NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION The Lazard Funds, Inc. (the "Fund") was incorporated in Maryland on May 17, 1991 and
is registered under the Investment Company Act of 1940 (the "Act"), as amended, as an open-end management
investment company. The Fund was originally comprised of five portfolios: Lazard International Equity Portfolio
(the "International Equity Portfolio"), Lazard International Fixed-Income Portfolio, formerly Lazard Global Fixed-
Income Portfolio, (the "International Fixed-Income Portfolio"), Lazard Bond Portfolio, formerly Lazard High
Quality Bond Portfolio, (the "Bond Portfolio"), Lazard Strategic Yield Portfolio, formerly Lazard High-Yield
Portfolio, (the "Strategic Yield Portfolio") and Lazard Small Cap Portfolio (the "Small Cap Portfolio").
Effective January 1, 1992, the Lazard Equity Fund and the Lazard Special Equity Fund, Inc. ("Old Funds") were
reorganized as separate portfolios ("New Funds") of the Fund, namely Lazard Equity Portfolio (the "Equity
Portfolio"), and Lazard Special Equity Portfolio (the "Special Equity Portfolio"), respectively. The per share data
included herein includes per share data for both the Old Funds and New Funds.
Effective November 1, 1993, Lazard International Small Cap Portfolio (the "International Small Cap Portfolio")
and Lazard Emerging Markets Portfolio (the "Emerging Markets Portfolio") were added to the Fund. The Lazard
Emerging Markets Portfolio was first offered for sale on July 15, 1994.
The Board of Directors of the Fund approved a change in certain non-fundamental investment policies effective
January 1, 1993 for the International Fixed-Income Portfolio, and effective May 1, 1993, for the Bond Portfolio,
and Strategic Yield Portfolio.
The Equity Portfolio and Special Equity Portfolio are operated as "diversified" as defined in the Act. The
remaining Portfolios are "non-diversified."
2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies:
(a) VALUATION OF INVESTMENTS-