NOTES TO FINANCIAL STATEMENTS
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 composed 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. On June 28, 1996,
the Small Cap Portfolio acquired the net assets of the Special Equity Portfolio (see Note 8). The per share data
for the Equity Portfolio includes per share data for the Old Fund and New Fund.
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.
Effective December 30, 1995, Lazard Global Equity Portfolio, Lazard Bantam Value Portfolio and Lazard
Emerging World Funds Portfolio were added to the Fund. The Lazard Global Equity Portfolio and Lazard
Bantam Value Portfolio commenced investment operations on January 4, 1996, and March 5, 1996,
The Equity Portfolio is operated as "diversified" as defined in the Act. The remaining Portfolios are "non-
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of sig