Lazard Global Listed Infrastructure Portfolio Presents a Unique Diversification Opportunity by Investing in High-Quality Preferred Infrastructure Companies

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Institutional Open Lazard Global Listed Ticker GLIFX GLFOX Benchmark 1 Custom Index1 Infrastructure Portfolio Benchmark 2 MSCI World Index 3Q 2016

The Lazard Global Listed Infrastructure Portfolio presents a unique diversification opportunity by investing in high-quality preferred infrastructure companies. The Portfolio seeks long-term, low-volatility returns that exceed inflation and may be a powerful complement to real assets, private equity infrastructure, and global equity allocations.

Access to Preferred Inflation Protection Consistent Return Infrastructure Preferred infrastructure Profile Selects companies with benefits from regulated Valuation-driven process monopoly-like characteris- pass-through mechanisms selects companies with tics that provide essential and potentially offers more predictable earnings services stronger protection than and attractive dividend real estate and commodity payout ratios 1 2 investments 3 Historically Favorable Risk-Adjusted Performance Return (%) 16 Lazard Global Listed Infrastructure Infrastructure Index Real Estate 8 Global Equities Global Bonds 0

-8 Commodities

-16 0 5 10 15 20 25 Standard Deviation (%) As of September 30, 2016, based on monthly data from the inception of the Portfolio, December 31, 2009. The performance quoted represents past performance. Past performance does not guarantee future results. The current performance may be lower or higher than the performance data quoted. An investor may obtain performance data current to the most recent month-end online at www.LazardNet.com. The investment return and principal value of the Portfolio will fluctuate; an investor’s shares, when redeemed, may be worth more or less than their original cost. Indices are unmanaged and have no fees. It is impossible to invest directly in an index. Global Bonds = Bloomberg Barclays Global Aggregate (USD Hedged); Infrastructure Index = Custom Index; Global Equities = MSCI World Index (Hedged USD) – Price Return; Real Estate = FTSE EPRA/NAREIT Global TR (unhedged); Commodities = S&P GSCI Total Return Source: Barclays, FTSE, Lazard, MSCI, UBS L Benchmark 1 L L 1 M Custom IndexM M 2 Morningstar Category Morningstar S Benchmark 2 S S 2 Infrastructure Style V B G MSCI WorldV B G Index V B G

Performance Review (%; net of fees. As of September 30, 2016) L L L 18 M M M 2 S S S Morningstar Rating

V B G V B G V B G 12 êêêêê (Overall Rank out of 75 Funds) 3-Year Rank: 5 Stars, out of 75 Funds 5-Year Rank: 5 Stars, out of 51 Funds 6

L L L Minimum Initial Investment Institutional: $100,000 0 M M M Open: $2,500 SAnnualized S S R6: $1,000,000 V B G SinceV B InceptionG V B G Net Assets 3 Months 1 Year 3 Years 5 Years 12/31/2009 Institutional: $2,629.3 million Institutional 2.98 9.79 13.21 16.09 12.03 Open: $485.9 million R6: $0.0 Open 2.99 9.49 12.91 15.76 11.67 Total: $3,115.2 million Benchmark 1 0.70 13.14 12.04 13.68 9.84 Total Expense Ratio Institutional: 0.96% Benchmark 2 4.87 11.36 5.85 11.63 8.19 Open: 1.23% R6: 0.96% The performance quoted represents past performance. Past performance does not guarantee future results. The current performance may be lower or higher than the performance data quoted. An investor may obtain performance data current to the most recent month-end online at www.LazardNet.com. The investment return and principal value of the Portfolio will fluctuate; an investor’s shares, when redeemed, may be worth more or less than their original cost.

Characteristics Geographic Allocationa Lazard Benchmark 1 Lazard (%) Number of Holdings 25 153 United States 30.1 Weighted Average Market Cap ($B) 20.7 26.0 Italy 20.3 France 20.0 Price-to-Book 2.2 2.2 Australia 12.4 Beta Institutional 0.78 N/A Spain 4.8 (3-year) Open 0.78 United Kingdom 3.5 Standard Deviation Institutional 7.87 8.34 Germany 3.0 (%; 3-year) Open 7.90 Portugal 0.7 30-day SEC Yield Institutional 2.47/2.47 Cash & Equivalents 5.2 N/A Subsidized/Unsubsidized (%)³ Open 2.21/2.21 Institutional 0.86 Sector Allocationa Distribution Yield (%) N/A Open 0.61

Toll Roads 27.3 Dividend Distribution Quarterly N/A Railroads 22.1 Turnover Rate (%; 1-year) 34.3 N/A Diversified Utilities 13.8 Source: FTSE, Lazard, UBS Communications Infrastructure 9.7 Beta is a relative measure of the sensitivity of a fund’s return to changes in the Electricity Utilities 8.1 benchmark’s return. The beta of the fund versus its benchmark is the amount (and Airports 5.2 direction) the fund has historically moved when the benchmark moved by one unit. Gas Utilities 4.8 Standard deviation measures the dispersion or “spread” of individual observations around their mean. Standard deviation of returns measures a fund’s historical vola- Water Utilities 3.7 tility, where a higher number is evidence of greater volatility (i.e., higher risk). Cash & Equivalents 5.2 Distribution Yield is calculated by dividing the last distribution paid per share (annualized) by NAV. The Fund’s monthly distribution yield may consist of ordi- nary income, net realized capital gains, and returns of capital.

a Allocations and security selection are subject to change. The information provided in this list should not be considered a recommendation or solicitation to purchase or sell any particular security. It should not be assumed that any investment in these securities was, or will prove to be, profitable, or that the investment decisions we make in the future will be profitable or equal to the investment performance of securities referenced herein. There is no assurance that any securities referenced herein are currently held in the Portfolio or that securities sold have not been repurchased. The securities mentioned may not represent the entire Portfolio.

2 Lazard Global Listed Infrastructure Portfolio

Growth of $100 Top Ten Holdingsa Lazard (%) Sector Country Laard Institutional CSX 8.3 Railroads United States encar Vinci 8.2 Toll Roads France Atlantia 8.2 Toll Roads Italy Norfolk Southern 5.0 Railroads United States Union Pacific 4.9 Railroads United States Eutelsat 4.9 Communications France Communications Infrastructure Terna 4.8 Electricity Utilities Italy Snam 4.8 Gas Utilities Italy Abertis Infraestructuras 4.8 Toll Roads Spain SES 4.8 Communications France For the period December 2009–September 2016. Infrastructure Source: FTSE, Lazard, UBS For a complete list of holdings, please visit www.LazardNet.com.

Stock Highlights by Sectora Railroads Airports The three North American railroads (CSX, Norfolk Southern, and Aeroports de Paris’ (2.2% of the Portfolio) stock price has performed Union Pacific) (8.3%, 5.0%, and 4.9% of the Portfolio) were three poorly on the back of traffic that is up only 1% this year and flat of the strongest-performing companies in the Portfolio. Over the retail, due to a fall in Chinese travelers who typically spend more past quarter, they have all reported weak traffic but strong core than other nationalities. Traffic at Charles de Gaulle airport is down pricing increases and productivity gains. All three railroads increased due to terrorist events, as traffic typically takes 4–6 months to core prices above inflation. Traffic should remain subdued for the recover. Yet, more positively, traffic at Orly airport is up on good remainder of the year, due to high utility coal and retail inventories, low-cost carrier performance. In the absence of further terrorist but pricing power and productivity savings will partly offset this. We activity, we believe Aeroports de Paris should resume 2%–3% believe the railroads remain undervalued. passenger growth by the end of the year, and current retail refur- bishment should also result in improved retail performance in the Toll Roads coming twelve months. Another positive contributor for the period was French company, Vinci (8.2% of the Portfolio). The continued strength of the core Water Utilities business, with further improvement in traffic at the motorway and Pennon Group (3.5% of the Portfolio), a UK-based company, also at the airports, continues to be aided by the ability of Vinci to mark- hurt performance during the quarter. The regulator OFWAT intro- edly lower financial costs. In addition, the French government, in duced a new approach towards indexation of financial cost. We think the run-up to the 2017 Presidential elections has put in place the that this is most likely to impact highly geared private equity struc- key pillars for a new stimulus package of works financed throughout tures that have used the windfall of the decline in bond yields to try the French motorway networks. Unlike the recently approved first to recoup the exorbitant premium they paid for UK water businesses. plan, the main compensation mechanism would be incremental tariff We note the comment from the UK water regulator that states “we increases over the existing life of the concessions rather than con- have been clear that the risk and consequences of adopting these cession extensions. Such changes do not require EU approval, and as structures remains with the companies and their investors.” such can be expedited. Vinci would be a key beneficiary of the plan.

Notes 1 The Custom Infrastructure Index (USD Hedge) is the UBS Global 50/50 Infrastructure & Utilities Index (Hedged USD) from inception to March 31, 2015 and the FTSE Developed Core Infrastructure 50/50 100% Hedged to USD Net Tax Index afterwards. 2 As of September 30, 2016. © 2016 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. The Morningstar Rating is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. 3 This yield reflects the interest earned by the average investor in the Fund after deducting the Fund’s expenses during the most recent 30-day period. A negative 30-Day SEC Yield results when accrued expenses of the past 30 days exceed the income collected during those 30 days. Unsubsidized SEC Yield represents what a fund’s 30-Day SEC Yield would have been, had no fee waiver or expense reimbursement been in place over the period.

3 Lazard Global Listed Infrastructure Portfolio

Global Listed Infrastructure Portfolio Management Team Matthew Landy John Mulquiney, CFA Warryn Robertson Portfolio Manager/Analyst Portfolio Manager/Analyst Portfolio Manager/ 21 years of investment 19 years of investment Analyst experience experience 24 years of investment experience

Understanding Investment Risk Equity securities will fluctuate in price; the value of your investment will thus fluctuate, and this may result in a loss. Securities in certain non-domestic countries may be less liquid, more volatile, and less subject to governmental supervision than in one’s home market. The values of these securities may be affected by changes in currency rates, application of a country’s specific tax laws, changes in government administration, and economic and monetary policy. Emerging markets securities carry special risks, such as less developed or less efficient trading markets, a lack of company information, and differ- ing auditing and legal standards. The securities markets of emerging markets countries can be extremely volatile; performance can also be influenced by political, social, and economic factors affecting companies in emerging markets countries. 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 additional costs, competi- tion, regulatory implications, and certain other factors. The Portfolio invests in stocks believed by Lazard to be undervalued, but that may not realize their perceived value for extended periods of time or may never realize their perceived value. The stocks in which the Portfolio invests may respond differently to market and other developments than other types of stocks. The Portfolio seeks to substantially hedge foreign currency exposure back to the US dollar. The Portfolio’s total foreign currency exposure may not be fully hedged at all times. Irrespective of any foreign currency exposure hedging, the Portfolio may experience a decline in the value of its portfolio securities, in US dollar terms, due solely to fluctuations in currency exchange rates. Derivative transactions may reduce returns or increase volatility and a small investment in certain derivatives could have a potentially large impact on the Portfolio’s performance. Because the Portfolio invests in a relatively smaller number of issuers than other investment portfolios, its net asset value could be more susceptible to adverse effects of any single corporate, economic, political, regulatory, or other occurrence.

Important Information Originally published on October 14, 2016. Revised and republished on December 8, 2016. Information and opinions presented have been obtained or derived from sources believed by Lazard to be reliable. Lazard makes no representation as to their accuracy or com- pleteness. All opinions expressed herein are as of September 30, 2016 and are subject to change. FTSE International Limited (“FTSE”) © FTSE 2016. “FTSE®” is a trademark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. © UBS 2016. All rights reserved. The name UBS Infrastructure & Utilities Index and the names of the related UBS AG sub-indices (together the “UBS Infrastructure & Utilities Indices”) are proprietary to UBS AG (“UBS”). UBS and S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) (“S&P”) (the UBS Indices calculation agent and the provider of the S&P data) are together the “Index Parties”. The Index Parties make no express or implied warranties or representations and shall have no liability whatsoever with respect to any Index Parties’ data contained herein. S&P data is provided free of charge courtesy of S&P. 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 UBS Global 50/50 Infrastructure & Utilities Index tracks a 50% exposure to the global developed markets utilities sector and a 50% exposure to the global developed markets infrastructure sector. The MSCI World Index is a free-float-adjusted market capitalization index that is designed to measure global developed markets equity performance. The MSCI World Index consists of 23 developed markets country indices. The Bloomberg Barclays Capital Global Aggregate Bond Index (Hedged USD) provides a broad-based measure of global investment-grade fixed-income debt markets, including government-related debt, corporate debt, securitized debt, and global Treasury, and it is hedged back to the US dollar. The FTSE EPRA/NAREIT Global Index is a free-float-adjusted market capitalization index that is designed to measure the performance of REITs in both developed and emerging markets. There are currently 47 countries eligible for inclusion in the index with 25 classified as developed and 22 as emerging. The S&P GSCI Index consists of futures on 24 physical commodities across five sectors: energy, agriculture, livestock, industrial metals, and precious metals. In addition to liquidity and seasoning requirements, constituent futures must be denominated in US dollars and are weighted by amount of world production of the underlying commodity. Indices are unmanaged and have no fees. One cannot invest directly in an index. Certain information included herein is derived by Lazard in part from an MSCI index or indices (the “Index Data”). However, MSCI has not reviewed this product or report, and does not endorse or express any opinion regarding this product or report or any analysis or other information contained herein or the author or source of any such information or analysis. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any Index Data or data derived therefrom. Not a deposit. May lose value. Not guaranteed by any bank. Not FDIC insured. Not insured by any government agency. Please consider a fund’s investment objectives, risks, charges, and expenses carefully before investing. For more complete information about The Lazard Funds, Inc. and current performance, you may obtain a prospectus or summary prospectus by calling 800-823-6300 or going to www.LazardNet.com. Read the prospectus or summary prospectus carefully before you invest. The prospectus and summary prospectus contain investment objectives, risks, charges, expenses, and other information about the Portfolio and The Lazard Funds that may not be detailed in this document. The Lazard Funds are distributed by Lazard Asset Management Securities LLC.

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