurt by the Portfolio’s allocation to small cap stocks and dynamic allocation between value and growth stocks. Another detractor was stock selection in the energy, financials, health care, and information technology sectors as well as stock

12  Annual Report

selection in China, Korea, Russia, Taiwan, and Turkey. Finally, the Portfolio’s greater-than-benchmark exposure to Turkey and off-benchmark exposure to Argentina lowered returns.

In contrast, the Portfolio benefited from stock selection in the utilities sector as well as in Brazil, Colombia, and India. Performance was also helped by lower-than-index exposures to the communication services sector and to South Africa.

Lazard Emerging Markets Equity Portfolio

For the year ended December 31, 2018, the Lazard Emerging Markets Equity Portfolio’s Institutional Shares posted a total return of -18.09%, while Open Shares posted a total return of -18.32%, and R6 Shares posted a total return of -18.09%, as compared with the -14.58% return for the MSCI Emerging Markets Index.

During the year, shares of Cielo, a Brazilian credit card processor, fell on concerns about increased competition and regulatory change. SK Hynix and Samsung Electronics, a Korean semiconductor manufacturer and a Korean manufacturer of electronic goods, respectively, were both hurt by falling memory chip prices. Sberbank, a Russian bank, was hurt by renewed sanction concerns. Concerns over recent weakness in Apple smartphone sales negatively affected sentiment for AAC Technologies, a Chinese manufacturer of smartphone components. Stock selection within the financials and energy sectors and within Brazil and Russia hurt performance. A higher-than-index exposure to Turkey also detracted from value.

In contrast, Banco do Brasil, a Brazilian bank, continued its recent strong performance with more positive data in Brazil for loan growth, non-performing loans, and net interest margins, and optimism for economic reforms under the Bolsonaro administration. Tata Consultancy Services, an Indian IT services provider, continued to benefit from a weaker rupee and improved sentiment regarding IT spending across the sector. LUKOIL, a Russian energy company, benefited from the environment of higher oil prices and a weaker ruble, and shares were also boosted by a share buyback program. ENN Energy, a Chinese gas distribution company, continued to benefit from healthy volume growth and the government’s

Annual Report  13

strong push to boost gas consumption. Petrobras Distribuidora, an operator of petrol stations in Brazil and throughout Latin America, was boosted by positive sentiment on the back of the election of market-friendly candidate, Jair Bolsonaro. Stock selection within China helped performance. A greater-than-benchmark exposure to Russia also added value.

Lazard Equity Franchise Portfolio

For the year ended December 31, 2018, the Lazard Equity Franchise Portfolio’s Institutional Shares posted a total return of -5.10%, while Open Shares posted a total return of -5.34%, as compared with the -8.71% return for the MSCI World^® Index.

Express Scripts shares performed strongly during the year, driven by strong results including an encouraging outlook for 2019 claims volumes. Furthermore, Express Scripts shareholders approved the acquisition by Cigna, despite the short-lived opposition of activist investor Carl Icahn. We exited our position in the fourth quarter of the year to make room for new investment candidates with better risk/reward characteristics.

SES, one of the leading providers of satellite infrastructure, was one of the strongest contributors to performance following market speculation that a deal will be completed on C-Band spectrum in the United States for use by mobile operators for 5G networks during 2019. This was supported by a series of positive developments including the US Federal Communications Commission (FCC) voting to approve allocation of some or all of the 500 MHz C-Band spectrum for 5G use, at least two FCC Commissioners speaking in favor of a market-based approach, and Eutelsat signing up to the Intelsat-SES consortium. Telesat also signed up to the consortium. We have undertaken a review of the potential release of the C-Band spectrum for 5G use in the United States and have incorporated the valuation, on a risk-adjusted basis while applying what we believe to be a margin of safety, in our base value for SES.

US company Cisco, the dominant global manufacturer of switch and router networking equipment, performed strongly during the year. Cisco’s results demonstrated growth across multiple busi-

14  Annual Report

nesses, including its core switch business, which generated stagnant revenue growth in recent years. Cisco also showed progress in growing recurring revenues, and the ongoing conversion of customers to subscription plans. We believe that underlying revenues in the core switch business are stronger than headline numbers suggest, given the drive to sell new products on subscription plans. Cisco is a strong generator of cash, with no net debt.

Medical waste services business Stericycle was the largest detractor during the year. We remain somewhat perplexed by its performance in 2018, as we believe the business continues to perform well. Stericycle’s regulated concession pricing is tracking as expected, core regulated waste continuing to grow and the late 2017 restructuring program (headcount reduction and sourcing initiatives) is already yielding around half of the targeted recurring savings. Additionally, results were improved by reduced taxes, depreciation and interest costs. The company continues to execute well on its enterprise resource planning system integration, although this will not be completed until 2022, and it is selling underperforming assets. We believe that Stericycle is one of the most attractive names in our Franchise universe and we used the price falls to increase our stake in the business during the year.

US drug distributor McKesson fell during the year. CEO and Chairman John Hammergren announced his resignation effective March 2019, to be succeeded by COO Brian Tyler, who previously ran Europe and US Pharma. We regard Hammergren’s departure as a positive development, as McKesson had missed several important performance targets. Additional positive news was the announcement Rite Aid has renewed its drug distribution services with McKesson for 10 years to 2029, albeit most likely at lower pricing, and the sale of half of McKesson’s stores to Walgreens. Finally, a New York court has found the state’s Opioid Stewardship Act, which required the company to put a portion of its sales of opioids into a fund for the purposes of dealing with the opioid crisis, unconstitutional. The firm is still expecting to spend around $100 million on opioid related costs in 2019.

Annual Report  15

Lazard Global Equity Select Portfolio

For the year ended December 31, 2018, the Lazard Global Equity Select Portfolio’s Institutional Shares posted a total return of -7.12%, while Open Shares posted a total return of -7.33%, as compared with the -9.42% return for the MSCI All Country World^® Index (“ACWI”).

Stock selection in the health care sector contributed to performance. Shares of healthcare IT company IQVIA rose after the company reported third-quarter results above expectations, driven by strength in its R&D Solutions segment. Stock selection in the consumer staples sector also helped returns. Shares of Coca-Cola rose after the company reported strong earnings in the latter half of the year, driven by strong organic sales growth, refranchising, and ongoing productivity initiatives.

In contrast, less than-benchmark exposure to the utilities sector detracted from performance, as the sector was among the best performers in the benchmark index during the year. Stock selection in the energy sector also hurt returns. Shares of oil services provider Schlumberger fell along with peers amid a steep decline in oil prices during the year.

Lazard Global Listed Infrastructure Portfolio

For the year ended December 31, 2018, the Lazard Global Listed Infrastructure Portfolio’s Institutional Shares posted a total return of -3.73%, while Open Shares posted a total return of -3.98%, as compared with the 2.56% return for the Global Listed Infrastructure Index (USD Hedged)¹ and -8.71% return for the MSCI World Index.

SES, one of the leading providers of satellite infrastructure, was the strongest contributor to performance following market speculation that a deal will be completed on C-Band spectrum in the United States for use by mobile operators for 5G networks. We have undertaken a review of the potential release of the C-Band spectrum for 5G use in the United States, and have incorporated the valuation on a risk-adjusted basis, while applying what we believe to be a margin of safety, in our base value for the company. This was supported by a series of positive developments, including

16  Annual Report

the FCC voting to approve allocation of some or all of the 500 MHz C-Band spectrum for 5G use, and at least two FCC Commissioners speaking in favor of a market-based approach, and Eutelsat signing up to the Intelsat-SES consortium.

Red Electrica, owner of Spanish electricity transmission assets, rose during the year. Newsworthy events included the purchase of a transmission concession in Peru for 181 million euros, albeit a high price, and the Spanish Commission of Markets and Competition (CNMC) confirming a recommended 5.6% allowed return for the next regulatory period. The CNMC is currently an advisory body only; the ultimate decision on prices is made by the Ministry of Industry. This is likely to change in future with the CNMC being given more say in the final decision. We consider an adjustment in the decision making process, from an elected ministerial official to an independent commission, as a positive development.

The most significant detractor during the year was Atlantia, an Italian holding company operating toll motorways and airports, as the company’s share price fell sharply after the collapse of the Morandi bridge in Genoa. The tragedy resulted in the death of 43 people and censure from the Italian government, including the start of a process to revoke the concession agreement. Investigations into the collapse are ongoing and we believe are unlikely to yield specific details of causality or financial liability to the company for some time. It is worth noting the concession agreement includes terms that, in the event the concession is revoked and Atlantia is found responsible, the Italian government will pay Atlantia the remaining value of the concession less 10% of the equity portion as a penalty. The company has so far expressed condolences to the victims, indicated 500 million euros is available for compensation and bridge re-building, and confirmed full compliance with all concession requirements, including maintenance and safety monitoring of the bridge. We have been in regular contact with Atlantia management and continue to monitor the situation closely. Another detractor during the period was PG&E after its share price fell due to concerns that the utility equipment of the company may have contributed to the spate of wildfires in northern California that occurred in early November 2018.

Annual Report  17

Lazard Global Realty Equity Portfolio

For the year ended December 31, 2018, the Lazard Global Realty Equity Portfolio’s Institutional Shares posted a total return of -11.86%, while Open Shares posted a total return of -12.14%, as compared with the -6.33% return for the MSCI ACWI IMI Core Real Estate^® Index.

The underperformance was due to both poor country and stock selection, with the negative impact weighted toward stock selection. Country selection negatively affected performance due to a general overweight within emerging markets, primarily Brazil, India, and Indonesia. Poor stock and sector selection was primarily concentrated in North America (Canada and United States) as those markets shifted toward defensive positioning which benefited longer-term leased sectors such as health care and triple net REITs. With the Portfolio’s less-than-benchmark exposure to those sectors due to lackluster property fundamentals and little earnings growth for the US-based healthcare REITs, performance lagged. Negative contributors to relative performance also included some emerging market-based companies, namely SOHO China, Times China, and Emaar Properties (UAE), and in one US company, Weyerhaeuser. While we view these companies as top-quality real estate companies that generated outsized cash flow growth within their respective regions, and trade at significant discounts to fair value, emerging markets were weaker throughout 2018 due to concerns of a global economic slowdown, trade tensions, government-enacted policies meant to curb property price appreciation in China, and lower oil prices in the UAE. As a result of the more negative macro sentiment in China, the Portfolio consolidated its Chinese exposure during the second half of 2018 by exiting Times China. Weyerhaeuser, meanwhile, was hurt by trade tensions, tariff concerns, and falling timber prices due to an oversupply in the market. This glut has begun to dissipate and with that shift, lumber prices have begun to recover.

From an individual stock perspective, the primary contributors to relative performance were Americold (United States, industrial), American Tower (United States, telecom/infrastructure), and Goodman Group (Australia, industrial). Americold, an owner of special-

18  Annual Report

ized cold storage industrial properties, benefited from strong execution post-IPO and increasing investor acceptance of the unique cold storage warehouse sector. As one of the largest global owners of telecommunication towers, American Tower continues to benefit from the strong growth in data transmission and the move to 5G throughout the globe and is posting among the highest levels of earnings growth among US-domiciled REITs. Meanwhile, Goodman Group, a global player in industrial warehouses, is benefiting from the increasing demand for logistics-oriented properties due to e-commerce and global trade.

Lazard Global Strategic Equity Portfolio

For the year ended December 31, 2018, the Lazard Global Strategic Equity Portfolio’s Institutional Shares posted a total return of -9.16%, while Open Shares posted a total return of -9.39%, as compared with the -9.42% return for the MSCI ACWI.

Stock selection benefited relative performance during the year. In the communications services sector, media and entertainment companies, French video company, Ubisoft, and American video company, Activision, both had good starts to the year before being sold off in the fourth quarter, while South African multinational internet and media group, Naspers, suffered due to its holding in Tencent. In the industrials sector, capital goods company, Bunzl, performed well with its solid balance sheet and strong cash flows supporting the stock, while the professional publisher RELX also held up well. In New Zealand, a private equity bid for Trade Me, the largest internet auction website operating in New Zealand, helped to validate our view that the stock was undervalued. In the financials sector, our holding in Intercontinental Exchange performed well, as the company benefited from greater market volatility.

On the negative side, the Portfolio’s energy holdings, EOG, Suncor, and Halliburton, were perceived as linked to the falling oil price, and on a relative basis, the Portfolio was hurt by its low exposure to the utilities sector. In the consumer discretionary sector, luxury watchmaker, Swatch, fell on cyclical concerns despite having a very strong balance sheet while Techtronic, a designer and manufacturer of power tools and outdoor power equipment, fell on weak

Annual Report  19

results from the United States. Our Japanese small cap holdings, Digital Garage and TechnoPro, were hurt on cyclical concerns despite giving solid results. Within emerging markets, Indian bank ICICI recovered from market jitters helped by currency stabilization and solid results.

New Fund Launched: Lazard International Compounders Portfolio

We are pleased to announce the December 31, 2018 launch of the Lazard International Compounders Portfolio. Fund commentary is not available at this time due to the short interval between the Portfolio’s inception date and the end date of the period covered by this annual report. However, we look forward to providing you with a performance review of this Portfolio in the next Lazard Funds annual report.

Lazard International Equity Advantage Portfolio

For the year ended December 31, 2018, the Lazard International Equity Advantage Portfolio’s Institutional Shares posted a total return of -16.26%, while Open Shares posted a total return of -16.52%, as compared with the -13.79% return for the MSCI EAFE Index.

Adverse stock selection accounted for the year’s underperformance. The Portfolio underperformed the MSCI EAFE Index in seven of eleven sectors, and was hurt primarily by holdings in the consumer discretionary, materials, and information technology sectors. Health care and consumer staples sector holdings added value in the year. Regionally, stock selection was strongest in Asia ex-Japan, but lagged in Europe, including the United Kingdom. Our residual cash position helped to mitigate negative returns. Lazard’s factor family (factors used in quantitative analysis and the weight placed on those factors) performance was mixed, as value provided favorable results offset by weakness in sentiment and growth.

Detractors for the year included Covestro, the German chemicals company, which struggled in the year with the uncertain global economic outlook. Their proprietary polyurethane precursor product, TDI, is facing new competition from two rival chemical firms, which will place pressure on prices. They issued a profit warning in

20  Annual Report

November, further depressing the stock. Continental AG, the German tire manufacturer, issued a profit warning in August after their second quarter conference call warning of lower margins and revenues across all of their divisions. The timing disappointed analysts who downgraded the stock. With the outlook for auto sales remaining uncertain, the stock has continued to sell off. Deutsche Lufthansa also disappointed, as the airline’s focus remains on cutting costs to preserve profit, as fare growth is slight at best while fuel costs are rising. Strong competition from low-cost airlines in Europe and national carriers in Asia and the Middle East is pressuring fares to all regions.

Stocks that contributed to the Portfolio’s return included CSL, as the Australian biotech giant was one of the Portfolio’s largest active positions. Demand for the company’s hemophilia drug and other higher margin offerings, including plasma protein therapies, remains high. The company retains a dominant market position and its growth continues to outpace its competitors. We have trimmed our overweight modestly over the course of the year. Elsewhere, Evraz, the UK-listed Russian steel producer, posted strong results during the year and has a significant dividend yield of 15%. The price of vanadium, which is used in the manufacture of various auto components, increased during the year and a healthy steel market backdrop aided rapid deleveraging and higher shareholder returns. Finally, Saracen Mineral Holdings, the Australian gold mining concern, enjoyed strong returns notably in the last quarter as gold prices surged with some investors exiting stocks in favor of tangible assets. The company maintains extensive reserves, which should allow it to meet its ambitious growth targets.

Lazard International Equity Concentrated Portfolio

For the year ended December 31, 2018, the Lazard International Equity Concentrated Portfolio’s Institutional Shares posted a total return of -16.20%, while Open Shares posted a total return of -16.47%, as compared with the -14.20% return for the MSCI ACWI ex-US.

Annual Report  21

In a very volatile year, performance for the Portfolio was the result of a combination of some significant wins and losses in individual stocks, as one would expect in a concentrated portfolio. However, the effect of stock selection explains slightly less than half of the underperformance against the benchmark, with most of the underperformance explained by allocation (i.e. stock weighting). The Portfolio was negatively affected by some problematic stocks, which detracted from performance. Three of the four stocks were sold in the year, as the team judged that the investment thesis had been violated. In the communication services sector, our holding in Turkcell fell sharply, although the main driver of this was the acute depreciation of the Turkish Lira, as the country battled a material current account deficit and erratic political leadership. The son-in-law of President Erdogan was appointed the head of the Turkish central bank during the period, which led the market to question the independence of the central bank, triggering the violent selling of the currency. We believe Turkcell management actually executed well during the period, and the business model proved relatively defensive when compared with other sectors including banks, but this was not enough to offset the difficult macro situation in Turkey created by President Erdogan.

French global automotive supplier, Valeo, which has been a long term (and largely successful) holding in the Portfolio, was also sold in the period as our thesis, specifically that growth in the order book would lead to impressive organic growth in revenues and operating profit, was challenged by some uncharacteristically weak quarterly numbers. Despite detailed work, we were not able to reconcile the relationship of orders to revenues, and weak cash conversion also represented a problem. We think, given this, Valeo will struggle to meet its medium-term financial targets and we will assess the stock again after this potential disappointment.

Lastly, our holding in British American Tobacco (“BAT”) fell as a combination of high leverage after the Reynolds acquisition, fears about disruption from vaping products including Juul, and the Food and Drug Administration’s attempt to ban menthol cigarettes hit the stock. We still believe vaping will be incremental to overall nicotine demand and that BAT will launch a competitive product

22  Annual Report

with an attractive form factor, but in the short term, it could be a headwind. The stance of the FDA has not been helpful for BAT shareholders. For the first time, the availability of vaping products means that the FDA’s threat to reduce nicotine content in cigarettes must be taken seriously. Addicted consumers can now satisfy their craving in a less harmful way. BAT is threatened by any action on menthol cigarettes, since after the Reynolds acquisition around 15% of operating profit comes from menthol, mostly under the Newport brand. Our scenario analysis showed an increased probability of a more acute bear case scenario, where falling operating profit would combine with this higher financial leverage, and have an adverse effect on equity value, hence the team decided to exit the position.

On the positive side, stock selection in the industrials sector was very helpful to overall performance. Two stocks in particular, Safran and Wolters Kluwer (“Wolters”), contributed over 2.5% to outperformance. Safran, the French Aerospace engine manufacturer, appreciated materially after the firm successfully ramped up deliveries of the LEAP engine. Our investment thesis, that a greater proportion of aftermarket engines spares and supplies in the overall business mix would enhance financial profitability and stability, gained a greater appreciation among the investing community. Safran’s performance was enhanced by the successful integration of Zodiac Aerospace, an underperforming manufacturer of aerospace seating. Our impression was that Zodiac Aerospace was undermanaged and had a relatively simple product when compared with the equipment typically made by Safran. This has been supported by recent results, which indicate a rapid turnaround at Safran is underway. Netherlands professional publisher, Wolters, is a very different business model to Safran, although the essence of the investment thesis was similar. Wolters, like Safran, was experiencing a change in its mix of business, which we were able to identify before a majority of market participants. This change in mix would, we believed, lead Wolters to be a company with faster organic growth, better margins, and a more stable recurring business model. The specific business mix change at Wolters was the transition from print to digital. As print subscriptions declined, and digital subscriptions increased, the overall organic growth of the

Annual Report  23

business accelerated. This is relatively simple, but was poorly understood by the market, in our view. In addition, we have very high regard for Wolters digital products, which are typically software packages that automate and simplify professional services including law, medical services, and accounting. They are almost indispensable and natural monopolies, making them very highly profitable, stable businesses. Wolters has lower financial productivity when compared with Safran, but had a very pronounced positive multiple rerating. We have maintained our position in Safran, but sold our position in Wolters in the year, as it reached our target price during the period.

Stock picking in the health care and information technology sectors was also helpful. Medtronic, a Dublin-based but US-focused medical device company, had a much better period of execution in 2018, vindicating our decision to add to the stock during the challenging year before. The company showed the formula of mid-single digit organic growth and positive operating leverage from the fixed selling, general and administrative expenses base of sales people was intact. The execution was not remarkable, but the very low valuation of the company when compared with medical device company peers showed it was priced for disappointment, while we view Medtronic as a great business led by a decent management team. In the information technology sector, our holdings in SAP, the German enterprise software company, Taiwan Semiconductor, a Taiwan-based manufacturer of semiconductors, and Digital Garage, the Japan context company, were also helpful to relative return.

Lazard International Equity Portfolio

For the year ended December 31, 2018, the Lazard International Equity Portfolio’s Institutional Shares posted a total return of -13.61%, while Open Shares posted a total return of -13.83%, and R6 Shares posted a total return of -13.62%, as compared with the -13.79% return for the MSCI EAFE Index.

Stock selection in the consumer staples sector detracted from relative returns. British American Tobacco declined as a potential ban of menthol in the US combustibles market made the potential for significant earnings per share contraction more of a reality. For several quarters, we had thought the growth algorithm in the com-

24  Annual Report

bustible business (revenues lost from modest volume declines were more than offset by revenues gains by price increases) remained generally intact, despite a short-term larger volume setback early in the year, and the stock represented good relative value. However, due to the fact that management had more recently appeared less confident in their margin outlook, along with the potential menthol ban and high financial leverage in the business model, we deemed the thesis impaired and sold the stock. In the energy sector, the Canadian integrated oil sands and refinery company, Suncor, lagged on the back of a very weak commodity. With cash operating costs below $50/barrel, however, we believe Suncor will continue to generate significant free cash flow. Management spent the past several years repositioning their portfolio by selling highly valued infrastructure and renewables as well as downstream assets and buying cheap, synergistic oil assets. Total operating costs continue to decline while production growth remains steady amidst declining capital expenditures. This capital allocation model allows Suncor to be one of the rare large energy companies with the ability to buy back stock and increase their dividend. Lastly, the Portfolio’s lower-than-benchmark weights in the utilities and health care sectors detracted from relative returns.

In contrast, stock selection in the consumer discretionary sector was among the largest drivers of relative returns. Don Quijote, a Japanese discount retailer that focuses on lower cost household items to drive store traffic, performed well, rising almost 20%. The company announced a favorable, significant transaction with FamilyMart involving Don Quijote taking full control of FamilyMart’s struggling Uny chain of stores, while FamilyMart made a tender offer for 20% of Don Quijote shares in the market. Elsewhere, stock selection in the financials sector was additive to relative returns. Aon, the global insurance broker domiciled in the United Kingdom, helped performance during the year. This long-term holding has demonstrated the ability to generate strong free cash flow from operating leverage derived from improving organic growth and disciplined spending and capital allocation. The rising free cash flow has been used for sizable and consistent share buybacks. More recently, investors have rewarded the stock for the increasingly consistent level of organic revenue growth. Also in the finan-

Annual Report  25

cial services sector, DBS Group Holdings, Singapore’s largest bank, outperformed. Our original thesis was predicated on an increase in net interest margins and fading bad debt charges. In a year when most US and European banks saw significant multiple compression, DBS outperformed with higher margins resulting from a consistent focus on increasing digitization, improving credit quality, and solid loan demand. Stock selection in the health care sector was also beneficial to relative returns as shares of Medtronic, the Irish-domiciled global leader in medical devices, positively impacted performance. Our thesis of improving revenue growth from new product launches coupled with margin expansion from an increased focus on costs continued to play out.

Lazard International Equity Select Portfolio

For the year ended December 31, 2018, the Lazard International Equity Select Portfolio’s Institutional Shares posted a total return of -14.90%, while Open Shares posted a total return of -15.16%, as compared with the -14.20% return for the MSCI ACWI ex-US.

Stock selection in the consumer staples sector detracted from relative returns. BAT declined as the sensitivities around the potential ban of menthol in the US combustibles market made the potential for significant earnings per share contraction more of a reality. For several quarters, we had thought the growth algorithm in the combustible business (revenues lost from modest volume declines were more than offset by revenues gained by price increases) remained generally intact, despite a short-term volume setback early in the year, and the stock represented good relative value. However, due to the fact that management had more recently appeared less confident in their margin outlook, along with the potential menthol ban and high financial leverage of the business model, we deemed the thesis impaired and sold the stock. In the energy sector, the Canadian integrated oil sands and refinery company, Suncor, lagged on the back of a very weak commodity. With cash operating costs below $50/barrel, however, we believe Suncor will continue to generate significant free cash flow. Management spent the past several years repositioning their portfolio by selling highly valued infrastructure and renewables as well as downstream assets and buying cheap, synergistic oil assets. Total operat-

26  Annual Report

ing costs continue to decline while production growth continues amidst declining capital expenditures. This capital allocation model allows Suncor to be one of the rare large energy companies with the ability to buy back stock and increase their dividend. Additionally, the Portfolio’s lower-than-benchmark weight to the outperforming energy sector detracted from relative returns.

In contrast, stock selection in the financials sector was among the largest drivers of relative returns during the year. After a period of deteriorating credit quality, Indian bank ICICI Bank’s problem assets, in our view, have peaked and should begin to fall. As domestic loans increase relative to the total, these higher margin loans should also provide a tailwind for net interest margins. As a beneficiary of the recent liquidity squeeze in Indian markets resulting from the debt default from a non-bank financial competitor, the path to a mid-teens return on equity is clearer and should drive the book value multiple higher as a result. Elsewhere, Aon, the global insurance broker domiciled in the United Kingdom, helped performance during the year. This long-term holding has demonstrated the ability to generate strong free cash flow from operating leverage derived from improving organic growth and disciplined spending and capital allocation. The rising free cash flow has been used for sizable and consistent share buybacks. More recently, investors have rewarded the stock for the increasingly consistent level of organic revenue growth, which has enabled the compounding effect of the company’s solid return on equity of nearly 20%. Also in the sector, DBS Group Holdings, Singapore’s largest bank, outperformed. Our original thesis was predicated on an increase in net interest margins and fading bad debt charges. In a year when most US and European banks saw significant multiple compression, DBS outperformed with higher margins resulting from a consistent focus on increasing digitization, improving credit quality, and solid loan demand. Stock selection in the health care sector was also beneficial to relative returns as shares of Medtronic, the Irish-domiciled global leader in medical devices, positively impacted performance. Our thesis of improving revenue growth from new product launches coupled with margin expansion from an increased focus on costs continued to play out.

Annual Report  27

Lazard International Equity Value Portfolio

Since inception on October 31, 2018, the Lazard International Equity Value Portfolio’s Institutional Shares posted a total return of -8.49%, while Open Shares posted a total return of -8.63%, as compared with the -4.97% return for the MSCI EAFE Index.

Great Canadian Gaming (“GC”), the largest casino operator in Canada, contributed to performance in the fourth quarter. When we invested in GC, the company had just won a large contract to operate and redevelop casinos in the Greater Toronto Area (“GTA”). This contract consisted of three gaming facilities with 4,300 slot machines, 60 table games, and 2,200 staff. After extensive due diligence, we invested in this under-followed stock because we believed the GTA opportunity to redevelop and dramatically expand the gaming facilities would prove much larger than other investors expected. At the time, we conservatively estimated the GTA was worth more than 60% of the company’s market cap and felt it would be a matter of “when not if” other investors began to properly value these new operations.

During the period, GC reported quarterly results that were significantly higher than expectations. In line with our thesis, GTA operations were the key driver of significant sales and profit growth. We were particularly pleased to see that this growth was achieved despite the fact that GC’s redevelopment plans are in the very early stages of execution. We believe the upside potential from the GTA remains much larger than many other investors appreciate. As redevelopment plans progress, operational efficiency improves and additional gaming capacity comes on line, we think the value of GC will continue to climb. As of year-end, we remained holders of the stock.

Genting Malaysia (“Genting”), the country’s largest casino operator, was a large detractor from performance in the period. We invested in Genting because we believed the transformation of its core Highlands casino facility into a world-class gaming and entertainment resort would generate high returns on capital. The final phase of this capital allocation-based catalyst was the planned

28  Annual Report

opening of a 20th Century Fox (“Fox”) theme park—the only one of its kind in Asia, early in 2019.

In November, however, Genting suffered from two events that invalidated our investment thesis. First, the government’s planned gaming tax increase was set at a significantly higher rate than expected (41%, the highest effective gaming tax in Asia). Second, Fox announced it was pulling out of the theme park project. We believe these developments will result in lower returns, less cash flow, and, very likely, significant write-downs (as Genting now has a theme park with no theme). We exited the position in the fourth quarter.

Lazard International Small Cap Equity Portfolio

For the year ended December 31, 2018, the Lazard International Small Cap Equity Portfolio’s Institutional Shares posted a total return of -24.88%, while Open Shares posted a total return of -25.09%, as compared with the -17.89% return for the MSCI EAFE Small Cap^® Index.

Stock selection in all major regions detracted from performance, particularly in Japan, Asia ex-Japan, and Continental Europe. On a sector basis, stock selection’s contribution to performance in industrials and materials was more than offset by stock selection in consumer discretionary, real estate, and health care. Some of the names that affected performance during the year include Speed-Cast, an Australian-listed provider of satellite-based communication network services, which detracted from performance during the year. In August, the company guided full-year numbers below previous expectations. The guidance, coupled with higher debt levels due to an acquisition, led to a pullback in the shares. After speaking with management, the Portfolio team reviewed the position and actually added to the holding. Taptica International, a London-listed, Israel-based provider of online advertising solutions also detracted for the year. The company has made a number of strategic acquisitions and now operates on a global basis. Its shares were impacted early in the year by market concerns related to Facebook’s data privacy issues. The stock fell further in the fourth quarter after the CEO resigned for matters unrelated to his posi-

Annual Report  29

tion. We exited our Taptica position to make room for new investment candidates with better risk/reward characteristics.

On the positive side, Aroundtown, a German-listed real estate company which acquires assets at attractive yields and over time improves those assets to earn higher rents and returns, contributed to the year’s performance. The company reported strong progress on its pace of investments as well as positive first-half results, which helped propel the stock. We continue to hold the shares. JTC PLC is a UK-based provider of administrative services to institutional and private clients in the investment management industry. The stock performed well in the fourth quarter, apparently on investor recognition of the company’s stable business model and defensive characteristics in an otherwise weak market environment.

Lazard International Strategic Equity Portfolio

For the year ended December 31, 2018, the Lazard International Strategic Equity Portfolio’s Institutional Shares posted a total return of -10.35%, while Open Shares posted a total return of -10.55%, and R6 Shares posted a total return of -10.35%, as compared with the -13.79% return for the MSCI EAFE Index.

The Portfolio’s outperformance in the year was driven by stock selection. In the consumer discretionary sector, Japanese media company, CyberAgent, rerated as investors took a less negative view on its Abema TV business, and games company, Ubisoft, saw very strong progress in an improving industry environment. Information technology company, Accenture, continued to benefit from digital transformation programs, while the Portfolio’s professional services companies, RELX and Wolters Kluwer, and aerospace supplier, Safran, held up well. In the consumer discretionary sector, Japanese discounter, Don Quijote, entered a significant positive transaction with convenience store rival FamilyMart. In the financials sector, while Julius Baer and Prudential PLC were hurt by weak financial markets, uncorrelated bank, DBS, was strong, as was insurance broker, Aon and the emerging market banks, Housing Development Finance Corp., ICICI (India) and Ping An (China). European Coca-Cola bottler Coca-Cola European Partners, saw strong trading partly as a result of the warm summer weather.

30  Annual Report

On the negative side, tobacco company BAT was hurt by regulatory pressure from the FDA, specifically the proposal to ban menthol cigarettes, as well as continued volume pressure. In the energy sector, New Zealand petrol supply company, Z Energy, was hurt by rising competition. Despite encouraging results from medical devices stock, Medtronic, the Portfolio was hurt on a relative basis by its low exposure to large pharmaceutical stocks, and to the utilities sector, which performed strongly as the market weakened. French building materials stock, Cie de Saint-Gobain, fell on cyclical fears, while Chinese internet companies, 58.com and CTrip.com saw rising competition.

Lazard Managed Equity Volatility Portfolio

For the year ended December 31, 2018, the Lazard Managed Equity Volatility Portfolio’s Institutional Shares posted a total return of -7.21%, while Open Shares posted a total return of -7.50%, as compared with the -8.71% return for the MSCI World Index.

Stock selection and sector allocations were both favorable during the year. Less-than-benchmark exposure to financials and greater-than-benchmark exposure to the utilities sector provided the greatest value in terms of sector positioning. This was partially offset by less-than-benchmark exposure to the information technology sector and greater-than-benchmark exposure to the industrials sector. Regionally, less-than-benchmark exposure to Japan and Germany benefited relative performance, while greater-than-benchmark exposure to Canada and less-than-benchmark exposure to the United States detracted. Stock selection was favorable in six of eleven sectors led by holdings in the consumer staples and financials sectors. Consumer discretionary and information technology holdings lagged the benchmark.

Stocks that contributed to the Portfolio’s 2018 return included Eli Lilly, as the US drug manufacturer reported a third quarter largely in line with expectations despite a drop in US revenue. Pricing difficulties in their insulin business appeared to stabilize and this encouraged investors. CSL Limited, an Australian global specialty biotechnology company, was a standout performer for the year. Their subsidiary, Seqirus, a global leader in influenza vaccine inno-

Annual Report  31

vation, announced FDA approval of its next generation cell-based manufacturing process, which will enable Seqirus to more than double current production levels for supply in the 2019-2020 influenza season. After struggling for several years, Procter & Gamble, an American multinational consumer goods corporation, appears to have regained its momentum with a strong pick-up in US sales, the most profitable component of its business. A strong third quarter and encouraging channel checks led to a number of upgrades to the stock. The defensive character of their business was also appealing to investors in light of the market weakness.

Detractors for the year included Danske Bank. The Danish bank’s share price fell as investor concerns over improving European growth and accompanying higher interest rates, which boost bank profitability, faded. A money laundering scandal in their Estonia branch also is weighing on the stock. We sold our position during the year. Covestro AG, the German chemicals company, struggled with the uncertain global economic outlook. Their proprietary polyurethane precursor product,TDI, is facing new competition from two rival chemical firms, which will place pressure on prices. They issued a profit warning in November, further depressing the stock. Deutsche Lufthansa also disappointed as the airline’s focus remains on cutting costs to preserve profit, as fare growth was slight at best while fuel costs are rising. Strong competition from low-cost airlines in Europe and national carriers in Asia and the Middle East is pressuring fares to all regions.

Lazard US Equity Concentrated Portfolio

For the year ended December 31, 2018, the Lazard US Equity Concentrated Portfolio’s Institutional Shares posted a total return of -6.07%, while Open Shares posted a total return of -6.35%, and R6 Shares posted a total return of -6.08%, as compared with the -4.38% return for the S&P 500 Index.

A position in chipmaker Skyworks detracted from returns, as shares fell after management guided for a weak December amid uncertainty in global handset markets. The Portfolio was also hurt by its position in Molson Coors, as shares were impacted by weaker-than-expected industry volumes and a sector rotation away

32  Annual Report

from consumer staples in the first half of the year, compounded by operational issues and weak performance in the United States. However, the company’s third quarter results did show solid pricing and margin improvement in the United States. A position in eBay also hurt performance, as shares fell, as the company’s structured data initiative has not been driving as many benefits as anticipated. Management subsequently reset its strategy around these realities, which encouraged investors.

In contrast, a position in communications equipment maker Motorola Solutions contributed to performance during the year, as shares rose as the company continued to execute on its evolution from a hardware company to one focused on providing a public safety platform, which has been driving recurring software and services revenues. A position in Coca-Cola also helped returns, as shares rose after the company reported strong earnings in the latter half of the year, driven by strong organic sales growth, refranchising, and ongoing productivity initiatives. The Portfolio was also helped by its position in medical device maker Medtronic, as shares rose as the company experienced strong organic revenue growth throughout the year with robust sales across all business lines, with the standout line being the company’s diabetes products. The market has also been enthusiastic about Medtronic’s pipeline and emerging markets footprint.

Lazard US Equity Select Portfolio

For the year ended December 31, 2018, the Lazard US Equity Select Portfolio’s Institutional Shares posted a total return of -3.12%, while Open Shares posted a total return of -3.40%, and R6 Shares posted a total return of -3.13%, as compared with the -4.38% return for the S&P 500 Index.

Stock selection and an overweight position in the information technology sector contributed to performance. Shares of communications equipment maker Motorola Solutions rose as the company continued to execute on its evolution from a hardware company to one focused on providing a public safety platform, which has been driving recurring software and services revenues. Stock selection in the health care sector also helped returns. Shares of medical device

Annual Report  33

maker Medtronic rose as the company experienced strong organic revenue growth throughout the year with robust sales across all business lines, with the standout being its diabetes products.

In contrast, stock selection in the consumer discretionary sector detracted from performance. Shares of eBay fell, as the company’s structured data initiative has not been driving as many benefits as hoped. Management subsequently reset its strategy around these realities, which encouraged investors. Stock selection and an overweight position in the financials sector also hurt returns. Shares of lenders, including Citizens Financial and SunTrust, fell amid uncertainty around the Fed’s path of interest rate increases.

Lazard US Realty Equity Portfolio

For the year ended December 31, 2018, the Lazard US Realty Equity Portfolio’s Institutional Shares posted a total return of -7.77%, while Open Shares posted a total return of -8.06%, as compared with the -4.33% return for the MSCI USA IMI Core Real Estate Index.

The majority of the Portfolio’s underperformance stemmed from sector positioning rather than stock selection. From a sector allocation perspective, the less-than-benchmark exposure to health care and triple net REITs compromised performance as those sectors benefited from the market’s sentiment shift to a more “risk-off” posture due to the longer lease structures within those sectors. These underweights particularly hurt relative performance during the fourth quarter when the market shifted to a more risk-off environment. From a stock perspective, Weyerhaeuser Corporation, General Growth Properties (“GGP”) and Equinix (“EQIX”) hurt relative performance the most during the period. Weyerhaeuser, a timber REIT, struggled due to tariff tensions and weakening in lumber prices. We remain encouraged by the company’s ability to accrue timber value by aging trees in the absence of lumber demand or near-term price increases. With a high performing regional mall portfolio, we had expected GGP to achieve better pricing on the sale of the company which ultimately went to Brookfield Property Partners. As such, we exited the position after the sale announcement. Meanwhile, EQIX, a data center REIT, sold off in concert with broader technology company weakness even though underlying

34  Annual Report

business growth remains robust and at rates exceeding the average REIT.

In contrast, the Portfolio’s continued greater-than-benchmark exposure to residential REITs helped performance, as that sector benefits when renting is more attractive than home ownership (in the current case, due to rising mortgage interest rates). Americold Realty Trust (“COLD”), American Tower and Equity LifeStyle Properties contributed the most to relative performance during the year, as all three companies are executing well and have strong growth drivers. In particular, COLD benefited from strong execution post-IPO and increasing investor acceptance of the unique cold storage warehouse sector.

Lazard US Small-Mid Cap Equity Portfolio

For the year ended December 31, 2018, the Lazard US Small-Mid Cap Equity Portfolio’s Institutional Shares posted a total return of -13.27%, while Open Shares posted a total return of -13.49%, as compared with the -10.00% return for the Russell 2500^® Index.

Stock selection in the consumer discretionary sector detracted from performance. Shares of household appliance maker Whirlpool fell after the company reported disappointing second-quarter results, hurt by weakness in its businesses in the United States, Europe, the Middle East, and Africa. We sold our position in October, as our thesis had changed. Stock selection in the energy sector also hurt returns. Shares of U.S. Silica fell after the company reported quarterly earnings generally below expectations, hurt by disappointing price and volume metrics in its oil and gas business. We sold our position in September, as our thesis had changed.

In contrast, stock selection in the industrials sector contributed to performance. Shares of FTI Consulting rose after the company reported quarterly earnings broadly above expectations, driven by strong performance across most of its businesses. Stock selection in the health care sector also helped performance. Shares of Evolent Health rose after the company reported broadly strong quarterly results and several new contracts.

Annual Report  35

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 DST Asset Manager Solutions, Inc., the Fund’s transfer and dividend disbursing agent (“DST”); 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, 2018, except as otherwise indicated; 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 for all periods through March 31, 2015, when the index ceased to be published, and the FTSE Developed Core Infrastructure 50/50^® Index for all periods thereafter.

36  Annual Report

The Lazard Funds, Inc. Performance Overviews (unaudited)

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, 2018

	One Year	Five Years	Ten Years
Institutional Shares**	–20.58%	0.13%	8.42%
Open Shares**	–20.83%	–0.23%	8.07%
MSCI Emerging Markets Index	–14.58%	1.65%	8.02%

Annual Report  37

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, 2018

	One Year	Five Year	Since Inception	†
Institutional Shares**	–18.12%	1.03%	0.66%
Open Shares**	–18.43%	0.65%	0.30%
R6 Shares**	N/A	N/A	–17.52%
MSCI Emerging Markets Index	–14.58%	1.65%	1.02%
			(Institutional and Open Shares) –15.48% (R6 Shares)

† The inception date for the Institutional and Open Shares was October 31, 2013 and for the R6 Shares was April 6, 2018.

38  Annual Report

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, 2018

	One Year	Since Inception	†
Institutional Shares**	–16.23%	2.05%
Open Shares**	–16.40%	1.77%
MSCI Emerging Markets Index	–14.58%	1.35%

† The inception date for the Portfolio was May 29, 2015.

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, 2018

	One Year	Five Years	Since Inception	†
Institutional Shares**	–21.05%	–0.65%	1.35%
Open Shares**	–21.39%	–0.96%	1.04%
MSCI Emerging Markets Index	–14.58%	1.65%	2.93%

† The inception date for the Portfolio was May 28, 2010.

Annual Report  39

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, 2018

	One Year	Five Years	Ten Years		Since Inception	†
Institutional Shares**	–18.09%	–0.67%	7.25%		6.20%
Open Shares**	–18.32%	–0.92%	6.94%		5.88%
R6 Shares**	–18.09%	N/A	N/A		0.12%
MSCI Emerging Markets Index	–14.58%	1.65%	8.02%		5.14%
				(Institutional Shares) 5.65%
				(Open Shares) 2.62%
				(R6 Shares)

† 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.

40  Annual Report

Lazard Equity Franchise Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Equity Franchise Portfolio and MSCI World^® Index*

Average Annual Total Returns*

Periods Ended December 31, 2018

	One Year	Since Inception	†
Institutional Shares**	–5.10%	–0.85%
Open Shares**	–5.34%	–1.10%
MSCI World Index	–8.71%	–2.96%

† The inception date for the Portfolio was September 29, 2017.

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, 2018

	One Year	Five Years	Since Inception	†
Institutional Shares**	–7.12%	5.03%	5.03%
Open Shares**	–7.33%	4.73%	4.73%
MSCI ACWI	–9.42%	4.26%	4.26%

† The inception date for the Portfolio was December 31, 2013.

Annual Report  41

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, 2018

	One Year	Five Years	Since Inception	†
Institutional Shares**	–3.73%	10.38%	11.05%
Open Shares**	–3.98%	10.09%	10.72%
Global Listed Infrastructure Index (USD Hedged)	2.56%	9.38%	9.04%
MSCI World Index	–8.71%	4.56%	7.61%

† The inception date for the Portfolio was December 31, 2009.

42  Annual Report

Lazard Global Realty Equity Portfolio

Comparison of Changes in Value of $10,000 Investment in the Open Shares of Lazard Global Realty Equity Portfolio and MSCI ACWI REITs^® Index*

Average Annual Total Returns*

Periods Ended December 31, 2018

	Institutional Shares				Open Shares
	One Year	Five Years	Since Inception	†	One Year	Five Years	Since Inception	†
Global Realty Equity Portfolio**	–11.86%	2.86%	7.47%		–12.14%	2.54%	10.73%
MSCI ACWI REITs Index	–5.88%	5.90%	8.09%		–5.88%	5.90%	9.60%
MSCI ACWI IMI Core Real Estate® Index	–6.33%	N/A	N/A		–6.33%	N/A	N/A

† The inception date for the Institutional Shares was September 26, 2011 and for the Open Shares was December 31, 2008.

Annual Report  43

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, 2018

	One Year	Since Inception	†
Institutional Shares**	–9.16%	2.25%
Open Shares**	–9.39%	1.93%
MSCI ACWI	–9.42%	3.26%

† The inception date for the Portfolio was August 29, 2014.

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, 2018

	One Year	Since Inception	†
Institutional Shares**	–16.26%	–0.95%
Open Shares**	–16.52%	–1.25%
MSCI EAFE Index	–13.79%	–0.16%

† The inception date for the Portfolio was May 29, 2015.

44  Annual Report

Lazard International Equity Concentrated Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Equity Concentrated Portfolio and MSCI ACWI ex-US*

Average Annual Total Returns*

Periods Ended December 31, 2018

	One Year	Since Inception	†
Institutional Shares**	–16.20%	–2.20%
Open Shares**	–16.47%	–2.47%
MSCI ACWI ex-US	–14.20%	–0.37%

† The inception date for the Portfolio was August 29, 2014.

Annual Report  45

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, 2018

	One Year	Five Years	Ten Years	Since Inception	†
Institutional Shares**	–13.61%	–0.23%	6.29%	5.42%
Open Shares**	–13.83%	–0.49%	6.00%	4.14%
R6 Shares**	–13.62%	N/A	N/A	–0.67%
MSCI EAFE Index	–13.79%	0.53%	6.32%	4.85%
				(Institutional
				Shares)
				4.31%
			(Open Shares)
				0.74%
				(R6 Shares)

† 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.

46  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, 2018

	One Year	Five Years	Ten Years
Institutional Shares**	–14.90%	0.02%	5.47%
Open Shares**	–15.16%	–0.34%	5.13%
MSCI ACWI ex-US	–14.20%	0.67%	6.57%
MSCI EAFE/ACWI ex-US Linked Index	–14.20%	0.67%	5.56%

Lazard International Equity Value Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2018

	Since Inception	†
Institutional Shares**	–8.49%
Open Shares**	–8.63%
MSCI EAFE Index	–4.97%

† The inception date for the Portfolio was October 31, 2018.

Annual Report  47

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, 2018

	One Year	Five Years	Ten Years
Institutional Shares**	–24.88%	0.85%	9.39%
Open Shares**	–25.09%	0.58%	9.08%
MSCI EAFE Small Cap Index	–17.89%	3.06%	10.51%

48  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, 2018

	One Year	Five Years	Ten Years	Since Inception	†
Institutional Shares**	–10.35%	1.03%	8.06%	5.42%
Open Shares**	–10.55%	0.78%	7.78%	4.08%
R6 Shares**	–10.35%	N/A	N/A	1.68%
MSCI EAFE Index	–13.79%	0.53%	6.32%	3.50%
				(Institutional
				Shares)
				2.54%
			(Open Shares)
				2.44%
				(R6 Shares)

† 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  49

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, 2018

	One Year	Since Inception	†
Institutional Shares**	–7.21%	4.27%
Open Shares**	–7.50%	3.93%
MSCI World Index	–8.71%	3.54%

† The inception date for the Portfolio was May 29, 2015.

50  Annual Report

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, 2018

	One Year	Five Years	Ten Years	Since Inception	†
Institutional Shares**	–6.07%	8.18%	11.94%	7.23%
Open Shares**	–6.35%	7.83%	11.59%	6.91%
R6 Shares**	–6.08%	N/A	N/A	3.99%
S&P 500 Index	–4.38%	8.49%	13.12%	7.77%
				(Institutional
				and
				Open Shares)
				8.93%
				(R6 Shares)
Russell 1000 Value/S&P 500 Linked Index	–4.38%	8.49%	12.14%	7.01%
				(Institutional
				and
				Open Shares)
				N/A
				(R6 Shares)

† The inception date for the Institutional and Open Shares was September 30, 2005 and for the R6 Shares was November 15, 2016.

Annual Report  51

Lazard US Equity Select Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Equity Select Portfolio and S&P 500 Index*

 

Average Annual Total Returns*

Periods Ended December 31, 2018

	One Year	Five Years	Ten Years		Since Inception	†
Institutional Shares**	–3.12%	6.59%	11.54%		6.39%
Open Shares**	–3.40%	6.28%	11.21%		6.08%
R6 Shares**	–3.13%	N/A	N/A		6.59%
S&P 500 Index	–4.38%	8.49%	13.12%		7.53%
				(Institutional and Open Shares) 8.64% (R6 Shares)

† The inception date for the Institutional and Open Shares was December 30, 2004 and for the R6 Shares was May 19, 2014.

52  Annual Report

Lazard US Realty Equity Portfolio

Comparison of Changes in Value of $10,000 Investment in the Open Shares of Lazard US Realty Equity Portfolio and MSCI US REIT^® Index*

 

Average Annual Total Returns*

Periods Ended December 31, 2018

	Institutional Shares				Open Shares
	One Year	Five Years	Since Inception	†	One Year	Five Years	Since Inception	†
US Realty Equity Portfolio**	–7.77%	6.63%	10.37%		–8.06%	6.33%	14.74%
MSCI US REIT Index	–5.83%	6.43%	8.60%		–5.83%	6.43%	10.75%
MSCI USA IMI Core Real Estate® Index	–4.33%	N/A	N/A		–4.33%	N/A	N/A

† The inception date for the Institutional Shares was September 26, 2011 and for the Open Shares was December 31, 2008.

Annual Report  53

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 and Russell 2500^® Index*

 

Average Annual Total Returns*

Periods Ended December 31, 2018

	One Year	Five Years	Ten Years
Institutional Shares**	–13.27%	4.64%	13.05%
Open Shares**	–13.49%	4.33%	12.71%
Russell 2500 Index	–10.00%	5.15%	13.15%

Notes to Performance Overviews:

*	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 DST; 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 US Generally Accepted Accounting Principles (“GAAP”), if any, and also exclude one-time adjustments related to reimbursed custodian out-of-pocket expenses (Note 3 in the Notes to Financial Statements) for Lazard International Small Cap Equity and Lazard US Small-Mid Cap Equity Portfolios and settlement proceeds received from class action lawsuits (Lazard Developing Markets Equity Portfolio Open Shares, Lazard International Equity and Lazard International Small Cap Equity Portfolios), 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 indices are unmanaged, have no fees or costs and are not avail-

54  Annual Report

able for investment.

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 markets country indices.

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 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 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 for all periods through March 31, 2015, when the index ceased to be published, and the FTSE Developed Core Infrastructure 50/50^® Index for all periods thereafter. The UBS Global 50/50 Infrastructure & Utilities Index 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 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 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 sector) according to the Global Industry Classification Standard (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 24 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 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 MSCI ACWI ex-US is a free-float-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 Lazard International Equity Select Portfolio’s benchmark index changed) and the MSCI ACWI ex-US for all periods thereafter.

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

Annual Report  55

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 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 Lazard US Equity Concentrated 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 1000 of the largest securities based on a combination of their market cap and current index membership.

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 GICS. It however excludes Mortgage REITs 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 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 3000 US companies, representing approximately 98% of the investable US equity market. The Russell 2500 Index includes approximately 2500 of the smallest securities based on a combination of their market cap and current index membership.

** 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.

56  Annual Report

The Lazard Funds, Inc.

Information About Your Portfolio’s Expenses (unaudited)

Expense Example

As a shareholder in a Portfolio of the Fund, you incur 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, 2018 through December 31, 2018 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  57

Portfolio	Beginning Account Value 7/1/18		Ending Account Value 12/31/18		Expenses Paid During Period* 7/1/18 - 12/31/18	Annualized Expense Ratio During Period 7/1/18 - 12/31/18
Developing Markets Equity
Institutional Shares
Actual	$	1,000.00	$	873.20	$5.43	1.15%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.41	$5.85	1.15%
Open Shares
Actual	$	1,000.00	$	872.00	$7.22	1.53%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.49	$7.78	1.53%
Emerging Markets Core Equity
Institutional Shares
Actual	$	1,000.00	$	893.60	$5.87	1.23%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.00	$6.26	1.23%
Open Shares
Actual	$	1,000.00	$	892.00	$7.39	1.55%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.39	$7.88	1.55%
R6 Shares
Actual	$	1,000.00	$	893.60	$5.58	1.17%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.31	$5.96	1.17%
Emerging Markets Equity Advantage
Institutional Shares
Actual	$	1,000.00	$	894.60	$5.25	1.10%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.66	$5.60	1.10%
Open Shares
Actual	$	1,000.00	$	893.60	$6.68	1.40%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.15	$7.12	1.40%

58  Annual Report

Portfolio	Beginning Account Value 7/1/18		Ending Account Value 12/31/18		Expenses Paid During Period* 7/1/18 - 12/31/18	Annualized Expense Ratio During Period 7/1/18 - 12/31/18
Emerging Markets Equity Blend
Institutional Shares
Actual	$	1,000.00	$	877.00	$5.49	1.16%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.36	$5.90	1.16%
Open Shares
Actual	$	1,000.00	$	874.50	$7.32	1.55%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.39	$7.88	1.55%
Emerging Markets Equity
Institutional Shares
Actual	$	1,000.00	$	929.10	$5.25	1.08%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.76	$5.50	1.08%
Open Shares
Actual	$	1,000.00	$	928.10	$6.46	1.33%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.50	$6.77	1.33%
R6 Shares
Actual	$	1,000.00	$	929.10	$5.25	1.08%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.76	$5.50	1.08%
Equity Franchise
Institutional Shares
Actual	$	1,000.00	$	935.50	$4.63	0.95%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.42	$4.84	0.95%
Open Shares
Actual	$	1,000.00	$	934.80	$5.85	1.20%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.16	$6.11	1.20%

Annual Report   59

Portfolio	Beginning Account Value 7/1/18		Ending Account Value 12/31/18		Expenses Paid During Period* 7/1/18 - 12/31/18	Annualized Expense Ratio During Period 7/1/18 - 12/31/18
Global Equity Select
Institutional Shares
Actual	$	1,000.00	$	917.50	$5.07	1.05%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91	$5.35	1.05%
Open Shares
Actual	$	1,000.00	$	916.90	$6.52	1.35%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.40	$6.87	1.35%
Global Listed Infrastructure
Institutional Shares
Actual	$	1,000.00	$	958.90	$4.69	0.95%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.42	$4.84	0.95%
Open Shares
Actual	$	1,000.00	$	957.10	$5.92	1.20%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.16	$6.11	1.20%
Global Realty Equity
Institutional Shares
Actual	$	1,000.00	$	911.90	$4.58	0.95%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.42	$4.84	0.95%
Open Shares
Actual	$	1,000.00	$	910.30	$6.02	1.25%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.90	$6.36	1.25%
Global Strategic Equity
Institutional Shares
Actual	$	1,000.00	$	908.40	$4.81	1.00%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.16	$5.09	1.00%
Open Shares
Actual	$	1,000.00	$	906.10	$6.25	1.30%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.65	$6.61	1.30%

60  Annual Report

Portfolio	Beginning Account Value 7/1/18		Ending Account Value 12/31/18		Expenses Paid During Period* 7/1/18 - 12/31/18	Annualized Expense Ratio During Period 7/1/18 - 12/31/18
International Equity Advantage
Institutional Shares
Actual	$	1,000.00	$	872.50	$4.25	0.90%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.67	$4.58	0.90%
Open Shares
Actual	$	1,000.00	$	871.50	$5.66	1.20%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.16	$6.11	1.20%
International Equity Concentrated
Institutional Shares
Actual	$	1,000.00	$	871.40	$4.48	0.95%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.42	$4.84	0.95%
Open Shares
Actual	$	1,000.00	$	870.30	$5.89	1.25%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.90	$6.36	1.25%
International Equity
Institutional Shares
Actual	$	1,000.00	$	887.90	$3.85	0.81%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.12	$4.13	0.81%
Open Shares
Actual	$	1,000.00	$	886.70	$5.09	1.07%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.81	$5.45	1.07%
R6 Shares
Actual	$	1,000.00	$	887.80	$3.81	0.80%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.17	$4.08	0.80%

Annual Report   61

Portfolio	Beginning Account Value 7/1/18		Ending Account Value 12/31/18		Expenses Paid During Period* 7/1/18 - 12/31/18	Annualized Expense Ratio During Period 7/1/18 - 12/31/18
International Equity Select
Institutional Shares
Actual	$	1,000.00	$	884.80	$5.13	1.08%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.76	$5.50	1.08%
Open Shares
Actual	$	1,000.00	$	882.80	$6.41	1.35%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.40	$6.87	1.35%
International Equity Value†
Institutional Shares
Actual	$	1,000.00	$	915.10	$1.52	0.95%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,006.77	$1.59	0.95%
Open Shares
Actual	$	1,000.00	$	913.70	$1.93	1.21%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,006.33	$2.03	1.21%
International Small Cap Equity
Institutional Shares
Actual	$	1,000.00	$	773.00	$5.05	1.13%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.51	$5.75	1.13%
Open Shares
Actual	$	1,000.00	$	771.40	$6.43	1.44%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.95	$7.32	1.44%

62  Annual Report

Portfolio	Beginning Account Value 7/1/18		Ending Account Value 12/31/18		Expenses Paid During Period* 7/1/18 - 12/31/18	Annualized Expense Ratio During Period 7/1/18 - 12/31/18
International Strategic Equity
Institutional Shares
Actual	$	1,000.00	$	894.80	$3.82	0.80%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.17	$4.08	0.80%
Open Shares
Actual	$	1,000.00	$	893.90	$5.06	1.06%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.86	$5.40	1.06%
R6 Shares
Actual	$	1,000.00	$	894.80	$3.82	0.80%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.17	$4.08	0.80%
Managed Equity Volatility
Institutional Shares
Actual	$	1,000.00	$	943.40	$3.67	0.75%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.42	$3.82	0.75%
Open Shares
Actual	$	1,000.00	$	941.30	$5.14	1.05%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91	$5.35	1.05%
US Equity Concentrated
Institutional Shares
Actual	$	1,000.00	$	915.40	$3.62	0.75%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.42	$3.82	0.75%
Open Shares
Actual	$	1,000.00	$	913.90	$5.02	1.04%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.96	$5.30	1.04%
R6 Shares
Actual	$	1,000.00	$	915.30	$3.62	0.75%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.42	$3.82	0.75%

Annual Report   63

Portfolio	Beginning Account Value 7/1/18		Ending Account Value 12/31/18		Expenses Paid During Period* 7/1/18 - 12/31/18	Annualized Expense Ratio During Period 7/1/18 - 12/31/18
US Equity Select
Institutional Shares
Actual	$	1,000.00	$	941.50	$3.67	0.75%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.42	$3.82	0.75%
Open Shares
Actual	$	1,000.00	$	939.60	$5.13	1.05%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91	$5.35	1.05%
R6 Shares
Actual	$	1,000.00	$	940.70	$3.67	0.75%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.42	$3.82	0.75%
US Realty Equity
Institutional Shares
Actual	$	1,000.00	$	920.80	$4.84	1.00%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.16	$5.09	1.00%
Open Shares
Actual	$	1,000.00	$	919.40	$6.24	1.29%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.70	$6.56	1.29%
US Small-Mid Cap Equity
Institutional Shares
Actual	$	1,000.00	$	832.70	$4.11	0.89%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.72	$4.53	0.89%
Open Shares
Actual	$	1,000.00	$	831.70	$5.59	1.21%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.11	$6.16	1.21%

*	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 October 31, 2018.

64  Annual Report

The Lazard Funds, Inc.

Portfolio Holdings Presented by Asset Class/Sector December 31, 2018

Asset Class/Sector*	Lazard Developing Markets Equity Portfolio			Lazard Emerging Markets Core Equity Portfolio			Lazard Emerging Markets Equity Advantage Portfolio			Lazard Emerging Markets Equity Blend Portfolio
Equity
Communication Services		15.5	%		14.1	%		11.8	%		15.3	%
Consumer Discretionary		9.9			10.3			8.0			8.9
Consumer Staples		—			3.4			7.4			2.7
Energy		7.7			7.7			8.4			7.2
Financials		28.2			27.3			22.7			25.9
Health Care		2.8			0.9			2.6			1.7
Industrials		10.6			5.1			6.1			7.2
Information Technology		14.2			16.4			15.9			18.6
Materials		6.6			13.2			9.2			6.9
Real Estate		—			0.4			3.0			0.3
Utilities		3.9			—			2.9			3.4
Short-Term Investments		0.6			1.2			2.0			1.9
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%
Asset Class/Sector*	Lazard Emerging Markets Equity Portfolio			Lazard Equity Franchise Portfolio			Lazard Global Equity Select Portfolio			Lazard Global Listed Infrastructure Portfolio
Equity
Communication Services		14.6	%		11.5	%		5.5	%		9.4	%
Consumer Discretionary		7.6			14.8			8.9			—
Consumer Staples		6.3			4.2			12.7			—
Energy		9.1			—			0.8			4.6
Financials		29.3			—			21.0			—
Health Care		0.8			15.4			14.6			—
Industrials		4.8			24.3			15.8			32.3
Information Technology		18.8			18.7			12.9			—
Materials		5.4			—			1.8			—
Real Estate		—			—			1.3			—
Utilities		1.0			10.1			—			50.8
Short-Term Investments		2.3			1.0			4.7			2.9
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

Annual Report  65

Asset Class/Sector*	Lazard Global Realty Equity Portfolio			Lazard Global Strategic Equity Portfolio			Lazard International Compounders Portfolio			Lazard International Equity Advantage Portfolio
Equity
Communication Services		—	%		15.0	%		5.7	%		4.4	%
Consumer Discretionary		—			6.1			15.2			9.2
Consumer Staples		—			4.6			6.2			12.0
Energy		—			4.2			—			7.3
Financials		—			23.3			19.4			20.0
Health Care		—			15.7			10.3			12.5
Industrials		—			12.9			26.8			14.5
Information Technology		—			13.3			14.0			5.4
Materials		—			1.0			2.4			6.5
Real Estate		—			—			—			3.6
Utilities		—			—			—			4.6
Short-Term Investments		100.0			3.9			—			—
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%
Asset Class/Sector*	Lazard International Equity Concentrated Portfolio			Lazard International Equity Portfolio			Lazard International Equity Select Portfolio			Lazard International Equity Value Portfolio
Equity
Communication Services		14.5	%		9.1	%		12.4	%		9.9	%
Consumer Discretionary		19.4			9.3			8.2			26.7
Consumer Staples		3.9			8.1			5.9			8.0
Energy		8.8			6.5			6.4			5.1
Financials		18.4			19.3			20.0			21.8
Health Care		6.2			7.8			7.0			2.1
Industrials		7.5			20.0			17.6			9.4
Information Technology		13.6			5.1			8.5			—
Materials		6.2			5.6			2.3			7.2
Real Estate		—			2.7			1.7			—
Utilities		—			1.8			2.7			—
Short-Term Investments		1.5			4.7			7.3			9.8
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

66  Annual Report

Asset Class/Sector*	Lazard International Small Cap Equity Portfolio			Lazard International Strategic Equity Portfolio			Lazard Managed Equity Volatility Portfolio			Lazard US Equity Concentrated Portfolio
Equity
Communication Services		11.5	%		12.1	%		6.7	%		10.3	%
Consumer Discretionary		11.2			8.8			9.9			9.8
Consumer Staples		5.1			10.1			13.2			15.7
Energy		1.7			4.2			3.2			—
Financials		11.7			24.9			13.8			3.6
Health Care		8.9			6.5			12.3			14.2
Industrials		20.8			20.9			12.7			9.1
Information Technology		13.7			4.1			8.9			29.7
Materials		3.1			2.2			2.7			4.9
Real Estate		9.7			2.3			5.4			—
Utilities		1.0			1.8			7.0			—
Short-Term Investments		1.6			2.1			4.2			2.7
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%
Asset Class/Sector*	Lazard US Equity Select Portfolio			Lazard US Realty Equity Portfolio			Lazard US Small-Mid Cap Equity Portfolio
Equity
Communication Services		6.9	%		—	%		1.6	%
Consumer Discretionary		9.9			3.3			10.4
Consumer Staples		7.5			—			2.0
Energy		6.5			—			1.8
Financials		15.8			—			17.9
Health Care		18.4			—			12.2
Industrials		11.1			—			17.9
Information Technology		21.4			—			13.6
Materials		0.7			—			6.6
Real Estate		1.4			96.7			12.2
Utilities		—			—			3.8
Short-Term Investments		0.4			—			—
Total Investments		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

Annual Report  67

The Lazard Funds, Inc. Portfolios of Investments

December 31, 2018

Description	Shares		Fair Value
Lazard Developing Markets Equity Portfolio
Common Stocks  |  95.7%
Brazil  |  10.1%
CVC Brasil Operadora e Agencia de Viagens SA		364,500	$	5,792,246
Duratex SA		1,345,800		4,128,464
Notre Dame Intermedica Participacoes SA		637,100		4,807,124
Pagseguro Digital, Ltd., Class A		66,600		1,247,418
Petrobras Distribuidora SA		385,100		2,550,629
Petroleo Brasileiro SA		686,135		3,983,393
				22,509,274
Canada  |  1.7%
First Quantum Minerals, Ltd.		453,155		3,664,541
China  |  29.2%
AAC Technologies Holdings, Inc.		195,640		1,124,597
Agricultural Bank of China, Ltd., Class H		3,783,500		1,648,449
Alibaba Group Holding, Ltd. Sponsored ADR (*)		28,910		3,962,694
Anhui Conch Cement Co., Ltd., Class H		429,500		2,060,908
Autohome, Inc. ADR		33,800		2,644,174
Baidu, Inc. Sponsored ADR (*)		39,917		6,330,836
Beijing Enterprises Water Group, Ltd.		9,048,000		4,617,969
China Merchants Bank Co., Ltd., Class H		441,211		1,604,697
China State Construction International Holdings, Ltd.		4,202,160		3,323,732
Han’s Laser Technology Industry Group Co., Ltd., Class A		393,300		1,749,216
Hangzhou Hikvision Digital Technology Co., Ltd., Class A		586,600		2,216,345
Kingsoft Corp., Ltd.		1,143,000		1,651,539
Li Ning Co., Ltd. (*)		1,910,000		2,031,887
New Oriental Education & Technology Group, Inc. Sponsored ADR (*)		49,800		2,729,538
Ping An Insurance (Group) Co. of China, Ltd., Class H		559,500		4,912,739
Tencent Holdings, Ltd.		296,200		11,741,080
Weibo Corp. Sponsored ADR (*)		34,000		1,986,620
Zhuzhou CRRC Times Electric Co., Ltd., Class H		1,071,892		5,950,695
ZTO Express Cayman, Inc. ADR		165,085		2,613,296
				64,901,011

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

68  Annual Report

Description	Shares		Fair Value
Lazard Developing Markets Equity Portfolio (continued)
Colombia  |  1.9%
Bancolombia SA Sponsored ADR		112,547	$	4,288,041
Hong Kong  |  3.8%
China Gas Holdings, Ltd.		1,113,200		3,938,898
Techtronic Industries Co., Ltd.		865,500		4,562,004
				8,500,902
India  |  11.1%
HDFC Bank, Ltd. ADR		57,285		5,934,153
ICICI Bank, Ltd. Sponsored ADR		756,501		7,784,395
Reliance Industries, Ltd.		366,369		5,898,548
Shriram Transport Finance Co., Ltd.		280,746		4,970,376
				24,587,472
Indonesia  |  2.0%
PT Bank Rakyat Indonesia (Persero) Tbk		17,760,500		4,533,555
Mexico  |  0.9%
Grupo Financiero Banorte SAB de CV, Class O		393,957		1,920,094
Peru  |  2.7%
Credicorp, Ltd.		27,455		6,085,950
Philippines  |  1.3%
BDO Unibank, Inc.		1,194,245		2,977,090
Portugal  |  1.5%
Galp Energia SGPS SA		212,172		3,359,794
Russia  |  5.4%
Mail.Ru Group, Ltd. GDR (*)		103,785		2,428,721
Novatek OAO Sponsored GDR		20,336		3,472,678
Sberbank of Russia PJSC		697,481		1,865,355
Yandex NV Class A (*)		158,835		4,344,137
				12,110,891

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

Annual Report  69

Description	Shares		Fair Value
Lazard Developing Markets Equity Portfolio (continued)
South Africa  |  4.4%
Capitec Bank Holdings, Ltd.		74,496	$	5,761,413
Petra Diamonds, Ltd. (*)		1,794,484		857,609
Standard Bank Group, Ltd.		255,536		3,175,319
				9,794,341
South Korea  |  8.9%
Doosan Bobcat, Inc.		153,814		4,330,748
NCSoft Corp. (*)		6,225		2,608,106
Netmarble Corp. (*)		17,418		1,735,874
Partron Co., Ltd.		263,344		1,934,275
Samsung Biologics Co., Ltd. (*)		3,915		1,362,401
Samsung Electronics Co., Ltd.		224,263		7,759,650
				19,731,054
Taiwan  |  9.1%
Airtac International Group		261,000		2,516,398
ASE Technology Holding Co., Ltd.		1,126,289		2,111,991
Bizlink Holding, Inc.		149,000		1,071,053
Catcher Technology Co., Ltd.		205,670		1,482,787
Hiwin Technologies Corp.		222,185		1,571,610
Largan Precision Co., Ltd.		21,860		2,291,113
MediaTek, Inc.		420,000		3,097,381
Silicon Motion Technology Corp. ADR		98,510		3,398,595
Taiwan Semiconductor Manufacturing Co., Ltd.		372,000		2,700,451
				20,241,379
United Kingdom  |  1.7%
KAZ Minerals PLC		540,219		3,663,811
Total Common Stocks (Cost $218,985,408)				212,869,200
Preferred Stocks  |  1.9%
Brazil  |  1.9%
Banco Bradesco SA ADR (Cost $4,050,846)		414,786		4,102,233

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

70  Annual Report

Description	Shares		Fair Value
Lazard Developing Markets Equity Portfolio (concluded)
Short-Term Investments  |  0.5%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $1,218,722)		1,218,722	$	1,218,722
Total Investments  |  98.1% (Cost $224,254,976)			$	218,190,155
Cash and Other Assets in Excess of Liabilities | 1.9%				4,192,481
Net Assets | 100.0%			$	222,382,636

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

Annual Report  71

Description	Shares		Fair Value
Lazard Emerging Markets Core Equity Portfolio
Common Stocks  |  98.1%
Argentina  |  0.8%
Grupo Supervielle SA Sponsored ADR		79,900	$	693,532
Loma Negra Cia Industrial Argentina SA Sponsored ADR (*)		89,300		993,909
				1,687,441
Brazil  |  8.1%
Azul SA ADR (*)		88,200		2,442,258
Banco do Brasil SA		464,800		5,593,369
Braskem SA A Shares		234,642		2,869,453
CCR SA		460,400		1,337,259
Rumo SA (*)		516,200		2,258,183
Telefonica Brasil SA ADR		211,200		2,519,616
				17,020,138
Canada  |  0.9%
Parex Resources, Inc. (*)		150,200		1,798,835
China  |  25.0%
Alibaba Group Holding, Ltd. Sponsored ADR (*)		61,900		8,484,633
Baidu, Inc. Sponsored ADR (*)		19,380		3,073,668
China National Building Material Co., Ltd., Class H		3,990,000		2,702,953
Industrial & Commercial Bank of China, Ltd., Class H		12,759,633		9,055,417
NetEase, Inc. ADR		10,592		2,493,039
New Oriental Education & Technology Group, Inc. Sponsored ADR (*)		38,686		2,120,380
PICC Property & Casualty Co., Ltd., Class H		2,285,770		2,327,114
Ping An Insurance (Group) Co. of China, Ltd., Class H		601,000		5,277,134
Shenzhou International Group Holdings, Ltd.		236,191		2,657,434
Sinopharm Group Co., Ltd., Class H		336,000		1,406,902
Tencent Holdings, Ltd.		310,900		12,323,773
Wuxi Biologics Cayman, Inc. (*)		98,000		620,032
				52,542,479
Colombia  |  1.0%
Bancolombia SA Sponsored ADR		52,800		2,011,680

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

72  Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Core Equity Portfolio (continued)
Hong Kong  |  1.2%
Techtronic Industries Co., Ltd.		465,000	$	2,450,990
Hungary  |  1.1%
MOL Hungarian Oil & Gas PLC		201,537		2,212,180
India  |  10.8%
HDFC Bank, Ltd. ADR		70,669		7,320,602
Hindalco Industries, Ltd.		1,045,918		3,375,820
Hindustan Zinc, Ltd.		582,987		2,326,693
Infosys, Ltd. Sponsored ADR		235,915		2,245,911
Maruti Suzuki India, Ltd.		25,657		2,736,176
Motherson Sumi Systems, Ltd.		734,258		1,754,482
UPL, Ltd.		279,265		3,028,441
				22,788,125
Indonesia  |  2.3%
PT Bank Mandiri (Persero) Tbk		5,842,000		2,994,917
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		71,860		1,883,451
				4,878,368
Luxembourg  |  2.0%
Tenaris SA ADR		50,800		1,083,056
Ternium SA Sponsored ADR		115,400		3,127,340
				4,210,396
Mexico  |  3.2%
Arca Continental SAB de CV		290,245		1,621,239
Gruma SAB de CV, Class B		183,038		2,074,246
Grupo Aeroportuario del Pacifico SAB de CV ADR		15,600		1,272,180
Grupo Financiero Banorte SAB de CV, Class O		370,100		1,803,818
				6,771,483
Peru  |  1.2%
Credicorp, Ltd.		11,650		2,582,456
Philippines  |  1.7%
BDO Unibank, Inc.		907,981		2,263,473
GT Capital Holdings, Inc.		66,431		1,231,562
				3,495,035

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

Annual Report  73

Description	Shares		Fair Value
Lazard Emerging Markets Core Equity Portfolio (continued)
Portugal  |  1.1%
Galp Energia SGPS SA		141,380	$	2,238,786
Russia  |  6.5%
LUKOIL PJSC Sponsored ADR		100,618		7,182,638
Sberbank of Russia PJSC Sponsored ADR (London)		336,519		3,688,827
Sberbank of Russia PJSC Sponsored ADR (United States)		53,682		588,355
Severstal PJSC GDR		166,597		2,274,119
				13,733,939
South Africa  |  5.3%
Barloworld, Ltd.		147,303		1,171,841
FirstRand, Ltd.		587,654		2,677,432
Mondi PLC		117,574		2,432,878
Naspers, Ltd., N Shares		13,214		2,624,794
The Bidvest Group, Ltd.		155,393		2,236,901
				11,143,846
South Korea  |  12.0%
Coway Co., Ltd.		22,566		1,497,144
DB Insurance Co., Ltd. (*)		36,659		2,312,509
Lotte Chemical Corp. (*)		5,104		1,264,026
NCSoft Corp. (*)		6,273		2,628,217
S-Oil Corp.		19,463		1,698,200
Samsung Electro-Mechanics Co., Ltd. (*)		13,253		1,238,834
Samsung Electronics Co., Ltd.		327,361		11,326,911
SK Hynix, Inc.		62,151		3,359,495
				25,325,336
Taiwan  |  10.5%
ASE Technology Holding Co., Ltd. ADR		376,650		1,412,437
Far EasTone Telecommunications Co., Ltd.		881,000		2,185,733
Formosa Plastics Corp.		1,100,000		3,585,204
Largan Precision Co., Ltd.		28,000		2,934,637
Silicon Motion Technology Corp. ADR		44,910		1,549,395
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		284,578		10,503,774
				22,171,180

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

74  Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Core Equity Portfolio (concluded)
Thailand  |  1.4%
Bangkok Bank Public Co. Ltd.		230,200	$	1,465,401
Kasikornbank Public Co. Ltd. (‡)		273,500		1,556,168
				3,021,569
United Arab Emirates  |  0.4%
Emaar Properties PJSC		734,693		826,480
United Kingdom  |  1.6%
Unilever NV NY Shares		64,000		3,443,200
Total Common Stocks (Cost $216,207,162)				206,353,942
Preferred Stocks  |  1.1%
Brazil  |  1.1%
Itau Unibanco Holding SA Sponsored ADR (Cost $1,840,190)		240,643		2,199,477
Short-Term Investments  |  1.2%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $2,544,384)		2,544,384		2,544,384
Total Investments  |  100.4% (Cost $220,591,736)			$	211,097,803
Liabilities in Excess of Cash and Other Assets | (0.4)%				(795,659	)
Net Assets  |  100.0%			$	210,302,144

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

Annual Report  75

Description	Shares		Fair Value
Lazard Emerging Markets Equity Advantage Portfolio
Common Stocks  |  92.1%
Brazil  |  4.8%
B3 SA - Brasil Bolsa Balcao		2,300	$	15,888
Banco Santander Brasil SA		1,700		18,833
Braskem SA A Shares		1,000		12,229
CCR SA		2,400		6,971
Cosan SA		800		6,927
EcoRodovias Infraestrutura e Logistica SA		3,400		8,258
Estacio Participacoes SA		1,600		9,773
Guararapes Confeccoes SA		200		8,412
Lojas Renner SA		500		5,489
Petroleo Brasileiro SA		4,700		27,286
TIM Participacoes SA		2,400		7,399
Vale SA		3,509		46,372
				173,837
Chile  |  0.7%
Cia Cervecerias Unidas SA Sponsored ADR		932		23,421
China  |  28.3%
Agricultural Bank of China, Ltd., Class H		13,000		5,664
Air China, Ltd., Class H		6,000		5,173
Alibaba Group Holding, Ltd. Sponsored ADR (*)		807		110,615
Anhui Conch Cement Co., Ltd., Class H		5,000		23,992
ANTA Sports Products, Ltd.		2,000		9,510
Autohome, Inc. ADR		139		10,874
Baidu, Inc. Sponsored ADR (*)		115		18,239
Bank of China, Ltd., Class H		41,000		17,616
Beijing Enterprises Holdings, Ltd.		2,500		13,175
China CITIC Bank Corp., Ltd., Class H		48,000		29,071
China Construction Bank Corp., Class H		77,000		63,131
China Mengniu Dairy Co., Ltd.		2,000		6,182
China Merchants Bank Co., Ltd., Class H		7,500		27,278
China Mobile, Ltd.		2,500		24,093
China Oriental Group Co., Ltd.		14,000		8,255
China Petroleum & Chemical Corp., Class H		20,000		14,290

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

76  Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Equity Advantage Portfolio (continued)
China Resources Cement Holdings, Ltd.		12,000	$	10,667
China Resources Gas Group, Ltd.		2,000		7,872
China SCE Group Holdings, Ltd.		17,000		6,155
China Telecom Corp., Ltd., Class H		78,000		39,690
China Unicom Hong Kong, Ltd.		20,000		21,243
China Vanke Co., Ltd., Class H		2,200		7,406
CNOOC, Ltd.		24,000		36,770
Country Garden Holdings Co., Ltd.		16,000		19,274
CSPC Pharmaceutical Group, Ltd.		14,000		20,013
Foshan Haitian Flavouring & Food Co., Ltd., Class A		1,400		14,013
Guangzhou Automobile Group Co., Ltd., Class H		5,200		5,138
Henan Shuanghui Investment & Development Co., Ltd., Class A		1,900		6,524
Industrial & Commercial Bank of China, Ltd., Class H		86,000		61,034
Industrial Bank Co., Ltd., Class A		12,700		27,723
Jiangsu Yanghe Brewery Joint-Stock Co., Ltd., Class A		300		4,134
Jiayuan International Group, Ltd.		2,000		3,695
Longfor Group Holdings, Ltd.		3,000		8,981
Lonking Holdings, Ltd.		17,000		4,359
Maanshan Iron & Steel Co., Ltd., Class A		16,800		8,462
Momo, Inc. Sponsored ADR (*)		347		8,241
New Oriental Education & Technology Group, Inc. Sponsored ADR (*)		106		5,810
PetroChina Co., Ltd., Class H		44,000		27,203
PICC Property & Casualty Co., Ltd., Class H		6,000		6,109
Ping An Insurance (Group) Co. of China, Ltd., Class H		6,000		52,683
Postal Savings Bank of China Co., Ltd., Class H		10,000		5,252
RiseSun Real Estate Development Co., Ltd., Class A		6,500		7,555
Shenzhou International Group Holdings, Ltd.		1,000		11,251
Sinotruk Hong Kong, Ltd.		5,500		8,320
Sunny Optical Technology Group Co., Ltd.		800		7,019
Tencent Holdings, Ltd.		3,500		138,737
Tianneng Power International, Ltd.		10,000		8,294
YiChang HEC ChangJiang Pharmaceutical Co., Ltd., Class H		1,600		5,301

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

Annual Report  77

Description	Shares		Fair Value
Lazard Emerging Markets Equity Advantage Portfolio (continued)
YY, Inc. ADR (*)		119	$	7,123
Zhongsheng Group Holdings, Ltd.		3,500		6,957
Zijin Mining Group Co., Ltd., Class H		20,000		7,559
				1,013,725
Colombia  |  0.3%
Ecopetrol SA Sponsored ADR		692		10,989
Egypt  |  0.4%
Commercial International Bank Egypt SAE ADR		3,121		12,952
Greece  |  0.2%
JUMBO SA		450		6,558
Hong Kong  |  0.9%
Lee & Man Paper Manufacturing, Ltd.		9,000		7,574
Shimao Property Holdings, Ltd.		5,500		14,548
Sino Biopharmaceutical, Ltd.		17,500		11,394
				33,516
Hungary  |  1.1%
Magyar Telekom Telecommunications PLC		4,623		7,258
MOL Hungarian Oil & Gas PLC		2,905		31,887
				39,145
India  |  6.5%
Dr Reddy’s Laboratories, Ltd. ADR		340		12,818
GAIL India, Ltd. GDR		1,446		44,397
HDFC Bank, Ltd. ADR		404		41,850
ICICI Bank, Ltd. Sponsored ADR		880		9,055
Infosys, Ltd. Sponsored ADR		6,848		65,193
Reliance Industries, Ltd. Sponsored GDR (#)		709		22,585
State Bank of India GDR (*)		225		9,587
Vedanta, Ltd. ADR		363		4,189
Wipro, Ltd. ADR		3,573		18,330
WNS Holdings, Ltd. ADR (*)		117		4,827
				232,831

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

78  Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Equity Advantage Portfolio (continued)
Indonesia  |  2.0%
PT Bank Central Asia Tbk		6,500	$	11,751
PT Bank Rakyat Indonesia (Persero) Tbk		106,900		27,287
PT Gudang Garam Tbk		2,500		14,535
PT Unilever Indonesia Tbk		6,000		18,979
				72,552
Malaysia  |  2.3%
AirAsia Group Berhad		12,100		8,671
Astro Malaysia Holdings Berhad		16,900		5,343
Hartalega Holdings Berhad		4,100		6,102
Hong Leong Bank Berhad		2,800		13,807
Inari Amertron Berhad		17,150		6,235
Nestle Malaysia Berhad		300		10,690
Petronas Chemicals Group Berhad		12,600		28,298
Public Bank Berhad		800		4,786
				83,932
Mexico  |  3.0%
Alfa SAB de CV, Class A		11,300		13,444
America Movil SAB de CV, Class L Sponsored ADR		449		6,398
Grupo Aeroportuario del Centro Norte SAB de CV		2,800		13,344
Grupo Financiero Banorte SAB de CV, Class O		3,900		19,008
Grupo Mexico SAB de CV, Series B		2,800		5,762
Mexichem SAB de CV		6,300		16,010
Wal-Mart de Mexico SAB de CV		13,400		34,073
				108,039
Peru  |  0.2%
Credicorp, Ltd.		39		8,645
Philippines  |  1.2%
Ayala Land, Inc.		17,400		13,465
Cebu Air, Inc.		7,180		9,992
DMCI Holdings, Inc.		61,300		14,924
JG Summit Holdings, Inc.		5,570		5,899
				44,280

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

Annual Report  79

Description	Shares		Fair Value
Lazard Emerging Markets Equity Advantage Portfolio (continued)
Poland  |  1.4%
Enea SA (*)		3,668	$	9,700
Grupa Lotos SA		551		13,022
Jastrzebska Spolka Weglowa SA (*)		283		5,079
LPP SA		4		8,386
PGE Polska Grupa Energetyczna SA (*)		2,094		5,619
Tauron Polska Energia SA (*)		11,891		6,955
				48,761
Russia  |  4.5%
Gazprom PJSC Sponsored ADR		4,599		20,342
LUKOIL PJSC Sponsored ADR		396		28,269
Mobile TeleSystems PJSC Sponsored ADR		798		5,586
Novolipetsk Steel PJSC GDR		768		17,573
Sberbank of Russia PJSC Sponsored ADR		3,541		38,815
Severstal PJSC GDR		816		11,139
Tatneft PJSC Sponsored ADR		487		30,640
VTB Bank PJSC GDR		7,699		8,519
				160,883
Singapore  |  0.4%
BOC Aviation, Ltd.		1,800		13,243
South Africa  |  4.1%
Anglo American Platinum, Ltd.		484		18,067
Astral Foods, Ltd.		281		3,124
AVI, Ltd.		1,874		13,241
Clicks Group, Ltd.		489		6,486
FirstRand, Ltd.		4,933		22,475
Imperial Logistics, Ltd.		768		3,635
Motus Holdings, Ltd. (*)		768		4,698
Mr Price Group, Ltd.		1,355		23,108
Naspers, Ltd., N Shares		255		50,653
				145,487
South Korea  |  14.7%
AfreecaTV Co., Ltd. (*)		179		6,276
BGF retail Co., Ltd. (*)		49		8,959
Celltrion, Inc. (*)		32		6,361

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

80  Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Equity Advantage Portfolio (continued)
Daelim Industrial Co., Ltd. (*)		201	$	18,421
GS Engineering & Construction Corp. N Ap (*)		285		11,118
Hana Financial Group, Inc.		217		7,042
Hyundai Department Store Co., Ltd. (*)		81		6,548
Hyundai Marine & Fire Insurance Co., Ltd. (*)		438		16,111
Industrial Bank of Korea		738		9,292
Jin Air Co., Ltd. (*)		301		5,210
KB Financial Group, Inc. ADR		946		39,713
KCC Corp.		21		5,805
Korea Electric Power Corp. Sponsored ADR		756		11,151
Korea Investment Holdings Co., Ltd. (*)		95		5,043
KT&G Corp.		116		10,553
LG Chem, Ltd. (*)		33		10,220
LG Corp. (*)		273		17,114
LG Electronics, Inc.		159		8,940
LG Household & Health Care, Ltd. (*)		11		10,861
LG Uplus Corp. (*)		1,402		22,142
Lotte Chemical Corp. (*)		34		8,420
Meritz Fire & Marine Insurance Co., Ltd. (*)		708		13,859
NCSoft Corp. (*)		22		9,217
POSCO		62		13,572
Samsung Electro-Mechanics Co., Ltd. (*)		143		13,367
Samsung Electronics Co., Ltd. GDR		200		173,024
Samsung SDS Co., Ltd. (*)		70		12,762
SK Holdings Co., Ltd.		62		14,431
SK Hynix, Inc.		570		30,811
				526,343
Taiwan  |  11.3%
Advantech Co., Ltd.		2,000		13,610
Asia Cement Corp.		6,000		6,574
Cheng Loong Corp.		13,000		7,830
Eva Airways Corp.		12,100		6,230
Feng TAY Enterprise Co., Ltd.		2,000		11,359
Formosa Chemicals & Fibre Corp.		8,000		27,104
Hiwin Technologies Corp.		1,030		7,286

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

Annual Report  81

Description	Shares		Fair Value
Lazard Emerging Markets Equity Advantage Portfolio (continued)
Hung Sheng Construction, Ltd.		10,800	$	8,911
President Chain Store Corp.		2,000		20,207
St Shine Optical Co., Ltd.		1,000		17,355
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		5,134		189,496
Uni-President Enterprises Corp.		16,000		36,211
Yageo Corp.		718		7,332
Yuanta Financial Holding Co., Ltd.		92,000		46,057
				405,562
Thailand  |  2.7%
Advanced Info Service Public Co. Ltd. (‡)		2,200		11,655
Bumrungrad Hospital Public Co. Ltd. (‡)		1,600		9,214
Central Pattana Public Co. Ltd. NVDR		5,000		11,461
CP ALL Public Co. Ltd.		5,000		10,557
Krungthai Card Public Co. Ltd. NVDR		9,500		8,885
Muangthai Capital Public Co. Ltd. NVDR		4,348		6,533
PTT Exploration & Production Public Co. Ltd. (‡)		1,900		6,623
PTT Global Chemical Public Co. Ltd. (‡)		3,700		8,097
PTT Public Co. Ltd. (‡)		6,000		8,477
Sri Trang Agro-Industry Public Co. Ltd (‡)		12,500		5,413
Tisco Financial Group Public Co. Ltd. NVDR		4,100		9,866
				96,781
Turkey  |  0.7%
Haci Omer Sabanci Holding AS		4,584		6,500
Tekfen Holding AS		1,588		6,205
Turkiye Garanti Bankasi AS ADR		7,348		10,728
				23,433
United States  |  0.4%
Yum China Holdings, Inc.		427		14,317
Total Common Stocks (Cost $3,180,704)				3,299,232

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

82  Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Equity Advantage Portfolio (concluded)
Preferred Stocks  |  0.9%
Brazil  |  0.9%
Banco Bradesco SA ADR (Cost $28,110)		3,421	$	33,834
Short-Term Investments  |  1.9%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $67,762)		67,762		67,762
Total Investments  |  94.9% (Cost $3,276,576)			$	3,400,828
Cash and Other Assets in Excess of Liabilities | 5.1%				181,404
Net Assets | 100.0%			$	3,582,232

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

Annual Report  83

Description	Shares		Fair Value
Lazard Emerging Markets Equity Blend Portfolio
Common Stocks  |  96.9%
Argentina  |  1.3%
Transportadora de Gas del Sur SA Class B		85,275	$	1,279,125
YPF SA Sponsored ADR		189,600		2,538,744
				3,817,869
Brazil  |  8.4%
Ambev SA ADR		451,675		1,770,566
Banco do Brasil SA		408,857		4,920,155
CCR SA		660,800		1,919,332
Cia de Saneamento do Parana (*)		104,400		1,657,066
Cielo SA Sponsored ADR		695,981		1,628,596
Duratex SA		1,430,000		4,386,761
Iochpe Maxion SA		226,945		1,401,786
JSL SA		421,700		760,219
Movida Participacoes SA		647,556		1,433,735
Notre Dame Intermedica Participacoes SA		164,700		1,242,714
Pagseguro Digital, Ltd., Class A		73,700		1,380,401
Petrobras Distribuidora SA		371,900		2,463,201
				24,964,532
Canada  |  1.2%
First Quantum Minerals, Ltd.		437,215		3,535,638
Chile  |  0.2%
Geopark, Ltd. (*)		37,019		511,603
China  |  28.6%
A-Living Services Co., Ltd., Class H		871,000		1,169,384
Alibaba Group Holding, Ltd. Sponsored ADR (*)		36,100		4,948,227
Anhui Conch Cement Co., Ltd., Class H		1,102,500		5,290,225
Autohome, Inc. ADR		43,900		3,434,297
Baidu, Inc. Sponsored ADR (*)		51,004		8,089,234
Beijing Enterprises Water Group, Ltd.		5,438,000		2,775,477
China Construction Bank Corp., Class H		8,241,281		6,756,896
China Meidong Auto Holdings, Ltd.		1,308,000		492,653
China Mobile, Ltd. Sponsored ADR		109,316		5,247,168

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

84  Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Equity Blend Portfolio (continued)
China Shenhua Energy Co., Ltd., Class H		1,424,000	$	3,101,609
China State Construction International Holdings, Ltd.		4,554,249		3,602,219
CNOOC, Ltd.		1,923,800		2,947,390
Consun Pharmaceutical Group, Ltd.		1,891,000		1,088,329
Fufeng Group, Ltd.		1,613,000		682,627
Hangzhou Hikvision Digital Technology Co., Ltd., Class A		775,200		2,928,930
Huami Corp. ADR		53,445		525,364
JNBY Design, Ltd.		1,011,500		1,417,557
Kingsoft Corp., Ltd.		2,046,000		2,956,298
NetEase, Inc. ADR		28,750		6,766,887
Ping An Insurance (Group) Co. of China, Ltd., Class H		712,000		6,251,779
Precision Tsugami China Corp., Ltd.		766,000		700,878
RISE Education Cayman, Ltd. ADR (*)		110,000		882,200
Sinotrans, Ltd., Class H (*)		3,175,000		1,366,185
Tencent Holdings, Ltd.		142,100		5,632,706
Tianyun International Holdings, Ltd.		5,494,000		782,733
West China Cement, Ltd.		8,556,000		1,150,733
Yestar Healthcare Holdings Co., Ltd.		3,037,500		710,559
ZTO Express Cayman, Inc. ADR		222,430		3,521,067
				85,219,611
Colombia  |  1.5%
Bancolombia SA Sponsored ADR		116,592		4,442,155
Egypt  |  0.9%
Commercial International Bank Egypt SAE GDR		446,092		1,893,567
Credit Agricole Egypt SAE		240,239		550,095
Dice Sport & Casual Wear (*)		266,817		200,970
				2,644,632
Estonia  |  0.1%
Tallinna Sadam AS		125,200		292,663
Georgia  |  0.6%
Bank of Georgia Group PLC		67,581		1,182,495
TBC Bank Group PLC		33,962		655,889
				1,838,384

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

Annual Report  85

Description	Shares		Fair Value
Lazard Emerging Markets Equity Blend Portfolio (continued)
Greece  |  0.5%
OPAP SA		154,619	$	1,343,096
Hong Kong  |  4.0%
China Gas Holdings, Ltd.		906,000		3,205,751
China Water Affairs Group, Ltd.		1,364,000		1,461,948
Kingboard Laminates Holdings, Ltd.		1,077,500		890,815
NewOcean Energy Holdings, Ltd. (*)		1,724,000		562,327
Techtronic Industries Co., Ltd.		936,500		4,936,241
TK Group Holdings, Ltd.		796,000		434,170
Tongda Group Holdings, Ltd.		4,839,114		478,351
				11,969,603
Hungary  |  1.0%
OTP Bank Nyrt.		75,888		3,060,790
India  |  12.4%
Axis Bank, Ltd. (*)		838,508		7,459,633
Bajaj Auto, Ltd.		66,982		2,604,929
Dewan Housing Finance Corp., Ltd.		201,553		721,681
Graphite India, Ltd.		63,684		688,286
HCL Technologies, Ltd.		101,830		1,403,993
ICICI Bank, Ltd. Sponsored ADR		808,983		8,324,435
Infosys, Ltd. Sponsored ADR		147,300		1,402,296
Jubilant Life Sciences, Ltd.		143,917		1,467,616
Kiri Industries, Ltd. (*)		101,928		655,406
Mahanagar Gas, Ltd.		75,300		976,411
Mirza International, Ltd.		229,418		273,849
Reliance Industries, Ltd.		336,772		5,422,036
Tata Consultancy Services, Ltd.		141,149		3,829,653
The South Indian Bank, Ltd.		1,318,722		292,754
Uflex, Ltd.		118,719		480,779
UPL, Ltd.		87,379		947,567
				36,951,324

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

86  Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Equity Blend Portfolio (continued)
Indonesia  |  4.2%
PT Bank Mandiri (Persero) Tbk		7,658,400	$	3,926,100
PT Bank Pembangunan Daerah Jawa Timur Tbk		7,531,400		361,375
PT Bank Rakyat Indonesia (Persero) Tbk		19,513,490		4,981,024
PT Bekasi Fajar Industrial Estate Tbk		40,140,000		580,537
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		102,630		2,689,932
				12,538,968
Kenya  |  0.2%
KCB Group, Ltd.		1,537,700		565,299
Kuwait  |  0.3%
Human Soft Holding Co. KSC		77,918		842,098
Mexico  |  2.1%
Alpek SAB de CV (*)		1,018,900		1,246,939
America Movil SAB de CV, Class L Sponsored ADR		118,843		1,693,513
Credito Real SAB de CV		354,900		319,111
Grupo Mexico SAB de CV, Series B		567,701		1,168,233
Kimberly-Clark de Mexico SAB de CV, Series A		1,128,100		1,789,300
				6,217,096
Morocco  |  0.1%
Residences Dar Saada		21,421		221,791
Oman  |  0.3%
Ooredoo		556,898		821,031
Pakistan  |  0.2%
Bank Alfalah, Ltd.		1,507,000		439,852
Kohinoor Textile Mills, Ltd.		565,890		183,565
				623,417
Philippines  |  0.2%
PLDT, Inc. Sponsored ADR		34,502		737,653
Poland  |  0.3%
Dino Polska SA (*)		40,572		1,037,510

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

Annual Report  87

Description	Shares		Fair Value
Lazard Emerging Markets Equity Blend Portfolio (continued)
Russia  |  6.0%
Gazprom PJSC Sponsored ADR		399,093	$	1,765,255
LUKOIL PJSC Sponsored ADR		48,873		3,486,600
Mobile TeleSystems PJSC Sponsored ADR		301,200		2,108,400
Sberbank of Russia PJSC		656,095		1,754,672
Sberbank of Russia PJSC Sponsored ADR		472,547		5,179,115
Yandex NV Class A (*)		126,800		3,467,980
				17,762,022
Singapore  |  0.4%
BOC Aviation, Ltd.		172,700		1,270,601
South Africa  |  1.3%
Petra Diamonds, Ltd. (*)		2,160,614		1,032,587
Standard Bank Group, Ltd.		234,235		2,910,630
				3,943,217
South Korea  |  11.4%
ELP Corp. (*)		27,880		317,648
Eugene Technology Co., Ltd.		108,147		1,041,388
F&F Co., Ltd. (*)		19,478		695,274
Hanwha Life Insurance Co., Ltd. (*)		196,246		740,813
HS Industries Co., Ltd. (*)		228,345		1,395,900
Hyundai Mobis Co., Ltd. (*)		16,020		2,721,672
Innocean Worldwide, Inc. (*)		22,889		1,297,576
KT&G Corp.		20,343		1,850,666
Nasmedia Co., Ltd. (*)		30,957		785,862
NCSoft Corp. (*)		6,501		2,723,743
Nice Information & Telecommunication, Inc. (*)		35,109		617,594
Samjin Pharmaceutical Co., Ltd. (*)		16,494		596,636
Samsung Electronics Co., Ltd.		318,176		11,009,103
Shinhan Financial Group Co., Ltd.		87,803		3,115,803
SK Hynix, Inc.		94,268		5,095,539
				34,005,217

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

88  Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Equity Blend Portfolio (continued)
Taiwan  |  7.7%
Chailease Holding Co., Ltd.		414,300	$	1,296,066
Gourmet Master Co., Ltd.		150,782		1,004,910
Hon Hai Precision Industry Co., Ltd.		708,136		1,634,464
Largan Precision Co., Ltd.		29,614		3,103,798
MediaTek, Inc.		325,000		2,396,783
Powertech Technology, Inc.		400,000		851,519
Primax Electronics, Ltd.		843,000		1,194,158
Silicon Motion Technology Corp. ADR		90,851		3,134,359
Sunny Friend Environmental Technology Co., Ltd.		106,000		697,713
Taiwan Semiconductor Manufacturing Co., Ltd.		904,720		6,567,614
Tripod Technology Corp.		345,000		897,503
				22,778,887
Thailand  |  0.5%
Tisco Financial Group Public Co. Ltd. (‡)		571,100		1,372,499
Turkey  |  0.8%
KOC Holding AS ADR		172,067		2,271,284
Ukraine  |  0.2%
Kernel Holding SA		52,958		692,104
Total Common Stocks (Cost $316,023,063)				288,292,594
Preferred Stocks  |  1.3%
Brazil  |  1.3%
Banco Bradesco SA ADR (Cost $2,910,303)		380,490		3,763,046

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

Annual Report  89

Description	Shares		Fair Value
Lazard Emerging Markets Equity Blend Portfolio (concluded)
Warrants  |  0.0%
Brazil | 0.0%
Iochpe Maxion SA, Expires 06/03/19 (*) (Cost $0)		15,354	$	37,437
Short-Term Investments  |  1.9%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $5,709,402)		5,709,402		5,709,402
Total Investments  |  100.1% (Cost $324,642,768)			$	297,802,479
Liabilities in Excess of Cash and Other Assets  |  (0.1)%				(198,191	)
Net Assets  |  100.0%			$	297,604,288

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

90  Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Equity Portfolio
Common Stocks | 97.9%
Argentina | 1.6%
YPF SA Sponsored ADR		10,503,594	$	140,643,124
Brazil | 9.0%
Ambev SA ADR		25,767,340		101,007,973
Banco do Brasil SA		29,057,534		349,676,209
BB Seguridade Participacoes SA		20,776,800		148,448,243
CCR SA		32,574,234		94,613,780
Cia de Saneamento Basico do Estado de Sao Paulo		314,388		2,557,981
Cielo SA		38,692,219		88,733,220
Petrobras Distribuidora SA		1,378,623		9,131,019
				794,168,425
China | 20.1%
AAC Technologies Holdings, Inc.		11,765,500		67,631,593
Anhui Conch Cement Co., Ltd., Class H		21,249,951		101,965,550
Baidu, Inc. Sponsored ADR (*)		643,639		102,081,145
China Construction Bank Corp., Class H		543,369,220		445,499,822
China Mobile, Ltd. Sponsored ADR		7,385,900		354,523,200
China Shenhua Energy Co., Ltd., Class H		34,650,110		75,471,267
CNOOC, Ltd.		59,035,000		90,445,548
ENN Energy Holdings, Ltd.		9,681,500		85,360,468
Hengan International Group Co., Ltd.		8,599,500		62,370,560
NetEase, Inc. ADR		1,075,864		253,226,110
Weichai Power Co., Ltd., Class H (^)		118,270,288		134,116,483
				1,772,691,746
Egypt | 0.9%
Commercial International Bank Egypt SAE GDR		19,363,463		82,193,853
Hong Kong | 1.0%
ASM Pacific Technology, Ltd.		9,529,000		91,311,291
Hungary | 2.1%
OTP Bank Nyrt.		4,542,612		183,217,110

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

Annual Report  91

Description	Shares		Fair Value
Lazard Emerging Markets Equity Portfolio (continued)
India | 9.1%
Axis Bank, Ltd. (*)		22,458,196	$	199,795,242
Bajaj Auto, Ltd.		2,124,873		82,636,273
Bharat Petroleum Corp., Ltd.		4,812,251		24,951,096
HCL Technologies, Ltd.		5,555,249		76,593,635
Hero MotoCorp, Ltd.		3,005,411		133,433,170
Infosys, Ltd. Sponsored ADR		7,848,652		74,719,167
Tata Consultancy Services, Ltd.		7,632,389		207,081,904
				799,210,487
Indonesia | 5.9%
PT Astra International Tbk		204,321,600		117,618,294
PT Bank Mandiri (Persero) Tbk		347,304,142		178,046,428
PT Semen Indonesia (Persero) Tbk		98,966,200		79,117,889
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		5,494,310		144,005,865
				518,788,476
Luxembourg | 0.7%
Ternium SA Sponsored ADR		2,171,622		58,850,956
Malaysia | 0.7%
British American Tobacco Malaysia Berhad		6,960,700		60,594,729
Mexico | 3.1%
America Movil SAB de CV, Class L Sponsored ADR		11,607,171		165,402,187
Grupo Mexico SAB de CV, Series B		24,709,047		50,847,068
Kimberly-Clark de Mexico SAB de CV, Series A		39,066,195		61,963,606
				278,212,861
Pakistan | 1.2%
Habib Bank, Ltd.		23,714,780		20,585,936
Oil & Gas Development Co., Ltd.		19,854,917		18,303,821
Pakistan Petroleum, Ltd.		59,350,052		63,999,418
				102,889,175
Philippines | 0.6%
PLDT, Inc. Sponsored ADR		2,658,385		56,836,271

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

92  Annual Report

Description	Shares		Fair Value
Lazard Emerging Markets Equity Portfolio (continued)
Russia | 9.2%
ALROSA PAO		58,722,879	$	83,118,066
Gazprom PJSC Sponsored ADR		22,947,240		101,499,475
LUKOIL PJSC Sponsored ADR		2,486,739		177,516,403
Magnit PJSC Sponsored GDR		4,649,846		59,194,548
Mobile TeleSystems PJSC Sponsored ADR		15,984,243		111,889,701
Sberbank of Russia PJSC		105,631,065		282,501,516
				815,719,709
South Africa | 9.7%
Imperial Logistics, Ltd. (^)		7,191,474		34,041,858
Life Healthcare Group Holdings, Ltd.		37,238,007		67,891,687
Motus Holdings, Ltd. (*)		7,191,474		43,991,077
Nedbank Group, Ltd.		5,026,896		95,646,305
PPC, Ltd. (*)		69,760,695		28,578,558
Sanlam, Ltd.		17,908,856		99,316,334
Shoprite Holdings, Ltd.		9,791,761		128,713,524
Standard Bank Group, Ltd.		7,871,108		97,807,263
The Bidvest Group, Ltd.		6,144,646		88,452,923
Vodacom Group, Ltd.		11,131,696		102,209,474
Woolworths Holdings, Ltd.		16,956,187		64,537,359
				851,186,362
South Korea | 14.1%
Coway Co., Ltd.		1,551,063		102,905,483
Hanwha Life Insurance Co., Ltd. (*)		13,853,670		52,296,524
Hyundai Mobis Co., Ltd. (*)		684,352		116,266,032
KB Financial Group, Inc.		2,567,620		107,177,544
KT&G Corp.		895,252		81,443,874
Samsung Electronics Co., Ltd.		10,621,891		367,524,564
Shinhan Financial Group Co., Ltd.		5,006,452		177,660,417
SK Hynix, Inc.		4,346,642		234,952,307
				1,240,226,745
Taiwan | 5.2%
Catcher Technology Co., Ltd.		9,183,000		66,205,256
Hon Hai Precision Industry Co., Ltd.		38,991,425		89,996,927
Taiwan Semiconductor Manufacturing Co., Ltd.		41,192,284		299,026,225
				455,228,408

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

Annual Report  93

Description	Shares		Fair Value
Lazard Emerging Markets Equity Portfolio (concluded)
Thailand | 1.6%
Kasikornbank Public Co. Ltd. (‡)		12,110,054	$	68,904,143
The Siam Cement Public Co. Ltd. (‡)		5,425,800		72,655,061
				141,559,204
Turkey | 2.1%
KOC Holding AS		27,486,003		73,409,523
Tupras Turkiye Petrol Rafinerileri AS		5,097,405		112,385,440
				185,794,963
Total Common Stocks (Cost $8,834,771,508)				8,629,323,895
Short-Term Investments | 2.4%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $209,726,438)		209,726,438		209,726,438
Total Investments | 100.3% (Cost $9,044,497,946)			$	8,839,050,333
Liabilities in Excess of Cash and Other Assets | (0.3)%				(28,113,525	)
Net Assets | 100.0%			$	8,810,936,808

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

94  Annual Report

Description	Shares		Fair Value
Lazard Equity Franchise Portfolio
Common Stocks | 97.5%
Australia | 3.4%
Transurban Group		35,494	$	291,396
Belgium | 4.2%
Anheuser-Busch InBev SA/NV		5,399		357,318
France | 2.1%
Bureau Veritas SA		8,670		176,093
Germany | 2.0%
Fresenius Medical Care AG & Co. KGaA		2,649		172,069
Italy | 4.5%
Atlantia SpA (*)		18,661		386,432
Luxembourg | 6.2%
SES SA		27,415		525,103
United Kingdom | 7.4%
National Grid PLC		26,547		256,725
United Utilities Group PLC		39,849		373,153
				629,878
United States | 67.7%
Alphabet, Inc., Class C (*)		91		94,241
Cisco Systems, Inc.		1,979		85,750
CVS Health Corp.		2,414		158,165
Dollar Tree, Inc. (*)		1,926		173,956
H&R Block, Inc.		15,369		389,912
International Game Technology PLC		34,718		507,924
IPG Photonics Corp. (*)		2,780		314,946
KLA-Tencor Corp.		2,005		179,428
McKesson Corp.		4,726		522,081
MEDNAX, Inc. N Ap (*)		7,682		253,506
Medtronic PLC		2,026		184,285

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

Annual Report  95

Description	Shares		Fair Value
Lazard Equity Franchise Portfolio (concluded)
Microsoft Corp.		1,713	$	173,989
Nielsen Holdings PLC		22,092		515,406
Norfolk Southern Corp.		1,195		178,700
Omnicom Group, Inc.		4,752		348,037
Oracle Corp.		11,804		532,951
PG&E Corp. (*)		9,181		218,049
QUALCOMM, Inc.		3,462		197,022
Stericycle, Inc. (*)		13,527		496,306
Tapestry, Inc.		5,076		171,315
Visa, Inc., Class A		633		83,518
				5,779,487
Total Common Stocks (Cost $9,402,903)				8,317,776
Short-Term Investments | 1.0%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $83,365)		83,365		83,365
Total Investments | 98.5% (Cost $9,486,268)			$	8,401,141
Cash and Other Assets in Excess of Liabilities | 1.5%				129,748
Net Assets | 100.0%			$	8,530,889

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

96  Annual Report

Description	Shares		Fair Value
Lazard Global Equity Select Portfolio
Common Stocks | 95.8%
Belgium | 0.9%
Anheuser-Busch InBev SA/NV		8,997	$	595,442
Canada | 3.9%
CAE, Inc.		31,240		574,137
Canadian National Railway Co.		14,200		1,051,686
National Bank of Canada		23,165		951,068
				2,576,891
China | 1.9%
Alibaba Group Holding, Ltd. Sponsored ADR (*)		3,450		472,892
Tencent Holdings, Ltd.		20,020		793,573
				1,266,465
Finland | 2.1%
Nordea Bank Abp		83,385		703,275
Sampo Oyj, A Shares		15,691		689,794
				1,393,069
France | 1.3%
Ubisoft Entertainment SA (*)		10,483		840,998
Germany | 1.0%
Symrise AG		8,947		661,174
Hong Kong | 3.1%
AIA Group, Ltd.		129,745		1,067,316
Hang Seng Bank, Ltd.		43,900		980,527
				2,047,843
India | 0.8%
Indiabulls Housing Finance, Ltd. GDR		45,146		550,781
Israel | 1.1%
Israel Discount Bank, Ltd., Class A		235,617		726,128

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

Annual Report  97

Description	Shares		Fair Value
Lazard Global Equity Select Portfolio (continued)
Japan | 6.5%
Daiwa House Industry Co., Ltd.		26,085	$	828,448
Kansai Paint Co., Ltd.		29,400		564,249
Kao Corp.		10,500		774,122
Ryohin Keikaku Co., Ltd.		3,360		817,722
TechnoPro Holdings, Inc.		15,800		645,386
Yamaha Corp.		16,400		696,286
				4,326,213
Netherlands | 2.4%
Wolters Kluwer NV		26,868		1,586,644
Singapore | 1.7%
Oversea-Chinese Banking Corp., Ltd.		133,000		1,092,420
South Africa | 1.6%
Distell Group Holdings, Ltd.		74,339		554,781
Sanlam, Ltd.		85,692		475,218
				1,029,999
Sweden | 3.1%
Assa Abloy AB, Class B		28,798		514,887
Epiroc AB, Class A (*)		87,792		833,756
Hexagon AB, B Shares		15,165		699,971
				2,048,614
Switzerland | 2.1%
Julius Baer Group, Ltd.		9,824		351,048
Novartis AG		12,207		1,045,510
				1,396,558
Taiwan | 1.0%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		17,360		640,758

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

98  Annual Report

Description	Shares		Fair Value
Lazard Global Equity Select Portfolio (continued)
United Kingdom | 12.0%
Bunzl PLC		18,701	$	562,690
Coca-Cola European Partners PLC		19,260		883,071
Compass Group PLC		40,153		842,999
Diageo PLC		41,619		1,479,286
Prudential PLC		34,171		610,536
RELX PLC (*)		61,391		1,263,816
RSA Insurance Group PLC		83,755		546,478
The Weir Group PLC		22,380		367,967
Unilever PLC		26,971		1,411,599
				7,968,442
United States | 49.3%
Accenture PLC, Class A		8,320		1,173,203
Alphabet, Inc., Class A (*)		1,939		2,026,177
Aon PLC		9,760		1,418,714
Biogen, Inc. (*)		5,035		1,515,132
Boston Scientific Corp. N Ap (*)		28,865		1,020,089
Cisco Systems, Inc.		20,245		877,216
Comerica, Inc.		8,485		582,835
Eaton Corp. PLC		7,725		530,399
eBay, Inc. (*)		17,500		491,225
Honeywell International, Inc.		8,358		1,104,259
Intercontinental Exchange, Inc.		17,395		1,310,365
IQVIA Holdings, Inc. (*)		12,560		1,459,095
Johnson & Johnson		12,225		1,577,636
Lowe’s Cos., Inc.		7,915		731,029
McDonald’s Corp.		6,030		1,070,747
Microsoft Corp.		17,685		1,796,265
Motorola Solutions, Inc.		7,520		865,101
Rockwell Automation, Inc.		4,525		680,922
S&P Global, Inc.		5,865		996,698
Schlumberger, Ltd.		14,571		525,722
Starbucks Corp.		12,400		798,560
The Charles Schwab Corp.		21,575		896,010
The Coca-Cola Co.		37,615		1,781,070

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

Annual Report  99

Description	Shares		Fair Value
Lazard Global Equity Select Portfolio (concluded)
The Procter & Gamble Co.		10,765	$	989,519
Thermo Fisher Scientific, Inc.		7,705		1,724,302
United Technologies Corp.		4,484		477,456
Visa, Inc., Class A		10,088		1,331,011
Welbilt, Inc. (*)		25,950		288,305
Worldpay, Inc., Class A (*)		15,685		1,198,805
Zoetis, Inc.		16,167		1,382,925
				32,620,792
Total Common Stocks (Cost $60,538,016)				63,369,231
Short-Term Investments | 4.7%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $3,109,649)		3,109,649		3,109,649
Total Investments | 100.5% (Cost $63,647,665)			$	66,478,880
Liabilities in Excess of Cash and Other Assets | (0.5)%				(333,980	)
Net Assets | 100.0%			$	66,144,900

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

100  Annual Report

Description	Shares		Fair Value
Lazard Global Listed Infrastructure Portfolio
Common Stocks | 96.2%
Australia | 9.5%
Atlas Arteria, Ltd.		16,435,137	$	72,462,087
AusNet Services		37,014,129		40,562,170
Spark Infrastructure Group		67,622,901		105,300,231
Sydney Airport		10,000,000		47,400,843
Transurban Group		29,731,519		244,087,221
				509,812,552
Canada | 0.9%
ATCO, Ltd., Class I		1,750,800		49,515,373
France | 8.2%
Eutelsat Communications SA		9,871,601		195,219,212
Vinci SA		2,940,331		241,630,016
				436,849,228
Germany | 2.9%
Fraport AG		2,159,169		154,333,094
Italy | 24.8%
ASTM SpA		1,316,169		26,311,999
Atlantia SpA (*)		20,216,429		418,642,274
Hera SpA		8,474,265		25,811,568
Italgas SpA		29,006,128		165,802,572
Snam SpA		55,735,262		243,964,979
Societa Iniziative Autostradali e Servizi SpA		1,891,637		26,087,807
Terna SpA		74,048,386		420,344,732
				1,326,965,931
Luxembourg | 5.7%
SES SA		15,840,185		303,400,711
Portugal | 1.1%
REN - Redes Energeticas Nacionais SGPS SA		20,694,113		57,678,179
Spain | 4.7%
Red Electrica Corporacion SA		11,213,000		249,765,419

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

Annual Report  101

Description	Shares		Fair Value
Lazard Global Listed Infrastructure Portfolio (continued)
United Kingdom | 16.5%
National Grid PLC		24,884,298	$	240,645,206
Pennon Group PLC		17,678,748		155,894,195
Severn Trent PLC		10,202,401		235,711,601
United Utilities Group PLC		26,598,242		249,070,690
				881,321,692
United States | 21.9%
American Electric Power Co., Inc.		2,910,883		217,559,395
Consolidated Edison, Inc.		1,012,600		77,423,396
CSX Corp.		1,300,000		80,769,000
Edison International		3,057,809		173,591,817
Kansas City Southern		1,537,800		146,783,010
Norfolk Southern Corp.		1,685,137		251,995,387
PG&E Corp. (*)		9,504,849		225,740,164
				1,173,862,169
Total Common Stocks (Cost $5,462,346,658)				5,143,504,348
Short-Term Investments | 2.8%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $152,170,295)		152,170,295		152,170,295
Total Investments | 99.0% (Cost $5,614,516,953) (»)			$	5,295,674,643
Cash and Other Assets in Excess of Liabilities | 1.0%				55,434,047
Net Assets | 100.0%			$	5,351,108,690

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

102  Annual Report

Lazard Global Listed Infrastructure Portfolio (concluded)

Forward Currency Contracts open at December 31, 2018:

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
AUD	32,595,580	USD	23,031,450	RBC	03/28/19	$	—	$	39,902
USD	122,642,240	AUD	170,632,682	BNP	03/28/19		2,285,142		—
USD	74,087,174	AUD	103,062,752	CIT	03/28/19		1,391,055		—
USD	101,085,498	AUD	140,610,369	HSB	03/28/19		1,904,872		—
USD	84,364,897	AUD	117,343,780	RBC	03/28/19		1,595,543		—
USD	76,047,779	AUD	105,770,288	SCB	03/28/19		1,441,878		—
USD	88,526,512	AUD	123,143,335	SSB	03/28/19		1,666,396		—
USD	11,519,082	CAD	15,441,053	BNP	03/28/19		186,391		—
USD	13,448,964	CAD	18,026,992	HSB	03/28/19		218,369		—
USD	24,525,538	CAD	32,863,608	SCB	03/28/19		405,868		—
USD	33,934,844	CHF	33,362,703	CAN	03/28/19		—		279,690
USD	388,555,695	EUR	337,108,256	BNP	03/28/19		—		457,235
USD	340,321,123	EUR	295,444,570	CAN	03/28/19		—		613,149
USD	345,062,058	EUR	299,603,256	CIT	03/28/19		—		671,214
USD	414,673,461	EUR	359,950,228	HSB	03/28/19		—		698,427
USD	419,305,540	EUR	363,977,344	MEL	03/28/19		—		713,521
USD	233,460,779	EUR	202,665,722	RBC	03/28/19		—		409,454
USD	386,010,296	EUR	335,079,836	SSB	03/28/19		—		661,898
USD	122,236,121	GBP	96,102,566	BNP	03/28/19		—		760,876
USD	170,217,339	GBP	133,833,393	CAN	03/28/19		—		1,069,507
USD	137,681,034	GBP	108,253,423	CIT	03/28/19		—		867,254
USD	124,391,414	GBP	97,794,299	HSB	03/28/19		—		770,749
USD	212,532,177	GBP	167,077,164	RBC	03/28/19		—		1,301,753
USD	134,257,276	GBP	105,561,036	SSB	03/28/19		—		845,156
Total gross unrealized appreciation/depreciation on Forward Currency Contracts						$	11,095,514	$	10,159,785

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

Annual Report  103

Description	Shares		Fair Value
Lazard Global Realty Equity Portfolio
Short-Term Investments | 100.0%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $4,321,682)		4,321,682	$	4,321,682
Liabilities in Excess of Cash and Other Assets | (100.0)%				(4,321,682	)
Net Assets | 0.0%			$	—

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

104  Annual Report

Description	Shares		Fair Value
Lazard Global Strategic Equity Portfolio
Common Stocks | 96.5%
Canada | 2.9%
Suncor Energy, Inc.		1,442	$	40,275
Toromont Industries, Ltd.		886		35,214
				75,489
China | 3.3%
Alibaba Group Holding, Ltd. Sponsored ADR (*)		349		47,838
Tencent Holdings, Ltd.		1,000		39,639
				87,477
Denmark | 1.4%
Genmab A/S (*)		219		35,889
Finland | 1.8%
Sampo Oyj, A Shares		1,061		46,643
France | 4.9%
Safran SA		358		43,010
Ubisoft Entertainment SA (*)		271		21,741
Vivendi SA		2,685		65,238
				129,989
Hong Kong | 3.0%
AIA Group, Ltd.		6,800		55,939
Techtronic Industries Co., Ltd.		4,363		22,997
				78,936
India | 1.6%
ICICI Bank, Ltd. Sponsored ADR		4,035		41,520
Indonesia | 0.2%
PT Media Nusantara Citra Tbk		85,300		4,101
Israel | 1.5%
Bank Leumi Le-Israel BM		6,747		40,850

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

Annual Report  105

Description	Shares		Fair Value
Lazard Global Strategic Equity Portfolio (continued)
Japan | 3.2%
Digital Garage, Inc.		1,000	$	22,976
Nexon Co., Ltd. (*)		2,300		29,381
TechnoPro Holdings, Inc.		800		32,678
				85,035
Netherlands | 1.5%
ABN AMRO Group NV		1,661		38,906
New Zealand | 1.3%
Trade Me Group, Ltd.		8,105		34,621
South Africa | 2.4%
Naspers, Ltd., N Shares		166		32,974
Sanlam, Ltd.		5,637		31,261
				64,235
Switzerland | 4.9%
Novartis AG		635		54,387
Partners Group Holding AG		70		42,548
The Swatch Group AG		114		33,350
				130,285
United Kingdom | 9.3%
Bunzl PLC		1,419		42,696
Coca-Cola European Partners PLC		989		45,492
Informa PLC		5,815		46,629
Prudential PLC		1,661		29,677
RELX PLC (*)		2,713		55,850
Rio Tinto PLC		533		25,414
				245,758
United States | 53.3%
Accenture PLC, Class A		432		60,916
Alphabet, Inc., Class A (*)		132		137,935
Aon PLC		449		65,267
Bank of America Corp.		1,967		48,467
Baxter International, Inc.		409		26,920
Biogen, Inc. (*)		127		38,217
Comerica, Inc.		685		47,053
Danaher Corp.		425		43,826

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

106  Annual Report

Description	Shares		Fair Value
Lazard Global Strategic Equity Portfolio (concluded)
Deere & Co.		323	$	48,182
Dollar Tree, Inc. (*)		252		22,761
Electronic Arts, Inc. (*)		265		20,911
EOG Resources, Inc.		421		36,715
Halliburton Co.		1,244		33,066
Henry Schein, Inc. (*)		475		37,297
Intercontinental Exchange, Inc.		938		70,660
IPG Photonics Corp. (*)		101		11,442
IQVIA Holdings, Inc. (*)		623		72,374
Medtronic PLC		618		56,213
Microsoft Corp.		833		84,608
Palo Alto Networks, Inc. (*)		250		47,087
Raytheon Co.		315		48,305
S&P Global, Inc.		339		57,610
The Coca-Cola Co.		1,637		77,512
Union Pacific Corp.		265		36,631
Visa, Inc., Class A		643		84,837
Worldpay, Inc., Class A (*)		538		41,119
Zoetis, Inc.		585		50,041
				1,405,972
Total Common Stocks (Cost $2,505,753)				2,545,706
Short-Term Investments | 3.9%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $102,289)		102,289		102,289
Total Investments | 100.4% (Cost $2,608,042)			$	2,647,995
Liabilities in Excess of Cash and Other Assets | (0.4)%				(11,304	)
Net Assets | 100.0%			$	2,636,691

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

Annual Report  107

Description	Shares		Fair Value
Lazard International Compounders Portfolio
Common Stocks | 86.0%
Australia | 2.2%
Ramsay Health Care, Ltd.		80	$	3,253
Canada | 13.5%
CAE, Inc.		190		3,492
Canadian National Railway Co.		61		4,518
Dollarama, Inc.		187		4,447
National Bank of Canada		83		3,408
Toromont Industries, Ltd.		109		4,332
				20,197
China | 8.0%
Alibaba Group Holding, Ltd. Sponsored ADR (*)		22		3,015
Cie Financiere Richemont SA ADR		287		1,851
Geberit AG ADR		81		3,186
Tencent Holdings, Ltd.		100		3,964
				12,016
Denmark | 4.6%
Coloplast A/S ADR		381		3,524
Genmab A/S Sponsored ADR (*)		201		3,312
				6,836
France | 4.4%
Legrand SA		56		3,163
Ubisoft Entertainment SA (*)		43		3,450
				6,613
Germany | 4.8%
SAP SE Sponsored ADR		41		4,082
Symrise AG ADR		166		3,075
				7,157
India | 4.5%
HDFC Bank, Ltd. ADR		65		6,733
Israel | 2.3%
Check Point Software Technologies, Ltd. (*)		33		3,388

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

108  Annual Report

Description	Shares		Fair Value
Lazard International Compounders Portfolio (continued)
Japan | 3.9%
Pigeon Corp. ADR		356	$	3,774
Shimano, Inc. ADR		149		2,117
				5,891
Netherlands | 2.0%
ASML Holding NV		19		2,986
Norway | 1.9%
Gjensidige Forsikring ASA ADR		187		2,907
South Africa | 5.6%
Clicks Group, Ltd.		318		4,218
Mr Price Group, Ltd.		113		1,927
Sanlam, Ltd.		415		2,301
				8,446
Spain | 1.7%
Industria de Diseno Textil SA		98		2,498
Sweden | 5.0%
Assa Abloy AB ADR		488		4,329
Hexagon AB ADR		68		3,182
				7,511
Taiwan | 2.9%
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		118		4,355
United Kingdom | 13.4%
Bunzl PLC		127		3,821
Compass Group PLC		175		3,674
Intertek Group PLC		57		3,487
London Stock Exchange Group PLC		56		2,900
Prudential PLC		113		2,019
RELX PLC (*)		201		4,138
				20,039

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

Annual Report  109

Description	Shares		Fair Value
Lazard International Compounders Portfolio (concluded)
United States | 5.3%
Aon PLC		33	$	4,797
QIAGEN NV (*)		91		3,135
				7,932
Total Common Stocks (Cost $129,053)				128,758
Total Investments | 86.0% (Cost $129,053)			$	128,758
Cash and Other Assets in Excess of Liabilities | 14.0%				20,947
Net Assets | 100.0%			$	149,705

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

110  Annual Report

Description	Shares		Fair Value
Lazard International Equity Advantage Portfolio
Common Stocks  |  101.9%
Australia  |  7.0%
Alumina, Ltd.		1,284	$	2,061
Aristocrat Leisure, Ltd.		1,018		15,548
BlueScope Steel, Ltd.		843		6,507
CIMIC Group, Ltd.		547		16,723
Coca-Cola Amatil, Ltd.		732		4,222
Cochlear, Ltd.		60		7,291
Coles Group, Ltd. (*)		547		4,523
CSL, Ltd.		372		48,582
Inghams Group, Ltd.		1,531		4,454
Link Administration Holdings, Ltd.		1,186		5,655
Qantas Airways, Ltd.		3,178		12,973
Regis Resources, Ltd.		767		2,619
Sandfire Resources NL		456		2,145
Saracen Mineral Holdings, Ltd. (*)		5,580		11,590
SmartGroup Corp., Ltd.		311		1,945
Wesfarmers, Ltd.		157		3,565
				150,403
Austria  |  0.2%
Raiffeisen Bank International AG		98		2,496
Voestalpine AG		87		2,602
				5,098
Belgium  |  0.3%
UCB SA		69		5,625
China  |  1.3%
China Sunsine Chemical Holdings, Ltd.		3,700		3,391
Yangzijiang Shipbuilding Holdings, Ltd.		27,400		24,911
				28,302
Denmark  |  1.1%
H. Lundbeck A/S		59		2,587
Novo Nordisk A/S, Class B		449		20,640
				23,227

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

Annual Report  111

Description	Shares		Fair Value
Lazard International Equity Advantage Portfolio (continued)
Finland  |  0.5%
Fortum Oyj		202	$	4,430
Neste Oyj		84		6,486
				10,916
France  |  11.2%
Air France-KLM (*)		248		2,681
AXA SA		906		19,520
BNP Paribas SA		208		9,368
Credit Agricole SA		326		3,507
Eiffage SA		71		5,940
Electricite de France SA		1,869		29,449
Faurecia SA		238		8,933
Hermes International		27		14,932
Ipsen SA		131		16,896
Kering SA		16		7,488
L’Oreal SA		87		19,971
Peugeot SA		1,274		27,082
Safran SA		40		4,806
Schneider Electric SE		43		2,927
Societe Generale SA		47		1,492
Total SA		1,108		58,533
Unibail-Rodamco-Westfield REIT (*)		47		7,291
				240,816
Germany  |  7.2%
Allianz SE		253		50,769
Continental AG		114		15,764
Covestro AG		323		15,980
Deutsche Lufthansa AG		537		12,111
HUGO BOSS AG		161		9,929
MTU Aero Engines AG		124		22,522
SAP SE		181		18,029
Schaeffler AG (Preference Shares)		418		3,564
Siltronic AG		84		6,947
				155,615

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

112  Annual Report

Description	Shares		Fair Value
Lazard International Equity Advantage Portfolio (continued)
Hong Kong  |  3.7%
CK Asset Holdings, Ltd.		2,000	$	14,543
CK Hutchison Holdings, Ltd.		500		4,778
Hang Seng Bank, Ltd.		300		6,701
Jardine Matheson Holdings, Ltd.		201		13,995
Kerry Properties, Ltd.		1,500		5,096
Lifestyle International Holdings, Ltd.		3,000		4,524
Link Real Estate Investment Trust		1,000		10,071
Sands China, Ltd.		1,600		6,929
Swire Pacific, Ltd., Class A		500		5,253
Techtronic Industries Co., Ltd.		500		2,635
Xinyi Glass Holdings, Ltd.		4,000		4,393
				78,918
Israel  |  0.3%
Attunity, Ltd. (*)		100		1,968
Israel Discount Bank, Ltd., Class A		1,071		3,301
				5,269
Italy  |  3.8%
Enel SpA		7,619		43,954
Intesa Sanpaolo SpA		10,511		23,295
Poste Italiane SpA		531		4,262
UniCredit SpA		950		10,777
				82,288
Japan  |  25.3%
Advantest Corp.		100		2,015
AGC, Inc.		300		9,309
Canon, Inc.		400		11,022
Capcom Co., Ltd.		500		9,967
Daicel Corp.		1,400		14,387
Daiwa House Industry Co., Ltd.		1,100		34,935
DMG Mori Co., Ltd.		800		8,929
East Japan Railway Co. ADR		2,054		30,019
FUJIFILM Holdings Corp.		300		11,577
Fukuoka Financial Group, Inc.		100		2,017
Haseko Corp.		200		2,094
Hitachi Capital Corp.		100		2,088

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

Annual Report  113

Description	Shares		Fair Value
Lazard International Equity Advantage Portfolio (continued)
Hitachi, Ltd.		400	$	10,633
Honda Motor Co., Ltd.		400		10,452
Japan Post Holdings Co., Ltd.		3,300		37,942
JFE Holdings, Inc.		500		7,955
JSR Corp.		300		4,483
Kakaku.com, Inc.		100		1,759
KDDI Corp.		200		4,766
Kose Corp.		100		15,859
Maeda Corp.		200		1,857
Mitsubishi Heavy Industries, Ltd.		100		3,592
Mitsubishi UFJ Financial Group, Inc.		3,800		18,738
MS&AD Insurance Group Holdings, Inc.		800		22,708
Nippon Steel & Sumitomo Metal Corp.		100		1,710
Nitto Denko Corp.		200		9,986
Nomura Holdings, Inc.		1,700		6,482
NTT DOCOMO, Inc.		1,900		42,664
ORIX Corp.		1,900		27,606
Raysum Co., Ltd.		200		1,748
Seven & I Holdings Co., Ltd.		400		17,417
Shin-Etsu Chemical Co., Ltd.		100		7,704
Shionogi & Co., Ltd.		200		11,341
Showa Denko KK		200		5,866
Sompo Holdings, Inc.		500		16,877
Sumitomo Mitsui Construction Co., Ltd.		900		5,455
Sumitomo Mitsui Trust Holdings, Inc.		400		14,560
Suzuken Co., Ltd.		300		15,397
Taisei Corp.		300		12,755
The Chiba Bank, Ltd.		400		2,218
The Dai-ichi Life Insurance Co., Ltd.		200		3,099
The Shizuoka Bank, Ltd.		300		2,335
Tokai Carbon Co., Ltd.		200		2,247
Tokyo Electron, Ltd.		200		22,946
Tokyo Gas Co., Ltd.		400		10,116
Tosoh Corp.		500		6,470
Toyo Seikan Group Holdings, Ltd.		300		6,843

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

114  Annual Report

Description	Shares		Fair Value
Lazard International Equity Advantage Portfolio (continued)
UT Group Co., Ltd. (*)		200	$	3,462
West Japan Railway Co.		100		7,062
				543,469
Macau  |  0.2%
Wynn Macau, Ltd.		2,400		5,164
Netherlands  |  6.0%
Aegon NV		1,499		6,968
Euronext NV		97		5,571
ING Groep NV		2,255		24,166
Koninklijke Ahold Delhaize NV		712		17,962
Royal Dutch Shell PLC, A Shares		1,639		48,106
Wolters Kluwer NV		445		26,279
				129,052
New Zealand  |  0.3%
a2 Milk Co., Ltd. (*)		746		5,517
Norway  |  2.5%
Aker BP ASA		226		5,723
DNO ASA		1,569		2,288
Equinor ASA		1,797		38,323
Salmar ASA		98		4,847
Telenor ASA		128		2,471
				53,652
Russia  |  0.5%
Evraz PLC		1,680		10,290
South Africa  |  0.1%
Mondi PLC		104		2,152
Spain  |  2.5%
Amadeus IT Group SA		339		23,604
Banco Bilbao Vizcaya Argentaria SA		2,902		15,308
Industria de Diseno Textil SA		614		15,653
				54,565

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

Annual Report  115

Description	Shares		Fair Value
Lazard International Equity Advantage Portfolio (continued)
Sweden  |  1.2%
Atlas Copco AB, Class A		133	$	3,178
Granges AB		175		1,594
Mycronic AB		250		3,347
Sandvik AB		216		3,091
Volvo AB, Class B		1,092		14,358
				25,568
Switzerland  |  9.8%
Ferguson PLC		257		16,460
Georg Fischer AG		7		5,584
Nestle SA		344		27,967
Novartis AG		733		62,780
Partners Group Holding AG		23		13,980
Roche Holding AG		312		77,150
The Swatch Group AG		99		5,739
				209,660
United Kingdom  |  16.6%
Anglo American PLC		477		10,545
Ashtead Group PLC		441		9,137
Associated British Foods PLC		690		17,945
Burberry Group PLC		429		9,439
Cineworld Group PLC		5,426		18,160
Fiat Chrysler Automobiles NV (*)		481		6,993
Games Workshop Group PLC		158		6,098
Hargreaves Lansdown PLC		941		22,171
Howden Joinery Group PLC		1,885		10,425
HSBC Holdings PLC		843		6,918
Imperial Brands PLC		1,382		41,792
International Consolidated Airlines Group SA		2,478		19,666
KAZ Minerals PLC		416		2,821
Lloyds Banking Group PLC		35,153		23,228
National Grid PLC		1,313		12,697
Pearson PLC		499		5,949
Persimmon PLC		130		3,185
Royal Bank of Scotland Group PLC		9,771		26,866
SSP Group PLC		249		2,051

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

116  Annual Report

Description	Shares		Fair Value
Lazard International Equity Advantage Portfolio (concluded)
Tate & Lyle PLC		2,220	$	18,638
Taylor Wimpey PLC		4,026		6,964
Unilever NV		1,009		54,824
Vodafone Group PLC		5,408		10,508
WH Smith PLC		129		2,818
Wm Morrison Supermarkets PLC		2,421		6,562
				356,400
United States  |  0.3%
ICON PLC (*)		48		6,202
Total Common Stocks (Cost $2,416,129)				2,188,168
Total Investments  |  101.9% (Cost $2,416,129)			$	2,188,168
Liabilities in Excess of Cash and Other Assets  |  (1.9)%				(40,106	)
Net Assets  |  100.0%			$	2,148,062

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

Annual Report  117

Description	Shares		Fair Value
Lazard International Equity Concentrated Portfolio
Common Stocks  |  94.6%
Australia  |  2.7%
Amcor, Ltd.		144,170	$	1,345,448
Belgium  |  4.0%
Anheuser-Busch InBev SA/NV		29,737		1,968,062
Canada  |  14.9%
National Bank of Canada		61,912		2,541,875
Rogers Communications, Inc., Class B		46,682		2,392,230
Suncor Energy, Inc.		87,378		2,440,465
				7,374,570
China  |  6.5%
Tencent Holdings, Ltd.		80,918		3,207,511
France  |  7.6%
Safran SA		31,492		3,783,452
Germany  |  5.6%
SAP SE		27,847		2,773,831
Hong Kong  |  4.9%
Techtronic Industries Co., Ltd.		457,500		2,411,458
Japan  |  14.0%
Bridgestone Corp.		58,100		2,229,782
Digital Garage, Inc.		44,500		1,022,415
Keyence Corp.		3,900		1,965,524
Nexon Co., Ltd. (*)		132,300		1,690,082
				6,907,803
Netherlands  |  5.3%
ABN AMRO Group NV		112,758		2,641,167
South Korea  |  2.1%
Samsung Electronics Co., Ltd.		30,226		1,045,840

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

118  Annual Report

Description	Shares		Fair Value
Lazard International Equity Concentrated Portfolio (concluded)
United Kingdom  |  17.0%
BP PLC		314,222	$	1,982,560
Compass Group PLC		119,935		2,517,997
Prudential PLC		120,951		2,161,039
Rio Tinto PLC		36,529		1,741,735
				8,403,331
United States  |  10.0%
Aon PLC		12,942		1,881,249
Medtronic PLC		33,999		3,092,549
				4,973,798
Total Common Stocks (Cost $52,083,152)				46,836,271
Preferred Stocks  |  5.2%
Germany  |  5.2%
Volkswagen AG (Cost $3,043,438)		15,990		2,544,544
Short-Term Investments  |  1.5%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $745,150)		745,150		745,150
Total Investments  |  101.3% (Cost $55,871,740)			$	50,125,965
Liabilities in Excess of Cash and Other Assets  |  (1.3)%				(621,752	)
Net Assets  |  100.0%			$	49,504,213

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

Annual Report  119

Description	Shares		Fair Value
Lazard International Equity Portfolio
Common Stocks  |  93.4%
Australia  |  2.0%
BHP Group PLC		2,295,977	$	47,999,922
Belgium  |  1.8%
Anheuser-Busch InBev SA/NV		670,050		44,345,435
Canada  |  6.1%
Canadian National Railway Co.		336,910		24,952,366
National Bank of Canada		690,600		28,353,450
Rogers Communications, Inc., Class B		930,600		47,688,819
Suncor Energy, Inc.		1,724,510		48,165,519
				149,160,154
Denmark  |  1.4%
Carlsberg A/S, Class B		323,459		34,412,326
Finland  |  2.9%
Nordea Bank Abp		4,072,900		34,351,111
Sampo Oyj, A Shares		821,917		36,132,421
				70,483,532
France  |  11.1%
Air Liquide SA		306,619		37,961,081
Capgemini SE		358,425		35,385,500
Cie de Saint-Gobain		628,711		20,926,855
Cie Generale des Etablissements Michelin SCA		222,644		22,012,638
Safran SA		436,079		52,390,571
Societe Generale SA		653,906		20,760,826
Vinci SA		465,635		38,264,873
Vivendi SA		1,810,281		43,984,966
				271,687,310
Germany  |  3.7%
Fresenius SE & Co. KGaA		362,422		17,518,623
SAP SE		733,169		73,030,729
				90,549,352

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

120  Annual Report

Description	Shares		Fair Value
Lazard International Equity Portfolio (continued)
Hong Kong  |  0.9%
Techtronic Industries Co., Ltd.		4,258,500	$	22,446,326
India  |  1.4%
ICICI Bank, Ltd. Sponsored ADR		3,351,730		34,489,302
Ireland  |  1.4%
Ryanair Holdings PLC Sponsored ADR (*)		464,239		33,118,810
Israel  |  0.8%
Bank Leumi Le-Israel BM		3,102,273		18,782,617
Japan  |  13.0%
Daiwa House Industry Co., Ltd.		2,039,978		64,788,806
Don Quijote Holdings Co., Ltd.		717,300		44,498,528
Kao Corp.		459,180		33,853,463
Makita Corp.		929,200		32,904,429
Nexon Co., Ltd. (*)		2,588,500		33,067,086
Shin-Etsu Chemical Co., Ltd.		427,700		32,950,357
Sumitomo Mitsui Financial Group, Inc.		1,190,900		39,272,110
Suzuki Motor Corp.		240,300		12,159,301
Yamaha Corp.		522,100		22,166,521
				315,660,601
Netherlands  |  6.9%
ABN AMRO Group NV		1,205,463		28,235,951
Koninklijke DSM NV		225,029		18,309,781
Royal Dutch Shell PLC, A Shares		2,821,593		82,815,186
Wolters Kluwer NV		648,529		38,297,773
				167,658,691
Norway  |  3.2%
Equinor ASA		1,324,101		28,238,042
Telenor ASA		2,617,102		50,520,245
				78,758,287

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

Annual Report  121

Description	Shares		Fair Value
Lazard International Equity Portfolio (continued)
Singapore  |  2.7%
DBS Group Holdings, Ltd.		2,659,320	$	45,946,378
NetLink NBN Trust		34,371,800		19,275,848
				65,222,226
South Korea  |  0.7%
Samsung Electronics Co., Ltd.		502,804		17,397,356
Spain  |  1.8%
Red Electrica Corporacion SA		1,955,236		43,552,157
Sweden  |  3.3%
Assa Abloy AB, Class B		2,679,226		47,902,624
Epiroc AB, Class A (*)		3,549,190		33,706,449
				81,609,073
Switzerland  |  7.4%
Ferguson PLC		882,965		56,550,301
Julius Baer Group, Ltd.		620,543		22,174,347
Novartis AG		1,193,435		102,215,774
				180,940,422
United Kingdom  |  15.4%
Compass Group PLC		2,742,591		57,579,823
Diageo PLC		831,826		29,566,022
Howden Joinery Group PLC		3,693,290		20,426,079
Informa PLC		3,469,374		27,819,881
Melrose Industries PLC		11,352,506		23,508,135
Prudential PLC		4,120,592		73,622,882
RELX PLC		3,099,983		63,670,303
RSA Insurance Group PLC		3,699,785		24,140,064
Unilever PLC		1,043,670		54,623,244
				374,956,433
United States  |  5.5%
Aon PLC		439,375		63,867,550
Medtronic PLC		766,910		69,758,134
				133,625,684
Total Common Stocks (Cost $2,318,435,882)				2,276,856,016

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

122  Annual Report

Description	Shares		Fair Value
Lazard International Equity Portfolio (concluded)
Preferred Stocks  |  1.9%
Germany  |  1.9%
Volkswagen AG (Cost $53,619,686)		287,329	$	45,723,664
Short-Term Investments  |  4.7%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $113,486,251)		113,486,251		113,486,251
Total Investments  |  100.0% (Cost $2,485,541,819)			$	2,436,065,931
Cash and Other Assets in Excess of Liabilities  |  0.0%				667,300
Net Assets  |  100.0%			$	2,436,733,231

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

Annual Report  123

Description	Shares		Fair Value
Lazard International Equity Select Portfolio
Common Stocks  |  93.1%
Australia  |  2.4%
BHP Group, Ltd.		75,496	$	1,821,453
Belgium  |  1.8%
Anheuser-Busch InBev SA/NV		20,096		1,329,999
Brazil  |  2.4%
BB Seguridade Participacoes SA		117,000		835,954
Cia de Saneamento Basico do Estado de Sao Paulo		67,100		545,951
Cielo SA		202,740		464,946
				1,846,851
Canada  |  6.1%
Canadian National Railway Co.		11,400		844,311
National Bank of Canada		14,800		607,633
Rogers Communications, Inc., Class B		32,900		1,685,968
Suncor Energy, Inc.		53,900		1,505,426
				4,643,338
China  |  5.8%
58.com, Inc. ADR (*)		11,925		646,454
Ping An Insurance (Group) Co. of China, Ltd., Class H		147,500		1,295,137
Tencent Holdings, Ltd.		62,900		2,493,295
				4,434,886
Denmark  |  1.9%
Carlsberg A/S, Class B		9,610		1,022,394
Genmab A/S (*)		2,762		452,627
				1,475,021
Finland  |  3.3%
Nordea Bank Abp		121,712		1,026,527
Sampo Oyj, A Shares		34,322		1,508,835
				2,535,362

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

124  Annual Report

Description	Shares		Fair Value
Lazard International Equity Select Portfolio (continued)
France  |  7.6%
Cie Generale des Etablissements Michelin SCA		8,134	$	804,202
Safran SA		15,843		1,903,380
Ubisoft Entertainment SA (*)		11,771		944,328
Vinci SA		12,613		1,036,509
Vivendi SA		46,362		1,126,472
				5,814,891
Germany  |  2.9%
SAP SE		22,006		2,192,011
India  |  2.1%
ICICI Bank, Ltd. Sponsored ADR		158,165		1,627,518
Indonesia  |  0.9%
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		27,158		711,811
Ireland  |  1.2%
Ryanair Holdings PLC Sponsored ADR (*)		12,397		884,402
Japan  |  8.9%
Daiwa House Industry Co., Ltd.		41,700		1,324,374
Kao Corp.		11,400		840,475
Komatsu, Ltd.		30,900		658,222
Makita Corp.		39,400		1,395,216
Ryohin Keikaku Co., Ltd.		5,800		1,411,543
Sumitomo Mitsui Financial Group, Inc.		34,276		1,130,314
				6,760,144
Netherlands  |  6.6%
ABN AMRO Group NV		37,391		875,821
Royal Dutch Shell PLC, A Shares		84,001		2,463,706
Wolters Kluwer NV		27,933		1,649,536
				4,989,063

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

Annual Report  125

Description	Shares		Fair Value
Lazard International Equity Select Portfolio (continued)
Norway  |  2.9%
Equinor ASA		46,567	$	993,097
Telenor ASA		64,133		1,238,016
				2,231,113
Russia  |  1.1%
Yandex NV Class A (*)		30,355		830,209
Singapore  |  1.9%
DBS Group Holdings, Ltd.		84,600		1,461,676
South Africa  |  2.1%
Mr Price Group, Ltd.		33,399		569,578
Sanlam, Ltd.		183,288		1,016,452
				1,586,030
South Korea  |  0.7%
Samsung Electronics Co., Ltd.		15,412		533,265
Spain  |  2.0%
Red Electrica Corporacion SA		68,202		1,519,174
Sweden  |  2.1%
Assa Abloy AB, Class B		90,182		1,612,389
Switzerland  |  6.9%
ABB, Ltd.		43,722		833,585
Cie Financiere Richemont SA		7,905		508,034
Ferguson PLC		16,862		1,079,942
Novartis AG		28,516		2,442,349
Sonova Holding AG		2,566		418,390
				5,282,300
Taiwan  |  2.0%
Taiwan Semiconductor Manufacturing Co., Ltd.		205,741		1,493,531
Thailand  |  0.8%
Kasikornbank Public Co. Ltd. (‡)		100,200		570,121

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

126  Annual Report

Description	Shares		Fair Value
Lazard International Equity Select Portfolio (concluded)
United Kingdom  |  9.0%
Ashtead Group PLC		13,868	$	287,323
Compass Group PLC		80,240		1,684,613
Prudential PLC		109,761		1,961,107
RELX PLC		75,092		1,542,308
Unilever PLC		26,094		1,365,699
				6,841,050
United States  |  7.7%
Accenture PLC, Class A		13,950		1,967,089
Aon PLC		11,760		1,709,434
Medtronic PLC		23,525		2,139,834
				5,816,357
Total Common Stocks (Cost $76,410,571)				70,843,965
Preferred Stocks  |  1.9%
Germany  |  1.9%
Volkswagen AG (Cost $1,556,252)		8,923		1,419,948
Short-Term Investments  |  7.5%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $5,712,559)		5,712,559		5,712,559
Total Investments  |  102.5% (Cost $83,679,382)			$	77,976,472
Liabilities in Excess of Cash and Other Assets  |  (2.5)%				(1,892,154	)
Net Assets  |  100.0%			$	76,084,318

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

Annual Report  127

Description	Shares		Fair Value
Lazard International Equity Value Portfolio
Common Stocks  |  84.8%
Canada  |  8.3%
Crescent Point Energy Corp.		102,223	$	309,994
Entertainment One, Ltd.		116,268		526,362
Great Canadian Gaming Corp. (*)		30,319		1,063,119
				1,899,475
China  |  3.4%
Sinotrans, Ltd., Class H (*)		1,811,000		779,263
France  |  6.0%
Carrefour SA		56,204		957,954
Societe Generale SA		13,537		429,785
				1,387,739
Germany  |  6.3%
Allianz SE		4,829		969,018
Bayer AG		6,986		484,417
				1,453,435
India  |  4.5%
ICICI Bank, Ltd. Sponsored ADR		99,700		1,025,913
Ireland  |  0.5%
Ryanair Holdings PLC Sponsored ADR (*)		1,531		109,222
Italy  |  3.5%
Leonardo SpA		92,736		816,277
Japan  |  12.2%
Honda Motor Co., Ltd.		37,000		966,852
Nexon Co., Ltd. (*)		30,600		390,903
Resona Holdings, Inc.		160,300		766,799
Universal Entertainment Corp.		23,700		684,488
				2,809,042

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

128  Annual Report

Description	Shares		Fair Value
Lazard International Equity Value Portfolio (continued)
Netherlands  |  7.0%
Euronext NV		13,410	$	770,149
Koninklijke DSM NV		10,421		847,918
				1,618,067
South Korea  |  3.9%
Kangwon Land, Inc. (*)		31,223		894,995
Switzerland  |  7.3%
Coca-Cola HBC AG		27,850		866,574
Glencore PLC		217,353		801,676
				1,668,250
United Kingdom  |  17.8%
BP PLC		136,655		862,214
Cineworld Group PLC		135,600		453,819
CNH Industrial NV		48,538		436,672
GVC Holdings PLC		49,580		426,145
Standard Chartered PLC		132,868		1,027,026
Vodafone Group PLC		454,516		883,183
				4,089,059
United States  |  4.1%
International Game Technology PLC		64,772		947,615
Total Common Stocks (Cost $20,894,620)				19,498,352
Preferred Stocks  |  4.9%
Germany  |  4.9%
Volkswagen AG (Cost $1,194,398)		7,088		1,127,938

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

Annual Report  129

Description	Shares		Fair Value
Lazard International Equity Value Portfolio (concluded)
Short-Term Investments | 9.8%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $2,249,879)		2,249,879	$	2,249,879
Total Investments | 99.5% (Cost $24,338,897)			$	22,876,169
Cash and Other Assets in Excess of Liabilities | 0.5%				107,738
Net Assets | 100.0%			$	22,983,907

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

130  Annual Report

Description	Shares		Fair Value
Lazard International Small Cap Equity Portfolio
Common Stocks  |  97.5%
Australia  |  3.1%
carsales.com, Ltd.		61,451	$	476,668
Hansen Technologies, Ltd.		294,175		718,820
SpeedCast International, Ltd.		249,166		511,411
				1,706,899
Belgium  |  3.8%
Barco NV		6,585		743,972
Kinepolis Group NV		15,911		887,356
Shurgard Self Storage SA		16,288		452,275
				2,083,603
Brazil  |  1.0%
Notre Dame Intermedica Participacoes SA		73,400		553,827
Canada  |  4.6%
Altus Group, Ltd.		38,765		672,112
Stelco Holdings, Inc.		23,600		260,340
StorageVault Canada, Inc.		290,100		503,616
The Descartes Systems Group, Inc. (*)		18,800		496,165
Toromont Industries, Ltd.		15,200		604,125
				2,536,358
China  |  1.3%
Consun Pharmaceutical Group, Ltd.		693,000		398,843
JNBY Design, Ltd.		245,000		343,353
				742,196
Denmark  |  1.5%
Royal Unibrew A/S		12,191		839,400
Finland  |  1.3%
Altia Oyj		86,300		700,928
France  |  2.4%
Chargeurs SA		32,407		618,589
Kaufman & Broad SA		18,279		697,957
				1,316,546

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

Annual Report  131

Description	Shares		Fair Value
Lazard International Small Cap Equity Portfolio (continued)
Germany  |  10.5%
Aroundtown SA		148,753	$	1,234,551
AURELIUS Equity Opportunities SE & Co. KGaA		10,738		390,280
CompuGroup Medical SE		11,454		530,252
Corestate Capital Holding SA		14,799		513,955
Dermapharm Holding SE		23,792		618,857
FinTech Group AG (*)		30,204		587,793
JOST Werke AG		23,302		703,682
Norma Group SE		11,977		592,261
PATRIZIA Immobilien AG		34,822		665,271
				5,836,902
Hong Kong  |  2.3%
China Water Affairs Group, Ltd.		494,000		529,474
Tongda Group Holdings, Ltd.		2,110,000		208,575
VTech Holdings, Ltd.		64,100		529,878
				1,267,927
India  |  0.9%
Jubilant Life Sciences, Ltd.		47,636		485,776
Ireland  |  3.3%
Dalata Hotel Group PLC		127,054		680,747
Glenveagh Properties PLC (*)		592,142		478,587
Total Produce PLC		405,145		645,521
				1,804,855
Italy  |  3.3%
Banca Generali SpA		31,334		649,533
Carel Industries SpA		52,038		538,981
Cerved Group SpA		74,652		612,158
				1,800,672
Japan  |  25.3%
Ai Holdings Corp.		39,160		687,040
ARTERIA Networks Corp.		45,000		478,719
Create SD Holdings Co., Ltd.		24,700		588,300
DaikyoNishikawa Corp.		60,500		588,793
Digital Garage, Inc.		22,300		512,356
Dip Corp.		36,800		608,550

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

132  Annual Report

Description	Shares		Fair Value
Lazard International Small Cap Equity Portfolio (continued)
Financial Products Group Co., Ltd.		91,737	$	948,524
GMO internet, Inc.		47,200		622,322
Iriso Electronics Co., Ltd.		16,982		621,274
Jafco Co., Ltd.		21,300		674,146
Japan Lifeline Co., Ltd.		51,400		653,202
KOMEDA Holdings Co., Ltd.		37,500		737,522
Macromill, Inc.		37,400		482,256
Nippon Shinyaku Co., Ltd.		10,700		674,067
Nissei ASB Machine Co., Ltd.		22,000		708,142
Open House Co., Ltd.		21,300		726,226
Persol Holdings Co., Ltd.		41,000		602,130
Sanwa Holdings Corp.		58,900		664,676
TechnoPro Holdings, Inc.		15,145		618,632
Tokai Carbon Co., Ltd.		40,000		449,429
USS Co., Ltd.		37,900		632,544
Zenkoku Hosho Co., Ltd.		24,342		756,555
				14,035,405
Jersey  |  1.7%
JTC PLC		188,499		933,408
Luxembourg  |  1.9%
Orion Engineered Carbons SA		16,300		412,064
Stabilus SA		10,319		647,746
				1,059,810
Netherlands  |  2.3%
Aalberts Industries NV		18,127		600,158
Van Lanschot Kempen NV		30,585		692,345
				1,292,503
Singapore  |  0.8%
XP Power, Ltd.		17,019		456,429

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

Annual Report  133

Description	Shares		Fair Value
Lazard International Small Cap Equity Portfolio (continued)
Sweden  |  6.0%
Dometic Group AB		79,618	$	495,712
Granges AB		60,578		551,771
Indutrade AB		28,343		659,019
Lifco AB, B Shares		21,857		810,166
Loomis AB, B Shares		24,473		791,886
				3,308,554
Switzerland  |  1.2%
Kardex AG		5,918		681,062
Taiwan  |  0.3%
TaiDoc Technology Corp.		32,000		182,242
United Kingdom  |  17.2%
Arrow Global Group PLC		188,937		423,607
Ascential PLC		131,287		629,387
Auto Trader Group PLC		135,314		780,960
Burford Capital, Ltd.		33,251		698,394
Clinigen Healthcare, Ltd.		80,792		778,834
Electrocomponents PLC		79,852		513,537
Equiniti Group PLC		244,987		673,176
Hunting PLC		93,415		567,020
Huntsworth PLC		538,264		738,955
Polypipe Group PLC		150,609		626,707
Rentokil Initial PLC		168,339		720,436
Rightmove PLC		133,815		735,303
Savills PLC		58,991		530,070
Smart Metering Systems PLC		109,496		731,116
Victoria PLC (*)		65,126		390,140
				9,537,642
United States  |  1.5%
Core Laboratories NV		5,960		355,573
Samsonite International SA		173,400		489,521
				845,094
Total Common Stocks (Cost $60,459,703)				54,008,038

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

134  Annual Report

Description	Shares		Fair Value
Lazard International Small Cap Equity Portfolio (concluded)
Short-Term Investments  |  1.5%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $850,623)		850,623	$	850,623
Total Investments  |  99.0% (Cost $61,310,326)			$	54,858,661
Cash and Other Assets in Excess of Liabilities  |  1.0%				527,538
Net Assets  |  100.0%			$	55,386,199

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

Annual Report  135

Description	Shares		Fair Value
Lazard International Strategic Equity Portfolio
Common Stocks  |  95.0%
Canada  |  8.9%
Bombardier, Inc., Class B (*)		12,668,000	$	18,836,830
CAE, Inc.		7,732,561		142,111,013
National Bank of Canada		2,433,220		99,898,902
Rogers Communications, Inc., Class B		2,473,170		126,738,187
Suncor Energy, Inc.		3,847,508		107,460,797
				495,045,729
China  |  4.1%
Alibaba Group Holding, Ltd. Sponsored ADR (*)		541,440		74,215,181
Ping An Bank Co., Ltd., Class A		29,444,592		40,416,334
Ping An Insurance (Group) Co. of China, Ltd.,
Class H		6,334,500		55,620,638
Tencent Holdings, Ltd.		1,427,200		56,572,818
				226,824,971
Denmark  |  2.9%
Carlsberg A/S, Class B		893,980		95,109,214
Genmab A/S (*)		418,532		68,587,638
				163,696,852
Finland  |  2.9%
Sampo Oyj, A Shares		3,723,813		163,703,123
France  |  8.0%
Cie de Saint-Gobain		1,833,986		61,044,835
Safran SA		1,253,881		150,641,377
Ubisoft Entertainment SA (*)		1,002,641		80,436,835
Vivendi SA		6,286,642		152,748,515
				444,871,562
Germany  |  0.4%
Knorr-Bremse AG		258,187		23,266,046
Hong Kong  |  1.9%
AIA Group, Ltd.		13,155,000		108,216,427

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

136  Annual Report

Description	Shares		Fair Value
Lazard International Strategic Equity Portfolio (continued)
India  |  1.9%
Housing Development Finance Corp., Ltd.		2,410,516	$	67,981,242
ICICI Bank, Ltd. Sponsored ADR		3,747,300		38,559,717
				106,540,959
Ireland  |  1.4%
Kerry Group PLC, Class A		360,128		35,575,584
Ryanair Holdings PLC Sponsored ADR (*)		606,480		43,266,283
				78,841,867
Israel  |  0.7%
Bank Leumi Le-Israel BM		6,456,275		39,089,319
Japan  |  12.9%
AEON Financial Service Co., Ltd.		4,642,800		83,402,182
Daiwa House Industry Co., Ltd.		3,980,000		126,403,054
Don Quijote Holdings Co., Ltd.		1,483,700		92,043,030
Kao Corp.		1,432,100		105,582,873
Makita Corp.		2,904,100		102,838,735
Nexon Co., Ltd. (*)		8,462,400		108,103,887
Suzuki Motor Corp.		854,600		43,243,190
Yamaha Corp.		1,288,200		54,692,420
				716,309,371
Netherlands  |  4.4%
ABN AMRO Group NV		4,775,405		111,855,862
Wolters Kluwer NV		2,272,982		134,227,070
				246,082,932
New Zealand  |  0.7%
Z Energy, Ltd.		10,774,387		39,607,077
Norway  |  1.6%
Equinor ASA		4,092,404		87,275,424
Philippines  |  0.8%
GT Capital Holdings, Inc.		2,430,637		45,061,486
Singapore  |  2.2%
DBS Group Holdings, Ltd.		6,955,100		120,166,681

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

Annual Report  137

Description	Shares		Fair Value
Lazard International Strategic Equity Portfolio (continued)
Spain  |  2.3%
Bankia SA		10,306,619	$	30,012,669
Red Electrica Corporacion SA		4,519,788		100,676,603
				130,689,272
Sweden  |  3.1%
Assa Abloy AB, Class B		5,035,832		90,037,035
Hexagon AB, B Shares		1,745,346		80,559,962
				170,596,997
Switzerland  |  5.6%
Julius Baer Group, Ltd.		2,574,310		91,989,826
Novartis AG		1,698,428		145,467,606
Partners Group Holding AG		119,797		72,816,459
				310,273,891
United Kingdom  |  20.5%
Ashtead Group PLC		2,760,586		57,194,897
British American Tobacco PLC		1,639,550		52,283,905
Bunzl PLC		2,715,457		81,704,760
CNH Industrial NV		7,545,172		67,880,077
Coca-Cola European Partners PLC		2,474,362		113,815,254
Compass Group PLC		3,742,463		78,571,817
Diageo PLC		4,412,120		156,822,264
Informa PLC		18,282,317		146,600,479
Prudential PLC		4,307,997		76,971,260
RELX PLC		7,223,148		148,355,658
Rio Tinto PLC		2,560,857		122,103,895
The Weir Group PLC		2,224,267		36,570,906
				1,138,875,172
United States  |  7.8%
Accenture PLC, Class A		1,061,480		149,679,295
Aon PLC		923,620		134,257,403
Medtronic PLC		1,623,170		147,643,543
				431,580,241
Total Common Stocks (Cost $5,271,842,902)				5,286,615,399

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

138  Annual Report

Description	Shares		Fair Value
Lazard International Strategic Equity Portfolio (concluded)
Preferred Stocks  |  2.6%
Germany  |  2.6%
Volkswagen AG (Cost $170,720,845)		905,090	$	144,030,123
Short-Term Investments  |  2.1%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $114,430,082)		114,430,082		114,430,082
Total Investments  |  99.7% (Cost $5,556,993,829)			$	5,545,075,604
Cash and Other Assets in Excess of Liabilities  |  0.3%				15,199,878
Net Assets  |  100.0%			$	5,560,275,482

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

Annual Report  139

Description	Shares		Fair Value
Lazard Managed Equity Volatility Portfolio
Common Stocks  |  97.3%
Australia  |  3.8%
AGL Energy, Ltd.		5,140	$	74,375
Cochlear, Ltd.		367		44,595
CSL, Ltd.		1,673		218,487
Link Administration Holdings, Ltd.		9,163		43,690
Northern Star Resources, Ltd.		10,365		67,855
Qantas Airways, Ltd.		24,904		101,664
Regis Resources, Ltd.		21,162		72,263
Sandfire Resources NL		9,897		46,562
Saracen Mineral Holdings, Ltd. (*)		33,704		70,003
Shopping Centres Australasia Property Group REIT		27,128		48,724
				788,218
Belgium  |  0.8%
Proximus SADP		2,220		59,917
UCB SA		1,173		95,632
				155,549
Canada  |  6.8%
Air Canada (*)		2,561		48,699
Alimentation Couche-Tard, Inc., Class B		1,115		55,464
BRP, Inc.		2,016		52,187
CAE, Inc.		4,473		82,206
CGI Group, Inc., Class A (*)		907		55,475
CI Financial Corp.		3,804		48,149
Colliers International Group, Inc.		825		45,498
Constellation Software, Inc.		80		51,208
National Bank of Canada		3,166		129,984
Parex Resources, Inc. (*)		3,899		46,695
Rogers Communications, Inc., Class B		2,707		138,721
Royal Bank of Canada		4,160		284,728
Suncor Energy, Inc.		2,770		77,366
Teck Resources, Ltd., Class B		1,835		39,504
The Toronto-Dominion Bank		5,493		273,041
				1,428,925

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

140  Annual Report

Description	Shares		Fair Value
Lazard Managed Equity Volatility Portfolio (continued)
China  |  0.3%
Yangzijiang Shipbuilding Holdings, Ltd.		58,500	$	53,186
Denmark  |  0.4%
Carlsberg A/S, Class B		459		48,832
H. Lundbeck A/S		931		40,826
				89,658
France  |  1.7%
Engie SA		6,966		99,559
Hermes International		91		50,327
Ipsen SA		480		61,907
Total SA		1,733		91,551
Unibail-Rodamco-Westfield REIT (*)		353		54,763
				358,107
Germany  |  1.7%
Allianz SE		805		161,536
Covestro AG		1,135		56,151
Deutsche Lufthansa AG		3,983		89,826
Schaeffler AG (Preference Shares)		4,373		37,287
				344,800
Hong Kong  |  1.8%
CK Asset Holdings, Ltd.		8,500		61,810
Kerry Properties, Ltd.		19,000		64,552
Link Real Estate Investment Trust		16,000		161,130
Swire Pacific, Ltd., Class A		8,000		84,042
				371,534
Israel  |  1.6%
Bank Leumi Le-Israel BM		19,524		118,208
Israel Discount Bank, Ltd., Class A		45,950		141,609
Nice, Ltd. (*)		597		64,651
				324,468
Italy  |  1.7%
Enel SpA		22,383		129,129
Poste Italiane SpA		11,566		92,826
Terna SpA		22,882		129,893
				351,848

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

Annual Report  141

Description	Shares		Fair Value
Lazard Managed Equity Volatility Portfolio (continued)
Japan  |  7.8%
Amano Corp.		2,300	$	44,141
Astellas Pharma, Inc.		5,700		72,539
Daito Trust Construction Co., Ltd.		400		54,634
Daiwa House Industry Co., Ltd.		3,500		111,158
East Japan Railway Co.		3,100		275,539
Japan Post Holdings Co., Ltd.		15,900		182,809
Kamigumi Co., Ltd.		2,000		40,810
McDonald’s Holdings Co. Japan, Ltd.		2,400		102,252
MS&AD Insurance Group Holdings, Inc.		2,200		62,448
NTT DOCOMO, Inc.		7,600		170,658
Seven & I Holdings Co., Ltd.		2,600		113,210
Shikoku Electric Power Co., Inc.		3,900		47,091
Sompo Holdings, Inc.		1,200		40,505
Sumitomo Mitsui Construction Co., Ltd.		10,900		66,067
Taisei Corp.		1,500		63,773
The Gunma Bank, Ltd.		11,400		47,355
Tokyo Gas Co., Ltd.		3,500		88,513
Tosoh Corp.		3,600		46,581
				1,630,083
Malta  |  0.2%
Kindred Group PLC		4,373		40,370
Netherlands  |  1.0%
Euronext NV		1,165		66,907
Koninklijke Ahold Delhaize NV		3,612		91,122
Royal Dutch Shell PLC, A Shares		2,003		58,789
				216,818
New Zealand  |  0.2%
Spark New Zealand, Ltd.		17,472		48,527
Norway  |  2.7%
DNO ASA		28,360		41,357
Equinor ASA		8,546		182,254
Leroy Seafood Group ASA		7,552		57,830
Marine Harvest ASA		1,793		37,744

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

142  Annual Report

Description	Shares		Fair Value
Lazard Managed Equity Volatility Portfolio (continued)
Salmar ASA		1,820	$	90,016
Telenor ASA		8,205		158,388
				567,589
Portugal  |  0.2%
Galp Energia SGPS SA		2,947		46,666
Singapore  |  0.8%
Singapore Technologies Engineering, Ltd.		43,600		111,191
UOL Group, Ltd.		10,100		45,699
				156,890
Spain  |  0.3%
Amadeus IT Group SA		724		50,411
Corporacion Financiera Alba SA		417		20,285
				70,696
Sweden  |  0.3%
Axfood AB		3,758		64,405
Switzerland  |  2.2%
Partners Group Holding AG		101		61,391
Roche Holding AG		1,466		362,504
The Swatch Group AG		666		38,605
				462,500
United Kingdom  |  6.3%
Admiral Group PLC		3,328		86,511
Anglo American PLC		3,326		73,525
Cineworld Group PLC		24,201		80,995
Compass Group PLC		7,598		159,518
GlaxoSmithKline PLC		4,373		82,998
Hargreaves Lansdown PLC		1,893		44,602
Howden Joinery Group PLC		8,211		45,412
Imperial Brands PLC		4,317		130,546
International Consolidated Airlines Group SA		6,485		50,893
Lloyds Banking Group PLC		70,360		46,492
National Grid PLC		19,950		192,928
Pearson PLC		6,751		80,482

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

Annual Report  143

Description	Shares		Fair Value
Lazard Managed Equity Volatility Portfolio (continued)
Rio Tinto, Ltd.		986	$	54,535
Tate & Lyle PLC		5,987		50,263
WH Smith PLC		1,888		41,240
Wm Morrison Supermarkets PLC		37,832		102,540
				1,323,480
United States  |  54.7%
Adobe, Inc. (*)		368		83,256
Aflac, Inc.		1,951		88,888
American Electric Power Co., Inc.		2,824		211,066
Anthem, Inc.		290		76,163
Aon PLC		2,360		343,050
Apple, Inc.		329		51,896
Atmos Energy Corp.		2,413		223,733
Avnet, Inc.		2,839		102,488
Best Buy Co., Inc.		716		37,919
BGC Partners, Inc., Class A		5,214		26,956
Booking Holdings, Inc. (*)		25		43,061
Bristol-Myers Squibb Co.		1,257		65,339
Broadridge Financial Solutions, Inc.		1,651		158,909
Burlington Stores, Inc. (*)		343		55,796
Carnival PLC		928		44,513
Cboe Global Markets, Inc.		547		53,513
CBRE Group, Inc., Class A (*)		1,159		46,406
Centene Corp. (*)		511		58,918
Cigna Corp.		1,272		241,505
Comcast Corp., Class A		1,564		53,254
Copart, Inc. (*)		1,087		51,937
Cracker Barrel Old Country Store, Inc.		420		67,141
Darden Restaurants, Inc.		1,145		114,340
Eastman Chemical Co.		547		39,991
Eli Lilly & Co.		3,137		363,014
Encompass Health Corp.		1,651		101,867
Exelon Corp.		2,895		130,565
F5 Networks, Inc. (*)		896		145,179
FactSet Research Systems, Inc.		470		94,061

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

144  Annual Report

Description	Shares		Fair Value
Lazard Managed Equity Volatility Portfolio (continued)
Fiserv, Inc. (*)		2,510	$	184,460
Graco, Inc.		2,188		91,568
Grand Canyon Education, Inc. (*)		463		44,513
H&R Block, Inc.		1,886		47,848
Honeywell International, Inc.		732		96,712
Humana, Inc.		345		98,836
Ingredion, Inc.		522		47,711
Insperity, Inc.		796		74,315
Intel Corp.		1,942		91,138
Intercontinental Exchange, Inc.		1,205		90,773
Intuit, Inc.		378		74,409
IQVIA Holdings, Inc. (*)		744		86,430
j2 Global, Inc.		932		64,662
Johnson & Johnson		1,926		248,550
Jones Lang LaSalle, Inc.		332		42,031
KAR Auction Services, Inc.		1,286		61,368
Kimberly-Clark Corp.		2,211		251,921
Lamb Weston Holdings, Inc.		1,523		112,032
Lockheed Martin Corp.		435		113,900
Lowe’s Cos., Inc.		534		49,320
LPL Financial Holdings, Inc.		846		51,674
MasterCard, Inc., Class A		1,095		206,572
McGrath RentCorp		979		50,399
MetLife, Inc.		1,481		60,810
Morgan Stanley		1,645		65,224
NetApp, Inc.		788		47,020
Newmark Group, Inc., Class A		2,419		19,400
NIKE, Inc., Class B		2,207		163,627
Nordstrom, Inc.		694		32,347
Northern Trust Corp.		505		42,213
Occidental Petroleum Corp.		1,496		91,825
Omnicom Group, Inc.		3,349		245,281
Paychex, Inc.		2,736		178,250
PepsiCo, Inc.		2,930		323,706
Philip Morris International, Inc.		2,212		147,673

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

Annual Report  145

Description	Shares		Fair Value
Lazard Managed Equity Volatility Portfolio (continued)
Phillips 66		491	$	42,300
Pinnacle West Capital Corp.		535		45,582
Ralph Lauren Corp.		614		63,524
Raytheon Co.		1,121		171,905
Republic Services, Inc.		4,356		314,024
Rockwell Automation, Inc.		317		47,702
Ross Stores, Inc.		3,389		281,965
Simon Property Group, Inc. REIT		1,794		301,374
Starbucks Corp.		3,980		256,312
Synchrony Financial		2,479		58,157
Sysco Corp.		4,614		289,113
Texas Instruments, Inc.		1,427		134,852
The Boeing Co.		512		165,120
The Estee Lauder Cos., Inc., Class A		2,144		278,934
The Procter & Gamble Co.		3,415		313,907
The Southern Co.		1,196		52,528
The TJX Cos., Inc.		6,133		274,390
The Toro Co.		1,723		96,281
Tyson Foods, Inc., Class A		1,471		78,551
United States Cellular Corp. (*)		1,211		62,936
UnitedHealth Group, Inc.		340		84,701
Unum Group		1,446		42,483
USANA Health Sciences, Inc. (*)		499		58,747
Verizon Communications, Inc.		5,699		320,398
Visa, Inc., Class A		438		57,790
Walgreens Boots Alliance, Inc.		929		63,479
Waste Management, Inc.		2,381		211,885
WW Grainger, Inc.		420		118,591
Xcel Energy, Inc.		1,391		68,535
Zoetis, Inc.		2,364		202,217
				11,431,525
Total Common Stocks (Cost $21,401,600)				20,325,842

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

146  Annual Report

Description	Shares		Fair Value
Lazard Managed Equity Volatility Portfolio (concluded)
Short-Term Investments  |  4.3%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $903,136)		903,136	$	903,136
Total Investments  |  101.6% (Cost $22,304,736)			$	21,228,978
Liabilities in Excess of Cash and Other Assets  |  (1.6)%				(336,911	)
Net Assets  |  100.0%			$	20,892,067

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

Annual Report  147

Description	Shares		Fair Value
Lazard US Equity Concentrated Portfolio
Common Stocks  |  97.2%
Auto Components  |  2.3%
Aptiv PLC		413,970	$	25,488,133
Beverages  |  15.7%
Molson Coors Brewing Co., Class B		474,867		26,668,531
The Coca-Cola Co.		3,063,290		145,046,781
				171,715,312
Building Products  |  4.7%
Armstrong World Industries, Inc.		870,920		50,696,253
Capital Markets  |  3.7%
S&P Global, Inc.		234,770		39,896,814
Communications Equipment  |  14.7%
Cisco Systems, Inc.		2,452,425		106,263,575
Motorola Solutions, Inc.		476,515		54,818,286
				161,081,861
Construction Materials  |  4.9%
Vulcan Materials Co.		545,508		53,896,190
Entertainment  |  3.9%
Electronic Arts, Inc. (*)		543,572		42,893,267
Health Care Equipment & Supplies  |  14.2%
Baxter International, Inc.		748,133		49,242,114
Medtronic PLC		1,161,035		105,607,744
				154,849,858
Interactive Media & Services  |  6.4%
Alphabet, Inc., Class A (*)		66,445		69,432,367
Internet & Direct Marketing Retail  |  3.0%
eBay, Inc. (*)		1,181,610		33,167,793

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

148  Annual Report

Description	Shares		Fair Value
Lazard US Equity Concentrated Portfolio (concluded)
Machinery  |  4.4%
Kennametal, Inc.		710,090	$	23,631,795
Wabtec Corp.		351,195		24,671,449
				48,303,244
Semiconductors & Semiconductor Equipment  |  14.9%
Analog Devices, Inc.		1,340,480		115,053,398
Skyworks Solutions, Inc.		716,186		47,998,786
				163,052,184
Specialty Retail  |  4.4%
Lowe’s Cos., Inc.		453,905		41,922,666
Ross Stores, Inc.		71,766		5,970,931
				47,893,597
Total Common Stocks (Cost $1,087,862,296)				1,062,366,873
Short-Term Investments  |  2.7%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $29,746,626)		29,746,626		29,746,626
Total Investments  |  99.9% (Cost $1,117,608,922)			$	1,092,113,499
Cash and Other Assets in Excess of Liabilities  |  0.1%				1,618,747
Net Assets  |  100.0%			$	1,093,732,246

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

Annual Report  149

Description	Shares		Fair Value
Lazard US Equity Select Portfolio
Common Stocks  |  100.0%
Aerospace & Defense  |  3.7%
Raytheon Co.		6,445	$	988,341
United Technologies Corp.		15,795		1,681,851
				2,670,192
Auto Components  |  0.8%
Aptiv PLC		9,735		599,384
Banks  |  10.7%
Bank of America Corp.		61,940		1,526,202
Citizens Financial Group, Inc.		26,535		788,885
Comerica, Inc.		10,975		753,873
Commerce Bancshares, Inc.		18,465		1,040,872
SunTrust Banks, Inc.		32,630		1,645,857
Wells Fargo & Co.		41,340		1,904,947
				7,660,636
Beverages  |  4.3%
The Coca-Cola Co.		64,970		3,076,330
Biotechnology  |  0.6%
Biogen, Inc. (*)		1,465		440,848
Capital Markets  |  3.4%
Intercontinental Exchange, Inc.		32,140		2,421,106
Communications Equipment  |  4.6%
Cisco Systems, Inc.		60,450		2,619,298
Motorola Solutions, Inc.		6,115		703,470
				3,322,768
Construction Materials  |  0.7%
Vulcan Materials Co.		5,305		524,134
Electrical Equipment  |  2.3%
Eaton Corp. PLC		16,255		1,116,068
Rockwell Automation, Inc.		3,600		541,728
				1,657,796

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

150  Annual Report

Description	Shares		Fair Value
Lazard US Equity Select Portfolio (continued)
Energy Equipment & Services  |  0.7%
Halliburton Co.		19,750	$	524,955
Entertainment  |  0.7%
Electronic Arts, Inc. (*)		6,647		524,515
Equity Real Estate Investment Trusts (REITs)  |  1.4%
Prologis, Inc.		17,510		1,028,187
Health Care Equipment & Supplies  |  5.4%
Danaher Corp.		11,545		1,190,520
Medtronic PLC		29,725		2,703,786
				3,894,306
Health Care Providers & Services  |  3.1%
CVS Health Corp.		12,105		793,120
Humana, Inc.		3,015		863,737
Laboratory Corp. of America Holdings (*)		4,275		540,189
				2,197,046
Hotels, Restaurants & Leisure  |  3.7%
McDonald’s Corp.		10,625		1,886,681
Starbucks Corp.		11,455		737,702
				2,624,383
Household Products  |  3.2%
The Procter & Gamble Co.		25,305		2,326,036
Industrial Conglomerates  |  2.2%
Honeywell International, Inc.		11,988		1,583,855
Insurance  |  1.8%
Aon PLC		8,760		1,273,354
Interactive Media & Services  |  6.2%
Alphabet, Inc., Class A (*)		4,240		4,430,630
Internet & Direct Marketing Retail  |  1.1%
eBay, Inc. (*)		26,800		752,276

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

Annual Report  151

Description	Shares		Fair Value
Lazard US Equity Select Portfolio (continued)
IT Services  |  4.3%
Accenture PLC, Class A		4,070	$	573,911
DXC Technology Co.		6,528		347,094
Visa, Inc., Class A		11,845		1,562,829
Worldpay, Inc., Class A (*)		7,620		582,396
				3,066,230
Life Sciences Tools & Services  |  1.0%
Thermo Fisher Scientific, Inc.		3,265		730,674
Machinery  |  1.8%
Deere & Co.		5,495		819,689
Stanley Black & Decker, Inc.		3,670		439,446
				1,259,135
Multiline Retail  |  1.1%
Dollar Tree, Inc. (*)		8,570		774,042
Oil, Gas & Consumable Fuels  |  5.8%
Chevron Corp.		17,240		1,875,540
ConocoPhillips		19,685		1,227,360
EOG Resources, Inc.		11,740		1,023,845
				4,126,745
Pharmaceuticals  |  8.3%
Johnson & Johnson		22,095		2,851,360
Pfizer, Inc.		49,314		2,152,556
Zoetis, Inc.		11,324		968,655
				5,972,571
Road & Rail  |  1.2%
Norfolk Southern Corp.		5,545		829,199
Semiconductors & Semiconductor Equipment  |  2.7%
Analog Devices, Inc.		17,253		1,480,825
Skyworks Solutions, Inc.		6,610		443,002
				1,923,827

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

152  Annual Report

Description	Shares		Fair Value
Lazard US Equity Select Portfolio (concluded)
Software  |  6.1%
Microsoft Corp.		34,610	$	3,515,338
Palo Alto Networks, Inc. (*)		4,480		843,808
				4,359,146
Specialty Retail  |  3.3%
Lowe’s Cos., Inc.		17,010		1,571,044
Ross Stores, Inc.		9,180		763,776
				2,334,820
Technology Hardware, Storage & Peripherals  |  3.8%
Apple, Inc.		17,233		2,718,334
Total Common Stocks (Cost $68,376,553)				71,627,460
Short-Term Investments  |  0.4%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $258,650)		258,650		258,650
Total Investments  |  100.4% (Cost $68,635,203)			$	71,886,110
Liabilities in Excess of Cash and Other Assets  |  (0.4)%				(319,151	)
Net Assets  |  100.0%			$	71,566,959

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

Annual Report  153

Description	Shares		Fair Value
Lazard US Realty Equity Portfolio
Common Stocks  |  3.3%
Hotels, Restaurants & Leisure  |  3.3%
Hilton Worldwide Holdings, Inc. (Cost $1,969,354)		27,333	$	1,962,509
Real Estate Investment Trusts  |  96.1%
Equity Real Estate Investment Trusts  |  96.1%
Alexandria Real Estate Equities, Inc.		21,788		2,510,849
American Homes 4 Rent, Class A		142,543		2,829,479
American Tower Corp.		12,238		1,935,929
Americold Realty Trust		59,287		1,514,190
Apartment Investment & Management Co., Class A		13,500		592,380
AvalonBay Communities, Inc.		14,472		2,518,852
Boston Properties, Inc.		21,238		2,390,337
Corporate Office Properties Trust		42,389		891,441
Crown Castle International Corp.		1,660		180,326
Equinix, Inc.		12,333		4,348,122
Equity LifeStyle Properties, Inc.		27,398		2,661,168
Essential Properties Realty Trust, Inc.		108,437		1,500,768
Essex Property Trust, Inc.		12,382		3,036,190
Extra Space Storage, Inc.		21,103		1,909,399
Federal Realty Investment Trust		12,342		1,456,850
HCP, Inc.		65,198		1,820,980
Hudson Pacific Properties, Inc.		41,611		1,209,216
Invitation Homes, Inc.		37,116		745,289
Park Hotels & Resorts, Inc.		83,765		2,176,215
Physicians Realty Trust		56,973		913,277
Prologis, Inc.		74,094		4,350,800
Public Storage		12,562		2,542,674
RLJ Lodging Trust		35,458		581,511
Simon Property Group, Inc.		30,373		5,102,360
Sun Communities, Inc.		10,672		1,085,449
Sunstone Hotel Investors, Inc.		33,456		435,263
The Macerich Co.		55,359		2,395,938

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

154  Annual Report

Description	Shares		Fair Value
Lazard US Realty Equity Portfolio (concluded)
VICI Properties, Inc.		31,445	$	590,537
Vornado Realty Trust		21,240		1,317,517
Weyerhaeuser Co.		82,208		1,797,067
Total Real Estate Investment Trusts (Cost $57,982,583)				57,340,373
Total Investments  |  99.4% (Cost $59,951,937)			$	59,302,882
Cash and Other Assets in Excess of Liabilities  |  0.6%				358,632
Net Assets  |  100.0%			$	59,661,514

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

Annual Report  155

Description	Shares		Fair Value
Lazard US Small-Mid Cap Equity Portfolio
Common Stocks  |  99.3%
Air Freight & Logistics  |  1.1%
Echo Global Logistics, Inc. (*)		70,883	$	1,441,051
Airlines  |  1.4%
Alaska Air Group, Inc.		28,820		1,753,697
Auto Components  |  1.2%
Modine Manufacturing Co. (*)		141,980		1,534,804
Banks  |  10.2%
Cadence BanCorp		77,920		1,307,498
Comerica, Inc.		34,395		2,362,593
Commerce Bancshares, Inc.		50,417		2,842,006
First Republic Bank		10,850		942,865
PacWest Bancorp		57,971		1,929,275
Sterling Bancorp		52,200		861,822
Wintrust Financial Corp.		40,695		2,705,810
				12,951,869
Biotechnology  |  1.5%
Cellectis SA ADR (*)		44,120		734,598
Exelixis, Inc. (*)		61,695		1,213,541
				1,948,139
Building Products  |  2.0%
Armstrong World Industries, Inc.		32,850		1,912,199
PGT Innovations, Inc. (*)		37,985		602,062
				2,514,261
Capital Markets  |  1.1%
Morningstar, Inc.		13,235		1,453,732
Chemicals  |  3.9%
Ingevity Corp. (*)		18,695		1,564,584
Innospec, Inc.		30,110		1,859,594
Valvoline, Inc.		78,700		1,522,845
				4,947,023

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

156  Annual Report

Description	Shares		Fair Value
Lazard US Small-Mid Cap Equity Portfolio (continued)
Commercial Services & Supplies  |  1.1%
The Brink’s Co. N Ap		22,700	$	1,467,555
Communications Equipment  |  1.7%
Ciena Corp. (*)		64,445		2,185,330
Construction & Engineering  |  0.7%
Dycom Industries, Inc. (*)		15,695		848,158
Construction Materials  |  1.3%
Eagle Materials, Inc.		26,680		1,628,280
Containers & Packaging  |  1.4%
Graphic Packaging Holding Co.		165,210		1,757,834
Electric Utilities  |  3.8%
OGE Energy Corp.		63,300		2,480,727
PNM Resources, Inc.		58,560		2,406,230
				4,886,957
Electrical Equipment  |  5.3%
Atkore International Group, Inc. (*)		119,740		2,375,642
EnerSys		21,995		1,707,032
Generac Holdings, Inc. (*)		13,370		664,489
Regal Beloit Corp.		29,450		2,062,972
				6,810,135
Electronic Equipment, Instruments & Components  |  1.3%
FLIR Systems, Inc.		37,655		1,639,499
Equity Real Estate Investment Trusts (REITs)  |  12.1%
Alexandria Real Estate Equities, Inc.		23,430		2,700,073
Brixmor Property Group, Inc.		91,600		1,345,604
Camden Property Trust		32,735		2,882,317
Hudson Pacific Properties, Inc.		59,390		1,725,873
Invitation Homes, Inc.		72,075		1,447,266

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

Annual Report  157

Description	Shares		Fair Value
Lazard US Small-Mid Cap Equity Portfolio (continued)
Kilroy Realty Corp.		35,150	$	2,210,232
PS Business Parks, Inc.		23,850		3,124,350
				15,435,715
Food & Staples Retailing  |  0.8%
Sprouts Farmers Market, Inc. (*)		45,350		1,066,179
Food Products  |  1.1%
The Simply Good Foods Co. (*)		75,540		1,427,706
Health Care Equipment & Supplies  |  5.3%
AngioDynamics, Inc. (*)		87,190		1,755,135
Avanos Medical, Inc. (*)		23,405		1,048,310
Lantheus Holdings, Inc. (*)		89,070		1,393,946
STERIS PLC		23,470		2,507,769
				6,705,160
Health Care Providers & Services  |  1.3%
Henry Schein, Inc. (*)		20,400		1,601,808
Health Care Technology  |  1.0%
Evolent Health, Inc., Class A (*)		65,930		1,315,304
Hotels, Restaurants & Leisure  |  2.4%
Penn National Gaming, Inc. (*)		80,780		1,521,088
The Cheesecake Factory, Inc.		33,920		1,475,859
				2,996,947
Household Durables  |  1.8%
Leggett & Platt, Inc.		65,130		2,334,259
Insurance  |  6.5%
Arch Capital Group, Ltd. (*)		108,610		2,902,059
Brown & Brown, Inc.		100,875		2,780,115
Reinsurance Group of America, Inc.		18,410		2,581,635
				8,263,809

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

158  Annual Report

Description	Shares		Fair Value
Lazard US Small-Mid Cap Equity Portfolio (continued)
IT Services  |  3.0%
CoreLogic, Inc. (*)		46,030	$	1,538,323
Leidos Holdings, Inc.		42,825		2,257,734
				3,796,057
Life Sciences Tools & Services  |  1.3%
Cambrex Corp. (*)		43,615		1,646,902
Machinery  |  4.9%
Gates Industrial Corp. PLC		139,605		1,848,370
Kennametal, Inc.		45,559		1,516,204
TriMas Corp. (*)		58,545		1,597,693
Wabtec Corp.		18,660		1,310,865
				6,273,132
Media  |  1.6%
Scholastic Corp.		49,332		1,986,106
Oil, Gas & Consumable Fuels  |  1.8%
Cabot Oil & Gas Corp.		51,300		1,146,555
Centennial Resource Development, Inc., Class A (*)		109,900		1,211,098
				2,357,653
Pharmaceuticals  |  1.7%
Catalent, Inc. (*)		69,590		2,169,816
Professional Services  |  1.2%
FTI Consulting, Inc. (*)		22,305		1,486,405
Semiconductors & Semiconductor Equipment  |  2.4%
Cypress Semiconductor Corp.		113,670		1,445,882
MKS Instruments, Inc.		25,575		1,652,401
				3,098,283

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

Annual Report  159

Description	Shares		Fair Value
Lazard US Small-Mid Cap Equity Portfolio (concluded)
Software  |  5.1%
Bottomline Technologies de, Inc. (*)		17,195	$	825,360
CyberArk Software, Ltd. (*)		26,960		1,998,814
j2 Global, Inc.		27,165		1,884,708
Palo Alto Networks, Inc. (*)		9,200		1,732,820
				6,441,702
Specialty Retail  |  1.5%
Floor & Decor Holdings, Inc., Class A (*)		34,000		880,600
Foot Locker, Inc.		18,500		984,200
				1,864,800
Textiles, Apparel & Luxury Goods  |  3.4%
Carter’s, Inc.		17,900		1,460,998
Fossil Group, Inc. (*)		72,200		1,135,706
Steven Madden, Ltd.		58,382		1,766,639
				4,363,343
Trading Companies & Distributors  |  0.1%
DXP Enterprises, Inc. (*)		2,673		74,416
Total Common Stocks (Cost $136,005,202)				126,473,826
Total Investments  |  99.3% (Cost $136,005,202)			$	126,473,826
Cash and Other Assets in Excess of Liabilities  |  0.7%				928,906
Net Assets  |  100.0%			$	127,402,732

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

160  Annual Report

The Lazard Funds, Inc. Notes to Portfolios of Investments
December 31, 2018

(*)	Non-income producing security.
(‡)	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.
(#)	Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2018, these securities amounted to 0.6% of net assets of Lazard Emerging Markets Equity Advantage Portfolio.
(^)	Refer to Note 5 in the Notes to Financial Statements for further details related to holdings of 5% voting securities of portfolio companies.
(»)	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
GDR	—	Global Depositary Receipt
NVDR	—	Non-Voting Depository Receipt
PJSC	—	Public Joint Stock Company
REIT	—	Real Estate Investment Trust

Currency Abbreviations:

AUD	—	Australian Dollar	EUR	—	Euro
CAD	—	Canadian Dollar	GBP	—	British Pound Sterling
CHF	—	Swiss Franc	USD	—	United States Dollar

Counterparty Abbreviations:

BNP	—	BNP Paribas SA	MEL	—	The Bank of New York Mellon Corp.
CAN	—	Canadian Imperial	RBC	—	Royal Bank of Canada
		Bank of Commerce	SCB	—	Standard Chartered Bank
CIT	—	Citibank NA	SSB	—	State Street Bank and Trust Co.
HSB	—	HSBC Bank USA NA

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

Annual Report  161

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

Industry†	Lazard Developing Markets Equity Portfolio			Lazard Emerging Markets Core Equity Portfolio			Lazard Emerging Markets Equity Advantage Portfolio			Lazard Emerging Markets Equity Blend Portfolio
Common & Preferred Stocks
Aerospace & Defense		—	%		—	%		—	%		—	%
Air Freight & Logistics		1.2			—			0.1			1.6
Airlines		—			1.2			1.0			—
Auto Components		—			0.8			0.4			0.9
Automobiles		—			1.3			0.1			0.9
Banks		23.2			20.8			16.0			22.8
Beverages		—			0.8			0.8			0.6
Biotechnology		—			—			0.2			—
Building Products		—			—			0.2			—
Capital Markets		—			—			1.9			—
Chemicals		—			5.1			3.1			1.2
Commercial Services & Suppliers		—			—			—			0.6
Communications Equipment		—			—			—			—
Construction & Engineering		1.5			—			1.0			1.2
Construction Materials		0.9			1.8			1.1			2.2
Consumer Finance		2.2			—			0.4			0.1
Containers & Packaging		—			—			0.2			0.2
Diversified Consumer Services		1.2			1.0			0.4			0.6
Diversified Financial Services		—			1.9			0.8			0.4
Diversified Telecommunication Services		—			2.1			2.5			0.9
Electric Utilities		—			—			0.9			—
Electrical Equipment		3.2			—			—			0.2
Electronic Equipment, Instruments & Components		3.4			2.0			0.9			3.5
Energy Equipment & Services		—			0.5			—			—
Entertainment		1.9			2.4			0.3			3.2
Food & Staples Retailing		—			—			2.2			0.4
Food Products		—			1.0			2.5			0.5
Gas Utilities		1.8			—			1.8			1.4
Health Care Equipment & Supplies		—			—			0.7			0.2
Health Care Providers & Services		2.2			0.7			0.3			0.4
Hotels, Restaurants & Leisure		2.6			—			0.4			0.8
Household Durables		2.0			1.9			0.2			1.7
Household Products		—			—			0.5			0.6
Industrial Conglomerates		—			1.1			1.8			0.8

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

162  Annual Report

Lazard Emerging Markets Equity Portfolio			Lazard Equity Franchise Portfolio			Lazard Global Equity Select Portfolio			Lazard Global Listed Infrastructure Portfolio			Lazard Global Realty Equity Portfolio			Lazard Global Strategic Equity Portfolio
	—	%		—	%		1.6	%		—	%		—	%		3.5	%
	0.4			—			—			—			—			—
	—			—			—			—			—			—
	1.3			—			—			—			—			—
	3.8			—			—			—			—			—
	26.0			—			7.6			—			—			8.2
	1.1			4.2			8.0			—			—			4.7
	—			—			2.3			—			—			2.8
	—			—			0.8			—			—			—
	—			—			5.4			—			—			6.5
	—			—			1.7			—			—			—
	—			5.8			—			—			—			—
	—			1.0			2.6			—			—			—
	—			—			—			4.5			—			—
	3.2			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			4.6			—			—			—			—
	—			—			—			—			—			—
	1.6			—			—			—			—			—
	—			2.6			—			26.8			—			—
	—			—			1.8			—			—			—
	1.8			3.7			1.1			—			—			0.4
	—			—			0.8			—			—			1.2
	2.9			—			1.3			—			—			5.2
	2.1			—			—			—			—			—
	—			—			—			—			—			—
	1.0			—			—			3.1			—			—
	—			2.2			1.5			—			—			4.8
	0.8			13.0			—			—			—			1.4
	—			5.9			4.1			—			—			—
	1.2			—			—			—			—			0.9
	0.7			—			1.5			—			—			—
	1.8			—			1.7			—			—			—

Annual Report  163

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

Industry†	Lazard Developing Markets Equity Portfolio			Lazard Emerging Markets Core Equity Portfolio			Lazard Emerging Markets Equity Advantage Portfolio			Lazard Emerging Markets Equity Blend Portfolio
Insurance		2.2	%		4.7	%		2.5	%		2.4	%
Interactive Media & Services		13.3			7.3			5.3			6.9
Internet & Direct Marketing Retail		1.8			4.0			3.1			1.7
IT Services		0.6			1.1			2.8			3.4
Leisure Products		—			—			—			—
Life Sciences Tools & Services		0.6			0.3			—			—
Machinery		4.6			—			0.6			0.9
Media		—			1.2			1.6			0.7
Metals & Mining		3.7			5.3			4.1			1.9
Multiline Retail		—			—			0.3			—
Multi-Utilities		—			—			—			—
Oil, Gas & Consumable Fuels		7.5			7.2			8.0			7.3
Paper & Forest Products		1.9			1.1			0.2			1.5
Personal Products		—			1.6			0.3			—
Pharmaceuticals		—			—			1.4			1.1
Professional Services		—			—			—			—
Real Estate Management & Development		—			0.4			2.8			0.3
Road & Rail		—			1.1			—			0.7
Semiconductors & Semiconductor Equipment		5.1			8.0			6.1			6.5
Software		0.7			—			—			1.0
Specialty Retail		1.1			—			1.2			1.0
Technology Hardware, Storage & Peripherals		4.2			5.4			5.2			4.1
Textiles, Apparel & Luxury Goods		0.9			1.3			1.4			1.4
Thrifts & Mortgage Finance		—			—			—			0.2
Tobacco		—			—			0.7			0.6
Trading Companies & Distributors		—			0.6			0.4			0.4
Transportation Infrastructure		—			1.2			0.8			0.7
Water Utilities		2.1			—			—			2.0
Wireless Telecommunication Services		—			1.0			1.5			3.6
Subtotal		97.6			99.2			93.0			98.2
Short-Term Investments		0.5			1.2			1.9			1.9
Total Investments		98.1	%		100.4	%		94.9	%		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.

164  Annual Report

Lazard Emerging Markets Equity Portfolio			Lazard Equity Franchise Portfolio			Lazard Global Equity Select Portfolio			Lazard Global Listed Infrastructure Portfolio			Lazard Global Realty Equity Portfolio			Lazard Global Strategic Equity Portfolio
	3.4	%		—	%		7.3	%		—	%		—	%		8.7	%
	1.2			1.1			4.3			—			—			6.7
	—			—			1.5			—			—			3.1
	5.1			1.0			5.6			—			—			7.9
	—			—			1.1			—			—			—
	—			—			4.8			—			—			2.7
	1.5			—			2.2			—			—			1.8
	—			10.2			—			9.3			—			3.2
	2.2			—			—			—			—			1.0
	0.7			2.0			1.2			—			—			0.9
	—			3.0			—			8.4			—			—
	9.1			—			—			4.6			—			2.9
	—			—			—			—			—			—
	0.7			—			3.3			—			—			—
	—			—			6.1			—			—			4.0
	—			8.1			5.3			—			—			3.4
	—			—			1.2			—			—			—
	—			2.1			1.6			9.0			—			1.4
	7.1			4.4			1.0			—			—			—
	—			8.3			2.7			—			—			5.0
	0.6			—			1.1			—			—			—
	4.9			—			—			—			—			—
	—			2.0			—			—			—			1.3
	—			—			0.8			—			—			—
	1.6			—			—			—			—			—
	—			—			0.9			—			—			2.9
	1.1			7.9			—			18.5			—			—
	—			4.4			—			12.0			—			—
	9.0			—			—			—			—			—
	97.9			97.5			95.8			96.2			—			96.5
	2.4			1.0			4.7			2.8			100.0			3.9
	100.3	%		98.5	%		100.5	%		99.0	%		100.0	%		100.4	%

Annual Report  165

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

Industry†	Lazard International Compounders Portfolio			Lazard International Equity Advantage Portfolio			Lazard International Equity Concentrated Portfolio			Lazard International Equity Portfolio
Common & Preferred Stocks
Aerospace & Defense		2.3	%		1.3	%		7.6	%		2.1	%
Air Freight & Logistics		—			—			—			—
Airlines		—			2.2			—			1.4
Auto Components		—			1.5			4.5			0.9
Automobiles		—			2.1			5.1			2.4
Banks		6.8			9.2			10.5			10.3
Beverages		—			0.2			4.0			4.4
Biotechnology		2.2			2.3			—			—
Building Products		5.0			0.4			—			2.8
Capital Markets		1.9			2.2			—			0.9
Chemicals		2.1			3.3			—			3.6
Commercial Services & Suppliers		—			0.1			—			—
Communications Equipment		—			—			—			—
Construction & Engineering		—			2.0			—			1.6
Consumer Finance		—			0.1			—			—
Containers & Packaging		—			0.3			2.7			—
Diversified Consumer Services		—			—			—			—
Diversified Financial Services		—			1.3			—			—
Diversified Telecommunication Services		—			0.1			—			2.9
Electric Utilities		—			3.6			—			1.8
Electrical Equipment		2.1			0.1			—			1.0
Electronic Equipment, Instruments & Components		2.1			0.6			4.0			—
Energy Equipment & Services		—			—			—			—
Equity Real Estate Investment Trusts (REITs)		—			0.8			—			—
Entertainment		2.3			1.3			3.4			3.2
Food & Staples Retailing		2.8			2.2			—			—
Food Products		—			3.7			—			—
Gas Utilities		—			0.5			—			—
Health Care Equipment & Supplies		2.4			0.3			6.3			2.9
Health Care Providers & Services		2.2			0.7			—			0.7
Health Care Technology		—			—			—			—
Hotels, Restaurants & Leisure		2.5			1.4			5.1			2.4
Household Durables		—			0.7			4.9			0.9
Household Products		2.5			—			—			—
Industrial Conglomerates		—			0.9			—			—

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

166  Annual Report

Lazard International Equity Select Portfolio			Lazard International Equity Value Portfolio			Lazard International Small Cap Equity Portfolio			Lazard International Strategic Equity Portfolio			Lazard Managed Equity Volatility Portfolio
	2.5	%		3.5	%		—	%		5.6	%		3.1	%
	—			3.4			—			—			—
	1.2			0.5			—			0.8			1.4
	1.1			—			1.9			—			0.2
	1.9			9.1			—			3.4			—
	9.6			14.1			1.2			8.6			5.0
	3.1			3.8			2.8			6.6			1.8
	0.6			—			—			1.2			1.0
	2.1			—			2.3			2.7			—
	—			3.3			5.4			3.0			3.1
	—			3.7			1.5			—			0.7
	—			—			2.7			—			3.3
	—			—			1.0			—			0.7
	1.3			—			—			—			0.6
	—			—			0.8			1.5			0.3
	—			—			—			—			—
	—			—			—			—			0.4
	—			—			4.2			0.8			0.1
	2.6			—			1.8			—			2.8
	2.0			—			—			1.8			3.9
	1.1			—			0.8			—			0.2
	—			—			7.3			1.5			0.7
	—			—			1.7			—			—
	—			—			—			—			2.7
	2.7			6.0			1.6			6.1			0.4
	—			4.2			2.2			—			3.7
	—			—			—			0.6			2.3
	—			—			—			—			1.5
	3.4			—			0.3			2.7			0.2
	—			—			2.2			—			3.2
	—			—			1.0			—			—
	2.2			14.5			2.6			1.4			3.7
	—			—			2.8			—			—
	—			—			—			—			2.7
	—			—			1.5			—			0.5

Annual Report  167

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

Industry†	Lazard International Compounders Portfolio			Lazard International Equity Advantage Portfolio			Lazard International Equity Concentrated Portfolio			Lazard International Equity Portfolio
Insurance		8.0	%		7.5	%		8.2	%		8.1	%
Interactive Media & Services		2.7			0.1			6.5			—
Internet & Direct Marketing Retail		2.0			—			—			—
IT Services		—			1.4			2.1			1.4
Leisure Products		1.4			0.3			—			0.9
Life Sciences Tools & Services		2.1			0.3			—			—
Machinery		—			3.0			—			2.7
Media		—			0.3			—			1.1
Metals & Mining		—			3.0			3.5			2.0
Multiline Retail		3.0			0.4			—			1.8
Multi-Utilities		—			0.6			—			—
Oil, Gas & Consumable Fuels		—			7.4			8.9			6.5
Paper & Forest Products		—			0.1			—			—
Personal Products		—			4.2			—			3.6
Pharmaceuticals		—			9.2			—			4.2
Professional Services		5.1			1.4			—			4.2
Real Estate Management & Development		—			2.9			—			2.7
Road & Rail		3.0			1.7			—			1.0
Semiconductors & Semiconductor Equipment		4.9			1.5			—			—
Software		5.0			0.9			5.6			3.0
Specialty Retail		3.0			0.8			—			—
Technology Hardware, Storage & Peripherals		—			1.0			2.1			0.7
Textiles, Apparel & Luxury Goods		1.2			2.2			—			—
Thrifts & Mortgage Finance		—			—			—			—
Tobacco		—			1.9			—			—
Trading Companies & Distributors		5.4			1.7			—			3.2
Transportation Infrastructure		—			—			—			—
Water Utilities		—			—			—			—
Wireless Telecommunication Services		—			2.7			4.8			2.0
Subtotal		86.0			101.9			99.8			95.3
Short-Term Investments		—			—			1.5			4.7
Total Investments		86.0	%		101.9	%		101.3	%		100.0	%

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

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

168  Annual Report

Lazard International Equity Select Portfolio			Lazard International Equity Value Portfolio			Lazard International Small Cap Equity Portfolio			Lazard International Strategic Equity Portfolio			Lazard Managed Equity Volatility Portfolio
	10.9	%		4.2	%		—	%		9.7	%		5.6	%
	5.2			—			4.7			1.0			—
	—			—			—			1.3			0.2
	3.2			—			3.3			2.7			4.5
	—			3.0			—			1.0			0.2
	—			—			1.4			—			0.4
	2.7			1.9			7.1			4.1			1.2
	—			—			3.3			2.6			1.8
	2.4			3.5			1.5			2.2			2.0
	1.9			—			—			1.7			0.2
	—			—			—			—			1.8
	6.5			5.1			—			4.2			3.2
	—			—			—			—			—
	2.9			—			—			1.9			1.6
	3.2			2.1			3.9			2.6			7.6
	4.2			—			3.9			5.1			0.4
	1.7			—			9.6			2.3			2.8
	1.1			—			—			—			1.3
	2.0			—			—			—			1.1
	2.9			—			2.2			—			1.6
	0.7			—			1.1			—			3.5
	0.7			—			—			—			0.5
	0.7			—			2.6			—			1.5
	—			—			—			1.2			—
	—			—			—			0.9			1.3
	1.8			—			2.3			2.5			0.8
	—			—			—			—			0.2
	0.7			—			1.0			—			—
	2.2			3.8			—			2.3			1.8
	95.0			89.7			97.5			97.6			97.3
	7.5			9.8			1.5			2.1			4.3
	102.5	%		99.5	%		99.0	%		99.7	%		101.6	%

Annual Report  169

The Lazard Funds, Inc. Statements of Assets and Liabilities

	Lazard				Lazard Emerging
	Developing Markets				Markets Core
December 31, 2018	Equity Portfolio				Equity Portfolio
ASSETS
Investments in securities, at fair value		$	218,190,155			$	211,097,803
Non-controlled affiliated issuers, at fair value (Note 5)			—				—
Cash			106,261				—
Foreign currency, at fair value			234,952				75,110
Receivables for:
Dividends			763,098				427,346
Capital stock sold			1,254,657				1,808,461
Investments sold			3,188,530				760,523
Amount due from Investment Manager (Note 3)			—				—
Deferred offering costs (Note 2(f))			—				2,729
Total assets			223,737,653				214,171,972
LIABILITIES
Due to Investment Manager			—				—
Due to custodian			—				1,633,209
Payables for:
Foreign capital gains taxes			—				—
Management fees			199,317				187,675
Accrued custodian fees			21,753				28,296
Accrued distribution fees			1,585				373
Accrued professional services			32,014				31,619
Capital stock redeemed			608,536				1,971,003
Investments purchased			470,568				3,264
Other accrued expenses and payables			21,244				14,389
Total liabilities			1,355,017				3,869,828
Net assets		$	222,382,636			$	210,302,144
NET ASSETS
Paid in capital		$	355,744,337			$	223,817,236
Distributable earnings (Accumulated loss)			(133,361,701	)			(13,515,092	)
Net assets		$	222,382,636			$	210,302,144
Institutional Shares
Net assets		$	215,119,548			$	207,954,672
Shares of capital stock outstanding*			18,836,550				21,031,193
Net asset value, offering and redemption price per share		$	11.42			$	9.89
Open Shares
Net assets		$	7,263,088			$	1,853,320
Shares of capital stock outstanding*			639,563				187,835
Net asset value, offering and redemption price per share		$	11.36			$	9.87
R6 Shares
Net assets			—			$	494,152
Shares of capital stock outstanding*			—				49,941
Net asset value, offering and redemption price per share			—			$	9.89
Cost of investments in securities		$	224,254,976			$	220,591,736
Cost of non-controlled affiliated issuers		$	—			$	—
Cost of foreign currency		$	236,253			$	74,973

* $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.

170  Annual Report

Lazard
Emerging Markets			Lazard Emerging				Lazard				Lazard				Lazard Global
Equity Advantage			Markets Equity				Emerging Markets				Equity Franchise				Equity Select
Portfolio			Blend Portfolio				Equity Portfolio				Portfolio				Portfolio
	$	3,400,828		$	297,802,479			$	8,670,891,992			$	8,401,141			$	66,478,880
		—			—				168,158,341				—				—
		—			—				—				—				—
		307			54,476				3,727,774				10				1,930
		3,491			815,930				18,174,978				30,001				63,071
		200,357			184,024				17,228,366				12,270				104,405
		1,839			105,117				3,432,766				130,627				—
		24,160			—				—				—				—
		—			—				—				—				—
		3,630,982			298,962,026				8,881,614,217				8,574,049				66,648,286
		—			—				—				10,221				—
		—			—				—				—				—
		—			387,210				37,618,367				—				—
		—			262,520				7,765,178				—				46,758
		11,547			30,842				661,088				6,125				8,842
		99			1,349				222,973				39				166
		33,811			36,386				59,286				22,912				25,067
		—			626,811				23,686,911				—				111,089
		—			22				233,232				60				309,191
		3,293			12,598				430,374				3,803				2,273
		48,750			1,357,738				70,677,409				43,160				503,386
	$	3,582,232		$	297,604,288			$	8,810,936,808			$	8,530,889			$	66,144,900
	$	3,527,102		$	382,058,314			$	9,822,444,349			$	9,625,620			$	63,706,419
		55,130			(84,454,026	)			(1,011,507,541	)			(1,094,731	)			2,438,481
	$	3,582,232		$	297,604,288			$	8,810,936,808			$	8,530,889			$	66,144,900
	$	3,106,646		$	291,403,975			$	7,573,861,013			$	8,341,142			$	65,382,048
		309,610			29,084,201				471,588,782				943,047				5,577,806
	$	10.03		$	10.02			$	16.06			$	8.84			$	11.72
	$	475,586		$	6,200,313			$	1,004,569,253			$	189,747			$	762,852
		47,382			617,871				60,776,573				21,455				65,049
	$	10.04		$	10.03			$	16.53			$	8.84			$	11.73
		—			—			$	232,506,542				—				—
		—			—				14,479,168				—				—
		—			—			$	16.06				—				—
	$	3,276,576		$	324,642,768			$	8,903,535,124			$	9,486,268			$	63,647,665
	$	—		$	—			$	140,962,822			$	—			$	—
	$	306		$	54,313			$	3,717,255			$	10			$	1,930

Annual Report  171

	Lazard
	Global Listed				Lazard
	Infrastructure				Global Realty
December 31, 2018	Portfolio				Equity Portfolio (a)
ASSETS
Investments in securities, at fair value		$	5,295,674,643			$	4,321,682
Foreign currency, at fair value			818,798				—
Receivables for:
Dividends			22,792,366				3,638
Capital stock sold			36,848,249				—
Investments sold			44,086,138				152,961
Amount due from Investment Manager (Note 3)			—				798
Gross unrealized appreciation on forward currency contracts			11,095,514				—
Deferred offering costs (Note 2(f))			—				—
Total assets			5,411,315,708				4,479,079
LIABILITIES
Due to custodian			—				—
Foreign currency due to custodian			—				61,632
Payables for:
Management fees			4,134,490				—
Accrued custodian fees			142,941				6,779
Accrued distribution fees			94,494				231
Accrued professional services			34,898				14,083
Offering costs (Note 2(f))			—				—
Capital stock redeemed			39,375,635				4,387,932
Investments purchased			6,099,035				189
Gross unrealized depreciation on forward currency contracts			10,159,785				—
Other accrued expenses and payables			165,740				8,233
Total liabilities			60,207,018				4,479,079
Net assets		$	5,351,108,690			$	—
NET ASSETS
Paid in capital		$	5,666,269,734			$	—
Distributable earnings (Accumulated loss)			(315,161,044	)			—
Net assets		$	5,351,108,690			$	—
Institutional Shares
Net assets		$	4,924,359,244			$	—
Shares of capital stock outstanding*			364,507,349				—
Net asset value, offering and redemption price per share		$	13.51			$	—
Open Shares
Net assets		$	426,749,446			$	—
Shares of capital stock outstanding*			31,560,099				—
Net asset value, offering and redemption price per share		$	13.52			$	—
R6 Shares
Net assets			—				—
Shares of capital stock outstanding*			—				—
Net asset value, offering and redemption price per share			—				—
Cost of investments in securities		$	5,614,516,953			$	4,321,682
Cost of foreign currency		$	818,602			$	(61,632	)

(a) The Portfolio was liquidated on December 31, 2018.

* $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.

172  Annual Report

							Lazard				Lazard
			Lazard				International				International				Lazard
Lazard			International				Equity				Equity				International
Global Strategic			Compounders				Advantage				Concentrated				Equity
Equity Portfolio			Portfolio				Portfolio				Portfolio				Portfolio
	$	2,647,995		$	128,758			$	2,188,168			$	50,125,965			$	2,436,065,931
		32			—				1,312				5				—
		6,750			—				6,389				122,924				4,484,035
		—			150,000				—				632,290				9,616,000
		—			—				—				489,765				27,726,320
		16,945			12,599				8,828				—				—
		—			—				—				—				—
		—			98,816				—				—				—
		2,671,722			390,173				2,204,697				51,370,949				2,477,892,286
		—			—				13,566				—				—
		—			—				—				—				1,477,369
		—			—				—				24,020				1,656,115
		6,759			—				10,239				7,511				87,064
		28			—				21				89				48,990
		25,385			8,650				29,686				25,073				31,811
		—			98,816				—				—				—
		—			—				—				1,804,162				34,639,389
		—			129,053				—				1,679				3,068,054
		—			—				—				—				—
		2,859			3,949				3,123				4,202				150,263
		35,031			240,468				56,635				1,866,736				41,159,055
	$	2,636,691		$	149,705			$	2,148,062			$	49,504,213			$	2,436,733,231
	$	2,620,519		$	150,000			$	2,412,086			$	57,933,802			$	2,533,006,202
		16,172			(295	)			(264,024	)			(8,429,589	)			(96,272,971	)
	$	2,636,691		$	149,705			$	2,148,062			$	49,504,213			$	2,436,733,231
	$	2,505,299		$	148,705			$	2,051,478			$	49,105,126			$	2,102,734,614
		1,530,838			14,900				235,905				5,888,251				134,128,473
	$	1.64		$	9.98			$	8.70			$	8.34			$	15.68
	$	131,392		$	1,000			$	96,584			$	399,087			$	227,482,526
		80,778			100				11,106				47,769				14,336,300
	$	1.63		$	10.00			$	8.70			$	8.35			$	15.87
		—			—				—				—			$	106,516,091
		—			—				—				—				6,803,382
		—			—				—				—			$	15.66
	$	2,608,042		$	129,053			$	2,416,129			$	55,871,740			$	2,485,541,819
	$	32		$	—			$	1,306			$	5			$	(1,475,626	)

Annual Report  173

	Lazard				Lazard
	International Equity				International Equity
December 31, 2018	Select Portfolio				Value Portfolio
ASSETS
Investments in securities, at fair value		$	77,976,472			$	22,876,169
Foreign currency, at fair value			85				—
Receivables for:
Dividends			152,452				24,987
Capital stock sold			1,690,344				—
Investments sold			6,552				140,615
Amount due from Investment Manager (Note 3)			—				8,472
Deferred offering costs (Note 2(f))			—				91,803
Total assets			79,825,905				23,142,046
LIABILITIES
Due to custodian			—				—
Payables for:
Foreign capital gains taxes			—				—
Management fees			43,607				—
Accrued custodian fees			10,380				9,852
Accrued distribution fees			325				10
Accrued professional services			30,536				21,573
Offering costs (Note 2(f))			—				16,902
Capital stock redeemed			641,965				—
Investments purchased			3,008,808				107,172
Other accrued expenses and payables			5,966				2,630
Total liabilities			3,741,587				158,139
Net assets		$	76,084,318			$	22,983,907
NET ASSETS
Paid in capital		$	82,665,545			$	25,139,968
Distributable earnings (Accumulated loss)			(6,581,227	)			(2,156,061	)
Net assets		$	76,084,318			$	22,983,907
Institutional Shares
Net assets		$	74,582,445			$	22,945,443
Shares of capital stock outstanding*			8,172,571				2,509,997
Net asset value, offering and redemption price per share		$	9.13			$	9.14
Open Shares
Net assets		$	1,501,873			$	38,464
Shares of capital stock outstanding*			163,761				4,211
Net asset value, offering and redemption price per share		$	9.17			$	9.13
R6 Shares
Net assets			—				—
Shares of capital stock outstanding*			—				—
Net asset value, offering and redemption price per share			—				—
Cost of investments in securities		$	83,679,382			$	24,338,897
Cost of foreign currency		$	84			$	—

* $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.

174  Annual Report

Lazard				Lazard								Lazard
International				International				Lazard				US Equity				Lazard
Small Cap				Strategic				Managed Equity				Concentrated				US Equity Select
Equity Portfolio				Equity Portfolio				Volatility Portfolio				Portfolio				Portfolio
	$	54,858,661			$	5,545,075,604			$	21,228,978			$	1,092,113,499			$	71,886,110
		27,994				488,086				5,956				—				—
		130,912				9,322,476				35,353				978,078				47,824
		453,816				45,328,263				9				4,585,097				349,275
		216,378				61,582				—				23,765,156				—
		—				—				11,925				—				—
		—				—				—				—				—
		55,687,761				5,600,276,011				21,282,221				1,121,441,830				72,283,209
		—				—				—				3,839,429				—
		—				41,848				—				—				—
		35,964				3,678,410				—				772,499				22,225
		12,258				182,364				11,964				30,322				8,922
		4,373				183,958				60				11,550				195
		33,315				40,730				27,571				25,107				22,543
		—				—				—				—				—
		38,710				27,825,446				—				22,966,711				657,364
		170,518				7,847,725				346,060				—				—
		6,424				200,048				4,499				63,966				5,001
		301,562				40,000,529				390,154				27,709,584				716,250
	$	55,386,199			$	5,560,275,482			$	20,892,067			$	1,093,732,246			$	71,566,959
	$	60,911,741			$	5,583,165,303			$	22,318,041			$	1,136,678,042			$	68,606,503
		(5,525,542	)			(22,889,821	)			(1,425,974	)			(42,945,796	)			2,960,456
	$	55,386,199			$	5,560,275,482			$	20,892,067			$	1,093,732,246			$	71,566,959
	$	35,121,363			$	4,630,333,866			$	20,708,603			$	1,040,850,895			$	60,629,270
		3,529,666				359,227,186				1,963,386				80,772,130				5,927,072
	$	9.95			$	12.89			$	10.55			$	12.89			$	10.23
	$	20,264,836			$	832,547,691			$	183,464			$	50,981,044			$	881,360
		2,031,598				64,009,753				17,404				3,925,727				85,762
	$	9.97			$	13.01			$	10.54			$	12.99			$	10.28
		—			$	97,393,925				—			$	1,900,307			$	10,056,329
		—				7,549,275				—				147,098				982,747
		—			$	12.90				—			$	12.92			$	10.23
	$	61,310,326			$	5,556,993,829			$	22,304,736			$	1,117,608,922			$	68,635,203
	$	27,994			$	487,889			$	5,931			$	—			$	—

Annual Report  175

	Lazard			Lazard
	US Realty Equity			US Small-Mid Cap
December 31, 2018	Portfolio			Equity Portfolio
ASSETS
Investments in securities, at fair value		$	59,302,882		$	126,473,826
Cash			3,309			1,234,602
Receivables for:
Dividends			319,514			147,057
Capital stock sold			105,580			27,490
Investments sold			2,215,627			47,344
Total assets			61,946,912			127,930,319
LIABILITIES
Payables for:
Management fees			40,671			88,847
Accrued custodian fees			5,895			10,125
Accrued distribution fees			10,070			3,067
Accrued professional services			34,346			22,747
Capital stock redeemed			304,025			394,604
Investments purchased			690,995			—
Line of credit outstanding			1,190,000			—
Other accrued expenses and payables			9,396			8,197
Total liabilities			2,285,398			527,587
Net assets		$	59,661,514		$	127,402,732
NET ASSETS
Paid in capital		$	59,223,251		$	139,805,913
Distributable earnings (Accumulated loss)			438,263			(12,403,181	)
Net assets		$	59,661,514		$	127,402,732
Institutional Shares
Net assets		$	15,715,185		$	113,677,104
Shares of capital stock outstanding*			941,829			10,493,688
Net asset value, offering and redemption price per share		$	16.69		$	10.83
Open Shares
Net assets		$	43,946,329		$	13,725,628
Shares of capital stock outstanding*			2,621,072			1,368,812
Net asset value, offering and redemption price per share		$	16.77		$	10.03
Cost of investments in securities		$	59,951,937		$	136,005,202

* $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.

176  Annual Report

[This page intentionally left blank]

Annual Report  177

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2018		Lazard Developing Markets Equity Portfolio				Lazard Emerging Markets Core Equity Portfolio
Investment Income (Loss)
Income
Dividends
Unaffiliated issuers			$	5,408,751			$	6,894,928
Non-controlled affiliated issuers (Note 5)				—				—
Total investment income*				5,408,751				6,894,928
Expenses
Management fees (Note 3)				2,747,387				2,640,091
Custodian fees				156,285				183,414
Distribution fees (Open Shares)				27,992				5,080
Administration fees				44,167				45,076
Shareholders’ reports				31,413				29,815
Professional services				60,705				80,603
Shareholders’ services				33,598				35,706
Directors’ fees and expenses				14,865				14,106
Registration fees				45,580				81,238
Amortization of offering costs (Note 2(f))				—				6,077
Organization expenses (Note 2(f))				—				3,888
Other^				16,641				15,603
Total gross expenses				3,178,633				3,140,697
Management fees waived and expenses reimbursed				—				(21,845	)
Shareholders’ services fees waived				—				(6,127	)
Total net expenses				3,178,633				3,112,725
Net investment income (loss)				2,230,118				3,782,203
Net Realized and Unrealized Gain (Loss) on Investments, Non-Controlled Affiliated Issuers and Foreign Currency Transactions
Net realized gain (loss) on:
Investments**				11,224,424				8,151,668
Non-controlled affiliated issuers				—				—
Foreign currency transactions				(161,620	)			(27,595	)
Total net realized gain (loss) on investments, non-controlled affiliated issuers and foreign currency transactions				11,062,804				8,124,073
Net change in unrealized appreciation (depreciation) on:
Investments†				(76,298,411	)			(67,553,910	)
Non-controlled affiliated issuers				—				—
Foreign currency translations				(18,527	)			11,307
Total net change in unrealized appreciation (depreciation) on investments, non-controlled affiliated issuers and foreign currency translations				(76,316,938	)			(67,542,603	)
Net realized and unrealized gain (loss) on investments, non-controlled affiliated issuers and foreign currency transactions				(65,254,134	)			(59,418,530	)
Net increase (decrease) in net assets resulting from operations			$	(63,024,016	)		$	(55,636,327	)
*	Net of foreign withholding taxes of		$	577,349			$	795,272
**	Net of foreign capital gains taxes of		$	4,350			$	—
†	Includes net change in unrealized appreciation (depreciation) of foreign capital gains taxes of		$	207,678			$	185,721
^	Includes interest on line of credit of		$	1,419			$	3,988

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

178  Annual Report

Lazard Emerging Markets Equity Advantage Portfolio			Lazard Emerging Markets Equity Blend Portfolio			Lazard Emerging Markets Equity Portfolio			Lazard Equity Franchise Portfolio			Lazard Global Equity Select Portfolio
$	116,111		$	9,201,223		$	355,366,834		$	234,327		$	1,183,871
	—			—			11,413,295			—			—
	116,111			9,201,223			366,780,129			234,327			1,183,871
	36,531			3,624,355			114,914,746			64,826			540,293
	76,542			219,027			4,693,856			35,380			55,894
	1,198			21,490			3,138,283			447			1,986
	10,362			55,129			1,017,143			10,838			18,267
	3,122			81,000			753,059			3,216			3,724
	61,312			72,036			491,811			38,647			42,428
	23,361			34,122			475,422			23,723			24,144
	5,156			18,302			439,075			5,254			7,243
	33,468			46,225			174,145			34,219			44,609
	—			—			—			71,087			—
	—			—			—			—			—
	1,374			15,179			321,682			1,554			6,761
	252,426			4,186,865			126,419,222			289,191			745,349
	(203,673	)		(215	)		(440	)		(205,573	)		(33,560	)
	—			—			—			(6,104	)		—
	48,753			4,186,650			126,418,782			77,514			711,789
	67,358			5,014,573			240,361,347			156,813			472,082
	170,032			8,116,950			106,137,980			657,224			1,139,416
	—			—			(17,242,805	)		—			—
	(1,447	)		(301,165	)		(5,521,964	)		(1,329	)		(10,306	)
	168,585			7,815,785			83,373,211			655,895			1,129,110
	(998,827	)		(95,666,320	)		(2,637,937,486	)		(1,249,755	)		(6,721,193	)
	—			—			53,903,513			—			—
	—			(1,509	)		(3,271	)		115			64
	(998,827	)		(95,667,829	)		(2,584,037,244	)		(1,249,640	)		(6,721,129	)
	(830,242	)		(87,852,044	)		(2,500,664,033	)		(593,745	)		(5,592,019	)
$	(762,884	)	$	(82,837,471	)	$	(2,260,302,686	)	$	(436,932	)	$	(5,119,937	)
$	16,304		$	957,577		$	44,324,042		$	15,363		$	60,996
$	—		$	211,336		$	7,570,595		$	—		$	—
$	—		$	(128,827	)	$	(36,371,907	)	$	—		$	—
$	24		$	—		$	4,198		$	49		$	—

Annual Report  179

For the Year Ended December 31, 2018		Lazard Global Listed Infrastructure Portfolio				Lazard Global Realty Equity Portfolio (a)
Investment Income (Loss)
Income
Dividends*			$	190,268,087			$	157,097
Expenses
Management fees (Note 3)				47,634,471				40,526
Custodian fees				835,867				43,538
Distribution fees (Open Shares)				1,243,199				3,153
Administration fees				518,242				10,439
Shareholders’ reports				241,566				7,201
Professional services				245,542				39,186
Shareholders’ services				174,058				23,066
Directors’ fees and expenses				189,756				5,176
Registration fees				146,288				36,960
Organization expenses (Note 2(f))				—				—
Other^				145,380				1,411
Total gross expenses				51,374,369				210,656
Management fees waived and expenses reimbursed				—				(158,931	)
Total net expenses				51,374,369				51,725
Net investment income (loss)				138,893,718				105,372
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions and Forward Currency Contracts
Net realized gain (loss) on:
Investments				244,077,217				(298,958	)
Foreign currency transactions				(3,274,134	)			(2,733	)
Forward currency contracts				233,725,528				—
Total net realized gain (loss) on investments, foreign currency transactions and forward currency contracts				474,528,611				(301,691	)
Net change in unrealized appreciation (depreciation) on:
Investments†				(892,391,077	)			(413,289	)
Foreign currency translations				354,019				779
Forward currency contracts				55,621,091				—
Total net change in unrealized appreciation (depreciation) on investments, foreign currency translations and forward currency contracts				(836,415,967	)			(412,510	)
Net realized and unrealized gain (loss) on investments, foreign currency transactions and forward currency contracts				(361,887,356	)			(714,201	)
Net increase (decrease) in net assets resulting from operations			$	(222,993,638	)		$	(608,829	)
*	Net of foreign withholding taxes of		$	18,276,953			$	4,902
†	Includes net change in unrealized appreciation  (depreciation) of foreign capital gains taxes of		$	—			$	312
^	Includes interest on line of credit of		$	6,037			$	26

(a) The Portfolio was liquidated on December 31, 2018.

(b) From the Portfolio’s commencement of operations on December 31, 2018.

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

180  Annual Report

Lazard Global Strategic Equity Portfolio			Lazard International Compounders Portfolio (b)			Lazard International Equity Advantage Portfolio			Lazard International Equity Concentrated Portfolio			Lazard International Equity Portfolio
$	47,925		$	—		$	80,510		$	1,745,155		$	89,157,582
	23,255			—			16,421			606,717			24,456,354
	45,326			—			63,162			53,132			593,335
	369			—			278			749			661,503
	10,188			—			10,140			18,744			357,760
	4,762			—			3,137			6,135			280,076
	45,849			8,650			47,248			48,157			195,119
	22,960			—			22,884			23,439			105,656
	5,128			—			5,091			7,528			127,643
	38,693			—			33,465			43,784			106,674
	—			3,949			—			—			—
	1,342			—			1,327			7,032			98,066
	197,872			12,599			203,153			815,417			26,982,186
	(166,874	)		(12,599	)		(180,052	)		(100,378	)		(15,452	)
	30,998			—			23,101			715,039			26,966,734
	16,927			—			57,409			1,030,116			62,190,848
	108,803			—			76,522			(536,821	)		132,634,722
	130			—			(137	)		(2,811	)		(414,179	)
	—			—			—			—			—
	108,933			—			76,385			(539,632	)		132,220,543
	(397,182	)		(295	)		(562,061	)		(12,702,091	)		(625,039,822	)
	(650	)		—			(96	)		71			(37,158	)
	—			—			—			—			—
	(397,832	)		(295	)		(562,157	)		(12,702,020	)		(625,076,980	)
	(288,899	)		(295	)		(485,772	)		(13,241,652	)		(492,856,437	)
$	(271,972	)	$	(295	)	$	(428,363	)	$	(12,211,536	)	$	(430,665,589	)
$	3,570		$	—		$	9,183		$	190,751		$	9,444,000
$	—		$	—		$	—		$	—		$	—
$	14		$	—		$	20		$	104		$	2,258

Annual Report  181

For the Year Ended December 31, 2018		Lazard International Equity Select Portfolio				Lazard International Equity Value Portfolio (c)
Investment Income (Loss)
Income
Dividends*			$	2,156,165			$	67,063
Expenses
Management fees (Note 3)				582,470				32,058
Custodian fees				77,074				9,852
Distribution fees (Open Shares)				5,322				23
Administration fees				19,532				2,948
Shareholders’ reports				12,341				484
Professional services				55,946				24,388
Shareholders’ services				25,447				1,140
Directors’ fees and expenses				7,565				—
Registration fees				42,008				651
Amortization of offering costs (Note 2(f))				—				12,885
Organization expenses (Note 2(f))				—				3,949
Other^				7,057				374
Total gross expenses				834,762				88,752
Management fees waived and expenses reimbursed				(12,542	)			(50,649	)
Total net expenses				822,220				38,103
Net investment income (loss)				1,333,945				28,960
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Investments**				371,516				(672,351	)
Foreign currency transactions				(33,118	)			(24,139	)
Total net realized gain (loss) on investments and foreign currency transactions				338,398				(696,490	)
Net change in unrealized appreciation (depreciation) on:
Investments†				(14,661,814	)			(1,462,728	)
Foreign currency translations				(3,676	)			202
Total net change in unrealized appreciation (depreciation) on investments and foreign currency translations				(14,665,490	)			(1,462,526	)
Net realized and unrealized gain (loss) on investments and foreign currency transactions				(14,327,092	)			(2,159,016	)
Net increase (decrease) in net assets resulting from operations			$	(12,993,147	)		$	(2,130,056	)
*	Net of foreign withholding taxes of		$	235,428			$	2,697
**	Net of foreign capital gains taxes of		$	—			$	—
†	Includes net change in unrealized appreciation (depreciation) of foreign capital gains taxes of		$	—			$	—
^	Includes interest on line of credit of		$	27			$	—

(c) From the Portfolio’s commencement of operations on October 31, 2018.

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

182  Annual Report

Lazard International Small Cap Equity Portfolio			Lazard International Strategic Equity Portfolio			Lazard Managed Equity Volatility Portfolio			Lazard US Equity Concentrated Portfolio			Lazard US Equity Select Portfolio
$	1,573,715		$	146,020,807		$	459,781		$	28,882,749		$	1,545,012
	563,046			50,780,330			114,695			10,728,742			562,996
	73,177			1,191,878			82,300			185,871			57,548
	80,630			2,643,299			782			175,885			2,486
	19,209			639,481			12,214			191,092			23,256
	9,550			371,154			3,226			69,062			11,545
	71,557			376,065			42,854			85,065			44,981
	28,804			176,948			24,207			64,159			36,709
	7,800			251,998			5,508			60,680			7,977
	35,460			89,611			35,755			75,671			38,717
	—			—			—			—			—
	—			—			—			—			—
	7,606			186,392			5,478			61,532			7,952
	896,839			56,707,156			327,019			11,697,759			794,167
	—			(19,420	)		(182,636	)		(11,740	)		(164,862	)
	896,839			56,687,736			144,383			11,686,019			629,305
	676,876			89,333,071			315,398			17,196,730			915,707
	7,583,637			558,807,295			(318,875	)		74,632,752			7,992,281
	(23,554	)		(3,053,109	)		24,266			—			—
	7,560,083			555,754,186			(294,609	)		74,632,752			7,992,281
	(27,321,365	)		(1,299,771,167	)		(1,538,414	)		(172,165,758	)		(10,904,671	)
	(2,193	)		115,729			(249	)		—			—
	(27,323,558	)		(1,299,655,438	)		(1,538,663	)		(172,165,758	)		(10,904,671	)
	(19,763,475	)		(743,901,252	)		(1,833,272	)		(97,533,006	)		(2,912,390	)
$	(19,086,599	)	$	(654,568,181	)	$	(1,517,874	)	$	(80,336,276	)	$	(1,996,683	)
$	140,797		$	14,123,082		$	29,696		$	—		$	1,031
$	93		$	—		$	—		$	—		$	—
$	—		$	1,408,679		$	—		$	—		$	—
$	499		$	—		$	—		$	14,081		$	99

Annual Report  183

For the Year Ended December 31, 2018	Lazard US Realty Equity Portfolio				Lazard US Small-Mid Cap Equity Portfolio
Investment Income (Loss)
Income
Dividends		$	1,539,647			$	2,294,402
Expenses
Management fees (Note 3)			452,237				1,401,317
Custodian fees			32,927				65,311
Distribution fees (Open Shares)			111,717				50,667
Administration fees			17,362				33,180
Shareholders’ reports			14,482				11,772
Professional services			46,759				47,146
Shareholders’ services			27,322				27,881
Directors’ fees and expenses			7,126				11,947
Registration fees			34,321				36,931
Other^			3,776				10,327
Total gross expenses			748,029				1,696,479
Management fees waived			(13,590	)			—
Total net expenses			734,439				1,696,479
Net investment income (loss)			805,208				597,923
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments			2,480,557				15,587,339
Net change in unrealized appreciation (depreciation) on investments			(9,938,039	)*			(36,201,275	)
Net realized and unrealized gain (loss) on investments			(7,457,482	)			(20,613,936	)
Net increase (decrease) in net assets resulting from operations		$	(6,652,274	)		$	(20,016,013	)
^ Includes interest on line of credit of		$	648			$	255

* Includes net unrealized gain of $1,004,535 from acquisition of US Realty Income Portfolio, Refer to Note 11 in the Notes to Financial Statements.

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

184  Annual Report

[This page intentionally left blank]

Annual Report   185

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

	Lazard Developing Markets Equity Portfolio
	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	2,230,118		$	540,016
Net realized gain (loss) on investments and foreign currency transactions		11,062,804			25,214,996
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		(76,316,938	)		54,811,816
Net increase (decrease) in net assets resulting from operations		(63,024,016	)		80,566,828
Distributions to shareholders (Note 2(e))
Net investment income and net realized gains
Institutional Shares		(1,769,297	)		(545,028	)
Open Shares		(72,262	)		—
R6 Shares		—			—
Return of capital
Institutional Shares		—			—
Open Shares		—			—
Net decrease in net assets resulting from distributions		(1,841,559	)		(545,028	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		109,622,584			78,511,154
Open Shares		4,292,325			5,394,446
R6 Shares		—			—
Net proceeds from reinvestment of distributions
Institutional Shares		1,162,422			415,178
Open Shares		69,269			—
R6 Shares		—			—
Cost of shares redeemed
Institutional Shares		(102,082,155	)		(76,215,062	)
Open Shares		(7,115,548	)		(3,135,641	)
R6 Shares		—			—
Net increase (decrease) in net assets from capital stock transactions		5,948,897			4,970,075
Total increase (decrease) in net assets		(58,916,678	)		84,991,875
Net assets at beginning of period		281,299,314			196,307,439
Net assets at end of period	$	222,382,636		$	281,299,314

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

186  Annual Report

Lazard Emerging Markets Core Equity Portfolio						Lazard Emerging Markets Equity Advantage Portfolio
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018			Year Ended December 31, 2017
$	3,782,203		$	1,663,930		$	67,358		$	42,959
	8,124,073			874,343			168,585			259,029
	(67,542,603	)		52,693,224			(998,827	)		1,003,926
	(55,636,327	)		55,231,497			(762,884	)		1,305,914
	(3,760,098	)		(1,586,481	)		(69,604	)		(45,503	)
	(23,933	)		(6,719	)		(9,266	)		(2,873	)
	(6,411	)		—			—			—
	—			—			(4,975	)		(2,064	)
	—			—			(662	)		(130	)
	(3,790,442	)		(1,593,200	)		(84,507	)		(50,570	)
	139,344,970			85,403,283			682,689			74,003
	1,474,772			868,346			410,412			190,542
	620,586			—			—			—
	3,136,183			1,345,985			74,579			47,567
	23,781			6,640			9,928			3,003
	6,411			—			—			—
	(105,969,725	)		(32,647,462	)		(1,100,816	)		(20,514	)
	(1,017,541	)		(169,401	)		(194,160	)		(18,223	)
	(60,674	)		—			—			—
	37,558,763			54,807,391			(117,368	)		276,378
	(21,868,006	)		108,445,688			(964,759	)		1,531,722
	232,170,150			123,724,462			4,546,991			3,015,269
$	210,302,144		$	232,170,150		$	3,582,232		$	4,546,991

Annual Report  187

	Lazard Developing Markets Equity Portfolio
	Year Ended December 31, 2018			Year Ended December 31, 2017
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		18,562,591			18,387,759
Shares sold		8,208,714			6,432,207
Shares issued to shareholders from reinvestment of distributions		92,256			29,197
Shares redeemed		(8,027,011	)		(6,286,572	)
Net increase (decrease)		273,959			174,832
Shares outstanding at end of period		18,836,550			18,562,591
Open Shares
Shares outstanding at beginning of period		869,884			707,429
Shares sold		308,910			420,603
Shares issued to shareholders from reinvestment of distributions		5,519			—
Shares redeemed		(544,750	)		(258,148	)
Net increase (decrease)		(230,321	)		162,455
Shares outstanding at end of period		639,563			869,884
R6 Shares†
Shares outstanding at beginning of period		—			—
Shares sold		—			—
Shares issued to shareholders from reinvestment of distributions		—			—
Shares redeemed		—			—
Net increase (decrease)		—			—
Shares outstanding at end of period		—			—

† The inception date for the Emerging Markets Core Equity Portfolio R6 Shares was April 6, 2018.

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

188  Annual Report

Lazard Emerging Markets Core Equity Portfolio						Lazard Emerging Markets Equity Advantage Portfolio
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018			Year Ended December 31, 2017
	18,723,561			13,928,987			341,687			332,573
	11,637,703			7,668,413			61,001			7,161
	323,559			111,106			7,564			3,944
	(9,653,630	)		(2,984,945	)		(100,642	)		(1,991	)
	2,307,632			4,794,574			(32,077	)		9,114
	21,031,193			18,723,561			309,610			341,687
	148,907			82,765			29,020			13,749
	129,653			81,829			33,843			16,642
	2,458			550			1,007			249
	(93,183	)		(16,237	)		(16,488	)		(1,620	)
	38,928			66,142			18,362			15,271
	187,835			148,907			47,382			29,020
	—			—			—			—
	54,318			—			—			—
	661			—			—			—
	(5,038	)		—			—			—
	49,941			—			—			—
	49,941			—			—			—

Annual Report  189

	Lazard Emerging Markets Equity Blend Portfolio
	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	5,014,573		$	3,122,251
Net realized gain (loss) on investments, non-controlled affiliated issuers and foreign currency transactions		7,815,785			41,961,099
Net change in unrealized appreciation (depreciation) on investments, non-controlled affiliated issuers and foreign currency translations		(95,667,829	)		59,343,281
Net increase (decrease) in net assets resulting from operations		(82,837,471	)		104,426,631
Distributions to shareholders (Note 2(e))
Institutional Shares		(5,376,473	)		(3,582,638	)
Open Shares		(90,707	)		(54,048	)
R6 Shares		—			—
Net decrease in net assets resulting from distributions		(5,467,180	)		(3,636,686	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		61,509,551			52,451,495
Open Shares		2,180,238			2,400,025
R6 Shares		—			—
Net proceeds from reinvestment of distributions
Institutional Shares		5,295,445			3,521,619
Open Shares		89,138			52,594
R6 Shares		—			—
Cost of shares redeemed
Institutional Shares		(74,641,893	)		(51,346,472	)
Open Shares		(3,743,056	)		(1,926,477	)
R6 Shares		—			—
Net increase (decrease) in net assets from capital stock transactions		(9,310,577	)		5,152,784
Total increase (decrease) in net assets		(97,615,228	)		105,942,729
Net assets at beginning of period		395,219,516			289,276,787
Net assets at end of period	$	297,604,288		$	395,219,516

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

190  Annual Report

Lazard Emerging Markets Equity Portfolio						Lazard Equity Franchise Portfolio
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018			Year Ended December 31, 2017 (a)
$	240,361,347		$	232,149,086		$	156,813		$	16,773
	83,373,211			313,691,860			655,895			42,187
	(2,584,037,244	)		2,560,467,147			(1,249,640	)		164,664
	(2,260,302,686	)		3,106,308,093			(436,932	)		223,624
	(161,807,179	)		(226,996,334	)		(840,278	)		(23,920	)
	(18,476,071	)		(25,915,499	)		(17,593	)		(394	)
	(5,115,396	)		(7,709,553	)		—			—
	(185,398,646	)		(260,621,386	)		(857,871	)		(24,314	)
	1,966,180,706			2,397,757,706			3,799,029			5,344,107
	306,879,204			235,224,321			133,054			108,930
	31,823,654			206,333,563			—			—
	151,836,697			209,533,744			840,278			23,919
	18,130,779			25,363,644			17,593			394
	3,561,076			5,546,775			—			—
	(3,712,443,436	)		(3,081,652,165	)		(598,862	)		(147	)
	(575,821,409	)		(357,782,554	)		(41,913	)		—
	(107,150,726	)		(109,573,255	)		—			—
	(1,917,003,455	)		(469,248,221	)		4,149,179			5,477,203
	(4,362,704,787	)		2,376,438,486			2,854,376			5,676,513
	13,173,641,595			10,797,203,109			5,676,513			—
$	8,810,936,808		$	13,173,641,595		$	8,530,889		$	5,676,513

Annual Report  191

	Lazard Emerging Markets Equity Blend Portfolio
	Year Ended December 31, 2018			Year Ended December 31, 2017
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		29,825,093			29,418,600
Shares sold		5,068,945			4,610,925
Shares issued to shareholders from reinvestment of distributions		536,388			277,075
Shares redeemed		(6,346,225	)		(4,481,507	)
Net increase (decrease)		(740,892	)		406,493
Shares outstanding at end of period		29,084,201			29,825,093
Open Shares
Shares outstanding at beginning of period		751,456			707,428
Shares sold		174,662			207,312
Shares issued to shareholders from reinvestment of distributions		9,005			4,131
Shares redeemed		(317,252	)		(167,415	)
Net increase (decrease)		(133,585	)		44,028
Shares outstanding at end of period		617,871			751,456
R6 Shares
Shares outstanding at beginning of period		—			—
Shares sold		—			—
Shares issued to shareholders from reinvestment of distributions		—			—
Shares redeemed		—			—
Net increase (decrease)		—			—
Shares outstanding at end of period		—			—

(a) The Portfolio commenced operations on September 29, 2017.

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

192  Annual Report

Lazard Emerging Markets Equity Portfolio						Lazard Equity Franchise Portfolio
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018			Year Ended December 31, 2017 (a)
	563,580,657			583,417,967			536,277			—
	104,450,860			135,632,859			366,709			534,004
	9,444,619			10,790,481			96,662			2,287
	(205,887,354	)		(166,260,650	)		(56,601	)		(14	)
	(91,991,875	)		(19,837,310	)		406,770			536,277
	471,588,782			563,580,657			943,047			536,277
	73,583,131			78,456,674			10,687			—
	16,934,111			12,723,698			12,698			10,650
	1,095,146			1,272,648			2,021			37
	(30,835,815	)		(18,869,889	)		(3,951	)		—
	(12,806,558	)		(4,873,543	)		10,768			10,687
	60,776,573			73,583,131			21,455			10,687
	18,608,156			12,405,126			—			—
	1,671,090			11,657,944			—			—
	221,226			285,927			—			—
	(6,021,304	)		(5,740,841	)		—			—
	(4,128,988	)		6,203,030			—			—
	14,479,168			18,608,156			—			—

Annual Report  193

	Lazard Global Equity Select Portfolio
	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	472,082			$	258,710
Net realized gain (loss) on investments, foreign currency transactions and forward currency contracts		1,129,110				2,537,185
Net change in unrealized appreciation (depreciation) on investments, foreign currency translations and forward currency contracts		(6,721,129	)			7,975,828
Net increase (decrease) in net assets resulting from operations		(5,119,937	)			10,771,723
Distributions to shareholders (Note 2(e))
Net investment income and net realized gains
Institutional Shares		(2,021,764	)			(2,006,775	)
Open Shares		(21,670	)			(24,026	)
Return of capital
Institutional Shares		(55,115	)			—
Open Shares		(591	)			—
Net decrease in net assets resulting from distributions		(2,099,140	)			(2,030,801	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		27,026,953				26,989,184
Open Shares		183,864				76,128
Net proceeds from reinvestment of distributions
Institutional Shares		2,076,864				2,006,754
Open Shares		22,261				24,026
Cost of shares redeemed
Institutional Shares		(14,792,583	)			(10,607,033	)
Open Shares		(65,826	)			(29,426	)
Net increase (decrease) in net assets from capital stock transactions		14,451,533				18,459,633
Total increase (decrease) in net assets		7,232,456				27,200,555
Net assets at beginning of period		58,912,444				31,711,889
Net assets at end of period	$	66,144,900			$	58,912,444
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		4,464,645				2,962,172
Shares sold		2,056,703				2,230,573
Shares issued to shareholders from reinvestment of distributions		179,116				154,485
Shares redeemed		(1,122,658	)			(882,585	)
Net increase (decrease)		1,113,161				1,502,473
Shares outstanding at end of period		5,577,806				4,464,645
Open Shares
Shares outstanding at beginning of period		54,514				48,903
Shares sold		13,747				6,158
Shares issued to shareholders from reinvestment of distributions		1,916				1,848
Shares redeemed		(5,128	)			(2,395	)
Net increase (decrease)		10,535				5,611
Shares outstanding at end of period		65,049				54,514

(b) The Portfolio was liquidated on December 31, 2018.

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

194   Annual Report

Lazard Global Listed Infrastructure Portfolio						Lazard Global Realty Equity Portfolio
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018 (b)			Year Ended December 31, 2017
$	138,893,718		$	113,031,895		$	105,372		$	96,143
	474,528,611			197,470,588			(301,691	)		199,586
	(836,415,967	)		467,074,965			(412,510	)		354,379
	(222,993,638	)		777,577,448			(608,829	)		650,108
	(630,234,998	)		(307,407,250	)		(75,795	)		(167,608	)
	(56,258,605	)		(43,380,367	)		(26,309	)		(56,301	)
	—			—			—			—
	—			—			—			—
	(686,493,603	)		(350,787,617	)		(102,104	)		(223,909	)
	2,344,513,648			2,047,406,028			—			1,000,001
	148,282,804			442,199,716			21,068			137,466
	504,145,256			263,569,592			75,795			167,608
	55,689,132			42,974,115			24,420			52,265
	(1,871,789,545	)		(834,047,015	)		(3,375,986	)		(76,128	)
	(331,531,149	)		(371,380,188	)		(1,227,839	)		(516,531	)
	849,310,146			1,590,722,248			(4,482,542	)		764,681
	(60,177,095	)		2,017,512,079			(5,193,475	)		1,190,880
	5,411,285,785			3,393,773,706			5,193,475			4,002,595
$	5,351,108,690		$	5,411,285,785		$	—		$	5,193,475
	298,732,092			206,858,471			246,774			172,535
	154,668,026			126,908,791			—			68,213
	35,491,935			16,317,320			5,132			10,967
	(124,384,704	)		(51,352,490	)		(251,906	)		(4,941	)
	65,775,257			91,873,621			(246,774	)		74,239
	364,507,349			298,732,092			—			246,774
	39,560,407			32,579,713			87,901			110,297
	9,614,733			27,109,459			1,413			9,223
	3,911,178			2,652,932			1,658			3,425
	(21,526,219	)		(22,781,697	)		(90,972	)		(35,044	)
	(8,000,308	)		6,980,694			(87,901	)		(22,396	)
	31,560,099			39,560,407			—			87,901

Annual Report  195

	Lazard Global Strategic Equity Portfolio
	Year Ended December 31, 2018				Year Ended December 31, 2017
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	16,927			$	113,832
Net realized gain (loss) on investments and foreign currency transactions			108,933				3,246,916
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations			(397,832	)			(241,599	)
Net increase (decrease) in net assets resulting from operations			(271,972	)			3,119,149
Distributions to shareholders (Note 2(e))
Institutional Shares			(620,429	)			(2,330,701	)
Open Shares			(33,292	)			(117,419	)
Net decrease in net assets resulting from distributions			(653,721	)			(2,448,120	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			97,922				11,001
Open Shares			6,946				21,042
Net proceeds from reinvestment of distributions
Institutional Shares			620,429				2,330,702
Open Shares			33,292				117,418
Cost of shares redeemed
Institutional Shares			(85,002	)			(20,168,629	)
Open Shares			(10,368	)			(13,481	)
Net increase (decrease) in net assets from capital stock transactions			663,219				(17,701,947	)
Total increase (decrease) in net assets			(262,474	)			(17,030,918	)
Net assets at beginning of period			2,899,165				19,930,083
Net assets at end of period		$	2,636,691			$	2,899,165
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			1,190,583				2,065,337
Shares sold			43,028				946
Shares issued to shareholders from reinvestment of distributions			334,204				974,961
Shares redeemed			(36,977	)			(1,850,661	)
Net increase (decrease)			340,255				(874,754	)
Shares outstanding at end of period			1,530,838				1,190,583
Open Shares
Shares outstanding at beginning of period			64,619				11,910
Shares sold			2,964				3,688
Shares issued to shareholders from reinvestment of distributions			18,057				50,340
Shares redeemed			(4,862	)			(1,319	)
Net increase (decrease)			16,159				52,709
Shares outstanding at end of period			80,778				64,619

(c) The Portfolio commenced operations on December 31, 2018.

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

196   Annual Report

Lazard International Compounders Portfolio				Lazard International Equity Advantage Portfolio
Period Ended December 31, 2018 (c)				Year Ended December 31, 2018			Year Ended December 31, 2017
	$	—		$	57,409		$	44,930
		—			76,385			138,984
		(295	)		(562,157	)		338,439
		(295	)		(428,363	)		522,353
		—			(102,427	)		(48,334	)
		—			(4,439	)		(1,892	)
		—			(106,866	)		(50,226	)
		149,000			500			50,001
		1,000			11			—
		—			102,427			48,334
		—			4,439			1,892
		—			(47,991	)		(9,922	)
		—			(11	)		—
		150,000			59,375			90,305
		149,705			(475,854	)		562,432
		—			2,623,916			2,061,484
	$	149,705		$	2,148,062		$	2,623,916
		—			229,680			221,034
		14,900			45			5,171
		—			11,722			4,442
		—			(5,542	)		(967	)
		14,900			6,225			8,646
		14,900			235,905			229,680
		—			10,599			10,425
		100			1			—
		—			507			174
		—			(1	)		—
		100			507			174
		100			11,106			10,599

Annual Report  197

	Lazard International  Equity Concentrated Portfolio
	Year Ended  December 31,  2018			Year Ended  December 31,  2017
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	1,030,116			$	625,838
Net realized gain (loss) on investments and foreign currency transactions		(539,632	)			1,615,858
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		(12,702,020	)			6,674,505
Net increase (decrease) in net assets resulting from operations		(12,211,536	)			8,916,201
Distributions to shareholders (Note 2(e))
Net investment income and net realized gains
Institutional Shares		(2,385,665	)			(638,073	)
Open Shares		(17,538	)			(1,420	)
R6 Shares		—				—
Return of capital
Institutional Shares		—				—
Open Shares		—				—
Net decrease in net assets resulting from distributions		(2,403,203	)			(639,493	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		15,603,350				51,698,119
Open Shares		267,250				146,561
R6 Shares		—				—
Net proceeds from reinvestment of distributions
Institutional Shares		2,339,572				633,613
Open Shares		17,538				1,420
R6 Shares		—				—
Cost of shares redeemed
Institutional Shares		(23,748,931	)			(6,607,152	)
Open Shares		(19,451	)			(76,575	)
R6 Shares		—				—
Net increase (decrease) in net assets from capital stock transactions		(5,540,672	)			45,795,986
Total increase (decrease) in net assets		(20,155,411	)			54,072,694
Net assets at beginning of period		69,659,624				15,586,930
Net assets at end of period	$	49,504,213			$	69,659,624

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

198   Annual Report

Lazard International Equity Portfolio						Lazard International Equity Select Portfolio
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018			Year Ended December 31, 2017
$	62,190,848		$	52,708,694		$	1,333,945		$	572,633
	132,220,543			4,883,307			338,398			967,480
	(625,076,980	)		643,178,411			(14,665,490	)		9,382,645
	(430,665,589	)		700,770,412			(12,993,147	)		10,922,758
	(162,037,288	)		(37,101,517	)		(1,895,320	)		(326,389	)
	(16,140,086	)		(6,787,026	)		(30,210	)		(10,427	)
	(9,585,071	)		(9,812,446	)		—			—
	—			—			—			—
	—			—			—			—
	(187,762,445	)		(53,700,989	)		(1,925,530	)		(336,816	)
	692,426,011			1,609,287,090			65,277,340			27,547,397
	71,811,533			279,622,992			1,202,007			427,893
	51,158,456			619,962,012			—			—
	135,295,299			31,790,226			1,746,591			266,756
	14,706,387			6,454,617			30,210			9,239
	9,585,071			9,812,446			—			—
	(1,024,041,994	)		(715,965,738	)		(31,783,405	)		(12,174,649	)
	(80,776,096	)		(1,233,044,805	)		(2,229,497	)		(293,819	)
	(619,023,756	)		(115,088,363	)		—			—
	(748,859,089	)		492,830,477			34,243,246			15,782,817
	(1,367,287,123	)		1,139,899,900			19,324,569			26,368,759
	3,804,020,354			2,664,120,454			56,759,749			30,390,990
$	2,436,733,231		$	3,804,020,354		$	76,084,318		$	56,759,749

Annual Report  199

	Lazard International Equity Concentrated Portfolio
	Year Ended December 31, 2018			Year Ended December 31, 2017
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		6,658,885			1,811,118
Shares sold		1,557,217			5,480,279
Shares issued to shareholders from reinvestment of distributions		286,268			61,515
Shares redeemed		(2,614,119	)		(694,027	)
Net increase (decrease)		(770,634	)		4,847,767
Shares outstanding at end of period		5,888,251			6,658,885
Open Shares
Shares outstanding at beginning of period		21,011			13,327
Shares sold		26,848			15,550
Shares issued to shareholders from reinvestment of distributions		2,144			138
Shares redeemed		(2,234	)		(8,004	)
Net increase (decrease)		26,758			7,684
Shares outstanding at end of period		47,769			21,011
R6 Shares
Shares outstanding at beginning of period		—			—
Shares sold		—			—
Shares issued to shareholders from reinvestment of distributions		—			—
Shares redeemed		—			—
Net increase (decrease)		—			—
Shares outstanding at end of period		—			—

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

200   Annual Report

Lazard International Equity Portfolio						Lazard International Equity Select Portfolio
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018			Year Ended December 31, 2017
	144,593,511			93,319,210			4,895,525			3,271,065
	36,738,628			88,541,076			6,149,590			2,854,325
	8,719,524			1,648,820			187,099			26,307
	(55,923,190	)		(38,915,595	)		(3,059,643	)		(1,256,172	)
	(10,465,038	)		51,274,301			3,277,046			1,624,460
	134,128,473			144,593,511			8,172,571			4,895,525
	13,869,285			65,536,029			256,624			241,443
	3,733,499			14,688,275			113,077			43,876
	936,334			339,995			3,261			908
	(4,202,818	)		(66,695,014	)		(209,201	)		(29,603	)
	467,015			(51,666,744	)		(92,863	)		15,181
	14,336,300			13,869,285			163,761			256,624
	35,418,952			4,890,072			—			—
	2,684,577			36,289,913			—			—
	618,559			511,373			—			—
	(31,918,706	)		(6,272,406	)		—			—
	(28,615,570	)		30,528,880			—			—
	6,803,382			35,418,952			—			—

Annual Report  201

	Lazard International Equity Value Portfolio
	Period Ended December 31, 2018 (d)
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	28,960
Net realized gain (loss) on investments and foreign currency transactions			(696,490	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations			(1,462,526	)
Net increase (decrease) in net assets resulting from operations			(2,130,056	)
Distributions to shareholders (Note 2(e))
Institutional Shares			(26,179	)
Open Shares			(36	)
R6 Shares			—
Net decrease in net assets resulting from distributions			(26,215	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			25,094,341
Open Shares			94,078
R6 Shares			—
Net proceeds from reinvestment of distributions
Institutional Shares			26,179
Open Shares			36
R6 Shares			—
Cost of shares redeemed
Institutional Shares			(26,571	)
Open Shares			(47,885	)
R6 Shares			—
Net increase (decrease) in net assets from capital stock transactions			25,140,178
Total increase (decrease) in net assets			22,983,907
Net assets at beginning of period			—
Net assets at end of period		$	22,983,907

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

202   Annual Report

Lazard International Small Cap Equity Portfolio						Lazard International Strategic Equity Portfolio
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018			Year Ended December 31, 2017
$	676,876		$	581,526		$	89,333,071		$	79,666,900
	7,560,083			6,230,274			555,754,186			322,221,811
	(27,323,558	)		17,988,019			(1,299,655,438	)		1,282,558,739
	(19,086,599	)		24,799,819			(654,568,181	)		1,684,447,450
	(1,675,001	)		—			(390,962,878	)		(76,161,214	)
	(844,717	)		—			(67,997,086	)		(12,527,283	)
	—			—			(8,298,386	)		(1,402,962	)
	(2,519,718	)		—			(467,258,350	)		(90,091,459	)
	22,184,618			7,432,344			1,191,814,486			987,508,397
	5,161,365			5,933,441			220,196,653			222,062,681
	—			—			25,261,981			22,635,019
	1,671,063			—			377,793,204			71,783,902
	765,533			—			62,572,751			11,206,995
	—			—			8,184,877			1,402,962
	(16,237,337	)		(15,138,177	)		(1,912,545,919	)		(1,522,608,879	)
	(20,181,718	)		(20,970,648	)		(503,144,624	)		(918,633,394	)
	—			—			(26,460,064	)		(32,942,261	)
	(6,636,476	)		(22,743,040	)		(556,326,655	)		(1,157,584,578	)
	(28,242,793	)		2,056,779			(1,678,153,186	)		436,771,413
	83,628,992			81,572,213			7,238,428,668			6,801,657,255
$	55,386,199		$	83,628,992		$	5,560,275,482		$	7,238,428,668

Annual Report  203

	Lazard International Equity Value Portfolio
	Period Ended December 31, 2018 (d)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		—
Shares sold		2,509,986
Shares issued to shareholders from reinvestment of distributions		2,928
Shares redeemed		(2,917	)
Net increase (decrease)		2,509,997
Shares outstanding at end of period		2,509,997
Open Shares
Shares outstanding at beginning of period		—
Shares sold		9,423
Shares issued to shareholders from reinvestment of distributions		4
Shares redeemed		(5,216	)
Net increase (decrease)		4,211
Shares outstanding at end of period		4,211
R6 Shares
Shares outstanding at beginning of period		—
Shares sold		—
Shares issued to shareholders from reinvestment of distributions		—
Shares redeemed		—
Net increase (decrease)		—
Shares outstanding at end of period		—

(d) The Portfolio commenced operations on October 31, 2018.

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

204   Annual Report

Lazard International Small Cap Equity Portfolio						Lazard International Strategic Equity Portfolio
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018			Year Ended December 31, 2017
	2,993,040			3,668,073			376,589,551			410,970,431
	1,656,082			612,273			76,867,462			71,517,376
	146,870			—			29,898,424			4,595,640
	(1,266,326	)		(1,287,306	)		(124,128,251	)		(110,493,896	)
	536,626			(675,033	)		(17,362,365	)		(34,380,880	)
	3,529,666			2,993,040			359,227,186			376,589,551
	3,064,171			4,385,394			76,885,738			126,809,001
	401,822			510,938			14,094,427			16,084,578
	68,202			—			4,909,122			711,555
	(1,502,597	)		(1,832,161	)		(31,879,534	)		(66,719,396	)
	(1,032,573	)		(1,321,223	)		(12,875,985	)		(49,923,263	)
	2,031,598			3,064,171			64,009,753			76,885,738
	—			—			7,026,668			7,730,925
	—			—			1,599,586			1,686,785
	—			—			647,215			89,761
	—			—			(1,724,194	)		(2,480,803	)
	—			—			522,607			(704,257	)
	—			—			7,549,275			7,026,668

Annual Report  205

	Lazard Managed Equity Volatility Portfolio
	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	315,398		$	55,899
Net realized gain (loss) on investments and foreign currency transactions		(294,609	)		208,441
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		(1,538,663	)		356,438
Net increase (decrease) in net assets resulting from operations		(1,517,874	)		620,778
Distributions to shareholders (Note 2(e))
Institutional Shares		(381,378	)		(163,261	)
Open Shares		(4,224	)		(11,492	)
R6 Shares		—			—
Net decrease in net assets resulting from distributions		(385,602	)		(174,753	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		20,348,996			1,184,556
Open Shares		30,826			103,001
R6 Shares		—			—
Net proceeds from reinvestment of distributions
Institutional Shares		346,406			163,260
Open Shares		2,739			11,493
R6 Shares		—			—
Cost of shares redeemed
Institutional Shares		(2,294,274	)		(15,062	)
Open Shares		(134,055	)		(1,254	)
R6 Shares		—			—
Net increase (decrease) in net assets from capital stock transactions		18,300,638			1,445,994
Total increase (decrease) in net assets		16,397,162			1,892,019
Net assets at beginning of period		4,494,905			2,602,886
Net assets at end of period	$	20,892,067		$	4,494,905

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

206  Annual Report

Lazard US Equity Concentrated Portfolio						Lazard US Equity Select Portfolio
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018			Year Ended December 31, 2017
$	17,196,730		$	13,875,284		$	915,707		$	932,975
	74,632,752			142,271,974			7,992,281			8,352,420
	(172,165,758	)		63,020,970			(10,904,671	)		5,046,521
	(80,336,276	)		219,168,228			(1,996,683	)		14,331,916
	(126,901,740	)		(98,098,518	)		(9,488,347	)		(7,111,211	)
	(5,585,479	)		(5,450,099	)		(132,836	)		(97,134	)
	(158,630	)		(22,895	)		(1,527,040	)		(1,087,991	)
	(132,645,849	)		(103,571,512	)		(11,148,223	)		(8,296,336	)
	231,478,214			427,187,488			2,797,366			6,051,046
	15,671,466			31,985,344			54,694			152,723
	2,047,701			217,994			3,687,551			3,879,821
	114,753,886			88,099,840			9,486,106			7,105,793
	5,517,497			5,378,038			132,621			94,116
	158,630			22,896			1,527,040			1,087,991
	(609,674,559	)		(344,089,983	)		(13,412,997	)		(17,326,936	)
	(49,537,525	)		(63,956,675	)		(159,494	)		(710,616	)
	(245,106	)		(33,244	)		(4,765,670	)		(7,829,156	)
	(289,829,796	)		144,811,698			(652,783	)		(7,495,218	)
	(502,811,921	)		260,408,414			(13,797,689	)		(1,459,638	)
	1,596,544,167			1,336,135,753			85,364,648			86,824,286
$	1,093,732,246		$	1,596,544,167		$	71,566,959		$	85,364,648

Annual Report  207

	Lazard Managed Equity Volatility Portfolio
	Year Ended December 31, 2018			Year Ended December 31, 2017
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		361,300			243,326
Shares sold		1,790,614			105,129
Shares issued to shareholders from reinvestment of distributions		33,373			14,184
Shares redeemed		(221,901	)		(1,339	)
Net increase (decrease)		1,602,086			117,974
Shares outstanding at end of period		1,963,386			361,300
Open Shares
Shares outstanding at beginning of period		27,255			17,240
Shares sold		2,695			9,125
Shares issued to shareholders from reinvestment of distributions		262			999
Shares redeemed		(12,808	)		(109	)
Net increase (decrease)		(9,851	)		10,015
Shares outstanding at end of period		17,404			27,255
R6 Shares
Shares outstanding at beginning of period		—			—
Shares sold		—			—
Shares issued to shareholders from reinvestment of distributions		—			—
Shares redeemed		—			—
Net increase (decrease)		—			—
Shares outstanding at end of period		—			—

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

208  Annual Report

Lazard US Equity Concentrated Portfolio						Lazard US Equity Select Portfolio
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018			Year Ended December 31, 2017
	98,527,318			86,904,349			5,870,874			6,202,475
	14,982,089			28,269,097			229,810			489,330
	8,686,899			5,739,411			915,948			572,928
	(41,424,176	)		(22,385,539	)		(1,089,560	)		(1,393,859	)
	(17,755,188	)		11,622,969			56,198			(331,601	)
	80,772,130			98,527,318			5,927,072			5,870,874
	5,681,791			7,411,857			81,216			117,822
	991,563			2,116,503			4,222			12,271
	413,698			347,869			12,734			7,567
	(3,161,325	)		(4,194,438	)		(12,410	)		(56,444	)
	(1,756,064	)		(1,730,066	)		4,546			(36,606	)
	3,925,727			5,681,791			85,762			81,216
	23,498			9,872			916,579			1,143,030
	126,703			14,283			291,908			313,440
	12,595			1,488			147,820			87,657
	(15,698	)		(2,145	)		(373,560	)		(627,548	)
	123,600			13,626			66,168			(226,451	)
	147,098			23,498			982,747			916,579

Annual Report  209

	Lazard US Realty Equity Portfolio
	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	805,208		$	962,278
Net realized gain (loss) on investments		2,480,557			5,407,448
Net change in unrealized appreciation (depreciation) on investments		(9,938,039	)		(890,356	)
Net increase (decrease) in net assets resulting from operations		(6,652,274	)		5,479,370
Distributions to shareholders (Note 2(e))
Institutional Shares		(695,484	)		(1,865,431	)
Open Shares		(1,716,582	)		(4,676,280	)
Net decrease in net assets resulting from distributions		(2,412,066	)		(6,541,711	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		1,624,667			3,978,753
Open Shares		3,032,454			3,900,457
Issued in connection with acquisition of US Realty Income Portfolio
Institutional Shares		10,788,800			—
Open Shares		11,850,795			—
Net proceeds from reinvestment of distributions
Institutional Shares		690,667			1,840,386
Open Shares		1,661,053			4,526,431
Cost of shares redeemed
Institutional Shares		(13,277,642	)		(6,377,175	)
Open Shares		(14,180,850	)		(19,202,537	)
Net increase (decrease) in net assets from capital stock transactions		2,189,944			(11,333,685	)
Total increase (decrease) in net assets		(6,874,396	)		(12,396,026	)
Net assets at beginning of period		66,535,910			78,931,936
Net assets at end of period	$	59,661,514		$	66,535,910
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		993,322			1,013,228
Shares sold		91,997			199,657
Shares issued in connection with acquisition of US Realty Income Portfolio		562,426			—
Shares issued to shareholders from reinvestment of distributions		40,649			98,095
Shares redeemed		(746,565	)		(317,658	)
Net increase (decrease)		(51,493	)		(19,906	)
Shares outstanding at end of period		941,829			993,322
Open Shares
Shares outstanding at beginning of period		2,524,879			3,050,064
Shares sold		167,884			194,919
Shares issued in connection with acquisition of US Realty Income Portfolio		616,099			—
Shares issued to shareholders from reinvestment of distributions		97,455			240,214
Shares redeemed		(785,245	)		(960,318	)
Net increase (decrease)		96,193			(525,185	)
Shares outstanding at end of period		2,621,072			2,524,879

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

210  Annual Report

Lazard US Small-Mid Cap Equity Portfolio
Year Ended December 31, 2018			Year Ended December 31, 2017
$	597,923		$	727,068
	15,587,339			25,902,875
	(36,201,275	)		267,481
	(20,016,013	)		26,897,424
	(17,695,195	)		(20,425,988	)
	(2,222,866	)		(3,158,573	)
	(19,918,061	)		(23,584,561	)
	21,485,449			24,700,686
	2,442,537			9,096,024
	—			—
	—			—
	17,320,681			20,069,757
	2,058,605			3,032,378
	(66,434,776	)		(60,255,552	)
	(12,483,878	)		(16,933,398	)
	(35,611,382	)		(20,290,105	)
	(75,545,456	)		(16,977,242	)
	202,948,188			219,925,430
$	127,402,732		$	202,948,188
	12,081,329			13,078,287
	1,436,712			1,659,111
	—			—
	1,572,044			1,373,469
	(4,596,397	)		(4,029,538	)
	(1,587,641	)		(996,958	)
	10,493,688			12,081,329
	1,893,205			2,217,138
	183,177			654,337
	—			—
	201,850			221,466
	(909,420	)		(1,199,736	)
	(524,393	)		(323,933	)
	1,368,812			1,893,205

Annual Report  211

The Lazard Funds, Inc. Financial Highlights

LAZARD DEVELOPING MARKETS EQUITY PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	14.48		$	10.28		$	9.04		$	10.43		$	11.81
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.11			0.03			0.05	^		0.06			0.09
Net realized and unrealized gain (loss)		(3.08	)		4.20			1.29			(1.40	)		(1.30	)
Total from investment operations		(2.97	)		4.23			1.34			(1.34	)		(1.21	)
Less distributions from:
Net investment income		(0.09	)		(0.03	)		(0.10	)		(0.05	)		(0.17	)
Total distributions		(0.09	)		(0.03	)		(0.10	)		(0.05	)		(0.17	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	11.42		$	14.48		$	10.28		$	9.04		$	10.43
Total Return (c)		–20.58	%		41.15	%		14.81	%^		–12.84	%		–10.27	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	215,120		$	268,730		$	189,035		$	343,788		$	426,847
Ratios to average net assets:
Net expenses		1.14	%		1.18	%		1.21	%^		1.20	%		1.19	%
Gross expenses		1.14	%		1.18	%		1.23	%		1.20	%		1.19	%
Net investment income (loss)		0.83	%		0.24	%		0.48	%^		0.55	%		0.80	%
Portfolio turnover rate		63	%		46	%		56	%		66	%		57	%

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

212  Annual Report

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	14.45		$	10.28		$	9.05		$	10.43		$	11.81
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.06			(0.02	)		0.01	^		0.01			0.08
Net realized and unrealized gain (loss)		(3.06	)		4.19			1.28			(1.38	)		(1.33	)
Total from investment operations		(3.00	)		4.17			1.29			(1.37	)		(1.25	)
Less distributions from:
Net investment income		(0.09	)		—			(0.06	)		(0.01	)		(0.13	)
Total distributions		(0.09	)		—			(0.06	)		(0.01	)		(0.13	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	11.36		$	14.45		$	10.28		$	9.05		$	10.43
Total Return (c)		–20.83	%#		40.56	%		14.31	%^		–13.11	%		–10.57	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	7,263		$	12,569		$	7,272		$	10,903		$	16,029
Ratios to average net assets:
Net expenses		1.51	%		1.58	%		1.60	%^		1.57	%		1.49	%
Gross expenses		1.51	%		1.58	%		1.65	%		1.57	%		1.49	%
Net investment income (loss)		0.42	%		–0.17	%		0.06	%^		0.13	%		0.70	%
Portfolio turnover rate		63	%		46	%		56	%		66	%		57	%

^	Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the 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).
#	The Portfolio received settlement proceeds from a foreign exchange trading class action lawsuit. The proceeds from the settlement represented a realized gain and were recorded in the period received. There was a 0.07% impact on the total return of the Portfolio’s Open Shares.
(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 DST; 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  213

LAZARD EMERGING MARKETS CORE EQUITY PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	12.30		$	8.83		$	8.60		$	9.62		$	9.83
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.16			0.11			0.08			0.03			0.03
Net realized and unrealized gain (loss)		(2.39	)		3.45			0.22			(1.03	)		(0.15	)
Total from investment operations		(2.23	)		3.56			0.30			(1.00	)		(0.12	)
Less distributions from:
Net investment income		(0.18	)		(0.09	)		(0.07	)		(0.01	)		(0.08	)
Return of capital		—			—			—			(0.01	)		(0.01	)
Total distributions		(0.18	)		(0.09	)		(0.07	)		(0.02	)		(0.09	)
Redemption fees		—			—			—	(b)		—	(b)		—
Net asset value, end of period	$	9.89		$	12.30		$	8.83		$	8.60		$	9.62
Total Return (c)		–18.12	%		40.35	%		3.47	%		–10.36	%		–1.25	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	207,955		$	230,343		$	122,995		$	102,421		$	39,832
Ratios to average net assets:
Net expenses		1.18	%		1.20	%		1.30	%		1.30	%		1.30	%
Gross expenses		1.18	%		1.20	%		1.31	%		1.52	%		2.28	%
Net investment income (loss)		1.44	%		0.98	%		0.89	%		0.32	%		0.28	%
Portfolio turnover rate		30	%		15	%		62	%		46	%		45	%

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

214  Annual Report

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	12.27		$	8.81		$	8.58		$	9.62		$	9.83
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.11			0.06			0.07			—	(b)		(0.04	)
Net realized and unrealized gain (loss)		(2.37	)		3.45			0.20			(1.04	)		(0.11	)
Total from investment operations		(2.26	)		3.51			0.27			(1.04	)		(0.15	)
Less distributions from:
Net investment income		(0.14	)		(0.05	)		(0.04	)		—			(0.05	)
Return of capital		—			—			—			—			(0.01	)
Total distributions		(0.14	)		(0.05	)		(0.04	)		—			(0.06	)
Redemption fees		—			—			—			—			—	(b)
Net asset value, end of period	$	9.87		$	12.27		$	8.81		$	8.58		$	9.62
Total Return (c)		–18.43	%		39.80	%		3.17	%		–10.81	%		–1.56	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,853		$	1,828		$	729		$	2,344		$	5,266
Ratios to average net assets:
Net expenses		1.58	%		1.60	%		1.60	%		1.60	%		1.60	%
Gross expenses		2.00	%		2.45	%		2.14	%		2.35	%		2.81	%
Net investment income (loss)		1.00	%		0.56	%		0.85	%		–0.04	%		–0.35	%
Portfolio turnover rate		30	%		15	%		62	%		46	%		45	%

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

Annual Report  215

Selected data for a share of capital stock outstanding throughout the period	For the Period 4/6/18* to 12/31/18
R6 Shares
Net asset value, beginning of period		$	12.21
Income (Loss) from investment operations:
Net investment income (loss) (a)			0.14
Net realized and unrealized gain (loss)			(2.28	)
Total from investment operations			(2.14	)
Less distributions from:
Net investment income			(0.18	)
Total distributions			(0.18	)
Net asset value, end of period		$	9.89
Total Return (c)			–17.52	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	494
Ratios to average net assets (d):
Net expenses			1.16	%
Gross expenses			7.68	%
Net investment income (loss)			1.71	%
Portfolio turnover rate			30	%

*	The inception date for the R6 Shares was April 6, 2018.
(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 DST; 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.

216  Annual Report

LAZARD EMERGING MARKETS EQUITY ADVANTAGE PORTFOLIO

Selected data for a share										For the Period
of capital stock outstanding	Year Ended									5/29/15* to
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15
Institutional Shares
Net asset value, beginning of period	$	12.27		$	8.71		$	8.06		$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.19			0.12			0.12			0.08
Net realized and unrealized gain (loss)		(2.19	)		3.58			0.67			(1.88	)
Total from investment operations		(2.00	)		3.70			0.79			(1.80	)
Less distributions from:
Net investment income		(0.22	)		(0.13	)		(0.13	)		(0.14	)
Net realized gains		—	(b)		—			—			—
Return of capital		(0.02	)		(0.01	)		(0.01	)		—
Total distributions		(0.24	)		(0.14	)		(0.14	)		(0.14	)
Net asset value, end of period	$	10.03		$	12.27		$	8.71		$	8.06
Total Return (c)		–16.23	%		42.52	%		9.83	%		–17.97	%
Ratios and Supplemental Data:
Net assets, end of period  (in thousands)	$	3,107		$	4,191		$	2,896		$	2,618
Ratios to average net assets (d):
Net expenses		1.10	%		1.10	%		1.10	%		1.10	%
Gross expenses		5.60	%		6.29	%		9.57	%		11.47	%
Net investment income (loss)		1.59	%		1.15	%		1.41	%		1.54	%
Portfolio turnover rate		61	%		52	%		57	%		38	%

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

Annual Report  217

Selected data for a share										For the Period
of capital stock outstanding	Year Ended									5/29/15* to
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15
Open Shares
Net asset value, beginning of period	$	12.27		$	8.71		$	8.06		$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.16			0.08			0.09			0.06
Net realized and unrealized gain (loss)		(2.18	)		3.58			0.68			(1.87	)
Total from investment operations		(2.02	)		3.66			0.77			(1.81	)
Less distributions from:
Net investment income		(0.19	)		(0.09	)		(0.11	)		(0.13	)
Net realized gains		—	(b)		—			—			—
Return of capital		(0.02	)		(0.01	)		(0.01	)		—
Total distributions		(0.21	)		(0.10	)		(0.12	)		(0.13	)
Net asset value, end of period	$	10.04		$	12.27		$	8.71		$	8.06
Total Return (c)		–16.40	%		42.09	%		9.51	%		–18.13	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	476		$	356		$	120		$	95
Ratios to average net assets (d):
Net expenses		1.40	%		1.40	%		1.40	%		1.40	%
Gross expenses		8.09	%		12.17	%		20.02	%		26.37	%
Net investment income (loss)		1.35	%		0.72	%		1.06	%		1.18	%
Portfolio turnover rate		61	%		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)	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 DST; 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.

218  Annual Report

LAZARD EMERGING MARKETS EQUITY BLEND PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	12.93		$	9.60		$	8.53		$	10.00		$	11.18
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.17			0.10			0.08	^		0.12			0.15
Net realized and unrealized gain (loss)		(2.89	)		3.35			1.04			(1.39	)		(1.12	)
Total from investment operations		(2.72	)		3.45			1.12			(1.27	)		(0.97	)
Less distributions from:
Net investment income		(0.19	)		(0.12	)		(0.05	)		(0.19	)		(0.21	)
Return of capital		—			—			—			(0.01	)		—	(b)
Total distributions		(0.19	)		(0.12	)		(0.05	)		(0.20	)		(0.21	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	10.02		$	12.93		$	9.60		$	8.53		$	10.00
Total Return (c)		–21.05	%		35.98	%		13.12	%^		–12.74	%		–8.66	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	291,404		$	385,492		$	282,473		$	287,857		$	463,043
Ratios to average net assets:
Net expenses		1.15	%		1.21	%		1.25	%^		1.20	%		1.28	%
Gross expenses		1.15	%		1.21	%		1.26	%		1.20	%		1.28	%
Net investment income (loss)		1.39	%		0.90	%		0.88	%^		1.22	%		1.33	%
Portfolio turnover rate		61	%		57	%		47	%		38	%		44	%

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

Annual Report  219

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	12.95		$	9.62		$	8.55		$	9.99		$	11.17
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.12			0.06			0.05	^		0.11			0.10
Net realized and unrealized gain (loss)		(2.89	)		3.34			1.04			(1.38	)		(1.10	)
Total from investment operations		(2.77	)		3.40			1.09			(1.27	)		(1.00	)
Less distributions from:
Net investment income		(0.15	)		(0.07	)		(0.02	)		(0.17	)		(0.18	)
Return of capital		—			—			—			—	(b)		—	(b)
Total distributions		(0.15	)		(0.07	)		(0.02	)		(0.17	)		(0.18	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	10.03		$	12.95		$	9.62		$	8.55		$	9.99
Total Return (c)		–21.39	%		35.38	%		12.74	%^		–12.77	%		–8.95	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	6,200		$	9,728		$	6,804		$	7,107		$	123,756
Ratios to average net assets:
Net expenses		1.53	%		1.60	%		1.60	%^		1.54	%		1.60	%
Gross expenses		1.53	%		1.61	%		1.89	%		1.54	%		1.63	%
Net investment income (loss)		1.01	%		0.50	%		0.54	%^		1.10	%		0.94	%
Portfolio turnover rate		61	%		57	%		47	%		38	%		44	%

^	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 DST; 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.

220  Annual Report

LAZARD EMERGING MARKETS EQUITY PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	20.02		$	15.96		$	13.44		$	17.19		$	18.67
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.39			0.33			0.24	^		0.30			0.37
Net realized and unrealized gain (loss)		(4.01	)		4.13			2.52			(3.76	)		(1.13	)
Total from investment operations		(3.62	)		4.46			2.76			(3.46	)		(0.76	)
Less distributions from:
Net investment income		(0.34	)		(0.40	)		(0.24	)		(0.23	)		(0.37	)
Net realized gains		—			—			—			(0.06	)		(0.35	)
Total distributions		(0.34	)		(0.40	)		(0.24	)		(0.29	)		(0.72	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	16.06		$	20.02		$	15.96		$	13.44		$	17.19
Total Return (c)		–18.09	%		28.02	%		20.52	%^		–20.16	%		–4.16	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	7,573,861		$	11,285,358		$	9,311,693		$	8,238,638		$	12,156,645
Ratios to average net assets:
Net expenses		1.07	%		1.08	%		1.09	%^		1.10	%		1.09	%
Gross expenses		1.07	%		1.08	%		1.09	%		1.10	%		1.09	%
Net investment income (loss)		2.12	%		1.82	%		1.59	%^		1.83	%		1.97	%
Portfolio turnover rate		16	%		14	%		12	%		14	%		12	%

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

Annual Report  221

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	20.60		$	16.41		$	13.82		$	17.65		$	19.14
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.35			0.29			0.21	^		0.26			0.34
Net realized and unrealized gain (loss)		(4.12	)		4.25			2.58			(3.84	)		(1.16	)
Total from investment operations		(3.77	)		4.54			2.79			(3.58	)		(0.82	)
Less distributions from:
Net investment income		(0.30	)		(0.35	)		(0.20	)		(0.19	)		(0.32	)
Net realized gains		—			—			—			(0.06	)		(0.35	)
Total distributions		(0.30	)		(0.35	)		(0.20	)		(0.25	)		(0.67	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	16.53		$	20.60		$	16.41		$	13.82		$	17.65
Total Return (c)		–18.32	%		27.73	%		20.17	%^		–20.33	%		–4.39	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,004,569		$	1,515,715		$	1,287,552		$	832,706		$	1,474,597
Ratios to average net assets:
Net expenses		1.32	%		1.34	%		1.35	%^		1.37	%		1.37	%
Gross expenses		1.32	%		1.34	%		1.35	%		1.37	%		1.37	%
Net investment income (loss)		1.85	%		1.55	%		1.35	%^		1.58	%		1.76	%
Portfolio turnover rate		16	%		14	%		12	%		14	%		12	%

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

222  Annual Report

Selected data for a share										For the Period
of capital stock outstanding	Year Ended									1/19/15* to
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15
R6 Shares
Net asset value, beginning of period	$	20.02		$	15.96		$	13.44		$	17.26
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.40			0.35			0.23	^		0.27
Net realized and unrealized gain (loss)		(4.02	)		4.11			2.53			(3.80	)
Total from investment operations		(3.62	)		4.46			2.76			(3.53	)
Less distributions from:
Net investment income		(0.34	)		(0.40	)		(0.24	)		(0.23	)
Net realized gains		—			—			—			(0.06	)
Total distributions		(0.34	)		(0.40	)		(0.24	)		(0.29	)
Net asset value, end of period	$	16.06		$	20.02		$	15.96		$	13.44
Total Return (c)		–18.09	%		28.02	%		20.52	%^		–20.50	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	232,507		$	372,568		$	197,959		$	144,626
Ratios to average net assets (d):
Net expenses		1.07	%		1.08	%		1.09	%^		1.12	%
Gross expenses		1.07	%		1.08	%		1.10	%		1.13	%
Net investment income (loss)		2.15	%		1.91	%		1.54	%^		1.79	%
Portfolio turnover rate		16	%		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 DST; 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  223

LAZARD EQUITY FRANCHISE PORTFOLIO

Selected data for a share					For the Period
of capital stock outstanding	Year Ended				9/29/17*
throughout each period	12/31/18				to 12/31/17
Institutional Shares
Net asset value, beginning of period		$	10.38		$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)			0.20			0.03
Net realized and unrealized gain (loss)			(0.75	)		0.40
Total from investment operations			(0.55	)		0.43
Less distributions from:
Net investment income			(0.21	)		(0.03	)
Net realized gains			(0.78	)		(0.02	)
Total distributions			(0.99	)		(0.05	)
Net asset value, end of period		$	8.84		$	10.38
Total Return (b)			–5.10	%		4.25	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	8,341		$	5,566
Ratios to average net assets (c):
Net expenses			0.95	%		0.95	%
Gross expenses			3.42	%		3.21	%
Net investment income (loss)			1.94	%		1.26	%
Portfolio turnover rate			97	%		10	%

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

224  Annual Report

Selected data for a share					For the Period
of capital stock outstanding	Year Ended				9/29/17*
throughout each period	12/31/18				to 12/31/17
Open Shares
Net asset value, beginning of period		$	10.38			$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)			0.19				0.03
Net realized and unrealized gain (loss)			(0.77	)			0.39
Total from investment operations			(0.58	)			0.42
Less distributions from:
Net investment income			(0.18	)			(0.02	)
Net realized gains			(0.78	)			(0.02	)
Total distributions			(0.96	)			(0.04	)
Net asset value, end of period		$	8.84			$	10.38
Total Return (b)			–5.34	%			4.18	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	190			$	111
Ratios to average net assets (c):
Net expenses			1.20	%			1.20	%
Gross expenses			10.19	%			23.62	%
Net investment income (loss)			1.75	%			1.14	%
Portfolio turnover rate			97	%			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 DST; 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  225

LAZARD GLOBAL EQUITY SELECT PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	13.04		$	10.53		$	10.33		$	10.32		$	10.02
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.09			0.07			0.09			0.04			0.07
Net realized and unrealized gain (loss)		(1.02	)		2.93			0.18			0.01			0.29
Total from investment operations		(0.93	)		3.00			0.27			0.05			0.36
Less distributions from:
Net investment income		(0.06	)		(0.10	)		(0.07	)		(0.04	)		(0.06	)
Net realized gains		(0.32	)		(0.39	)		—			—			—
Return of capital		(0.01	)		—			—			—			—
Total distributions		(0.39	)		(0.49	)		(0.07	)		(0.04	)		(0.06	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	11.72		$	13.04		$	10.53		$	10.33		$	10.32
Total Return (c)		–7.12	%		28.52	%		2.66	%		0.46	%		3.84	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	65,382		$	58,201		$	31,197		$	20,624		$	12,266
Ratios to average net assets:
Net expenses		1.05	%		1.05	%		1.07	%		1.10	%		1.10	%
Gross expenses		1.08	%		1.30	%		1.75	%		2.27	%		4.62	%
Net investment income (loss)		0.70	%		0.60	%		0.86	%		0.41	%		0.64	%
Portfolio turnover rate		34	%		34	%		40	%		55	%		64	%

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

226  Annual Report

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	13.04		$	10.54		$	10.34		$	10.32		$	10.01
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.05			0.04			0.06			0.01			0.04
Net realized and unrealized gain (loss)		(1.01	)		2.91			0.18			0.02			0.30
Total from investment operations		(0.96	)		2.95			0.24			0.03			0.34
Less distributions from:
Net investment income		(0.02	)		(0.06	)		(0.04	)		(0.01	)		(0.03	)
Net realized gains		(0.32	)		(0.39	)		—			—			—
Return of capital		(0.01	)		—			—			—			—
Total distributions		(0.35	)		(0.45	)		(0.04	)		(0.01	)		(0.03	)
Net asset value, end of period	$	11.73		$	13.04		$	10.54		$	10.34		$	10.32
Total Return (c)		–7.33	%		28.01	%		2.35	%		0.24	%		3.54	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	763		$	711		$	515		$	290		$	201
Ratios to average net assets:
Net expenses		1.35	%		1.35	%		1.37	%		1.40	%		1.40	%
Gross expenses		2.80	%		3.70	%		5.38	%		7.42	%		13.34	%
Net investment income (loss)		0.41	%		0.32	%		0.56	%		0.09	%		0.35	%
Portfolio turnover rate		34	%		34	%		40	%		55	%		64	%

(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 DST; 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  227

LAZARD GLOBAL LISTED INFRASTRUCTURE PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	15.99		$	14.17		$	13.42		$	13.72		$	13.13
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.41			0.39			0.31	^		0.33			0.34
Net realized and unrealized gain (loss)		(0.96	)		2.54			0.92			0.89			2.01
Total from investment operations		(0.55	)		2.93			1.23			1.22			2.35
Less distributions from:
Net investment income		(0.72	)		(0.29	)		(0.34	)		(1.17	)		(1.04	)
Net realized gains		(1.21	)		(0.82	)		(0.14	)		(0.35	)		(0.72	)
Total distributions		(1.93	)		(1.11	)		(0.48	)		(1.52	)		(1.76	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	13.51		$	15.99		$	14.17		$	13.42		$	13.72
Total Return (c)		–3.68	%		20.73	%		9.30	%^		9.30	%		17.95	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	4,924,359		$	4,778,042		$	2,931,161		$	2,156,325		$	1,372,216
Ratios to average net assets:
Net expenses		0.95	%		0.95	%		0.96	%^		0.96	%		0.98	%
Gross expenses		0.95	%		0.95	%		0.96	%		0.96	%		0.98	%
Net investment income (loss)		2.65	%		2.44	%		2.29	%^		2.32	%		2.35	%
Portfolio turnover rate		49	%		33	%		35	%		34	%		41	%

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

228  Annual Report

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	16.01		$	14.20		$	13.45		$	13.74		$	13.15
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.37			0.35			0.29	^		0.31			0.29
Net realized and unrealized gain (loss)		(0.97	)		2.55			0.91			0.88			2.02
Total from investment operations		(0.60	)		2.90			1.20			1.19			2.31
Less distributions from:
Net investment income		(0.68	)		(0.27	)		(0.31	)		(1.13	)		(1.00	)
Net realized gains		(1.21	)		(0.82	)		(0.14	)		(0.35	)		(0.72	)
Total distributions		(1.89	)		(1.09	)		(0.45	)		(1.48	)		(1.72	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	13.52		$	16.01		$	14.20		$	13.45		$	13.74
Total Return (c)		–3.98	%		20.47	%		9.01	%^		9.06	%		17.61	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	426,749		$	633,243		$	462,613		$	393,786		$	145,901
Ratios to average net assets:
Net expenses		1.20	%		1.21	%		1.22	%^		1.23	%		1.29	%
Gross expenses		1.20	%		1.21	%		1.22	%		1.23	%		1.29	%
Net investment income (loss)		2.36	%		2.16	%		2.09	%^		2.19	%		2.04	%
Portfolio turnover rate		49	%		33	%		35	%		34	%		41	%

^ 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  229

LAZARD GLOBAL REALTY EQUITY PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18*			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	15.52		$	14.16		$	14.19		$	15.17		$	15.49
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.33			0.32			0.22			0.27			0.34
Net realized and unrealized gain (loss)		(15.54	)		1.75			0.19			(0.24	)		1.29
Total from investment operations		(15.21	)		2.07			0.41			0.03			1.63
Less distributions from:
Net investment income		(0.23	)		(0.47	)		(0.44	)		(0.56	)		(0.61	)
Net realized gains		(0.08	)		(0.24	)		—	(b)		(0.45	)		(1.34	)
Total distributions		(0.31	)		(0.71	)		(0.44	)		(1.01	)		(1.95	)
Redemption fees		—			—			—	(b)		—	(b)		—
Net asset value, end of period	$	—		$	15.52		$	14.16		$	14.19		$	15.17
Total Return (c)		–11.86	%(d)		14.69	%		2.85	%		0.36	%		10.35	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	—		$	3,831		$	2,443		$	3,549		$	4,779
Ratios to average net assets:
Net expenses		0.98	%		1.00	%		1.00	%		1.05	%		1.13	%
Gross expenses		4.06	%		4.67	%		5.25	%		4.97	%		3.79	%
Net investment income (loss)		2.22	%		2.12	%		1.56	%		1.74	%		2.04	%
Portfolio turnover rate		91	%		82	%		38	%		56	%		84	%

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

230  Annual Report

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18*			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	15.50		$	14.14		$	14.18		$	15.16		$	15.48
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.28			0.26			0.19			0.23			0.29
Net realized and unrealized gain (loss)		(15.47	)		1.76			0.16			(0.24	)		1.29
Total from investment operations		(15.19	)		2.02			0.35			(0.01	)		1.58
Less distributions from:
Net investment income		(0.23	)		(0.42	)		(0.39	)		(0.52	)		(0.56	)
Net realized gains		(0.08	)		(0.24	)		—	(b)		(0.45	)		(1.34	)
Total distributions		(0.31	)		(0.66	)		(0.39	)		(0.97	)		(1.90	)
Net asset value, end of period	$	—		$	15.50		$	14.14		$	14.18		$	15.16
Total Return (c)		–12.14	%(d)		14.36	%		2.47	%		0.06	%		10.05	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	—		$	1,363		$	1,560		$	1,820		$	2,016
Ratios to average net assets:
Net expenses		1.28	%		1.30	%		1.30	%		1.35	%		1.43	%
Gross expenses		4.94	%		5.62	%		5.96	%		5.55	%		4.26	%
Net investment income (loss)		1.93	%		1.69	%		1.28	%		1.47	%		1.76	%
Portfolio turnover rate		91	%		82	%		38	%		56	%		84	%

* The Portfolio was liquidated on December 31, 2018.

(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 DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.

(d) Based upon December 31, 2018 net asset value effective prior to redemptions.

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

Annual Report  231

LAZARD GLOBAL STRATEGIC EQUITY PORTFOLIO

Selected data for a share													For the Period
of capital stock outstanding	Year Ended												8/29/14*
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			to 12/31/14
Institutional Shares
Net asset value, beginning of period	$	2.31		$	9.59		$	9.67		$	9.94			$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.01			0.08			0.07			0.06				—	(b)
Net realized and unrealized gain (loss)		(0.18	)		2.24			(0.08	)		(0.25	)			(0.04	)
Total from investment operations		(0.17	)		2.32			(0.01	)		(0.19	)			(0.04	)
Less distributions from:
Net investment income		(0.01	)		(0.20	)		(0.07	)		(0.08	)			(0.02	)
Net realized gains		(0.49	)		(9.40	)		—			—				—
Return of capital		—			—			—			—				—	(b)
Total distributions		(0.50	)		(9.60	)		(0.07	)		(0.08	)			(0.02	)
Net asset value, end of period	$	1.64		$	2.31		$	9.59		$	9.67			$	9.94
Total Return (c)		–9.16	%		24.20	%		–0.15	%		–1.85	%			–0.36	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,505		$	2,750		$	19,816		$	9,254			$	7,112
Ratios to average net assets (d):
Net expenses		1.05	%		1.10	%		1.10	%		1.10	%			1.10	%
Gross expenses		6.41	%		2.06	%		2.03	%		3.83	%			7.11	%
Net investment income (loss)		0.60	%		0.76	%		0.76	%		0.63	%			–0.08	%
Portfolio turnover rate		46	%		65	%		67	%		65	%			24	%

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

232  Annual Report

Selected data for a share													For the Period
of capital stock outstanding	Year Ended												8/29/14*
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			to 12/31/14
Open Shares
Net asset value, beginning of period	$	2.30		$	9.59		$	9.67		$	9.94			$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.01			0.03			0.04			0.03				(0.01	)
Net realized and unrealized gain (loss)		(0.19	)		2.25			(0.08	)		(0.25	)			(0.04	)
Total from investment operations		(0.18	)		2.28			(0.04	)		(0.22	)			(0.05	)
Less distributions from:
Net investment income		—	(b)		(0.17	)		(0.04	)		(0.05	)			(0.01	)
Net realized gains		(0.49	)		(9.40	)		—			—				—
Return of capital		—			—			—			—				—	(b)
Total distributions		(0.49	)		(9.57	)		(0.04	)		(0.05	)			(0.01	)
Net asset value, end of period	$	1.63		$	2.30		$	9.59		$	9.67			$	9.94
Total Return (c)		–9.39	%		23.72	%		–0.45	%		–2.16	%			–0.46	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	131		$	149		$	114		$	114			$	135
Ratios to average net assets (d):
Net expenses		1.35	%		1.41	%		1.40	%		1.40	%			1.40	%
Gross expenses		14.05	%		12.33	%		13.31	%		14.12	%			24.52	%
Net investment income (loss)		0.29	%		0.34	%		0.39	%		0.30	%			–0.32	%
Portfolio turnover rate		46	%		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 DST; 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  233

LAZARD INTERNATIONAL COMPOUNDERS PORTFOLIO

Selected data for a share	Period
of capital stock outstanding	Ended
throughout the period	12/31/18*
Institutional Shares
Net asset value, beginning of period		$	10.00
Income (Loss) from investment operations:
Net investment income (loss)			—
Net realized and unrealized gain (loss)			(0.02	)
Total from investment operations			(0.02	)
Net asset value, end of period		$	9.98
Total Return (a)			–0.20	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	149
Ratios to average net assets (b):
Net expenses			0.00	%
Gross expenses			8.45	%
Net investment income (loss)			0.00	%
Portfolio turnover rate			0	%

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

234  Annual Report

Selected data for a share	Period
of capital stock outstanding	Ended
throughout the period	12/31/18*
Open Shares
Net asset value, beginning of period		$	10.00
Income (Loss) from investment operations:
Net investment income (loss)			—
Net realized and unrealized gain (loss)			—	(c)
Total from investment operations			—	(c)
Net asset value, end of period		$	10.00
Total Return (a)			0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	1
Ratios to average net assets (b):
Net expenses			0.00	%
Gross expenses			0.40	%
Net investment income (loss)			0.00	%
Portfolio turnover rate			0	%

* The Portfolio commenced operations on December 31, 2018.

(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 DST; 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.

(b) Annualized for a period of less than one year except for non-recurring expenses.

(c) Amount is less than $0.01 per share.

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

Annual Report  235

LAZARD INTERNATIONAL EQUITY ADVANTAGE PORTFOLIO

Selected data for a share										For the Period
of capital stock outstanding	Year Ended									5/29/15* to
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15
Institutional Shares
Net asset value, beginning of period	$	10.92		$	8.91		$	9.21			$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.24			0.19			0.18				0.04
Net realized and unrealized gain (loss)		(2.01	)		2.03			(0.28	)			(0.70	)
Total from investment operations		(1.77	)		2.22			(0.10	)			(0.66	)
Less distributions from:
Net investment income		(0.33	)		(0.21	)		(0.20	)			(0.13	)
Net realized gains		(0.12	)		—			—				—
Total distributions		(0.45	)		(0.21	)		(0.20	)			(0.13	)
Net asset value, end of period	$	8.70		$	10.92		$	8.91			$	9.21
Total Return (b)		–16.26	%		24.98	%		–1.13	%			–6.63	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,051		$	2,508		$	1,969			$	1,797
Ratios to average net assets (c):
Net expenses		0.90	%		0.90	%		0.90	%			0.90	%
Gross expenses		7.60	%		8.91	%		13.12	%			14.93	%
Net investment income (loss)		2.29	%		1.89	%		2.08	%			0.77	%
Portfolio turnover rate		72	%		88	%		92	%			58	%

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

236  Annual Report

Selected data for a share										For the Period
of capital stock outstanding	Year Ended									5/29/15* to
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15
Open Shares
Net asset value, beginning of period	$	10.92		$	8.91		$	9.21			$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.21			0.16			0.15				0.03
Net realized and unrealized gain (loss)		(2.01	)		2.03			(0.28	)			(0.71	)
Total from investment operations		(1.80	)		2.19			(0.13	)			(0.68	)
Less distributions from:
Net investment income		(0.30	)		(0.18	)		(0.17	)			(0.11	)
Net realized gains		(0.12	)		—			—				—
Total distributions		(0.42	)		(0.18	)		(0.17	)			(0.11	)
Net asset value, end of period	$	8.70		$	10.92		$	8.91			$	9.21
Total Return (b)		–16.52	%		24.60	%		–1.42	%			–6.80	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	97		$	116		$	93			$	93
Ratios to average net assets (c):
Net expenses		1.20	%		1.20	%		1.20	%			1.20	%
Gross expenses		17.67	%		20.85	%		25.85	%			30.10	%
Net investment income (loss)		1.99	%		1.58	%		1.74	%			0.47	%
Portfolio turnover rate		72	%		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 DST; 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  237

LAZARD INTERNATIONAL EQUITY CONCENTRATED PORTFOLIO

Selected data for a share													For the Period
of capital stock outstanding	Year Ended												8/29/14*
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			to 12/31/14
Institutional Shares
Net asset value, beginning of period	$	10.43		$	8.54		$	8.27		$	9.53			$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.14			0.13			0.14			0.10				(0.01	)
Net realized and unrealized gain (loss)		(1.84	)		1.86			0.25			(1.25	)			(0.45	)
Total from investment operations		(1.70	)		1.99			0.39			(1.15	)			(0.46	)
Less distributions from:
Net investment income		(0.17	)		(0.10	)		(0.12	)		(0.11	)			(0.01	)
Net realized gains		(0.22	)		—			—			—				—	(b)
Total distributions		(0.39	)		(0.10	)		(0.12	)		(0.11	)			(0.01	)
Redemption fees		—			—			—			—	(b)			—
Net asset value, end of period	$	8.34		$	10.43		$	8.54		$	8.27			$	9.53
Total Return (c)		–16.20	%		23.29	%		4.74	%		–12.06	%			–4.60	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	49,105		$	69,440		$	15,473		$	13,753			$	9,103
Ratios to average net assets (d):
Net expenses		1.00	%		1.05	%		1.05	%		1.06	%			1.15	%
Gross expenses		1.13	%		1.34	%		2.29	%		2.96	%			7.40	%
Net investment income (loss)		1.45	%		1.35	%		1.64	%		1.13	%			–0.41	%
Portfolio turnover rate		76	%		81	%		92	%		91	%			45	%

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

238  Annual Report

Selected data for a share													For the Period
of capital stock outstanding	Year Ended												8/29/14*
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			to 12/31/14
Open Shares
Net asset value, beginning of period	$	10.45		$	8.56		$	8.29		$	9.53			$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.09			0.10			0.11			0.06				(0.02	)
Net realized and unrealized gain (loss)		(1.82	)		1.86			0.26			(1.22	)			(0.45	)
Total from investment operations		(1.73	)		1.96			0.37			(1.16	)			(0.47	)
Less distributions from:
Net investment income		(0.15	)		(0.07	)		(0.10	)		(0.08	)			—
Net realized gains		(0.22	)		—			—			—				—	(b)
Total distributions		(0.37	)		(0.07	)		(0.10	)		(0.08	)			—	(b)
Redemption fees		—			—			—			—	(b)			—
Net asset value, end of period	$	8.35		$	10.45		$	8.56		$	8.29			$	9.53
Total Return (c)		–16.47	%		22.87	%		4.41	%		–12.18	%			–4.66	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	399		$	220		$	114		$	55			$	559
Ratios to average net assets (d):
Net expenses		1.29	%		1.35	%		1.35	%		1.39	%			1.45	%
Gross expenses		5.24	%		8.15	%		11.98	%		9.93	%			12.39	%
Net investment income (loss)		0.96	%		1.04	%		1.32	%		0.60	%			–0.55	%
Portfolio turnover rate		76	%		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 DST; 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  239

LAZARD INTERNATIONAL EQUITY PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	19.61		$	16.20		$	17.08		$	16.93		$	17.85
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.37			0.26			0.27	^		0.27			0.26
Net realized and unrealized gain (loss)		(3.06	)		3.43			(0.98	)		—			(1.02	)
Total from investment operations		(2.69	)		3.69			(0.71	)		0.27			(0.76	)
Less distributions from:
Net investment income		(0.42	)		(0.28	)		(0.17	)		(0.12	)		(0.16	)
Net realized gains		(0.82	)		—			—			—			—
Total distributions		(1.24	)		(0.28	)		(0.17	)		(0.12	)		(0.16	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	15.68		$	19.61		$	16.20		$	17.08		$	16.93
Total Return (c)		–13.61	%#		22.81	%		–4.18	%^		1.62	%		–4.29	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,102,735		$	2,835,262		$	1,511,516		$	736,272		$	378,488
Ratios to average net assets:
Net expenses		0.81	%		0.81	%		0.82	%^		0.86	%		0.90	%
Gross expenses		0.81	%		0.81	%		0.84	%		0.87	%		0.90	%
Net investment income (loss)		1.94	%		1.44	%		1.62	%^		1.50	%		1.46	%
Portfolio turnover rate		36	%		31	%		25	%		30	%		36	%

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

240  Annual Report

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	19.83		$	16.38		$	17.23		$	17.07		$	18.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.32			0.30			0.13	^		0.23			0.27
Net realized and unrealized gain (loss)		(3.08	)		3.38			(0.90	)		—			(1.09	)
Total from investment operations		(2.76	)		3.68			(0.77	)		0.23			(0.82	)
Less distributions from:
Net investment income		(0.38	)		(0.23	)		(0.08	)		(0.07	)		(0.11	)
Net realized gains		(0.82	)		—			—			—			—
Total distributions		(1.20	)		(0.23	)		(0.08	)		(0.07	)		(0.11	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	15.87		$	19.83		$	16.38		$	17.23		$	17.07
Total Return (c)		–13.83	%#		22.50	%		–4.46	%^		1.36	%		–4.57	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	227,483		$	275,014		$	1,073,486		$	80,221		$	57,350
Ratios to average net assets:
Net expenses		1.06	%		1.06	%		1.07	%^		1.14	%		1.17	%
Gross expenses		1.06	%		1.06	%		1.10	%		1.14	%		1.17	%
Net investment income (loss)		1.67	%		1.69	%		0.80	%^		1.29	%		1.49	%
Portfolio turnover rate		36	%		31	%		25	%		30	%		36	%

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

Annual Report  241

Selected data for a share										For the Period
of capital stock outstanding	Year Ended									4/1/15* to
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15
R6 Shares
Net asset value, beginning of period	$	19.59		$	16.18		$	17.07		$	17.94
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.36			0.31			0.31	^		0.21
Net realized and unrealized gain (loss)		(3.05	)		3.38			(1.02	)		(0.95	)
Total from investment operations		(2.69	)		3.69			(0.71	)		(0.74	)
Less distributions from:
Net investment income		(0.42	)		(0.28	)		(0.18	)		(0.13	)
Net realized gains		(0.82	)		—			—			—
Total distributions		(1.24	)		(0.28	)		(0.18	)		(0.13	)
Net asset value, end of period	$	15.66		$	19.59		$	16.18		$	17.07
Total Return (c)		–13.62	%#		22.85	%		–4.17	%^		–4.10	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	106,516		$	693,744		$	79,119		$	49,387
Ratios to average net assets (d):
Net expenses		0.80	%		0.80	%		0.80	%^		0.80	%
Gross expenses		0.81	%		0.81	%		0.86	%		0.92	%
Net investment income (loss)		1.84	%		1.68	%		1.88	%^		1.55	%
Portfolio turnover rate		36	%		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.
#	The Portfolio received settlement proceeds from a foreign exchange trading class action lawsuit. The proceeds from the settlement represent a realized gain and were recorded in the period received. There was a 0.16%, 0.16% and 0.33% impact on the total return 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 DST; 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.

242  Annual Report

LAZARD INTERNATIONAL EQUITY SELECT PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	11.02		$	8.65		$	8.80		$	9.24		$	9.76
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.18			0.13			0.12			0.12			0.15
Net realized and unrealized gain (loss)		(1.82	)		2.31			(0.17	)		(0.46	)		(0.58	)
Total from investment operations		(1.64	)		2.44			(0.05	)		(0.34	)		(0.43	)
Less distributions from:
Net investment income		(0.25	)		(0.07	)		(0.10	)		(0.10	)		(0.11	)
Total distributions		(0.25	)		(0.07	)		(0.10	)		(0.10	)		(0.11	)
Redemption fees		—			—			—			—	(b)		0.02
Net asset value, end of period	$	9.13		$	11.02		$	8.65		$	8.80		$	9.24
Total Return (c)		–14.90	%		28.31	%		–0.63	%		–3.63	%		–4.29	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	74,582		$	53,929		$	28,299		$	18,757		$	12,749
Ratios to average net assets:
Net expenses		1.05	%		1.05	%		1.05	%		1.06	%		1.15	%
Gross expenses		1.05	%		1.31	%		1.79	%		2.13	%		2.10	%
Net investment income (loss)		1.73	%		1.27	%		1.36	%		1.25	%		1.54	%
Portfolio turnover rate		32	%		30	%		42	%		51	%		80	%

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

Annual Report  243

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	11.03		$	8.66		$	8.82		$	9.25		$	9.79
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.15			0.10			0.10			0.11			0.11
Net realized and unrealized gain (loss)		(1.82	)		2.31			(0.19	)		(0.47	)		(0.57	)
Total from investment operations		(1.67	)		2.41			(0.09	)		(0.36	)		(0.46	)
Less distributions from:
Net investment income		(0.19	)		(0.04	)		(0.07	)		(0.07	)		(0.08	)
Total distributions		(0.19	)		(0.04	)		(0.07	)		(0.07	)		(0.08	)
Redemption fees		—			—			—			—			—	(b)
Net asset value, end of period	$	9.17		$	11.03		$	8.66		$	8.82		$	9.25
Total Return (c)		–15.16	%		27.89	%		–1.03	%		–3.85	%		–4.76	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,502		$	2,831		$	2,092		$	2,184		$	3,048
Ratios to average net assets:
Net expenses		1.35	%		1.35	%		1.35	%		1.37	%		1.45	%
Gross expenses		1.83	%		2.07	%		2.59	%		2.75	%		2.70	%
Net investment income (loss)		1.42	%		1.01	%		1.13	%		1.15	%		1.11	%
Portfolio turnover rate		32	%		30	%		42	%		51	%		80	%

(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 DST; 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.

244  Annual Report

LAZARD INTERNATIONAL EQUITY VALUE PORTFOLIO

Selected data for a share	For the Period
of capital stock outstanding	10/31/18* to
throughout the period	12/31/18
Institutional Shares
Net asset value, beginning of period		$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)			0.01
Net realized and unrealized gain (loss)			(0.86	)
Total from investment operations			(0.85	)
Less distributions from:
Net investment income			(0.01	)
Total distributions			(0.01	)
Net asset value, end of period		$	9.14
Total Return (b)			–8.49	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	22,945
Ratios to average net assets (c):
Net expenses			0.95	%
Gross expenses			1.34	%
Net investment income (loss)			0.72	%
Portfolio turnover rate			37	%

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

Annual Report  245

Selected data for a share	For the Period
of capital stock outstanding	10/31/18* to
throughout the period	12/31/18
Open Shares
Net asset value, beginning of period		$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)			—	(d)
Net realized and unrealized gain (loss)			(0.86	)
Total from investment operations			(0.86	)
Less distributions from:
Net investment income			(0.01	)
Total distributions			(0.01	)
Net asset value, end of period		$	9.13
Total Return (b)			–8.63	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	38
Ratios to average net assets (c):
Net expenses			1.20	%
Gross expenses			7.91	%
Net investment income (loss)			0.03	%
Portfolio turnover rate			37	%

*	The Portfolio commenced operations on October 31, 2018.
(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 DST; 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.
(d)	Amount is less than $0.01 per share.

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

246  Annual Report

LAZARD INTERNATIONAL SMALL CAP EQUITY PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	13.79		$	10.10		$	10.90		$	10.01		$	10.54
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.12			0.10			0.12	^		0.10			0.12
Net realized and unrealized gain (loss)		(3.51	)		3.59			(0.62	)		0.87			(0.40	)
Total from investment operations		(3.39	)		3.69			(0.50	)		0.97			(0.28	)
Less distributions from:
Net investment income		(0.27	)		—			(0.30	)		(0.08	)		(0.25	)
Net realized gains		(0.18	)		—			—			—			—
Total distributions		(0.45	)		—			(0.30	)		(0.08	)		(0.25	)
Redemption fees		—			—			—			—	(b)		—	(b)
Net asset value, end of period	$	9.95		$	13.79		$	10.10		$	10.90		$	10.01
Total Return (c)		–24.88	%#		36.53	%		–4.64	%^		9.71	%		–2.77	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	35,121		$	41,267		$	37,049		$	51,828		$	46,329
Ratios to average net assets:
Net expenses		1.08	%		1.09	%		0.96	%^		1.11	%		1.13	%
Gross expenses		1.08	%		1.09	%		1.06	%		1.11	%		1.15	%
Net investment income (loss)		0.96	%		0.85	%		1.14	%^		0.91	%		1.13	%
Portfolio turnover rate		59	%		35	%		63	%		48	%		48	%

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

Annual Report  247

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	13.82		$	10.15		$	10.93		$	10.03		$	10.56
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.11			0.07			0.10	^		0.07			0.09
Net realized and unrealized gain (loss)		(3.54	)		3.60			(0.63	)		0.88			(0.40	)
Total from investment operations		(3.43	)		3.67			(0.53	)		0.95			(0.31	)
Less distributions from:
Net investment income		(0.24	)		—			(0.25	)		(0.05	)		(0.22	)
Net realized gains		(0.18	)		—			—			—			—
Total distributions		(0.42	)		—			(0.25	)		(0.05	)		(0.22	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	9.97		$	13.82		$	10.15		$	10.93		$	10.03
Total Return (c)		–25.09	%#		36.16	%		–4.92	%^		9.49	%		–3.05	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	20,265		$	42,362		$	44,523		$	55,776		$	19,994
Ratios to average net assets:
Net expenses		1.34	%		1.34	%		1.21	%^		1.38	%		1.43	%
Gross expenses		1.34	%		1.34	%		1.30	%		1.38	%		1.44	%
Net investment income (loss)		0.83	%		0.61	%		0.91	%^		0.63	%		0.85	%
Portfolio turnover rate		59	%		35	%		63	%		48	%		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 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.
#	The Portfolio received settlement proceeds from a foreign exchange trading class action lawsuit. The proceeds from the settlement represented a realized gain and were recorded in the period received. There was a 0.46% and 0.53% impact on the total return 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 DST; 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.

248  Annual Report

LAZARD INTERNATIONAL STRATEGIC EQUITY PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	15.70		$	12.44		$	13.33		$	13.72		$	14.46
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.21			0.17			0.20	^		0.16			0.19
Net realized and unrealized gain (loss)		(1.85	)		3.29			(0.89	)		(0.40	)		(0.39	)
Total from investment operations		(1.64	)		3.46			(0.69	)		(0.24	)		(0.20	)
Less distributions from:
Net investment income		(0.21	)		(0.20	)		(0.20	)		(0.14	)		(0.16	)
Net realized gains		(0.96	)		—			—			(0.01	)		(0.38	)
Total distributions		(1.17	)		(0.20	)		(0.20	)		(0.15	)		(0.54	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	12.89		$	15.70		$	12.44		$	13.33		$	13.72
Total Return (c)		–10.35	%		27.85	%		–5.17	%^		–1.70	%		–1.48	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	4,630,334		$	5,911,184		$	5,114,357		$	4,923,328		$	3,727,391
Ratios to average net assets:
Net expenses		0.80	%		0.80	%		0.81	%^		0.82	%		0.84	%
Gross expenses		0.80	%		0.80	%		0.81	%		0.82	%		0.84	%
Net investment income (loss)		1.36	%		1.20	%		1.56	%^		1.15	%		1.28	%
Portfolio turnover rate		40	%		44	%		47	%		37	%		33	%

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

Annual Report  249

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	15.83		$	12.55		$	13.44		$	13.82		$	14.57
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.17			0.14			0.18	^		0.13			0.16
Net realized and unrealized gain (loss)		(1.86	)		3.30			(0.90	)		(0.40	)		(0.41	)
Total from investment operations		(1.69	)		3.44			(0.72	)		(0.27	)		(0.25	)
Less distributions from:
Net investment income		(0.17	)		(0.16	)		(0.17	)		(0.10	)		(0.12	)
Net realized gains		(0.96	)		—			—			(0.01	)		(0.38	)
Total distributions		(1.13	)		(0.16	)		(0.17	)		(0.11	)		(0.50	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	13.01		$	15.83		$	12.55		$	13.44		$	13.82
Total Return (c)		–10.55	%		27.44	%		–5.37	%^		–1.89	%		–1.78	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	832,548		$	1,216,861		$	1,591,016		$	1,783,529		$	1,574,106
Ratios to average net assets:
Net expenses		1.05	%		1.06	%		1.06	%^		1.08	%		1.09	%
Gross expenses		1.05	%		1.06	%		1.06	%		1.08	%		1.09	%
Net investment income (loss)		1.10	%		0.97	%		1.34	%^		0.94	%		1.06	%
Portfolio turnover rate		40	%		44	%		47	%		37	%		33	%

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

250  Annual Report

Selected data for a share										For the Period
of capital stock outstanding	Year Ended									1/19/15* to
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15
R6 Shares
Net asset value, beginning of period	$	15.71		$	12.45		$	13.34		$	13.70
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.21			0.16			0.19	^		(0.03	)
Net realized and unrealized gain (loss)		(1.85	)		3.30			(0.88	)		(0.21	)
Total from investment operations		(1.64	)		3.46			(0.69	)		(0.24	)
Less distributions from:
Net investment income		(0.21	)		(0.20	)		(0.20	)		(0.11	)
Net realized gains		(0.96	)		—			—			(0.01	)
Total distributions		(1.17	)		(0.20	)		(0.20	)		(0.12	)
Redemption fees		—			—			—	(b)		—
Net asset value, end of period	$	12.90		$	15.71		$	12.45		$	13.34
Total Return (c)		–10.35	%		27.82	%		–5.17	%^		–1.73	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	97,394		$	110,383		$	96,284		$	72,362
Ratios to average net assets (d):
Net expenses		0.80	%		0.80	%		0.81	%^		1.03	%
Gross expenses		0.81	%		0.82	%		0.82	%		1.09	%
Net investment income (loss)		1.34	%		1.15	%		1.46	%^		–0.22	%
Portfolio turnover rate		40	%		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 Investment Manager, State Street or DST; 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  251

LAZARD MANAGED EQUITY VOLATILITY PORTFOLIO

Selected data for a share										For the Period
of capital stock outstanding	Year Ended									5/29/15* to
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15
Institutional Shares
Net asset value, beginning of period	$	11.57		$	9.99		$	9.59		$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.19			0.19			0.18			0.09
Net realized and unrealized gain (loss)		(1.03	)		1.87			0.44			(0.33	)
Total from investment operations		(0.84	)		2.06			0.62			(0.24	)
Less distributions from:
Net investment income		(0.16	)		(0.17	)		(0.22	)		(0.17	)
Net realized gains		(0.02	)		(0.31	)		—			—
Total distributions		(0.18	)		(0.48	)		(0.22	)		(0.17	)
Net asset value, end of period	$	10.55		$	11.57		$	9.99		$	9.59
Total Return (b)		–7.21	%		20.57	%		6.45	%		–2.42	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	20,709		$	4,180		$	2,431		$	2,206
Ratios to average net assets (c):
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%
Gross expenses		1.64	%		6.51	%		10.42	%		13.51	%
Net investment income (loss)		1.66	%		1.71	%		1.82	%		1.64	%
Portfolio turnover rate		122	%		87	%		91	%		56	%

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

252  Annual Report

Selected data for a share										For the Period
of capital stock outstanding	Year Ended									5/29/15* to
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15
Open Shares
Net asset value, beginning of period	$	11.56		$	9.99		$	9.59		$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.15			0.16			0.15			0.08
Net realized and unrealized gain (loss)		(1.02	)		1.85			0.44			(0.34	)
Total from investment operations		(0.87	)		2.01			0.59			(0.26	)
Less distributions from:
Net investment income		(0.13	)		(0.13	)		(0.19	)		(0.15	)
Net realized gains		(0.02	)		(0.31	)		—			—
Total distributions		(0.15	)		(0.44	)		(0.19	)		(0.15	)
Net asset value, end of period	$	10.54		$	11.56		$	9.99		$	9.59
Total Return (b)		–7.50	%		20.11	%		6.14	%		–2.60	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	183		$	315		$	172		$	175
Ratios to average net assets (c):
Net expenses		1.05	%		1.05	%		1.05	%		1.05	%
Gross expenses		5.86	%		12.07	%		17.27	%		23.94	%
Net investment income (loss)		1.28	%		1.42	%		1.52	%		1.33	%
Portfolio turnover rate		122	%		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 DST; 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  253

LAZARD US EQUITY CONCENTRATED PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	15.31		$	14.16		$	13.83		$	13.41		$	12.59
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.18			0.14			0.06	^		0.05			0.11
Net realized and unrealized gain (loss)		(1.11	)		2.05			0.97			0.88			2.23
Total from investment operations		(0.93	)		2.19			1.03			0.93			2.34
Less distributions from:
Net investment income		(0.20	)		(0.14	)		(0.05	)		(0.04	)		(0.09	)
Net realized gains		(1.29	)		(0.90	)		(0.65	)		(0.47	)		(1.43	)
Total distributions		(1.49	)		(1.04	)		(0.70	)		(0.51	)		(1.52	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	12.89		$	15.31		$	14.16		$	13.83		$	13.41
Total Return (c)		–6.07	%		15.49	%		7.37	%^		7.00	%		18.88	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,040,851		$	1,508,581		$	1,230,377		$	715,766		$	331,074
Ratios to average net assets:
Net expenses		0.75	%		0.75	%		0.77	%^		0.79	%		0.81	%
Gross expenses		0.75	%		0.75	%		0.77	%		0.79	%		0.81	%
Net investment income (loss)		1.14	%		0.90	%		0.39	%^		0.36	%		0.79	%
Portfolio turnover rate		69	%		86	%		84	%		74	%		63	%

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

254  Annual Report

Selected data for a share of capital stock outstanding throughout each period	Year Ended
	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	15.42		$	14.25		$	13.92		$	13.50		$	12.68
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.13			0.10			0.02	^		0.01			0.05
Net realized and unrealized gain (loss)		(1.11	)		2.07			0.97			0.88			2.23
Total from investment operations		(0.98	)		2.17			0.99			0.89			2.28
Less distributions from:
Net investment income		(0.16	)		(0.10	)		(0.01	)		—	(b)		(0.03	)
Net realized gains		(1.29	)		(0.90	)		(0.65	)		(0.47	)		(1.43	)
Total distributions		(1.45	)		(1.00	)		(0.66	)		(0.47	)		(1.46	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	12.99		$	15.42		$	14.25		$	13.92		$	13.50
Total Return (c)		–6.35	%		15.22	%		7.06	%^		6.67	%		18.28	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	50,981		$	87,603		$	105,619		$	114,348		$	8,011
Ratios to average net assets:
Net expenses		1.03	%		1.03	%		1.03	%^		1.07	%		1.25	%
Gross expenses		1.03	%		1.03	%		1.03	%		1.07	%		1.46	%
Net investment income (loss)		0.85	%		0.62	%		0.17	%^		0.08	%		0.37	%
Portfolio turnover rate		69	%		86	%		84	%		74	%		63	%

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

Annual Report  255

Selected data for a share of capital stock outstanding throughout each period	Year Ended						For the Period 11/15/16* to
	12/31/18			12/31/17			12/31/16
R6 Shares
Net asset value, beginning of period	$	15.34		$	14.18		$	14.77
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.17			0.14			—	(b)^
Net realized and unrealized gain (loss)		(1.10	)		2.06			0.03
Total from investment operations		(0.93	)		2.20			0.03
Less distributions from:
Net investment income		(0.20	)		(0.14	)		(0.03	)
Net realized gains		(1.29	)		(0.90	)		(0.59	)
Total distributions		(1.49	)		(1.04	)		(0.62	)
Net asset value, end of period	$	12.92		$	15.34		$	14.18
Total Return (c)		–6.08	%		15.52	%		0.17	%^
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,900		$	361		$	140
Ratios to average net assets (d):
Net expenses		0.75	%		0.75	%		0.77	%^
Gross expenses		2.16	%		8.34	%		15.38	%
Net investment income (loss)		1.15	%		0.91	%		0.19	%^
Portfolio turnover rate		69	%		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 DST; 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.

256  Annual Report

LAZARD US EQUITY SELECT PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended
	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	12.43		$	11.63		$	10.97		$	12.43		$	12.49
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.14			0.14			0.12			0.09			0.14
Net realized and unrealized gain (loss)		(0.55	)		1.94			0.94			(0.69	)		1.73
Total from investment operations		(0.41	)		2.08			1.06			(0.60	)		1.87
Less distributions from:
Net investment income		(0.29	)		(0.21	)		(0.10	)		(0.10	)		(0.13	)
Net realized gains		(1.50	)		(1.07	)		(0.30	)		(0.76	)		(1.80	)
Total distributions		(1.79	)		(1.28	)		(0.40	)		(0.86	)		(1.93	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	10.23		$	12.43		$	11.63		$	10.97		$	12.43
Total Return (c)		–3.12	%		18.17	%		9.70	%		–4.75	%		15.04	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	60,629		$	72,958		$	72,151		$	110,243		$	119,941
Ratios to average net assets:
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Gross expenses		0.92	%		0.95	%		0.94	%		0.90	%		0.90	%
Net investment income (loss)		1.10	%		1.10	%		1.08	%		0.77	%		1.05	%
Portfolio turnover rate		62	%		74	%		68	%		75	%		69	%

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

Annual Report  257

Selected data for a share of capital stock outstanding throughout each period	Year Ended
	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	12.48		$	11.68		$	11.01		$	12.48		$	12.53
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.10			0.10			0.09			0.06			0.10
Net realized and unrealized gain (loss)		(0.54	)		1.94			0.94			(0.71	)		1.74
Total from investment operations		(0.44	)		2.04			1.03			(0.65	)		1.84
Less distributions from:
Net investment income		(0.26	)		(0.17	)		(0.06	)		(0.06	)		(0.09	)
Net realized gains		(1.50	)		(1.07	)		(0.30	)		(0.76	)		(1.80	)
Total distributions		(1.76	)		(1.24	)		(0.36	)		(0.82	)		(1.89	)
Net asset value, end of period	$	10.28		$	12.48		$	11.68		$	11.01		$	12.48
Total Return (c)		–3.40	%		17.75	%		9.46	%		–5.11	%		14.77	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	881		$	1,013		$	1,376		$	1,536		$	6,833
Ratios to average net assets:
Net expenses		1.05	%		1.05	%		1.05	%		1.05	%		1.05	%
Gross expenses		2.33	%		2.30	%		2.13	%		1.51	%		1.31	%
Net investment income (loss)		0.80	%		0.79	%		0.80	%		0.50	%		0.75	%
Portfolio turnover rate		62	%		74	%		68	%		75	%		69	%

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

258  Annual Report

Selected data for a share													For the Period
of capital stock outstanding	Year Ended												5/19/14*
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			to 12/31/14
R6 Shares
Net asset value, beginning of period	$	12.43		$	11.63		$	10.96		$	12.43		$	12.81
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.14			0.14			0.14			0.10			0.09
Net realized and unrealized gain (loss)		(0.55	)		1.94			0.93			(0.71	)		1.47
Total from investment operations		(0.41	)		2.08			1.07			(0.61	)		1.56
Less distributions from:
Net investment income		(0.29	)		(0.21	)		(0.10	)		(0.10	)		(0.14	)
Net realized gains		(1.50	)		(1.07	)		(0.30	)		(0.76	)		(1.80	)
Total distributions		(1.79	)		(1.28	)		(0.40	)		(0.86	)		(1.94	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	10.23		$	12.43		$	11.63		$	10.96		$	12.43
Total Return (c)		–3.13	%		18.16	%		9.81	%		–4.78	%		12.23	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	10,056		$	11,394		$	13,297		$	12,359		$	14,951
Ratios to average net assets (d):
Net expenses		0.75	%		0.75	%		0.74	%		0.70	%		0.70	%
Gross expenses		1.01	%		1.05	%		1.02	%		1.00	%		1.06	%
Net investment income (loss)		1.10	%		1.12	%		1.27	%		0.82	%		1.14	%
Portfolio turnover rate		62	%		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 DST; 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  259

LAZARD US REALTY EQUITY PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	18.85		$	19.37		$	18.93		$	19.71		$	16.05
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.28			0.31			0.29			0.33			0.28
Net realized and unrealized gain (loss)		(1.74	)		1.18			0.72			0.55			3.85
Total from investment operations		(1.46	)		1.49			1.01			0.88			4.13
Less distributions from:
Net investment income		(0.32	)		(0.37	)		(0.31	)		(0.38	)		(0.20	)
Net realized gains		(0.38	)		(1.64	)		(0.26	)		(1.28	)		(0.27	)
Total distributions		(0.70	)		(2.01	)		(0.57	)		(1.66	)		(0.47	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	16.69		$	18.85		$	19.37		$	18.93		$	19.71
Total Return (c)		–7.77	%		7.93	%		5.31	%		4.63	%		25.70	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	15,715		$	18,724		$	19,625		$	21,143		$	21,806
Ratios to average net assets:
Net expenses		1.00	%		1.02	%		1.05	%		1.05	%		1.05	%
Gross expenses		1.09	%		1.09	%		1.12	%		1.09	%		1.18	%
Net investment income (loss)		1.56	%		1.55	%		1.50	%		1.64	%		1.50	%
Portfolio turnover rate		52	%		32	%		41	%		51	%		43	%

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

260  Annual Report

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	18.94		$	19.44		$	19.00		$	19.78		$	16.11
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.23			0.25			0.23			0.26			0.19
Net realized and unrealized gain (loss)		(1.75	)		1.20			0.72			0.56			3.90
Total from investment operations		(1.52	)		1.45			0.95			0.82			4.09
Less distributions from:
Net investment income		(0.27	)		(0.31	)		(0.25	)		(0.32	)		(0.15	)
Net realized gains		(0.38	)		(1.64	)		(0.26	)		(1.28	)		(0.27	)
Total distributions		(0.65	)		(1.95	)		(0.51	)		(1.60	)		(0.42	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	16.77		$	18.94		$	19.44		$	19.00		$	19.78
Total Return (c)		–8.06	%		7.69	%		4.99	%		4.34	%		25.33	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	43,946		$	47,811		$	59,307		$	75,907		$	88,897
Ratios to average net assets:
Net expenses		1.29	%		1.30	%		1.34	%		1.32	%		1.35	%
Gross expenses		1.29	%		1.30	%		1.34	%		1.32	%		1.42	%
Net investment income (loss)		1.27	%		1.24	%		1.17	%		1.32	%		1.01	%
Portfolio turnover rate		52	%		32	%		41	%		51	%		43	%

(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 DST; 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  261

LAZARD US SMALL-MID CAP EQUITY PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	14.65		$	14.50		$	12.86		$	14.05		$	15.97
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.05			0.06			0.11	^		0.02			0.03
Net realized and unrealized gain (loss)		(2.00	)		1.95			1.96			(0.34	)		1.74
Total from investment operations		(1.95	)		2.01			2.07			(0.32	)		1.77
Less distributions from:
Net investment income		(0.04	)		(0.09	)		(0.09	)		—	(b)		(0.01	)
Net realized gains		(1.83	)		(1.77	)		(0.34	)		(0.87	)		(3.68	)
Total distributions		(1.87	)		(1.86	)		(0.43	)		(0.87	)		(3.69	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	10.83		$	14.65		$	14.50		$	12.86		$	14.05
Total Return (c)		–13.27	%		14.12	%		16.28	%^		–2.14	%		11.39	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	113,677		$	176,975		$	189,593		$	171,152		$	157,742
Ratios to average net assets:
Net expenses		0.87	%		0.87	%		0.86	%^		0.91	%		0.86	%
Gross expenses		0.87	%		0.87	%		0.90	%		0.91	%		0.86	%
Net investment income (loss)		0.35	%		0.39	%		0.84	%^		0.13	%		0.17	%
Portfolio turnover rate		81	%		79	%		91	%		91	%		91	%

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

262  Annual Report

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	13.72		$	13.68		$	12.16		$	13.38		$	15.41
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.01			0.01			0.06	^		(0.02	)		(0.02	)
Net realized and unrealized gain (loss)		(1.87	)		1.84			1.85			(0.33	)		1.67
Total from investment operations		(1.86	)		1.85			1.91			(0.35	)		1.65
Less distributions from:
Net investment income		—	(b)		(0.04	)		(0.05	)		—	(b)		—
Net realized gains		(1.83	)		(1.77	)		(0.34	)		(0.87	)		(3.68	)
Total distributions		(1.83	)		(1.81	)		(0.39	)		(0.87	)		(3.68	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	10.03		$	13.72		$	13.68		$	12.16		$	13.38
Total Return (c)		–13.49	%		13.82	%		15.92	%^		–2.47	%		11.01	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	13,726		$	25,973		$	30,332		$	36,860		$	15,851
Ratios to average net assets:
Net expenses		1.18	%		1.17	%		1.16	%^		1.20	%		1.20	%
Gross expenses		1.18	%		1.17	%		1.20	%		1.20	%		1.20	%
Net investment income (loss)		0.04	%		0.09	%		0.51	%^		–0.13	%		–0.15	%
Portfolio turnover rate		81	%		79	%		91	%		91	%		91	%

^	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.

Annual Report  263

The Lazard Funds, Inc. Notes to Financial Statements
December 31, 2018

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. As of December 31, 2018, the Fund was comprised of thirty-three no-load portfolios (each referred to as a “Portfolio”). This report includes only the financial statements of Developing Markets Equity, Emerging Markets Core Equity, Emerging Markets Equity Advantage, Emerging Markets Equity Blend, Emerging Markets Equity, Equity Franchise, Global Equity Select, Global Listed Infrastructure, Global Realty Equity (liquidated on December 31, 2018), Global Strategic Equity, International Compounders, International Equity Advantage, International Equity Concentrated, International Equity, International Equity Select, International Equity Value, International Small Cap Equity, International Strategic Equity, Managed Equity Volatility, US Equity Concentrated, US Equity Select (formerly, US Strategic Equity), US Realty Equity and US Small-Mid Cap Equity Portfolios. The financial statements of the other ten Portfolios are presented separately.

The Portfolios, other than Equity Franchise, Global Realty Equity, International Equity Concentrated, International Equity Value, US Equity Concentrated and US 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 Portfolios’ Prospectus).

2. Significant Accounting Policies

The accompanying financial statements are presented in conformity with US Generally Accepted Accounting Principles (“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

264  Annual Report

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 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. 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.

Annual Report  265

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 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

266  Annual Report

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, some Portfolios have filed tax reclaims for previously withheld taxes on dividends earned in certain European Union 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 a Portfolio’s NAV per share.

(c) Foreign Currency Translation and Forward Currency Contracts—The accounting records of the Fund are maintained in US dollars. Portfolio securities and other assets and liabilities denominated in a foreign currency are translated daily into US dollars at the prevailing rates of exchange. Purchases and sales of securities, income receipts and expense payments are translated into US dollars at the prevailing exchange rates on the respective transaction dates.

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

Annual Report  267

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, 2018, the Global Listed Infrastructure 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, 2018, 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
Developing Markets Equity	$	42,311,826	$	81,496,065
Emerging Markets Core Equity		2,480,814		—
Emerging Markets Equity Blend		11,274,953		38,896,176
Emerging Markets Equity		95,082,877		676,889,120
Global Realty Equity		360,348		—
International Equity Value		525,300		—

268  Annual Report

During the year ended December 31, 2018, the following Portfolios utilized realized capital loss carryovers from previous years as follows:

Portfolio	Amounts
Developing Markets Equity	$	8,872,037
Emerging Markets Core Equity		8,534,158
Emerging Markets Equity Advantage		221,922
Emerging Markets Equity Blend		6,397,508
Emerging Markets Equity		121,602,254
International Equity Advantage		56,479
International Equity Concentrated		590,000
International Equity		61,750,127
International Equity Select		484,131
International Small Cap Equity		4,306,477
International Strategic Equity		118,775,721
US Realty Equity		233,007

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, 2018, the following Portfolios elected to defer such losses as follows:

Portfolio	Post-October Capital Loss Deferral		Late-Year Ordinary Loss Deferral
Emerging Markets Equity Advantage	$	66,380	$	—
Global Equity Select		330,136		—
Global Listed Infrastructure		5,706,036		—
International Equity Advantage		28,394		2,517
International Equity Concentrated		1,810,394		313
International Equity		41,680,902		—
International Equity Select		363,804		9,494
International Equity Value		—		1,770
International Strategic Equity		1,231,230		—
Managed Equity Volatility		261,488		—
US Equity Concentrated		14,024,506		—
US Equity Select		228,014		—
US Small-Mid Cap Equity		1,910,623		—

Annual Report  269

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)
Developing Markets Equity	$	228,411,525	$	19,546,668	$	29,768,038	$	(10,221,370	)
Emerging Markets Core Equity		222,075,191		10,916,637		21,891,084		(10,974,447	)
Emerging Markets Equity Advantage		3,279,324		403,548		282,044		121,504
Emerging Markets Equity Blend		331,681,502		19,352,769		53,231,792		(33,879,023	)
Emerging Markets Equity		9,117,017,604		1,128,108,335		1,406,072,181		(277,963,846	)
Equity Franchise		9,536,319		159,493		1,294,671		(1,135,178	)
Global Equity Select		63,698,239		6,552,853		3,772,212		2,780,641
Global Listed Infrastructure		5,678,593,930		160,481,505		543,389,888		(382,908,383	)
Global Realty Equity		4,321,682		—		—		—
Global Strategic Equity		2,615,149		226,306		193,460		32,846
International Compounders		129,053		45		340		(295	)
International Equity Advantage		2,421,243		76,979		310,054		(233,075	)
International Equity Concentrated		56,709,340		857,182		7,440,557		(6,583,375	)
International Equity		2,501,553,947		141,249,175		206,512,965		(65,263,790	)
International Equity Select		84,177,150		1,894,351		8,099,371		(6,205,020	)
International Equity Value		24,498,767		398,804		2,021,402		(1,622,598	)
International Small Cap Equity		61,909,332		3,024,154		10,074,825		(7,050,671	)
International Strategic Equity		5,576,739,716		411,145,862		442,871,437		(31,725,575	)
Managed Equity Volatility		22,398,750		451,946		1,621,719		(1,169,773	)
US Equity Concentrated		1,121,031,860		76,510,274		105,428,635		(28,918,361	)
US Equity Select		68,697,640		7,492,407		4,303,937		3,188,470
US Realty Equity		60,185,444		2,940,732		3,823,294		(882,562	)
US Small-Mid Cap Equity		136,966,384		6,767,141		17,259,699		(10,492,558	)

270  Annual Report

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. Each Portfolio files a US 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, except that the Global Listed Infrastructure Portfolio’s dividends from net investment income (if any), will be declared and paid quarterly. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Portfolios, if not distributed. The Portfolios intend to declare and distribute these amounts, at least annually, to shareholders; however, to avoid taxation, a second distribution may be required. Differences in per share distributions, by class, are generally due to differences in class specific expenses.

The Global Listed Infrastructure, International Small Cap Equity, International Strategic Equity, US Equity Concentrated, US Equity Select and US Small-Mid Cap Equity Portfolios intend, on their 2018 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 non-redeeming 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.

Annual Report  271

REIT distributions received by a Portfolio are generally comprised of ordinary income, long-term capital gains and a return of REIT capital. However, as the actual character of such distributions received are not known until after the calendar year end, distributions made by a Portfolio during the year are subject to re-characterization that may result in some portion of the distributions being reclassified as a return of capital distribution to Portfolio shareholders.

Income and capital gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These book/tax differences, which may result in distribution reclassifications, are primarily due to differing treatments of foreign currency transactions, wash sales, passive foreign investment companies, expiring capital loss carryovers, certain expenses, foreign capital gains taxes, distributions in excess of current earnings, equalization, non-REIT non-taxable dividend adjustment to income, distributions redesignations, adjustments in relation to merger, return of capital distributions 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			Distributable Earnings (Accumulated Loss)
Developing Markets Equity	$	(3,101	)	$	3,101
Emerging Markets Equity Advantage		(5,633	)		5,633
Emerging Markets Equity Blend		(64,378	)		64,378
Equity Franchise		(58	)		58
Global Equity Select		(55,707	)		55,707
Global Listed Infrastructure		26,353,123			(26,353,123	)
Global Realty Equity		(276,438	)		276,438
International Equity Advantage		(35	)		35
International Equity Concentrated		(5,112	)		5,112
International Equity Select		(1,173,332	)		1,173,332
International Equity Value		(210	)		210
International Small Cap Equity		535,986			(535,986	)
International Strategic Equity		49,054,329			(49,054,329	)
US Equity Concentrated		8,099,080			(8,099,080	)
US Equity Select		6,708			(6,708	)
US Realty Equity		229,043			(229,043	)
US Small-Mid Cap Equity		1,658,825			(1,658,825	)

272  Annual Report

In October 2018, the US Securities and Exchange Commission (the “SEC”) adopted amendments to certain disclosure requirements included in Regulation S-X that had become “redundant, duplicative, overlapping, outdated or superseded, in light of the other Commission disclosure requirements, GAAP or changes in the information environment.” The compliance date for the amendments to Regulation S-X was November 5, 2018 (for reporting period end dates of September 30, 2018 or after). The Fund adopted these amendments and such changes are reflected in these financial statements.

Under these amendments, it is no longer required to differentiate distributions from earnings as either net investment income or net realized capital gains or disclose a Portfolio’s undistributed net investment income within a Portfolio’s Statement of Changes in Net Assets. The presentation within the Portfolios’ Statement of Changes in Net Assets for the year ended December 31, 2017 also has been modified accordingly.

Below is the characterization of the Portfolio distributions and undistributed (distributions in excess of) net investment income (loss) for the year ended December 31, 2017 as previously disclosed in the Statement of Changes in Net Assets within the December 31, 2017 Annual Report:

From net investment income	Institutional Shares		Open Shares		R6 Shares
Developing Markets Equity	$	545,028	$	—	$	—
Emerging Markets Core Equity		1,586,481		6,719		—
Emerging Markets Equity Advantage		45,503		2,873		—
Emerging Markets Equity Blend		3,582,638		54,048		—
Emerging Markets Equity		226,996,334		25,915,499		7,709,553
Equity Franchise		14,403		211		—
Global Equity Select		405,342		3,136		—
Global Listed Infrastructure		75,970,334		11,527,674		—
Global Realty Equity		111,094		36,021		—
Global Strategic Equity		97,947		2,039		—
International Equity Advantage		48,334		1,892		—
International Equity Concentrated		638,073		1,420		—
International Equity		37,101,517		6,787,026		9,812,446
International Equity Select		326,389		10,427		—
International Strategic Equity		76,161,214		12,527,283		1,402,962

Annual Report  273

From net investment income	Institutional Shares		Open Shares		R6 Shares
Managed Equity Volatility	$	57,012	$	3,398	$	—
US Equity Concentrated		13,325,910		524,372		3,047
US Equity Select		1,164,831		13,451		177,827
US Realty Equity		336,557		725,168		—
US Small-Mid Cap Equity		929,922		68,349		—
From net realized gains	Institutional Shares		Open Shares		R6 Shares
Emerging Markets Equity Advantage	$	2,064	$	130	$	—
Equity Franchise		9,517		183		—
Global Equity Select		1,601,433		20,890		—
Global Listed Infrastructure		231,436,916		31,852,693		—
Global Realty Equity		56,514		20,280		—
Global Strategic Equity		2,232,754		115,380		—
Managed Equity Volatility		106,249		8,094		—
US Equity Concentrated		84,772,608		4,925,727		19,848
US Equity Select		5,946,380		83,683		910,164
US Realty Equity		1,528,874		3,951,112		—
US Small-Mid Cap Equity		19,496,066		3,090,224		—

Undistributed (Distributions in excess of) net investment income (loss)	Amount
Developing Markets Equity	$	(267,663	)
Emerging Markets Core Equity		(20,535	)
Emerging Markets Equity Advantage		(4,234	)
Emerging Markets Equity Blend		(704,294	)
Emerging Markets Equity		33,735,126
Equity Franchise		(907	)
Global Equity Select		(159,545	)
Global Listed Infrastructure		(39,276,021	)
Global Realty Equity		21,049
Global Strategic Equity		(36,625	)
International Equity Advantage		(3,505	)
International Equity Concentrated		(37,517	)
International Equity		12,884,788
International Equity Select		572,890
International Small Cap Equity		560,590
International Strategic Equity		(9,161,873	)
Managed Equity Volatility		(844	)
US Equity Concentrated		29,110
US Equity Select		—
US Realty Equity		—
US Small-Mid Cap Equity		(191,969	)

274  Annual Report

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2018		2017		2018		2017
Developing Markets Equity	$	1,841,559	$	545,028	$	—	$	—
Emerging Markets Core Equity		3,790,442		1,593,200		—		—
Emerging Markets Equity Advantage*		78,382		48,376		488		—
Emerging Markets Equity Blend		5,413,386		3,636,686		—		—
Emerging Markets Equity		185,398,646		260,621,386		—		—
Equity Franchise		809,383		24,314		48,488		—
Global Equity Select		670,326		444,442		1,373,108		1,586,359
Global Listed Infrastructure		273,617,078		88,165,301		412,876,525		262,622,316
Global Realty Equity		76,431		147,115		25,673		76,794
Global Strategic Equity		223,006		939,034		430,715		1,509,086
International Equity Advantage		78,886		50,226		27,980		—
International Equity Concentrated		1,942,491		639,493		460,712		—
International Equity		63,804,495		53,700,989		123,957,950		—
International Equity Select		1,887,553		336,816		37,977		—
International Equity Value		26,215		N/A		—		N/A
International Small Cap Equity		1,519,694		—		1,000,024		—
International Strategic Equity		80,890,347		90,091,459		386,368,003		—
Managed Equity Volatility		360,900		101,419		24,702		73,334
US Equity Concentrated		42,768,127		13,853,329		89,877,722		89,718,183
US Equity Select		1,529,090		2,270,214		9,619,133		6,026,122
US Realty Equity		827,749		1,164,385		1,584,317		5,377,326
US Small-Mid Cap Equity		5,545,244		6,630,713		14,372,817		16,953,848

* Emerging Markets Equity Advantage and Global Equity Select Portfolios had return of capital distributions of $5,637 and $55,706 in 2018 and $2,194 and $0 in 2017, respectively.

Annual Report  275

At December 31, 2018, the components of distributable earnings (accumulated loss), 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
Developing Markets Equity	$	692,659		$	(123,807,891	)	$	(10,246,469	)
Emerging Markets Core Equity		3,518			(2,480,814	)		(11,037,796	)
Emerging Markets Equity Advantage		—			(66,380	)		121,510
Emerging Markets Equity Blend		—			(50,171,129	)		(34,282,897	)
Emerging Markets Equity		76,104,267			(771,971,997	)		(315,639,811	)
Equity Franchise		108,966			—			(1,203,697	)
Global Equity Select		—			(330,136	)		2,768,617
Global Listed Infrastructure		73,480,874			(5,706,036	)		(382,935,882	)
Global Strategic Equity		—			16,223			(51	)
International Compounders		—			—			(295	)
International Equity Advantage		—			(30,911	)		(233,113	)
International Equity Concentrated		(313	)		(1,810,394	)		(6,618,882	)
International Equity		10,632,736			(41,680,902	)		(65,224,805	)
International Equity Select		—			(373,298	)		(6,207,929	)
International Equity Value		(1,770	)		(525,300	)		(1,628,991	)
International Small Cap Equity		233,994			1,291,846			(7,051,382	)
International Strategic Equity		10,110,720			(1,231,230	)		(31,769,311	)
Managed Equity Volatility		5,507			(261,488	)		(1,169,993	)
US Equity Concentrated		—			(14,024,506	)		(28,921,290	)
US Equity Select		—			(228,014	)		3,188,470
US Realty Equity		—			1,320,824			(882,561	)
US Small-Mid Cap Equity		—			(1,910,623	)		(10,492,558	)

(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 Com-

276  Annual Report

plex”), 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. 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.

Annual Report  277

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 each Portfolio’s average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:

Portfolio	Annual Rate
Developing Markets Equity		1.00	%
Emerging Markets Core Equity		1.00
Emerging Markets Equity Advantage		0.85
Emerging Markets Equity Blend		1.00
Emerging Markets Equity		1.00
Equity Franchise		0.80
Global Equity Select		0.80
Global Listed Infrastructure		0.90
Global Realty Equity (a)		0.80
Global Strategic Equity (a)		0.75
International Compounders		0.75
International Equity Advantage		0.65
International Equity Concentrated (a)		0.80
International Equity		0.75
International Equity Select		0.75
International Equity Value		0.80
International Small Cap Equity		0.75
International Strategic Equity		0.75
Managed Equity Volatility		0.60
US Equity Concentrated		0.70
US Equity Select (a)		0.65
US Realty Equity		0.75
US Small-Mid Cap Equity		0.75

(a) From January 1, 2018 to June 26, 2018, percentages were 0.85%, 0.85%, 0.90% and 0.70% for Global Realty Equity, Global Strategic Equity, International Equity Concentrated and US Equity Select Portfolios, respectively.

278  Annual Report

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 percentages of the value of the Portfolio’s average daily net assets set forth opposite the Portfolio’s name on table below. The Fund, on behalf of the Portfolio, may deduct from the payment to be made to the Investment Manager under the Management Agreement, or the Investment Manager will bear, such excess expense.

Portfolio	Institutional Shares			Open Shares			R6 Shares			Year
Developing Markets Equity		1.25	%		1.55	%		N/A			2019	(a)
Emerging Markets Core Equity		1.25			1.55			1.20	%		2019	(b)
Emerging Markets Equity Advantage		1.10			1.40			N/A			2019
Emerging Markets Equity Blend		1.25			1.55			N/A			2019	(a)
Emerging Markets Equity		1.20			1.50			1.15			2019	(b)
Equity Franchise		0.95			1.20			N/A			2019	(c)
Global Equity Select		1.05			1.35			N/A			2019
Global Listed Infrastructure		1.20			1.50			N/A			2028	(d)
Global Realty Equity		0.95			1.25			N/A			2019	(e)
Global Strategic Equity		1.00			1.30			N/A			2019	(f)
International Compounders		0.85			1.10			N/A			2020	(g)
International Equity Advantage		0.90			1.20			N/A			2019
International Equity Concentrated		0.95			1.25			N/A			2019	(h)
International Equity		0.85			1.15			0.80			2019
International Equity Select		1.05			1.35			N/A			2028	(i)
International Equity Value		0.95			1.20			N/A			2020	(j)
International Small Cap Equity		1.13			1.43			N/A			2019
International Strategic Equity		1.05			1.35			1.00			2019	(k)
Managed Equity Volatility		0.75			1.05			N/A			2019
US Equity Concentrated		0.90			1.20			0.85			2028	(l)
US Equity Select		0.75			1.05			0.75			2019
US Realty Equity		1.00			1.30			N/A			2028	(m)
US Small-Mid Cap Equity		1.15			1.45			N/A			2019

(a)	From January 1, 2018 to June 26, 2018, percentages were 1.30% and 1.60%, respectively.
(b)	From January 1, 2018 to June 26, 2018, percentages were 1.30%, 1.60% and 1.25%, respectively.
(c)	Agreement is until September 29, 2019.

Annual Report  279

(d)	Agreement is through May 1, 2028. From January 1, 2018 to June 26, 2018, percentages were 1.30% and 1.60%, respectively.
(e)	From January 1, 2018 to June 26, 2018, percentages were 1.00% and 1.30%, respectively.
(f)	From January 1, 2018 to June 26, 2018, percentages were 1.10% and 1.40%, respectively.
(g)	Agreement is until December 31, 2020.
(h)	From January 1, 2018 to June 26, 2018, percentages were 1.05% and 1.35%, respectively.
(i)	Agreement extends, from May 1, 2019 through May 1, 2028, at levels of 1.15% and 1.45%, respectively.
(j)	Agreement is until October 31, 2020.
(k)	From January 1, 2018 to June 26, 2018, percentages were 1.15%,1.45% and 1.10%, respectively.
(l)	Agreement extends, from May 1, 2019 through May 1, 2028, at levels of 1.10%, 1.40% and 1.05%, respectively. From January 1, 2018 to June 26, 2018, percentages were 0.95%, 1.25% and 0.90%, respectively.
(m)	Agreement is through May 1, 2028.

In addition, until May 1, 2019, to the extent the “Total Annual Fund Operating Expenses” (as used in Form N-1A) of the R6 Shares of a Portfolio exceed the Total Annual Fund Operating Expenses of the Portfolio’s Institutional Shares (in each case, not including management fees, custodial 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, 2018, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:

	Institutional Shares				Open Shares
Portfolio	Management Fees Waived		Expenses Reimbursed		Management Fees Waived		Expenses Reimbursed
Emerging Markets Core Equity	$	—	$	—	$	—	$	8,598
Emerging Markets Equity Advantage		32,459		139,163		4,072		27,979
Emerging Markets Equity Blend		—		—		—		215
Equity Franchise		63,402		129,223		1,424		11,524
Global Equity Select		22,052		—		6,345		5,163
Global Realty Equity		30,124		82,663		10,402		35,742
Global Strategic Equity		22,078		126,092		1,177		17,527
International Compounders		—		12,595		—		4
International Equity Advantage		15,698		146,029		723		17,602
International Equity Concentrated		88,657		—		2,482		9,239
International Equity Select		2,232		—		10,310		—
International Equity Value		31,986		17,982		72		609
Managed Equity Volatility		112,819		54,767		1,876		13,174
US Equity Select		123,978		—		6,707		6,026
US Realty Equity		—		13,590		—		—

280  Annual Report

	R6 Shares
Portfolio	Management Fees Waived		Expenses Reimbursed
Emerging Markets Core Equity	$	—	$	13,247
Emerging Markets Equity		—		440
International Equity		—		15,452
International Strategic Equity		—		19,420
US Equity Concentrated		—		11,740
US Equity Select		28,151		—

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 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

Annual Report  281

institutions, securities dealers and other industry professionals for providing these services.

DST is the Fund’s transfer and dividend disbursing agent. During the year ended December 31, 2018, DST waived $6,127 and $6,104 of its fees for the Emerging Markets Core Equity and Equity Franchise Portfolios, respectively.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2018, each Director who is not an affiliated person of the Investment Manager or any of its affiliates was paid by all of the funds in the Lazard Fund Complex: (1) an annual retainer of $225,000, (2) an additional annual fee of $32,500 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 $22,500 to the Audit Committee Chair. Effective January 1, 2019, the aggregate compensation for Independent Directors for the Lazard Fund Complex is comprised of: (1) an annual retainer of $232,000, (2) an additional annual fee of $33,000 to the lead Independent Director, and (3) an additional annual fee of $23,000 to the Audit Committee Chair. The Independent Directors may be paid additional compensation for participation on ad hoc committees or other work performed on behalf of the Board. The Independent Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Independent Directors’ fees are allocated among the funds in the Lazard Fund Complex at a rate of $5,000 per fund with the remainder allocated based upon each fund’s proportionate share of combined net assets. The Statements of Operations show the Independent Directors’ fees and expenses paid by each Portfolio.

282  Annual Report

5. Securities Transactions and Transactions with Affiliates

Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2018 were as follows:

Portfolio	Purchases		Sales
Developing Markets Equity	$	177,700,859	$	169,574,605
Emerging Markets Core Equity		113,849,161		77,995,241
Emerging Markets Equity Advantage		2,561,880		2,965,701
Emerging Markets Equity Blend		216,665,383		214,528,746
Emerging Markets Equity		1,731,497,590		3,525,653,805
Equity Franchise		11,008,557		7,442,807
Global Equity Select		33,332,911		21,713,807
Global Listed Infrastructure		3,200,079,865		2,444,124,959
Global Realty Equity		4,120,908		8,414,448
Global Strategic Equity		1,307,815		1,352,991
International Compounders		129,053		—
International Equity Advantage		1,880,950		1,830,773
International Equity Concentrated		51,562,006		57,125,321
International Equity		1,142,741,224		2,049,381,690
International Equity Select		55,147,627		23,406,231
International Equity Value		30,986,861		8,225,492
International Small Cap Equity		43,271,305		49,651,333
International Strategic Equity		2,545,379,330		3,336,846,197
Managed Equity Volatility		40,112,034		22,157,200
US Equity Concentrated		981,804,188		1,277,330,112
US Equity Select		50,477,440		59,266,973
US Realty Equity		31,284,418		51,587,665
US Small-Mid Cap Equity		144,795,475		194,257,304

For the year ended December 31, 2018, 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, 2018, the Investment Manager owned 62.64%, 57.98%, 92.55%, 100.00% and 89.90% of the outstanding shares of the Emerging Markets Equity Advantage, Equity Franchise, Global Strategic Equity, International Compounders and International Equity Advantage Portfolios, respectively.

Annual Report  283

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, 2018 were as follows:

Non-Controlled Affiliates	Number of Shares Held at December 31, 2017		Gross Additions		Gross Reductions			Number of Shares Held at December 31, 2018
Imperial Logistics, Ltd.		8,640,318		—		(1,448,844	)		7,191,474
Weichai Power Co., Ltd., Class H		142,098,288		—		(23,828,000	)		118,270,288

Non-Controlled Affiliates	Fair Value at December 31, 2018			Investment Income		Realized Gain (Loss)
Imperial Logistics, Ltd.		$	34,041,858	$	3,772,317	$	(11,620,614	)
Weichai Power Co., Ltd., Class H			134,116,483		7,640,978		(5,622,191	)
Total Affiliated Securities (Fair Value is 1.91% of Net Assets)		$	168,158,341	$	11,413,295	$	(17,242,805	)

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, 2018, the following Portfolios had borrowings under the Agreement as follows:

284  Annual Report

Portfolio	Average Daily Loan Balance*		Maximum Daily Loan Outstanding		Weighted Average Interest Rate			Number of Days Borrowings were Outstanding
Developing Markets Equity	$	1,581,500	$	4,980,000		3.23	%		10
Emerging Markets Core Equity		7,581,153		20,600,000		3.16			6
Emerging Markets Equity Advantage		47,143		77,000		2.62			7
Emerging Markets Equity		24,460,000		37,610,000		3.09			2
Equity Franchise		300,000		350,000		2.94			2
Global Listed Infrastructure		30,995,261		30,995,261		3.51			2
Global Realty Equity		80,000		80,000		2.90			4
Global Strategic Equity		22,556		111,000		2.57			9
International Equity Advantage		16,929		45,000		3.11			14
International Equity Concentrated		223,436		253,000		2.79			6
International Equity		8,038,480		15,900,000		3.37			3
International Equity Select		188,000		317,000		2.55			2
International Small Cap Equity		410,533		2,000,000		2.92			15
US Equity Concentrated		10,348,658		18,300,000		3.50			14
US Equity Select		239,000		450,000		2.97			5
US Realty Equity		234,188		2,190,000		3.11			32
US Small-Mid Cap Equity		900,000		900,000		3.40			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.

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.

Annual Report  285

(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 generally does not intend to actively hedge the Portfolios’ foreign currency exposure.

(d) Infrastructure Companies Risk—Securities and instruments of infrastructure companies are more susceptible to adverse economic or regulatory occurrences affecting their industries. Infrastructure companies may be subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the

286  Annual Report

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.

(e) Realty Companies, Real Estate Investments and REITs Risk— Portfolios that invest in Realty Companies, Real Estate Investments and/or REITs could lose money due to the performance of real estate-related securities even if securities markets generally are experiencing positive results. The performance of investments made by a Portfolio may be determined to a great extent by the current status of the real estate industry in general, or by other factors (such as interest rates and the availability of loan capital) that may affect the real estate industry, even if other industries would not be so affected. Consequently, the investment strategies of a Portfolio could lead to securities investment results that may be significantly different from investments in securities of other industries or sectors or in a more broad-based portfolio generally.

The risks related to investments in Realty Companies and Real Estate Investments include, but are not limited to: adverse changes in general economic and local market conditions; adverse developments in employment; changes in supply or demand for similar or competing properties; unfavorable changes in applicable taxes, governmental regulations and interest rates; operating or development expenses; and lack of available financing.

REITS are subject to similar risks as Real Estate Investments and Realty Companies. The risks related to investments in Real Estate Investments and Realty Companies include, but are not limited to: adverse changes in general economic and local market conditions;

Annual Report  287

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.

(f) 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.

(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 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

288  Annual Report

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 assumptions that market participants would use in

Annual Report  289

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.

290  Annual Report

The following table summarizes the valuation of the Portfolios’ assets and liabilities by each fair value hierarchy level as of December 31, 2018:

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, 2018
Developing Markets Equity Portfolio
Common Stocks*
Brazil		$	1,247,418	$	21,261,856	$	—		$  22,509,274
Canada			3,664,541		—		—		3,664,541
China			20,267,158		44,633,853		—		64,901,011
Colombia			4,288,041		—		—		4,288,041
Hong Kong			—		8,500,902		—		8,500,902
India			13,718,548		10,868,924		—		24,587,472
Indonesia			—		4,533,555		—		4,533,555
Mexico			1,920,094		—		—		1,920,094
Peru			6,085,950		—		—		6,085,950
Philippines			—		2,977,090		—		2,977,090
Portugal			—		3,359,794		—		3,359,794
Russia			4,344,137		7,766,754		—		12,110,891
South Africa			—		9,794,341		—		9,794,341
South Korea			—		19,731,054		—		19,731,054
Taiwan			3,398,595		16,842,784		—		20,241,379
United Kingdom			—		3,663,811		—		3,663,811
Preferred Stocks*
Brazil			4,102,233		—		—		4,102,233
Short-Term Investments			1,218,722		—		—		1,218,722
Total		$	64,255,437	$	153,934,718	$	—		$218,190,155

Annual Report  291

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, 2018
Emerging Markets Core Equity Portfolio
Common Stocks*
Argentina		$	1,687,441	$	—	$	—		$    1,687,441
Brazil			4,961,874		12,058,264		—		17,020,138
Canada			1,798,835		—		—		1,798,835
China			16,171,720		36,370,759		—		52,542,479
Colombia			2,011,680		—		—		2,011,680
Hong Kong			—		2,450,990		—		2,450,990
Hungary			—		2,212,180		—		2,212,180
India			9,566,513		13,221,612		—		22,788,125
Indonesia			1,883,451		2,994,917		—		4,878,368
Luxembourg			4,210,396		—		—		4,210,396
Mexico			6,771,483		—		—		6,771,483
Peru			2,582,456		—		—		2,582,456
Philippines			—		3,495,035		—		3,495,035
Portugal			—		2,238,786		—		2,238,786
Russia			588,355		13,145,584		—		13,733,939
South Africa			—		11,143,846		—		11,143,846
South Korea			—		25,325,336		—		25,325,336
Taiwan			13,465,606		8,705,574		—		22,171,180
Thailand			—		3,021,569		—		3,021,569
United Arab Emirates			—		826,480		—		826,480
United Kingdom			3,443,200		—		—		3,443,200
Preferred Stocks*
Brazil			2,199,477		—		—		2,199,477
Short-Term Investments			2,544,384		—		—		2,544,384
Total		$	73,886,871	$	137,210,932	$	—		$211,097,803

292  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, 2018
Emerging Markets Equity Advantage Portfolio
Common Stocks*
Brazil		$	—	$	173,837	$	—		$    173,837
Chile			23,421		—		—		23,421
China			160,902		852,823		—		1,013,725
Colombia			10,989		—		—		10,989
Egypt			12,952		—		—		12,952
Greece			—		6,558		—		6,558
Hong Kong			—		33,516		—		33,516
Hungary			—		39,145		—		39,145
India			156,262		76,569		—		232,831
Indonesia			—		72,552		—		72,552
Malaysia			—		83,932		—		83,932
Mexico			108,039		—		—		108,039
Peru			8,645		—		—		8,645
Philippines			—		44,280		—		44,280
Poland			—		48,761		—		48,761
Russia			5,586		155,297		—		160,883
Singapore			—		13,243		—		13,243
South Africa			4,698		140,789		—		145,487
South Korea			50,864		475,479		—		526,343
Taiwan			189,496		216,066		—		405,562
Thailand			10,557		86,224		—		96,781
Turkey			10,728		12,705		—		23,433
United States			14,317		—		—		14,317
Preferred Stocks*
Brazil			33,834		—		—		33,834
Short-Term Investments			67,762		—		—		67,762
Total		$	869,052	$	2,531,776	$	—		$3,400,828

Annual Report  293

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, 2018
Emerging Markets Equity Blend Portfolio
Common Stocks*
Argentina		$	3,817,869	$	—	$	—		$    3,817,869
Brazil			4,779,563		20,184,969		—		24,964,532
Canada			3,535,638		—		—		3,535,638
Chile			511,603		—		—		511,603
China			33,414,444		51,805,167		—		85,219,611
Colombia			4,442,155		—		—		4,442,155
Egypt			200,970		2,443,662		—		2,644,632
Estonia			—		292,663		—		292,663
Georgia			—		1,838,384		—		1,838,384
Greece			—		1,343,096		—		1,343,096
Hong Kong			—		11,969,603		—		11,969,603
Hungary			—		3,060,790		—		3,060,790
India			9,726,731		27,224,593		—		36,951,324
Indonesia			2,689,932		9,849,036		—		12,538,968
Kenya			—		565,299		—		565,299
Kuwait			—		842,098		—		842,098
Mexico			6,217,096		—		—		6,217,096
Morocco			—		221,791		—		221,791
Oman			—		821,031		—		821,031
Pakistan			—		623,417		—		623,417
Philippines			737,653		—		—		737,653
Poland			—		1,037,510		—		1,037,510
Russia			14,242,095		3,519,927		—		17,762,022
Singapore			—		1,270,601		—		1,270,601
South Africa			—		3,943,217		—		3,943,217
South Korea			—		34,005,217		—		34,005,217
Taiwan			3,134,359		19,644,528		—		22,778,887
Thailand			—		1,372,499		—		1,372,499
Turkey			2,271,284		—		—		2,271,284
Ukraine			—		692,104		—		692,104
Preferred Stocks*
Brazil			3,763,046		—		—		3,763,046
Warrants*
Brazil			37,437		—		—		37,437
Short-Term Investments			5,709,402		—		—		5,709,402
Total		$	99,231,277	$	198,571,202	$	—		$297,802,479

294  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, 2018
Emerging Markets Equity Portfolio
Common Stocks*
Argentina		$	140,643,124	$	—	$	—		$   140,643,124
Brazil			101,007,973		693,160,452		—		794,168,425
China			709,830,455		1,062,861,291		—		1,772,691,746
Egypt			—		82,193,853		—		82,193,853
Hong Kong			—		91,311,291		—		91,311,291
Hungary			—		183,217,110		—		183,217,110
India			74,719,167		724,491,320		—		799,210,487
Indonesia			144,005,865		374,782,611		—		518,788,476
Luxembourg			58,850,956		—		—		58,850,956
Malaysia			—		60,594,729		—		60,594,729
Mexico			278,212,861		—		—		278,212,861
Pakistan			—		102,889,175		—		102,889,175
Philippines			56,836,271		—		—		56,836,271
Russia			111,889,701		703,830,008		—		815,719,709
South Africa			43,991,077		807,195,285		—		851,186,362
South Korea			—		1,240,226,745		—		1,240,226,745
Taiwan			—		455,228,408		—		455,228,408
Thailand			—		141,559,204		—		141,559,204
Turkey			—		185,794,963		—		185,794,963
Short-Term Investments			209,726,438		—		—		209,726,438
Total		$	1,929,713,888	$	6,909,336,445	$	—		$8,839,050,333
Equity Franchise Portfolio
Common Stocks*
Australia		$	—	$	291,396	$	—		$          291,396
Belgium			—		357,318		—		357,318
France			—		176,093		—		176,093
Germany			—		172,069		—		172,069
Italy			—		386,432		—		386,432
Luxembourg			—		525,103		—		525,103
United Kingdom			—		629,878		—		629,878
United States			5,779,487		—		—		5,779,487
Short-Term Investments			83,365		—		—		83,365
Total		$	5,862,852	$	2,538,289	$	—		$       8,401,141

Annual Report  295

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, 2018
Global Equity Select Portfolio
Common Stocks*
Belgium		$	—	$	595,442	$	—		$     595,442
Canada			2,576,891		—		—		2,576,891
China			472,892		793,573		—		1,266,465
Finland			—		1,393,069		—		1,393,069
France			—		840,998		—		840,998
Germany			—		661,174		—		661,174
Hong Kong			—		2,047,843		—		2,047,843
India			550,781		—		—		550,781
Israel			—		726,128		—		726,128
Japan			—		4,326,213		—		4,326,213
Netherlands			—		1,586,644		—		1,586,644
Singapore			—		1,092,420		—		1,092,420
South Africa			—		1,029,999		—		1,029,999
Sweden			—		2,048,614		—		2,048,614
Switzerland			—		1,396,558		—		1,396,558
Taiwan			640,758		—		—		640,758
United Kingdom			883,071		7,085,371		—		7,968,442
United States			32,620,792		—		—		32,620,792
Short-Term Investments			3,109,649		—		—		3,109,649
Total		$	40,854,834	$	25,624,046	$	—		$66,478,880

296  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, 2018
Global Listed Infrastructure Portfolio
Assets:
Common Stocks*
Australia		$	—	$	509,812,552		$	—		$   509,812,552
Canada			49,515,373		—			—		49,515,373
France			—		436,849,228			—		436,849,228
Germany			—		154,333,094			—		154,333,094
Italy			—		1,326,965,931			—		1,326,965,931
Luxembourg			—		303,400,711			—		303,400,711
Portugal			—		57,678,179			—		57,678,179
Spain			—		249,765,419			—		249,765,419
United Kingdom			—		881,321,692			—		881,321,692
United States			1,173,862,169		—			—		1,173,862,169
Short-Term Investments			152,170,295		—			—		152,170,295
Other Financial
Instruments†
Forward Currency Contracts			—		11,095,514			—		11,095,514
Total		$	1,375,547,837	$	3,931,222,320		$	—		$5,306,770,157
Liabilities:
Other Financial
Instruments†
Forward Currency Contracts		$	—	$	(10,159,785	)	$	—		$    (10,159,785	)
Global Realty Equity Portfolio
Short-Term Investments		$	4,321,682	$	—		$	—		$       4,321,682

Annual Report  297

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, 2018
Global Strategic Equity Portfolio
Common Stocks*
Canada		$	75,489	$	—	$	—		$      75,489
China			47,838		39,639		—		87,477
Denmark			—		35,889		—		35,889
Finland			—		46,643		—		46,643
France			—		129,989		—		129,989
Hong Kong			—		78,936		—		78,936
India			41,520		—		—		41,520
Indonesia			—		4,101		—		4,101
Israel			—		40,850		—		40,850
Japan			—		85,035		—		85,035
Netherlands			—		38,906		—		38,906
New Zealand			—		34,621		—		34,621
South Africa			—		64,235		—		64,235
Switzerland			—		130,285		—		130,285
United Kingdom			—		245,758		—		245,758
United States			1,405,972		—		—		1,405,972
Short-Term Investments			102,289		—		—		102,289
Total		$	1,673,108	$	974,887	$	—		$2,647,995
International Compounders Portfolio
Common Stocks*
Australia		$	3,253	$	—	$	—		$       3,253
Canada			20,197		—		—		20,197
China			8,052		3,964		—		12,016
Denmark			6,836		—		—		6,836
France			3,163		3,450		—		6,613
Germany			7,157		—		—		7,157
India			6,733		—		—		6,733
Israel			3,388		—		—		3,388
Japan			5,891		—		—		5,891
Netherlands			—		2,986		—		2,986
Norway			2,907		—		—		2,907
South Africa			—		8,446		—		8,446
Spain			—		2,498		—		2,498
Sweden			7,511		—		—		7,511
Taiwan			4,355		—		—		4,355
United Kingdom			6,387		13,652		—		20,039
United States			7,932		—		—		7,932
Total		$	93,762	$	34,996	$	—		$    128,758

298  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, 2018
International Equity Advantage Portfolio
Common Stocks*
Australia		$	4,523	$	145,880	$	—		$     150,403
Austria			—		5,098		—		5,098
Belgium			—		5,625		—		5,625
China			—		28,302		—		28,302
Denmark			—		23,227		—		23,227
Finland			—		10,916		—		10,916
France			7,291		233,525		—		240,816
Germany			—		155,615		—		155,615
Hong Kong			—		78,918		—		78,918
Israel			1,968		3,301		—		5,269
Italy			—		82,288		—		82,288
Japan			30,019		513,450		—		543,469
Macau			—		5,164		—		5,164
Netherlands			—		129,052		—		129,052
New Zealand			—		5,517		—		5,517
Norway			—		53,652		—		53,652
Russia			—		10,290		—		10,290
South Africa			—		2,152		—		2,152
Spain			—		54,565		—		54,565
Sweden			—		25,568		—		25,568
Switzerland			—		209,660		—		209,660
United Kingdom			—		356,400		—		356,400
United States			6,202		—		—		6,202
Total		$	50,003	$	2,138,165	$	—		$  2,188,168
International Equity Concentrated Portfolio
Common Stocks*
Australia		$	—	$	1,345,448	$	—		$  1,345,448
Belgium			—		1,968,062		—		1,968,062
Canada			7,374,570		—		—		7,374,570
China			—		3,207,511		—		3,207,511
France			—		3,783,452		—		3,783,452
Germany			—		2,773,831		—		2,773,831
Hong Kong			—		2,411,458		—		2,411,458
Japan			—		6,907,803		—		6,907,803
Netherlands			—		2,641,167		—		2,641,167
South Korea			—		1,045,840		—		1,045,840
United Kingdom			—		8,403,331		—		8,403,331
United States			4,973,798		—		—		4,973,798
Preferred Stocks*
Germany			—		2,544,544		—		2,544,544
Short-Term Investments			745,150		—		—		745,150
Total		$	13,093,518	$	37,032,447	$	—		$50,125,965

Annual Report  299

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, 2018
International Equity Portfolio
Common Stocks*
Australia		$	—	$	47,999,922	$	—		$     47,999,922
Belgium			—		44,345,435		—		44,345,435
Canada			149,160,154		—		—		149,160,154
Denmark			—		34,412,326		—		34,412,326
Finland			—		70,483,532		—		70,483,532
France			—		271,687,310		—		271,687,310
Germany			—		90,549,352		—		90,549,352
Hong Kong			—		22,446,326		—		22,446,326
India			34,489,302		—		—		34,489,302
Ireland			33,118,810		—		—		33,118,810
Israel			—		18,782,617		—		18,782,617
Japan			—		315,660,601		—		315,660,601
Netherlands			—		167,658,691		—		167,658,691
Norway			—		78,758,287		—		78,758,287
Singapore			—		65,222,226		—		65,222,226
South Korea			—		17,397,356		—		17,397,356
Spain			—		43,552,157		—		43,552,157
Sweden			—		81,609,073		—		81,609,073
Switzerland			—		180,940,422		—		180,940,422
United Kingdom			—		374,956,433		—		374,956,433
United States			133,625,684		—		—		133,625,684
Preferred Stocks*
Germany			—		45,723,664		—		45,723,664
Short-Term Investments			113,486,251		—		—		113,486,251
Total		$	463,880,201	$	1,972,185,730	$	—		$2,436,065,931

300  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, 2018
International Equity Select Portfolio
Common Stocks*
Australia		$	—	$	1,821,453	$	—		$  1,821,453
Belgium			—		1,329,999		—		1,329,999
Brazil			—		1,846,851		—		1,846,851
Canada			4,643,338		—		—		4,643,338
China			646,454		3,788,432		—		4,434,886
Denmark			—		1,475,021		—		1,475,021
Finland			—		2,535,362		—		2,535,362
France			—		5,814,891		—		5,814,891
Germany			—		2,192,011		—		2,192,011
India			1,627,518		—		—		1,627,518
Indonesia			711,811		—		—		711,811
Ireland			884,402		—		—		884,402
Japan			—		6,760,144		—		6,760,144
Netherlands			—		4,989,063		—		4,989,063
Norway			—		2,231,113		—		2,231,113
Russia			830,209		—		—		830,209
Singapore			—		1,461,676		—		1,461,676
South Africa			—		1,586,030		—		1,586,030
South Korea			—		533,265		—		533,265
Spain			—		1,519,174		—		1,519,174
Sweden			—		1,612,389		—		1,612,389
Switzerland			—		5,282,300		—		5,282,300
Taiwan			—		1,493,531		—		1,493,531
Thailand			—		570,121		—		570,121
United Kingdom			—		6,841,050		—		6,841,050
United States			5,816,357		—		—		5,816,357
Preferred Stocks*
Germany			—		1,419,948		—		1,419,948
Short-Term Investments			5,712,559		—		—		5,712,559
Total		$	20,872,648	$	57,103,824	$	—		$77,976,472

Annual Report  301

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, 2018
International Equity Value Portfolio
Common Stocks*
Canada		$	1,373,113	$	526,362	$	—		$  1,899,475
China			—		779,263		—		779,263
France			—		1,387,739		—		1,387,739
Germany			—		1,453,435		—		1,453,435
India			1,025,913		—		—		1,025,913
Ireland			109,222		—		—		109,222
Italy			—		816,277		—		816,277
Japan			—		2,809,042		—		2,809,042
Netherlands			—		1,618,067		—		1,618,067
South Korea			—		894,995		—		894,995
Switzerland			—		1,668,250		—		1,668,250
United Kingdom			—		4,089,059		—		4,089,059
United States			947,615		—		—		947,615
Preferred Stocks*
Germany			—		1,127,938		—		1,127,938
Short-Term Investments			2,249,879		—		—		2,249,879
Total		$	5,705,742	$	17,170,427	$	—		$22,876,169
International Small Cap Equity Portfolio
Common Stocks*
Australia		$	—	$	1,706,899	$	—		$  1,706,899
Belgium			—		2,083,603		—		2,083,603
Brazil			—		553,827		—		553,827
Canada			2,536,358		—		—		2,536,358
China			—		742,196		—		742,196
Denmark			—		839,400		—		839,400
Finland			—		700,928		—		700,928
France			—		1,316,546		—		1,316,546
Germany			—		5,836,902		—		5,836,902
Hong Kong			—		1,267,927		—		1,267,927
India			—		485,776		—		485,776
Ireland			—		1,804,855		—		1,804,855
Italy			—		1,800,672		—		1,800,672
Japan			478,719		13,556,686		—		14,035,405
Jersey			—		933,408		—		933,408
Luxembourg			412,064		647,746		—		1,059,810
Netherlands			—		1,292,503		—		1,292,503
Singapore			—		456,429		—		456,429
Sweden			—		3,308,554		—		3,308,554
Switzerland			—		681,062		—		681,062
Taiwan			—		182,242		—		182,242
United Kingdom			—		9,537,642		—		9,537,642
United States			355,573		489,521		—		845,094
Short-Term Investments			850,623		—		—		850,623
Total		$	4,633,337	$	50,225,324	$	—		$54,858,661

302  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, 2018
International Strategic Equity Portfolio
Common Stocks*
Canada		$	495,045,729	$	—	$	—		$   495,045,729
China			74,215,181		152,609,790		—		226,824,971
Denmark			—		163,696,852		—		163,696,852
Finland			—		163,703,123		—		163,703,123
France			—		444,871,562		—		444,871,562
Germany			—		23,266,046		—		23,266,046
Hong Kong			—		108,216,427		—		108,216,427
India			38,559,717		67,981,242		—		106,540,959
Ireland			43,266,283		35,575,584		—		78,841,867
Israel			—		39,089,319		—		39,089,319
Japan			—		716,309,371		—		716,309,371
Netherlands			—		246,082,932		—		246,082,932
New Zealand			—		39,607,077		—		39,607,077
Norway			—		87,275,424		—		87,275,424
Philippines			—		45,061,486		—		45,061,486
Singapore			—		120,166,681		—		120,166,681
Spain			—		130,689,272		—		130,689,272
Sweden			—		170,596,997		—		170,596,997
Switzerland			—		310,273,891		—		310,273,891
United Kingdom			—		1,138,875,172		—		1,138,875,172
United States			431,580,241		—		—		431,580,241
Preferred Stocks*
Germany			—		144,030,123		—		144,030,123
Short-Term Investments			114,430,082		—		—		114,430,082
Total		$	1,197,097,233	$	4,347,978,371	$	—		$5,545,075,604

Annual Report  303

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, 2018
Managed Equity Volatility Portfolio
Common Stocks*
Australia		$	—	$	788,218	$	—		$          788,218
Belgium			—		155,549		—		155,549
Canada			1,428,925		—		—		1,428,925
China			—		53,186		—		53,186
Denmark			—		89,658		—		89,658
France			54,763		303,344		—		358,107
Germany			—		344,800		—		344,800
Hong Kong			—		371,534		—		371,534
Israel			—		324,468		—		324,468
Italy			—		351,848		—		351,848
Japan			—		1,630,083		—		1,630,083
Malta			—		40,370		—		40,370
Netherlands			—		216,818		—		216,818
New Zealand			—		48,527		—		48,527
Norway			—		567,589		—		567,589
Portugal			—		46,666		—		46,666
Singapore			—		156,890		—		156,890
Spain			—		70,696		—		70,696
Sweden			—		64,405		—		64,405
Switzerland			—		462,500		—		462,500
United Kingdom			—		1,323,480		—		1,323,480
United States			11,387,012		44,513		—		11,431,525
Short-Term Investments			903,136		—		—		903,136
Total		$	13,773,836	$	7,455,142	$	—		$     21,228,978
US Equity Concentrated Portfolio
Common Stocks*		$	1,062,366,873	$	—	$	—		$1,062,366,873
Short-Term Investments			29,746,626		—		—		29,746,626
Total		$	1,092,113,499	$	—	$	—		$1,092,113,499
US Equity Select Portfolio
Common Stocks*		$	71,627,460	$	—	$	—		$     71,627,460
Short-Term Investments			258,650		—		—		258,650
Total		$	71,886,110	$	—	$	—		$     71,886,110
US Realty Equity Portfolio
Common Stocks*		$	1,962,509	$	—	$	—		$       1,962,509
Real Estate Investment Trusts*			57,340,373		—		—		57,340,373
Total		$	59,302,882	$	—	$	—		$     59,302,882
US Small-Mid Cap Equity Portfolio
Common Stocks*		$	126,473,826	$	—	$	—		$   126,473,826

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

304  Annual Report

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.

10. Derivative Instruments

The Global Listed Infrastructure Portfolio may use derivative instruments, including forward currency contracts.

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

During the year ended December 31, 2018, the approximate average monthly notional exposure for derivative instruments was as follows:

Forward currency contracts:
Average amounts purchased	$	138,800,000	*
Average amounts sold		4,047,900,000

* Represents average monthly notional exposure for the seven 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, 2018:

Assets – Derivative Financial Instruments		Total
Forward currency contracts	Unrealized appreciation on forward currency contracts	$	11,095,514
Liabilities – Derivative Financial Instruments			Total
Forward currency contracts	Unrealized depreciation on forward currency contracts	$	10,159,785

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2018 was:

Net Realized Gain (Loss) from:	Total
Forward currency contracts	$	233,725,528

Net Change in Unrealized Appreciation (Depreciation) on:	Total
Forward currency contracts	$	55,621,091

Annual Report  305

None of the other Portfolios presented traded in derivative instruments during the year ended December 31, 2018.

As of December 31, 2018, the Global Listed Infrastructure 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, 2018:

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		$	11,095,514		$	—		$11,095,514

				Amounts Not Offset in the
				Statement of Assets and Liabilities
Counterparty	Net Amounts of Assets Presented in the Statement of Assets and Liabilities			Financial Instruments			Collateral Received		Net Amounts of Derivative Assets
BNP Paribas SA		$	2,471,533		$(1,218,111	)	$	—		$1,253,422
Citibank NA			1,391,055		(1,391,055	)		—		—
HSBC Bank USA NA			2,123,241		(1,469,176	)		—		654,065
Royal Bank of Canada			1,595,543		(1,595,543	)		—		—
Standard Chartered Bank			1,847,746		—			—		1,847,746
State Street Bank and Trust Co.			1,666,396		(1,507,054	)		—		159,342
Total		$	11,095,514		$(7,180,939	)	$	—		$3,914,575

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		$	10,159,785		$	—	$10,159,785

306  Annual Report

				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		$	1,218,111	$	(1,218,111	)	$	—	$	—
Canadian Imperial Bank of Commerce			1,962,346		—			—		1,962,346
Citibank NA			1,538,468		(1,391,055	)		—		147,413
HSBC Bank USA NA			1,469,176		(1,469,176	)		—		—
Royal Bank of Canada			1,751,109		(1,595,543	)		—		155,566
State Street Bank and Trust Co.			1,507,054		(1,507,054	)		—		—
The Bank of New York Mellon Corp.			713,521		—			—		713,521
Total		$	10,159,785	$	(7,180,939	)	$	—	$	2,978,846

11. Reorganization

At a meeting held on February 28, 2018, the Board approved merging US Realty Income Portfolio into US Realty Equity Portfolio in a tax-free reorganization (the “Reorganization”). The Reorganization was approved by the shareholders of US Realty Income Portfolio and was completed on August 17, 2018.

The chart below shows a summary of net assets, shares outstanding, net unrealized appreciation (depreciation), undistributed net investment income and accumulated net realized gain (loss), before and after the Reorganization.

	Before Reorganization							After Reorganization
	US Realty Income Portfolio				US Realty Equity Portfolio				US Realty Equity Portfolio
Net Assets:
Institutional Shares		$	10,788,800			$	10,639,008			$	21,427,808
Open Shares			11,850,795				41,259,980				53,110,775
Total		$	22,639,595			$	51,898,988			$	74,538,583
Shares Outstanding:
Institutional Shares			1,490,660				554,619				1,117,045
Open Shares			1,641,373				2,145,028				2,761,127
Net unrealized appreciation (depreciation)			1,004,535				7,331,350				8,335,885
Undistributed net investment income			5,823,807				2,692,148				2,692,148
Accumulated net realized gain (loss)			(21,283,500	)			(1,558,647	)			(1,558,647	)

Annual Report  307

Assuming the acquisition of US Realty Income Portfolio had been completed on January 1, 2018, the beginning of the annual reporting period, US Realty Equity Portfolio’s pro forma results of operations for the year ended December 31, 2018, are as follows:

	Amount
Net investment income	$	1,721,952
Net loss on investments		(193,510	)
Net increase in net assets resulting from operations	$	1,528,442

Because the combined investment portfolios have been managed as a single integrated portfolio since the Reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of US Realty Income Portfolio that have been included in US Realty Equity Portfolio’s Statement of Operations since August 17, 2018.

For financial reporting purposes, assets received and shares issued by US Realty Equity Portfolio were recorded at fair value; however, the cost basis of the investments received from US Realty Income Portfolio, in the amount of $21,633,766, was carried forward to align ongoing reporting of US Realty Equity Portfolio’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. US Realty Equity Portfolio acquired capital loss carryovers of $17,542,485, of which, $3,503,021 are short-term and $14,039,464 are long-term. These losses are not subject to expiration, but they may be subject to future annual limitations.

12. Accounting Pronouncements

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which removes, modifies and adds disclosures to Topic 820. The amendments in this ASU apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Management has evaluated the impact of the amend-

308  Annual Report

ments and has elected to adopt these amendments and incorporate the changes in the current financial statements.

13. Subsequent Events

Global Realty Equity Portfolio was liquidated on December 31, 2018. A liquidation payment of Global Realty Equity Portfolio’s net assets was distributed to shareholders subsequent to liquidation.

Management has evaluated subsequent events affecting the Portfolios through the issuance of the financial statements and has determined that, aside from items previously disclosed, there were no subsequent events that required adjustment or disclosure.

Annual Report  309

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 Developing Markets Equity Portfolio, Lazard Emerging Markets Core Equity Portfolio, Lazard Emerging Markets Equity Advantage Portfolio, Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Equity Portfolio, Lazard Equity Franchise Portfolio, Lazard Global Equity Select Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard Global Realty Equity Portfolio, Lazard Global Strategic Equity Portfolio, Lazard International Compounders Portfolio, Lazard International Equity Advantage Portfolio, Lazard International Equity Concentrated Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Equity Value Portfolio, Lazard International Small Cap Equity Portfolio, Lazard International Strategic Equity Portfolio, Lazard Managed Equity Volatility Portfolio, Lazard US Equity Concentrated Portfolio, Lazard US Equity Select Portfolio, Lazard US Realty Equity Portfolio, and Lazard US Small-Mid Cap Equity 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 Developing Markets Equity Portfolio, Lazard Emerging Markets Core Equity Portfolio, Lazard Emerging Markets Equity Advantage Portfolio, Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Equity Portfolio, Lazard Equity Franchise Portfolio, Lazard Global Equity Select Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard Global Realty Equity Portfolio, Lazard Global Strategic Equity Portfolio, Lazard International Compounders Portfolio, Lazard International Equity Advantage Portfolio, Lazard International Equity Concentrated Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Equity Value Portfolio, Lazard International Small Cap Equity Portfolio, Lazard International Strategic Equity Portfolio, Lazard Managed Equity Volatility Portfolio, Lazard US Equity Concentrated Portfolio, Lazard US Equity Select Portfolio (formerly Lazard US Strategic Equity Portfolio), Lazard US Realty Equity Portfolio, and Lazard US Small-Mid Cap Equity Portfolio (collectively the “Portfolios”), twenty-three of the portfolios constituting The Lazard Funds, Inc. (the “Fund”), as of December

310  Annual Report

31, 2018, 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 five years in the period then ended for the Portfolios except for Lazard International Compounders Portfolio, Lazard International Equity Value Portfolio, Lazard Equity Franchise Portfolio, Lazard Emerging Markets Equity Advantage Portfolio, Lazard International Equity Advantage Portfolio, Lazard Managed Equity Volatility Portfolio, Lazard Global Strategic Equity Portfolio, and Lazard International Equity Concentrated Portfolio which are indicated in the table below, 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 listed above constituting the Fund, as of December 31, 2018, and the results of their operations for the year then ended (or for the period listed in the table below), the changes in their net assets for each of the two years in the period then ended (or for the period listed in the table below), and the financial highlights for each of the five years in the period then ended (or for the period listed in the table below), in conformity with accounting principles generally accepted in the United States of America.

Annual Report  311

Portfolio Name	Statements of Operations	Statements of Changes in Net Assets	Financial Highlights
Lazard International Compounders Portfolio	As of and for the period ended December 31, 2018 (commencement of operations)
Lazard International Equity Value Portfolio	As of and for the period from October 31, 2018 (commencement of operations) through December 31, 2018
Lazard Equity Franchise Portfolio	For the year ended December 31, 2018	For the year ended December 31, 2018 and for the period from September 29, 2017 (commencement of operations) through December 31, 2017
Lazard Emerging Markets Equity Advantage Portfolio Lazard International Equity Advantage Portfolio Lazard Managed Equity Volatility Portfolio	For the year ended December 31, 2018	For the years ended December 31, 2018 and 2017	For the years ended December 31, 2018, 2017 and 2016 and for the period from May 29, 2015 (commencement of operations) through December 31, 2015
Lazard Global Strategic Equity Portfolio Lazard International Equity Concentrated Portfolio	For the year ended December 31, 2018	For the years ended December 31, 2018 and 2017	For the years ended December 31, 2018, 2017, 2016 and 2015 and for the period from August 29, 2014 (commencement of operations) through December 31, 2014

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

312  Annual Report

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, 2018, 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 26, 2019

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

Annual Report  313

The Lazard Funds, Inc.

Board of Directors and Officers Information (unaudited)

Name (Year of Birth) 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 (1953)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present) Cornell Law School, Adjunct Professor (2013 – 2016, 2019) The Buchmann Faculty of Law, Tel Aviv University, Visiting Professor (2019) University of California, Berkeley School of Law, Adjunct Professor (Spring 2017)
Kenneth S. Davidson (1945)	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 (1962)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present) TIAA-CREF Funds (69 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 (1971)	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. (1944)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present) Resource America, Inc., a real estate asset management company, Director (2016 – 2018)

314  Annual Report

Name (Year of Birth) 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)
Robert M. Solmson (1947)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, Co-Managing Partner and Managing Director (2008 – present)
Interested Directors(4):
Ashish Bhutani (1960)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present) Lazard Ltd, Vice Chairman and Director (2010 – present)
Nathan A. Paul (1973)	Director (October 2017), Chief Executive Officer and President (February 2017; previously, Vice President and Secretary since April 2002)	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, 2019, 39 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  315

Name (Year of Birth) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) During the Past Five Years
Officers(3):
Mark R. Anderson (1970)	Chief Compliance Officer (September 2014), Vice President and Secretary (February 2017)	Managing Director (since February 2017, previously Director), Chief Compliance Officer (since September 2014) and General Counsel (since April 2017) of the Investment Manager Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014)
Christopher Snively (1984)	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 (1958)	Treasurer (May 2003)	Vice President of the Investment Manager
Shari L. Soloway (1981)	Assistant Secretary (November 2015)	Head of Legal, North America (since January 2019, previously Senior Vice President, Legal and Compliance (since September 2015)), of the Investment Manager Vice President and Associate General Counsel of GE Asset Management (July 2011 – September 2015)
Jessica A. Falzone (1989)	Assistant Secretary (January 2019)	Vice President, Legal and Compliance, of the Investment Manager (since March 2018) Associate at Schulte Roth & Zabel LLP (2014 – March 2018)
Cesar A. Trelles (1975)	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.

316  Annual Report

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

Tax Information

Year Ended December 31, 2018

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2018:

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

Portfolio	Percentage
Developing Markets Equity		94.62	%
Emerging Markets Core Equity		100.00
Emerging Markets Equity Advantage		100.00
Emerging Markets Equity Blend		100.00
Emerging Markets Equity		100.00
Equity Franchise		30.88
Global Equity Select		100.00
Global Listed Infrastructure		100.00
Global Strategic Equity		6.59
International Equity Advantage		92.56
International Compounders		—
International Equity Concentrated		100.00
International Equity		100.00
International Equity Select		100.00
International Equity Value		100.00
International Small Cap Equity		8.38
International Strategic Equity		100.00
Managed Equity Volatility		94.84
US Equity Concentrated		86.84
US Equity Select		58.32
US Realty Equity		2.16
US Small-Mid Cap Equity		29.68

Annual Report  317

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
Developing Markets Equity		—	%
Emerging Markets Core Equity		—
Emerging Markets Equity Advantage		0.16
Emerging Markets Equity Blend		—
Emerging Markets Equity		—
Equity Franchise		9.20
Global Equity Select		55.40
Global Listed Infrastructure		5.12
Global Realty Equity		0.52
Global Strategic Equity		14.24
International Compounders		—
International Equity Advantage		—
International Equity Concentrated		—
International Equity		—
International Equity Select		—
International Equity Value		—
International Small Cap Equity		—
International Strategic Equity		—
Managed Equity Volatility		47.91
US Equity Concentrated		75.68
US Equity Select		92.10
US Realty Equity		2.62
US Small-Mid Cap Equity		37.99

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.

318  Annual Report

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.

Schedule of Portfolio Holdings

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the SEC’s website at https://www.sec.gov.

Board Consideration of New Management Agreements

Lazard International Equity Value Portfolio

At a meeting of the Board held on August 21, 2018 the Board considered the approval of the Management Agreement between the Fund, on behalf of the Lazard International Equity Value Portfolio (the “International Equity Value Portfolio”), and the Investment Manager (the “International Equity Value Management Agreement”). The Independent Directors were assisted in their review by independent legal counsel, who advised the Board on relevant legal standards and met with the Independent Directors in executive session separate from representatives of the Investment Manager.

Services Provided

Representatives of the Investment Manager discussed with the Board the Investment Manager’s written presentation provided in advance of the meeting (which also incorporated information provided previously in connection with the renewal of the Management Agreement for other Fund Portfolios) addressing, among other matters, the nature, extent and quality of services that the Investment Manager would provide to the International Equity Value Portfolio, including a discussion of the Investment Manager and its clients (of which the existing Lazard Funds Complex of 41 active funds comprises approximately $32 billion of the approximately $240 billion of total assets under the management of the Investment Manager and its global affiliates as of June 30, 2018).

Annual Report  319

The Board also received a presentation on the International Equity Value Portfolio from members of the International Equity Value Portfolio’s proposed portfolio management team, including the strategies to be employed for the International Equity Value Portfolio and information about the International Equity Value Portfolio’s management team, including professional biographies.

The Board considered the various services to be provided by the Investment Manager including the Investment Manager’s research, portfolio management and trading 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, as well as regular reporting to, and support of, the Board. Representatives of the Investment Manager stated that the Investment Manager believes that the International Equity Value Portfolio and its shareholders will be able to obtain significant benefits as a result of the resources and support of the Investment Manager’s global research, portfolio management, trading, operations, risk management, technology and legal and compliance infrastructure. The Board also considered information provided by the Investment Manager regarding its personnel, resources, financial condition and experience; the Fund’s distribution channels and the relationships with various intermediaries; and marketing and shareholder servicing activities on behalf of the Fund’s Portfolios, which would include the International Equity Value Portfolio. The Board accepted management’s assertion that the International Equity Value Portfolio would be expected to benefit from the services and infrastructure provided by the Investment Manager and that such services and infrastructure would be greater than those typically provided to a $32 billion fund complex not managed by a large, global firm such as the Investment Manager.

Comparative Fee, Expense Ratio and Performance Information

The Board reviewed information prepared by Strategic Insight, an independent provider of investment company data, comparing the advisory fee and expense ratios of the International Equity Value Portfolio to those of a group of comparison funds selected by Strategic Insight (each, a “Group”). Representatives of the Invest-

320  Annual Report

ment Manager discussed with the Board the methodology used by Strategic Insight in constructing comparison Groups, noting the limitations of the process.

Advisory Fee and Expense Ratios. The Board 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 (as limited by the Investment Manager (“net”)) for the International Equity Value Portfolio and the comparisons provided by Strategic Insight, which compared the contractual (gross) advisory fee and net expense ratios for the International Equity Value Portfolio to its respective Groups.¹ The proposed contractual advisory fee and net expense ratios for the International Equity Value Portfolio were at and below the medians of the Group, respectively, for Institutional Shares and below the medians of the Group for Open Shares.

The Board also considered fees paid to the Investment Manager by one pooled investment vehicle that utilized the same investment strategy as the International Equity Value Portfolio (the “International Equity Value Account”). The Board discussed the fee to be paid to the Investment Manager by the International Equity Value Portfolio compared to the fee paid to the Investment Manager by the International Equity Value Account. Representatives of the Investment Manager discussed the nature of the International Equity Value Account and the significant differences in services provided by the Investment Manager to the International Equity Value Account as compared to the services to be provided to the International Equity Value Portfolio. The Board considered the relevance of the fee information provided for the International Equity Value Account, in light of the Investment Manager’s discussion of the significant differences in services provided, to evaluate the fees to be paid to the Investment Manager by the International Equity Value Portfolio.

Performance. The Board considered the performance of the International Equity Value Account compared to the MSCI EAFE Index

¹ The International Equity Value Portfolio has two comparison groups, corresponding to Institutional and Open Shares.

Annual Report  321

and the MSCI EAFE Value Index for various periods commencing in 2012, which showed that the performance of the International Equity Value Account (gross of fees) was above one or both of the Indexes in most of the periods shown, including in the calendar year 2017 and the year-to-date period ended June 30, 2018.

Investment Manager Profitability and Economies of Scale

Representatives of the Investment Manager noted that because the International Equity Value Portfolio is newly formed, has not commenced operations and the eventual aggregate amount of the International Equity Value Portfolio’s assets was uncertain, specific information concerning the cost of services to be provided to the International Equity Value Portfolio and the estimated profitability percentage of the International Equity Value Management Agreement to the Investment Manager and its affiliates from their relationships with the International Equity Value Portfolio and economies of scale would be subject to a number of assumptions and would be speculative and not meaningful. The Investment Manager representatives stated that they did not expect the Investment Manager to realize any current profits on the International Equity Value Portfolio initially, noting the Investment Manager’s agreement to waive its fees and/or reimburse expenses of the International Equity Value Portfolio for at least two years following the International Equity Value 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 the renewal of the International Equity Value Management Agreement. Representatives of the Investment Manager reviewed with the Board information provided on the Investment Manager’s brokerage and soft dollar practices.

Representatives of the Investment Manager 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 manager to the International Equity Value Portfolio. The representatives of the Investment Manager stated that the Investment Manager intends to support distribution rela-

322  Annual Report

tionships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the International Equity Value 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 International Equity Value 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 evaluation of the International Equity Value Management Agreement. Based on its discussions and considerations as described above, with the assistance of independent legal counsel and in the exercise of its business judgment, the Board made the following conclusions and determinations.

· 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 the significant services and infrastructure associated with an approximately $240 billion global asset management business.

· The Board concluded that the fee to be paid to the Investment Manager was appropriate under the circumstances and in light of the factors and 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 International Equity Value Portfolio increase and determined that it would continue to consider potential material economies of scale.

In evaluating the International Equity Value Management Agreement, the Board relied on the information described above as well as other information provided by the Investment Manager. The Board also relied on its previous knowledge of the Fund, gained through meetings and other interactions with the Investment Manager, and the services provided to the Fund by the Investment

Annual Report  323

Manager. The Board considered these conclusions and determinations in their totality and determined to approve the International Equity Value Management Agreement. In deciding whether to vote to approve the International Equity Value 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.

Lazard International Compounders Portfolio

At a meeting of the Board held on November 13, 2018 the Board considered the approval of the Management Agreement between the Fund, on behalf of the Lazard International Compounders Portfolio (the “International Compounders Portfolio”), and the Investment Manager (the “International Compounders Management Agreement”). The Independent Directors were assisted in their review by independent legal counsel, who advised the Board on relevant legal standards and met with the Independent Directors in executive session separate from representatives of the Investment Manager.

Services Provided

Representatives of the Investment Manager discussed with the Board the Investment Manager’s written presentation provided in advance of the meeting (which also incorporated information provided previously in connection with the renewal of the Management Agreement for other Fund Portfolios) addressing, among other matters, the nature, extent and quality of services that the Investment Manager would provide to the International Compounders Portfolio, including a discussion of the Investment Manager and its clients (of which the existing Lazard Funds Complex of 39 active funds comprises approximately $31 billion of the approximately $240 billion of total assets under the management of the Investment Manager and its global affiliates as of Septem-ber 30, 2018). The Board also received a presentation on the International Compounders Portfolio from members of the International Compounders Portfolio’s proposed portfolio management team, including the strategies to be employed for the International Compounders Portfolio and information about the

324  Annual Report

International Compounders Portfolio’s management team, including professional biographies.

The Board considered the various services to be provided by the Investment Manager including the Investment Manager’s research, portfolio management and trading 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, as well as regular reporting to, and support of, the Board. Representatives of the Investment Manager stated that the Investment Manager believes that the International Compounders Portfolio and its shareholders will be able to obtain significant benefits as a result of the resources and support of the Investment Manager’s global research, portfolio management, trading, operations, risk management, technology and legal and compliance infrastructure. The Board also considered information provided by the Investment Manager regarding its personnel, resources, financial condition and experience; the Fund’s distribution channels and the relationships with various intermediaries; and marketing and shareholder servicing activities on behalf of the Fund’s Portfolios, which would include the International Compounders Portfolio. The Board accepted management’s assertion that the International Compounders Portfolio would be expected to benefit from the services and infrastructure provided by the Investment Manager and that such services and infrastructure would be greater than those typically provided to a $31 billion fund complex not managed by a large, global firm such as the Investment Manager.

Comparative Fee, Expense Ratio and Performance Information

The Board reviewed information prepared by Strategic Insight, an independent provider of investment company data, comparing the advisory fee and expense ratios of the International Compounders Portfolio to those of a Group of comparison funds selected by Strategic Insight. Representatives of the Investment Manager discussed with the Board the methodology used by Strategic Insight in constructing comparison Groups, noting the limitations of the process.

Annual Report  325

Advisory Fee and Expense Ratios. The Board 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 (as limited by the Investment Manager (“net”)) for the International Compounders Portfolio and the comparisons provided by Strategic Insight, which compared the contractual (gross) advisory fee and net expense ratios for the International Compounders Portfolio to its respective Groups.² The proposed contractual advisory fee and net expense ratio for the International Compounders Portfolio were below the medians of the Group for each of Institutional Shares and Open Shares.

The Board also considered fees paid to the Investment Manager by one other account that utilized the same investment strategy as the International Compounders Portfolio (the “International Compounders Account”). The Board discussed the fee to be paid to the Investment Manager by the International Compounders Portfolio compared to the fee paid to the Investment Manager by the Similar Account. Representatives of the Investment Manager discussed the nature of the Similar Account and the significant differences in services provided by the Investment Manager to the Similar Account as compared to the services to be provided to the International Compounders Portfolio. The Board considered the relevance of the fee information provided for the Similar Account, in light of the Investment Manager’s discussion of the significant differences in services provided, to evaluate the fees to be paid to the Investment Manager by the International Compounders Portfolio.

Performance. The Board considered the performance of the International Compounders Account compared to the MSCI All Country World ex-US Index (the “Index”) for various periods, which showed that the performance of the Similar Account (gross of fees) was above the Index in most of the periods shown, including the since inception (January 1, 2016) period and the one- and two-year periods ended September 30, 2018.

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

326  Annual Report

Investment Manager Profitability and Economies of Scale

Representatives of the Investment Manager noted that because the International Compounders Portfolio is newly formed, has not commenced operations and the eventual aggregate amount of the International Compounders Portfolio’s assets was uncertain, specific information concerning the cost of services to be provided to the International Compounders Portfolio and the estimated profitability percentage of the International Compounders Management Agreement to the Investment Manager and its affiliates from their relationships with the International Compounders Portfolio and economies of scale would be subject to a number of assumptions and would be speculative and not meaningful. Representatives of the Investment Manager stated that they did not expect the Investment Manager to realize any current profits on the International Compounders Portfolio initially, noting the Investment Manager’s agreement to waive its fees and/or reimburse expenses of the International Compounders Portfolio for at least two years following the International Compounders 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 the renewal of the International Compounders Management Agreement. Representatives of the Investment Manager reviewed with the Board information provided on the Investment Manager’s brokerage and soft dollar practices.

Representatives of the Investment Manager 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 manager to the International Compounders 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 recordkeeping services, and noted that the International Compounders 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 International Compounders Portfolio’s Open Shares.

Annual Report  327

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 evaluation of the International Compounders Management Agreement. Based on its discussions and considerations as described above, with the assistance of independent legal counsel and in the exercise of its business judgment, the Board made the following conclusions and determinations.

· 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 the significant services and infrastructure associated with an approximately $240 billion global asset management business.

· The Board concluded that the fee to be paid to the Investment Manager was appropriate under the circumstances and in light of the factors and 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 International Compounders Portfolio increase and determined that it would continue to consider potential material economies of scale.

In evaluating the International Compounders Management Agreement, the Board relied on the information described above as well as other information provided by the Investment Manager. The Board also relied on its previous knowledge of the Fund, gained through meetings and other interactions with the Investment Manager, and the services provided to the Fund by the Investment Manager. The Board considered these conclusions and determinations in their totality and determined to approve the International Compounders Management Agreement. In deciding whether to vote to approve the International Compounders 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.

328  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.

2000 Crown Colony Drive

Quincy, Massachusetts 02169

Telephone: 617-483-7000

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

Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardassetmanagement.com
Performance information as of the most recent month end is available online at www.lazardassetmanagement.com. LZDPS020

Lazard Funds

Annual Report

December 31, 2018

Fixed Income Funds

Lazard Emerging Markets Debt Portfolio
Lazard Global Fixed Income Portfolio
Lazard US Corporate Income Portfolio
Lazard US Short Duration Fixed Income Portfolio

Important Information on Paperless Delivery

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. Shareholders who hold accounts directly with the Fund may elect to receive shareholder reports and other communications from the Fund electronically by signing up for paperless delivery at www.icsdelivery.com/lazardassetmanagement. If you own these shares through a financial intermediary, you may contact your financial intermediary.

You may elect to receive all future reports in paper free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by following the instructions included with this disclosure and visiting www.fundreports.com. If you own these shares through a financial intermediary, you may contact your financial intermediary or follow instructions included with this disclosure to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the fund complex or your financial intermediary.

PRIVACY NOTICE

WHAT DOES LAZARD DO WITH YOUR PERSONAL INFORMATION?

Financial companies choose how they share your personal information. U.S. federal law gives our clients the right to limit some but not all sharing. U.S. federal and other applicable 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.

We do not disclose nonpublic personal information about our clients or former clients to third parties other than as described below.

Personal information we collect. We collect personal information about you in connection with our providing advisory services to you. The legal basis for our collection of your personal information is our contract with you and our legitimate business interest to provide contractual services to you. The collection of this information is necessary for us to be able to provide advisory services to you and the failure to provide such information will result in our inability to provide our services. This information includes your social security number (for U.S. persons) and may include other information such as your:

· Assets and income;

· Investment experience;

· Transaction history;

· Credit history; and

· Wire transfer instructions.

How we collect this information. We collect this information from you through various means. For example, when you give us your contact information, enter into an investment advisory contract with us, buy securities (i.e., interests in a fund) from us, direct us to buy or sell securities for your account, tell us where to send money, or make a wire transfer. We also may collect your personal information from other sources, such as our affiliates¹ or other non-affiliated companies (such as credit bureaus).

¹ Our affiliates are companies related to us by common ownership or control and can include both financial and nonfinancial companies. Non-affiliates are companies not related to us by common ownership or control and can include both financial and nonfinancial companies.

How we use this information. All financial companies need to share customers’ personal information to run their everyday business and we use the personal information we collect from you for our everyday business purposes. These purposes may include for example:

· To provide advisory services to you;

· To open an account for you;

· To process a transaction for your account;

· To market products and services to you; and/or

· To respond to court orders and legal investigations.

If you are an investor located within a European Union country, please note that personal information may be collected, shared and/or stored outside of the European Union.

Disclosure to others. We may provide your personal information to our affiliates and to firms that assist us in servicing your account and have a need for such information, such as a broker, counterparty, fund administrator or third party service provider that aggregates data in a central repository for access by a broker, counterparty or fund administrator to provide its services. We may also disclose such information to service providers and financial institutions with which we have a formal agreement to provide services relating to our arrangements with you. We require third party service providers and financial institutions with which we have a formal agreement to provide services relating to our arrangements with you to protect the confidentiality of your information and to use the information only for the purposes for which we disclose the information to them. These sharing practices are consistent with applicable privacy and related laws, and in general, you may not limit our use of your personal information for these purposes under such laws. We note that the U.S. federal privacy laws only give you the right to limit the certain types of information sharing that we do not engage in (e.g., sharing with our affiliates certain information relating to your transaction history or creditworthiness for their use in marketing to you, or sharing any personal information with non-affiliates for them to market to you). We may also share your personal information with non-affiliates (such as a government agency or regulatory authority) as required by applicable law.

How we protect your personal information. To protect your personal information from unauthorized access and use, we use security measures that comply with applicable law. These measures include computer safeguards and secured files and buildings.

How long we keep your personal information. We retain your personal information for the duration of your advisory relationship with us and for a period of time thereafter as required by applicable law.

Your rights with respect to this information. If you are an investor located within a European Union country, you have the following rights with respect to your personal information:

· The right to request and obtain a copy of your personal information that we maintain;

· The right to correct your personal information that we maintain;

· The right to request the erasure of your personal information from our systems, subject to applicable recordkeeping requirements applicable to us; and

· The right to lodge a complaint with a supervisory authority.

Who is providing this Privacy Notice. This Privacy Notice relates to the following entities:

· Lazard Asset Management LLC

· Lazard Asset Management (Canada), Inc.²

· Lazard Asset Management Securities LLC

Who to contact with questions. If you have any questions about this Privacy Notice, please call (800) 823-6300 or visit our website at http://www.lazardassetmanagement.com.

² Lazard Asset Management (Canada), Inc. does not disclose any non-public personal information about its customers to any third party, except as permitted by or required by any applicable law, including the laws of the United States and Canada.

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard (unaudited)
4	Investment Overviews (unaudited)
15	Performance Overviews (unaudited)
20	Information About Your Portfolio’s Expenses (unaudited)
23	Portfolio Holdings Presented by Asset Class/Credit Rating and Region
24	Portfolios of Investments
24	Lazard Emerging Markets Debt Portfolio
45	Lazard Global Fixed Income Portfolio
53	Lazard US Corporate Income Portfolio
66	Lazard US Short Duration Fixed Income Portfolio
70	Notes to Portfolios of Investments
72	Statements of Assets and Liabilities
76	Statements of Operations
78	Statements of Changes in Net Assets
83	Financial Highlights
93	Notes to Financial Statements
119	Report of Independent Registered Public Accounting Firm
121	Board of Directors and Officers Information (unaudited)
124	Tax and Other Information (unaudited)

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 (unaudited)

Dear Shareholder,

In 2018, volatility returned to global markets. The economic trajectories of the major economies diverged during the year, with US growth accelerating and non-US growth decelerating. Tighter US monetary policy, declining oil prices, and trade tensions between the United States and China also increased risk aversion. Against this backdrop, almost every major developed and emerging equity market declined during the year. Despite the uptick in global market turbulence, our portfolio management teams remain steadfast in their investment discipline and continue to focus on fundamental research.

The US equity market ended the year down after a severe fourth quarter sell-off. During the quarter, volatility as measured by the CBOE Volatility^® Index increased, corporate credit spreads widened, the yield curve flattened, and the yield on the 10-year US Treasury declined. Crude oil prices fell by nearly $29 per barrel on the back of concerns over flagging global demand and elevated supply.

In Europe, political risks increased throughout the year as the Italian election led to a governing coalition of the League and the Five Star Movement. The United Kingdom struggled with finalizing a resolution to exit the European Union (“Brexit”) and German Chancellor Angela Merkel announced she would step down in 2021. The European Central Bank ended its monthly asset purchase program in December, but kept its benchmark interest rate at zero.

Emerging markets equities and debt fell significantly in 2018 as macroeconomic and geopolitical developments weighed on market sentiment. The rising US dollar pressured most emerging markets during the year. In Turkey, uncertainty related to the country’s trade deficit was exacerbated by US sanctions and a diplomatic dispute with the United States over a detained American pastor. Uncertainty about trade and concerns about decelerating Chinese growth rippled through the global economy. Despite these challenges, our emerging markets equity and debt teams believe that many emerging markets still have solid fundamentals, and are well positioned to grow faster than the global growth average.

2  Annual Report

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

Annual Report  3

The Lazard Funds, Inc. Investment Overviews (unaudited)

Emerging Markets Debt

Emerging markets debt (as represented by 50% JPMorgan EMBI Global Diversified^® Index/50% JPMorgan GBI-EM Global Diversified^® Index) (the “Global Diversified Index”) fell 5.15% in 2018, as measured in US dollar terms—the lowest return for the asset class since 2015. The negative performance was driven by declines in both local currency and external debt. Coming off abnormally low volatility in 2017, 2018 may have felt like a roller coaster for emerging markets debt investors, but the volatility was in fact in line with historical averages for the asset class. The decline in local currency debt was mainly driven by spot depreciation in emerging markets currencies, which ended the year down almost 10% versus the US dollar. Meanwhile, external debt posted only the third negative calendar year return for the JPMorgan EMBI Global Diversified Index in the past 20 years, primarily driven by credit spreads, which ended the year 130 basis points (bps) wider at 415 bps, their widest level since 2016.

Global Fixed Income

In January, broad-based global economic momentum and seemingly euphoric sentiment fed into stronger price levels across most financial markets. The tone changed dramatically in February following uncertainty over new trade tariffs and a host of other negative news, especially in the tech sector. Volatility returned to markets as equities and other risky assets tumbled, giving back most of their earlier gains. Contrary to the norm in these “flight to quality” conditions, US yields actually rose slightly during much of the period, possibly due to new US fiscal and deficit-related concerns, in addition to elevated Treasury bill issuance. Jerome Powell succeeded Janet Yellen as US Federal Reserve (“Fed”) Chair during the first quarter. Global bond markets were mixed and volatile during the second quarter. Select core “safe haven” markets rallied in reaction to deteriorating conditions in equities and emerging markets, and new, market-unfriendly political developments in Italy. Softer economic data across Europe and other regions (especially relative to strength in the United States) also began to cast doubt on the continuity of global “synchronous growth.” In an attempt to cap oil prices, OPEC members decided in June to increase production, which added to the bullish tone in bond markets as prices of Brent crude oil

4  Annual Report

dropped on the news. Also in June, the Fed tightened interest rates as expected with its seventh rate hike since the Fed began raising rates at the end of 2015, setting a new 2% upper target for the federal funds rate. The 10-year US Treasury yield briefly broke above the closely watched 3.00% level in mid-April, and again in late-May, but closed the second quarter lower at 2.86%. Other global central bank meetings were generally “non-events” as the European Central Bank, Bank of Japan (“BoJ”), and other central banks continued to postpone any rate normalization plans. Italian bonds took the spotlight as their 10-year yields surged to 3.16% in late May from lows of 1.75% in April, finally settling back to 2.67% by quarter-end. In contrast to the developed market central banks, of note was the policy response in Argentina, where the Central Bank of Argentina hiked rates aggressively in an attempt to contain currency outflows.

Global interest rate movements were mixed and volatile during the third quarter, with continued and notable divergence seen between developed and emerging markets. Despite mostly upbeat economic data for the United States, Europe, and other select countries, escalating trade/tariff wars took their toll in other parts of the world, including China. Continued pressure on countries such as Argentina and Turkey spilled over into other emerging markets. US rates edged higher, with the 10-year Treasury rising from 2.87% (as of the end of June) to close September at 3.06%. Overall, US growth was buoyant, supported by fiscal stimulus and higher consumer spending. Housing market data, however, was weaker, perhaps due to the impact of higher mortgage interest rates, which approached 5% levels. Core European yields moved higher on an improvement in growth compared to prior quarters. Unfortunately, for different reasons, the 10-year Italian bond closed the quarter at a yield of 3.15%, 268 bps above a similar maturity German bund. At the end of July, the highly anticipated BoJ meeting produced a widening of the “trading band” for various bond maturities (+/- 20 bps for the 10-year Japanese Government Bond). Investors quickly tested the resolve of the central bank, and rates for longer maturities moved to the higher end of recent ranges.

Annual Report  5

Global interest rates stayed within familiar ranges early in the fourth quarter, but they rallied across many markets in November and December, bucking the year-to-date trend, especially in the United States. Growing fears of a global economic slowdown, ongoing political/trade developments, equity market stress, and a collapse in oil prices, all contributed to the rally in “safe haven” bonds. Furthermore, the Fed’s comments tilted away from a more hawkish stance compared to prior communiques, as committee members perhaps weighed financial conditions and the growth outlook, while the core personal consumption expenditures inflation rate was under 2%. Investors appeared to be getting more comfortable with the potential for fewer (or no) US rate hikes in 2019, following the Fed’s fourth 2018 hike in December to 2.50%. The bellwether 10-year Treasury finished the year at 2.68% after topping out near 3.25% in early November. Similar-maturity Japanese and German bonds ended the year at 0.24% and 0.00%, respectively. Rates also rallied strongly in “higher quality” markets such as Australia, Canada, Singapore, and the United Kingdom. In fact, rates in Australia and Poland were top performers for the year, with each market gaining around 5% in local currency terms. In Mexico, the government transition and policy communications negatively impacted bonds and other local assets.

After relative stability in the middle of the year, credit sectors were under pressure at year-end. The sectors came under pressure in sympathy with weaker equity markets and, especially, high-yield bonds, whose spreads continued to widen, even with the drought in new supply/issuance in December. Approximately 16% of the below investment grade universe consists of energy companies, so the sell-off in oil contributed to the negative price action during the period. Investment grade corporates and emerging market debt sectors lagged the government bond rally, also resulting in spread widening across the board. Corporate bonds with the lowest investment grade ratings (BBBs) now represent almost half of the overall investment grade universe, which could potentially lead to an increase in the number of “fallen angels” moving into the high yield arena if there is further deterioration in select sectors. Concern is also mounting over leveraged loans, as the growth of this market has outpaced high yield issuance.

6  Annual Report

While US dollar strength persisted for a majority of the year, currency markets were mixed going into year-end. There was some consolidation for the Turkish lira, South African rand, Indian rupee, and other select currencies, which were under severe distress in prior months. A combination of the rally in US rates and a more dovish Fed tone could have been catalysts for these moves, but the collapse in oil prices is also a significant positive driver for countries such as Turkey and India, who are net importers of oil. In contrast, oil producing countries such as Canada and Norway saw their currencies lose about 5% versus the US dollar (in the fourth quarter), which underscores the importance of the price of oil as a factor for currency markets. Overall, the Argentinian peso and Turkish lira dropped over 50% and 28%, respectively, on a year-to-date basis, while the Japanese yen reasserted its safe-haven status and rallied with US rates to gain close to 3% percent versus the US dollar for the year. Conversely, all other G10 currencies depreciated versus the US dollar for the year, with the euro and New Zealand dollar down close to 4.5% and 5.0%, respectively, and the Canadian dollar and Australian dollar down almost 8% and 10%, respectively.

Going forward, we believe that investors will remain focused on the Chinese renminbi and whether the “psychological” exchange rate level of 7 renminbi versus the US dollar will hold, given the trade friction and ongoing trade negotiations between the United States and China. A renminbi weaker than 7 could spur weaker currency movements across other Asian countries that compete on exports. We are skeptical that China is seeking a weaker currency, as we believe that they want to maintain positive sentiment and avoid outflows. In addition, a weak renminbi could hurt some domestic entities who borrow in other currencies, especially the US dollar.

US Corporate Income

The high yield bond market finished down for the year after coming under pressure during the fourth quarter amid worries about slowing growth, the US-China trade war, Fed policy, a fall in oil prices, and fund outflows. Although up 2.49% at the end of the third quarter, the broad-based ICE Bank of America Merrill Lynch High Yield Cash Pay^® Index fell 4.64% in the fourth quarter to finish

Annual Report  7

the year down 2.26%. Concurrently, the ICE Bank of America Merrill Lynch High Yield Cash Pay Index’s option adjusted spread (“OAS”), which had narrowed 34 bps through the end of the third quarter to 325 bps, widened 205 bps in the volatile fourth quarter to finish 171 bps wider on the year.

Throughout most of the year, lower quality credits outperformed on the upside, but that reversed in the fourth quarter. The ICE Bank of America Merrill Lynch CCC Rated^® Index finished the year returning -4.20% after being down -10.42% in the fourth quarter. The ICE Bank of America Merrill Lynch B^® Index and ICE Bank of America Merrill Lynch BB^® Index gave up positive returns through the third quarter and finished the year in negative territory, registering -1.54% and -2.45% returns for the year after falling -4.86% and -2.99%, respectively, in the fourth quarter.

After several years of strong issuance, the primary market was quieter in 2018. Overall, gross new issuance for 2018 was down 43% year over year, totaling $187.4 billion—of which 60.9% was marked for refinancing, 21.5% for acquisitions/leveraged buyouts, 14.6% for general corporate purposes, and 1.8% to fund dividends. Net of redemptions, issuance was down 39% year over year at $73.3 billion. Alongside the market volatility, new high yield issuance was especially muted during the weak fourth quarter, totaling only $19.1 billion across 36 issues. In December, no deals priced at all. This marked only the second time, and first since November 2008, that no high yield deal priced in a calendar month.

The lack of supply provided the market support in light of the heavy outflows from high yield bond funds and exchange-traded funds (“ETFs”). Investors pulled $45.1 billion from both high yield and mutual funds and ETFs in 2018. This outflow was on the heels of a $20.3 billion overall outflow in 2017.

Default activity continued to be modest during the year. For 2018, the US high yield default rate was 1.87%, which is below the long-term average of 3%. Importantly, the 2018 default rate was skewed higher by the default of iHeartMedia Inc., which accounted for 38% of the year’s high yield and loan default activity. Excluding iHeart-

8  Annual Report

Media, the high yield default rate for 2018 was an even more sanguine 1.08%. Also, more than 60% of the year’s defaults occurred across energy, retail, and consumer products, though energy defaults continued to moderate from their levels in 2015 and 2016.

US Short Duration Fixed Income

The US economy is in its second longest expansion in the post-World War II period—currently 114 months and counting. Given the length of the expansion, market participants have increasingly been looking for cues that might indicate an imminent recession. A classic indicator is an inversion of the yield curve, when the level of long-term US Treasury yields falls below short-term yields. Indeed, the yield on the 5-year US Treasury fell below that of the 2-year US Treasury in early December. While this, however, has increased the number of forecasts for negative US growth, we do not believe that the yield curve is currently a reliable indicator of recession.

The yield curve inverted prior to the last nine recessions with an average lead time of 14 months. The recent flattening of the 10-year/3-month spread and inversion of the 5-year/2-year spread has raised investor concerns about a looming recession. While the shape of the yield curve bears an unsettling resemblance to the flattening curves that preceded past inversions, we believe that there is now nothing in the economy’s fundamentals to signal an imminent recession.

Second, the real US federal funds rate today is barely breaching zero, which we believe to be a very accommodative rate. The economy has never gone into a recession with the real fed funds rate at or below zero. In addition, inflation is a classic symptom of late-cycle economic expansion, yet nearly nine years after the global financial crisis, we believe the economy is still not showing the telltale signs of a slowdown. Consider, for example, that capital expenditures are growing alongside corporate earnings, reflecting an upbeat business outlook. At the same time, the declining unemployment rate, while it may have bolstered consumer confidence, has yet to result in wage increases that could broadly force prices higher.

Annual Report  9

The absence of fundamental economic factors weighing on the long end of the yield curve provokes investors to ask what is keeping rates abnormally low. Ordinarily, the difference between the yield on 10-year US Treasury bonds and the rate of domestic inflation runs at about 1½%. As of the end of 2018, with the yield at or below 3% and inflation at 2%, the difference is fully a third below historical precedent.

We believe that market technical factors explain the anomaly—and with it, the flattening yield curve. The market crash accompanying the global financial crisis may have happened a decade ago, but to judge from the ongoing demand for long-dated sovereign debt—US Treasury bonds, German bunds, Japan government bonds, and the like—the memory is still fresh. At that time, such sovereign debt managed to come out ahead of the carnage. The protection it provided against an outlier event has made demand for it relatively inelastic. Thus, investors view it first and foremost as a form of portfolio insurance.

Nevertheless, portfolio protection can come on widely divergent terms. The market crash of 2008 illustrates the point. The S&P 500^® Index tumbled more than a third and the MSCI All Country World^® Index (ex-US) lost nearly half its value. In 2018, an index of G7 sovereign debt (ex-US) gained 9.7%, but 7- to 10-year US Treasuries fared even better as their yields tumbled and prices soared, returning 17.9%.

Lazard Emerging Markets Debt Portfolio

For the year ended December 31, 2018, the Lazard Emerging Markets Debt Portfolio’s Institutional Shares posted a total return of -7.45%, while Open Shares posted a total return of -7.69%, and R6 Shares posted a total return of -7.24%, as compared with the -5.15% blended return for the Global Diversified Index.

The primary driver of underperformance was bottom-up sovereign credit selection. The Portfolio held an overweight position in high yield countries, and several top active risk positions—e.g., Egypt, Kenya, and Ghana—lagged amid the general risk-off environment, weakness in oil prices and, in certain cases, negative idiosyncratic

10  Annual Report

developments. The Portfolio’s overweight positions in Venezuela and Argentina sovereign debt also detracted from relative performance. These losses were partially offset by a modest overweight position in the stressed debt of Mozambique due to positive developments in the restructuring process as well as an overweight position in Angola, which outperformed, as President Joao Lourenco pursued structural reforms and initiated discussions with the International Monetary Fund.

In local currency debt, bottom-up duration positioning was beneficial, but it was more than offset by positioning in individual currencies. Specifically, overweight positions in select higher-yielding currencies, including the Russian ruble and the Brazilian real, detracted. The ruble was dragged down mainly by heightened risk of additional US sanctions, while the real underperformed amid uncertainty leading up to the October 2018 presidential election.

From a top-down perspective, the Portfolio’s overall asset allocation between local currency and hard currency debt was beneficial. Given our constructive view on the asset class, we entered 2018 with a significant overweight position in local currency debt. This view proved correct as local debt outperformed hard currency debt by over 6% during the first quarter of 2018, after which we rotated back to a neutral asset allocation position.

The Portfolio management team uses currency forwards and interest rates swaps, both opportunistically, for direct currency and rates exposure, and defensively, for hedging purposes. For the year, the use of derivatives did not materially impact the Portfolio’s relative performance.

Lazard Global Fixed Income Portfolio

For the year ended December 31, 2018, the Lazard Global Fixed Income Portfolio’s Institutional Shares posted a total return of -2.06%, while Open Shares posted a total return of -2.31%, as compared with the -1.20% return for the Bloomberg Barclays Global Aggregate^® Index.

Annual Report  11

The Portfolio’s underweight exposure to the euro-zone and Japanese government bonds (no exposure) detracted from performance as well as currency exposure to the Australian dollar and Mexican peso. Security selection, through spread product, added value in many global regions, including Norway and Australia, but in the United States, security selection slightly detracted from performance.

The Portfolio’s performance was helped by country allocation, with its overweight exposures to the United States, Australia, New Zealand, and Poland, along with its lack of exposure to Italy (after April). The Portfolio’s overweight exposure to the Japanese yen as well as its tactical allocation to the Canadian dollar also helped performance.

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) produced a modest negative contribution to relative performance.

Lazard US Corporate Income Portfolio

For the year ended December 31, 2018, the Lazard US Corporate Income Portfolio’s Institutional Shares posted a total return of -2.73%, while Open Shares posted a total return of -2.78%, and R6 Shares posted a total return of -2.43%, as compared with the -2.01% return for the ICE BofAML BB-B US Cash Pay Non-Distressed High Yield^® Index (the “Cash Pay Index”).

Overall, underperformance was driven by the Portfolio’s underweight to B credits and overweight to BB and BBB rated credits. However, the higher-quality bias of the Portfolio contributed to outperformance versus the index in the volatile fourth quarter. Underweights to the energy, industrials, and lending-focused financials sectors, and an overweight to media companies, helped performance for the year. Overweights to automotive, leisure, and technology and electronics companies also hurt performance.

On a security level, a position in oil and gas services provider Weatherford’s 8.25% due 2023 was a detractor, especially in the

12  Annual Report

fourth quarter when oil prices fell. Also, a position in auto parts maker Tenneco’s 5% due 2026 was weaker due to softening in the auto market. In contrast, positions in telecom and media provider Cequel Communication Holdings I’s 7.5% due 2028 and media and entertainment company Clear Channel Worldwide Holdings, Inc.’s 6.5% due 2022 helped performance.

The Portfolio maintained an overweight to BB and BBB credits, and a material underweight to B credits versus the index. This overweight to higher-rated credits is reflected in the Portfolio’s 298 bp OAS versus the 427 bp OAS of the index. Yields moved higher as prices fell and the Portfolio finished the year with a current yield of 5.7% versus 6.3% for the index. Strategy duration of 4.1 years remains below the index’s 4.3 years.

Lazard US Short Duration Fixed Income Portfolio

For the year ended December 31, 2018, the Lazard US Short Duration Fixed Income Portfolio’s Institutional Shares posted a total return of 1.08%, while Open Shares posted a total return of 0.88%, as compared with the 1.59% return for the ICE BofAML 1-3 Year US Treasury^® Index.

An overweight to short duration corporates was the main detractor for the year.

Underweighting the 2-3 year part of the curve and overweighting consumer asset-backed securities added to returns in 2018.

We maintain a duration positioning that is short relative to the index as we are concerned about the possibility of increasing short-term rates. The Portfolio maintains a significant allocation to credit positions, particularly in BBB corporates. US financials remain a sizable portion of the credit positioning, but we have decreased exposure to industrials. We have also decreased our allocation to agency mortgage-backed securities. We remain significantly underweight US Treasuries, but have been increasing our exposure in recent months.

Annual Report  13

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 DST Asset Manager Solutions, Inc., the Fund’s transfer and dividend disbursing agent (“DST”); 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, 2018, except as otherwise indicated; 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.

14  Annual Report

The Lazard Funds, Inc. Performance Overviews (unaudited)

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, 2018

	One	Five	Since
	Year	Years	Inception	†
Institutional Shares**	–7.45%	0.29%	1.68%
Open Shares**	–7.69%	–0.01%	1.38%
R6 Shares**	–7.24%	N/A	0.57%
JPMorgan EMBI Global Diversified Index	–4.26%	4.80%	5.44%
			(Institutional and Open Shares) 1.48% (R6 Shares)
JPMorgan GBI-EM Global Diversified Index	–6.21%	–0.96%	–0.05%
			(Institutional and Open Shares) 1.87% (R6 Shares)
Global Diversified Index	–5.15%	1.95%	2.73%
			(Institutional and Open Shares) 1.74% (R6 Shares)

† The inception date for the Institutional and Open Shares was February 28, 2011 and for the R6 Shares was July 28, 2016.

Annual Report  15

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, 2018

	One	Five	Since
	Year	Years	Inception	†
Institutional Shares**	–2.06%	0.34%	0.11%
Open Shares**	–2.31%	0.05%	–0.19%
Bloomberg Barclays Global Aggregate Index	–1.20%	1.08%	0.91%

† The inception date for the Portfolio was March 30, 2012.

16  Annual Report

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, 2018

	One	Five	Ten	Since
	Year	Years	Years	Inception	†
Institutional Shares**	–2.73%	2.91%	8.07%	4.03%
Open Shares**	–2.78%	2.66%	7.77%	3.53%
R6 Shares**	–2.43%	N/A	N/A	1.80%
Cash Pay Index	–2.01%	3.96%	8.74%	6.12%
				(Institutional Shares) 6.07%
				(Open Shares) 2.90% (R6 Shares)

† 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  17

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, 2018

	One	Five	Since
	Year	Years	Inception	†
Institutional Shares**	1.08%	0.67%	1.13%
Open Shares**	0.88%	0.61%	0.98%
ICE BofAML 1-3 Year US Treasury Index	1.59%	0.81%	0.81%

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

Notes to Performance Overviews:

* 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 DST; 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 US Generally Accepted Accounting principles, if any, and also exclude one-time adjustments related to reimbursed custodian out-of-pocket expenses (Note 3 in the Notes to Financial Statements) for Lazard Emerging Markets Debt Portfolio and settlement proceeds received from a class action lawsuit (Lazard US Corporate Income Portfolio R6 Shares), 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 indices are unmanaged, have no fees or costs and are not available for investment.

18  Annual Report

The JPMorgan EMBI Global Diversified Index is a uniquely weighted version of the EMBI Global. Risks associated with the securities comprising this index include fixed income and emerging markets. The JPMorgan GBI-EM Global Diversified Index is a uniquely weighted version of the GBI-EM Global. Risks include fixed income, emerging markets and derivatives. 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 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 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 Bank of America Merrill Lynch High Yield Cash Pay^® Index.

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 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.

Annual Report  19

The Lazard Funds, Inc.

Information About Your Portfolio’s Expenses (unaudited)

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, 2018 through December 31, 2018 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.

20  Annual Report

Portfolio	Beginning Account Value 7/1/18	Ending Account Value 12/31/18		Expenses Paid During Period* 7/1/18 - 12/31/18	Annualized Expense Ratio During Period 7/1/18 - 12/31/18
Emerging Markets Debt
Institutional Shares
Actual	$1,000.00	$	993.50	$4.67	0.93%
Hypothetical (5% Return Before Expenses)	$1,000.00	$	1,020.52	$4.74	0.93%
Open Shares
Actual	$1,000.00	$	992.80	$6.03	1.20%
Hypothetical (5% Return Before Expenses)	$1,000.00	$	1,019.16	$6.11	1.20%
R6 Shares
Actual	$1,000.00	$	993.50	$4.52	0.90%
Hypothetical (5% Return Before Expenses)	$1,000.00	$	1,020.67	$4.58	0.90%
Global Fixed Income
Institutional Shares
Actual	$1,000.00	$	1,001.70	$3.53	0.70%
Hypothetical (5% Return Before Expenses)	$1,000.00	$	1,021.68	$3.57	0.70%
Open Shares
Actual	$1,000.00	$	1,000.50	$4.74	0.94%
Hypothetical (5% Return Before Expenses)	$1,000.00	$	1,020.47	$4.79	0.94%
US Corporate Income
Institutional Shares
Actual	$1,000.00	$	986.80	$2.75	0.55%
Hypothetical (5% Return Before Expenses)	$1,000.00	$	1,022.43	$2.80	0.55%
Open Shares
Actual	$1,000.00	$	987.70	$4.26	0.85%
Hypothetical (5% Return Before Expenses)	$1,000.00	$	1,020.92	$4.33	0.85%
R6 Shares
Actual	$1,000.00	$	987.30	$2.75	0.55%
Hypothetical (5% Return Before Expenses)	$1,000.00	$	1,022.43	$2.80	0.55%

Annual Report  21

Portfolio	Beginning Account Value 7/1/18	Ending Account Value 12/31/18		Expenses Paid During Period* 7/1/18 - 12/31/18	Annualized Expense Ratio During Period 7/1/18 - 12/31/18
US Short Duration Fixed Income
Institutional Shares
Actual	$1,000.00	$	1,010.90	$2.03	0.40%
Hypothetical (5% Return Before Expenses)	$1,000.00	$	1,023.19	$2.04	0.40%
Open Shares
Actual	$1,000.00	$	1,009.40	$3.49	0.69%
Hypothetical (5% Return Before Expenses)	$1,000.00	$	1,021.73	$3.52	0.69%

* 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).

22  Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Asset Class/Credit Rating and Region December 31, 2018

Asset Class/S&P Credit Rating*	Lazard Global Fixed Income Portfolio			Lazard US Corporate Income Portfolio			Lazard US Short Duration Fixed Income Portfolio
Fixed Income
AAA		16.3	%		—	%		2.7	%
AA+		18.7			—			57.3
AA-		5.7			—			—
A+		5.5			—			—
A		5.9			—			2.0
A-		6.3			—			10.4
BBB+		7.8			0.7			19.1
BBB		1.0			0.8			6.4
BBB-		5.9			8.0			—
BB+		5.3			17.3			—
BB		—			23.9			—
BB-		—			25.6			—
B+		—			11.9			—
B		—			5.4			—
B-		—			3.8			—
CCC+		—			1.3			—
CCC-		—			0.2			—
Not Applicable		17.6			1.1			1.6
No Rating		4.0			—			—
Short-Term Investments		—			—			0.5
Total Investments		100.0	%		100.0	%		100.0	%
Asset Class/Region*	Lazard Emerging Markets Debt Portfolio
Fixed Income
Africa		18.3	%
Asia		16.0
Europe		19.0
North America		12.2
South America		32.0
Short-Term Investments		2.5
Total Investments		100.0	%

* Represents percentage of total investments.

Annual Report  23

The Lazard Funds, Inc. Portfolios of Investments

December 31, 2018

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio
Corporate Bonds | 4.9%
Argentina | 0.6%
AES Argentina Generacion SA, 7.750%, 02/02/24	USD		480	$	391,200
Empresa Distribuidora Y Comercializadora Norte, 9.750%, 10/25/22	USD		875		864,050
Genneia SA, 8.750%, 01/20/22 (#)	USD		320		288,400
					1,543,650
Brazil | 0.6%
Cemig Geracao e Transmissao SA:
9.250%, 12/05/24	USD		450		477,562
9.250%, 12/05/24 (#)	USD		250		265,313
Light Servicos de Eletricidade SA/ Light Energia SA, 7.250%, 05/03/23	USD		825		788,906
					1,531,781
Chile | 0.3%
AES Gener SA, 8.375%, 12/18/73	USD		590		588,525
VTR Finance BV, 6.875%, 01/15/24	USD		200		199,750
					788,275
Columbia | 0.2%
AI Candelaria Spain SLU, 7.500%, 12/15/28 (#)	USD		625		602,419
Guatemala | 0.4%
Comcel Trust, 6.875%, 02/06/24	USD		1,020		1,041,675

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

24  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
India | 0.4%
Greenko Dutch BV, 5.250%, 07/24/24	USD		525	$	470,531
Neerg Energy, Ltd., 6.000%, 02/13/22 (#)	USD		200		187,250
Vedanta Resources PLC, 6.375%, 07/30/22 (#)	USD		450		402,188
					1,059,969
Indonesia | 0.2%
Indonesia Asahan Aluminium Persero PT, 6.530%, 11/15/28 (#)	USD		400		419,500
Israel | 0.2%
Altice Financing SA, 6.625%, 02/15/23 (#)	USD		375		360,000
Nigeria | 0.3%
IHS Netherlands Holdco BV, 9.500%, 10/27/21	USD		600		603,338
Panama | 0.1%
Sable International Finance, Ltd., 6.875%, 08/01/22 (#)	USD		217		221,882
Peru | 0.5%
Fondo MIVIVIENDA SA, 7.000%, 02/14/24	PEN		960		304,947
Hunt Oil Co. of Peru LLC Sucursal Del Peru, 6.375%, 06/01/28 (#)	USD		650		654,388
Inkia Energy, Ltd., 5.875%, 11/09/27	USD		400		370,000
					1,329,335

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

Annual Report  25

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
South Africa | 0.2%
Liquid Telecommunications Financing PLC:
8.500%, 07/13/22	USD		200	$	201,054
8.500%, 07/13/22 (#)	USD		200		201,053
					402,107
Tanzania | 0.3%
HTA Group, Ltd., 9.125%, 03/08/22	USD		600		609,000
Turkey | 0.2%
Turkiye Is Bankasi AS, 5.500%, 04/21/19	USD		590		587,050
Zambia | 0.4%
First Quantum Minerals, Ltd.:
7.250%, 05/15/22 (#)	USD		650		602,875
7.250%, 04/01/23 (#)	USD		300		264,000
					866,875
Total Corporate Bonds (Cost $12,471,308)					11,966,856
Foreign Government Obligations | 88.9%
Angola | 2.3%
Republic of Angola:
9.500%, 11/12/25	USD		4,027		4,233,384
8.250%, 05/09/28	USD		210		197,925
8.250%, 05/09/28 (#)	USD		740		697,450
9.375%, 05/08/48	USD		200		187,500
9.375%, 05/08/48 (#)	USD		255		239,062
					5,555,321
Argentina | 3.7%
Argentina Treasury Bills, 0.000%, 01/31/19	ARS		17,800		541,090
Provincia de Buenos Aires, 7.875%, 06/15/27	USD		225		161,727

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

26  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
Republic of Argentina:
50.950% (BADLARPP + 2.500%), 03/11/19 (§)	ARS		1,010	$	26,916
5.625%, 01/26/22	USD		1,550		1,307,812
4.625%, 01/11/23	USD		690		544,238
7.500%, 04/22/26	USD		1,490		1,193,862
15.500%, 10/17/26	ARS		7,540		152,667
6.875%, 01/26/27	USD		1,420		1,079,200
5.875%, 01/11/28	USD		1,829		1,310,021
6.625%, 07/06/28	USD		675		499,500
7.125%, 07/06/36	USD		605		431,819
7.625%, 04/22/46	USD		1,135		820,038
6.875%, 01/11/48	USD		235		163,031
7.125%, 06/28/2117	USD		970		693,550
					8,925,471
Bahrain | 0.2%
Kingdom of Bahrain, 6.125%, 07/05/22	USD		570		580,688
Belarus | 0.2%
Republic of Belarus, 7.625%, 06/29/27	USD		425		434,031
Belize | 0.0%
Republic of Belize, 4.938%, 02/20/34 (Ø)	USD		185		103,831
Brazil | 12.4%
Brazil Letras do Tesouro Nacional:
0.000%, 07/01/19	BRL		26,140		6,540,097
0.000%, 01/01/22	BRL		20,910		4,268,953
Brazil NTN-B:
6.000%, 05/15/23	BRL		3,770		3,281,228
6.000%, 08/15/50	BRL		1,658		1,564,934

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

Annual Report  27

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
Brazil NTN-F:
10.000%, 01/01/23	BRL		15,170	$	4,100,440
10.000%, 01/01/25	BRL		1,750		470,936
10.000%, 01/01/27	BRL		5,945		1,603,486
10.000%, 01/01/29	BRL		4,700		1,214,160
Federal Republic of Brazil:
6.000%, 04/07/26	USD		2,065		2,196,644
4.625%, 01/13/28	USD		2,561		2,463,311
8.250%, 01/20/34	USD		140		171,850
5.000%, 01/27/45	USD		1,505		1,314,618
5.625%, 02/21/47	USD		1,020		962,370
					30,153,027
Chile | 1.8%
Bonos de la Tesoreria de la Republica en pesos:
4.700%, 09/01/30 (#)	CLP		515,000		759,061
5.000%, 03/01/35	CLP		565,000		849,152
6.000%, 01/01/43	CLP		1,625,000		2,751,790
					4,360,003
Colombia | 4.2%
Colombian Titulos De Tesoreria:
7.000%, 05/04/22	COP		5,440,000		1,740,884
10.000%, 07/24/24	COP		5,692,500		2,061,483
7.500%, 08/26/26	COP		4,094,000		1,326,910
6.000%, 04/28/28	COP		3,919,000		1,143,069
7.000%, 06/30/32	COP		5,611,000		1,701,139
Republic of Colombia:
4.500%, 01/28/26	USD		590		588,967
7.375%, 09/18/37	USD		530		641,962
5.000%, 06/15/45	USD		1,135		1,076,831
					10,281,245
Costa Rica | 1.7%
Republic of Costa Rica:
4.250%, 01/26/23	USD		255		223,699
5.520%, 08/23/23	USD		1,140		963,220
4.375%, 04/30/25	USD		1,655		1,397,804

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

28  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
5.625%, 04/30/43	USD		425	$	322,469
7.000%, 04/04/44	USD		205		173,584
7.158%, 03/12/45	USD		1,320		1,130,910
					4,211,686
Czech Republic | 1.1%
Czech Republic, 2.500%, 08/25/28	CZK		55,650		2,608,641
Dominican Republic | 3.4%
Dominican Republic:
8.900%, 02/15/23	DOP		33,900		659,191
6.600%, 01/28/24	USD		60		62,355
5.500%, 01/27/25	USD		1,735		1,715,047
6.875%, 01/29/26	USD		1,540		1,608,915
6.875%, 01/29/26 (#)	USD		235		245,516
5.950%, 01/25/27	USD		675		670,444
6.000%, 07/19/28 (#)	USD		770		766,343
7.450%, 04/30/44	USD		1,070		1,107,985
6.850%, 01/27/45	USD		355		348,344
6.500%, 02/15/48 (#)	USD		1,235		1,163,987
					8,348,127
Ecuador | 1.7%
Republic of Ecuador:
10.500%, 03/24/20	USD		650		654,062
10.750%, 03/28/22	USD		673		677,207
10.750%, 03/28/22 (#)	USD		325		327,031
8.750%, 06/02/23	USD		460		428,835
7.950%, 06/20/24	USD		710		625,688
9.650%, 12/13/26	USD		1,115		1,013,256
8.875%, 10/23/27 (#)	USD		460		396,750
					4,122,829
Egypt | 2.9%
Arab Republic of Egypt:
5.577%, 02/21/23 (#)	USD		520		491,400
5.875%, 06/11/25	USD		255		231,413
7.500%, 01/31/27	USD		2,060		1,962,150
6.588%, 02/21/28 (#)	USD		845		753,106

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

Annual Report  29

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
8.500%, 01/31/47	USD		2,350	$	2,117,937
8.500%, 01/31/47 (#)	USD		1,065		959,831
7.903%, 02/21/48 (#)	USD		710		610,600
					7,126,437
El Salvador | 0.6%
Republic of El Salvador:
7.750%, 01/24/23	USD		525		540,225
5.875%, 01/30/25	USD		181		165,389
6.375%, 01/18/27	USD		180		165,150
8.625%, 02/28/29	USD		150		156,000
8.250%, 04/10/32	USD		115		115,575
7.650%, 06/15/35	USD		65		61,498
7.625%, 02/01/41	USD		150		140,625
					1,344,462
Gabon | 0.2%
Gabonese Republic, 6.375%, 12/12/24	USD		420		375,900
Ghana | 0.9%
Ghana Government Bonds, 24.500%, 04/22/19	GHS		60		12,419
Ghana Treasury Notes:
21.000%, 01/07/19	GHS		3,010		612,338
19.950%, 05/06/19	GHS		150		30,668
Republic of Ghana:
7.875%, 08/07/23	USD		350		342,563
8.125%, 01/18/26	USD		240		229,200
7.625%, 05/16/29 (#)	USD		100		89,375
8.627%, 06/16/49	USD		545		472,787
8.627%, 06/16/49 (#)	USD		600		520,500
					2,309,850
Guatemala | 0.1%
Republic of Guatemala, 4.875%, 02/13/28	USD		215		203,643

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

30  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
Honduras | 0.3%
Republic of Honduras:
8.750%, 12/16/20	USD		310	$	328,988
6.250%, 01/19/27	USD		350		341,687
					670,675
Hungary | 0.3%
Hungary Government Bonds, 6.000%, 11/24/23	HUF		179,300		766,876
Indonesia | 6.0%
Indonesia Government Bonds:
8.375%, 03/15/24	IDR		7,060,000		494,887
8.375%, 09/15/26	IDR		8,980,000		631,338
7.000%, 05/15/27	IDR		2,543,000		164,464
9.000%, 03/15/29	IDR		8,440,000		617,740
8.250%, 05/15/29	IDR		12,943,000		917,842
8.750%, 05/15/31	IDR		35,912,000		2,584,765
7.500%, 08/15/32	IDR		26,327,000		1,704,023
8.375%, 03/15/34	IDR		14,838,000		1,033,140
8.250%, 05/15/36	IDR		12,883,000		880,219
Republic of Indonesia:
4.750%, 01/08/26	USD		2,305		2,332,633
3.500%, 01/11/28	USD		1,730		1,595,925
4.100%, 04/24/28	USD		595		576,406
4.750%, 02/11/29	USD		600		607,587
5.250%, 01/08/47	USD		360		360,000
4.350%, 01/11/48	USD		215		195,720
					14,696,689
Iraq | 0.3%
Republic of Iraq:
6.752%, 03/09/23	USD		250		237,500
6.752%, 03/09/23 (#)	USD		125		118,750
5.800%, 01/15/28	USD		425		379,844
					736,094

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

Annual Report  31

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
Ivory Coast | 0.4%
Ivory Coast:
5.750%, 12/31/32 (Ø)	USD		610	$	535,664
6.125%, 06/15/33	USD		525		434,438
					970,102
Kenya | 0.6%
Republic of Kenya:
6.875%, 06/24/24	USD		565		528,981
8.250%, 02/28/48 (#)	USD		1,140		969,000
					1,497,981
Lebanon | 1.1%
Lebanese Republic:
6.150%, 06/19/20	USD		130		122,525
6.000%, 01/27/23	USD		775		652,937
6.650%, 04/22/24	USD		1,060		882,450
6.250%, 11/04/24	USD		232		186,180
6.200%, 02/26/25	USD		320		254,800
6.600%, 11/27/26	USD		819		638,820
					2,737,712
Malaysia | 0.8%
Malaysia Government Bonds:
3.759%, 03/15/19	MYR		590		142,899
3.955%, 09/15/25	MYR		3,540		852,555
3.844%, 04/15/33	MYR		2,150		482,534
4.642%, 11/07/33	MYR		2,150		529,589
					2,007,577
Mexico | 5.3%
Mexican Bonos:
7.250%, 12/09/21	MXN		111,550		5,488,311
6.500%, 06/09/22	MXN		4,260		203,836
10.000%, 12/05/24	MXN		9,707		525,440
8.500%, 05/31/29	MXN		14,680		735,335
7.750%, 05/29/31	MXN		18,020		847,335
10.000%, 11/20/36	MXN		27,629		1,548,721
7.750%, 11/13/42	MXN		54,220		2,437,441

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

32  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
United Mexican States:
4.150%, 03/28/27	USD		520	$	501,150
3.750%, 01/11/28	USD		50		46,712
5.750%, 10/12/2110	USD		590		553,862
					12,888,143
Mongolia | 0.3%
Mongolia International Bonds:
10.875%, 04/06/21	USD		145		159,137
5.125%, 12/05/22	USD		285		266,972
8.750%, 03/09/24 (#)	USD		220		234,575
					660,684
Morocco | 0.2%
Kingdom of Morocco:
4.250%, 12/11/22	USD		235		235,000
5.500%, 12/11/42	USD		240		244,800
					479,800
Mozambique | 0.9%
Mozambique International Bonds,
10.500%, 01/18/23	USD		2,268		2,120,580
Namibia | 0.0%
Republic of Namibia,
5.250%, 10/29/25	USD		95		85,025
Nigeria | 1.3%
Nigeria Treasury Bills:
0.000%, 01/03/19	NGN		124,140		323,330
0.000%, 01/17/19	NGN		56,840		154,887
Republic of Nigeria:
6.375%, 07/12/23	USD		465		445,237
6.500%, 11/28/27 (#)	USD		800		707,000
7.875%, 02/16/32 (#)	USD		485		440,744
7.625%, 11/28/47	USD		505		424,831
7.625%, 11/28/47 (#)	USD		695		584,669
					3,080,698

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

Annual Report  33

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
Oman | 1.3%
Oman Government International Bonds:
3.625%, 06/15/21	USD		705	$	667,987
4.125%, 01/17/23	USD		405		370,575
4.750%, 06/15/26	USD		310		267,375
5.375%, 03/08/27	USD		255		222,488
5.625%, 01/17/28	USD		1,190		1,045,712
6.750%, 01/17/48	USD		610		501,725
					3,075,862
Pakistan | 0.8%
Islamic Republic of Pakistan:
8.250%, 04/15/24	USD		405		408,214
8.250%, 09/30/25	USD		705		704,083
6.875%, 12/05/27	USD		1,045		941,806
					2,054,103
Paraguay | 0.5%
Republic of Paraguay:
6.100%, 08/11/44	USD		460		476,100
5.600%, 03/13/48 (#)	USD		740		726,125
					1,202,225
Peru | 3.7%
Banco de Credito del Peru, 4.850%, 10/30/20 (#)	PEN		2,300		682,455
Peru Government International Bonds, 5.940%, 02/12/29 (#)	PEN		700		211,735
Republic of Peru:
5.700%, 08/12/24	PEN		2,850		874,850
8.200%, 08/12/26	PEN		5,500		1,914,610
6.350%, 08/12/28	PEN		7,320		2,277,376
6.950%, 08/12/31	PEN		3,690		1,197,128
6.900%, 08/12/37	PEN		5,450		1,739,691
					8,897,845
Philippines | 0.1%
Republic of Philippines, 3.625%, 09/09/25	PHP		15,300		235,178

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

34  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
Poland | 1.6%
Poland Government Bonds, 3.250%, 07/25/25	PLN		14,070	$	3,934,344
Qatar | 0.2%
State of Qatar, 4.500%, 04/23/28	USD		547		569,564
Romania | 0.5%
Romanian Government Bonds:
5.850%, 04/26/23	RON		1,530		398,700
4.250%, 06/28/23	RON		1,530		374,100
5.800%, 07/26/27	RON		1,900		504,698
					1,277,498
Russia | 4.0%
Russia Foreign Bonds:
5.250%, 06/23/47	USD		1,800		1,676,250
5.250%, 06/23/47 (#)	USD		200		186,250
Russia Government Bonds - OFZ:
7.600%, 04/14/21	RUB		34,390		490,764
7.500%, 08/18/21	RUB		34,520		490,043
7.000%, 12/15/21	RUB		80,950		1,130,024
7.000%, 08/16/23	RUB		69,790		954,042
7.750%, 09/16/26	RUB		130,510		1,794,154
7.050%, 01/19/28	RUB		193,170		2,517,101
8.500%, 09/17/31	RUB		41,860		596,932
					9,835,560
Senegal | 0.6%
Republic of Senegal, 6.250%, 05/23/33	USD		1,645		1,414,700
South Africa | 6.4%
Republic of South Africa:
7.750%, 02/28/23	ZAR		65,830		4,515,834
10.500%, 12/21/26	ZAR		28,590		2,166,825
8.250%, 03/31/32	ZAR		62,700		3,914,879

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

Annual Report  35

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
8.500%, 01/31/37	ZAR	32,280	$	1,989,763
6.250%, 03/08/41	USD	220		213,125
5.375%, 07/24/44	USD	200		175,000
5.650%, 09/27/47	USD	850		755,438
8.750%, 02/28/48	ZAR	19,000		1,174,470
6.300%, 06/22/48	USD	730		691,675
				15,597,009
Sri Lanka | 1.5%
Republic of Sri Lanka:
5.750%, 01/18/22	USD	200		188,029
5.875%, 07/25/22	USD	200		186,415
6.125%, 06/03/25	USD	660		591,525
6.850%, 11/03/25	USD	150		139,312
6.850%, 11/03/25 (#)	USD	1,040		965,900
6.825%, 07/18/26	USD	130		119,925
6.750%, 04/18/28 (#)	USD	1,595		1,441,481
				3,632,587
Suriname | 0.1%
Republic of Suriname, 9.250%, 10/26/26	USD	150		143,625
Tajikistan | 0.1%
Tajikistan International Bonds, 7.125%, 09/14/27 (#)	USD	190		165,775
Thailand | 2.3%
Thailand Government Bonds:
3.625%, 06/16/23	THB	4,210		137,374
3.850%, 12/12/25	THB	51,543		1,730,472
3.650%, 06/20/31	THB	36,620		1,225,493
3.775%, 06/25/32	THB	29,470		993,750
3.400%, 06/17/36	THB	34,930		1,129,296
3.300%, 06/17/38	THB	13,820		434,805
				5,651,190

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

36  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
Turkey | 7.3%
Republic of Turkey:
5.625%, 03/30/21	USD	450	$	450,000
6.250%, 09/26/22	USD	1,180		1,187,375
7.250%, 12/23/23	USD	600		615,000
4.250%, 04/14/26	USD	650		558,188
4.875%, 10/09/26	USD	1,155		1,022,175
6.000%, 03/25/27	USD	3,250		3,050,937
6.125%, 10/24/28	USD	3,552		3,307,800
6.000%, 01/14/41	USD	360		304,200
4.875%, 04/16/43	USD	255		188,381
6.625%, 02/17/45	USD	1,028		931,625
5.750%, 05/11/47	USD	805		653,056
Turkey Government Bonds:
10.700%, 02/17/21	TRY	14,565		2,366,727
9.500%, 01/12/22	TRY	860		130,808
10.400%, 03/20/24	TRY	4,260		629,844
8.000%, 03/12/25	TRY	9,350		1,210,156
10.600%, 02/11/26	TRY	4,260		623,807
11.000%, 02/24/27	TRY	3,630		528,811
				17,758,890
Ukraine | 1.0%
Ukraine Government Bonds:
7.750%, 09/01/20	USD	585		565,256
7.750%, 09/01/21	USD	200		188,000
7.750%, 09/01/22	USD	510		468,563
7.750%, 09/01/26	USD	200		170,500
7.750%, 09/01/27	USD	825		698,156
7.375%, 09/25/32 (#)	USD	430		341,850
				2,432,325
Uruguay | 0.2%
Republica Orient Uruguay:
5.100%, 06/18/50	USD	175		172,331
4.975%, 04/20/55	USD	435		415,317
				587,648

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

Annual Report  37

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Emerging Markets Debt Portfolio (continued)
Venezuela | 1.3%
Republic of Venezuela:
7.750%, 10/13/19 («)	USD	245	$	56,820
6.000%, 12/09/20 («)	USD	121		27,157
12.750%, 08/23/22 («)	USD	1,189		281,682
9.000%, 05/07/23 («)	USD	1,412		316,906
8.250%, 10/13/24 («)	USD	2,618		600,635
7.650%, 04/21/25 («)	USD	2,000		450,000
11.750%, 10/21/26 («)	USD	820		198,353
9.250%, 09/15/27 («)	USD	1,239		284,257
9.250%, 05/07/28 («)	USD	1,021		231,001
11.950%, 08/05/31 («)	USD	930		213,365
9.375%, 01/13/34 («)	USD	715		200,200
7.000%, 03/31/38 («)	USD	1,114		250,023
				3,110,399
Zambia | 0.2%
Republic of Zambia, 8.500%, 04/14/24	USD	705		524,344
Total Foreign Government Obligations (Cost $233,228,965)				216,544,499
Quasi Government Bonds | 2.1%
Ecuador | 0.0%
EP Petroecuador, 8.443% (USD LIBOR 3 Month + 5.630%), 09/24/19 (§)	USD	91		90,681
Mexico | 0.2%
Petroleos Mexicanos, 6.500%, 03/13/27	USD	560		526,400

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 Debt Portfolio (continued)
South Africa | 1.0%
Eskom Holdings SOC, Ltd.:
5.750%, 01/26/21	USD	1,265	$	1,191,630
6.750%, 08/06/23	USD	685		623,350
7.850%, 04/02/26	ZAR	9,000		556,350
				2,371,330
Tunisia | 0.1%
Banque Centrale de Tunisie SA, 5.750%, 01/30/25	USD	360		302,400
Turkey | 0.1%
Export Credit Bank of Turkey, 5.375%, 02/08/21	USD	305		294,706
Ukraine | 0.5%
Ukreximbank Via Biz Finance PLC:
9.625%, 04/27/22	USD	265		259,223
9.750%, 01/22/25	USD	925		867,188
				1,126,411
Venezuela | 0.2%
Petroleos de Venezuela SA:
8.500%, 10/27/20 («)	USD	135		125,253
9.000%, 11/17/21 («)	USD	251		46,121
12.750%, 02/17/22 («)	USD	273		51,870
6.000%, 05/16/24 («)	USD	346		51,035
6.000%, 11/15/26 («)	USD	414		60,913
5.375%, 04/12/27 («)	USD	292		43,070
9.750%, 05/17/35 («)	USD	295		55,910
5.500%, 04/12/37 («)	USD	100		14,713
				448,885
Total Quasi Government Bonds (Cost $6,521,507)				5,160,813

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 Debt Portfolio (continued)
Supranational Bonds | 1.0%
European Bank for Reconstruction & Development, 27.500%, 10/02/19	TRY	7,980	$	1,546,152
International Bank for Reconstruction & Development, 7.450%, 08/20/21	IDR	11,610,000		794,134
Total Supranational Bonds (Cost $2,084,177)				2,340,286
Description		Shares		Fair Value
Short-Term Investments | 2.4%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $5,952,735)		5,952,735	$	5,952,735
Total Investments | 99.3% (Cost $260,258,692) (»)			$	241,965,189
Cash and Other Assets in Excess of Liabilities | 0.7%				1,671,653
Net Assets | 100.0%			$	243,636,842

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

40  Annual Report

Lazard Emerging Markets Debt Portfolio (continued)

Forward Currency Contracts open at December 31, 2018:

Currency		Currency			Settlement	Unrealized			Unrealized
Purchased	Quantity	Sold	Quantity	Counterparty	Date	Appreciation			Depreciation
ARS	31,388,000	USD	760,000	CIT	02/26/19		$	16,080		$	—
ARS	20,712,650	USD	491,987	HSB	02/04/19			34,249			—
BRL	170,033	USD	44,156	BRC	01/16/19			—			326
BRL	225,884	USD	57,396	BRC	01/16/19			831			—
BRL	1,203,110	USD	310,000	BRC	01/16/19			130			—
BRL	1,877,508	USD	494,471	BRC	01/16/19			—			10,499
BRL	189,303	USD	48,079	CIT	01/16/19			718			—
BRL	258,227	USD	65,641	GSC	01/16/19			923			—
BRL	238,663	USD	60,536	HSB	01/16/19			985			—
BRL	946,744	USD	245,844	JPM	01/16/19			—			1,798
BRL	1,518,720	USD	400,000	SCB	01/16/19			—			8,513
BRL	222,722	USD	56,554	UBS	01/16/19			858			—
CLP	114,325,000	USD	170,000	BRC	01/18/19			—			5,214
CLP	318,987,000	USD	460,000	BRC	03/04/19			33			—
CLP	519,697,500	USD	750,000	BRC	03/04/19			—			508
COP	54,944,584	USD	17,216	BRC	01/25/19			—			316
COP	837,621,625	USD	261,528	BRC	01/25/19			—			3,888
COP	983,700,000	USD	300,000	BRC	01/25/19			2,571			—
COP	3,436,662,298	USD	1,073,923	BRC	01/25/19			—			16,860
COP	837,621,626	USD	261,593	CIT	01/25/19			—			3,954
COP	54,944,584	USD	17,226	SCB	01/25/19			—			326
COP	54,944,584	USD	17,216	UBS	01/25/19			—			316
COP	837,621,625	USD	261,361	UBS	01/25/19			—			3,721
CZK	13,248,092	USD	584,131	BOA	02/20/19			6,522			—
CZK	8,432,489	USD	371,606	BRC	02/04/19			4,172			—
CZK	13,248,094	USD	584,015	BRC	02/20/19			6,637			—
CZK	4,736,659	USD	210,000	HSB	02/20/19			1,179			—
CZK	13,248,094	USD	584,492	SCB	02/20/19			6,161			—
CZK	13,248,094	USD	584,279	UBS	02/20/19			6,373			—
HUF	273,040,235	USD	962,053	BOA	02/20/19			15,592			—
HUF	156,145,934	USD	550,517	BRC	02/20/19			8,577			—
HUF	244,723,609	USD	862,189	CIT	02/20/19			14,066			—
HUF	56,005,080	USD	200,000	HSB	02/20/19			531			—
HUF	292,842,466	USD	1,031,971	HSB	02/20/19			16,577			—
HUF	256,865,800	USD	905,765	SCB	02/20/19			13,966			—

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

Annual Report  41

Lazard Emerging Markets Debt Portfolio (continued)

Currency		Currency			Settlement	Unrealized			Unrealized
Purchased	Quantity	Sold	Quantity	Counterparty	Date	Appreciation			Depreciation
IDR	6,976,293,593	USD	474,513	BRC	01/15/19		$	10,049		$	—
IDR	5,629,411,342	USD	363,493	BRC	01/29/19			26,940			—
IDR	6,312,400,000	USD	430,000	BRC	01/29/19			7,802			—
IDR	1,753,800,000	USD	120,000	BRC	04/04/19			709			—
IDR	6,976,293,592	USD	474,255	JPM	01/15/19			10,307			—
IDR	11,234,307,053	USD	725,684	JPM	01/29/19			53,482			—
IDR	6,976,293,593	USD	474,255	SCB	01/15/19			10,307			—
IDR	8,173,452,590	USD	527,660	SCB	01/29/19			39,217			—
IDR	6,976,293,593	USD	473,830	UBS	01/15/19			10,733			—
IDR	15,043,562,307	USD	974,653	UBS	01/29/19			68,707			—
MXN	29,822,822	USD	1,445,759	BRC	01/25/19			66,841			—
MXN	4,306,103	USD	210,000	SCB	01/25/19			8,404			—
MYR	4,887,441	USD	1,170,000	SCB	01/28/19			12,240			—
PHP	58,998,150	USD	1,107,011	BRC	01/15/19			13,626			—
PHP	30,000,057	USD	567,431	BRC	02/11/19			1,062			—
PHP	24,420,963	USD	455,700	BRC	02/13/19			6,979			—
PHP	24,379,950	USD	455,700	BRC	02/15/19			6,112			—
PHP	9,415,561	USD	177,921	BRC	02/20/19			344			—
PHP	11,146,800	USD	210,000	BRC	03/11/19			734			—
PHP	79,592,505	USD	1,496,944	CIT	01/15/19			14,871			—
PHP	63,931,972	USD	1,202,429	SCB	01/15/19			11,922			—
PHP	32,762,925	USD	617,469	SCB	02/11/19			3,379			—
PHP	10,635,887	USD	201,300	SCB	02/20/19			69			—
PHP	10,656,995	USD	201,379	SCB	02/20/19			389			—
PHP	21,279,924	USD	402,800	SCB	02/20/19			93			—
PHP	14,792,400	USD	280,000	SCB	03/11/19			—			345
PHP	62,486,296	USD	1,175,197	UBS	01/15/19			11,695			—
PLN	3,010,687	USD	808,216	BOA	02/14/19			—			3,045
PLN	1,165,507	USD	310,000	BRC	02/14/19			1,701			—
PLN	1,996,194	USD	535,848	BRC	02/14/19			—			1,990
PLN	2,101,701	USD	555,196	BRC	02/19/19			6,951			—
PLN	5,847,904	USD	1,570,050	CIT	02/14/19			—			6,099
PLN	2,101,701	USD	555,491	BOA	02/19/19			6,656			—
PLN	2,101,703	USD	555,394	CIT	02/19/19			6,753			—
PLN	3,870,803	USD	1,039,170	HSB	02/14/19			—			3,970

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

42   Annual Report

Lazard Emerging Markets Debt Portfolio (continued)

Currency		Currency			Settlement	Unrealized			Unrealized
Purchased	Quantity	Sold	Quantity	Counterparty	Date	Appreciation			Depreciation
PLN	2,101,701	USD	555,264	JPM	02/19/19		$	6,883		$	—
PLN	3,353,011	USD	900,137	SCB	02/14/19			—			3,415
PLN	2,101,701	USD	555,278	SCB	02/19/19			6,869			—
RON	1,909,272	USD	466,267	BRC	01/22/19			3,544			—
RON	1,909,272	USD	467,180	BOA	01/22/19			2,631			—
RON	1,909,272	USD	466,575	CIT	01/22/19			3,236			—
RON	938,134	USD	230,000	HSB	01/22/19			845			—
RON	1,909,272	USD	466,723	SCB	01/22/19			3,088			—
RON	1,909,272	USD	466,543	UBS	01/22/19			3,269			—
RUB	22,551,886	USD	339,300	SCB	01/22/19			—			16,207
THB	11,709,000	USD	360,000	BRC	01/22/19			—			321
THB	27,238,410	USD	833,234	BOA	01/22/19			3,480			—
THB	27,238,410	USD	833,833	CIT	01/22/19			2,881			—
THB	27,238,410	USD	833,616	JPM	01/22/19			3,097			—
THB	27,238,410	USD	833,616	JPM	01/22/19			3,097			—
THB	27,238,409	USD	834,152	SCB	01/22/19			2,561			—
TRY	2,774,650	USD	500,000	BRC	01/22/19			18,512			—
TRY	3,915,863	USD	710,000	BRC	01/22/19			21,776			—
TWD	27,444,323	USD	897,049	BRC	01/14/19			—			3,330
TWD	19,056,689	USD	622,951	JPM	01/14/19			—			2,373
USD	140,301	ARS	5,934,721	HSB	02/04/19			—			10,480
USD	493,069	BRL	1,877,508	SCB	01/16/19			9,096			—
USD	493,172	BRL	1,877,508	SCB	01/16/19			9,200			—
USD	689,786	BRL	2,625,118	SCB	01/16/19			13,099			—
USD	879,094	BRL	3,348,643	SCB	01/16/19			15,901			—
USD	902,857	BRL	3,419,752	SCB	01/16/19			21,334			—
USD	1,503,318	BRL	5,709,303	SCB	01/16/19			31,609			—
USD	1,938,867	BRL	7,339,968	SCB	01/16/19			46,814			—
USD	248,856	CLP	167,815,765	BRC	01/18/19			6,969			—
USD	514,577	CLP	355,547,033	BRC	01/18/19			2,098			—
USD	146,267	HUF	41,507,665	BOA	02/20/19			—			2,355
USD	454,657	HUF	128,299,562	BRC	02/20/19			—			4,731
USD	154,948	HUF	44,012,438	UBS	02/20/19			—			2,643
USD	530,000	IDR	7,682,350,000	BRC	01/15/19			—			3,604
USD	320,000	IDR	4,603,200,000	BRC	01/29/19			741			—

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

Annual Report  43

Lazard Emerging Markets Debt Portfolio (concluded)

Currency		Currency			Settlement	Unrealized			Unrealized
Purchased	Quantity	Sold	Quantity	Counterparty	Date	Appreciation			Depreciation
USD	620,000	IDR	8,975,492,000	SCB	01/15/19		$	—		$	3,424
USD	695,792	MXN	14,202,165	BRC	01/25/19			—			24,535
USD	660,000	MXN	13,042,029	SCB	01/25/19			—			1,486
USD	1,132,377	MYR	4,757,907	SCB	01/28/19			—			18,529
USD	530,321	PEN	1,794,608	BRC	01/10/19			—			2,282
USD	250,556	PEN	840,113	BRC	02/26/19			1,666			—
USD	350,000	PEN	1,181,705	BRC	03/04/19			—			5
USD	560,000	PEN	1,890,035	BRC	03/04/19			197			—
USD	569,444	PEN	1,909,632	SCB	02/26/19			3,702			—
USD	121,011	PEN	409,803	UBS	03/04/19			—			367
USD	6,890	RON	28,333	JPM	01/22/19			—			82
USD	612,565	TRY	3,310,299	BRC	01/22/19			—			6,046
USD	260,000	TRY	1,398,722	SCB	01/22/19			—			1,386
USD	320,000	TRY	1,727,888	SCB	01/22/19			—			2,898
USD	567,431	TWD	17,252,728	BRC	02/13/19			4,164			—
USD	455,700	TWD	13,953,534	BRC	02/14/19			112			—
USD	455,700	TWD	13,948,977	BRC	02/19/19			93			—
USD	177,921	TWD	5,445,262	BRC	02/21/19			39			—
USD	1,393,056	TWD	42,488,223	JPM	01/14/19			9,435			—
USD	617,469	TWD	18,777,244	SCB	02/13/19			4,430			—
USD	201,300	TWD	6,173,871	SCB	02/21/19			—			383
USD	201,379	TWD	6,164,222	SCB	02/21/19			12			—
USD	402,800	TWD	12,341,792	SCB	02/21/19			—			372
USD	1,160,642	TWD	35,415,795	UBS	01/14/19			7,332			—
USD	1,160,793	TWD	35,415,794	BOA	01/14/19			7,484			—
USD	1,161,326	TWD	35,415,795	UBS	01/14/19			8,017			—
USD	1,225,966	ZAR	17,665,186	BRC	02/19/19			5,077			—
USD	1,226,425	ZAR	17,665,184	BOA	02/19/19			5,537			—
USD	462,174	ZAR	6,686,683	SCB	02/19/19			39			—
USD	1,225,966	ZAR	17,665,186	SCB	02/19/19			5,077			—
USD	1,225,947	ZAR	17,665,186	UBS	02/19/19			5,058			—
UYU	12,260,000	USD	376,374	HSB	03/13/19			—			3,071
ZAR	11,234,158	USD	770,000	HSB	02/19/19			6,423			—
Total gross unrealized appreciation/depreciation on Forward Currency Contracts							$	893,329		$	186,013

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

44  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Fixed Income Portfolio
Corporate Bonds | 32.4%
Australia | 0.9%
Telstra Corp., Ltd., 4.000%, 09/16/22	AUD		70	$	50,826
Belgium | 0.7%
Anheuser-Busch InBev Finance, Inc., 2.650%, 02/01/21	USD		37		36,368
Canada | 1.0%
Canadian Imperial Bank of Commerce, 2.900%, 09/14/21	CAD		75		55,090
France | 1.1%
Schneider Electric SE, 2.950%, 09/27/22	USD		60		58,952
Germany | 2.3%
BMW Finance NV, 0.875%, 08/16/22	GBP		45		55,119
Fresenius Medical Care US Finance II, Inc., 4.125%, 10/15/20	USD		75		75,087
					130,206
Netherlands | 0.6%
BNG Bank NV, 5.000%, 09/16/20	NZD		45		31,467
Spain | 2.0%
Iberdrola International BV, 1.125%, 04/21/26	EUR		100		113,389
Switzerland | 0.8%
ABB Finance USA, Inc., 3.375%, 04/03/23	USD		45		44,949

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

Annual Report  45

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Fixed Income Portfolio (continued)
United Kingdom | 1.8%
Unilever Capital Corp., 3.250%, 03/07/24	USD		100	$	99,358
United States | 21.2%
Amazon.com, Inc., 3.800%, 12/05/24	USD		60		61,405
Apple, Inc., 3.850%, 05/04/43	USD		102		97,089
Ball Corp., 4.000%, 11/15/23	USD		30		29,175
Bank of America Corp., 3.499%, 05/17/22 (§)	USD		60		60,007
Caterpillar Financial Services Corp., 2.550%, 11/29/22	USD		40		38,851
Citigroup, Inc., 3.480% (BBSW 3 Month + 1.550%), 05/04/21 (§)	AUD		90		64,096
Constellation Brands, Inc., 4.250%, 05/01/23	USD		55		55,452
HCA, Inc.:
6.500%, 02/15/20	USD		15		15,375
5.000%, 03/15/24	USD		30		29,700
John Deere Canada Funding, Inc., 2.050%, 09/17/20	CAD		70		50,719
Johnson & Johnson, 3.625%, 03/03/37	USD		70		67,409
JPMorgan Chase & Co., 4.500%, 01/24/22	USD		80		82,427
Microsoft Corp., 4.450%, 11/03/45	USD		92		97,715
Morgan Stanley, 3.625%, 01/20/27	USD		75		71,318
Nestle Holdings, Inc., 2.750%, 04/15/20	NOK		340		39,983
NIKE, Inc., 2.375%, 11/01/26	USD		75		68,739

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

46  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Fixed Income Portfolio (continued)
Sealed Air Corp., 4.875%, 12/01/22	USD		30	$	29,700
Starbucks Corp., 3.100%, 03/01/23	USD		37		36,441
The Goldman Sachs Group, Inc., 3.625%, 01/22/23	USD		55		54,132
The Home Depot, Inc., 3.750%, 02/15/24	USD		55		56,233
United Parcel Service, Inc., 2.350%, 05/16/22	USD		37		36,098
United Rentals North America, Inc., 4.625%, 07/15/23	USD		30		29,437
					1,171,501
Total Corporate Bonds (Cost $1,859,178)					1,792,106
Foreign Government Obligations | 41.5%
Australia | 3.1%
Queensland Treasury Corp.:
3.000%, 03/22/24	AUD		79		57,293
2.750%, 08/20/27	AUD		80		56,156
Western Australian Treasury Corp., 6.000%, 10/16/23	AUD		72		59,097
					172,546
Bahamas | 2.3%
Commonwealth of Bahamas, 6.950%, 11/20/29	USD		118		126,260
Canada | 2.6%
City of Vancouver, 2.900%, 11/20/25	CAD		50		36,845
Province of British Columbia, 4.700%, 06/18/37	CAD		70		63,038
Province of Quebec, 1.650%, 03/03/22	CAD		60		43,224
					143,107

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

Annual Report  47

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Fixed Income Portfolio (continued)
Cayman Islands | 1.8%
Cayman Islands Government Bonds, 5.950%, 11/24/19	USD		100	$	102,550
Chile | 2.9%
Bonos de la Tesoreria de la Republica en pesos:
4.500%, 03/01/26	CLP		75,000		110,004
5.000%, 03/01/35	CLP		35,000		52,602
					162,606
Croatia | 1.9%
Croatia Government International Bonds, 6.625%, 07/14/20	USD		100		104,000
Czech Republic | 2.1%
Czech Republic, 2.500%, 08/25/28	CZK		2,470		115,783
France | 1.0%
Government of France, 1.750%, 06/25/39	EUR		46		56,480
Hungary | 2.1%
Hungary Government Bonds:
3.000%, 06/26/24	HUF		15,600		57,773
3.000%, 10/27/27	HUF		16,590		59,068
					116,841
Ireland | 1.0%
Ireland Government Bonds, 1.700%, 05/15/37	EUR		48		56,026
Mexico | 2.6%
Mexican Bonos, 6.500%, 06/09/22	MXN		1,170		55,983
United Mexican States, 6.750%, 02/06/24	GBP		58		87,234
					143,217

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

48  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Fixed Income Portfolio (continued)
New Zealand | 2.3%
New Zealand Government Bonds:
6.000%, 05/15/21	NZD		75	$	54,709
4.500%, 04/15/27	NZD		95		69,966
					124,675
Norway | 2.2%
Oslo Kommune, 3.550%, 02/12/21	NOK		1,000		120,040
Philippines | 1.8%
Philippine Government Bonds, 4.250%, 04/11/20	PHP		5,460		100,440
Poland | 2.4%
Poland Government Bonds, 2.500%, 07/25/26	PLN		495		131,101
Romania | 3.3%
Romanian Government Bonds:
4.750%, 02/24/25	RON		505		126,306
2.375%, 04/19/27	EUR		50		57,001
					183,307
Singapore | 2.8%
Singapore Government Bonds, 3.000%, 09/01/24	SGD		200		155,281
Spain | 1.2%
Spain Government Bonds, 1.600%, 04/30/25	EUR		55		66,359
United Kingdom | 2.1%
United Kingdom Gilt:
1.750%, 09/07/37	GBP		47		59,788
1.500%, 07/22/47	GBP		46		54,237
					114,025
Total Foreign Government Obligations (Cost $2,426,724)					2,294,644

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

Annual Report  49

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Fixed Income Portfolio (continued)
Quasi Government Bonds | 1.0%
Canada | 1.0%
Export Development Canada, 1.800%, 09/01/22 (Cost $56,535)	CAD		75	$	54,271
Supranational Bonds | 11.1%
African Development Bank, 2.375%, 09/23/21	USD		75		74,509
Asian Development Bank:
1.000%, 12/15/22	GBP		45		56,868
2.125%, 03/19/25	USD		67		64,578
European Bank for Reconstruction & Development, 7.375%, 04/15/19	IDR		310,000		21,471
European Investment Bank:
7.200%, 07/09/19	IDR		170,000		11,676
1.125%, 09/16/21 (#)	CAD		75		53,402
International Bank for Reconstruction & Development:
5.750%, 10/28/19	INR		1,500		21,043
3.500%, 01/22/21	NZD		40		27,518
2.500%, 08/03/23	CAD		115		85,071
2.900%, 11/26/25	AUD		40		28,528
International Finance Corp.:
3.625%, 05/20/20	NZD		70		47,918
2.125%, 04/07/26	USD		125		119,916
Total Supranational Bonds (Cost $633,220)					612,498

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

50  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Fixed Income Portfolio (continued)
US Municipal Bonds | 1.8%
California | 1.8%
California State Build America Bonds, 7.500%, 04/01/34	USD		50	$	68,137
State of California, 4.500%, 04/01/33	USD		30		31,405
Total US Municipal Bonds (Cost $104,842)					99,542
US Treasury Securities | 11.5%
Treasury Inflation Protected Security, 0.125%, 04/15/20	USD		59		58,055
US Treasury Notes:
1.750%, 10/31/20	USD		55		54,239
2.125%, 05/15/25	USD		145		141,138
2.875%, 08/15/28	USD		156		158,523
3.125%, 11/15/41	USD		218		223,579
Total US Treasury Securities (Cost $629,616)					635,534
Total Investments | 99.3% (Cost $5,710,115) (»)				$	5,488,595
Cash and Other Assets in Excess of Liabilities | 0.7%					39,478
Net Assets | 100.0%				$	5,528,073

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

Annual Report  51

Lazard Global Fixed Income Portfolio (concluded)

Forward Currency Contracts open at December 31, 2018:

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
AUD	30,677	USD	22,600	CIT	02/14/19		$	—		$	976
CHF	39,121	USD	39,261	HSB	02/14/19			694			—
EUR	4,010	USD	4,614	CIT	01/10/19			—			17
EUR	11,289	USD	12,872	HSB	01/10/19			70			—
EUR	46,366	USD	53,000	HSB	01/10/19			155			—
EUR	57,869	USD	66,300	HSB	01/10/19			41			—
EUR	841,683	USD	968,516	HSB	01/10/19			—			3,603
JPY	46,571,444	USD	416,147	CIT	02/14/19			10,036			—
JPY	77,156,708	USD	689,481	HSB	02/14/19			16,593			—
MXN	1,550,549	USD	75,783	CIT	02/14/19			2,611			—
NZD	37,631	USD	25,800	HSB	02/14/19			—			523
USD	29,091	AUD	39,856	CIT	02/14/19			996			—
USD	125,161	AUD	173,278	CIT	02/14/19			3,015			—
USD	66,253	AUD	91,747	HSB	02/14/19			1,579			—
USD	57,422	CAD	75,891	CIT	02/14/19			1,773			—
USD	222,978	CAD	294,647	HSB	02/14/19			6,922			—
USD	20,244	CAD	26,746	JPM	02/14/19			631			—
USD	160,539	CLP	111,084,615	CIT	01/31/19			347			—
USD	45,287	CZK	1,030,335	HSB	01/29/19			—			619
USD	62,492	CZK	1,421,814	JPM	01/29/19			—			858
USD	84,400	EUR	74,518	HSB	01/10/19			—			1,028
USD	48,977	GBP	38,010	HSB	02/14/19			430			—
USD	52,404	HUF	14,746,967	JPM	05/08/19			—			690
USD	57,379	HUF	15,940,127	JPM	05/08/19			—			11
USD	16,362	IDR	246,333,337	HSB	02/15/19			—			692
USD	19,065	INR	1,414,348	CIT	01/28/19			—			1,137
USD	29,800	JPY	3,344,708	CIT	02/14/19			—			808
USD	54,100	JPY	6,095,507	HSB	02/14/19			—			1,681
USD	96,946	MXN	1,983,212	HSB	02/14/19			—			3,323
USD	19,946	MXN	408,092	JPM	02/14/19			—			687
USD	165,913	NOK	1,394,054	HSB	02/14/19			4,376			—
USD	202,604	NZD	298,166	HSB	02/14/19			2,325			—
USD	103,134	PHP	5,488,806	HSB	01/28/19			—			1,009
USD	116,235	PLN	438,369	HSB	02/14/19			—			1,001
USD	126,923	RON	519,907	HSB	01/28/19			—			998
USD	10,362	SGD	14,193	HSB	02/14/19			—			60
USD	129,841	SGD	177,854	JPM	02/14/19			—			770
Total gross unrealized appreciation/depreciation on Forward Currency Contracts							$	52,594		$	20,491

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

52  Annual Report

Description	Principal Amount (000)			Fair Value
Lazard US Corporate Income Portfolio
Corporate Bonds | 98.8%
Aerospace & Defense | 0.7%
Bombardier, Inc., 7.750%, 03/15/20 (#)		$	975	$	989,625
Triumph Group, Inc., 4.875%, 04/01/21			1,400		1,256,500
					2,246,125
Auto Components | 2.3%
Dana, Inc., 5.500%, 12/15/24			1,800		1,674,000
Delphi Technologies PLC, 5.000%, 10/01/25 (#)			1,925		1,620,349
Tenneco, Inc., 5.000%, 07/15/26			2,400		1,846,200
The Goodyear Tire & Rubber Co.:
5.125%, 11/15/23			1,800		1,764,000
5.000%, 05/31/26			250		225,000
					7,129,549
Automobiles | 1.0%
Fiat Chrysler Automobiles NV, 5.250%, 04/15/23			2,300		2,260,831
Jaguar Land Rover Automotive PLC, 4.500%, 10/01/27 (#)			1,000		745,000
					3,005,831
Building Products | 1.1%
Griffon Corp., 5.250%, 03/01/22			1,800		1,629,000
USG Corp., 4.875%, 06/01/27 (#)			1,900		1,914,250
					3,543,250
Capital Markets | 1.1%
Icahn Enterprises LP, 6.000%, 08/01/20			1,500		1,498,125
MPT Operating Partnership LP, 6.375%, 03/01/24			1,810		1,855,250
					3,353,375

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

Annual Report  53

Description	Principal Amount (000)			Fair Value
Lazard US Corporate Income Portfolio (continued)
Chemicals | 3.5%
CF Industries, Inc., 3.450%, 06/01/23		$	1,975	$	1,836,750
Huntsman International LLC, 4.875%, 11/15/20			1,600		1,604,000
Mosaic Global Holdings, Inc., 7.300%, 01/15/28			775		910,405
NOVA Chemicals Corp., 5.250%, 08/01/23 (#)			1,800		1,701,000
Platform Specialty Products Corp., 6.500%, 02/01/22 (#)			1,700		1,700,000
Valvoline, Inc., 4.375%, 08/15/25			1,500		1,380,000
WR Grace & Co-Conn, 5.125%, 10/01/21 (#)			1,700		1,683,000
					10,815,155
Commercial Services & Supplies | 3.5%
ACCO Brands Corp., 5.250%, 12/15/24 (#)			1,800		1,611,000
Aramark Services, Inc., 5.000%, 04/01/25 (#)			2,500		2,443,750
Ashtead Capital, Inc., 4.375%, 08/15/27 (#)			1,900		1,710,000
KAR Auction Services, Inc., 5.125%, 06/01/25 (#)			1,800		1,624,500
Multi-Color Corp., 4.875%, 11/01/25 (#)			2,000		1,710,000
The ADT Security Corp.:
6.250%, 10/15/21			1,400		1,419,250
4.125%, 06/15/23			500		457,500
					10,976,000
Communications Equipment | 1.0%
CommScope, Inc., 5.000%, 06/15/21 (#)			1,500		1,485,000
Plantronics, Inc., 5.500%, 05/31/23 (#)			1,750		1,627,500
					3,112,500

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

54  Annual Report

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	$	1,504,800
Standard Industries, Inc., 5.375%, 11/15/24 (#)			1,750		1,642,813
					3,147,613
Containers & Packaging | 4.0%
Ball Corp., 4.000%, 11/15/23			2,400		2,334,000
Cascades, Inc., 5.500%, 07/15/22 (#)			1,500		1,462,500
Crown Americas LLC:
4.500%, 01/15/23			1,800		1,757,250
4.250%, 09/30/26			500		448,750
Owens-Brockway Glass Container, Inc., 5.000%, 01/15/22 (#)			2,392		2,368,080
Reynolds Group Issuer, Inc., 5.750%, 10/15/20			1,454		1,450,027
Sealed Air Corp., 4.875%, 12/01/22 (#)			1,700		1,683,000
Smurfit Kappa Treasury Funding DAC, 7.500%, 11/20/25			750		855,750
					12,359,357
Diversified Consumer Services | 1.1%
Service Corp. International, 4.625%, 12/15/27			2,000		1,880,000
The ServiceMaster Co. LLC, 5.125%, 11/15/24 (#)			1,800		1,701,000
					3,581,000
Diversified Financial Services | 1.9%
Herc Rentals, Inc., 7.750%, 06/01/24 (#)			1,189		1,239,533
INEOS Group Holdings SA, 5.625%, 08/01/24 (#)			1,700		1,506,200
Level 3 Financing, Inc., 5.125%, 05/01/23			1,800		1,737,000

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

Annual Report  55

Description	Principal Amount (000)			Fair Value
Lazard US Corporate Income Portfolio (continued)
Travelport Corporate Finance PLC, 6.000%, 03/15/26 (#)		$	1,500	$	1,515,000
					5,997,733
Diversified Telecommunication Services | 3.3%
CenturyLink, Inc., 5.625%, 04/01/20			1,800		1,791,000
CyrusOne LP, 5.000%, 03/15/24			2,300		2,254,000
Hughes Satellite Systems Corp., 5.250%, 08/01/26			2,391		2,190,754
SBA Communications Corp., 4.875%, 09/01/24			2,300		2,162,000
Zayo Group LLC, 5.750%, 01/15/27 (#)			2,250		2,008,125
					10,405,879
Energy Equipment & Services | 1.2%
Precision Drilling Corp., 5.250%, 11/15/24			1,500		1,245,000
Transocean, Inc., 9.000%, 07/15/23 (#)			1,750		1,741,250
Weatherford International, Ltd., 8.250%, 06/15/23			1,250		753,125
					3,739,375
Entertainment | 1.2%
Live Nation Entertainment, Inc., 4.875%, 11/01/24 (#)			1,800		1,710,000
Netflix, Inc.:
5.375%, 02/01/21			1,550		1,569,375
4.375%, 11/15/26			500		453,750
					3,733,125
Equity Real Estate Investment Trusts (REITs) | 3.6%
Equinix, Inc., 5.375%, 05/15/27			2,700		2,639,250
ESH Hospitality, Inc., 5.250%, 05/01/25 (#)			2,300		2,139,000

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

56  Annual Report

Description	Principal Amount (000)			Fair Value
Lazard US Corporate Income Portfolio (continued)
Iron Mountain, Inc., 6.000%, 08/15/23		$	1,700	$	1,721,250
MGM Growth Properties Operating Partnership LP, 4.500%, 09/01/26			1,800		1,629,000
RHP Hotel Properties LP, 5.000%, 04/15/23			1,775		1,730,625
Uniti Group LP, 6.000%, 04/15/23 (#)			1,700		1,538,500
					11,397,625
Food & Staples Retailing | 1.6%
Albertsons Cos. LLC, 6.625%, 06/15/24			1,750		1,623,125
Ingles Markets, Inc., 5.750%, 06/15/23			1,750		1,728,125
Performance Food Group, Inc., 5.500%, 06/01/24 (#)			1,805		1,746,338
					5,097,588
Food Products | 2.4%
B&G Foods, Inc., 4.625%, 06/01/21			1,500		1,462,500
Darling Ingredients, Inc., 5.375%, 01/15/22			850		843,625
Lamb Weston Holdings, Inc., 4.625%, 11/01/24 (#)			2,300		2,236,750
Post Holdings, Inc., 5.000%, 08/15/26 (#)			1,800		1,638,000
TreeHouse Foods, Inc., 4.875%, 03/15/22			1,500		1,473,750
					7,654,625
Gas Utilities | 1.1%
AmeriGas Partners LP, 5.625%, 05/20/24			1,800		1,701,000
Suburban Propane Partners LP, 5.500%, 06/01/24			1,800		1,674,000
					3,375,000

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

Annual Report  57

Description	Principal Amount (000)			Fair Value
Lazard US Corporate Income Portfolio (continued)
Health Care Equipment & Supplies | 1.2%
Hill-Rom Holdings, Inc., 5.750%, 09/01/23 (#)		$	1,800	$	1,800,000
Hologic, Inc., 4.625%, 02/01/28 (#)			2,300		2,070,000
					3,870,000
Health Care Providers & Services | 3.6%
Centene Corp.:
6.125%, 02/15/24			1,750		1,791,562
4.750%, 01/15/25			500		477,500
DaVita, Inc., 5.125%, 07/15/24			2,300		2,156,250
Encompass Health Corp., 5.125%, 03/15/23			1,801		1,764,980
HCA, Inc., 6.500%, 02/15/20			1,600		1,640,000
Molina Healthcare, Inc., 5.375%, 11/15/22			1,700		1,640,500
Tenet Healthcare Corp.:
4.750%, 06/01/20			700		698,320
4.375%, 10/01/21			1,250		1,209,375
					11,378,487
Hotels, Restaurants & Leisure | 9.5%
1011778 BC ULC, 4.625%, 01/15/22 (#)			1,800		1,741,500
Boyd Gaming Corp.:
6.875%, 05/15/23			1,700		1,717,000
6.375%, 04/01/26			750		725,625
Brinker International, Inc., 5.000%, 10/01/24 (#)			2,000		1,880,000
Cedar Fair LP, 5.375%, 04/15/27			1,800		1,701,000
Cinemark USA, Inc., 4.875%, 06/01/23			1,800		1,728,000
Diamond Resorts International, Inc., 7.750%, 09/01/23 (#)			1,500		1,440,000

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

58  Annual Report

Description	Principal Amount (000)			Fair Value
Lazard US Corporate Income Portfolio (continued)
GLP Capital LP, 4.875%, 11/01/20		$	1,500	$	1,512,750
Golden Nugget, Inc., 6.750%, 10/15/24 (#)			1,622		1,528,735
Hilton Worldwide Finance LLC, 4.625%, 04/01/25			2,315		2,193,462
International Game Technology PLC, 6.250%, 02/15/22 (#)			1,450		1,453,625
KFC Holding Co., 5.250%, 06/01/26 (#)			2,900		2,805,837
MGM Resorts International:
6.625%, 12/15/21			1,000		1,025,000
4.625%, 09/01/26			800		718,000
Scientific Games International, Inc., 5.000%, 10/15/25 (#)			2,000		1,785,000
Six Flags Entertainment Corp., 4.875%, 07/31/24 (#)			2,150		2,026,375
Station Casinos LLC, 5.000%, 10/01/25 (#)			1,700		1,538,500
Wynn Las Vegas LLC, 5.500%, 03/01/25 (#)			2,300		2,144,750
					29,665,159
Household Durables | 0.5%
Tempur Sealy International, Inc., 5.625%, 10/15/23			1,750		1,688,750
Household Products | 1.1%
Energizer Holdings, Inc., 5.500%, 06/15/25 (#)			1,750		1,579,375
Spectrum Brands, Inc., 5.750%, 07/15/25			1,800		1,709,460
					3,288,835
Independent Power & Renewable Electricity Producers | 1.6%
AES Corp., 5.125%, 09/01/27			2,000		1,920,000

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

Annual Report  59

Description	Principal Amount (000)			Fair Value
Lazard US Corporate Income Portfolio (continued)
Calpine Corp., 6.000%, 01/15/22 (#)		$	1,500	$	1,488,750
NextEra Energy Operating Partners LP, 4.500%, 09/15/27 (#)			1,750		1,557,500
					4,966,250
IT Services | 1.2%
First Data Corp.:
5.375%, 08/15/23 (#)			1,600		1,572,000
5.000%, 01/15/24 (#)			500		481,250
VeriSign, Inc., 4.625%, 05/01/23			1,800		1,773,000
					3,826,250
Machinery | 3.4%
Allison Transmission, Inc., 4.750%, 10/01/27 (#)			1,795		1,597,550
Amsted Industries, Inc., 5.000%, 03/15/22 (#)			1,700		1,653,250
Meritor, Inc., 6.250%, 02/15/24			2,000		1,910,000
Mueller Water Products, Inc., 5.500%, 06/15/26 (#)			2,050		1,988,500
SPX FLOW, Inc., 5.625%, 08/15/24 (#)			1,750		1,653,750
Terex Corp., 5.625%, 02/01/25 (#)			1,790		1,666,937
					10,469,987
Media | 13.2%
AMC Networks, Inc., 4.750%, 12/15/22			1,500		1,466,250
Cable One, Inc., 5.750%, 06/15/22 (#)			1,750		1,758,750
CBS Radio, Inc., 7.250%, 11/01/24 (#)			1,500		1,395,000
CCO Holdings LLC:
5.250%, 03/15/21			1,950		1,951,219
5.125%, 05/01/27 (#)			500		465,700

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

60  Annual Report

Description	Principal Amount (000)			Fair Value
Lazard US Corporate Income Portfolio (continued)
Clear Channel Worldwide Holdings, Inc., 6.500%, 11/15/22		$	1,750	$	1,750,000
CSC Holdings LLC:
5.500%, 05/15/26 (#)			1,000		942,500
7.500%, 04/01/28 (#)			1,690		1,685,775
DISH DBS Corp., 5.125%, 05/01/20			1,600		1,580,000
Lamar Media Corp., 5.750%, 02/01/26			2,026		2,051,325
Mediacom Broadband LLC, 5.500%, 04/15/21			1,500		1,494,375
Meredith Corp., 6.875%, 02/01/26 (#)			2,000		1,955,000
Nexstar Broadcasting Inc., 5.875%, 11/15/22			1,750		1,745,625
Outfront Media Capital LLC, 5.250%, 02/15/22			1,500		1,492,500
Sinclair Television Group, Inc., 5.375%, 04/01/21			1,900		1,895,250
Sirius XM Radio, Inc.:
5.375%, 04/15/25 (#)			400		379,000
5.000%, 08/01/27 (#)			2,000		1,827,500
TEGNA, Inc., 6.375%, 10/15/23			1,900		1,904,750
The EW Scripps Co., 5.125%, 05/15/25 (#)			1,800		1,651,500
Tribune Media Co., 5.875%, 07/15/22			1,800		1,809,000
Unitymedia Hessen GmbH & Co. KG, 5.000%, 01/15/25 (#)			1,700		1,660,900
Univision Communications, Inc., 5.125%, 02/15/25 (#)			2,300		2,018,250
Videotron, Ltd.:
5.000%, 07/15/22			1,808		1,798,960
5.125%, 04/15/27 (#)			500		472,500

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

Annual Report  61

Description	Principal Amount (000)			Fair Value
Lazard US Corporate Income Portfolio (continued)
Virgin Media Secured Finance PLC, 5.250%, 01/15/26 (#)		$	2,400	$	2,199,000
WMG Acquisition Corp., 4.875%, 11/01/24 (#)			1,850		1,752,875
					41,103,504
Metals & Mining | 3.5%
Alcoa Nederland Holding BV, 6.750%, 09/30/24 (#)			2,300		2,334,500
Anglo American Capital PLC, 4.875%, 05/14/25 (#)			1,900		1,861,338
Freeport-McMoRan, Inc., 4.550%, 11/14/24			2,700		2,490,750
Glencore Funding LLC, 4.625%, 04/29/24 (#)			2,000		1,982,480
Steel Dynamics, Inc.:
4.125%, 09/15/25			500		459,375
5.000%, 12/15/26			1,800		1,705,500
					10,833,943
Oil, Gas & Consumable Fuels | 10.4%
Andeavor Logistics LP, 4.250%, 12/01/27			1,500		1,416,815
Antero Resources Corp., 5.125%, 12/01/22			1,850		1,739,000
Cenovus Energy, Inc., 3.800%, 09/15/23			2,500		2,411,577
Cheniere Energy Partners LP, 5.250%, 10/01/25			1,250		1,165,625
Diamondback Energy, Inc., 4.750%, 11/01/24			1,800		1,737,000
Energy Transfer Equity LP:
7.500%, 10/15/20			1,250		1,300,000
5.875%, 01/15/24			750		765,660
Gulfport Energy Corp., 6.000%, 10/15/24			1,700		1,504,500
Holly Energy Partners LP, 6.000%, 08/01/24 (#)			2,340		2,293,200

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

62  Annual Report

Description	Principal Amount (000)			Fair Value
Lazard US Corporate Income Portfolio (continued)
Murphy Oil Corp., 6.875%, 08/15/24		$	1,500	$	1,491,791
Newfield Exploration Co., 5.625%, 07/01/24			1,900		1,923,750
Parsley Energy LLC, 5.625%, 10/15/27 (#)			2,000		1,817,500
PBF Holding Co. LLC, 7.000%, 11/15/23			1,400		1,337,000
Range Resources Corp., 5.000%, 08/15/22			1,700		1,521,500
Southwestern Energy Co., 6.200%, 01/23/25			1,800		1,608,750
Sunoco LP, 5.500%, 02/15/26			2,000		1,895,000
Tallgrass Energy Partners LP, 5.500%, 01/15/28 (#)			1,250		1,200,000
Targa Resources Partners LP, 5.250%, 05/01/23			1,800		1,764,000
Whiting Petroleum Corp.:
5.750%, 03/15/21			900		855,000
6.625%, 01/15/26			1,000		857,500
WPX Energy, Inc.:
6.000%, 01/15/22			900		875,250
5.750%, 06/01/26			1,000		905,000
					32,385,418
Personal Products | 0.5%
First Quality Finance Co., Inc., 4.625%, 05/15/21 (#)			1,500		1,451,250
Pharmaceuticals | 0.9%
Endo Finance LLC, 5.750%, 01/15/22 (#)			1,600		1,332,000
Mallinckrodt International Finance SA, 5.750%, 08/01/22 (#)			1,700		1,466,250
					2,798,250

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

Annual Report  63

Description	Principal Amount (000)			Fair Value
Lazard US Corporate Income Portfolio (continued)
Professional Services | 1.1%
IHS Markit, Ltd., 5.000%, 11/01/22 (#)		$	1,750	$	1,767,500
Nielsen Finance LLC, 5.000%, 04/15/22 (#)			1,800		1,719,000
					3,486,500
Road & Rail | 0.4%
The Hertz Corp., 5.500%, 10/15/24 (#)			1,800		1,314,000
Semiconductors & Semiconductor Equipment | 0.3%
Qorvo, Inc., 5.500%, 07/15/26 (#)			1,000		955,000
Software | 1.6%
j2 Cloud Services LLC, 6.000%, 07/15/25 (#)			1,800		1,759,500
Nuance Communications, Inc.:
5.375%, 08/15/20 (#)			392		391,510
5.625%, 12/15/26			1,500		1,425,000
Rackspace Hosting, Inc., 8.625%, 11/15/24 (#)			2,000		1,560,000
					5,136,010
Specialty Retail | 1.1%
Group 1 Automotive, Inc., 5.000%, 06/01/22			1,912		1,807,853
Penske Automotive Group, Inc., 5.500%, 05/15/26			1,800		1,674,000
					3,481,853
Technology Hardware, Storage & Peripherals | 2.2%
Dell International LLC, 7.125%, 06/15/24 (#)			1,775		1,806,063
NCR Corp., 4.625%, 02/15/21			1,568		1,528,800
Seagate HDD Cayman, 4.750%, 01/01/25			1,900		1,684,925

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

64  Annual Report

Description	Principal Amount (000)			Fair Value
Lazard US Corporate Income Portfolio (concluded)
Western Digital Corp., 4.750%, 02/15/26		$	2,000	$	1,735,000
					6,754,788
Textiles, Apparel & Luxury Goods | 0.5%
Hanesbrands, Inc., 4.625%, 05/15/24 (#)			1,750		1,640,625
Trading Companies & Distributors | 2.5%
Aircastle, Ltd., 5.125%, 03/15/21			1,500		1,524,379
HD Supply, Inc., 5.375%, 10/15/26 (#)			2,000		1,937,180
United Rentals North America, Inc.:
4.625%, 07/15/23			1,100		1,079,375
5.750%, 11/15/24			1,650		1,588,125
WESCO Distribution, Inc., 5.375%, 12/15/21			1,600		1,580,000
					7,709,059
Wireless Telecommunication Services | 1.9%
Inmarsat Finance PLC, 4.875%, 05/15/22 (#)			1,750		1,647,118
Sprint Capital Corp., 6.900%, 05/01/19			1,475		1,482,375
Sprint Corp., 7.125%, 06/15/24			500		495,530
T-Mobile USA, Inc., 6.500%, 01/15/26			2,300		2,346,000
					5,971,023
Total Corporate Bonds (Cost $327,221,574)					308,845,646
Total Investments | 98.8% (Cost $327,221,574)				$	308,845,646
Cash and Other Assets in Excess of Liabilities | 1.2%					3,754,149
Net Assets | 100.0%				$	312,599,795

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

Annual Report  65

Description	Principal Amount (000)			Fair Value
Lazard US Short Duration Fixed Income Portfolio
Asset-Backed Securities | 4.3%
Automobiles | 4.3%
GM Financial Automobile Leasing Trust:
2.610%, 01/20/21		$	2,150	$	2,139,747
3.180%, 06/21/21			1,000		1,001,450
World Omni Automobile Lease Securitization Trust:
2.830%, 07/15/21			750		747,581
3.190%, 12/15/21			1,125		1,131,340
Total Asset-Backed Securities (Cost $5,024,776)					5,020,118
Corporate Bonds | 37.5%
Banks | 14.2%
Bank of America Corp., 7.625%, 06/01/19			4,160		4,233,662
Citigroup, Inc.:
2.050%, 06/07/19			553		550,671
2.450%, 01/10/20			1,425		1,413,403
2.400%, 02/18/20			2,640		2,615,713
JPMorgan Chase & Co., 6.300%, 04/23/19			4,272		4,313,773
Wells Fargo & Co., 2.600%, 07/22/20			3,425		3,391,244
					16,518,466
Biotechnology | 2.0%
Amgen, Inc., 5.700%, 02/01/19			2,328		2,332,749
Capital Markets | 7.4%
Morgan Stanley, 5.500%, 01/26/20			4,200		4,294,935
The Goldman Sachs Group, Inc., 5.375%, 03/15/20			4,230		4,324,039
					8,618,974

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

66  Annual Report

Description	Principal Amount (000)			Fair Value
Lazard US Short Duration Fixed Income Portfolio (continued)
Electronic Equipment, Instruments & Components | 2.5%
Amphenol Corp.:
2.550%, 01/30/19		$	1,825	$	1,823,801
2.200%, 04/01/20			1,115		1,098,354
					2,922,155
Food & Staples Retailing | 2.1%
The Kroger Co., 2.300%, 01/15/19			2,395		2,394,172
Internet & Direct Marketing Retail | 1.0%
eBay, Inc., 3.250%, 10/15/20			1,129		1,127,743
IT Services | 2.1%
Fiserv, Inc., 2.700%, 06/01/20			2,510		2,490,971
Media | 1.9%
21st Century Fox America, Inc., 6.900%, 03/01/19			2,197		2,209,605
Oil, Gas & Consumable Fuels | 4.3%
Enterprise Products Operating LLC, 2.550%, 10/15/19			2,525		2,511,648
Valero Energy Corp., 6.125%, 02/01/20			2,375		2,444,115
					4,955,763
Total Corporate Bonds (Cost $43,829,778)					43,570,598

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

Annual Report  67

Description	Principal Amount (000)			Fair Value
Lazard US Short Duration Fixed Income Portfolio (continued)
US Government Securities | 8.8%
Mortgage-Backed Securities | 8.8%
Federal Home Loan Mortgage Corp.:
Pool# 848138, 4.322%, 07/01/38 (§)		$	535	$	563,590
Pool# 848514, 4.439%, 03/01/32 (§)			1,203		1,264,291
Pool# 848517, 4.456%, 12/01/34 (§)			700		735,546
Pool# 849414, 4.367%, 07/01/35 (§)			912		958,938
Pool# G13867, 5.000%, 06/01/25			217		224,854
Federal National Mortgage Association:
Pool# 725296, 3.654%, 03/01/34 (§)			472		492,473
Pool# 995609, 4.541%, 04/01/35 (§)			490		513,993
Pool# AD0701, 4.107%, 02/01/37 (§)			531		553,152
Pool# AE0149, 4.123%, 12/01/36 (§)			491		517,547
Pool# AE0315, 4.500%, 02/01/21			7		7,519
Pool# AL0345, 4.364%, 11/01/35 (§)			378		395,841
Pool# AL3739, 4.178%, 07/01/38 (§)			154		161,633
Pool# AL3746, 4.216%, 01/01/37 (§)			587		618,265
Pool# AL3941, 6.000%, 03/01/24			133		136,598
Pool# AL4118, 4.536%, 05/01/35 (§)			363		379,315
Pool# AL4545, 4.321%, 05/01/39 (§)			386		404,664
Pool# AL4660, 4.133%, 11/01/41 (§)			463		482,073
Pool# AL5574, 4.217%, 12/01/40 (§)			821		865,108
Pool# AL5642, 4.251%, 05/01/39 (§)			965		1,016,568
Total US Government Securities (Cost $10,321,759)					10,291,968
US Treasury Securities | 48.0%
US Treasury Notes:
1.500%, 10/31/19			9,105		9,019,959
1.625%, 12/31/19			20,005		19,805,714
1.500%, 04/15/20			10,585		10,443,574
1.625%, 07/31/20			16,745		16,505,908

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

68  Annual Report

Description	Shares		Fair Value
Lazard US Short Duration Fixed Income Portfolio (concluded)
Total US Treasury Securities (Cost $55,711,113)			$	55,775,155
Short-Term Investments | 0.5%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $597,499)		597,499		597,499
Total Investments | 99.1% (Cost $115,484,925)			$	115,255,338
Cash and Other Assets in Excess of Liabilities | 0.9%				1,057,167
Net Assets | 100.0%			$	116,312,505

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

Annual Report  69

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2018

(#) Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2018, the percentage of net assets for each Portfolio was as follows:

Portfolio	Percentage of Net Assets
Emerging Markets Debt		8.3	%
Global Fixed Income		1.0
US Corporate Income		45.4

(§)	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, 2018.
(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, 2018 which may step up at a future date.
(«)	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:

BADLARPP	— Argentina Deposit Rates Badlar Private Banks
BBSW	— Bank Bill Swap Reference Rate
LIBOR	— London Interbank Offered Rate
NTN-B	— Brazil Sovereign “Nota do Tesouro Nacional” Series B
NTN-F	— Brazil Sovereign “Nota do Tesouro Nacional” Series F

Currency Abbreviations:

ARS	—	Argentine Peso	MYR	—	Malaysian Ringgit
AUD	—	Australian Dollar	NGN	—	Nigerian Naira
BRL	—	Brazilian Real	NOK	—	Norwegian Krone
CAD	—	Canadian Dollar	NZD	—	New Zealand Dollar
CHF	—	Swiss Franc	PEN	—	Peruvian Nuevo Sol
CLP	—	Chilean Peso	PHP	—	Philippine Peso
COP	—	Colombian Peso	PLN	—	Polish Zloty
CZK	—	Czech Koruna	RON	—	New Romanian Leu
DOP	—	Dominican Republic Peso	RUB	—	Russian Ruble
EUR	—	Euro	SGD	—	Singapore Dollar
GBP	—	British Pound Sterling	THB	—	Thai Baht
GHS	—	Ghanaian Cedi	TRY	—	New Turkish Lira
HUF	—	Hungarian Forint	TWD	—	Taiwan Dollar
IDR	—	Indonesian Rupiah	USD	—	United States Dollar
INR	—	Indian Rupee	UYU	—	Uruguayan Peso
JPY	—	Japanese Yen	ZAR	—	South African Rand
MXN	—	Mexican New Peso

Counterparty Abbreviations:

BOA	—	Bank of America NA	HSB	—	HSBC Bank USA NA
BRC	—	Barclays Bank PLC	JPM	—	JPMorgan Chase Bank NA
CIT	—	Citibank NA	SCB	—	Standard Chartered Bank
GSC	—	Goldman Sachs International	UBS	—	UBS AG

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

70  Annual Report

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

Industry†	Lazard Emerging Markets Debt Portfolio			Lazard Global Fixed Income Portfolio
Corporate & Quasi Government Bonds
Air Freight & Logistics		—	%		0.6	%
Automobiles		—			1.0
Banks		0.9			5.3
Beverages		—			1.6
Capital Markets		—			2.3
Communications Equipment		0.2			—
Consumer Finance		—			0.7
Containers & Packaging		—			1.1
Diversified Financial Services		0.1			1.8
Diversified Telecommunication Services		0.3			0.9
Electric Utilities		2.0			2.1
Electrical Equipment		—			1.1
Energy Equipment & Services		0.1			—
Food Products		—			0.7
Health Care Providers & Services		—			2.2
Hotels, Restaurants & Leisure		—			0.7
Independent Power & Renewable Electricity Producers		0.9			—
Internet & Direct Marketing Retail		—			1.1
Machinery		—			0.9
Media		0.1			—
Metals & Mining		0.9			—
Oil, Gas & Consumable Fuels		1.0			—
Personal Products		—			1.8
Pharmaceuticals		—			1.2
Software		—			1.8
Specialty Retail		—			1.0
Technology Hardware, Storage & Peripherals		—			1.8
Textiles, Apparel & Luxury Goods		—			1.2
Thrifts & Mortgage Finance		0.1			—
Trading Companies & Distributors		—			0.5
Wireless Telecommunication Services		0.4			—
Subtotal		7.0			33.4
Foreign Government Obligations		88.9			41.5
Supranational Bonds		1.0			11.1
US Municipal Bonds		—			1.8
US Treasury Securities		—			11.5
Short-Term Investments		2.4			—
Total Investments		99.3	%		99.3	%

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

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

Annual Report  71

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2018	Lazard Emerging Markets Debt Portfolio				Lazard Global Fixed Income Portfolio
ASSETS
Investments in securities, at fair value		$	241,965,189		$	5,488,595
Cash			—			—
Foreign currency, at fair value			1,104,872			10
Receivables for:
Dividends and interest			4,515,885			60,464
Investments sold			600,937			—
Capital stock sold			25,825			—
Amount due from Investment Manager (Note 3)			—			12,573
Gross unrealized appreciation on forward currency contracts			893,329			52,594
Total assets			249,106,037			5,614,236
LIABILITIES
Due to custodian			937,878			28,109
Cash collateral due to broker on forward currency contracts			560,000			—
Payables for:
Management fees			154,136			—
Accrued professional services			40,436			26,681
Accrued custodian fees			36,418			7,853
Accrued distribution fees			142			—
Investments purchased			3,402,121			—
Capital stock redeemed			123,788			138
Dividends			3,352			—
Gross unrealized depreciation on forward currency contracts			186,013			20,491
Line of credit outstanding			—			—
Other accrued expenses and payables			24,911			2,891
Total liabilities			5,469,195			86,163
Net assets		$	243,636,842		$	5,528,073
NET ASSETS
Paid in capital		$	305,756,735		$	5,817,658
Distributable earnings (Accumulated loss)			(62,119,893	)		(289,585	)
Net assets		$	243,636,842		$	5,528,073

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

72  Annual Report

Lazard US Corporate Income Portfolio			Lazard US Short Duration Fixed Income Portfolio
$	308,845,646		$	115,255,338
	2,350			282,336
	—			—
	4,544,268			861,743
	—			—
	457,280			13,343
	—			—
	—			—
	313,849,544			116,412,760
	—			—
	—			—
	130,039			23,766
	28,860			28,282
	18,404			7,676
	1,052			—
	—			—
	203,472			21,304
	65,564			14,147
	—			—
	790,000			—
	12,358			5,080
	1,249,749			100,255
$	312,599,795		$	116,312,505
$	337,285,223		$	118,208,858
	(24,685,428	)		(1,896,353	)
$	312,599,795		$	116,312,505

Annual Report  73

December 31, 2018	Lazard Emerging Markets Debt Portfolio			Lazard Global Fixed Income Portfolio
Institutional Shares
Net assets		$	143,014,914	$	5,495,303
Shares of capital stock outstanding*			19,428,100		635,449
Net asset value, offering and redemption price per share		$	7.36	$	8.65
Open Shares
Net assets		$	670,186	$	32,770
Shares of capital stock outstanding*			90,147		3,789
Net asset value, offering and redemption price per share		$	7.43	$	8.65
R6 Shares
Net assets		$	99,951,742		—
Shares of capital stock outstanding*			12,683,587		—
Net asset value, offering and redemption price per share		$	7.88		—
Cost of investments in securities		$	260,258,692	$	5,710,115
Cost of foreign currency		$	1,098,638	$	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.

74  Annual Report

Lazard US Corporate Income Portfolio		Lazard US Short Duration Fixed Income Portfolio
$	308,285,139	$	116,275,720
	67,838,982		11,984,211
$	4.54	$	9.70
$	4,313,614	$	36,785
	944,746		3,789
$	4.57	$	9.71
$	1,042		—
	223		—
$	4.67		—
$	327,221,574	$	115,484,925
$	—	$	—

Annual Report  75

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2018		Lazard Emerging Markets Debt Portfolio				Lazard Global Fixed Income Portfolio
Investment Income (Loss)
Income
Interest*			$	16,839,461		$	165,784
Expenses
Management fees (Note 3)				1,868,732			27,300
Custodian fees				231,924			49,999
Professional services				70,842			42,235
Administration fees				43,970			10,507
Registration fees				42,334			37,781
Shareholders’ services				37,469			23,791
Directors’ fees and expenses				14,143			5,185
Shareholders’ reports				12,323			6,479
Distribution fees (Open Shares)				6,502			82
Other^				10,180			5,223
Total gross expenses				2,338,419			208,582
Management fees waived and expenses reimbursed				(38,405	)		(170,124	)
Total net expenses				2,300,014			38,458
Net investment income (loss)				14,539,447			127,326
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions, Forward Currency Contracts and Swap Agreements
Net realized gain (loss) on:
Investments**				(10,371,606	)		(38,726	)
Foreign currency transactions				2,049,317			(896	)
Forward currency contracts				(411,030	)		(41,569	)
Swap agreements				(2,287,060	)		—
Total net realized gain (loss) on investments, foreign currency transactions, forward currency contracts and swap agreements				(11,020,379	)		(81,191	)
Net change in unrealized appreciation (depreciation) on:
Investments†				(22,258,207	)		(245,230	)
Foreign currency translations				2,552			(1,388	)
Forward currency contracts				744,115			57,838
Swap agreements				59,623			—
Total net change in unrealized appreciation (depreciation) on investments, foreign currency translations, forward currency contracts and swap agreements				(21,451,917	)		(188,780	)
Net realized and unrealized gain (loss) on investments, foreign currency transactions, forward currency contracts and swap agreements				(32,472,296	)		(269,971	)
Net increase (decrease) in net assets resulting from operations			$	(17,932,849	)	$	(142,645	)
*	Net of foreign withholding taxes of		$	195,760		$	1,250
**	Net of foreign capital gains taxes of		$	54,706		$	—
†	Includes net change in unrealized appreciation (depreciation) of foreign capital gains taxes of		$	141,621		$	—
^	Includes interest on line of credit of		$	1,631		$	126

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

76  Annual Report

Lazard US Corporate Income Portfolio			Lazard US Short Duration Fixed Income Portfolio
$	18,013,003		$	2,646,662
	1,906,163			275,310
	110,377			49,584
	54,398			47,251
	56,147			23,590
	40,293			38,148
	43,362			24,393
	17,240			8,860
	16,578			7,462
	14,589			77
	10,572			5,383
	2,269,719			480,058
	(344,584	)		(39,038	)
	1,925,135			441,020
	16,087,868			2,205,642
	588,674			(1,149,097	)
	—			—
	—			—
	—			—
	588,674			(1,149,097	)
	(25,354,375	)		237,332
	—			—
	—			—
	—			—
	(25,354,375	)		237,332
	(24,765,701	)		(911,765	)
$	(8,677,833	)	$	1,293,877
$	—		$	—
$	—		$	—
$	—		$	—
$	77		$	—

Annual Report  77

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

	Lazard Emerging Markets Debt Portfolio
	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	14,539,447		$	15,179,241
Net realized gain (loss) on investments, foreign currency transactions, forward currency contracts and swap agreements		(11,020,379	)		2,771,528
Net change in unrealized appreciation (depreciation) on investments, foreign currency translations, forward currency contracts and swap agreements		(21,451,917	)		14,280,735
Net increase (decrease) in net assets resulting from operations		(17,932,849	)		32,231,504
Distributions to shareholders (Note 2(f))
Net investment income and net realized gains
Institutional Shares		(4,701,379	)		(13,803,686	)
Open Shares		(68,347	)		(387,708	)
R6 Shares		(2,107,177	)		(2,026	)
Return of capital
Institutional Shares		(5,201,496	)		(878,881	)
Open Shares		(75,617	)		(24,685	)
R6 Shares		(2,331,332	)		(129	)
Net decrease in net assets resulting from distributions		(14,485,348	)		(15,097,115	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		53,729,663			45,172,035
Open Shares		2,519,684			3,209,100
R6 Shares		110,381,409			1,000
Net proceeds from reinvestment of distributions
Institutional Shares		9,761,506			14,640,287
Open Shares		142,468			412,234
R6 Shares		4,438,509			—
Cost of shares redeemed
Institutional Shares		(183,928,083	)		(36,381,779	)
Open Shares		(8,319,029	)		(4,477,834	)
R6 Shares		—			(1,158,913	)
Net increase (decrease) in net assets from capital stock transactions		(11,273,873	)		21,416,130
Total increase (decrease) in net assets		(43,692,070	)		38,550,519
Net assets at beginning of period		287,328,912			248,778,393
Net assets at end of period	$	243,636,842		$	287,328,912

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

78  Annual Report

Lazard Global Fixed Income Portfolio						Lazard US Corporate Income Portfolio
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018			Year Ended December 31, 2017
$	127,326		$	104,221		$	16,087,868		$	15,216,486
	(81,191	)		(139,517	)		588,674			(484,262	)
	(188,780	)		384,081			(25,354,375	)		1,388,881
	(142,645	)		348,785			(8,677,833	)		16,121,105
	(59,363	)		—			(15,821,900	)		(14,816,506	)
	(319	)		—			(253,454	)		(281,890	)
	—			—			(13,162	)		(79,722	)
	(67,280	)		(103,547	)		—			—
	(362	)		(657	)		—			—
	—			—			—			—
	(127,324	)		(104,204	)		(16,088,516	)		(15,178,118	)
	2,654,185			1,192,523			49,765,025			69,937,224
	—			838			2,569,673			1,908,682
	—			—			24,665			—
	126,631			103,537			14,673,547			13,419,461
	681			656			120,865			146,462
	—			—			6,762			79,723
	(1,722,437	)		(1,099,616	)		(76,329,156	)		(42,747,420	)
	(9	)		(3,659	)		(3,681,834	)		(3,999,689	)
	—			—			(1,782,867	)		—
	1,059,051			194,279			(14,633,320	)		38,744,443
	789,082			438,860			(39,399,669	)		39,687,430
	4,738,991			4,300,131			351,999,464			312,312,034
$	5,528,073		$	4,738,991		$	312,599,795		$	351,999,464

Annual Report  79

	Lazard Emerging Markets Debt Portfolio
	Year Ended December 31, 2018			Year Ended December 31, 2017
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		33,323,876			30,470,656
Shares sold		6,920,539			5,492,748
Shares issued to shareholders from reinvestment of distributions		1,230,443			1,756,827
Shares redeemed		(22,046,758	)		(4,396,355	)
Net increase (decrease)		(13,895,776	)		2,853,220
Shares outstanding at end of period		19,428,100			33,323,876
Open Shares
Shares outstanding at beginning of period		766,577			852,546
Shares sold		298,747			390,174
Shares issued to shareholders from reinvestment of distributions		17,024			49,030
Shares redeemed		(992,201	)		(525,173	)
Net increase (decrease)		(676,430	)		(85,969	)
Shares outstanding at end of period		90,147			766,577
R6 Shares
Shares outstanding at beginning of period		125			144,864
Shares sold		12,137,545			125
Shares issued to shareholders from reinvestment of distributions		545,917			—
Shares redeemed		—			(144,864	)
Net increase (decrease)		12,683,462			(144,739	)
Shares outstanding at end of period		12,683,587			125

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

80  Annual Report

Lazard Global Fixed Income Portfoalio						Lazard US Corporate Income Portfolio
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018			Year Ended December 31, 2017
	520,489			497,927			70,514,409			62,254,314
	294,722			136,255			10,487,599			14,251,620
	14,452			11,602			3,108,656			2,733,088
	(194,214	)		(125,295	)		(16,271,682	)		(8,724,613	)
	114,960			22,562			(2,675,427	)		8,260,095
	635,449			520,489			67,838,982			70,514,409
	3,712			3,958			1,162,735			1,557,470
	—			96			539,630			387,438
	78			74			25,492			29,704
	(1	)		(416	)		(783,111	)		(811,877	)
	77			(246	)		(217,989	)		(394,735	)
	3,789			3,712			944,746			1,162,735
	—			—			364,469			348,256
	—			—			5,023			—
	—			—			1,389			16,213
	—			—			(370,658	)		—
	—			—			(364,246	)		16,213
	—			—			223			364,469

Annual Report  81

	Lazard US Short Duration Fixed Income Portfolio
	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	2,205,642		$	1,604,721
Net realized gain (loss) on investments		(1,149,097	)		(800,974	)
Net change in unrealized appreciation (depreciation) on investments		237,332			(30,628	)
Net increase (decrease) in net assets resulting from operations		1,293,877			773,119
Distributions to shareholders (Note 2(f))
Net investment income and net realized gains
Institutional Shares		(1,976,743	)		(1,300,615	)
Open Shares		(464	)		(360	)
Return of capital
Institutional Shares		(228,383	)		(303,662	)
Open Shares		(54	)		(84	)
Net decrease in net assets resulting from distributions		(2,205,644	)		(1,604,721	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		40,433,005			38,713,952
Open Shares		47,508			48,365
Net proceeds from reinvestment of distributions
Institutional Shares		2,000,809			1,472,734
Open Shares		514			441
Cost of shares redeemed
Institutional Shares		(25,637,022	)		(42,139,581	)
Open Shares		(35,952	)		(66,952	)
Net increase (decrease) in net assets from capital stock transactions		16,808,862			(1,971,041	)
Total increase (decrease) in net assets		15,897,095			(2,802,643	)
Net assets at beginning of period		100,415,410			103,218,053
Net assets at end of period	$	116,312,505		$	100,415,410
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		10,259,235			10,468,785
Shares sold		4,157,165			3,930,176
Shares issued to shareholders from reinvestment of distributions		206,126			149,733
Shares redeemed		(2,638,315	)		(4,289,459	)
Net increase (decrease)		1,724,976			(209,550	)
Shares outstanding at end of period		11,984,211			10,259,235
Open Shares
Shares outstanding at beginning of period		2,561			4,412
Shares sold		4,869			4,916
Shares issued to shareholders from reinvestment of distributions		53			45
Shares redeemed		(3,694	)		(6,812	)
Net increase (decrease)		1,228			(1,851	)
Shares outstanding at end of period		3,789			2,561

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

82  Annual Report

The Lazard Funds, Inc. Financial Highlights

LAZARD EMERGING MARKETS DEBT PORTFOLIO

Selected data for a share of capital stock outstanding	Year Ended
throughout each period		12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	8.43		$	7.90		$	7.71		$	8.84		$	9.53
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.46			0.46			0.48	^		0.39			0.49
Net realized and unrealized gain (loss)		(1.07	)		0.53			0.19			(1.13	)		(0.66	)
Total from investment operations		(0.61	)		0.99			0.67			(0.74	)		(0.17	)
Less distributions from:
Net investment income		(0.22	)		(0.43	)		(0.19	)		—	(b)		(0.15	)
Return of capital		(0.24	)		(0.03	)		(0.29	)		(0.39	)		(0.37	)
Total distributions		(0.46	)		(0.46	)		(0.48	)		(0.39	)		(0.52	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	7.36		$	8.43		$	7.90		$	7.71		$	8.84
Total Return (c)		–7.45	%		12.69	%		8.64	%^		–8.55	%		–2.07	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	143,015		$	280,808		$	240,833		$	258,517		$	326,165
Ratios to average net assets:
Net expenses		0.93	%		0.93	%		0.96	%^		0.96	%		0.96	%
Gross expenses		0.93	%		0.93	%		0.96	%		0.96	%		0.96	%
Net investment income (loss)		5.78	%		5.52	%		5.90	%^		4.69	%		5.14	%
Portfolio turnover rate		97	%		88	%		118	%		162	%		204	%

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

Annual Report  83

Selected data for a share of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	8.50		$	7.98		$	7.79		$	8.91		$	9.59
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.47			0.44			0.46	^		0.36			0.46
Net realized and unrealized  gain (loss)		(1.10	)		0.51			0.19			(1.11	)		(0.68	)
Total from investment operations		(0.63	)		0.95			0.65			(0.75	)		(0.22	)
Less distributions from:
Net investment income		(0.20	)		(0.40	)		(0.18	)		—	(b)		(0.09	)
Return of capital		(0.24	)		(0.03	)		(0.28	)		(0.37	)		(0.37	)
Total distributions		(0.44	)		(0.43	)		(0.46	)		(0.37	)		(0.46	)
Redemption fees		—			—			—			—	(b)		—	(b)
Net asset value, end of period	$	7.43		$	8.50		$	7.98		$	7.79		$	8.91
Total Return (c)		–7.59	%		12.16	%		8.27	%^		–8.64	%		–2.53	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	670		$	6,520		$	6,801		$	6,910		$	1,107
Ratios to average net assets:
Net expenses		1.20	%		1.22	%		1.28	%^		1.30	%		1.30	%
Gross expenses		1.62	%		1.36	%		1.40	%		1.75	%		1.71	%
Net investment income (loss)		5.49	%		5.21	%		5.59	%^		4.54	%		4.80	%
Portfolio turnover rate		97	%		88	%		118	%		162	%		204	%

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

84  Annual Report

Selected data for a share							For the Period
of capital stock outstanding	Year Ended						7/28/16* to
throughout each period	12/31/18			12/31/17			12/31/16
R6 Shares
Net asset value, beginning of period	$	8.88		$	7.90		$	8.34
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.48			0.45			0.20	^
Net realized and unrealized gain (loss)		(1.12	)		0.54			(0.44	)
Total from investment operations		(0.64	)		0.99			(0.24	)
Less distributions from:
Net investment income		(0.11	)		(0.01	)		(0.08	)
Return of capital		(0.25	)		—	(b)		(0.12	)
Total distributions		(0.36	)		(0.01	)		(0.20	)
Net asset value, end of period	$	7.88		$	8.88		$	7.90
Total Return (c)		–7.24	%		12.61	%		–2.93	%^
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	99,952		$	1		$	1,145
Ratios to average net assets (d):
Net expenses		0.90	%		0.90	%		0.90	%^
Gross expenses		0.94	%		43.88	%		2.21	%
Net investment income (loss)		5.97	%		5.71	%		5.73	%^
Portfolio turnover rate		97	%		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 DST; 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  85

LAZARD GLOBAL FIXED INCOME PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	9.04		$	8.57		$	8.74		$	9.30		$	9.51
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.20			0.20			0.20			0.19			0.22
Net realized and unrealized gain (loss)		(0.38	)		0.47			(0.17	)		(0.56	)		(0.21	)
Total from investment operations		(0.18	)		0.67			0.03			(0.37	)		0.01
Less distributions from:
Net investment income		(0.10	)		—			(0.12	)		—			(0.17	)
Return of capital		(0.11	)		(0.20	)		(0.08	)		(0.19	)		(0.05	)
Total distributions		(0.21	)		(0.20	)		(0.20	)		(0.19	)		(0.22	)
Redemption fees		—			—			—			—	(b)		—
Net asset value, end of period	$	8.65		$	9.04		$	8.57		$	8.74		$	9.30
Total Return (c)		–2.06	%		7.87	%		0.22	%		–4.03	%		0.08	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	5,495		$	4,705		$	4,266		$	5,795		$	6,497
Ratios to average net assets:
Net expenses		0.70	%		0.72	%		0.75	%		0.76	%		0.80	%
Gross expenses		3.61	%		4.39	%		4.70	%		4.26	%		4.12	%
Net investment income (loss)		2.33	%		2.23	%		2.18	%		2.08	%		2.28	%
Portfolio turnover rate		60	%		42	%		47	%		60	%		78	%

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

86  Annual Report

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	9.04		$	8.57		$	8.74		$	9.30		$	9.51
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.18			0.17			0.17			0.16			0.19
Net realized and unrealized gain (loss)		(0.39	)		0.47			(0.17	)		(0.56	)		(0.21	)
Total from investment operations		(0.21	)		0.64			—	(b)		(0.40	)		(0.02	)
Less distributions from:
Net investment income		(0.08	)		—			(0.10	)		—			(0.14	)
Return of capital		(0.10	)		(0.17	)		(0.07	)		(0.16	)		(0.05	)
Total distributions		(0.18	)		(0.17	)		(0.17	)		(0.16	)		(0.19	)
Redemption fees		—			—			—			—			—	(b)
Net asset value, end of period	$	8.65		$	9.04		$	8.57		$	8.74		$	9.30
Total Return (c)		–2.31	%		7.55	%		–0.07	%		–4.31	%		–0.22	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	33		$	34		$	34		$	56		$	56
Ratios to average net assets:
Net expenses		0.98	%		1.02	%		1.05	%		1.06	%		1.10	%
Gross expenses		38.42	%		42.88	%		27.52	%		27.72	%		20.84	%
Net investment income (loss)		2.08	%		1.95	%		1.88	%		1.80	%		2.01	%
Portfolio turnover rate		60	%		42	%		47	%		60	%		78	%

(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 DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.

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

Annual Report  87

LAZARD US CORPORATE INCOME PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	4.89		$	4.87		$	4.64		$	4.91		$	5.01
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.22			0.22			0.23			0.24			0.26
Net realized and unrealized gain (loss)		(0.35	)		0.02			0.23			(0.27	)		(0.09	)
Total from investment operations		(0.13	)		0.24			0.46			(0.03	)		0.17
Less distributions from:
Net investment income		(0.22	)		(0.22	)		(0.23	)		(0.24	)		(0.27	)
Return of capital		—			—			—			—	(b)		—
Total distributions		(0.22	)		(0.22	)		(0.23	)		(0.24	)		(0.27	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	4.54		$	4.89		$	4.87		$	4.64		$	4.91
Total Return (c)		–2.73	%		5.09	%		10.09	%		–0.71	%		3.31	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	308,285		$	344,508		$	302,997		$	243,712		$	185,959
Ratios to average net assets:
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Gross expenses		0.64	%		0.67	%		0.69	%		0.69	%		0.71	%
Net investment income (loss)		4.65	%		4.57	%		4.78	%		4.94	%		5.28	%
Portfolio turnover rate		16	%		21	%		14	%		17	%		28	%

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

88  Annual Report

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	4.91		$	4.89		$	4.66		$	4.93		$	5.03
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.21			0.21			0.21			0.23			0.25
Net realized and unrealized gain (loss)		(0.34	)		0.02			0.24			(0.27	)		(0.10	)
Total from investment operations		(0.13	)		0.23			0.45			(0.04	)		0.15
Less distributions from:
Net investment income		(0.21	)		(0.21	)		(0.22	)		(0.23	)		(0.25	)
Return of capital		—			—			—			—	(b)		—
Total distributions		(0.21	)		(0.21	)		(0.22	)		(0.23	)		(0.25	)
Redemption fees		—			—			—	(b)		—	(b)		—
Net asset value, end of period	$	4.57		$	4.91		$	4.89		$	4.66		$	4.93
Total Return (c)		–2.78	%		4.77	%		9.74	%		–0.98	%		3.01	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	4,314		$	5,708		$	7,618		$	1,968		$	1,811
Ratios to average net assets:
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Gross expenses		1.11	%		1.13	%		1.18	%		1.69	%		1.55	%
Net investment income (loss)		4.34	%		4.28	%		4.44	%		4.65	%		5.00	%
Portfolio turnover rate		16	%		21	%		14	%		17	%		28	%

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

Annual Report  89

Selected data for a share							For the Period
of capital stock outstanding	Year Ended						11/3/16*
throughout each period	12/31/18			12/31/17			to 12/31/16
R6 Shares
Net asset value, beginning of period	$	4.89		$	4.87		$	4.84
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.23			0.22			0.04
Net realized and unrealized gain (loss)		(0.35	)		0.02			0.03
Total from investment operations		(0.12	)		0.24			0.07
Less distributions from:
Net investment income		(0.10	)		(0.22	)		(0.04	)
Total distributions		(0.10	)		(0.22	)		(0.04	)
Net asset value, end of period	$	4.67		$	4.89		$	4.87
Total Return (c)		–2.43	%#		5.09	%		1.37	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1		$	1,783		$	1,697
Ratios to average net assets (d):
Net expenses		0.55	%		0.55	%		0.55	%
Gross expenses		4.62	%		1.69	%		1.73	%
Net investment income (loss)		4.61	%		4.58	%		4.71	%
Portfolio turnover rate		16	%		21	%		14	%

*	The inception date for the R6 Shares was November 3, 2016.
#	The Portfolio received settlement proceeds from a foreign exchange trading class action lawsuit. The proceeds from the settlement represented a realized gain and were recorded in the period received. There was a 0.62% impact on the total return of the Portfolio’s R6 Shares.
(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 DST; 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.

90  Annual Report

LAZARD US SHORT DURATION FIXED INCOME PORTFOLIO

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	9.79		$	9.86		$	9.89		$	9.99		$	10.03
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.19			0.14			0.13			0.10			0.09
Net realized and unrealized gain (loss)		(0.09	)		(0.07	)		(0.03	)		(0.09	)		(0.04	)
Total from investment operations		0.10			0.07			0.10			0.01			0.05
Less distributions from:
Net investment income		(0.17	)		(0.11	)		(0.09	)		(0.06	)		(0.05	)
Return of capital		(0.02	)		(0.03	)		(0.04	)		(0.05	)		(0.04	)
Total distributions		(0.19	)		(0.14	)		(0.13	)		(0.11	)		(0.09	)
Redemption fees		—			—			—			—	(b)		—
Net asset value, end of period	$	9.70		$	9.79		$	9.86		$	9.89		$	9.99
Total Return (c)		1.08	%		0.72	%		1.00	%		0.05	%		0.49	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	116,276		$	100,390		$	103,175		$	103,150		$	114,705
Ratios to average net assets:
Net expenses		0.40	%		0.40	%		0.40	%		0.40	%		0.40	%
Gross expenses		0.43	%		0.43	%		0.50	%		0.48	%		0.52	%
Net investment income (loss)		2.00	%		1.43	%		1.30	%		1.05	%		0.87	%
Portfolio turnover rate		170	%		108	%		157	%		57	%		46	%

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

Annual Report  91

Selected data for a share
of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	9.79		$	9.87		$	9.90		$	10.01		$	10.03
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.16			0.11			0.10			0.17			0.06
Net realized and unrealized gain (loss)		(0.08	)		(0.08	)		(0.03	)		(0.09	)		(0.02	)
Total from investment operations		0.08			0.03			0.07			0.08			0.04
Less distributions from:
Net investment income		(0.14	)		(0.09	)		(0.07	)		(0.14	)		(0.02	)
Return of capital		(0.02	)		(0.02	)		(0.03	)		(0.05	)		(0.04	)
Total distributions		(0.16	)		(0.11	)		(0.10	)		(0.19	)		(0.06	)
Redemption fees		—			—			—			—	(b)		—
Net asset value, end of period	$	9.71		$	9.79		$	9.87		$	9.90		$	10.01
Total Return (c)		0.88	%		0.32	%		0.70	%		0.77	%		0.38	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	37		$	25		$	44		$	27		$	36
Ratios to average net assets:
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Gross expenses		38.00	%		33.88	%		31.22	%		42.51	%		17.62	%
Net investment income (loss)		1.68	%		1.13	%		1.00	%		1.68	%		0.60	%
Portfolio turnover rate		170	%		108	%		157	%		57	%		46	%

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

92  Annual Report

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2018

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. As of December 31, 2018, the Fund was comprised of thirty-three no-load portfolios (each referred to as a “Portfolio”). This report includes only the financial statements of Emerging Markets Debt, Global Fixed Income, US Corporate Income and US Short Duration Fixed Income Portfolios. The financial statements of the other twenty-nine Portfolios are presented separately.

The Portfolios, other than Emerging Markets Debt Portfolio, 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 Portfolios’ Prospectus).

2. Significant Accounting Policies

The accompanying financial statements are presented in conformity with US Generally Accepted Accounting Principles (“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. 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

Annual Report  93

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. 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. 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 deter-

94  Annual Report

mined by the market. Using a fair value pricing methodology to price securities may result in a value that is different from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ NAVs.

(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Interest income is accrued daily. 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 represent net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually

Annual Report  95

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, 2018, the Emerging Markets Debt and Global Fixed Income Portfolios traded in forward currency contracts.

(d) Swap Agreements—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

96  Annual Report

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, 2018, the Emerging Markets Debt Portfolio traded in swap agreements.

(e) 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, 2018, 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 Debt	$	26,228,591	$	14,492,603
Global Fixed Income		21,530		20,133
US Corporate Income		3,242,094		3,076,895
US Short Duration Fixed Income		1,194,698		348,713

During the year ended December 31, 2018, the US Corporate Income Portfolio utilized $588,674 of realized capital loss carryovers from previous years.

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

Annual Report  97

the following tax year. For the tax year ended December 31, 2018, the following Portfolio elected to defer such losses as follows:

	Post-October		Late-Year
	Capital Loss		Ordinary Loss
Portfolio	Deferral		Deferral
US Short Duration Fixed Income	$	—		$27,635

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

			Aggregate		Aggregate		Net
			Gross		Gross		Unrealized
	Aggregate		Unrealized		Unrealized		Appreciation
Portfolio	Cost		Appreciation		Depreciation		(Depreciation)
Emerging Markets Debt		$262,631,718		$1,720,281		$23,079,694		$(21,359,413	)
Global Fixed Income		5,712,278		6,915		245,173		(238,258	)
US Corporate Income		327,221,574		1,092,450		19,468,378		(18,375,928	)
US Short Duration Fixed Income		115,542,057		138,389		425,108		(286,719	)

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. Each Portfolio files a US 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.

(f) Dividends and Distributions—Emerging Markets Debt Portfolio intends 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 monthly. During any particular year, net realized gains from investment transactions in excess of available capital loss carryfor-wards would be taxable to the Portfolios, if not distributed.The Portfolios intend to declare and distribute these amounts, at least

98  Annual Report

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, certain fixed-income securities and expenses, derivatives, wash sales, return of capital distributions, currency straddles and paydown gain/loss. The book/tax differences relating to shareholder distributions resulted in reclassifications among certain capital accounts as follows:

				Distributable
				Earnings
				(Accumulated
Portfolio	Paid in Capital			Loss)
Emerging Markets Debt		$(7,608,444	)		$7,608,444
Global Fixed Income		(67,640	)		67,640
US Short Duration Fixed Income		(228,437	)		228,437

In October 2018, the US Securities and Exchange Commission (the “SEC”) adopted amendments to certain disclosure requirements included in Regulation S-X that had become “redundant, duplicative, overlapping, outdated or superseded, in light of the other Commission disclosure requirements, GAAP or changes in the information environment.” The compliance date for the amendments to Regulation S-X was November 5, 2018 (for reporting period end dates of September 30, 2018 or after). The Fund adopted these amendments and such changes are reflected in these financial statements.

Under these amendments, it is no longer required to differentiate distributions from earnings as either net investment income or net realized capital gains or disclose a Portfolio’s undistributed net investment income within a Portfolio’s Statement of Changes in Net Assets. The presentation within the Portfolios’ Statement of Changes in Net Assets for the year ended December 31, 2017 also has been modified accordingly.

Annual Report  99

Below is the characterization of the Portfolio distributions and undistributed (distributions in excess of) net investment income (loss) for the year ended December 31, 2017 as previously disclosed in the Statement of Changes in Net Assets within the December 31, 2017 Annual Report:

	Institutional		Open		R6
From net investment income	Shares		Shares		Shares
Emerging Markets Debt	$	13,803,686	$	387,708	$	2,026
US Corporate Income		14,816,506		281,890		79,722
US Short Duration Fixed Income		1,300,615		360		N/A

Undistributed (Distributions in excess of) net investment income (loss)	Amount
Emerging Markets Debt	$	(6,656,272	)
Global Fixed Income		(67,058	)
US Corporate Income		10,137
US Short Duration Fixed Income		(84,231	)

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2018		2017		2018		2017
Emerging Markets Debt*	$	6,876,903	$	14,193,420	$	—	$	—
Global Fixed Income*		59,682		—		—		—
US Corporate Income		16,088,516		15,178,118		—		—
US Short Duration Fixed Income*		1,977,207		1,300,975		—		—

* Emerging Markets Debt, Global Fixed Income and US Short Duration Fixed Income Portfolios had return of capital distributions of $7,608,445, $67,642 and $228,437 in 2018, and $903,695, $104,204 and $303,746 in 2017, respectively.

At December 31, 2018, the components of distributable earnings (accumulated loss), on a tax basis, were as follows:

	Undistributed			Undistributed			Net Unrealized
	Ordinary Income			Long-Term			Appreciation
	(Deferred			Capital Gain			(Depreciation)
	Ordinary			(Deferred			Including
Portfolio	Losses)			Capital Losses)			Foreign Currency
Emerging Markets Debt	$	—		$	(40,721,194	)	$	(21,398,699	)
Global Fixed Income		—			(41,663	)		(247,922	)
US Corporate Income		75,053			(6,318,989	)		(18,441,492	)
US Short Duration Fixed Income		(27,635	)		(1,543,411	)		(325,307	)

100  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. 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.

Annual Report  101

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 each Portfolio’s average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:

Portfolio	Annual Rate
Emerging Markets Debt		0.75	%
Global Fixed Income		0.50
US Corporate Income		0.55
US Short Duration Fixed Income		0.25

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 percentages of the value of the Portfolio’s average daily net assets set forth opposite the Portfolio’s name on table below. The Fund, on behalf of the Portfolio, may deduct from the payment to be made to the Investment Manager under the Management Agreement, or the Investment Manager will bear, such excess expense.

102  Annual Report

Portfolio	Institutional Shares			Open Shares			R6 Shares			Year
Emerging Markets Debt		0.95	%		1.15	%		0.90	%		2028	(a)
Global Fixed Income		0.70			0.95			N/A			2019	(b)
US Corporate Income		0.55			0.85			0.55			2019
US Short Duration Fixed Income		0.40			0.70			N/A			2019

(a)	From January 1, 2018 to June 26, 2018, percentage for the Open Shares was 1.20%. Agreement extends, from May 1, 2019 through May 1, 2028, at levels of 1.10%, 1.35% and 1.05%, respectively.
(b)	From January 1, 2018 to June 26, 2018, percentage for the Open Shares was 1.00%.

In addition, until May 1, 2019, to the extent the “Total Annual Fund Operating Expenses” (as used in Form N-1A) of the R6 Shares of a Portfolio exceed the Total Annual Fund Operating Expenses of the Portfolio’s Institutional Shares (in each case, not including management fees, custodial 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, 2018, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:

	Institutional Shares				Open Shares
	Management		Expenses		Management		Expenses
Portfolio	Fees Waived		Reimbursed		Fees Waived		Reimbursed
Emerging Markets Debt		$         —		$         —		$       —		$11,241
Global Fixed Income		27,135		130,650		165		12,174
US Corporate Income		317,981		—		14,952		—
US Short Duration Fixed Income		27,555		—		78		11,405

	R6 Shares
	Management		Expenses
Portfolio	Fees Waived		Reimbursed
Emerging Markets Debt		$     —		$27,164
US Corporate Income		1,575		10,076

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.

Annual Report  103

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 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.

DST is the Fund’s transfer and dividend disbursing agent.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2018, each Director who is not an affiliated person of the Investment Manager or any of its affiliates was paid by all of the funds in the Lazard Fund Complex: (1) an annual retainer of $225,000, (2) an additional annual fee of $32,500 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 $22,500 to the Audit Committee Chair. Effective January 1, 2019,

104  Annual Report

the aggregate compensation for Independent Directors for the Lazard Fund Complex is comprised of: (1) an annual retainer of $232,000, (2) an additional annual fee of $33,000 to the lead Independent Director, and (3) an additional annual fee of $23,000 to the Audit Committee Chair. The Independent Directors may be paid additional compensation for participation on ad hoc committees or other work performed on behalf of the Board. The Independent Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Independent Directors’ fees are allocated among the funds in the Lazard Fund Complex at a rate of $5,000 per fund with the remainder allocated based upon each fund’s proportionate share of combined net assets. The Statements of Operations show the 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, 2018 were as follows:

Portfolio	Purchases		Sales
Emerging Markets Debt		$221,111,008		$236,456,937
Global Fixed Income		3,322,185		2,409,455
US Corporate Income		52,501,868		54,323,926
US Short Duration Fixed Income		31,303,750		38,409,681

	US Government and Treasury Securities
Portfolio	Purchases		Sales
Global Fixed Income		$       973,272		$        761,540
US Short Duration Fixed Income		160,377,811		137,757,841

For the year ended December 31, 2018, 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.

Annual Report  105

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, 2018, the following Portfolios had borrowings under the Agreement as follows:

						Weighted				Number of
	Average			Maximum		Average				Days
	Daily Loan			Daily Loan		Interest				Borrowings
Portfolio	Balance		*	Outstanding		Rate			were Outstanding
Emerging Markets Debt		$3,919,556			$7,875,000		2.70	%			9
Global Fixed Income		180,000			270,000		2.81				9
US Corporate Income		790,000			790,000		3.50				1

* For days borrowings were outstanding.

Management believes that the fair value of the liabilities under the line of credit is equivalent to the recorded amount based on its short-term maturity and interest rate, which fluctuates with LIBOR. A Portfolio’s outstanding balance on the line of credit, if any, would be categorized as Level 2.

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

106  Annual Report

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 generally does not intend to actively hedge the Portfolio’s 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.

Annual Report  107

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. 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

108  Annual Report

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) 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. How-

Annual Report  109

ever, 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

110  Annual Report

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:

Annual Report  111

• 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, 2018:

	Unadjusted
	Quoted Prices in
	Active Markets			Significant
	for Identical			Other			Significant
	Assets			Observable			Unobservable
	and Liabilities			Inputs			Inputs			Balance as of
Description	(Level 1)			(Level 2)			(Level 3)		December 31, 2018
Emerging Markets Debt Portfolio
Assets:
Corporate Bonds*		$	—	$	11,966,856		$	—		$	11,966,856
Foreign Government Obligations*			—		216,544,499			—			216,544,499
Quasi Government Bonds*			—		5,160,813			—			5,160,813
Supranational Bonds			—		2,340,286			—			2,340,286
Short-Term Investments			5,952,735		—			—			5,952,735
Other Financial Instruments†
Forward Currency Contracts			—		893,329			—			893,329
Total		$	5,952,735	$	236,905,783		$	—		$	242,858,518
Liabilities:
Other Financial Instruments†
Forward Currency Contracts		$	—	$	(186,013	)	$	—		$	(186,013	)

112  Annual Report

	Unadjusted
	Quoted Prices in
	Active Markets			Significant
	for Identical			Other			Significant
	Assets			Observable			Unobservable
	and Liabilities			Inputs			Inputs			Balance as of
Description	(Level 1)			(Level 2)			(Level 3)		December 31, 2018
Global Fixed Income Portfolio
Assets:
Corporate Bonds*		$	—	$	1,792,106		$	—		$	1,792,106
Foreign Government Obligations*			—		2,294,644			—			2,294,644
Quasi Government Bonds*			—		54,271			—			54,271
Supranational Bonds			—		612,498			—			612,498
US Municipal Bonds			—		99,542			—			99,542
US Treasury Securities			—		635,534			—			635,534
Other Financial Instruments†
Forward Currency Contracts			—		52,594			—			52,594
Total		$	—	$	5,541,189		$	—		$	5,541,189
Liabilities:
Other Financial Instruments†
Forward Currency Contracts		$	—	$	(20,491	)	$	—		$	(20,491	)
US Corporate Income Portfolio
Corporate Bonds*		$	—	$	308,845,646		$	—		$	308,845,646
US Short Duration Fixed Income Portfolio
Asset-Backed Securities*		$	—	$	5,020,118		$	—		$	5,020,118
Corporate Bonds*			—		43,570,598			—			43,570,598
US Government Securities			—		10,291,968			—			10,291,968
US Treasury Securities			—		55,775,155			—			55,775,155
Short-Term Investments			597,499		—			—			597,499
Total		$	597,499	$	114,657,839		$	—		$	115,255,338

*	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).

Annual Report  113

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.

During the year ended December 31, 2018, the approximate average monthly notional exposure for derivative instruments was as follows:

Derivative Instruments	Emerging Markets Debt Portfolio			Global Fixed Income Portfolio
Forward currency contracts:
Average amounts purchased		$77,700,000			$2,700,000
Average amounts sold		56,800,000			2,400,000
Interest rate swap agreements:
Average notional value – receives fixed rate		12,500,000	#		—

# 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, 2018:

Assets – Derivative Financial Instruments		Emerging Markets Debt Portfolio		Global Fixed Income Portfolio
Forward currency contracts	Unrealized appreciation on forward currency contracts	$	893,329		$52,594

Liabilities – Derivative Financial Instruments		Emerging Markets Debt Portfolio		Global Fixed Income Portfolio
Forward currency contracts	Unrealized depreciation on forward currency contracts	$	186,013		$20,491

114  Annual Report

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2018 was:

Emerging Markets Debt Portfolio

Net Realized Gain (Loss) from:	Foreign Currency Contracts			Interest Rate Contracts			Total
Forward currency contracts	$	(411,030	)	$	–		$	(411,030	)
Swap agreements		–			(2,287,060	)		(2,287,060	)
Total	$	(411,030	)	$	(2,287,060	)	$	(2,698,090	)

Net Change in Unrealized Appreciation (Depreciation) on:	Foreign Currency Contracts		Interest Rate Contracts		Total
Forward currency contracts	$	744,115	$	–	$	744,115
Swap agreements		–		59,623		59,623
Total	$	744,115	$	59,623	$	803,738

Global Fixed Income Portfolio

Net Realized Gain (Loss) from:	Total
Forward currency contracts	$	(41,569	)

Net Change in Unrealized Appreciation (Depreciation) on:	Total
Forward currency contracts	$	57,838

None of the other Portfolios presented traded in derivative instruments during the year ended December 31, 2018.

As of December 31, 2018, the Emerging Markets Debt and Global Fixed 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.

The required information for the affected Portfolios are presented in the below table, as of December 31, 2018:

Annual Report  115

Emerging Markets Debt Portfolio

Description	Gross Amounts of Recognized Assets			Gross Amounts Offset in the Statement of Assets and Liabilities		Net Amounts of Assets Presented in the Statement of Assets and Liabilities
Forward Currency Contracts		$	893,329	$	—	$	893,329

				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		$	47,902	$	(5,400	)	$	—		$	42,502
Barclays Bank PLC			237,789		(84,455	)		—			153,334
Citibank NA			58,605		(10,053	)		—			48,552
Goldman Sachs International			923		—			—			923
HSBC Bank USA NA			60,789		(17,521	)		—			43,268
JPMorgan Chase Bank NA			86,301		(4,253	)		(82,048	)		—
Standard Chartered Bank			278,978		(57,284	)		(221,694	)		—
UBS AG			122,042		(7,047	)		—			114,995
Total		$	893,329	$	(186,013	)	$	(303,742	)	$	403,574

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		$	186,013	$	—	$	186,013

				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
Bank of America NA		$	5,400	$	(5,400	)	$	—	$	—
Barclays Bank PLC			84,455		(84,455	)		—		—
Citibank NA			10,053		(10,053	)		—		—
HSBC Bank USA NA			17,521		(17,521	)		—		—
JPMorgan Chase Bank NA			4,253		(4,253	)		—		—
Standard Chartered Bank			57,284		(57,284	)		—		—
UBS AG			7,047		(7,047	)		—		—
Total		$	186,013	$	(186,013	)	$	—	$	—

(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.

116  Annual Report

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		$	52,594	$	—	$	52,594

				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		$	18,778	$	(2,938	)	$	—	$	15,840
HSBC Bank USA NA			33,185		(14,537	)		—		18,648
JPMorgan Chase Bank NA			631		(631	)		—		—
Total		$	52,594	$	(18,106	)	$	—	$	34,488

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		$	20,491	$	—	$	20,491

				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		$	2,938	$	(2,938	)	$	—	$	—
HSBC Bank USA NA			14,537		(14,537	)		—		—
JPMorgan Chase Bank NA			3,016		(631	)		—		2,385
Total		$	20,491	$	(18,106	)	$	—	$	2,385

11. Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-08, Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, which amends the amortization period for certain purchased callable debt securities. Management is currently evaluating the impact that the adoption

Annual Report  117

of the amendment will have on the Fund’s financial statements and related disclosures. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which removes, modifies and adds disclosures to Topic 820. The amendments in this ASU apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Management has evaluated the impact of the amendments and has elected to adopt these amendments and incorporate the changes in the current financial statements.

12. Subsequent Events

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

118  Annual Report

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

To the Board of Directors of The Lazard Funds, Inc. and Shareholders of Lazard Emerging Markets Debt Portfolio, Lazard Global Fixed Income Portfolio, Lazard US Corporate Income Portfolio and Lazard US Short Duration 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 Emerging Markets Debt Portfolio, Lazard Global Fixed Income Portfolio, Lazard US Corporate Income Portfolio and Lazard US Short Duration Fixed Income Portfolio (collectively the “Portfolios”), four of the portfolios constituting The Lazard Funds, Inc. (the “Fund”) as of December 31, 2018, 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 five years in the period then ended, 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 constituting The Lazard Funds, Inc. as of December 31, 2018, 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 five 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

Annual Report  119

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, 2018, 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 26, 2019

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

120  Annual Report

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

Name (Year of Birth) 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 (1953)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present)
		Cornell Law School, Adjunct Professor (2013 – 2016, 2019)
		The Buchmann Faculty of Law, Tel Aviv University, Visiting Professor (2019)
		University of California, Berkeley School of Law, Adjunct Professor (Spring 2017)
Kenneth S. Davidson (1945)	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 (1962)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
		TIAA-CREF Funds (69 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 (1971)	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. (1944)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		Resource America, Inc., a real estate asset management company, Director (2016 – 2018)

Annual Report  121

Name (Year of Birth) 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)
Robert M. Solmson (1947)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, Co-Managing Partner and Managing Director (2008 – present)
Interested Directors(4):
Ashish Bhutani (1960)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present)
		Lazard Ltd, Vice Chairman and Director (2010 – present)
Nathan A. Paul (1973)	Director (October 2017), Chief Executive Officer and President (February 2017; previously, Vice President and Secretary since April 2002)	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, 2019, 39 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.

122  Annual Report

Name (Year of Birth) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) During the Past Five Years
Officers(3):
Mark R. Anderson (1970)	Chief Compliance Officer (September 2014), Vice President and Secretary (February 2017)	Managing Director (since February 2017, previously Director), Chief Compliance Officer (since September 2014) and General Counsel (since April 2017) of the Investment Manager
		Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014)
Christopher Snively (1984)	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 (1958)	Treasurer (May 2003)	Vice President of the Investment Manager
Shari L. Soloway (1981)	Assistant Secretary (November 2015)	Head of Legal, North America (since January 2019, previously Senior Vice President, Legal and Compliance (since September 2015)), of the Investment Manager
		Vice President and Associate General Counsel of GE Asset Management (July 2011 – September 2015)
Jessica A. Falzone (1989)	Assistant Secretary (January 2019)	Vice President, Legal and Compliance, of the Investment Manager (since March 2018)
		Associate at Schulte Roth & Zabel LLP (2014 – March 2018)
Cesar A. Trelles (1975)	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  123

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

Tax Information

Year Ended December 31, 2018

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2018:

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

Of the dividends paid by the Portfolios, no dividends qualify for the dividends received deduction available to corporate shareholders.

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

Proxy Voting

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

Schedule of Portfolio Holdings

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the SEC’s website at https://www.sec.gov.

124  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.
2000 Crown Colony Drive
Quincy, Massachusetts 02169
Telephone: 617-483-7000

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

Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www. lazardassetmanagement.com
Performance information as of the most recent month end is available online at www. lazardassetmanagement.com. LZDPS026

Lazard Funds

Annual Report

December 31, 2018

Multi-Asset Funds

Lazard Global Dynamic Multi-Asset Portfolio
Lazard Opportunistic Strategies Portfolio
Lazard Real Assets and Pricing Opportunities Portfolio

Important Information on Paperless Delivery

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. Shareholders who hold accounts directly with the Fund may elect to receive shareholder reports and other communications from the Fund electronically by signing up for paperless delivery at www.icsdelivery.com/lazardassetmanagement. If you own these shares through a financial intermediary, you may contact your financial intermediary.

You may elect to receive all future reports in paper free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by following the instructions included with this disclosure and visiting www.fundreports.com. If you own these shares through a financial intermediary, you may contact your financial intermediary or follow instructions included with this disclosure to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the fund complex or your financial intermediary.

PRIVACY NOTICE

WHAT DOES LAZARD DO WITH YOUR PERSONAL INFORMATION?

Financial companies choose how they share your personal information. U.S. federal law gives our clients the right to limit some but not all sharing. U.S. federal and other applicable 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.

We do not disclose nonpublic personal information about our clients or former clients to third parties other than as described below.

Personal information we collect. We collect personal information about you in connection with our providing advisory services to you. The legal basis for our collection of your personal information is our contract with you and our legitimate business interest to provide contractual services to you. The collection of this information is necessary for us to be able to provide advisory services to you and the failure to provide such information will result in our inability to provide our services. This information includes your social security number (for U.S. persons) and may include other information such as your:

· Assets and income;

· Investment experience;

· Transaction history;

· Credit history; and

· Wire transfer instructions.

How we collect this information. We collect this information from you through various means. For example, when you give us your contact information, enter into an investment advisory contract with us, buy securities (i.e., interests in a fund) from us, direct us to buy or sell securities for your account, tell us where to send money, or make a wire transfer. We also may collect your personal information from other sources, such as our affiliates¹ or other non-affiliated companies (such as credit bureaus).

¹ Our affiliates are companies related to us by common ownership or control and can include both financial and nonfinancial companies. Non-affiliates are companies not related to us by common ownership or control and can include both financial and nonfinancial companies.

How we use this information. All financial companies need to share customers’ personal information to run their everyday business and we use the personal information we collect from you for our everyday business purposes. These purposes may include for example:

· To provide advisory services to you;

· To open an account for you;

· To process a transaction for your account;

· To market products and services to you; and/or

· To respond to court orders and legal investigations.

If you are an investor located within a European Union country, please note that personal information may be collected, shared and/or stored outside of the European Union.

Disclosure to others. We may provide your personal information to our affiliates and to firms that assist us in servicing your account and have a need for such information, such as a broker, counterparty, fund administrator or third party service provider that aggregates data in a central repository for access by a broker, counterparty or fund administrator to provide its services. We may also disclose such information to service providers and financial institutions with which we have a formal agreement to provide services relating to our arrangements with you. We require third party service providers and financial institutions with which we have a formal agreement to provide services relating to our arrangements with you to protect the confidentiality of your information and to use the information only for the purposes for which we disclose the information to them. These sharing practices are consistent with applicable privacy and related laws, and in general, you may not limit our use of your personal information for these purposes under such laws. We note that the U.S. federal privacy laws only give you the right to limit the certain types of information sharing that we do not engage in (e.g., sharing with our affiliates certain information relating to your transaction history or creditworthiness for their use in marketing to you, or sharing any personal information with non-affiliates for them to market to you). We may also share your personal information with non-affiliates (such as a government agency or regulatory authority) as required by applicable law.

How we protect your personal information. To protect your personal information from unauthorized access and use, we use security measures that comply with applicable law. These measures include computer safeguards and secured files and buildings.

How long we keep your personal information. We retain your personal information for the duration of your advisory relationship with us and for a period of time thereafter as required by applicable law.

Your rights with respect to this information. If you are an investor located within a European Union country, you have the following rights with respect to your personal information:

· The right to request and obtain a copy of your personal information that we maintain;

· The right to correct your personal information that we maintain;

· The right to request the erasure of your personal information from our systems, subject to applicable recordkeeping requirements applicable to us; and

· The right to lodge a complaint with a supervisory authority.

Who is providing this Privacy Notice. This Privacy Notice relates to the following entities:

· Lazard Asset Management LLC

· Lazard Asset Management (Canada), Inc.²

· Lazard Asset Management Securities LLC

Who to contact with questions. If you have any questions about this Privacy Notice, please call (800) 823-6300 or visit our website at http://www.lazardassetmanagement.com.

² Lazard Asset Management (Canada), Inc. does not disclose any non-public personal information about its customers to any third party, except as permitted by or required by any applicable law, including the laws of the United States and Canada.

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard (unaudited)
4	Investment Overviews (unaudited)
9	Performance Overviews (unaudited)
12	Information About Your Portfolio’s Expenses (unaudited)
14	Portfolio Holdings Presented by Asset Class/Sector
15	Portfolios of Investments
15	Lazard Global Dynamic Multi-Asset Portfolio
38	Lazard Opportunistic Strategies Portfolio
40	Lazard Real Assets and Pricing Opportunities Portfolio
54	Notes to Portfolios of Investments
58	Statements of Assets and Liabilities
60	Statements of Operations
62	Statements of Changes in Net Assets
66	Financial Highlights
72	Notes to Financial Statements
107	Report of Independent Registered Public Accounting Firm
110	Board of Directors and Officers Information (unaudited)
113	Tax and Other Information (unaudited)

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 (unaudited)

Dear Shareholder,

In 2018, volatility returned to global markets. The economic trajectories of the major economies diverged during the year, with US growth accelerating and non-US growth decelerating. Tighter US monetary policy, declining oil prices, and trade tensions between the United States and China also increased risk aversion. Against this backdrop, almost every major developed and emerging equity market declined during the year. Despite the uptick in global market turbulence, our portfolio management teams remain steadfast in their investment discipline and continue to focus on fundamental research.

The US equity market ended the year down after a severe fourth quarter sell-off. During the quarter, volatility as measured by the CBOE Volatility^® Index increased, corporate credit spreads widened, the yield curve flattened, and the yield on the 10-year US Treasury declined. Crude oil prices fell by nearly $29 per barrel on the back of concerns over flagging global demand and elevated supply.

In Europe, political risks increased throughout the year as the Italian election led to a governing coalition of the League and the Five Star Movement. The United Kingdom struggled with finalizing a resolution to exit the European Union (“Brexit”) and German Chancellor Angela Merkel announced she would step down in 2021. The European Central Bank ended its monthly asset purchase program in December, but kept its benchmark interest rate at zero.

Emerging markets equities and debt fell significantly in 2018 as macroeconomic and geopolitical developments weighed on market sentiment. The rising US dollar pressured most emerging markets during the year. In Turkey, uncertainty related to the country’s trade deficit was exacerbated by US sanctions and a diplomatic dispute with the United States over a detained American pastor. Uncertainty about trade and concerns about decelerating Chinese growth rippled through the global economy. Despite these challenges, our emerging markets equity and debt teams believe that many emerging markets still have solid fundamentals, and are well positioned to grow faster than the global growth average.

2  Annual Report

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

Annual Report  3

The Lazard Funds, Inc. Investment Overviews (unaudited)

Multi-Asset

Global developed equity markets suffered a steep fall in 2018 as the MSCI World^® Index closed 8.7% lower, in US dollar terms. A surge in January culminated with a steep drawdown in early February as rising US yields generated speculation and higher volatility. After that, markets were generally in an uptrend until the fourth quarter, where volatility took over and a sharp drawdown occurred. Investor sentiment turned negative late in the year, as markets fell sharply during December and investors shunned risk assets.

Interest rate and oil price trends affected stock returns in financials and energy. Both sectors lost more than 15% during the year as rates generally trended upward and oil prices collapsed in the fourth quarter. Despite negative news flow and a tech-focused sell-off in the fourth quarter, the information technology sector managed to end the year essentially flat. In this environment, utilities and health care—historically defensive sectors—had positive returns. US equities had the best performance across the major regions while Japan, the United Kingdom, and Europe had significantly steeper losses. The MSCI Emerging Markets^® Index fell 14.6% for the year, as equities in these markets were affected by global trade concerns and a stronger US dollar.

In fixed income, the bellwether US 10-year Treasury closed the year at 2.68% after topping out near 3.25% in early November. Similar-maturity Japanese and German bonds ended the year at 0.24% and 0.00%, respectively. Rates also rallied strongly late in the year in “higher quality” markets such as Australia, Canada, Singapore, and the United Kingdom. Credit markets were under pressure late in the year in sympathy with weaker equity markets, especially high-yield bonds, whose spreads continued to widen, even with the drought in new supply/issuance for this asset class in December. Investment grade spreads and emerging markets external debt spreads also widened during the year. Currency markets were largely dominated by US dollar strength, where the safe-haven status of the Japanese yen was re-asserted, as it was one of the few currencies to gain value versus the US dollar.

4  Annual Report

Commodity performance was negative for the year as the Bloomberg Commodity Index Total Return lost 11%.The energy sub-index was performing well up until the oil price free fall in the fourth quarter of 2018. In this setting, sub-indices for agriculture, industrial metals, and precious metals were also negative, with precious metals staging a late-year rally.

Lazard Global Dynamic Multi-Asset Portfolio

For the year ended December 31, 2018, the Lazard Global Dynamic Multi-Asset Portfolio’s Institutional Shares posted a total return of -6.35%, while Open Shares posted a total return of -6.64%, as compared with the -8.71% return for the MSCI World Index and -4.79% return of its blended benchmark, which is a 50/50 blend of the MSCI World Index and Bloomberg Barclays Global Aggregate^® Index (the “GDMA Index”).

In terms of asset allocation, our average overweight to equities versus fixed income hurt performance for the year.

Within equities, stock selection in the consumer staples, financials, and health care sectors added value. By country, stock selection in Australia, Netherlands, Norway, and the United States helped performance. In contrast, stock selection in the consumer discretionary, materials, real estate, and utilities sectors hurt performance as did stock selection in Denmark, Finland, and Germany.

Within fixed income, country allocation such as our overweight exposure to bonds in Australia, New Zealand, and Poland helped the Portfolio, as did security selection in Norway and avoiding exposure to Italy. In terms of currency allocation, overweight exposure to the Japanese yen and Canadian dollar added value. In contrast, underweight exposure to bonds in core Europe and Japan hurt performance, as did tactical overweight exposure to the Mexican peso, Australian dollar, and New Zealand dollar.

The Portfolio uses currency forwards opportunistically and for hedging purposes. The impact of these instruments was positive over the year.

Annual Report  5

Lazard Opportunistic Strategies Portfolio

For the year ended December 31, 2018, the Lazard Opportunistic Strategies Portfolio’s Institutional Shares posted a total return of -12.72%, while Open Shares posted a total return of -13.05%, as compared with the -8.71% return for the MSCI World Index and -4.99% return for the Global Asset Allocation Blended Index.¹

Trending investments, which represented 45% of the Portfolio at the end of the period, underperformed both indices. Exposure to US small cap, financials, industrials, and materials detracted from performance. We held part of our industrials exposure through a basket of short-cycle industrials companies using a swap position, which was sold during the period.

Diversifying investments, which represented 38% of the Portfolio at year-end, underperformed the broad US fixed income market (as measured by the Bloomberg Barclays US Aggregate^® Index), but outperformed both indices mentioned above. Positions in US utilities, US consumer staples, and US Treasuries helped while positions in US health care and pharmaceuticals hurt the Portfolio.

Contrarian investments, which represented 16% of the Portfolio at the end of the period, underperformed both indices. Exposure to oil and gas services added value. Exposure to European and Japanese equities detracted from performance. A portion of the Japanese equity exposure was held via a basket of Japanese chemical companies through a swap position, which was sold during the period.

The Portfolio may use total return swaps for exposure to custom baskets of securities. The aggregate impact of these positions was negative during the period.

Lazard Real Assets and Pricing Opportunities Portfolio

For the year ended December 31, 2018, the Lazard Real Assets and Pricing Opportunities Portfolio’s Institutional Shares posted a total return of -7.55%, while Open Shares posted a total return of -7.79%, as compared with the -4.41% return for the blended benchmark of 70% MSCI World Index (USD Hedged)/30% Bloomberg Barclays

6  Annual Report

World Government Inflation-Linked Bond^® Index (USD Hedged) (the “Real Assets Index (USD Hedged)”) and -8.71% return for the MSCI World Index.

Our equity allocations contributed negatively in absolute terms. Listed infrastructure stocks detracted from performance. Atlantia, an Italian holding company operating toll motorways and airports, and PG&E, a US utility, were among the largest detractors. Pricing-power stocks detracted from performance, driven mainly by the impact of the financials and industrials sectors. Global real estate securities were also negative contributors to performance. Among the detractors were Weyerhaeuser, a US-based timber REIT, and SOHO China, a Chinese property developer.

Commodity futures and equities were both negative contributors for the period. In commodity-related equities, some of the largest detractors were US chemicals companies, Olin Corporation and Westlake Chemical.

Global inflation-linked bonds contributed positively to performance. Overweight exposure to bonds in Mexico and New Zealand added value. Underweight bond exposure to France and overweight exposure to the United States, as well as currency exposures—including the Mexican peso, Japanese yen, and euro—hurt performance.

The Portfolio uses forward currency contracts opportunistically and for hedging purposes. The impact of these instruments was positive. Within commodities, the Portfolio uses futures and total return swaps to gain exposure to these assets. The impact of these instruments was negative due to weak commodities performance during the year.

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 DST Asset Manager Solutions, Inc., the Fund’s transfer and dividend disbursing agent (“DST”);

Annual Report  7

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, 2018, except as otherwise indicated; 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.

8  Annual Report

The Lazard Funds, Inc. Performance Overviews (unaudited)

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, 2018

	One	Since
	Year	Inception	†
Institutional Shares**	–6.35%	5.04%
Open Shares**	–6.64%	4.72%
MSCI World Index	–8.71%	6.52%
GDMA Index	–4.79%	3.82%

† The inception date for the Portfolio was May 27, 2016.

Lazard Opportunistic Strategies Portfolio

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

Average Annual Total Returns*

Periods Ended December 31, 2018

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	–12.72%	1.69%	5.99%
Open Shares**	–13.05%	1.28%	5.60%
MSCI World Index	–8.71%	4.56%	9.67%
Global Asset Allocation Blended Index	–4.99%	3.88%	7.48%

Annual Report  9

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, MSCI World Index and Real Assets Index (USD Hedged)*

Average Annual Total Returns*

Periods Ended December 31, 2018

	One	Since
	Year	Inception	†
Institutional Shares**	–7.55%	0.79%
Open Shares**	–7.79%	0.39%
MSCI World Index	–8.71%	5.71%
		(Institutional Shares	)
		4.98% (Open Shares	)
Real Assets Index (USD Hedged)	–4.41%	4.61%
		(Institutional Shares	)
		4.14% (Open Shares	)

† The inception date for the Institutional Shares was December 30, 2016 and for the Open Shares was January 9, 2017.

Notes to Performance Overviews:

*	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 DST; 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 US Generally Accepted Accounting Principles, 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.

10  Annual Report

	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 indices are unmanaged, have no fees or costs and are not available for investment.
	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 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 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 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 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 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 performance of Institutional Shares and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report  11

The Lazard Funds, Inc.

Information About Your Portfolio’s Expenses (unaudited)

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, 2018 through December 31, 2018 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.

12  Annual Report

	Beginning Account		Ending Account		Expenses Paid During Period		*	Annualized Expense Ratio During Period
Portfolio	Value 7/1/18		Value 12/31/18		7/1/18 - 12/31/18			7/1/18 - 12/31/18
Global Dynamic Multi-Asset
Institutional Shares
Actual	$	1,000.00	$	941.50	$	4.40		0.90%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.67	$	4.58		0.90%
Open Shares
Actual	$	1,000.00	$	940.10	$	5.87		1.20%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.16	$	6.11		1.20%
Opportunistic Strategies
Institutional Shares
Actual	$	1,000.00	$	895.60	$	4.87		1.02%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.06	$	5.19		1.02%
Open Shares
Actual	$	1,000.00	$	894.10	$	6.30		1.32%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.55	$	6.72		1.32%
Real Assets and Pricing Opportunities
Institutional Shares
Actual	$	1,000.00	$	933.20	$	4.39		0.90%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.67	$	4.58		0.90%
Open Shares
Actual	$	1,000.00	$	931.90	$	5.60		1.15%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.41	$	5.85		1.15%

* 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  13

The Lazard Funds, Inc.

Portfolio Holdings Presented by Asset Class/Sector December 31, 2018

Asset Class/Sector*	Lazard Global Dynamic Multi-Asset Portfolio			Lazard Real Assets and Pricing Opportunities Portfolio
Equity
Communication Services		4.5	%		2.5	%
Consumer Discretionary		8.4			2.8
Consumer Staples		8.2			3.9
Energy		2.7			1.9
Financials		14.8			3.9
Health Care		9.2			3.8
Industrials		10.6			10.8
Information Technology		9.3			1.9
Materials		1.8			2.5
Real Estate		2.6			14.3
Utilities		3.1			10.5
Exchange-Traded Funds		—			1.5
Sovereign Debt		16.0			8.8
US Government Securities		0.5			—
US Municipal Bonds		0.8			—
US Treasury Securities		4.1			15.1
Short-Term Investments		3.4			15.8
Total Investments		100.0	%		100.0	%
Asset Class/Sector*	Lazard Opportunistic Strategies Portfolio
Equity†
Communication Services		3.7	%
Consumer Discretionary		4.4
Consumer Staples		2.0
Energy		4.2
Financials		9.8
Health Care		9.8
Industrials		12.8
Information Technology		15.3
Materials		4.6
Real Estate		1.0
Utilities		0.7
Fixed Income		23.6
Short-Term Investments		8.1
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.

14  Annual Report

The Lazard Funds, Inc. Portfolios of Investments

December 31, 2018

Description	Shares		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio
Common Stocks  |  65.5%
Australia  |  1.5%
AGL Energy, Ltd.		3,830	$	55,419
BlueScope Steel, Ltd.		2,297		17,730
CIMIC Group, Ltd.		1,796		54,909
Cochlear, Ltd.		180		21,872
Coles Group, Ltd. (*)		3,254		26,908
CSL, Ltd.		1,338		174,738
Link Administration Holdings, Ltd.		4,496		21,437
Northern Star Resources, Ltd.		5,116		33,492
Qantas Airways, Ltd.		16,337		66,691
Regis Resources, Ltd.		10,445		35,667
Sandfire Resources NL		8,420		39,613
Saracen Mineral Holdings, Ltd. (*)		27,301		56,704
Shopping Centres Australasia Property Group REIT		13,290		23,870
Whitehaven Coal, Ltd.		4,173		12,719
				641,769
Austria  |  0.0%
Erste Group Bank AG		522		17,393
Belgium  |  0.5%
Anheuser-Busch InBev SA/NV Sponsored ADR		1,400		92,134
Proximus SADP		1,089		29,392
Telenet Group Holding NV		520		24,140
UCB SA		579		47,204
				192,870
Canada  |  3.1%
Air Canada (*)		1,256		23,883
Alimentation Couche-Tard, Inc., Class B		551		27,409
BRP, Inc.		993		25,705
CAE, Inc.		7,893		144,899
Canadian National Railway Co.		2,510		186,016
Canadian Natural Resources, Ltd.		593		14,308
CGI Group, Inc., Class A (*)		445		27,218
CI Financial Corp.		1,864		23,594

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

Annual Report  15

Description	Shares		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Colliers International Group, Inc.		407	$	22,446
Constellation Software, Inc.		39		24,964
National Bank of Canada		2,779		114,095
Northland Power, Inc.		1,101		17,501
Parex Resources, Inc. (*)		3,074		36,815
Rogers Communications, Inc., Class B		1,330		68,156
Royal Bank of Canada		2,039		139,558
Suncor Energy, Inc.		3,941		110,072
Tamarack Valley Energy, Ltd. (*)		4,864		8,408
Teck Resources, Ltd., Class B		2,016		43,400
The Toronto-Dominion Bank		5,627		279,739
				1,338,186
China  |  0.1%
Yangzijiang Shipbuilding Holdings, Ltd.		28,900		26,274
Denmark  |  0.1%
Carlsberg A/S, Class B		231		24,576
Dfds A/S		311		12,526
H. Lundbeck A/S		466		20,435
				57,537
Finland  |  0.5%
Nordea Bank Abp Sponsored ADR		12,895		108,189
Sampo Oyj, A Shares ADR		4,825		106,874
				215,063
France  |  1.8%
AXA SA		928		19,994
Electricite de France SA		1,048		16,513
Engie SA		7,476		106,848
Faurecia SA		109		4,091
Hermes International		45		24,887
Ipsen SA		428		55,201
Peugeot SA		3,362		71,467
Total SA		4,890		258,329
Ubisoft Entertainment SA ADR (*)		8,280		133,887
Unibail-Rodamco-Westfield REIT (*)		348		53,987
Veolia Environnement SA		709		14,543
				759,747

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

16  Annual Report

Description	Shares		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Germany  |  1.3%
Allianz SE		737	$	147,891
Continental AG		170		23,507
Covestro AG		1,398		69,162
Deutsche Lufthansa AG		4,055		91,449
Deutsche Telekom AG		785		13,335
Rheinmetall AG		118		10,420
RWE AG		715		15,544
SAP SE		97		9,662
Schaeffler AG (Preference Shares)		5,311		45,285
Siltronic AG		167		13,812
Symrise AG ADR		5,600		103,740
				543,807
Hong Kong  |  1.2%
AIA Group, Ltd. Sponsored ADR		5,130		168,674
CK Asset Holdings, Ltd.		7,696		55,964
Hang Seng Bank, Ltd. Sponsored ADR		6,895		154,276
Kerry Properties, Ltd.		9,500		32,276
Link Real Estate Investment Trust		8,000		80,565
Swire Pacific, Ltd., Class A		4,000		42,021
				533,776
Israel  |  0.6%
Bank Leumi Le-Israel BM		9,643		58,383
Israel Discount Bank, Ltd., ADR		3,200		96,736
Israel Discount Bank, Ltd., Class A		22,511		69,375
Nice, Ltd. (*)		295		31,946
				256,440
Italy  |  0.9%
Assicurazioni Generali SpA		924		15,462
Enel SpA		31,255		180,312
Intesa Sanpaolo SpA		3,823		8,473
Italgas SpA		3,048		17,423
Poste Italiane SpA		7,694		61,750
Terna SpA		14,397		81,726
UniCredit SpA		1,361		15,439
				380,585

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

Annual Report  17

Description	Shares		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Japan  |  5.9%
Amano Corp.		1,195	$	22,934
Astellas Pharma, Inc.		2,900		36,906
Canon, Inc.		400		11,022
Capcom Co., Ltd.		800		15,947
Cosmo Energy Holdings Co., Ltd.		400		8,142
Daito Trust Construction Co., Ltd.		255		34,829
Daiwa House Industry Co., Ltd.		2,300		73,047
Daiwa House Industry Co., Ltd. ADR		4,365		138,807
DMG Mori Co., Ltd.		3,400		37,947
East Japan Railway Co.		2,500		222,209
Fukuoka Financial Group, Inc.		1,800		36,298
Japan Post Holdings Co., Ltd.		9,800		112,675
JFE Holdings, Inc.		3,000		47,732
Juki Corp.		700		7,156
Kamigumi Co., Ltd.		1,000		20,405
Kao Corp. ADR		8,325		124,042
KDDI Corp.		1,410		33,600
Kinden Corp.		700		11,260
Kobe Bussan Co., Ltd.		400		11,780
Kyushu Electric Power Co., Inc.		1,300		15,458
Marvelous, Inc.		1,700		12,060
McDonald’s Holdings Co. Japan, Ltd.		1,200		51,126
Mitsubishi UFJ Financial Group, Inc.		6,577		32,432
MS&AD Insurance Group Holdings, Inc.		2,154		61,142
Nishimatsu Construction Co., Ltd.		1,600		36,110
Nissan Motor Co., Ltd.		1,700		13,702
Nomura Holdings, Inc.		3,900		14,870
NTT DOCOMO, Inc.		8,318		186,781
ORIX Corp.		1,313		19,077
Ryohin Keikaku Co., Ltd. ADR		2,575		123,896
SAMTY Co., Ltd.		1,900		21,771
Seven & I Holdings Co., Ltd.		2,000		87,085
Shikoku Electric Power Co., Inc.		3,500		42,261
Shin-Etsu Chemical Co., Ltd.		500		38,520
Shionogi & Co., Ltd.		300		17,011

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

18  Annual Report

Description	Shares		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Sompo Holdings, Inc.		1,404	$	47,391
Stanley Electric Co., Ltd.		400		11,155
Sumitomo Heavy Industries, Ltd.		800		23,584
Sumitomo Mitsui Construction Co., Ltd.		5,400		32,730
Sumitomo Mitsui Trust Holdings, Inc.		700		25,479
Taisei Corp.		700		29,761
Takeuchi Manufacturing Co., Ltd.		2,113		32,231
TechnoPro Holdings Inc., ADR		12,600		100,926
Teijin, Ltd.		695		11,064
The 77 Bank, Ltd.		600		10,343
The Chiba Bank, Ltd.		2,500		13,863
The Chugoku Electric Power Co., Inc.		931		12,071
The Dai-ichi Life Insurance Co., Ltd.		2,300		35,639
The Gunma Bank, Ltd.		8,600		35,724
Tokyo Electron, Ltd.		200		22,946
Tokyo Gas Co., Ltd.		4,127		104,370
Tokyu Fudosan Holdings Corp.		2,400		11,914
Topcon Corp.		2,600		34,113
Tosoh Corp.		3,200		41,405
Yamaha Corp. Sponsored ADR		2,640		110,376
				2,527,125
Malta  |  0.0%
Kindred Group PLC		2,189		20,208
Netherlands  |  1.0%
Euronext NV		571		32,793
Koninklijke Ahold Delhaize NV		1,775		44,779
Royal Dutch Shell PLC, A Shares		2,695		79,100
Wolters Kluwer NV		158		9,330
Wolters Kluwer NV Sponsored ADR		4,195		246,163
				412,165
New Zealand  |  0.1%
Spark New Zealand, Ltd.		8,573		23,811

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

Annual Report  19

Description	Shares		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Norway  |  1.1%
DNO ASA		21,947	$	32,005
Equinor ASA		12,148		259,071
Leroy Seafood Group ASA		3,807		29,152
Marine Harvest ASA		903		19,009
Salmar ASA		915		45,255
Telenor ASA		4,136		79,841
TGS NOPEC Geophysical Co. ASA		435		10,548
				474,881
Portugal  |  0.1%
Galp Energia SGPS SA		1,446		22,898
Singapore  |  0.7%
Best World International, Ltd.		11,000		21,247
Oversea-Chinese Banking Corp., Ltd.		2,100		17,249
Oversea-Chinese Banking Corp., Ltd. ADR		10,295		171,051
Singapore Technologies Engineering, Ltd.		21,500		54,831
UOL Group, Ltd.		4,900		22,171
				286,549
Spain  |  0.2%
Amadeus IT Group SA		581		40,455
Banco Bilbao Vizcaya Argentaria SA		5,714		30,141
CIE Automotive SA		569		13,984
Corporacion Financiera Alba SA		204		9,924
				94,504
Sweden  |  0.9%
Assa Abloy AB ADR		9,710		86,128
Axfood AB		1,880		32,220
Boliden AB		575		12,506
Epiroc AB ADR (*)		13,420		126,416
Hexagon AB ADR		2,420		113,256
Swedish Orphan Biovitrum AB (*)		735		15,984
				386,510
Switzerland  |  1.3%
Garrett Motion, Inc. (*)		2,361		29,135
Julius Baer Group, Ltd. ADR		7,865		55,527

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

20  Annual Report

Description	Shares		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Novartis AG Sponsored ADR		1,865	$	160,036
Partners Group Holding AG		79		48,019
Roche Holding AG		1,047		258,896
The Swatch Group AG		336		19,476
				571,089
United Kingdom  |  5.2%
Admiral Group PLC		1,638		42,580
Anglo American PLC		1,629		36,011
Associated British Foods PLC		470		12,224
Bunzl PLC Sponsored ADR		4,740		145,613
Cineworld Group PLC		23,616		79,037
Coca-Cola European Partners PLC		3,045		139,613
Compass Group PLC		3,724		78,184
Compass Group PLC Sponsored ADR		6,482		135,474
Diageo PLC Sponsored ADR		1,995		282,891
Fiat Chrysler Automobiles NV (*)		2,477		36,013
GlaxoSmithKline PLC		2,159		40,977
Hargreaves Lansdown PLC		928		21,865
Howden Joinery Group PLC		6,891		38,111
Imperial Brands PLC		2,581		78,049
International Consolidated Airlines Group SA		8,809		69,628
Lloyds Banking Group PLC		89,696		59,269
National Grid PLC		9,773		94,510
Pearson PLC		3,307		39,424
Prudential PLC ADR		2,860		101,158
RELX PLC Sponsored ADR		9,400		192,888
Rio Tinto, Ltd.		483		26,714
Royal Bank of Scotland Group PLC		4,469		12,288
RSA Insurance Group PLC ADR		13,090		87,703
SSP Group PLC		1,589		13,090
Tate & Lyle PLC		2,933		24,624
Taylor Wimpey PLC		8,440		14,599
The Weir Group PLC Sponsored ADR		6,865		55,744
Unilever PLC Sponsored ADR		4,120		215,270
WH Smith PLC		932		20,358
Wm Morrison Supermarkets PLC		18,685		50,644
				2,244,553

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

Annual Report  21

Description	Shares		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
United States  |  37.4%
Accenture PLC, Class A		1,345	$	189,658
Adobe, Inc. (*)		625		141,400
Aflac, Inc.		963		43,874
Air Lease Corp.		252		7,613
Ally Financial, Inc.		943		21,368
Alphabet, Inc., Class A (*)		258		269,600
Alphabet, Inc., Class C (*)		23		23,819
Amazon.com, Inc. (*)		89		133,675
American Electric Power Co., Inc.		1,384		103,440
American Express Co.		610		58,145
Ameriprise Financial, Inc.		156		16,282
Amgen, Inc.		378		73,585
Anthem, Inc.		142		37,293
Aon PLC		2,698		392,181
Apple, Inc.		895		141,177
Applied Materials, Inc.		356		11,655
Atmos Energy Corp.		1,188		110,151
Avnet, Inc.		1,391		50,215
Bank of America Corp.		3,010		74,166
Baxter International, Inc.		178		11,716
Best Buy Co., Inc.		620		32,835
BGC Partners, Inc., Class A		2,557		13,220
Biogen, Inc. (*)		735		221,176
Booking Holdings, Inc. (*)		13		22,391
BorgWarner, Inc.		423		14,695
Boston Scientific Corp. (*)		4,365		154,259
Bristol-Myers Squibb Co.		1,407		73,136
Broadridge Financial Solutions, Inc.		811		78,059
Brunswick Corp.		452		20,995
Burlington Stores, Inc. (*)		405		65,881
Cadence Design Systems, Inc. (*)		462		20,088
Carnival PLC		648		31,082
Cboe Global Markets, Inc.		268		26,218
CBRE Group, Inc., Class A (*)		2,230		89,289
Celgene Corp. (*)		431		27,623

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

22  Annual Report

Description	Shares		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Centene Corp. (*)		343	$	39,548
Cerner Corp. (*)		452		23,703
Cigna Corp.		1,291		245,115
Cisco Systems, Inc.		3,120		135,190
Citigroup, Inc.		689		35,869
Citizens Financial Group, Inc.		1,912		56,844
Comcast Corp., Class A		4,895		166,675
Comerica, Inc.		2,135		146,653
ConocoPhillips		451		28,120
Copart, Inc. (*)		537		25,658
Costco Wholesale Corp.		146		29,742
Cracker Barrel Old Country Store, Inc.		206		32,931
CVS Health Corp.		400		26,208
Darden Restaurants, Inc.		704		70,301
Diamondback Energy, Inc.		116		10,753
Discovery, Inc., Class A (*)		929		22,983
Eastman Chemical Co.		1,014		74,134
Eaton Corp. PLC		1,185		81,362
eBay, Inc. (*)		2,870		80,561
Eli Lilly & Co.		2,109		244,054
Encompass Health Corp.		815		50,286
Exelon Corp.		2,004		90,380
F5 Networks, Inc. (*)		734		118,930
Facebook, Inc., Class A (*)		217		28,447
FactSet Research Systems, Inc.		231		46,230
Fifth Third Bancorp		1,157		27,224
Fiserv, Inc. (*)		1,231		90,466
Graco, Inc.		1,072		44,863
Grand Canyon Education, Inc. (*)		228		21,920
H&R Block, Inc.		924		23,442
HollyFrontier Corp.		272		13,905
Honeywell International, Inc.		1,711		226,057
HP, Inc.		2,406		49,227
Humana, Inc.		537		153,840
Huntsman Corp.		2,050		39,545
Ingredion, Inc.		258		23,581

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

Annual Report  23

Description	Shares		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Insperity, Inc.		390	$	36,410
Intel Corp.		3,905		183,262
Intercontinental Exchange, Inc.		3,371		253,937
Intuit, Inc.		488		96,063
IQVIA Holdings, Inc. (*)		2,310		268,353
j2 Global, Inc.		457		31,707
Johnson & Johnson		3,387		437,092
Jones Lang LaSalle, Inc.		373		47,222
JPMorgan Chase & Co.		1,651		161,171
KAR Auction Services, Inc.		630		30,064
Kimberly-Clark Corp.		1,085		123,625
Kohl’s Corp.		249		16,519
Lamb Weston Holdings, Inc.		1,426		104,897
Lockheed Martin Corp.		583		152,653
Lowe’s Cos., Inc.		2,349		216,954
LPL Financial Holdings, Inc.		415		25,348
Lululemon Athletica, Inc. (*)		170		20,674
Marathon Petroleum Corp.		424		25,020
MasterCard, Inc., Class A		1,735		327,308
Maxim Integrated Products, Inc.		246		12,509
McDonald’s Corp.		870		154,486
McGrath RentCorp		480		24,710
Merck & Co., Inc.		450		34,385
MetLife, Inc.		731		30,015
Micron Technology, Inc. (*)		707		22,433
Microsoft Corp.		4,236		430,251
Moody’s Corp.		168		23,527
Morgan Stanley		1,480		58,682
Motorola Solutions, Inc.		1,165		134,022
NetApp, Inc.		778		46,423
Newfield Exploration Co. (*)		1,328		19,468
Newmark Group, Inc., Class A		1,186		9,512
NIKE, Inc., Class B		2,655		196,842
Nordstrom, Inc.		340		15,847
Northern Trust Corp.		249		20,814
NRG Energy, Inc.		877		34,729

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

24  Annual Report

Description	Shares		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
NVIDIA Corp.		112	$	14,952
NVR, Inc. (*)		4		9,748
Occidental Petroleum Corp.		956		58,679
Omnicom Group, Inc.		1,654		121,139
Paychex, Inc.		1,341		87,366
PayPal Holdings, Inc. (*)		153		12,866
PBF Energy, Inc., Class A		318		10,389
PepsiCo, Inc.		1,507		166,493
Philip Morris International, Inc.		1,391		92,863
Phillips 66		410		35,322
Pinnacle West Capital Corp.		264		22,493
PotlatchDeltic Corp. REIT		402		12,719
Prudential Financial, Inc.		96		7,829
Radian Group, Inc.		605		9,898
Ralph Lauren Corp.		301		31,141
Raytheon Co.		550		84,343
Red Hat, Inc. (*)		191		33,547
Regions Financial Corp.		1,038		13,888
Renewable Energy Group, Inc. (*)		1,411		36,263
Republic Services, Inc.		2,135		153,912
Resideo Technologies, Inc. (*)		81		1,665
Rockwell Automation, Inc.		826		124,296
Ross Stores, Inc.		3,660		304,512
Royal Caribbean Cruises, Ltd.		247		24,154
Ryman Hospitality Properties, Inc. REIT		372		24,809
S&P Global, Inc.		850		144,449
Schlumberger, Ltd.		2,200		79,376
Seagate Technology PLC		388		14,973
Simon Property Group, Inc. REIT		1,922		322,877
Skyworks Solutions, Inc.		215		14,409
Starbucks Corp.		3,860		248,584
Synchrony Financial		1,841		43,190
Sysco Corp.		4,119		258,097
T-Mobile US, Inc. (*)		132		8,397
Take-Two Interactive Software, Inc. (*)		372		38,294
TE Connectivity, Ltd.		147		11,118

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

Annual Report  25

Description	Shares		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Teradyne, Inc.		446	$	13,995
Texas Instruments, Inc.		2,425		229,163
The Boeing Co.		963		310,568
The Charles Schwab Corp.		3,170		131,650
The Chemours Co.		1,300		36,686
The Coca-Cola Co.		5,360		253,796
The Estee Lauder Cos., Inc., Class A		1,052		136,865
The Gap, Inc.		604		15,559
The Procter & Gamble Co.		3,816		350,767
The Southern Co.		591		25,957
The TJX Cos., Inc.		5,389		241,104
The Toro Co.		851		47,554
The Walt Disney Co.		377		41,338
Thermo Fisher Scientific, Inc.		1,165		260,715
Tyson Foods, Inc., Class A		721		38,501
United Continental Holdings, Inc. (*)		185		15,490
United Rentals, Inc. (*)		378		38,756
United States Cellular Corp. (*)		593		30,818
United Technologies Corp.		680		72,406
UnitedHealth Group, Inc.		954		237,660
Unum Group		1,277		37,518
USANA Health Sciences, Inc. (*)		245		28,844
Verizon Communications, Inc.		6,512		366,105
Vertex Pharmaceuticals, Inc. (*)		92		15,245
Viacom, Inc., Class B		485		12,465
Visa, Inc., Class A		1,845		243,429
Walgreens Boots Alliance, Inc.		782		53,434
Waste Management, Inc.		1,176		104,652
Welbilt, Inc. (*)		3,980		44,218
Worldpay, Inc., Class A (*)		2,430		185,725
WW Grainger, Inc.		417		117,744
Xcel Energy, Inc.		685		33,750
Zions BanCorp.		290		11,815
Zoetis, Inc.		3,589		307,003
				16,023,986
Total Common Stocks (Cost $29,473,503)				28,051,726

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

26  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Corporate Bonds  |  9.2%
Australia  |  0.2%
Telstra Corp., Ltd., 4.000%, 09/16/22	AUD		90	$	65,348
Belgium  |  0.1%
Anheuser-Busch InBev Finance, Inc., 2.650%, 02/01/21	USD		52		51,111
Canada  |  0.3%
Canadian Imperial Bank of Commerce, 2.900%, 09/14/21	CAD		185		135,889
Denmark  |  0.3%
Carlsberg Breweries A/S, 2.500%, 05/28/24	EUR		100		123,128
France  |  0.3%
Schneider Electric SE, 2.950%, 09/27/22	USD		150		147,378
Germany  |  0.3%
BMW Finance NV, 0.875%, 08/16/22	GBP		110		134,735
Netherlands  |  0.6%
BNG Bank NV, 5.000%, 09/16/20	NZD		103		72,024
Nederlandse Waterschapsbank NV, 3.125%, 12/05/22 (#)	USD		200		202,116
					274,140
New Zealand  |  0.2%
Fonterra Cooperative Group, Ltd., 5.500%, 02/26/24	AUD		100		77,962

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

Annual Report  27

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Spain  |  0.3%
Iberdrola International BV, 1.125%, 04/21/26	EUR		100	$	113,389
Switzerland  |  0.3%
ABB Finance USA, Inc., 3.375%, 04/03/23	USD		127		126,856
United Kingdom  |  0.9%
Ashtead Capital, Inc., 4.125%, 08/15/25	USD		200		183,000
Unilever Capital Corp., 3.250%, 03/07/24	USD		200		198,717
					381,717
United States  |  5.4%
Amazon.com, Inc., 3.800%, 12/05/24	USD		170		173,980
Apple, Inc.:
2.850%, 02/23/23	USD		10		9,877
3.850%, 05/04/43	USD		195		185,612
Bank of America Corp., 3.499%, 05/17/22 (§)	USD		140		140,016
Caterpillar Financial Services Corp., 2.550%, 11/29/22	USD		245		237,960
Citigroup, Inc., 3.480% (BBSW 3 Month + 1.550%), 05/04/21 (§)	AUD		158		112,524
John Deere Canada Funding, Inc., 2.050%, 09/17/20	CAD		210		152,156
Johnson & Johnson, 3.625%, 03/03/37	USD		155		149,262
JPMorgan Chase & Co., 4.500%, 01/24/22	USD		125		128,793
Microsoft Corp., 4.450%, 11/03/45	USD		202		214,549

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

28  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Morgan Stanley, 3.625%, 01/20/27	USD		160	$	152,145
NIKE, Inc., 2.375%, 11/01/26	USD		170		155,809
Starbucks Corp., 3.100%, 03/01/23	USD		70		68,943
The Goldman Sachs Group, Inc., 3.625%, 01/22/23	USD		135		132,868
The Home Depot, Inc., 3.750%, 02/15/24	USD		135		138,026
United Parcel Service, Inc., 2.350%, 05/16/22	USD		85		82,927
Wells Fargo Canada Corp., 3.040%, 01/29/21	CAD		85		62,484
					2,297,931
Total Corporate Bonds (Cost $3,996,473)					3,929,584
Foreign Government Obligations  |  13.0%
Australia  |  1.0%
Queensland Treasury Corp.:
3.000%, 03/22/24	AUD		190		137,792
2.750%, 08/20/27	AUD		210		147,409
Western Australian Treasury Corp., 6.000%, 10/16/23	AUD		180		147,744
					432,945
Bermuda  |  0.5%
Government of Bermuda, 4.854%, 02/06/24	USD		200		207,750
Canada  |  2.2%
City of Vancouver, 2.900%, 11/20/25	CAD		95		70,005
Province of British Columbia, 4.700%, 06/18/37	CAD		155		139,585

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

Annual Report  29

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Province of Ontario, 2.450%, 06/29/22	USD		80	$	78,827
Province of Quebec:
3.500%, 07/29/20	USD		225		227,827
1.650%, 03/03/22	CAD		95		68,438
3.000%, 09/01/23	CAD		335		251,307
2.500%, 04/20/26	USD		120		116,142
					952,131
Chile  |  0.8%
Bonos de la Tesoreria de la Republica en pesos, 4.500%, 03/01/26	CLP		90,000		132,004
Republic of Chile, 3.125%, 01/21/26	USD		200		193,500
					325,504
Czech Republic  |  0.7%
Czech Republic, 2.500%, 08/25/28	CZK		6,240		292,505
France  |  0.3%
Government of France, 1.750%, 06/25/39	EUR		111		136,289
Hungary  |  0.9%
Hungary, 6.375%, 03/29/21	USD		94		99,147
Hungary Government Bonds:
3.000%, 06/26/24	HUF		39,980		148,061
3.000%, 10/27/27	HUF		41,700		148,471
					395,679
Ireland  |  0.3%
Ireland Government Bonds, 1.700%, 05/15/37	EUR		120		140,065
Japan  |  0.4%
Japan International Cooperation Agency, 2.125%, 10/20/26	USD		200		186,279

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

30  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Mexico  |  0.3%
United Mexican States, 6.750%, 02/06/24	GBP		70	$	105,282
New Zealand  |  0.8%
New Zealand Government Bonds:
6.000%, 05/15/21	NZD		295		215,189
4.500%, 04/15/27	NZD		155		114,156
					329,345
Norway  |  1.6%
Kommunalbanken AS, 1.375%, 10/26/20 (#)	USD		200		195,317
Oslo Kommune:
3.300%, 11/25/21	NOK		1,000		120,329
2.300%, 03/14/24	NOK		2,000		234,274
2.350%, 09/04/24	NOK		1,000		116,071
					665,991
Panama  |  0.5%
Republic of Panama, 4.000%, 09/22/24	USD		200		201,650
Poland  |  0.7%
Poland Government Bonds, 2.500%, 07/25/26	PLN		1,110		293,983
Singapore  |  0.6%
Singapore Government Bonds, 3.000%, 09/01/24	SGD		356		276,401
Spain  |  0.3%
Spain Government Bonds, 1.600%, 04/30/25	EUR		121		145,990
Sweden  |  0.5%
Kommuninvest I Sverige AB, 1.500%, 04/23/19	USD		200		199,395

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

Annual Report  31

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
United Kingdom  |  0.6%
United Kingdom Gilt:
1.750%, 09/07/37	GBP		107	$	136,112
1.500%, 07/22/47	GBP		118		139,130
					275,242
Total Foreign Government Obligations (Cost $5,664,014)					5,562,426
Quasi Government Bonds  |  0.7%
Canada  |  0.4%
Export Development Canada, 1.800%, 09/01/22	CAD		195		141,104
Germany  |  0.3%
KFW, 1.125%, 12/23/19	GBP		110		140,408
Total Quasi Government Bonds (Cost $283,853)					281,512
Supranational Bonds  |  2.6%
African Development Bank, 2.375%, 09/23/21	USD		169		167,894
Asian Development Bank:
1.875%, 04/12/19	USD		75		74,844
1.000%, 12/15/22	GBP		130		164,286
2.125%, 03/19/25	USD		110		106,024
European Investment Bank, 1.125%, 09/16/21 (#)	CAD		195		138,845
International Bank for Reconstruction & Development:
3.500%, 01/22/21	NZD		115		79,115
2.500%, 08/03/23	CAD		285		210,827
2.900%, 11/26/25	AUD		95		67,753

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

32  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
International Finance Corp., 3.625%, 05/20/20	NZD		165	$	112,948
Total Supranational Bonds (Cost $1,151,118)					1,122,536
US Government Securities  |  0.5%
Federal National Mortgage Association, 2.625%, 09/06/24 (Cost $202,100)	USD		205		204,270
US Municipal Bonds  |  0.8%
California  |  0.6%
California State Build America Bonds, 7.500%, 04/01/34	USD		120		163,528
State of California, 4.500%, 04/01/33	USD		80		83,747
					247,275
Georgia  |  0.2%
Georgia State Build America Bonds Series B, 2.380%, 02/01/27	USD		100		94,549
Total US Municipal Bonds (Cost $354,847)					341,824
US Treasury Securities  |  4.1%
Treasury Inflation Protected Security, 0.125%, 04/15/20	USD		146		142,498
US Treasury Notes:
1.750%, 10/31/20	USD		35		34,516
2.125%, 05/15/25	USD		510		496,415
2.875%, 08/15/28	USD		560		569,058
3.125%, 11/15/41	USD		515		528,180
Total US Treasury Securities (Cost $1,735,790)					1,770,667

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

Annual Report  33

Description	Shares		Fair Value
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Short-Term Investments  |  3.4%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $1,464,341)		1,464,341	$	1,464,341
Total Investments  |  99.8% (Cost $44,326,039) (»)			$	42,728,886
Cash and Other Assets in Excess of Liabilities  |  0.2%				73,858
Net Assets  |  100.0%			$	42,802,744

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

34  Annual Report

Lazard Global Dynamic Multi-Asset Portfolio (continued)

Forward Currency Contracts open at December 31, 2018:

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
AUD		61,760	USD		45,500	CIT	02/14/19	$	—	$	1,964
AUD		109,761	USD		78,600	HSB	02/14/19		—		1,227
CAD		105,087	USD		78,600	HSB	02/14/19		—		1,543
CAD		372,967	USD		282,247	HSB	02/14/19		—		8,762
CHF		42,250	USD		42,401	HSB	02/14/19		749		—
CHF		42,302	USD		43,041	SSB	03/28/19		341		—
CZK		2,738,725	USD		120,373	JPM	01/29/19		1,652		—
EUR		698,999	USD		804,261	CIT	01/10/19		—		2,922
EUR		114,604	USD		131,000	HSB	01/10/19		383		—
EUR		118,268	USD		135,500	HSB	01/10/19		84		—
EUR		652,135	USD		737,200	HSB	01/10/19		10,414		—
EUR		965,777	USD		1,111,310	HSB	01/10/19		—		4,134
EUR		97,555	USD		112,247	JPM	01/10/19		—		409
EUR		317,406	USD		365,748	SSB	03/28/19		529		—
GBP		129,360	USD		162,800	HSB	02/14/19		2,423		—
GBP		149,424	USD		192,539	HSB	02/14/19		—		1,689
GBP		166,404	USD		213,818	HSB	02/14/19		—		1,280
JPY		100,792,291	USD		900,647	CIT	02/14/19		21,720		—
JPY		69,359,503	USD		613,600	HSB	02/14/19		21,120		—
JPY		144,678,583	USD		1,292,864	HSB	02/14/19		31,113		—
JPY		3,026,139	USD		27,392	SSB	03/28/19		399		—
MXN		2,241,269	USD		108,721	HSB	02/14/19		4,595		—
MXN		5,069,698	USD		247,823	HSB	02/14/19		8,494		—
NZD		64,034	USD		43,500	HSB	02/14/19		—		489
NZD		72,491	USD		49,700	HSB	02/14/19		—		1,008
NZD		370,708	USD		251,896	HSB	02/14/19		—		2,891
PLN		233,945	USD		62,031	HSB	02/14/19		534		—
SGD		129,144	USD		94,282	CIT	02/14/19		558		—
USD		54,545	AUD		74,729	CIT	02/14/19		1,868		—
USD		103,178	AUD		142,843	CIT	02/14/19		2,485		—
USD		18,167	AUD		25,427	HSB	02/14/19		243		—
USD		60,101	AUD		83,227	HSB	02/14/19		1,432		—
USD		135,809	AUD		189,657	HSB	02/14/19		2,117		—
USD		200,215	AUD		277,228	JPM	02/14/19		4,793		—
USD		102,800	AUD		144,634	SSB	03/28/19		781		—

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

Annual Report  35

Lazard Global Dynamic Multi-Asset Portfolio (continued)

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
USD		32,687	CAD		43,707	HSB	02/14/19	$	638	$	—
USD		33,242	CAD		44,682	HSB	02/14/19		478		—
USD		361,854	CAD		483,853	HSB	02/14/19		7,060		—
USD		624,834	CAD		825,668	HSB	02/14/19		19,397		—
USD		328,702	CAD		434,290	JPM	02/14/19		10,251		—
USD		375,138	CAD		506,241	SSB	03/28/19		3,591		—
USD		29,935	CLP		20,442,724	CIT	01/31/19		455		—
USD		102,028	CLP		70,598,603	CIT	01/31/19		221		—
USD		118,232	CZK		2,690,099	CIT	01/29/19		—		1,626
USD		64,915	CZK		1,480,189	HSB	02/14/19		—		1,067
USD		210,597	CZK		4,791,516	JPM	01/29/19		—		2,890
USD		36,040	EUR		31,885	HSB	01/10/19		—		513
USD		41,874	EUR		36,724	HSB	01/10/19		—		227
USD		152,700	EUR		134,821	HSB	01/10/19		—		1,860
USD		180,444	GBP		143,406	HSB	02/14/19		—		2,719
USD		494,604	GBP		383,848	HSB	02/14/19		4,340		—
USD		32,408	GBP		25,150	JPM	02/14/19		286		—
USD		49,621	GBP		39,041	SSB	03/28/19		—		346
USD		63,565	HKD		496,661	SSB	03/28/19		—		21
USD		65,395	HUF		18,712,232	HSB	02/14/19		—		1,577
USD		113,875	HUF		31,635,021	JPM	05/08/19		—		22
USD		115,926	HUF		32,622,793	JPM	05/08/19		—		1,527
USD		58,705	ILS		219,857	SSB	03/28/19		—		482
USD		81,400	JPY		9,136,215	CIT	02/14/19		—		2,207
USD		106,300	JPY		11,976,938	HSB	02/14/19		—		3,303
USD		263,377	MXN		5,387,869	HSB	02/14/19		—		9,027
USD		66,675	MXN		1,364,175	JPM	02/14/19		—		2,296
USD		131,596	NOK		1,106,265	CIT	02/14/19		3,406		—
USD		118,566	NOK		1,020,481	HSB	02/14/19		317		—
USD		229,641	NOK		1,929,510	HSB	02/14/19		6,057		—
USD		281,453	NOK		2,437,561	SSB	03/28/19		—		1,511
USD		44,143	NZD		65,011	HSB	02/14/19		474		—
USD		55,998	NZD		82,463	HSB	02/14/19		608		—
USD		582,361	NZD		857,043	HSB	02/14/19		6,684		—
USD		108,381	NZD		159,484	JPM	02/14/19		1,255		—

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

36  Annual Report

Lazard Global Dynamic Multi-Asset Portfolio (concluded)

Currency Purchased	Quantity		Currency Sold	Quantity		Counterparty	Settlement Date	Unrealized Appreciation		Unrealized Depreciation
USD		65,207	PLN		248,083	HSB	02/14/19	$	—	$	1,140
USD		264,698	PLN		998,278	HSB	02/14/19		—		2,280
USD		342,049	SGD		468,488	HSB	02/14/19		—		1,995
USD		55,684	SGD		76,163	SSB	03/28/19		—		306
Total gross unrealized appreciation/depreciation on Forward Currency Contracts								$	184,345	$	67,260

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

Annual Report  37

Description	Shares		Fair Value
Lazard Opportunistic Strategies Portfolio
Exchange-Traded Funds  |  87.5%
Equity Funds  |  63.9%
Energy Select Sector SPDR Fund		52,700	$	3,022,345
ETFMG Prime Mobile Payments ETF		122,600		4,284,870
Fidelity MSCI Health Care Index ETF		165,800		6,850,856
Franklin FTSE Japan ETF		383,700		8,633,250
Industrial Select Sector SPDR Fund		66,700		4,296,147
iShares Expanded Tech Sector ETF		25,000		4,292,767
iShares Expanded Tech-Software Sector ETF		25,400		4,407,535
iShares Global Materials ETF		55,900		3,206,927
iShares MSCI All Country Asia ex Japan ETF		84,400		5,361,932
iShares Transportation Average ETF		25,700		4,240,757
Vanguard Financials ETF		73,000		4,333,280
Vanguard S&P 500 ETF		56,000		12,869,360
				65,800,026
Fixed-Income Funds  |  23.6%
Goldman Sachs Access Treasury 0-1 Year ETF		80,780		8,082,039
iShares 1-3 Year Treasury Bond ETF		97,100		8,119,502
Vanguard Intermediate-Term Corporate Bond ETF		98,000		8,120,280
				24,321,821
Total Exchange-Traded Funds (Cost $93,119,777)				90,121,847
Closed-End Management Investment Companies  |  4.6%
Royce Value Trust, Inc. (Cost $5,594,438)		403,700		4,763,660
Short-Term Investments  |  8.1%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (Cost $8,347,015)		8,347,015		8,347,015

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

38  Annual Report

Description	Fair Value
Lazard Opportunistic Strategies Portfolio (concluded)
Total Investments  |  100.2% (Cost $107,061,230)	$	103,232,522
Liabilities in Excess of Cash and Other Assets  |  (0.2)%		(163,703	)
Net Assets  |  100.0%	$	103,068,819

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

Annual Report  39

Description	Shares		Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (•)
Common Stocks  |  58.5%
Australia  |  4.0%
AGL Energy, Ltd.		654	$	9,463
Atlas Arteria, Ltd.		16,740		73,806
AusNet Services		69,401		76,054
BHP Group PLC		1,339		27,993
BlueScope Steel, Ltd.		2,180		16,827
CSL, Ltd.		397		51,847
Fortescue Metals Group, Ltd.		7,660		22,448
Goodman Group REIT		8,350		62,500
IDP Education, Ltd.		1,231		8,557
Sydney Airport		16,000		75,841
Transurban Group		18,333		150,509
Wesfarmers, Ltd.		970		22,028
Western Areas, Ltd.		9,757		13,616
Woolworths Group, Ltd.		1,932		40,033
				651,522
Canada  |  3.9%
Agnico Eagle Mines, Ltd.		952		38,461
Alimentation Couche-Tard, Inc., Class B		891		44,321
Atco, Ltd., Class I		1,050		29,696
Bank of Montreal		659		43,053
BCE, Inc.		1,219		48,155
Boardwalk Real Estate Investment Trust		1,030		28,526
BRP, Inc.		705		18,250
Canadian National Railway Co.		384		28,440
CI Financial Corp.		2,286		28,935
Great-West Lifeco, Inc.		403		8,319
Kirkland Lake Gold, Ltd.		1,283		33,456
Magna International, Inc.		452		20,517
Martinrea International, Inc.		963		7,660
National Bank of Canada		197		8,088
Northland Power, Inc.		2,171		34,508
Nutrien, Ltd.		321		15,087
Rogers Communications, Inc., Class B		373		19,114

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

40  Annual Report

Description	Shares		Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (•) (continued)
Royal Bank of Canada		1,010	$	69,129
Sun Life Financial, Inc.		261		8,659
TELUS Corp.		479		15,877
The Bank of Nova Scotia		318		15,851
The Toronto-Dominion Bank		1,281		63,675
TransAlta Corp.		2,366		9,688
				637,465
China  |  0.4%
China Vanke Co., Ltd., Class H		18,200		61,271
Denmark  |  0.1%
Novo Nordisk A/S, Class B		202		9,285
Scandinavian Tobacco Group A/S		852		10,265
				19,550
Faeroe Islands  |  0.1%
Bakkafrost P/F		172		8,415
Finland  |  0.1%
Cramo Oyj		593		10,115
France  |  2.5%
Air Liquide SA		195		24,142
AXA SA		513		11,053
Engie SA		1,460		20,867
Eutelsat Communications SA		5,647		111,674
L’Oreal SA		195		44,763
Unibail-Rodamco-Westfield		259		40,007
Vinci SA		1,892		155,480
				407,986
Germany  |  1.6%
ADO Properties SA		1,459		76,284
Allianz SE		67		13,445
Aroundtown SA		3,114		25,844
Deutsche Lufthansa AG		993		22,395
Fraport AG		1,109		79,269
Vonovia SE		1,114		50,560
				267,797

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

Annual Report  41

Description	Shares		Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (•) (continued)
Hong Kong  |  1.8%
Dairy Farm International Holdings, Ltd.		3,900	$	35,222
Jardine Matheson Holdings, Ltd.		272		18,939
Link Real Estate Investment Trust		9,500		95,671
Sun Hung Kai Properties, Ltd.		5,000		70,895
Wharf Real Estate Investment Co., Ltd.		11,000		65,387
				286,114
Ireland  |  0.2%
AerCap Holdings NV (*)		173		6,851
CRH PLC		806		21,246
Ryanair Holdings PLC Sponsored ADR (*)		112		7,990
				36,087
Italy  |  4.2%
ASTM SpA		1,057		21,131
Atlantia SpA (*)		7,889		163,366
Hera SpA		10,527		32,064
Italgas SpA		21,874		125,034
Poste Italiane SpA		1,701		13,652
Snam SpA		34,345		150,335
Societa Iniziative Autostradali e Servizi SpA		1,009		13,915
Terna SpA		27,487		156,033
				675,530
Japan  |  2.5%
East Japan Railway Co.		200		17,777
GLP J-Reit		76		77,632
KDDI Corp.		500		11,915
Mitsubishi Estate Co., Ltd.		5,500		86,190
Mitsui Fudosan Co., Ltd.		3,500		77,551
MS&AD Insurance Group Holdings, Inc.		300		8,516
Nippon Prologis REIT, Inc.		19		40,109
NTT DOCOMO, Inc.		1,300		29,192
Sompo Holdings, Inc.		300		10,126
Sumitomo Metal Mining Co., Ltd.		600		15,958
Tokio Marine Holdings, Inc.		300		14,261
West Japan Railway Co.		300		21,187
				410,414

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

42  Annual Report

Description	Shares		Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (•) (continued)
Luxembourg  |  0.9%
SES SA		7,679	$	147,082
Mexico  |  0.3%
Alpek SAB de CV (*)		16,755		20,505
Corp Inmobiliaria Vesta SAB de CV		20,100		27,442
				47,947
Netherlands  |  0.3%
Aegon NV		1,579		7,340
Akzo Nobel NV		254		20,417
Intertrust NV		595		9,991
NN Group NV		347		13,785
				51,533
New Zealand  |  0.1%
Air New Zealand, Ltd.		3,628		7,555
Spark New Zealand, Ltd.		5,097		14,157
				21,712
Norway  |  0.2%
Equinor ASA		836		17,829
Salmar ASA		220		10,881
				28,710
Philippines  |  0.3%
Megaworld Corp.		497,000		44,889
Singapore  |  0.6%
CapitaLand Mall Trust REIT		34,400		56,916
DBS Group Holdings, Ltd.		459		7,930
Sheng Siong Group, Ltd.		12,700		9,880
Singapore Airlines, Ltd.		1,100		7,574
Singapore Technologies Engineering, Ltd.		3,800		9,691
				91,991
South Korea  |  0.1%
S-Oil Corp.		242		21,115

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

Annual Report  43

Description	Shares		Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (•) (continued)
Spain  |  1.2%
Merlin Properties Socimi SA REIT		3,733	$	46,123
Red Electrica Corporacion SA		6,484		144,429
				190,552
Sweden  |  0.0%
Swedish Match AB		196		7,727
Switzerland  |  0.6%
Ferguson PLC		440		28,180
Roche Holding AG		256		63,302
				91,482
United Arab Emirates  |  0.3%
Emaar Properties PJSC		38,243		43,021
United Kingdom  |  5.7%
Admiral Group PLC		1,374		35,717
Ashtead Group PLC		461		9,551
BP PLC		4,676		29,503
Derwent London PLC REIT		683		24,789
Great Portland Estates PLC REIT		4,672		39,152
Hargreaves Lansdown PLC		784		18,472
Howden Joinery Group PLC		4,404		24,357
Imperial Brands PLC		1,643		49,684
International Consolidated Airlines Group SA		3,513		27,694
National Grid PLC		17,936		173,451
Pennon Group PLC		10,815		95,369
Segro PLC REIT		7,517		56,385
Severn Trent PLC		6,104		141,024
Unilever NV		459		24,940
United Utilities Group PLC		17,756		166,270
				916,358
United States  |  26.5%
Agilent Technologies, Inc.		156		10,524
Alexandria Real Estate Equities, Inc. REIT		498		57,390
American Electric Power Co., Inc.		2,000		149,480
American Express Co.		94		8,960

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

44  Annual Report

Description	Shares		Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (•) (continued)
American Homes 4 Rent, Class A REIT		3,493	$	69,336
American Tower Corp. REIT		603		95,389
Americold Realty Trust REIT		3,629		92,685
Amgen, Inc.		48		9,344
Aon PLC		472		68,610
Apple, Inc.		183		28,866
Bank of America Corp.		491		12,098
Best Buy Co., Inc.		128		6,779
Biogen, Inc. (*)		32		9,629
Boston Properties, Inc. REIT		559		62,915
Bristol-Myers Squibb Co.		250		12,995
Broadridge Financial Solutions, Inc.		86		8,278
Burlington Stores, Inc. (*)		57		9,272
Campbell Soup Co.		546		18,013
Cboe Global Markets, Inc.		82		8,022
CF Industries Holdings, Inc. N Ap		360		15,664
Charles River Laboratories International, Inc. (*)		127		14,374
Church & Dwight Co., Inc.		216		14,204
Cigna Corp.		205		38,934
Cisco Systems, Inc.		267		11,569
Conagra Brands, Inc.		277		5,917
Consolidated Edison, Inc.		770		58,874
Copart, Inc. (*)		421		20,115
CoreSite Realty Corp. REIT		490		42,743
Costco Wholesale Corp.		162		33,001
Cracker Barrel Old Country Store, Inc.		83		13,268
CSX Corp.		919		57,097
Darden Restaurants, Inc.		223		22,269
Deere & Co.		232		34,607
DowDuPont, Inc.		338		18,076
Edison International		2,173		123,361
Eli Lilly & Co.		527		60,984
EOG Resources, Inc.		358		31,221
Equinix, Inc. REIT		242		85,320
Equity Lifestyle Properties, Inc. REIT		586		56,918
Essential Properties Realty Trust, Inc.		2,818		39,001

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

Annual Report  45

Description	Shares		Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (•) (continued)
Essex Property Trust, Inc. REIT		360	$	88,276
Exelon Corp.		398		17,950
Extra Space Storage, Inc. REIT		730		66,050
F5 Networks, Inc. (*)		207		33,540
Fortune Brands Home & Security, Inc.		236		8,966
H&R Block, Inc.		677		17,176
HCA Healthcare, Inc.		65		8,089
Hilton Worldwide Holdings, Inc.		1,220		87,596
Honeywell International, Inc.		53		7,002
Hudson Pacific Properties, Inc. REIT		1,927		55,999
Humana, Inc.		86		24,637
Intel Corp.		1,162		54,533
Intercontinental Exchange, Inc.		290		21,846
IQVIA Holdings, Inc. (*)		183		21,259
Johnson & Johnson		549		70,848
JPMorgan Chase & Co.		248		24,210
Kansas City Southern		800		76,360
KAR Auction Services, Inc.		178		8,494
Kimberly-Clark Corp.		363		41,360
Lamb Weston Holdings, Inc.		256		18,831
Lockheed Martin Corp.		212		55,510
Lowe’s Cos., Inc.		143		13,208
Marathon Petroleum Corp.		449		26,496
Marsh & McLennan Cos., Inc.		254		20,257
MasterCard, Inc., Class A		354		66,782
McDonald’s Corp.		121		21,486
Merck & Co., Inc.		339		25,903
MetLife, Inc.		204		8,376
Mettler-Toledo International, Inc. (*)		61		34,500
Newmont Mining Corp.		820		28,413
NIKE, Inc., Class B		348		25,801
Norfolk Southern Corp.		1,019		152,381
Northrop Grumman Corp.		149		36,490
Occidental Petroleum Corp.		470		28,849
Olin Corp.		987		19,849
Owens Corning		283		12,446

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

46  Annual Report

Description	Shares		Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (•) (continued)
Paychex, Inc.		555	$	36,158
Pfizer, Inc.		233		10,170
PG&E Corp. (*)		5,264		125,020
Prologis, Inc.		1,329		78,039
Quest Diagnostics, Inc.		81		6,745
Raytheon Co.		167		25,609
Republic Services, Inc.		989		71,297
Ross Stores, Inc.		325		27,040
Simon Property Group, Inc. REIT		645		108,354
Skyworks Solutions, Inc.		161		10,790
Starbucks Corp.		868		55,899
Synchrony Financial		341		8,000
Synovus Financial Corp.		291		9,309
Sysco Corp.		1,114		69,803
Target Corp.		231		15,267
Texas Instruments, Inc.		217		20,507
The Allstate Corp.		324		26,772
The Boeing Co.		196		63,210
The Estee Lauder Cos., Inc., Class A		64		8,326
The Hershey Co.		102		10,932
The Home Depot, Inc.		133		22,852
The Macerich Co. REIT		1,399		60,549
The Procter & Gamble Co.		930		85,486
The TJX Cos., Inc.		1,018		45,545
The Toro Co.		184		10,282
The Travelers Cos., Inc.		71		8,502
Thermo Fisher Scientific, Inc.		244		54,605
Tyson Foods, Inc., Class A		165		8,811
UnitedHealth Group, Inc.		216		53,810
Visa, Inc., Class A		308		40,638
Vulcan Materials Co.		228		22,526
Walgreens Boots Alliance, Inc.		194		13,256
Walmart, Inc.		245		22,822
Waste Connections, Inc.		238		17,672
Waste Management, Inc.		784		69,768
Waters Corp. (*)		106		19,997

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

Annual Report  47

Description		Shares		Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (•) (continued)
Westlake Chemical Corp.			361	$	23,887
Weyerhaeuser Co. REIT			1,913		41,818
WW Grainger, Inc.			62		17,506
Zoetis, Inc.			107		9,153
					4,302,603
Total Common Stocks (Cost $10,024,269)					9,478,988
Exchange-Traded Funds  |  1.5%
SPDR Gold Shares (*), (∆) (Cost $229,112)			1,961		237,771
Description	Security Currency		Principal Amount (000)		Fair Value
Foreign Government Obligations  |  8.7%
Australia  |  0.3%
Australia Government Bonds, 3.000%, 09/20/25	AUD		46	$	45,736
Canada  |  0.4%
Canadian Government Real Return Bonds, 2.000%, 12/01/41	CAD		75		68,570
Denmark  |  0.8%
Denmark Inflation Linked Government Bonds, 0.100%, 11/15/23	DKK		801		130,179
France  |  1.3%
Government of France, 1.850%, 07/25/27	EUR		150		208,815

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

48  Annual Report

Description	Security Currency	Principal Amount (000)		Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (•) (continued)
Italy  |  1.4%
Italy Buoni Poliennali Del Tesoro:
0.100%, 05/15/22	EUR		131	$	146,268
2.350%, 09/15/24	EUR		68		82,196
					228,464
New Zealand  |  0.9%
New Zealand Government Bonds, 3.000%, 09/20/30	NZD		175		146,548
Spain  |  1.4%
Spain Government Inflation Linked Bonds:
0.300%, 11/30/21	EUR		119		141,261
1.800%, 11/30/24	EUR		69		89,255
					230,516
Sweden  |  0.3%
Sweden Inflation Linked Bonds, 3.500%, 12/01/28	SEK		190		42,135
United Kingdom  |  1.9%
United Kingdom Gilt Inflation Linked:
2.500%, 04/16/20	GBP		40		182,924
0.750%, 03/22/34	GBP		72		131,873
					314,797
Total Foreign Government Obligations (Cost $1,404,220)					1,415,760
US Treasury Securities  |  15.0%
Treasury Inflation Protected Securities:
0.125%, 04/15/20	USD		788		770,547
1.125%, 01/15/21	USD		875		871,101
2.375%, 01/15/25	USD		224		242,248
2.500%, 01/15/29	USD		479		545,625
Total US Treasury Securities (Cost $2,495,535)					2,429,521

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

Annual Report  49

Description	Shares		Fair Value
Lazard Real Assets and Pricing Opportunities Portfolio (•) (continued)
Short-Term Investments  |  15.7%
State Street Institutional Treasury Money Market Fund, Premier Class, 2.24% (7 day yield) (∆) (Cost $2,539,959)		2,539,959	$	2,539,959
Total Investments  |  99.4% (Cost $16,693,095) (»)			$	16,101,999
Cash and Other Assets in Excess of Liabilities  |  0.6%				104,384
Net Assets  |  100.0%			$	16,206,383

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

50  Annual Report

Lazard Real Assets and Pricing Opportunities Portfolio (•) (continued)

Forward Currency Contracts open at December 31, 2018:

Currency Purchased	Quantity	Currency Sold	Quantity	Counterparty	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
AUD	22,804	USD	16,800	CIT	02/14/19		$	—		$	718
AUD	20,793	USD	14,696	SSB	03/28/19			—			24
EUR	4,151	USD	4,777	HSB	01/10/19			—			18
EUR	46,908	USD	54,109	SSB	03/28/19			18			—
JPY	4,364,268	USD	38,998	CIT	02/14/19			908			—
JPY	8,871,752	USD	79,279	HSB	02/14/19			1,841			—
MXN	2,665,663	USD	130,306	HSB	02/14/19			4,559			—
NZD	23,337	USD	16,000	HSB	02/14/19			—			330
USD	25,655	AUD	35,527	HSB	02/14/19			601			—
USD	401,217	AUD	558,106	SSB	03/28/19			7,389			—
USD	24,388	CAD	32,232	CIT	02/14/19			742			—
USD	31,319	CAD	41,974	CIT	03/28/19			498			—
USD	46,859	CAD	61,920	HSB	02/14/19			1,434			—
USD	12,372	CHF	12,164	CIT	03/28/19			—			99
USD	6,602	CHF	6,486	SSB	03/28/19			—			47
USD	134,033	DKK	870,195	CIT	02/14/19			9			—
USD	915,122	EUR	794,563	CIT	03/28/19			—			1,718
USD	81,091	EUR	71,741	HSB	01/10/19			—			1,146
USD	607,376	EUR	527,837	HSB	01/10/19			2,312			—
USD	434,253	EUR	376,957	SSB	03/28/19			—			715
USD	87,712	GBP	68,061	CIT	02/14/19			683			—
USD	229,047	GBP	177,757	HSB	02/14/19			1,751			—
USD	554,856	GBP	436,261	SSB	03/28/19			—			4,138
USD	39,900	JPY	4,495,577	HSB	02/14/19			—			1,206
USD	131,006	MXN	2,679,967	HSB	02/14/19			—			4,584
USD	100,964	NZD	148,343	CIT	02/14/19			1,359			—
USD	26,533	NZD	39,048	HSB	02/14/19			314			—
USD	54,047	SEK	483,252	HSB	02/14/19			—			613
Total gross unrealized appreciation/depreciation on Forward Currency Contracts							$	24,418		$	15,356

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

Annual Report  51

Lazard Real Assets and Pricing Opportunities Portfolio (•) (continued)

Futures Contracts open at December 31, 2018 (∆):

Type	Number of Contracts	Notional Amount		Expiration Date	Notional Cost		Fair Value		Unrealized Depreciation
Lean Hogs	2		$80,000	02/14/19	$	53,512	$	48,780		$	4,732
Natural Gas	4		40,000	02/26/19		130,734		114,040			16,694
Total gross unrealized depreciation on Futures Contracts										$	21,426

Total Return Swap Agreements open at December 31, 2018 (∆):

Pay	Currency	Counterparty	Notional Amount	Expiration Date	Receive	Payment Frequency	Unrealized Depreciation
0.00%	USD	GSC	$2,449,142	10/24/19	Appreciation, and dividends paid, on commodities in a custom momentum basket	Upon Maturity		$282,655

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

52  Annual Report

Lazard Real Assets and Pricing Opportunities Portfolio (•) (concluded)

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, 2018:

Commodity	Commodity Index Ticker Symbol	Commodity Exposure Expressed as a Percentage of Notional Amount
Aluminum	BCOMAL		5.74	%
Bean Oil	BCOMBO		1.31
Brent Crude	BCOMCO		10.25
Coffee	BCOMKC		1.45
Copper	BCOMHG		10.63
Corn	BCOMCN		7.69
Cotton	BCOMCT		3.15
Crude Oil	BCOMCO		9.83
Gasoline (RBOB)	BCOMRB		0.91
Gold	BCOMGC		3.29
Heating Oil	BCOMHO		2.18
Kansas Wheat	BCOMKW		1.13
Lean Hogs	BCOMLH		1.57
Live Cattle	BCOMLC		3.78
Natural Gas	BCOMNG		9.73
Nickel	BCOMNI		2.77
Silver	BCOMSI		3.91
Soy Meal	BCOMSM		2.59
Soybeans	BCOMSY		7.80
Sugar	BCOMSB		1.79
Wheat	BCOMWH		5.16
Zinc	BCOMZS		3.34
Total			100.00	%

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

Annual Report  53

The Lazard Funds, Inc. Notes to Portfolios of Investments

December 31, 2018

(*)	Non-income producing security.
(#)	Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2018, these securities amounted to 1.3% of net assets of Lazard Global Dynamic Multi-Asset Portfolio.
(§)	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, 2018.
(»)	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 Lazard Real Assets and Pricing Opportunities Portfolio. See Note 1 in the Notes to Financial Statements.

Security Abbreviations:

ADR	—	American Depositary Receipt
BBSW	—	Bank Bill Swap Reference Rate
ETF	—	Exchange-Traded Fund
PJSC	—	Public Joint Stock Company
REIT	—	Real Estate Investment Trust
Currency Abbreviations:
AUD	—	Australian Dollar	ILS	—	Israeli Shekel
CAD	—	Canadian Dollar	JPY	—	Japanese Yen
CHF	—	Swiss Franc	MXN	—	Mexican New Peso
CLP	—	Chilean Peso	NOK	—	Norwegian Krone
CZK	—	Czech Koruna	NZD	—	New Zealand Dollar
DKK	—	Danish Krone	PLN	—	Polish Zloty
EUR	—	Euro	SEK	—	Swedish Krona
GBP	—	British Pound Sterling	SGD	—	Singapore Dollar
HKD	—	Hong Kong Dollar	USD	—	United States Dollar
HUF	—	Hungarian Forint
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.

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

54  Annual Report

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

Industry†	Lazard Global Dynamic Multi-Asset Portfolio			Lazard Real Assets and Pricing Opportunities Portfolio
Common Stocks and Corporate & Quasi Government Bonds
Aerospace & Defense		1.9	%		1.2	%
Air Freight & Logistics		0.2			—
Airlines		0.6			0.4
Auto Components		0.3			0.2
Automobiles		0.6			—
Banks		6.9			1.5
Beverages		2.7			—
Biotechnology		1.2			0.4
Building Products		0.2			0.1
Capital Markets		2.9			0.5
Chemicals		1.0			1.0
Commercial Services & Suppliers		1.2			1.2
Communications Equipment		0.9			0.3
Construction & Engineering		0.4			0.9
Construction Materials		—			0.3
Consumer Finance		0.8			0.1
Diversified Consumer Services		0.1			0.1
Diversified Financial Services		0.8			—
Diversified Telecommunication Services		1.4			0.5
Electric Utilities		1.7			4.9
Electrical Equipment		0.8			—
Electronic Equipment, Instruments & Components		0.5			—
Energy Equipment & Services		0.2			—
Entertainment		0.8			—
Equity Real Estate Investment Trusts (REITs)		1.2			10.3
Food & Staples Retailing		1.5			1.7
Food Products		0.9			0.5
Gas Utilities		0.5			0.8
Health Care Equipment & Supplies		0.4			—
Health Care Providers & Services		1.8			0.8
Health Care Technology		0.1			—
Hotels, Restaurants & Leisure		2.2			1.2
Household Durables		0.1			—
Household Products		1.1			0.9
Independent Power & Renewable Electricity Producers		0.1			0.3
Industrial Conglomerates		0.6			0.1

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

Annual Report  55

Industry†	Lazard Global Dynamic Multi-Asset Portfolio			Lazard Real Assets and Pricing Opportunities Portfolio
Insurance		3.6	%		1.7	%
Interactive Media & Services		0.8			—
Internet & Direct Marketing Retail		1.0			—
IT Services		3.0			0.9
Leisure Products		0.4			0.1
Life Sciences Tools & Services		1.2			0.9
Machinery		1.4			0.3
Media		0.9			1.6
Metals & Mining		0.8			1.2
Multiline Retail		0.4			0.2
Multi-Utilities		0.7			2.0
Oil, Gas & Consumable Fuels		2.5			1.9
Personal Products		1.7			0.5
Pharmaceuticals		4.4			1.6
Professional Services		1.4			0.1
Real Estate Management & Development		1.4			3.9
Road & Rail		1.0			2.2
Semiconductors & Semiconductor Equipment		1.3			0.5
Software		2.4			—
Specialty Retail		2.4			0.8
Technology Hardware, Storage & Peripherals		1.1			0.2
Textiles, Apparel & Luxury Goods		1.0			0.2
Tobacco		0.4			0.4
Trading Companies & Distributors		0.8			0.6
Transportation Infrastructure		—			3.6
Water Utilities		—			2.5
Wireless Telecommunication Services		0.8			0.4
Subtotal		75.4			58.5
Exchange-Traded Funds		—			1.5
Foreign Government Obligations		13.0			8.7
Supranational Bonds		2.6			—
US Government Securities		0.5			—
US Municipal Bonds		0.8			—
US Treasury Securities		4.1			15.0
Short-Term Investments		3.4			15.7
Total Investments		99.8	%		99.4	%

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

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

56  Annual Report

[This page intentionally left blank]

Annual Report  57

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2018	Lazard Global Dynamic Multi-Asset Portfolio				Lazard Opportunistic Strategies Portfolio
ASSETS
Investments in securities, at fair value		$	42,728,886		$	103,232,522
Cash			94,784			—
Cash collateral due from broker on futures contracts and swap agreements			—			—
Foreign currency, at fair value			37,205			222
Receivables for:
Dividends and interest			170,886			97,995
Capital stock sold			179			11,993
Investments sold			2,275			—
Amount due from Investment Manager (Note 3)			—			—
Gross unrealized appreciation on forward currency contracts			184,345			—
Prepaid expenses			—			—
Total assets			43,218,560			103,342,732
LIABILITIES
Foreign currency due to custodian			—			—
Payables for:
Management fees			16,242			93,295
Accrued professional services			32,235			29,514
Accrued custodian fees			25,509			6,207
Capital stock redeemed			15,000			138,706
Investments purchased			255,738			—
Variation margin on open futures contracts			—			—
Gross unrealized depreciation on:
Forward currency contracts			67,260			—
Swap agreements			—			—
Other accrued expenses and payables			3,832			6,191
Total liabilities			415,816			273,913
Net assets		$	42,802,744		$	103,068,819
NET ASSETS
Paid in capital		$	44,644,159		$	109,823,670
Distributable earnings (Accumulated loss)			(1,841,415	)		(6,754,851	)
Net assets		$	42,802,744		$	103,068,819
Institutional Shares
Net assets		$	42,577,373		$	102,782,962
Shares of capital stock outstanding*			4,593,006			11,766,647
Net asset value, offering and redemption price per share		$	9.27		$	8.74
Open Shares
Net assets		$	225,371		$	285,857
Shares of capital stock outstanding*			24,305			32,902
Net asset value, offering and redemption price per share		$	9.27		$	8.69
Cost of investments in securities		$	44,326,039		$	107,061,230
Cost of foreign currency		$	37,152		$	219

(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.

58  Annual Report

Lazard Real Assets and Pricing Opportunities Portfolio (a)
	$	16,101,999
		—
		377,940
		—
		51,887
		—
		15,238
		7,996
		24,418
		13,996
		16,593,474
		4,931
		—
		39,773
		15,564
		596
		14,581
		11,606
		15,356
		282,655
		2,029
		387,091
	$	16,206,383
	$	17,258,160
		(1,051,777	)
	$	16,206,383
	$	16,163,794
		1,715,687
	$	9.42
	$	42,589
		4,528
	$	9.41
	$	16,693,095
	$	(4,869	)

Annual Report  59

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2018	Lazard Global Dynamic Multi-Asset Portfolio				Lazard Opportunistic Strategies Portfolio
Investment Income (Loss)
Income
Dividends		$	886,955		$	2,659,677
Interest			333,563			406,079
Total investment income*			1,220,518			3,065,756
Expenses
Management fees (Note 3)			431,101			1,310,982
Professional services			48,197			50,354
Custodian fees			159,970			42,256
Registration fees			35,477			37,716
Administration fees			16,561			26,212
Shareholders’ services			23,059			24,230
Shareholders’ reports			4,909			13,977
Directors’ fees and expenses			7,078			9,916
Distribution fees (Open Shares)			1,101			1,025
Other^			6,641			8,736
Total gross expenses			734,094			1,525,404
Management fees waived and expenses reimbursed			(247,578	)		(186,444	)
Total net expenses			486,516			1,338,960
Net investment income (loss)			734,002			1,726,796
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			5,390,531			517,428
Foreign currency transactions			6,491			(22,514	)
Forward currency contracts			(24,710	)		—
Futures contracts			—			—
Swap agreements			—			(1,067,563	)
Total net realized gain (loss) on investments, foreign currency transactions, forward currency contracts, futures contracts and swap agreements			5,372,312			(572,649	)
Net change in unrealized appreciation (depreciation) on:
Investments			(9,211,294	)		(16,605,150	)
Foreign currency translations			(1,638	)		(6	)
Forward currency contracts			186,804			—
Futures contracts			—			—
Swap agreements			—			(339,094	)
Total net change in unrealized appreciation (depreciation) on investments, foreign currency translations, forward currency contracts, futures contracts and swap agreements			(9,026,128	)		(16,944,250	)
Net realized and unrealized gain (loss) on investments, foreign currency transactions, forward currency contracts, futures contracts and swap agreements			(3,653,816	)		(17,516,899	)
Net increase (decrease) in net assets resulting from operations		$	(2,919,814	)	$	(15,790,103	)
* Net of foreign withholding taxes of		$	52,991		$	—
^ Includes interest on line of credit of		$	—		$	—

(a) Consolidated Statement of Operations.

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

60  Annual Report

Lazard Real Assets and Pricing Opportunities Portfolio (a)
	$	328,720
		104,533
		433,253
		124,538
		56,366
		106,330
		23,312
		12,049
		22,175
		3,384
		15,621
		240
		9,805
		373,820
		(213,357	)
		160,463
		272,790
		424,072
		(6,509	)
		180,580
		(2,795	)
		(53,662	)
		541,686
		(1,878,564	)
		234
		96,825
		(29,485	)
		(323,973	)
		(2,134,963	)
		(1,593,277	)
	$	(1,320,487	)
	$	22,154
	$	30

Annual Report  61

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

	Lazard Global Dynamic Multi-Asset Portfolio
	Year Ended December 31, 2018				Year Ended December 31, 2017
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	734,002		$	825,699
Net realized gain (loss) on investments, foreign currency transactions, forward currency contracts, futures contracts and swap agreements			5,372,312			2,467,833
Net change in unrealized appreciation (depreciation) on investments, foreign currency translations, forward currency contracts, futures contracts and swap agreements			(9,026,128	)		7,699,622
Net increase (decrease) in net assets resulting from operations			(2,919,814	)		10,993,154
Distributions to shareholders (Note 2(g))
Net investment income and net realized gains
Institutional Shares			(5,801,393	)		(3,287,008	)
Open Shares			(57,021	)		(18,447	)
Return of capital
Institutional Shares			—			—
Open Shares			—			—
Net decrease in net assets resulting from distributions			(5,858,414	)		(3,305,455	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			4,837,074			9,364,602
Open Shares			64,758			267,652
Net proceeds from reinvestment of distributions
Institutional Shares			5,801,393			3,280,747
Open Shares			57,021			18,447
Cost of shares redeemed
Institutional Shares			(28,135,810	)		(77,323	)
Open Shares			(218,269	)		(121,195	)
Net increase (decrease) in net assets from capital stock transactions			(17,593,833	)		12,732,930
Total increase (decrease) in net assets			(26,372,061	)		20,420,629
Net assets at beginning of period			69,174,805			48,754,176
Net assets at end of period		$	42,802,744		$	69,174,805

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

62  Annual Report

Lazard Opportunistic Strategies Portfolio						Lazard Real Assets and Pricing Opportunities Portfolio (a)
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018			Year Ended December 31, 2017
$	1,726,796		$	1,502,302		$	272,790		$	279,707
	(572,649	)		13,854,303			541,686			(72,726	)
	(16,944,250	)		9,439,570			(2,134,963	)		1,254,421
	(15,790,103	)		24,796,175			(1,320,487	)		1,461,402
	(6,028,662	)		(11,066,751	)		(831,453	)		(402,671	)
	(17,872	)		(29,962	)		(2,339	)		(2,642	)
	(262,110	)		—			—			—
	(777	)		—			—			—
	(6,309,421	)		(11,096,713	)		(833,792	)		(405,313	)
	18,043,749			35,317,474			439,718			3,538,199
	96,400			49,791			3,168			164,978
	5,917,185			10,077,754			831,453			402,671
	18,147			29,181			2,339			2,641
	(50,917,387	)		(48,762,309	)		(771,616	)		(272,334	)
	(184,943	)		(533,355	)		(91,095	)		(35,527	)
	(27,026,849	)		(3,821,464	)		413,967			3,800,628
	(49,126,373	)		9,877,998			(1,740,312	)		4,856,717
	152,195,192			142,317,194			17,946,695			13,089,978
$	103,068,819		$	152,195,192		$	16,206,383		$	17,946,695

Annual Report  63

	Lazard Global Dynamic Multi-Asset Portfolio
	Year Ended December 31, 2018			Year Ended December 31, 2017
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		5,986,168			4,855,126
Shares sold		419,838			850,861
Shares issued to shareholders from reinvestment of distributions		636,322			286,980
Shares redeemed		(2,449,322	)		(6,799	)
Net increase (decrease)		(1,393,162	)		1,131,042
Shares outstanding at end of period		4,593,006			5,986,168
Open Shares†
Shares outstanding at beginning of period		36,012			21,043
Shares sold		5,633			24,809
Shares issued to shareholders from reinvestment of distributions		6,247			1,613
Shares redeemed		(23,587	)		(11,453	)
Net increase (decrease)		(11,707	)		14,969
Shares outstanding at end of period		24,305			36,012

(a)	Consolidated Statements of Changes in Net Assets.
†	The inception date for the Lazard Real Assets and Pricing Opportunities Portfolio Open Shares was January 9, 2017.

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

64  Annual Report

Lazard Opportunistic Strategies Portfolio						Lazard Real Assets and Pricing Opportunities Portfolio (a)
Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2018			Year Ended December 31, 2017
	14,316,598			14,593,661			1,662,975			1,309,562
	1,734,091			3,454,939			42,171			341,080
	648,666			953,430			86,381			38,062
	(4,932,708	)		(4,685,432	)		(75,840	)		(25,729	)
	(2,549,951	)		(277,063	)		52,712			353,413
	11,766,647			14,316,598			1,715,687			1,662,975
	40,563			85,313			12,627			—
	9,206			4,746			299			15,804
	1,980			2,774			242			249
	(18,847	)		(52,270	)		(8,640	)		(3,426	)
	(7,661	)		(44,750	)		(8,099	)		12,627
	32,902			40,563			4,528			12,627

Annual Report  65

The Lazard Funds, Inc. Financial Highlights

LAZARD GLOBAL DYNAMIC MULTI-ASSET PORTFOLIO

Selected data for a share of capital stock outstanding	Year Ended						For the Period 5/27/16* to
throughout each period	12/31/18			12/31/17			12/31/16
Institutional Shares
Net asset value, beginning of period	$	11.49		$	10.00		$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.16			0.15			0.06
Net realized and unrealized gain (loss)		(0.92	)		1.92			(0.01	)
Total from investment operations		(0.76	)		2.07			0.05
Less distributions from:
Net investment income		(0.20	)		(0.14	)		(0.05	)
Net realized gains		(1.26	)		(0.44	)		—	(b)
Total distributions		(1.46	)		(0.58	)		(0.05	)
Net asset value, end of period	$	9.27		$	11.49		$	10.00
Total Return (c)		–6.35	%		20.69	%		0.53	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	42,577		$	68,761		$	48,544
Ratios to average net assets (d):
Net expenses		0.90	%		0.90	%		0.90	%
Gross expenses		1.34	%		1.42	%		2.14	%
Net investment income (loss)		1.36	%		1.40	%		0.95	%
Portfolio turnover rate		120	%		102	%		67	%

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

66  Annual Report

Selected data for a share of capital stock outstanding	Year Ended						For the Period 5/27/16* to
throughout each period	12/31/18			12/31/17			12/31/16
Open Shares
Net asset value, beginning of period	$	11.49		$	10.00		$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.12			0.12			0.04
Net realized and unrealized gain (loss)		(0.91	)		1.91			(0.01	)
Total from investment operations		(0.79	)		2.03			0.03
Less distributions from:
Net investment income		(0.17	)		(0.10	)		(0.03	)
Net realized gains		(1.26	)		(0.44	)		—	(b)
Total distributions		(1.43	)		(0.54	)		(0.03	)
Net asset value, end of period	$	9.27		$	11.49		$	10.00
Total Return (c)		–6.64	%		20.33	%		0.35	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	225		$	414		$	210
Ratios to average net assets (d):
Net expenses		1.20	%		1.20	%		1.20	%
Gross expenses		4.20	%		5.79	%		9.43	%
Net investment income (loss)		1.07	%		1.09	%		0.72	%
Portfolio turnover rate		120	%		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 DST; 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  67

LAZARD OPPORTUNISTIC STRATEGIES PORTFOLIO

Selected data for a share of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Institutional Shares
Net asset value, beginning of period	$	10.60		$	9.70		$	9.36		$	10.02		$	10.24
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.14			0.10			0.16	^		0.07			0.04
Net realized and unrealized gain (loss)		(1.48	)		1.62			0.34			(0.46	)		0.41
Total from investment operations		(1.34	)		1.72			0.50			(0.39	)		0.45
Less distributions from:
Net investment income		(0.02	)		(0.14	)		(0.14	)		(0.03	)		(0.28	)
Net realized gains		(0.48	)		(0.68	)		—			(0.24	)		(0.39	)
Return of capital		(0.02	)		—			(0.02	)		—	(b)		—
Total distributions		(0.52	)		(0.82	)		(0.16	)		(0.27	)		(0.67	)
Redemption fees		—			—			—	(b)		—	(b)		—	(b)
Net asset value, end of period	$	8.74		$	10.60		$	9.70		$	9.36		$	10.02
Total Return (c)		–12.72	%		17.74	%		5.36	%^		–3.80	%		4.40	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	102,783		$	151,767		$	141,494		$	170,626		$	185,489
Ratios to average net assets:
Net expenses		1.02	%		1.05	%		1.02	%^		1.02	%		1.02	%
Gross expenses		1.15	%		1.18	%		1.19	%		1.18	%		1.15	%
Gross expenses, excluding expenses on securities sold short		1.15	%†		1.15	%		1.19	%		1.18	%		1.15	%
Net investment income (loss)		1.32	%		0.99	%		1.72	%^		0.66	%		0.35	%
Portfolio turnover rate:
Excluding securities sold short		227	%		142	%		238	%		255	%		265	%
Including securities sold short		N/A	†		153	%		N/A			N/A			N/A

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

68  Annual Report

Selected data for a share of capital stock outstanding	Year Ended
throughout each period	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Open Shares
Net asset value, beginning of period	$	10.55		$	9.65		$	9.32		$	10.02		$	10.24
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.10			0.05			0.13	^		0.01			0.01
Net realized and unrealized gain (loss)		(1.46	)		1.64			0.33			(0.47	)		0.41
Total from investment operations		(1.36	)		1.69			0.46			(0.46	)		0.42
Less distributions from:
Net investment income		—			(0.11	)		(0.11	)		—	(b)		(0.25	)
Net realized gains		(0.48	)		(0.68	)		—			(0.24	)		(0.39	)
Return of capital		(0.02	)		—			(0.02	)		—	(b)		—
Total distributions		(0.50	)		(0.79	)		(0.13	)		(0.24	)		(0.64	)
Redemption fees		—			—			—			—			—	(b)
Net asset value, end of period	$	8.69		$	10.55		$	9.65		$	9.32		$	10.02
Total Return (c)		–13.05	%		17.48	%		4.97	%^		–4.51	%		4.10	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	286		$	428		$	823		$	725		$	3,950
Ratios to average net assets:
Net expenses		1.32	%		1.34	%		1.32	%^		1.32	%		1.32	%
Gross expenses		4.22	%		3.87	%		3.31	%		1.66	%		1.81	%
Gross expenses, excluding expenses on securities sold short		4.22	%†		3.85	%		3.31	%		1.66	%		1.81	%
Net investment income (loss)		1.00	%		0.53	%		1.43	%^		0.15	%		0.14	%
Portfolio turnover rate:
Excluding securities sold short		227	%		142	%		238	%		255	%		265	%
Including securities sold short		N/A	†		153	%		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 DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
†	No securities sold short in current year.

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

Annual Report  69

LAZARD REAL ASSETS AND PRICING OPPORTUNITIES PORTFOLIO^

Selected data for a share of capital stock outstanding	Year Ended						For the Period 12/30/16* to
throughout each period	12/31/18			12/31/17			12/31/16
Institutional Shares
Net asset value, beginning of period	$	10.71		$	10.00		$	10.00
Income (Loss) from investment operations:
Net investment income (loss) (a)		0.16			0.19			—
Net realized and unrealized gain (loss)		(0.96	)		0.78			—	(b)
Total from investment operations		(0.80	)		0.97			—	(b)
Less distributions from:
Net investment income		(0.25	)		(0.13	)		—
Net realized gains		(0.24	)		(0.13	)		—
Total distributions		(0.49	)		(0.26	)		—
Net asset value, end of period	$	9.42		$	10.71		$	10.00
Total Return (c)		–7.47	%		9.80	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	16,164		$	17,812		$	13,090
Ratios to average net assets (d):
Net expenses		0.90	%		0.90	%		0.00	%
Gross expenses		2.04	%		3.13	%		3.49	%
Net investment income (loss)		1.53	%		1.79	%		0.00	%
Portfolio turnover rate		72	%		76	%		0	%

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

70  Annual Report

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/18				For the Period 1/9/17* to 12/31/17
Open Shares
Net asset value, beginning of period		$	10.70			$	10.03
Income (Loss) from investment operations:
Net investment income (loss) (a)			0.14				0.18
Net realized and unrealized gain (loss)			(0.96	)			0.74
Total from investment operations			(0.82	)			0.92
Less distributions from:
Net investment income			(0.23	)			(0.12	)
Net realized gains			(0.24	)			(0.13	)
Total distributions			(0.47	)			(0.25	)
Net asset value, end of period		$	9.41			$	10.70
Total Return (c)			–7.70	%			9.17	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	43			$	135
Ratios to average net assets (d):
Net expenses			1.15	%			1.15	%
Gross expenses			13.72	%			20.65	%
Net investment income (loss)			1.29	%			1.69	%
Portfolio turnover rate			72	%			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 DST; 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  71

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2018

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. As of December 31, 2018, the Fund was comprised of thirty-three no-load portfolios (each referred to as a “Portfolio”). This report includes only the financial statements of Global Dynamic Multi-Asset, Opportunistic Strategies (formerly, Capital Allocator Opportunistic Strategies) and Real Assets and Pricing Opportunities Portfolios. The financial statements of the other thirty 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 Portfolios’ 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, 2018, net assets of the Portfolio were $16,206,383, of

72  Annual Report

which $2,521,420, or 15.56%, 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 US Generally Accepted Accounting Principles (“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.

Annual Report  73

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 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

74  Annual Report

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 represent net foreign currency gain (loss) from forward currency contracts, disposition of

Annual Report  75

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, 2018, the Global Dynamic Multi-Asset 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

76  Annual Report

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, 2018, the Real Assets and Pricing Opportunities Portfolio traded in futures contracts.

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

Commodity-linked swap agreements involve commitments to pay interest in exchange for a commodity-linked return based on a

Annual Report  77

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, 2018, the Opportunistic Strategies and Real Assets and Pricing Opportunities Portfolios traded in swap agreements.

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

At December 31, 2018, the Portfolios had no unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains.

Under current tax law, 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, 2018, the following Portfolios elected to defer such losses as follows:

Portfolio	Post-October Capital Loss Deferral		Late-Year Ordinary Loss Deferral
Opportunistic Strategies		$2,780,060		$50
Real Assets and Pricing Opportunities		43,215		—

78  Annual Report

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)
Global Dynamic Multi-Asset	$	44,651,867		$1,076,461		$3,025,222		$(1,948,761	)
Opportunistic Strategies		107,195,069		771,298		4,733,845		(3,962,547	)
Real Assets and Pricing Opportunities		16,753,545		341,631		1,353,995		(1,012,364	)

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. Each Portfolio files a US 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 the Real Assets and Pricing Opportunities Portfolio’s dividends from net investment income (if any), will be declared and paid quarterly. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Portfolios, if not distributed. The Portfolios intend to declare and distribute these amounts, at least annually, to shareholders; however, to avoid taxation, a second distribution may be required. Differences in per share distributions, by class, are generally due to differences in class specific expenses.

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

Annual Report  79

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.

The Global Dynamic Multi-Asset Portfolio intends, on its 2018 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 Portfolio’s 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 Portfolio would otherwise be required to distribute as dividends to shareholders in order for the Portfolio to avoid federal income and excise taxes. This practice reduces the amount of distributions required to be made to non-redeeming 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 Portfolio’s shares, the total return on a shareholder’s investment is not affected by the Portfolio’s 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, certain fixed-income securities, expenses, derivatives 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			Distributable Earnings (Accumulated Loss)
Global Dynamic Multi-Asset	$	489,582			$(489,582	)
Opportunistic Strategies		(262,887	)		262,887
Real Assets and Pricing Opportunities		(14,664	)		14,664

In October 2018, the US Securities and Exchange Commission (the “SEC”) adopted amendments to certain disclosure requirements

80  Annual Report

included in Regulation S-X that had become “redundant, duplicative, overlapping, outdated or superseded, in light of the other Commission disclosure requirements, GAAP or changes in the information environment.” The compliance date for the amendments to Regulation S-X was November 5, 2018 (for reporting period end dates of September 30, 2018 or after). The Fund adopted these amendments and such changes are reflected in these financial statements.

Under these amendments, it is no longer required to differentiate distributions from earnings as either net investment income or net realized capital gains or disclose a Portfolio’s undistributed net investment income within a Portfolio’s Statement of Changes in Net Assets. The presentation within the Portfolio’s Statement of Changes in Net Assets for the year ended December 31, 2017 also has been modified accordingly.

Below is the characterization of the Portfolio distributions and undistributed (distributions in excess of) net investment income (loss) for the year ended December 31, 2017 as previously disclosed in the Statement of Changes in Net Assets within the December 31, 2017 Annual Report:

From net investment income	Institutional Shares		Open Shares
Global Dynamic Multi-Asset	$	788,919	$	3,510
Opportunistic Strategies		1,886,787		4,028
Real Assets and Pricing Opportunities		200,932		1,078
From net realized gains	Institutional Shares		Open Shares
Global Dynamic Multi-Asset	$	2,498,089	$	14,937
Opportunistic Strategies		9,179,964		25,934
Real Assets and Pricing Opportunities		201,739		1,564
Undistributed (Distributions in excess of) net investment income (loss)			Amount
Global Dynamic Multi-Asset			$(119,957		)
Opportunistic Strategies			(354,162		)
Real Assets and Pricing Opportunities			(161,431		)

Annual Report  81

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2018		2017		2018		2017
Global Dynamic Multi-Asset	$	2,449,223	$	3,113,472	$	3,409,191	$	191,983
Opportunistic Strategies*		1,243,851		10,390,559		4,802,683		706,154
Real Assets and Pricing Opportunities		429,050		401,034		404,742		4,279

* Opportunistic Strategies Portfolio had return of capital distribution of $262,887 in 2018.

At December 31, 2018, the components of distributable earnings (accumulated loss), 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
Global Dynamic Multi-Asset		$154,887		$	—		$	(1,996,302	)
Opportunistic Strategies		(50	)		(2,780,060	)		(3,974,741	)
Real Assets and Pricing Opportunities		33,818			(43,215	)		(1,042,380	)

(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

82  Annual Report

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. 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 each Portfolio’s average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:

Annual Report  83

Portfolio	Annual Rate
Global Dynamic Multi-Asset		0.80	%
Opportunistic Strategies		1.00
Real Assets and Pricing Opportunities		0.70

The Investment Manager provides investment management and other services to the Subsidiary. The Investment Manager does not receive separate compensation from the Subsidiary for providing such services. However, 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 to waive its fees and, if necessary, reimburse the Portfolios until May 1, 2019 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 percentages of the value of the Portfolio’s average daily net assets set forth opposite the Portfolio’s name on table below. The Fund, on behalf of the Portfolio, may deduct from the payment to be made to the Investment Manager under the Management Agreement, or the Investment Manager will bear, such excess expense.

Portfolio	Institutional Shares			Open Shares
Global Dynamic Multi-Asset		0.90	%		1.20	%
Opportunistic Strategies		1.02			1.32
Real Assets and Pricing Opportunities		0.90			1.15

During the year ended December 31, 2018, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:

84  Annual Report

	Institutional Shares				Open Shares
Portfolio	Management Fees Waived		Expenses Reimbursed		Management Fees Waived		Expenses Reimbursed
Global Dynamic Multi-Asset	$	234,375	$	—	$	3,518	$	9,685
Opportunistic Strategies		174,559		—		4,101		7,784
Real Assets and Pricing Opportunities		123,863		77,375		675		11,444

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 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.

Annual Report  85

DST is the Fund’s transfer and dividend disbursing agent.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. For the year ended December 31, 2018, each Director who is not an affiliated person of the Investment Manager or any of its affiliates was paid by all of the funds in the Lazard Fund Complex: (1) an annual retainer of $225,000, (2) an additional annual fee of $32,500 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 $22,500 to the Audit Committee Chair. Effective January 1, 2019, the aggregate compensation for Independent Directors for the Lazard Fund Complex is comprised of: (1) an annual retainer of $232,000, (2) an additional annual fee of $33,000 to the lead Independent Director, and (3) an additional annual fee of $23,000 to the Audit Committee Chair. The Independent Directors may be paid additional compensation for participation on ad hoc committees or other work performed on behalf of the Board. The Independent Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Independent Directors’ fees are allocated among the funds in the Lazard Fund Complex at a rate of $5,000 per fund with the remainder allocated based upon each fund’s proportionate share of combined net assets. The Statements of Operations show the 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, 2018 were as follows:

Portfolio	Purchases		Sales
Global Dynamic Multi-Asset		$  59,207,385		$  83,595,744
Opportunistic Strategies		240,902,288		250,869,759
Real Assets and Pricing Opportunities		10,519,782		10,641,943

86  Annual Report

	US Treasury Securities
Portfolio	Purchases		Sales
Global Dynamic Multi-Asset		$3,268,252		$2,116,303
Real Assets and Pricing Opportunities		114,569		654,939

For the year ended December 31, 2018, 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, 2018, the Investment Manager owned 13.27% of the outstanding shares of the Global Dynamic Multi-Asset 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, 2018, 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
						`
Real Assets and Pricing Opportunities	$	87,500	$	100,000		3.05	%		4

* For days borrowings were outstanding.

Management believes that the fair value of the liability under the line of credit is equivalent to the recorded amount based on its short-term maturity and interest rate, which fluctuates with LIBOR.

Annual Report  87

A Portfolio’s outstanding balance on the line of credit, if any, would be categorized as Level 2.

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 generally does not intend to actively hedge the Portfolio’s foreign currency exposure.

88  Annual Report

(d) Realty Companies, Real Estate Investments and REITs Risk—Portfolios that invest in Realty Companies, Real Estate Investments and/or REITs could lose money due to the performance of real estate-related securities even if securities markets generally are experiencing positive results. The performance of investments made by a Portfolio may be determined to a great extent by the current status of the real estate industry in general, or by other factors (such as interest rates and the availability of loan capital) that may affect the real estate industry, even if other industries would not be so affected. Consequently, the investment strategies of a Portfolio could lead to securities investment results that may be significantly different from investments in securities of other industries or sectors or in a more broad-based portfolio generally.

The risks related to investments in Realty Companies and Real Estate Investments include, but are not limited to: adverse changes in general economic and local market conditions; adverse developments in employment; changes in supply or demand for similar or competing properties; unfavorable changes in applicable taxes, governmental regulations and interest rates; operating or development expenses; and lack of available financing.

REITs are subject to similar risks as Real Estate Investments and Realty Companies. The risks related to investments in Real Estate Investments and Realty Companies include, but are not limited to: adverse changes in general economic and local market conditions; adverse developments in employment; changes in supply or demand for similar or competing properties; unfavorable changes in applicable taxes, governmental regulations and interest rates; operating or development expenses; and lack of available financing. Due to certain special considerations that apply to REITs, investments in REITs may carry additional risks not necessarily present in investments in other securities. REIT securities (including those trading on national exchanges) typically have trading volumes that are less than those of common stocks of other stocks traded on national exchanges, which may affect a Portfolio’s ability to trade or liquidate those securities. An investment in REITs may be adversely affected if the REIT fails to comply with applicable laws and regulations. Failure to qualify with any of these require-

Annual Report  89

ments 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) 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.

(f) 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 otherwise affect the character, timing and/or amount of the Portfolio’s taxable income or any gains and distributions made by the Portfolio.

(g) 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.

90  Annual Report

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. 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.

Annual Report  91

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.

(h) 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,

92  Annual Report

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 periodic 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 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.

(i) Natural Resources Risk—Investments related to natural resources may be affected by numerous factors, including events occurring in nature, inflationary pressures and domestic and international politics. For example, events occurring in nature (such as earthquakes or fires in prime natural resource areas) and political events (such as coups or military confrontations) can affect the overall supply of a natural resource and the value of companies involved in such natural resource. Political risks and other risks to which non-US companies are subject also may affect US companies if they have significant operations or investments in non-US countries. In addition, interest rates, prices of raw materials and other commodities, international economic developments, energy conservation, tax and other government regulations (both US and non-US) may affect the supply of and demand for natural

Annual Report  93

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 disad-

94  Annual Report

vantageous 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 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.

Annual Report  95

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

96  Annual Report

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  97

The following table summarizes the valuation of the Portfolios’ assets and liabilities by each fair value hierarchy level as of December 31, 2018:

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, 2018
Global Dynamic Multi-Asset Portfolio
Assets:
Common Stocks*
Australia		$	26,908	$	614,861		$	—	$	641,769
Austria			—		17,393			—		17,393
Belgium			92,134		100,736			—		192,870
Canada			1,338,186		—			—		1,338,186
China			—		26,274			—		26,274
Denmark			—		57,537			—		57,537
Finland			215,063		—			—		215,063
France			187,874		571,873			—		759,747
Germany			103,740		440,067			—		543,807
Hong Kong			322,950		210,826			—		533,776
Israel			96,736		159,704			—		256,440
Italy			—		380,585			—		380,585
Japan			598,047		1,929,078			—		2,527,125
Malta			—		20,208			—		20,208
Netherlands			246,163		166,002			—		412,165
New Zealand			—		23,811			—		23,811
Norway			—		474,881			—		474,881
Portugal			—		22,898			—		22,898
Singapore			171,051		115,498			—		286,549
Spain			—		94,504			—		94,504
Sweden			325,800		60,710			—		386,510
Switzerland			244,698		326,391			—		571,089
United Kingdom			1,356,354		888,199			—		2,244,553
United States			15,992,904		31,082			—		16,023,986
Corporate Bonds*			—		3,929,584			—		3,929,584
Foreign Government Obligations*			—		5,562,426			—		5,562,426
Quasi Government Bonds*			—		281,512			—		281,512
Supranational Bonds			—		1,122,536			—		1,122,536
US Government Securities			—		204,270			—		204,270
US Municipal Bonds			—		341,824			—		341,824
US Treasury Securities			—		1,770,667			—		1,770,667
Short-Term Investments			1,464,341		—			—		1,464,341
Other Financial Instruments†
Forward Currency Contracts			—		184,345			—		184,345
Total		$	22,782,949	$	20,130,282		$	—	$	42,913,231
Liabilities:
Other Financial Instruments†
Forward Currency Contracts		$	—	$	(67,260	)	$	—	$	(67,260	)

98  Annual Report

Description	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2018
Opportunistic Strategies Portfolio
Exchange-Traded Funds		$	90,121,847	$	—	$	—	$	90,121,847
Closed-End Management Investment Companies			4,763,660		—		—		4,763,660
Short-Term Investments			8,347,015		—		—		8,347,015
Total		$	103,232,522	$	—	$	—	$	103,232,522
Real Assets and Pricing Opportunities Portfolio
Assets:
Common Stocks*
Australia		$	—	$	651,522	$	—	$	651,522
Canada			637,465		—		—		637,465
China			—		61,271		—		61,271
Denmark			—		19,550		—		19,550
Faeroe Islands			—		8,415		—		8,415
Finland			—		10,115		—		10,115
France			—		407,986		—		407,986
Germany			—		267,797		—		267,797
Hong Kong			—		286,114		—		286,114
Ireland			14,841		21,246		—		36,087
Italy			—		675,530		—		675,530
Japan			—		410,414		—		410,414
Luxembourg			—		147,082		—		147,082
Mexico			47,947		—		—		47,947
Netherlands			—		51,533		—		51,533
New Zealand			—		21,712		—		21,712
Norway			—		28,710		—		28,710
Philippines			—		44,889		—		44,889
Singapore			—		91,991		—		91,991
South Korea			—		21,115		—		21,115
Spain			—		190,552		—		190,552
Sweden			—		7,727		—		7,727
Switzerland			—		91,482		—		91,482
United Arab Emirates			—		43,021		—		43,021
United Kingdom			—		916,358		—		916,358
United States			4,302,603		—		—		4,302,603
Exchange-Traded Funds			237,771		—		—		237,771
Foreign Government Obligations*			—		1,415,760		—		1,415,760
US Treasury Securities			—		2,429,521		—		2,429,521
Short-Term Investments			2,539,959		—		—		2,539,959
Other Financial Instruments†
Forward Currency Contracts			—		24,418		—		24,418
Total		$	7,780,586	$	8,345,831	$	—	$	16,126,417

Annual Report  99

Description	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2018
Liabilities:
Other Financial Instruments†
Forward Currency Contracts		$	—		$	(15,356	)	$	—	$	(15,356	)
Futures Contracts			(21,426	)		—			—		(21,426	)
Swap Agreements			—			(282,655	)		—		(282,655	)
Total		$	(21,426	)	$	(298,011	)	$	—	$	(319,437	)

*	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).

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.

100  Annual Report

During the year ended December 31, 2018, the approximate average monthly notional exposure for derivative instruments was as follows:

	Global						Real Assets
	Dynamic		Opportunistic				and Pricing
	Multi-Asset		Strategies				Opportunities
Derivative Instruments	Portfolio		Portfolio				Portfolio
Forward currency contracts:
Average amounts purchased		$8,300,000		$	—			$	500,000
Average amounts sold		8,300,000			—				5,000,000
Futures contracts:
Average notional value of contracts – long		—			—				100,000
Average notional value of contracts – short		—			—				100,000	†
Total return swap agreements:
Average notional value		—			13,800,000	#			2,300,000

†	Represents average monthly notional exposure for the one month the derivative instrument was open during the period.
#	Represents average monthly notional exposure for the eight months the derivative instrument was open during the period.

Global Dynamic Multi-Asset Portfolio

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2018:

Assets – Derivative Financial Instruments		Total
Forward currency contracts	Unrealized appreciation on forward currency contracts	$	184,345
Liabilities – Derivative Financial Instruments		Total
Forward currency contracts	Unrealized depreciation on forward currency contracts	$	67,260

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2018 was:

Net Realized Gain (Loss) from:	Total
Forward currency contracts	$	(24,710	)
Net Change in Unrealized Appreciation (Depreciation) on:	Total
Forward currency contracts	$	186,804

Annual Report  101

Opportunistic Strategies Portfolio

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2018 was:

Net Realized Gain (Loss) from:	Equity Contracts
Swap agreements		$	(1,067,563	)
Net Change in Unrealized Appreciation (Depreciation) on:	Equity Contracts
Swap agreements		$	(339,094	)

Real Assets and Pricing Opportunities Portfolio

The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2018:

							Foreign
	Commodity			Equity			Currency
Assets – Derivative Financial Instruments	Contracts			Contracts			Contracts			Total
Forward currency contracts
Unrealized appreciation on forward currency contracts		$	—		$	—		$	24,418	$	24,418
							Foreign
	Commodity			Equity			Currency
Liabilities – Derivative Financial Instruments	Contracts			Contracts			Contracts			Total
Forward currency contracts
Unrealized depreciation on forward currency contracts		$	—		$	—		$	15,356	$	15,356
Futures contracts
Unrealized depreciation on futures contracts			21,426			—			—		21,426
Swap agreements
Unrealized depreciation on swap agreements			—			282,655			—		282,655
Total		$	21,426		$	282,655		$	15,356	$	319,437

102  Annual Report

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2018 was:

										Foreign
	Commodity				Equity					Currency
Net Realized Gain (Loss) from:	Contracts				Contracts					Contracts		Total
Forward currency contracts		$	—			$	—			$	180,580	$	180,580
Futures contracts			(2,795	)			—				—		(2,795	)
Swap agreements			—				(53,662	)			—		(53,662	)
Total		$	(2,795	)		$	(53,662	)		$	180,580	$	124,123
									Foreign
	Commodity				Equity				Currency
Net Change in Unrealized Appreciation (Depreciation) on:	Contracts				Contracts				Contracts			Total
Forward currency contracts		$	—			$	—			$	96,825	$	96,825
Futures contracts			(29,485	)			—				—		(29,485	)
Swap agreements			—				(323,973	)			—		(323,973	)
Total		$	(29,485	)		$	(323,973	)		$	96,825	$	(256,633	)

As of December 31, 2018, the Global Dynamic Multi-Asset 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.

Annual Report  103

The required information for the affected Portfolios are presented in the below table, as of December 31, 2018:

Global Dynamic Multi-Asset Portfolio

						Net Amounts of
				Gross Amounts Offset		Assets Presented
	Gross Amounts of			in the Statement of		in the Statement of
Description	Recognized Assets			Assets and Liabilities		Assets and Liabilities
Forward Currency Contracts		$	184,345	$	—		$	184,345

				Amounts Not Offset
				in the Statement of
				Assets and Liabilities
	Net Amounts of
	Assets Presented
	in the Statement of			Financial			Collateral		Net Amounts of
Counterparty	Assets and Liabilities			Instruments			Received		Derivative Assets
Citibank NA		$	30,713	$	(8,719	)	$	—	$	21,994
HSBC Bank USA NA			129,754		(48,731	)		—		81,023
JPMorgan Chase Bank NA			18,237		(7,144	)		—		11,093
State Street Bank and Trust Co.			5,641		(2,666	)		—		2,975
Total		$	184,345	$	(67,260	)	$	—	$	117,085

						Net Amounts of
				Gross Amounts Offset		Liabilities Presented
	Gross Amounts of			in the Statement of		in the Statement of
Description	Recognized Liabilities			Assets and Liabilities		Assets and Liabilities
Forward Currency Contracts		$	67,260	$	—		$	67,260

				Amounts Not Offset
				in the Statement of
				Assets and Liabilities
	Net Amounts of
	Liabilities Presented
	in the Statement of			Financial			Collateral		Net Amounts of
Counterparty	Assets and Liabilities			Instruments			Pledged		Derivative Liabilities
Citibank NA		$	8,719	$	(8,719	)	$	—		$	—
HSBC Bank USA NA			48,731		(48,731	)		—			—
JPMorgan Chase Bank NA			7,144		(7,144	)		—			—
State Street Bank and Trust Co.			2,666		(2,666	)		—			—
Total		$	67,260	$	(67,260	)	$	—		$	—

104  Annual Report

Real Assets and Pricing Opportunities Portfolio

						Net Amounts of
				Gross Amounts Offset		Assets Presented
	Gross Amounts of			in the Statement of		in the Statement of
Description	Recognized Assets			Assets and Liabilities		Assets and Liabilities
Forward Currency Contracts		$	24,418	$	—	$	24,418

				Amounts Not Offset
				in the Statement of
				Assets and Liabilities
	Net Amounts of
	Assets Presented
	in the Statement of			Financial			Collateral		Net Amounts of
Counterparty	Assets and Liabilities			Instruments			Received		Derivative Assets
Citibank NA		$	4,199	$	(2,535	)	$	—		$	1,664
HSBC Bank USA NA			12,812		(7,897	)		—			4,915
State Street Bank and Trust Co.			7,407		(4,924	)		—			2,483
Total		$	24,418	$	(15,356	)	$	—		$	9,062

						Net Amounts of
				Gross Amounts Offset		Liabilities Presented
	Gross Amounts of			in the Statement of		in the Statement of
Description	Recognized Liabilities			Assets and Liabilities		Assets and Liabilities
Forward Currency Contracts		$	15,356	$	—	$	15,356
Swap Agreements			282,655		—		282,655
Total		$	298,011	$	—	$	298,011

				Amounts Not Offset
				in the Statement of
				Assets and Liabilities
	Net Amounts of
	Liabilities Presented
	in the Statement of			Financial			Collateral			Net Amounts of
Counterparty	Assets and Liabilities			Instruments			Pledged (a)			Derivative Liabilities
Citibank NA		$	2,535	$	(2,535	)	$	—			$	—
Goldman Sachs International			282,655		—			(282,655	)			—
HSBC Bank USA NA			7,897		(7,897	)		—				—
State Street Bank and Trust Co.			4,924		(4,924	)		—				—
Total		$	298,011	$	(15,356	)	$	(282,655	)		$	—

(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  105

11. Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-08, Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization of Purchased Callable Debt Securities, which amends the amortization period for certain purchased callable debt securities. Management is currently evaluating the impact that the adoption of the amendment will have on the Fund’s financial statements and related disclosures. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which removes, modifies and adds disclosures to Topic 820. The amendments in this ASU apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Management has evaluated the impact of the amendments and has elected to adopt these amendments and incorporate the changes in the current financial statements.

12. Subsequent Events

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

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 Global Dynamic Multi-Asset Portfolio, Lazard Opportunistic Strategies 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 Global Dynamic Multi-Asset Portfolio and Lazard Opportunistic Strategies Portfolio (formerly Lazard Capital Allocator Opportunistic Strategies Portfolio) (collectively the “Portfolios”), two of the portfolios constituting The Lazard Funds, Inc. (the “Fund”) as of December 31, 2018, 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 five years in the period then ended for the Portfolios except for Lazard Global Dynamic Multi-Asset Portfolio which is indicated in the table below, and the related notes to the financial statements. 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, 2018, the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the periods indicated in the table below, 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 Global Dynamic Multi-Asset Portfolio and Lazard Opportunistic Strategies Portfolio, as of December 31, 2018, 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 five years in the period then ended (or for the period listed in the table below), and the consolidated financial position of Lazard Real Assets and Pricing Opportunities Portfolio, as of December 31, 2018, and the consolidated results of its operations

Annual Report  107

for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and the consolidated financial highlights for period listed in the table below, in conformity with accounting principles generally accepted in the United States of America.

Portfolio Name	Financial Highlights
Lazard Global Dynamic Multi-Asset Portfolio	For the years ended December 31, 2018, 2017 and for the period from May 27, 2016 (commencement of operations) through December 31, 2016
Lazard Real Assets and Pricing Opportunities Portfolio	For the years ended December 31, 2018, 2017 and for period from December 30, 2016 (commencement of operations) through December 31, 2016

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

108  Annual Report

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, 2018, 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 26, 2019

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

Annual Report  109

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

Name (Year of Birth) 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 (1953)	Director (August 2014)	Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present)
		Cornell Law School, Adjunct Professor (2013 – 2016, 2019)
		The Buchmann Faculty of Law, Tel Aviv University, Visiting Professor (2019)
		University of California, Berkeley School of Law, Adjunct Professor (Spring 2017)
Kenneth S. Davidson (1945)	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 (1962)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 – present)
		TIAA-CREF Funds (69 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 (1971)	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. (1944)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 – present)
		Resource America, Inc., a real estate asset management company, Director (2016 – 2018)

110  Annual Report

Name (Year of Birth) 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)
Robert M. Solmson (1947)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, Co-Managing Partner and Managing Director (2008 – present)
Interested Directors(4):
Ashish Bhutani (1960)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 – present)
		Lazard Ltd, Vice Chairman and Director (2010 – present)
Nathan A. Paul (1973)	Director (October 2017), Chief Executive Officer and President (February 2017; previously, Vice President and Secretary since April 2002)	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, 2019, 39 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  111

Name (Year of Birth) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) During the Past Five Years
Officers(3):
Mark R. Anderson (1970)	Chief Compliance Officer (September 2014), Vice President and Secretary (February 2017)	Managing Director (since February 2017, previously Director), Chief Compliance Officer (since September 2014) and General Counsel (since April 2017) of the Investment Manager
		Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014)
Christopher Snively (1984)	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 (1958)	Treasurer (May 2003)	Vice President of the Investment Manager
Shari L. Soloway (1981)	Assistant Secretary (November 2015)	Head of Legal, North America (since January 2019, previously Senior Vice President, Legal and Compliance (since September 2015)) of the Investment Manager
		Vice President and Associate General Counsel of GE Asset Management (July 2011 – September 2015)
Jessica A. Falzone (1989)	Assistant Secretary (January 2019)	Vice President, Legal and Compliance, of the Investment Manager (since March 2018)
		Associate at Schulte Roth & Zabel LLP (2014 – March 2018)
Cesar A. Trelles (1975)	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.

112  Annual Report

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

Tax Information

Year Ended December 31, 2018

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2018:

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

Portfolio	Percentage
Global Dynamic Multi-Asset		34.61	%
Opportunistic Strategies		—
Real Assets and Pricing Opportunities		50.97

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
Global Dynamic Multi-Asset		14.09	%
Opportunistic Strategies		4.75
Real Assets and Pricing Opportunities		12.39

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.

Annual Report  113

Schedule of Portfolio Holdings

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the SEC’s website at https://www.sec.gov.

114  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.
2000 Crown Colony Drive
Quincy, Massachusetts 02169
Telephone: 617-483-7000

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

Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardassetmanagement.com
Performance information as of the most recent month end is available online at www.lazardassetmanagement.com. LZDPS030

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 $1,560,778 in 2017 and $1,623,737 in 2018 (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 preapproval by the Audit Committee were $175,000 in 2017 and $267,330 in 2018.

(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 $418,721 in 2017 and $372,793 in 2018. 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. This includes the aggregate fees billed related to European Union tax reclaim filing services rendered by the Auditor of $209,208 in 2017 and $123,718 in 2018.

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 2017 and $0 in 2018.

(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 preapproval by the Audit Committee.

(e)        Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval of the Auditor's engagements for services to the Registrant and Service Affiliates. The Policy states that the Registrant's Audit Committee or the Chair of the Audit Committee (pursuant to delegated authority from the 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. The Audit Committee Chair must report any pre-approval decisions he or she makes at the next scheduled Audit Committee meeting. 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 $938,003 in 2017 and $1,234,762 in 2018.

(h)        Auditor Independence. The Audit Committee considered whether provision of non-audit services to Service Affiliates that were not required to be preapproved is compatible with maintaining the Auditor’s independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. INVESTMENTS

Not applicable.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board during the period covered by this report.

ITEM 11. CONTROLS AND PROCEDURES.

(a)        The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b)        There were no changes to the Registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12. 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, 2019

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, 2019

By	/s/ Christopher Snively
	Christopher Snively
	Chief Financial Officer
Date	March 8, 2019