FILED PURSUANT TO RULE 497(e)
REGISTRATION FILE NO. 33-40682
September 1, 1999
THE LAZARD FUNDS, INC.
SUPPLEMENT TO PROSPECTUS DATED MAY 1, 1999
AS REVISED, JUNE 1, 1999
* * *
LAZARD HIGH YIELD PORTFOLIO
Effective September 1, 1999, the following information supersedes any
contrary information contained in the section of the Fund's prospectus entitled
"Risk/Return Summary and Portfolio Expenses -- Lazard High Yield Portfolio."
FEES AND EXPENSES
--------------------------------------------
As an investor, you pay certain
fees and expenses in connection Annual Portfolio INSTITUTIONAL OPEN
with buying and holding Operating Expenses SHARES SHARES
Portfolio shares. The following (FEES PAID FROM
table illustrates those fees and PORTFOLIO ASSETS)
expenses. Keep in mind that the --------------------------------------------
Portfolio has no sales charge Management fee .75% .75%
(load). Annual Portfolio --------------------------------------------
Operating Expenses are paid out Distribution and
of Portfolio assets, and are Service (12b-1) fees None .25%
reflected in the share price. --------------------------------------------
Other expenses .80% 8.77%
--------------------------------------------
Total Annual Portfolio
Operating Expenses 1.55% 9.77%
--------------------------------------------
Fee Waiver and
Expense
Reimbursement* .80% 8.72%
--------------------------------------------
Net Expenses* .75% 1.05%
--------------------------------------------
- ---------------
* Reflects a contractual obligation by the Investment Manager to reimburse
the Portfolio through December 31, 1999 to the extent Total Annual
Portfolio Operating Expenses exceed .75% and 1.05% of the average daily
net assets of the Portfolio's Institutional Shares and Open Shares,
respectively.
<PAGE>
EXPENSE EXAMPLE
Use the table at the right to
compare the Portfolio's fees and
expenses with those of other funds.
It illustrates the amount of fees and
expenses you would pay, assuming
the following:
<TABLE>
o $10,000 initial investment
o 15% annual return each year LAZARD HIGH YIELD 1 3 5 10
o redemption at the end of each PORTFOLIO Year+ Years+ Years+ Years+
period
<S> <C> <C> <C> <C>
o no changes in operating INSTITUTIONAL SHARES $77 $411 $769 $1,777
expenses, except for the first ----------------------------------------------------------------------
year periods reflected in the OPEN SHARES $107 $2,043 $3,798 $7,504
table ----------------------------------------------------------------------
+ Year 1 fees and expenses are based on a contractual agreement.
</TABLE>
Because this example is
hypothetical and for comparison
only, your actual costs may be
higher or lower.
* * *
ALL PORTFOLIOS
The following information supplements the information contained in the
section of the Fund's prospectus entitled "Shareholder Information--Investor
Services--Exchange Privilege."
The Fund's exchange privilege is not designed to provide investors
with a means of speculating on short-term market movements. A pattern of
frequent exchanges can be disruptive to efficient portfolio management and,
consequently, can be detrimental to the Portfolios' performance and
shareholders. Accordingly, if the Fund's management determines that an investor
is following a market-timing strategy or is otherwise engaging in excessive
trading, the Fund, with or without prior notice, may temporarily or permanently
terminate the availability of the exchange privilege, or reject in whole or part
any exchange request, with respect to such investor's account. Generally, an
investor who makes more than four exchanges per Portfolio during any 12 month
period, or who makes exchanges that appear to coincide with a market- timing
strategy, may be deemed to be engaged in excessive trading. If an exchange
request is refused, the Fund will take no other action with respect to the
shares until it receives further instructions from the investor. The Fund's
policy on excessive trading applies to investors who invest in a Portfolio
directly or through financial intermediaries.
