Lazard Small Caps Euro SRI 10 Reasons Why Objective of Small Caps Euro SRI The investment objective is to achieve, by applying a Socially Responsible Investment (SRI) management approach, over the recommended investment horizon of 5 years, a return (net of charges) above the follow- ing benchmark: Emix Smaller Euro. The benchmark is expressed in EUR. Nets dividends or coupons are reinvested.

1. A deep and heterogeneous investment universe

The investment universe of the Lazard Small Caps Euro SRI SICAV consists of listed companies in the eurozone, whose capitalisation is mainly between €100 million and €2 billion on purchase. This is a deep and heterogeneous universe, made up of around 1,000 companies, representing 10% of the market capi- talisation and 30% of companies listed in the eurozone. This under-researched asset class is characterised by significant market inefficiencies and valuation anoma- lies, which we believe provide many investment opportunities.

2. Well-managed and successful companies

The richness and depth of this investment universe are used to identify profitable, growing companies operating in niche businesses with high barriers to entry. The small cap universe contains many companies managed and controlled by their founders or the found- er family. On the whole, these companies are overall managed more cautiously, with a very long-term strategic vision limiting risks.

3. The optimal value creation phase

We believe the small cap market segment is the optimal phase of value creation in the life of these com- panies. The vast majority of these companies are already profitable and cover their cost of capital, while benefiting from cash reinvestment opportunities at levels of profitability superior to the current level. This profitable growth phase can last many years for some companies.

2 Illustration 1 – The phase of optimal value creation

The securities shown above may not all be present in the portfolio. The opinion expressed above is current as of the date of this presentation and is liable to change. Past performance does not guarantee future performance. *ROCE (Return On Capital Employed) Source: Lazard Frères Gestion.

3 4. Building strong long-term performance

Small caps are at an early stage of their development and have not yet reached maturity in their home market: as a result, these same stocks generate higher overall growth than large companies. Over the long term, this dynamic growth is generally reflected in better stock market performance.

Illustration 2 – Performance and volatility history From 5 August 2003 to 31 december 2020

Source: Bloomberg, as of 31 December 2020. Indices are shown with dividends reinvested. 5 August 2003 is the date of the first NAV of the Lazard Small Caps Euro SRI Fund. Past performance is not indicative of future results.

5. Efficient diversification versus large caps

Small caps are, of course, an effective tool for differentiation from large caps, offering superior perfor- mance for lower volatility (see table above).Small caps also provide access to segments that are absent from large-cap indices. Finally, investing in small caps is an effective tool for reducing the risk of Large Caps: over the long term, Small Cap equities offer a decorrelation close to that of emerging equities compared to large caps in the eurozone.

4 Illustration 3 – Correlation matrix based on weekly returns From 12 january 2001 to 27 december 2019

Source: Factset, as of 27 décember 2019. Correlations between different asset classes in the past are not indicative of future results

6. Recognised expertise

The Lazard Small Caps Euro SRI fund is managed by a dedicated team based in Paris, with an in-depth knowledge of the investment universe. Annabelle Vinatier, James Ogilvy and Jean-François Cardinet have, between them, more than twenty years of experience in this market segment (Micro, Small and Mid Caps) and receive regular awards for the quality of their management. The management of the Lazard Small Caps Euro SRI fund is based on a collegial decision-making pro- cess. The three Small Cap analysts/managers thus research and monitor all stocks in the portfolio and are also responsible for the selection of companies and management decisions. They hold nearly 500 company meetings per year. This structure ensures high transparency in the management process and fluidity in deci- sion-making. At the end of December 2020, assets under management in the Micro, Small and Mid Caps range represent- ed more than 1 billion euros.

5 7. A fundamental approach appropriate for the asset class

The main added value of our management comes stock selection. We primarily perform stock-picking by focusing on companies’ ability to add value across the business cycle. Our management is purely fundamen- tal and we rely on internal proprietary models for financial analysis and company valuation. Our bottom-up approach is to select companies with high profitability, present in sectors with high barriers to entry and whose valuation does not fully integrate their growth prospects. By favouring long-term capital preservation and valuation, we only invest in a fraction of the universe and this approach leads us to avoid the most risky companies and bandwagon effects.

8. Integration of ESG criteria

Since December 2020 and the acquisition of the SRI1 label, the fund’s investment process has incorporat- ed an SRI approach that favours the best-in-class companies from a non-financial point of view, regard- less of their sector of activity (Best in Universe). ESG analysis is based on a proprietary model, in the form of an internal ESG grid. Based on the data provided by our ESG partners, annual reports and social responsibility reports for each company, togeth- er with direct discussions with them, each security receives an ESG score. Analysts/managers then ensure that the fund’s ESG rating based on the individual ratings provided by the partner extra-financial rating agency is higher than the average rating of the 80% of the best-rated companies in its SRI investment universe (a requirement linked to obtaining the SRI Label developed by the French Ministry of Finance and Public Accounts). The management team of the Lazard Small Caps Euro SRI fund is therefore committed, more than ever, to an ethical approach that has become central to Lazard Frères Gestion’s investment philosophy.

1 References to a ranking, price or rating do not guarantee future performance. The SRI label is awarded by the French Ministry of Finance and Public Accounts. For more details on this process, please refer to the website: www.lelabelisr.fr.

6 Illustration 4 – Investment Process

7 9. A selective portfolio of family and entrepreneurial SMEs

The construction of the portfolio is primarily a reflection of our fundamental selection of companies and our specific choices of values. The resulting portfolio is concentrated (from 35 to 50 stocks) and mainly made up of entrepreneurial and family-owned SMEs in niche businesses, with a healthy balance sheet (re- flecting their high profitability) and often listed for more than 15 years. We hold these stocks on average for nearly ten years to support them in their optimal wealth creation phase.

10. An annualised performance of 8.2% since the creation of the SICAV

The performance of the Lazard Small Caps Euro SRI SICAV is the product of the value creation dynamics specific to the small stocks selected and of our valuation discipline, which is essential to transforming the economic performance of our into stock market performance. This combination has enabled the Lazard Small Caps Euro SRI fund to generate an annualised performance of +8.2% per year since its inception (as of 31 Decembre 2020).

Illustration 5 – Performances over 5 years From 31 december 2015 to 31 december 2020

Source: Lazard Frères Gestion as of 31 december 2020. Performances below one year are given for illustrative purposes. Past performance is not indicative of future performance and is assessed at the end of the recommended investment period. Performance is net of management fees, in euro.

8 Reminder of risks for investors

Risk of capital loss: There is no guarantee of the UCI’s performance or protection of capital. As such, the investor may not get back the full amount of the initial investment during redemption.

Risk related to discretionary management: Discretionary management is based on anticipation of market trends. The UCI’s performance is dependent both on the selection of securities and UCI picked by the manager and the manager’s asset allocation. There is therefore a risk that the manager will not select the best performing securities and that the asset allocation is not optimal.

Equity risk: Share price fluctuations may have a negative impact on the UCI’s . The UCI’s net asset value may decrease during periods in which the equity markets are falling.

Market capitalisation risk: The volume of small- and mid-cap stocks traded on the stock market is lower than that of large caps, which means they can be more significantly impacted by market movements than large caps. The UCI’s net asset value may decline quickly and sharply.

Liquidity risk: The risk that a financial market cannot absorb transaction volumes due to trading volumes being too low or pressure on the markets. Such a situation may impact the pricing or timing when the UCI liquidates, initiates or modifies positions and thus cause a decline in the UCI’s net asset value.

Counterparty risk: this type with one or more counterparties potentially exposes the UCI to a risk of insolvency of one or more of these counterparties, which could lead to default on payment and cause a decrease in the UCI’s net asset value.

Interest rate risk: The risk of a decline in debt instruments as a result of changes in interest rates. This risk is measured by the level of sensitivity. For instance, bond prices tend to move in the opposite direction to interest rates. The net asset value may decline during periods when there is an increase (positive sensitivity) or decrease (negative sensitivity) in interest rates.

Derivative financial instrument risk: The risk arising from the UCI’s use of forward financial instruments (derivatives), which may lead to a bigger decrease in the net asset value than on the markets or in the underlying assets in which the UCI has invested.

Sustainability risk: The risk that an environmental, social or governance event or situation will occur that could have a material adverse effect, actual or potential, on the value of an investment.

Explanation of the indicator and its main limitations: The exposure to the equity market explains the SICAV’s classifica- tion in this category. The historical data used may not provide a reliable indication of the CIS’ future risk profile.We can give no assurance that the category displayed will not change, and the classification may change over time. The lowest category does not imply a risk-free investment. There is no capital guarantee.

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Lower risk, potentially lower return Higher risk, potentially higher return

9 This is a financial promotion and is not intended to constitute investment advice.

Lazard Small Caps Euro SRI is a French open-ended investment company with variable capital (Société d’investissement à capital vari- able) authorised and regulated as UCITS by the Autorité des marchés financiers and managed by Lazard Frères Gestion SAS.

Copies of the full Prospectus, the relevant Key Investor Information Document (KIID) and the most recent Report and Accounts are avail- able in English, and other languages where appropriate, on request from the address below or at www.lazardfreresgestion.fr. Investors and potential investors should read and note the risk warnings in the Prospectus and relevant KIID.

Past performance is not a reliable indicator of future results. The value of investments and the income from them can fall as well as rise and you may not get back the amount you invested. Any yield quoted is gross and is not guaranteed. It is subject to fees, taxation (partic- ularly where presented gross of fees and taxes, which is specifically relevant for retail clients with Belgian residence) and charges within the Fund and the investor will receive less than the gross yield. There can be no assurance that the Fund’s objectives or performance target will be achieved. Any views expressed herein are subject to change.

The returns from your investment may be affected by changes in the exchange rate between the Fund’s base currency, the currency of the Fund’s investments, your share class and your home currency.

The information provided herein should not be considered a recommendation or solicitation to purchase, retain or sell any particular security. It should also not be assumed that any investment in these securities was or will be profitable.

The tax treatment of each client will vary and you should seek professional tax advice.

For any complaints, please contact the representative of the LFM, LAM, or LFG office for your country. You will find the contact details below .The contents of this document are confidential and should not be disclosed other than to the person or persons for whom it is intended.

FOR FINANCIAL PROFESSIONAL USE ONLY.

Additional Risk Warning

Smaller companies: Securities of smaller companies may be less liquid, and exhibit more volatile returns, than the securities of larger companies.

Concentrated: In view of the concentrated nature of the portfolio, the level of risk is expected to be higher than for broader based portfoli- os and the value may be more volatile.

MSCI

MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any other securities or financial products. This report is not approved, reviewed or produced by MSCI.

Please note that not all share classes are registered for distribution in every jurisdiction. Investment into the portfolio will not be accepted before the appropriate registration is completed in the relevant jurisdiction. Notes United1 Lazard’s Kingdom, proprietary Finland, materiality Ireland, mapping Denmark, process is basedNorway on the and foundation Sweden: of SASB’sThe information Materiality Map™. is approved, on behalf of Lazard Fund Managers (Ire- land) Limited, by Lazard Asset Management Limited, 50 Stratton Street, London W1J 8LL. Incorporated in England and Wales, registered Importantnumber 525667. Information Lazard Asset Management Limited is authorised and regulated by the Financial Conduct Authority. PublishedGermany on and 9 December Austria: 2020 Lazard Asset Management (Deutschland) GmbH, Neue Mainzer Strasse 75, 60311 Frankfurt am Main is autho- Informationrized and andregulated opinions inpresented Germany have by been the obtained BaFin. or The derived Paying from sourcesAgent believedin Germany by Lazard is Landesbank to be reliable. Lazard Baden-Württemberg, makes no representation Am as Hauptbahnhof to their accuracy 2,or completeness.70173 Stuttgart, All opinions the Paying expressed Agent herein in areAustria as of 30 is September UniCredit 2020 Bank and Austria are subject AG, to Rothschildplatzchange. 1, 1020 Vienna. 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 lessBelgium liquid, moreand :volatile, and less Thissubject information to governmental is provided supervision by than the in Belgianone’s home Branch market. of The Lazard values ofFund these Managers securities may Ireland be affected Limited, by changes at Blue in currencyTower rates,Louise, application Avenue of aLouise country’s 326, specific Brussels, tax laws, 1050 changes . in government The Paying administration, Agent and and economic the Representative and monetary policy. in Belgium Small- and for mid-capitalization the registration stocks and may be subjectthe receipt to higher of requestsdegrees of risk,for issuancetheir earnings or mayrepurchase be less predictable, of units theiror for prices switching more volatile, sub-funds and their is liquidity RBC lessInvestor than that Services of large-capitalization Bank S.A :or 14, more Porte established de companies’, L-4360 securities. Esch-sur-Alzette– Emerging markets securities Grand Duché carry special de Luxembourg. risks, such as less developed or less efficient trading markets, a lack of company information, and differing 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. France: Any person requiring information in relation to the Fund mentioned in this document is required to consult the KIID which is Theavailable MSCI All on Country request World from Index Lazard (ACWI) Frères is a free-float-adjusted Gestion SAS. market The capitalization information weighted contained index inthat this is designed document to measu hasre not the been equity independentlymarket performance verified of or developed and Emerging markets. The index is unmanaged and has no fees. One cannot invest directly in an index. Certain information included herein is derived by Lazard inaudited part from by an the MSCI statutory index or indicesauditors (the of “Index the UCITS(s)Data”). However, concerned 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 warrantiesItaly: This or information representations is andprovided shall have by no the liability Italian whatsoever branch with of Lazard respect toAsset any Index Management Data or data derived(Deutschland) therefrom. GmbH. The MSCI Lazard Index Data Asset may Management not be further redistributed(Deutschland) or used GmbH as a basis Milano for other Office, indices Viaor any Dell’Orso securities 2or - financial 20121 products. Milan is authorized and regulated in Germany by the BaFin. Not all share classes of the relevant sub-fund are registered for marketing in and target institutional investors only. Subscriptions may only be based on the current prospectus.The Paying Agent for the Irish funds are BNP Paribas Securities Services, Piazza Lina Bo Bardi, 3, 20124 Milano, and Allfunds Bank SA, Milan Branch, Via Santa Margherita 7, 20121, Milano. The Paying Agent for the French funds are Société Générale Securities Services, Via Benigno Crespi, 19, 20159 Milano, and BNP Paribas Securities Services, Piazza Lina Bo Bardi, 3, 20124 Milano.

Netherlands: This information is provided by the Dutch Branch of Lazard Fund Managers (Ireland) Limited, which is registered in the Dutch register held with the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten).

Spain and Portugal: This information is provided by the Spanish Branch of Lazard Fund Managers Ireland Limited, at Paseo de la Castellana 140, Piso 10, Letra E, 28046 Madrid and registered with the National Securities Market Commission (Comisión Nacional del Mercado de Valores or CNMV) under registration number 18.

Andorra: For Andorran licensed financial entities only. This information is provided by the Spanish Branch of Lazard Fund Managers Ireland Limited, at Paseo de la Castellana 140, Piso 100, Letra E, 28046 Madrid and registered with the National Securities Market Commission (Comisión Nacional del Mercado de Valores or CNMV) under registration number 18. This information is approved by Lazard Asset Management Limited (LAML). LAML and the Fund are not regulated or authorised by or registered in the official registers of the Andorran regulator (AFA) and thus the Shares of the Fund may not be offered or sold in Andorra through active marketing activities. Any orders transmitted by an Andorran licensed financial entity for the acquisition of Shares of the Fund and/or any marketing materials related to the Fund are provided in response to an unsolicited approach from the investor.

Switzerland: The domicile of the Fund is Ireland and/or France, the representative in is ACOLIN Fund Services AG, Leutschenbachstrasse 50, CH-8050 Zurich, whilst the paying agent is Banque Cantonale de Genève, 17, quai de l’Ile, CH-1204 Genva. Information is available from our website, the Swiss Representative or from www.fundinfo.com. The Prospectus, the Articles of Asso- ciation (SICAV) or the Fund Regulations (FCP), the Key Investor Information Document (KIID) as well as the semi-annual and annual reports may be obtained free of charge at the registered office of the Swiss Representative. The performance data do not take account of the commissions and costs incurred on the issue and redemption of units. The current document is intended for information purposes only and shall not to be used as an offer to buy and/or sell shares. HB33702